Bharat Forge Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2021
Auditor and Management Disclosures and Notes for the annual results dated 31 Mar 2021
1. The above results have been reviewed by the Audit Committee and approved by the Board of Directors of the Company at their respective meetings held on June 04, 2021.
2. The Board of Directors. at its meeting held onJune 4, 2021 has recommended final Dividend of < 2/- per Equity share of< 2/- each ( 100 %)
3. On June 04, 2021, the Company has declared the Voluntary Retirement Scheme (VRS) for its employees at Chakan Plant. The Scheme would be open till June 30, 2021.
4. Exceptional items represent:
i Expenses of, 8.03 million for the quarter ended March 31, 2021 and, 91.83 million for the year ended March 31, 2021 in the results on account of "Voluntary Retirement Scheme” (VRS) declared by the Company for its employees at Mundhwa and Satara Plants.
ii Expenses of , 227.77 million for the year ended March 31, 2021 in the consolidated results being in the nature of manpower optimization in overseas subsidiaries.
iii During the previous quarter ended December 31, 2020, Germany's National Competition regulator (federal Cartel Office ) has concluded the settlement with the Company's German subsidiaries. Accordingly an amount of 2,742.68 million has been provided during the quarter ended December 31, 2020 and year ended March 31, 2021 towards such settlement in consolidated results including related expenses . The settlement amount will be paid over next 5 years.
5. The figures pertaining to the quarter ended March 31, 2021 and March 31, 2020 are the derived figures between the audited amounts for the year ended March 31, 2021and March 31, 2020 and unaudited amounts published for the nine months ended December 31, 2020 and for the nine months ended December 31, 2019 respectively.
6. "Other expenses" includes impact of exchange fluctuations on foreign currency transactions including revaluation of foreign currency assets and liabilities.
7. The code on Social Security, 2020 ('Code') relating to employees benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/interpretation have not yet been issued. 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. On March 16, 2021, the Company invested , 0.01 million to acquire 100% stake in equity of Kalyani Powertrain Private Limited to undertake various initiative for e-mobility business.
9. On May 06, 2021, the Company invested < 0.10 million to acquire 100% stake in equity of BF Industrial Solutions Private Limited (formerly known as Nouveau Power & Infrastructure Private limited) as a special purpose vehicle (SPV) for implementation of approved resolution plan of National Company Law Tribunal (the NCLT) for acquisition of Sanghvi Forging & Engineering Limited, Baroda in terms of Insolvency and Bankruptcy code, 2016.
10. The spread of COVID-19 has severely impacted business in many countries including India and there have been severe disruption to regular business operations due to lockdown and other emergency measures. This may impact the Group's operations in certain geographies. The Group has made assessment of liquidity, recoverable values of its financial and non-financial assets, financial and non-financial liabilities, carrying value of its subsidiaries including possible obligations arising from any ongoing negotiations with customers, vendors and regulatory exposures across businesses and geographies and has concluded that there are no material adjustments required in the interim financial results and annual financial statements. The management believes that it has assessed and taken all the possible impacts known from these events wherever possible outcome is known. However, given the effect of these on the overall economic activity and in particular in the industry in which Group operates, the impact assessment of COVID-19 is a continuous process, given the significant estimation and uncertainties associated with its nature, duration and outcome of any negotiations. The impact of global health pandemic might be different from that estimated as at the date of approval of these financial results. The Group will continue to closely monitor any material changes to future economic conditions and its consequential impact on its financial results.