Patel Engineering Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2017
Auditor and Management Disclosures and Notes for the annual results dated 31 Mar 2017
Notes:
1. The above audited financial results were reviewed by the Audit Committee and approved and taken on record by the Board at their meeting held on July 24, 2017.
2. Pursuant to the approval of the Hon'ble National Company Law Tribunal in its order dated 6th of July, 2017, the company has amalgamated one of its subsidiary with effect from the appointed date, i.e. 01.04.2016 in terms of the Scheme. Consequently the Company has merged the financials of the said subsidiary with its financials as per IND AS 103.
3. Company’s investment and loans and advances in one of its subsidiary, where notice dated 04th June, 2015 was received from Government of Mauritius for the termination of Lease Agreement entered on 11th December, 2009 with a step down subsidiary of the said subsidiary. In this case the process of arbitration has been initiated with the Government of Mauritius.
4. Exceptional Item includes :
a) writing off the investment of Rs. 39.85 crores in a subsidiary which has been ceased to be so after invocation of Strategic Debt Restructuring (SDR) in the said subsidiary; along with the outstanding loans after adjustment of dues against the same.
b) Rs. 68.12 crores provision of impairment due to dimunition in value of advance to an overseas subsidiary.
5. Results for the quarter and year ended 31st March, 2017 are in accordance with the Indian Accounting Standards (Ind AS) notified by the Ministry of Corporate Affairs which are applicable to the Company for the accounting period beginning on or after 1st April, 2016. Consequently, results for the corresponding quarter and year ended 31st March, 2016 have been restated as per the requirements of the said notification to comply with Ind AS to make them comparable.
6. Reconciliation of equity and net profit between previous Indian GAAP and Ind AS:
a. Equity reconciliations (Rs. in Crores)
Particulars Year ended 31st March, 2016
Equity as per Indian GAAP 1,751.15
Add / Less Adjustments :
Fair value of Corporate guarantee and its amortisation 1.07
Loan processing fees recognised using effective interest method 12.34
Loan to Subsidiary at Fair Value 0.24
Deferred tax impact on Ind AS Adjustments (5.73)
Actuarial gain/loss on gratuity reclassified to other
comprehensive income (Net of Current tax Impact) 0.89
Fair value of Deferred Revenue and Cost (net) (0.40)
Unwinding of interest component of Convertible Debt Instrument (2.45)
Liability Component of Convertible Financial Instruments (9.66)
Decrease in fair value of investment in unquoted equity instrument (6.99)
Equity as per Ind AS 1,740.46
b. Net profit reconciliations (Rs. in Crores)
Particulars Year ended 31st Quarter ended 31st
March, 2016 March, 2016
Profit after tax as per Indian GAAP (29.16) (77.79)
Add / Less Adjustments :
Fair value of Corporate guarantee and
its amortisation 1.07 0.55
Loan processing fees recognised using
effective interest method (2.53) (0.02)
Loan to Subsidiary at Fair Value 0.24 0.06
Deferred tax impact on Ind AS Adjustments 0.91 (0.11)
Actuarial gain/loss on gratuity reclassified to
other comprehensive income (Net of
Current tax Impact) 0.89 0.22
Fair value of Deferred Revenue and Cost (net) (0.04) 0.07
Unwinding of interest component of Convertible
Debt Instrument (1.29) (0.33)
Net profit before OCI as per Ind AS (29.91) (77.35)
7. The company is engaged in the Engineering and construction industry which is seasonal in character. The company's margins in the quarterly results vary based on the accrual of cost, recognition of income in different quarters etc. due to the nature of its receipt of claims/awards. In view of this, financial results for the quarter are not comparable with quarterly/annual results.
8. Figures of last quarter are the balancing figures between audited figures in respect of full financial year and the published Year-to-Date figures upto the third quarter of the current financial year.
9. The previous year figures have been regrouped / rearranged/recasted wherever necessary for the purpose of comparison.
10. Additional disclosure as per regulation 54(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 :
a. Credit rating of the NCDs is currently suspended.
b. The Company continue to maintain 100% asset cover based on the valuation report for the secured non convertible debentures issued by it.
31-Mar-17 31-Mar-16
c. Debt Equity Ratio 2.19 2.83
d. Previous due dates for interest and installment of NCDs.
Series of non convertible Previous due date Interest paid Previous due date payment Installment
debentures of interest of installment paid
11.40% NCDs of Rs. 150 crores 30-Jun-16 No 11-Jul-16 No
10.75% NCDs of Rs. 50 crores 3-Mar-16 Yes 3-Mar-16 No
11.30% NCDs of Rs. 150 crores 17-Mar-17 No N.A N.A
9.8% NCDs of Rs. 55 crores 20-Jul-16 No 3-Mar-16 No
e. Next due dates for interest and installment of NCDs.
Debenture details Next due date of interest Next due date of installment payment
11.30% NCDs of Rs. 150 crores 17-Jun-17 17-Sep-22
31-Mar-17 31-Mar-16
f. Debt Service Coverage Ratio
(EBDIT/(Interest +current maturity of LTD)) 0.63 0.60