Gloster Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2021
Auditor and Management Disclosures and Notes for the annual results dated 31 Mar 2021
Notes :
1 . The above standalone financial results have been reviewed by the Audit Committee and were approved by the Board of Directors at their respective meetings held on 12th June, 2021.
2. The Board has recommended a dividend of 250% i.e. Rs. 25/- per equity share for the year ended 31st March 2021. The payment is subject to approval of the shareholders at the ensuing Annual General Meeting.
3. The Company is engaged in business of manufacturing jute goods and is managed organizationally as a single business segment. Accordingly, the Company has a single primary reporting segment as envisaged in Ind AS – 108 on "Segment Reporting".
4. The National Company Law Tribunal, Kolkata Bench vide its order dated 27th September, 2019, has approved the terms of the Resolution Plan submitted by the Company, to acquire Fort Gloster Industries Limited (FGIL) pursuant to Corporate Insolvency Resolution Process, under the Insolvency & Bankruptcy Code 2016. Management and control of FGIL has been handed over to the Company on 5th August 2020 and FGIL is now a wholly owned subsidiary of the Company.
5. The spread of COVID-19 has severely impacted businesses due to lock-down, disruptions in supply chain, transportations, travel bans, etc. The Company is in the business of manufacturing jute & allied products and jute is a labour intensive industry. Despite manpower availability constraints the company is trying to run the operations in the most efficient manner taking all precautions in view of the COVID – 19 pandemic. The Company is well positioned to fulfill its business obligations and does not foresee any major liquidity crunch for regular day-to-day operations.
The Company has made a detailed assessment of its liquidity position for the next one year and of the recoverability and carrying values of its assets comprising Property, Plant and Equipment, Intangible assets, Trade Receivables, Inventory and Investments at the balance sheet date, and has concluded that there are no material adjustments required in the standalone financial results.
"Management believes that it has taken into account all the possible impact of known events arising from COVID 19 pandemic in the preparation of the standalone financial results. However, the impact of assessment of COVID 19 is a continuous process given the uncertainties associated with its nature and duration. The Company will continue to monitor any material changes to future economic conditions.
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6. The Company has continued to amortise Goodwill acquired on account of amalgamation as per National Company Law Tribunal. Kolkata ("NCLT") order dated 19 January 2018 on the basis of useful life estimated by the management.
7. The exceptional item in the current year pertains to the partial recovery of inter corporate deposit which was written off in the previous year.
8. In respect of the standalone financial results, figures of quarter ended 31st March, 2021 and 31st March, 2020 are the balancing figures between audited figures of respective financial year and the year to date figure up to the third quarter ended 31st December, 2020 & 31st December, 2019.
9. Pursuant to the Taxation Laws (Amendment) Act, 2019, a new section 115BAA is inserted in the Income Tax Act, 1961 which provides an option to the domestic companies to pay income tax at lower rate subject to the giving up of certain incentives and deductions. The Company is continuing to provide for Income tax at the old rates, based on various tax incentive and deductions. However, the Company has applied the lower income tax rates on the deferred tax liabilities on account of temporary differences to the extent these are expected to be realised or settled in the future period when the Company may be subjected to lower tax rate.
10. Previous period's / year's figures have been regrouped / re-arranged, wherever necessary, to conform to the current period's / year's presentation.