Escorts Finance Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2018
Auditor and Management Disclosures and Notes for the quarterly results dated 31 Dec 2018
1. The above Standalone Financial Results were reviewed by the Audit committee and approved and taken on record by the Board of Directors to their meeting held on 21 January 2019.
2. The above results are in compliance with Indian Accounting Standards find AS") notified by the Ministry of Corporate Affairs.
3. The Company has a single reportable segment namely financial services (limited to recovery of loan assets) for the purpose of Ind AS-108.
4. M/s Escorts Benefit Trust (EBT) m terms of the directions of Hon'ble Delhi High Court directed to repay the unpaid fixed deposit liability, maintains adequate funds to repay the matured unpaid fixed deposit liability. During the quarter ended on 31 December 2018, EBT has settled the claims to the extent of Rs. 2.31 lacs by payment to respective fixed deposit holders. The remaining liability towards unclaimed fixed deposits and interest thereon is Rs. 1092.61 lacs as on 31 December 2018 (Rs. 1094.92 lacs as on 30 September 2018).
5. Deferred tax Assets has not been recognised in the books of account as there is no virtual certainity of future taxable income
6. The Company had accumulated losses as at the close of the preceding financial year and also has incurred losses during nine months ended on 31 December 2018 with its net worth continuing to stand fully eroded. However the Company continues to focus on recovery of old delinquent loan assets through settlement / compromise / legal action etc, arising out of it‘s earlier business of the NBR The management is considering venous options in respect of the appropriate business for the Company and therefore the accounts have been prepared on Going Concern Basis.
7. The Company has not obtained Actuarial Valuation with regards to Employee's terminal benefits i.e., Gratuity and Leave Encashment as mandated by Ind AS 19. In the absence of the Actuarial Valuation, the impact thereof on the profit and liabilities of the company cannot be ascertainable. Further, we have been informed by the management that the same will be taken care at the end of the financial year i.e. March 31, 2019.
8. The figures for the previous period have been regrouped / rearranged / reclassified wherever necessary.