Trident Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2019
Auditor and Management Disclosures and Notes for the annual results dated 31 Mar 2019
1. The results have been prepared in accordance with the Indian Accounting Standards ("Ind AS") as prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder.
2. The above results have been reviewed by the Audit Committee in its meeting held on May 11, 2019 and thereafter approved by the Board of Directors in its meeting held on May 13, 2019.
3. Excise duty realised is included in Revenue from Operations of periods upto 30thJune, 2017 and Revenue from Operations for the subsequent periods are net of Goods and service tax (GST).
4. Effective April 1, 2018, the Company adopted Ind AS 115 - Revenue from Contracts with Customers. The effect on adoption of Ind-AS 115 is insignificant on the financial statements.
5. Effective August 8, 2018, the Company has adopted cash flow hedging on derivative contracts. The effective portion of changes in the fair value of the derivative contracts that are designed and qualify as cash flow hedges is recognized in the other comprehensive income. As a result of above, profit after tax for the year is lower by Rs. 149.8 million (net of taxes of Rs. 80.5 million) (Including for the current quarter by Rs 49.6 million (net of taxes of Rs. 26.6 million).
6. The Companies (Indian Accounting Standards) second amendment rules 2018 has, during the current year amended IND-AS 20 "Accounting for Government Grants and Disclosure of Government Grant Assistance", which gives the option of presentation of amount of Government Grant related to asset, including non-monetary grants at fair value in the balance sheet either by setting up the amount of grant as deferred income or deducting the amount of grant in arriving at the carrying amount of the assets. The Company had during the quarter ended December 31, 2018 made the accounting policy choice of deducting the net grant amount in arriving at the carrying amount of assets which was earlier presented as deferred government grant. As a result of above change, the net block of Plant and Machinery under the head "Property Plant and Equipment" has decreased by Rs. 922.9 million as at April 1, 2017, (Rs. 801.4 million as at March 31, 2018), Deferred Government Grant (Non-Current) under the head "Other Non-Current Liabilities" has decreased by Rs. 807.3 million as at April 1, 2017, (Rs. 687.0 million as at March 31, 2018), and Deferred Government Grant (Current) under the head "Other Current Liabilities" has decreased by Rs. 115.6 million as at April 1, 2017, (Rs. 114.4 million as at March 31, 2018) in the standalone and consolidated financial statements. However, there is no impact on the standalone and consolidated profit before tax/after tax for the year ended March 31, 2018 and March 31, 2019.
7. The Company has adopted IND AS with transition date as April 1, 2015 and its first IND AS standalone and consolidated financial statements were prepared for the year ended March 31, 2017. The Company had adopted to fair value the block of Land on the transition date i.e. April 1, 2015 to Ind AS and considered the same as the deemed cost under Ind AS as per note 49 (C) of the IND AS standalone and consolidated financial statements of the Company for the year ended March 31, 2017. On account of such fair valuation, corresponding Deferred Tax Liability was recognised. While calculating the Deferred Tax Liability, for the tax base, the Company had considered the value of Land at which such Land was acquired under past Business Combinations before the date of transition to IND AS (i.e. Fair Value at the time of Business Combination being the carrying amount in the books) as cost of acquisition instead of cost to the previous owner in accordance with Section 49(1) of the Income Tax Act, 1961. Further, while calculating the Fair Value Gain on land, the land which was given on long term lease of 99 years and already derecognised in books (as long term lease was considered as sale in accordance with the applicable Indian GAAP at that time) was also erroneously recorded at fair value on the transition date resulting in overstatement of Property, Plant and Equipment by Rs. 877.1 million.
These rectification adjustments resulted in increase of "Deferred Tax Liabilities (net)" by Rs. 1,296.4 million as at April 1, 2017, (Rs. 1,275.0 million as at March 31, 2018), decrease in "Freehold Land" under the head "Property Plant and Equipment" by Rs. 877.1 million as at April 1, 2017, (Rs. 877.1 million as at March 31, 2018), and decrease in "Other Equity" by Rs. 2,173.5 million as at April 1, 2017, (Rs. 2,152.1 million as at March 31, 2018) which has led to a restatement of the standalone and consolidated financial statements as at April 1, 2017 and standalone and consolidated financial statements for the year ended March 31, 2018 in accordance with the Ind AS 8 Accounting Policies, Changes in Accounting Estimates and Errors. Further, there is no impact on the standalone and consolidated profit before tax for the year ended March 31,2018. However, standalone and consolidated profit after tax has increased by Rs. 21.4 million for the year ended March 31, 2018, Rs. 5.4 million for the quarter ended March 31, 2018 and Standalone and Consolidated profit after tax has decreased by Rs 7.2 million in profit after tax for the quarter ended December 31, 2018, due to accounting of deferred tax liabilities.
8. The Board of Directors have recommended a final dividend of 6% (INR 0.60/- per Equity Share of Rs. 10/- each) for the financial year 2018-19 subject to the approval of the shareholders in the forthcoming Annual General Meeting of the Company. This final dividend is in addition to the three interim dividends i.e. two interim dividends of 6% each (Rs. 0.60/- per Equity Shares of Rs. 10/- each) and one interim dividend of 12% (Rs. 1.20/¬per Equity Shares of Rs. 10/- each) declared during the financial year 2018-19. The total dividend for the financial year 2018-19 is 30% (INR 3.0/- per Equity Shares of Rs. 10/- each).
9. The Board of Directors have recommended the split/sub-division of One (1) Equity Share having a face value of Rs. 10/- each into Ten (10) Equity Share having a face value of INR 1/- each, subject to the approval of the shareholders.
10. The figures of last quarter of the current and* previous year 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 financial year after giving impact as stated in note 6 and 7 above. The previous financial period/year figures have been regrouped/rearranged wherever necessary to make them comparable.