Batliboi Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2021
Auditor and Management Disclosures and Notes for the annual results dated 31 Mar 2021
1) The above results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on 28th May 2021 and have been subject to audit by the statutory auditors of the Company.
2) The figures of the quarters ended 31st March 2021 and 31st March 2020 are the balancing figures between the audited figures in respect of the full financial year and the published figures of nine months ended 31st December 2020 and 31st December 2019 respectively, which were subject to limited review by the statutory auditors.
3) The Company operates in one segment as 'Industrial Equipment', since there is no other reportable segment as defined under Ind AS 108 "Operating Segments", no separate disclosure has been given.
4) The Taxation Laws (Amendment) Act, 2019 was enacted on 11th December 2019. It amended the Income Tax Act, 1961 and the Finance Act (No. 2) Act, 2019. It provides domestic companies with an option to opt for lower tax rate, provided they do not claim certain deductions. The Company has not exercised the option to opt for lower tax rate and has presently considered the rate existing prior to the amendment. The Company shall evaluate the option to opt for lower tax rate once it utilises the entire carried forward losses and MAT credit available under the Income Tax Act.
5) The Board of Directors of AESA Air Engineering SA, France which was a step-down subsidiary, had filed Judiciarie Redressment under French Law on 6th July 2020. The French Court had passed an interim order on 18th November 2020, taking cognizance of the situation and pronounced the ‘liquidation judicial’ of the said step down subsidiary and appointed a liquidator. In the current quarter the Company has made additional provision of Rs. 77.22 lakhs for doubtful recovery of dues from AESA Air Engineering SA, France making the total provision of Rs. 158.08 lakhs against total recoverable amount of Rs. 158.08 lakhs as on 31st March 2021.
6) The Company's business operations for the quarter and year continued to be adversely impacted by the measures to contain the spread of COVID -19 and restrictions imposed due to the second wave of COVID - 19. The operations continued to improve gradually with requisite precautions during the quarter with limited availability of workforce, disrupted supply chain and delayed offtake from customers. The results for the quarter and year are, to that extent, not comparable with those for the previous periods/year. The Company has evaluated the impact of this pandemic on its business operations, liquidity and financial position based on internal and external information available up to the date of approval of these standalone financial results and expects to recover the carrying values of its assets.
The impact assessment of COVID -19 is a continuing process given the uncertainties associated with its nature and duration and accordingly the impact may be different from that estimated as at the date of approval of these standalone financial results. The Company will continue to monitor any material changes to future economic conditions.
7) The Board of Directors in its meeting dated 06th November 2020 appointed Mr. Sanjiv Joshi as the new Managing Director of the Company w.e.f. 07th November 2020 for a term of five years which is subject to approval of the shareholders in the ensuing Annual General Meeting of the Company and remuneration paid to the new Managing Director during the quarter has been recognised as Employee Benefit Expenses.
8) The Code on Social Security, 2020 (“Code”) relating to employee benefits during the employment and post-employment benefits has been published in the Gazette of India on 28th September, 2020. The Ministry of Labour and Employment has released draft rules for the Code on 13th November, 2020. The effective date from which these changes are applicable is yet to be notified. The Company will assess and record the impact, if any, when the rules are notified and the Code becomes effective.
9) In F.Y. 2018-19 the Company had decided to sell a part of Land and Building out of the total factory land and building located at Surat which has been disclosed as Non Current Asset Held for Sale. During the year ended 31st March 2021, on remeasurement, the Company has evaluated the current position and has concluded that the carrying value of the "asset held for sale" is lower than the fair value of the asset, hence no impairment to the carrying amount has been made. The Company expects the sale of the "asset held for sale" to be completed in near future.
10) Following are the details of standalone gross sales values of business handled including the values pertaining to agency business handled for which Company earns commission :