Simmonds Marshall Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2020

1. The above audited results were reviewed by Audit Committee and approved by the Board of Directors at its meeting held on July 13, 2020.

2. The Company has only single reportable business segment i.e. Manufacturing of Industrial Fasteners' in terms of requirements of IND AS 108 and has Its operations I assets located in India.

3. The Group/Company has adopted Ind AS 116 "Leases" effective 1st April 2019, as notified by the Ministry of Corporate Affairs (MCA) vide Companies (Indian Accounting Standard) Amendment Rules, 2019. The adoption of this Standard does not have any impact on the loss for the current quarter & year ended March 31, 2020 and also on the opening reserves.

4. Due to the outbreak of Pandemic 'Novel Coronavirus' ("COVID - 2019") and consequent Lockdown announced by the Centre and State Governments on 23rd March, 2020, the Company had temporarily suspended operations at Its manufacturing unit situated at Pune, Maharashtra. The Company have commenced operations at plant w.e.f. June 8, 2020. The Company is taking various precautionary measures to protect employees from COVID-2019. The management has considered the possible effects, that may interalia, impact the carrying amounts of capital work in progress, goodwill, deferred tax assets, inventories and trade receivables. The impact of the global health pandemic may be different from that estimated as at the date of approval of these financial statements. Considering the continuing uncertainties, the Management will continue to closely monitor any material changes to future economic conditions and take necessary measures to address the situation.
The Company is In the process of shifting its manufacturing unit from Kasarwadi to Chakan, Pune, which got affected by the said pandemic. For Chakan plant, the Company has taken the Building on lease from its associate. The Company Is in process of entering into an agreement with the said associate and also obtaining approvals from concerned authorities. As on the balance sheet date, the Company has incurred Rs. 1,889.60 lakhs on Lease hold improvements under construction and Property, plant and equipment under installation which have been disclosed as Capital work in progress. The lease expense would be accounted from the date of execution of the formal agreement.
Uptill quarter ended December 31, 2019, the Company has provided accelerated depreciation on its assets located at Kasrwadi plant over the balance period of 12 months which has now been extended to 17 months i.e. August, 2020, in view of delay in shifting due to pandemic. The accelerated depreciation has resulted in lower depreciation of Rs.28.42 Lakhs for the quarter ended 31st March, 2020 and high depreciation by Rs. 68.21 Lakhs for the year ended March 31, 2020.

5. The figures for 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 third quarter for the relevant financial year which were subjected to limited review by the statutory auditors.

6. Previous quarter/ year's figures have been regrouped to conform to current quarter / year's presentation


NS Marshall
Managing Director