Hindware Home Innovation Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2021
Auditor and Management Disclosures and Notes for the quarterly results dated 31 Mar 2021
1. The above audited consolidated and standalone financial results of Somany Home Innovation Limited ("Company") for the quarter and year ended 31st March 2021 have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on 26th May 2021.
2. Figures for the quarter ended 31st March 2021 represents balancing figures between audited figures for full financial year and published year to date figures upto third quarter of current financial year.
3. To restrain the wide spread of COVID-19 pandemic in India, the Government of India declared lockdowns which impacted the business activities during first half of the financial year 2020-2021. Accordingly results of year ended on 31st March 2021 are not comparable with corresponding year ended on 31st March 2020, on account of restriction in business activities. Considering current market scenario and company^ s quality product portfolio, brand image, long-standing relationships & goodwill with its customers, suppliers and other stakeholders, Company expects that the business operations, cash flows, future revenue, assets and liabilities will sustain going forward. The impact of any future events and developments, if any emerging out of the Pandemic and of events accruing after the date of financial results of the quarter/year will be accounted for prospectively.
4.a) The Board of Directors of Company, in its meeting held on 23rd June 2020, had approved sale of Water Heater Business Undertaking (the "WHBU"), being part of Consumer Appliances business of Company, to its wholly owned subsidiary M/s. Hintastica Private Limited (the "CHPL") by way of slump sale through Business Transfer Agreement (BTA) executed between the Company and HPL on 2nd July, 2020. The Board of Directors of the Company at its meeting held on 30th December, 2020 also noted the consummation of the transaction with effect from 31st December, 2020. Gain on slump sale was accounted for in quarter ended 31st December 2020 as exceptional item in standalone financials. b) The Board of Directors of the Company, at its meeting held on 25th March, 2021 had approved the execution of Share Subscription and Shareholders Agreement ("SSHA") (along with the ancillary agreements) with M/s. Atlantic Societe Francaise De Development Thermique, France, ~Euro 2.2 billion multinational group ("Groupe Atlantic") and Hintastica Private Limited (c) In view of above and as per the Ind AS 103, the transactions with the subsidiary HPL is treated as transitory. Accordingly, restatement of previous year5 s figures has not been carried out.
5. The Board of Directors have recommended a dividend of 15% i.e. Rs. 0.30/- (previous year Rs. 0.15/-) on equity share of Rs. 2/- each for the year ended 31st March 2021 subject to approval of shareholders in the ensuing Annual General Meeting.
6. Based on technical assessments carried out by technical experts in line with usage & practices, the one of the wholly owned subsidiary, Brilloca Limited had during the quarter ended 30th September 2020 revised the useful life of certain class of Property, Plant and Equipment with effect from 1st April 2020. The depreciation for quarter and year ended 31st March 2021 is lower by Rs. 0.51 crore and Rs. 2.07 crore respectively.
7. The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post-employment benefits received Indian Parliament's approval and Presidential assent in September 2020. The Code has been published in the Gazette of India and subsequently, on 13th November, 2020, draft rules were published and stakeholders' suggestions were invited. However, the date on which the Code will come into effect has not yet been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.
8. Pursuant to Finance Act 2021 disallowing the amortization of goodwill, the Company during the quarter and year ended 31st March 2021, de-recognized the deferred tax benefits of Rs. 8.66 crore.
9. The previous period/year figures have been rearranged / regrouped, whenever considered necessary.