Shree Digvijay Cement Company Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2021

1 The standalone and consolidated financial results for the quarter & year ended March 31, 2021 have been reviewed by the Audit Committee at it's meeting held on April 28, 2021 and approved by the Board of Directors at it's meeting held on April 28, 2021.



2 The Company has only one reportable segment, viz Manufacture and Sale of Cement, in accordance with Ind AS 108 - "Operating Segments".



3. 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 during the year ended March 31, 2020.



Tax expenses for year ended March 31, 2020 includes tax benefit of Rs.662.07 Lakhs on account of re-measurement of deferred tax assets (net).



4.The Company has made detailed assessment of its liquidity position and recoverability of carrying amount of financial and non-financial assets and concluded that there is no material adjustments required in the standalone and consolidated financial results for the quarter & year ended March 31, 2021.



Management believes that it has considered all the possible impact of known events arising from COVID -19 pandemic in the preparation of the standalone and consolidated financial results for the quarter & year ended March 31, 2021. 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.

5. During the year ended March 31, 2021, the Company has allotted 9,17,998 equity shares of Rs.10/- each to the option grantees upon exercise of Option under the Company's Employees Stock Option Scheme - 2019. Pursuant to this allotment, the paid up equity share capital of the Company has increased from 14,13,74,278 equity shares of Rs.10/- each to 14,22,92,276 equity shares of Rs.10/- each.



6 On June 01, 2020 the turbine and generator of Waste Heat Recovery plant got damaged due to an incident. The Company had lodged insurance claim for recovering cost of damage to the equipments and loss of profit on account of increase in power cost. The Company had accounted for Rs. 261 lakhs (Rs. 183.73 against the machinery break down claim and Rs. 73.17 lakhs as reimbursement of power cost against the additional cost of power). Out of which Rs. 187.83 lakhs have been received on account of machinery break down claim. The balance of the claim is under consideration with insurance Company.



7 On July 28, 2020, SDCCL Logistics Limited was incorporated as a wholly owned subsidiary of the Company, having paid up capital of Rs.1,00,000 (10,000 equity shares of Rs.10 each). With the incorporation of subsidiary, the Company is required to prepare consolidated financial results for the first time for the quarter ended September 30, 2020. Accordingly, the Company has presented consolidated financial results for the quarter ended March 31, 2021, quarter ended December 31, 2020 and year ended March 31, 2021 with no comparative figures since this being the first year of consolidation.



8 The Board has recommended a Dividend of Rs. 0.00/- (i.e. 0%) per equity share of Rs. 10/- each on 14,22,92,276 fully paid Equity Shares for the year ended March 31, 2021, aggregating to Rs. 0.00 lakhs.



9 The figures of the quarter ended March 31, 2021 and March 31, 2020 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.