Pitti Engineering Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2021

The above financial results for the quarter and year ended 31st March, 2021 were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 18th June 2021.



The financial results of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed uner Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India and guidlines issued by the Securities and Exchange Board of India.



A wholly owned subsidiary viz., Pitti Rail and Engineering Components Limited was incorporated on 5th October 2020.



The figures of the last quarters are the balancing figures between the audited figures of the financial years and the published results up to the third quarter of the respective financial years.



The Company is eligible for industrial incentives and benefits under the Package Scheme of Incentives, 2013 for its facility at Aurangabad and has received a letter from the Directorate of Industries, Government of Maharashtra approving the following:

(a) industrial policy subsidy amount of Rs.1113.04 lakhs has been approved, for the period from 01.04.2018 to 31.03.2019, of which a provisional amount of Rs. 834.78 lakhs has been sanctioned as per the terms and conditions specified in the said letter, and the balance amount will be sanctioned as per the terms of the Scheme.

(b) an industrial policy subsidy amount of Rs. 1053.09 lakhs has been approved for the period from 01.04.2019 to 31.03.2020 of which a provisional amount of Rs. 789.81 lakhs has been sanctioned as per the terms and conditions specified in the said letter, and the balance amount will be sanctioned as per the terms of the Scheme.

Accordingly an amount of Rs.1624.59 lakhs has been recorded during the quarter and year ended 31st March 2021 under other income towards industrial incentive sanctioned for the period 01.04.2018 to 31.03.2020.



The Company has considered the possible effects that may result from the pandemic relating to COVID-19 on the carrying amounts of receivables, intangibles, investments and other assets. In developing the assumptions relating to the possible future uncertainties in the economic conditions because of this pandemic, the Company has used internal and external sources of information. The Company has reviewed the assumptions used and based on current estimates expects the carrying amount of these assets will be recovered. The impact of COVID-19 on the Company’s financial statements may differ from that estimated as at the date of approval of these financial statements and the Company will continue to closely monitor any material changes to future economic conditions.



The long term debt includes unsecured loans of Rs. 2510 lakhs upto 31.03.2021 brought in by the promoters/promoter group for working capital and capital expenditure.



The Company has only one business segment manufacturing of engineering products of Iron and Steel, hence the reporting is done as a single segment. For geographical segment Revenue and Assets details, please refer point 8 of the results submitted to the stock exchanges.