Salzer Electronics 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 Audited financial results were duly reviewed by the Audit Committee at its meeting held on June 18, 2020, and were taken on record and approved by the Board of Directors at their meeting held on June 18, 2020.
2. The Company operates in only one segment viz., Electrical installation products.
3. The Company has adopted New Tax Regime as notified by the Government of India under Section 115 BAA of the Income Tax Act, 1961 which translated into the Tax Savings to the extent of Rs.126.04 Lacs for the Financial year 2019-20
4. The outbreak of COVID-19 pandemic and the resulting lockdown enforced from 24th March 2020 have affected the Company's regular operations. Accordingly, the Company has considered the possible effects that may result from the pandemic on the carrying amounts of property, plant and equipment, investments, inventories, receivables and other current assets. In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of this pandemic, the Company, as at the date of approval of these financial results has used internal and external information which are relevant in determining the expected future performance of the Company. The Company has evaluated its liquidity position, recoverability of such assets, and based on current estimates expects the carrying amount of these assets will be recovered. The impact of COVID-19 on the Company's financial results may differ from that estimated as at the date of approval of these financial results. Moreover, the Company has a practice of providing requisite provisions in the Financial Statements in line with the Accounting Standards for the expected credit loss on the carrying cost of both fixed and current assets taking care of all possible loss arising out of any uncertainties
5. The Management believes that it has taken into account all the possible impact of events arising from COVID 19 pandemic in the preparation of the standalone financial results including the ability of the Company to continue as going concern. However, the impact assessment of COVID 19 is a continuing process given the uncertainties associated with its nature and duration. The Company will continue to monitor any material changes to future economic conditions
6. The Company has written off Bad and irrecoverable amount of Rs.83.96 Lacs Lakhs from the Book Debts as at March 31,2020 and charged to Profit & Loss Account instead of routing through accumulated provisions for expected credit loss as the Company wants to retain the provisions to cover up the future loss that may be arising out of Covid -19 Pandemic
7. Basic Earnings per share and Diluted Earnings per Share have been prepared in accordance with IND AS 33 and presented on the expanded capital prevailing on the relevant date.
8. The Figures for the quarter ended March 31, 2020 are the balancing figures between the audited figures in respect of the full financial years and the published year to date figures upto the third quarter of the Financial year;
9. Comparative figures have been regrouped / reclassified wherever necessary to confirm to current period's presentation.