Technofab Engineering Ltd. - Quarterly/Annual Result Disclosures and Notes dated 30 Sep 2020
Auditor and Management Disclosures and Notes for the quarterly results dated 30 Sep 2020
1. The aforesaid results were placed before and reviewed by the Audit Committee at its meeting held on 26th March, 2021 and subsequently approved by the Board of Directors at its meeting held on the same date.
2. The Company has only one Primary Segment i.e.Engineering,Procurement and Contracting.Hence,there is no reportable segment.
3. The statement has been prepared in accordance with Companies (Indian Accounting Standard) Rules, 2015 (Ind AS) prescribed under Section 433 of Companies Act, 2013 and other recognised accounting practices and policies to the extent applicable.
4. Interest in respect of Bank Loan with various banks amounting to Rs.2195.24 lakhs for the period starting from July-2019.to Sept 2020 (Rs.915.28 lakhs for the period from Jul 2020 to Sept 2020) was not charged by bank.
5. The Company was unable to complete various projects in time, performance bank guarantees of the Company were also invoked by other parties, and non-recovery of its funds due to various reasons and hence defaulted on repayment of dues to lenders, consequently the lenders have classified the loan balances of the Company as non-performing assets.
6. The Company has incurred significant losses during the period. The networth of the company has eroded. The Company has delayed/defaulted in payment of loans and interest and loan accounts have been classified as non-performing assets by banks. Due to fund constraints and other reasons the company has not been able to complete projects as expected, resulting to invocation of bank guarantees/performance guarantees. Notwithstanding the above, the Standalone financial statements of the Company have been prepared on going concern basis as management believes that the Company would be able to ultimately establish profitable operations, meet its commitments and reduce debt.
7. A loss shown in the exceptional items that relates to an unusual event that does not happen regularly. The company suffered a Rs.1492.20 Lakhs exceptional loss due to the Bank Guarantee invoked.
8. The figures for the corresponding previous period have been regrouped/reclassified wherever necessary, to make them comparable.