Shree Digvijay Cement Company 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
NOTES:
1 The financial results for the quarter and year ended March 31, 2020 have been reviewed by the Audit Committee at it's meeting held on May 14, 2020 and approved by the Board of Directors at it's meeting held on May 14, 2020.
2.The Company has only one reportable segment, viz Manufacture and Sale of Cement, in accordance with Ind AS 108 - "Operating Segments".
3.Effective April 01, 2019, the Company has adopted Ind AS 116 "Leases", applied to all lease contracts existing on April 01, 2019 using the modified retrospective method and has taken the cumulative adjustment to retained earnings, on the date of initial application. Accordingly, comparatives for the year ended March 31, 2019 have not been retrospectively adjusted
4.The company expects that it will exercise the option permitted under section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019 in FY 2022-23. Accordingly the Company has re-measured its deferred tax assets (net) positions and on basis of the rate prescribed under section 115BAA, has taken the full effect to Statement of profit and loss A/c during the quarter ended March 31, 2020.
Tax expenses for Year ended March 31, 2020 includes tax benefit of Rs.662.07 Lakhs on account of deferred tax assets (net) re-measurement.
5.Subsequent to shareholders approval on August 05, 2019, The Nomination, Remuneration and Compensation Committee of the Board of Directors of the Company granted 70,60,000 Stock Options on August 05, 2019 to eligible employees of the Company, including to the CEO & Managing Director and 5 business heads. The Exercise Price for the Options is Rs. 16 per Option, based on the "Market Price" on
the date of grant i.e. August 05, 2019.
6.The spread of COVID-19 has severely impacted business around the globe. In many countries including India, there has been severe disruption to regular business operations due to lock-down, disruptions in transportation, supply chain, travel bans, quarantines, social distancing and other emergency measures.
The Company has made detailed assessment of its liquidity position for the next one year and of the recoverability and carrying values of its assets comprising Property, Plant and Equipment, intangible assets, Trade Receivables, and Inventory as at the balance sheet date and has concluded that there is no material adjustments required in the Financial Statements.
Management believes that it has considered all the possible impact of known events arising from COVID -19 pandemic in the preparation of the financial Statements. 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.
7. the Board has recommended a Dividend of Rs.1.50(i.e 15%)per equity shares of Rs.10/-each on 14,13,74,278 fully paid equity shares for the year ended March 31,2020 aggregating to Rs.2120.61 lakhs.
8.The figures of the quarter ended March 31, 2020 and March 31, 2019 are the balancing figures between the audited figures in respect of the full financial year and the published year to date figures up to the nine months of the relevant financial year.