Vascon Engineers Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2020
Auditor and Management Disclosures and Notes for the annual results dated 31 Mar 2020
1. The above financial results have been reviewed by the Audit Committee and approved by the Board of Directors of the Company at its meeting held on 12th June, 2020.
2. These results have been prepared in accordance with the Indian Accounting Standards {Ind AS) prescribed under Section 133 of the Companies Act, 2013 and other recognised accounting practices and policies to the extent applicable.
3. The Group has reported segment information as per Indian Accounting Standard 106 "Operating Segments" [Ind AS 108) read with SEBI circular dated 5th July, 2016. The identification of operating segments is consistent with performance assessment and resource allocation by the Chief Operating Decision Maker (CODM). The Company's Chief Operating Decision Maker (CODM) is CEO and Managing Director.
Primary reporting business segments are as fallows:
a) Engineering, Procurement and Construction (EPC)
b) Real Estate Development
c) Manufacturing and BMS (Building Management System)
4. Effective from April 1, 2019, Group has adopted ind AS 116 "Leases'1, and applied the same to all applicable lease contracts existing on April 1. 2019 using the retrospective cummulative method allowed under the standard. Under this method, the cummulative adjustment, on the date of intial application is taken to retained earnings and accordingly, comparatives for the year ended March 31, 2019 have not been retrospectively adjusted. On transition, the adoption of the new standards, in the consolidated accounts, resulted in recognition of a Right of Use (ROU) of Rs. 545.22 Lakhs and a Lease Liability of Rs.685.81 Lakhs, the difference being a cumulative debit to retained earnings of Rs. 134.60 lakhs. In the statement of Profit & Loss for the current period, the nature of expense for operating lease has changed from lease rent in 1he previous year to depreciation cost for the ROU assets and the finance cost for interest accrued on lease liabilities. The net effect of this adoption is that the standalone and consolidated profit affer fax for the period are higher by Rs.47,57 lakhs and 46.86 lakhs respectively.
5. The consolidated results for the quarter ended on 31 March 19 have not been subjected to review by the statutory auditor of the Company.
6. Other Income in standalone and consolidated financial results for the year ended 31 March 2020, includes gain on sale of Investment amounting to Rs.902 Lakhs.
finance Cost includes reversal of interest provision of Rs.1039.86 Lakhs and Rs.1285.02 Lakhs in standalone and consolidated financial results for the quarter ended 31 March 2020 and year ended 31 March 2020 respectively.
7. The Standalone Financial statements of the Company for the year ended 31 March 2019 and quarter ended 31 March 2019 were audited by the predecessor auditor and they have issued unmodified report on the same.
The Consolidated Financial statements of the Company for the year ended 31 March 2019 were audited by the predecessor auditor and they have issued unmodified report on the same.
8. The Group has considered the possible effects that moy result from the pandemic relating to CQVID-19 on the carrying amounts of receivables, unbilled revenues, goodwill and intangible assets. In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of this pandemic, the Group, as at the date of approval of these financial statements has used internal and external sources of information including credit reports and related information, economic forecasts and consensus estimates from market sources on the expected future performance of the Group. The Group has performed sensitivity analysis on the assumptions used and based on current estimates expects the carrying amount of these assets will be recovered. The impact of COVID-S9 on the Group’s financial statements may differ from that estimated as at the date of approval of these consolidated financial statements.
9. A new Section 115BAA was inserted in the Income Tax Act, 1961, by The Government of India on September 20, 2019 vide the Taxation Laws (Amendment) Ordinance 2019 which provides an option to companies for paying income tax at reduced rates in accordance with the provisions/conditions defined in the said section. The Company has decided to continue with the existing tax structure for the year ended March 31, 2020.
10. The financial results for the quarter ended March 31, 2020 and March 31, 2019 are balancing figures between audited results for the full financial year and the published year to date figures upto the third quarter of the respective financial years.
11. The figures for the corresponding period / year have been regrouped and rearranged wherever necessary to make them comparable.