Like the first-year agreement with AMAF, RLL entered into an agreement with RKL in a principal-to-principal model, wherein RKL holds an excise license to manufacture the IMFL. Being the licensee, all the rights of purchasing, manufacturing, and selling of IMFL were held with RKL only. However, all the cost implications were on the part of RLL. Sales and purchases were retained by the AMAF RKL and profits were supposed to be transferred to RLL on year end. However, the RKL should be getting their Job work charges in the form of Bottling Charges in whole processing. The model started during the F.Y. 2017-18 and has continued for all these years. Hence, all the sales and purchases are in the books of RLL only due to being the brand owner of franchised brands.
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