Tata Steel BSL Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2018
Auditor and Management Disclosures and Notes for the annual results dated 31 Mar 2018
1. The above financial results for the quarter and year ended March 31, 2018 have been reviewed by the Audit Committee and were approved by the Board of Directors of Bhushan Steel Limited (“the Company”) at their respective meetings held on August 9, 2018.The statutory auditors of the Company have audited these financial results pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
2. A corporate insolvency resolution process (“CIRP”)under the Insolvency and Bankruptcy Code, 2016 was initiated against the Company vide an order of the Principal Bench of the National Company Law Tribunal (“NCLT”) dated July 26,2017. Subsequent to the year-end, on May 15, 2018, the NCLT has approved the terms of the Resolution Plan submitted by Tata Steel Limited (“TSL”), which provides, inter alia, the acquisition of the Company by TSL, through its wholly owned subsidiary Bamnipal Steel Limited. The approval of the Resolution Plan subsequent to March 31, 2018has been considered as a non-adjusting event for the purpose of financial results for the year ended March 31, 2018. Pursuant to such approval of the Resolution Plan, the financial results for the year ended March 31, 2018 have been prepared on a going concern basis.
3. Other exceptional items for the year ended March 31, 2018 include prior period items of Rs. 2,019.11 crores.
4. The statutory auditors of the Company have expressed a qualified opinion on the standalone and consolidated financial results of the Company for the year ended March 31, 2018. The cumulative impact of the same on turnover, total expenditure, profit or loss and earning per share of the Company for the year then ended is Rs. Nil, Rs. 2,019.11 crores, Rs. 1,968.76 crores and decrease of Rs. 86.92 per share respectively. As the qualification pertains to prior period adjustments in the financial results for the year ended March 31, 2018, there is no cumulative impact thereof on the balance sheet of the Company as of that date.
5. Goods and Service Tax (“GST”) has been implemented with effect from July 1, 2017 and therefore, Revenue from Operations for the quarter ended December 31, 2017 and March 31, 2018 are net of GST. Revenue from operations and expenses for the quarter and year ended March 31, 2017 being inclusive of excise duty are not comparable with corresponding figures of quarter and year ended March 31, 2018.
6. The Company is in the business of manufacturing of steel products and hence has a single segment as per Ind AS 108 “Operating Segments”.
7. The figures for the quarters ended March 31, 2018 and March 31, 2017 are the balancing figures between the audited figures in respect of the full financial year and the year to date figures upto the period ended December 31 of the respective years.
8. Post-acquisition of the Company pursuant to the Resolution Plan, the new management had to understand, acclimatize and take complete control of the operations of the Company. Further, the effect of the Resolution Plan on the financial statements (standalone and consolidated) of the Company for the quarter and year ended March 31, 2018 had to be carefully analyzed and understood to prepare the financial statements in a manner such that the said financial statements present a true and fair view for quarter and year ended March 31, 2018. It is for these reasons, that the financial statements were approved by the Audit Committee and adopted by the Board of Directors as of date. The Company had made an application to Securities and Exchange Board of India seeking extension of time to file the financial results. However, the request was not acceded to by SEBI.