TVS Electronics Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2020

1. The above audited financial results have been reviewed and recommended by the Audit Committee of the Board and subsequently approved by the Board of Directors at its meeting held on June 06, 2020.



2. 'With effect from April 01, 2019, company has segregated the segment "IT Products & Technical Services" into two separate segments viz, (i) "Products & Solutions" (ii) "Customer Support Services" based on the current focus in review of operations by the Chief Operating Decision Maker (CODM). Accordingly, the Company has the following business segments as per Ind AS 108:

(i) Products & Solutions; (ii) Customer Support Services (iii) Fulfillment & Distribution Services;



3. 'The 'Fulfilment & Distribution Services' is a high volume, high value business, but with low margins. Hence, the revenue from this segment is not comparable with other segments. Any periodic comparison should take this into consideration. Please refer below the comparable figures, excluding the 'Fulfilment and Distribution Services'

Three Months Ended (Rs.In L) Year Ended (Rs.In L)

unaudited Audited

Mar 31, 2020 Dec 31 2019 Mar 31 2019 Mar 31 2020 Mar 31 2019

Gross Sales/Income from operation: 4765 6296 5632 23363 22335

Profit Before Interest and Tax* (860) 72 339 (332) 983



*before considering finance cost and unallocable income net of expenditure



4. Consequent to adoption of Ind AS 116 "Leases" with effect from April 01, 2019, the Company had recognised Right to use Asset and equivalent Lease Liability. In view of this, the operating lease rent expenses which were accounted under "Other expenses" in earlier years have now been accounted as depreciation and finance cost. Accordingly, the profit for Quarter and Year ended March 2020 are lower by Rs. 3 lakhs and Rs. 79 lakhs respectively. To this extent, performance for the Quarter and Year ended March 31, 2020 are not comparable with Quarter and Year ended March 31, 2019



5. The exceptional item in the financial results for the quarter and year ended 31 March 2020 relates to impairment of carrying value of the business rights relating to Customer Support Services business based on management assessment.



6. The Company has considered the possible effects, if any, that may result from the pandemic relating to COVID-19 on the carrying amounts of Trade receivable, Inventories, other financial assets, other current assets and intangible assets. In developing the assumptions and estimates relating to the uncertainties as at the Balance sheet date in relation to the recoverable amounts of these assets, the Company has considered the economic conditions prevailing as at the date of approval of these financial statements and has used internal and external sources of information to the extent determined by it. Based on current estimates, the Company expects that no further adjustments are required to the carrying amounts as at 31 March 2020. This assessment and the outcome of the pandemic as regards the aforesaid matters is highly dependent on the circumstances/ developments as they evolve in the subsequent periods.



7. The company has not presented consolidated financial results for the Quarter and Year ended March 31, 2020 since it had disposed of the entire investment in its subsidiary in the prior year.



8. The Board of Directors at their meeting held on March 07, 2020 had declared an interim dividend of Rs.1.50 per Equity share of face value of Rs.10/- each, which is to be treated as final dividend for the year.



9. The statement includes the results for the quarter ended March 31, 2020 and March 31, 2019 being the balancing figure of audited figures in respect of the full financial year and published to date figures up to the third quarter of the respective financial years.



10. The financial results are available on the website of BSE Limited (Bombay Stock Exchange Limited), National Stock Exchange of India Limited and the Company - www.tvs-e.in.