Ceat Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2017
Auditor and Management Disclosures and Notes for the annual results dated 31 Mar 2017
1. The Company adopted Indian Accounting Standards (“Ind AS”) and accordingly the financial results for all quarters presented have been prepared in accordance with the recognition and measurement principles laid down in the Ind AS 34 Interim Financial Reporting prescribed under Section 133 of the Companies Act, 2013 read with the relevant rules issued thereunder and the other accounting principles generally accepted in India. The date of transition to Ind AS is April 1, 2015.
2. The figures of the last quarter are the balancing figures between audited figures in respect of full financial year upto March 31, 2017/ March 31, 2016 and the unaudited published year-to-date figures up to December 31,2016 / December 31, 2015 being the date of the end of the third quarter of financial year, which were subject to limited review.
3. The above results were reviewed by the Audit Committee held on April 27,2017 and thereafter approved by the Board of Directors at their meeting held on April 28, 2017.
4. Exceptional Item for the year ended March 31, 2017:
The Company had introduced Voluntary Retirement Schemes (VRS) for its employees. The compensation in respect of employees who opted for VRS aggregated to Rs. 1332.55 Lacs for year ended March 31, 2017.
5. Reconciliation between financial results previously reported (referred to ‘Previous GAAP’) and Ind AS are as under:
(Rs. in lacs)
Particulars For the quarter ended March 31, 2016 For the year ended March 31, 2016
Net profit under previous GAAP (after tax) 10,223 45,252
i. Actuarial loss on employee defined benefit plan recognized in "Other Comprehensive Income" as per Ind AS 19 180 (206)
ii. Discounting /Unwinding of liability/provision 4 67
iii. Others (609) (579)
iv. Deferred tax on above adjustments (net) (140) (16)
Net profit under Ind AS (after tax) 9,658 44,518
Other comprehensive income (65) 171
Total comprehensive income 9,593 44,689
6. Reconciliation between reserves as at March 31, 2016 previously reported (referred to ‘Previous GAAP’) and Ind AS are as under: (Rs. in lacs)
Particulars As at March 31, 2016
Net worth under IGAAP as on March 31, 2016 1,99,126
i. Discounting /Unwinding of liability/provision of warranty 212
ii. Deferred Tax impact on Ind AS adjustment (72)
iii. Fair valuation of non current investment (4,350)
iv. Others (10)
Net worth under Ind AS as on March 31, 2016 1,94,906
7. As the Company’s business activity falls within a single operating segment, viz. “Tyres”, no separate segment is disclosed.
8. Additional disclosures as per regulation 52(4) of Securities Exchange Board of India (Listing, Obligations and Disclosure Requirements) Regulations, 2015:
i. The long term rating of the company was enhanced by CARE from AA- to AA during the year.
ii. The listed non-convertible debentures of the company aggregating Rs. 20,000 lacs are secured by way of first charge over certain immovable properties and movable (excluding current assets) assets of the Company and the asset cover thereof exceeds 120 per cent of the principal amount of the said debentures.
iii. The payment of the coupon interest on non-convertible debentures is at monthly rests on the last working day of each month. The maturity/ repayment of the first series is on July 31, 2019 of Rs. 1,000 lacs. The last interest was paid on March 31, 2017 and the next due date for payment of interest amounting to Rs. 144.68 lacs is April, 2017.
iv. Other disclosures:
Particulars As at March 31,2017
Capital Redemption Reserve Rs. 390 lacs
Debenture Redemption Reserve Rs. 3,334 lacs
Net worth Rs. 2,30,615 lacs
Net Profit after tax Rs. 36,273 lacs
Earnings Per Share Rs. 89.67
(of Rs. 10 each – not annualized )
Debt Equity Ratio 0.34
Debt Service Coverage Ratio(‘DSCR’) 3.38
Interest Service Coverage Ratio(‘ISCR’) 5.95
a) DSCR = Earnings before Interest cost, Tax expenses and exceptional items /(Total Finance cost+ current borrowings + current maturities of non current borrowings)
b) ISCR = Earnings before Interest cost, Tax expenses and exceptional items / Total Finance cost
c) Debt comprises non current borrowings, current borrowings and current maturities of non current borrowings
d)Net Worth = Equity share capital + Other equity
9. The figures have been regrouped / rearranged wherever considered necessary to conform to current period classification and grouping.
10. Information on dividends for the quarter and year ended March 31,2017
The Board of Directors has recommended a final dividend of Rs. 11.50 per fully paid up Equity share for the financial year ended 2016-17 aggregating Rs. 5,598.75 lacs , including dividend distribution tax.