TVS Electronics Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2018
Auditor and Management Disclosures and Notes for the annual results dated 31 Mar 2018
1. The above audited financial results have been reviewed and recommended by the Audit Committee of the Board and approved by the Board of Directors at its meeting held on May 11, 2018.
2. The Scheme of Amalgamation of wholly owned subsidiary Prime Property Holdings Limited with the Company ("TVS Electronics Limited") has been sanctioned by the National Company Law Tribunal vide their order dated March 27,2018 ,the appointed date being April 01,2016. The Amalgamation being a common control transaction under Ind AS 103 - Business Combination, the scheme of amalgamation has been given effect to from April 01,2016 in the financial Statements.
Consequent to giving effect of the above, the results of the Quarter ended March 31,2018 and Quarter ended March 31, 2017 include twelve months figures of Prime Property Holdings Limited.
3. The distribution services for mobile phones is a large volume, large value business, with low margins. Any periodic comparison should take this into consideration.
4. Exceptional Items' of Rs.369 lakhs represents net profit on sale of leasehold rights on land and other assets.
5. Consolidated results include the results of the Company and its subsidiary, viz., Benani Foods Private Limited, Chennai (collectively referred to as "Group") which is a subsidiary by virtue of control as per Ind AS 110 - "Consolidated Financial Statements".
6. In accordance with Ind AS 108 - "Segment Reporting" the Group has identified the following business segments:
(a) IT product & Technical services; (b) Distribution services; (c) Food products.
7. The figures for the current quarter and the quarter ended March 31, 2017 are the balancing figures between audited figures of the full financial year ended March 31, 2018 and March 31, 2017, respectively and published year to date figure upto third quarter ended December 31, 2017 and December 31, 2016 respectively.
8. Business Rights having a carrying value of Rs. 1,809 lakhs as on transition date (April 01, 2016) was reassessed during the current quarter to be an intangible with indefinite useful life. Hence carrying value of the asset was tested for impairment as on March 31, 2018 as required under 'Ind AS38 - Intangible Assets'. As there was no impairment, depreciation/amortisation charged in earlier quarters amounting to Rs. 232 lakhs was reversed during the current quarter and an amount of Rs 310 lakhs relating to previous financial year was reversed in comparative quarter.
Depreciation and amortization expense for current quarter and comparative quarter is net off the above reversal.
9. Results for the quarter / year ended March 31, 2018 and quarter ended December 31, 2017 are in compliance with Indian Accounting Standards ( Ind-AS) notified by the Ministry of Corporate Affairs. Consequently, results for the quarter / year ended March 31, 2017 have been restated to comply with Ind-AS to make them comparable. Reconciliation of net profit for the previous periods between previous Indian GAAP and Ind AS is as under For Table, kindly refer Corporate Announcements on www.bseindia.com.
10. The Board of Directors have recommended a dividend of Rs. 1.50 per Equity share of face value of Rs. 10/- each for the financial year ended March 31, 2018. The dividend will be paid / dispatched to the shareholders within 30 days from the date of declaration by the members at the ensuing Annual General Meeting.
11. Figures for the previous periods have been regrouped, wherever necessary, to conform to current period's classification.