Artson Engineering 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 Unaudited Financial Results for the quarter and nine months ended 31 December 2018 have been reviewed by the Audit Committee and approved by the Board of Directors at their meetings held on 1 February 2019 and the same have been subjected to a Limited Review by the Statutory Auditors in compliance with regulation 33 of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015. The Statutory Auditors have issued an unqualified review report.
2)The Company operates in only one business segment viz. Supply of Steel Structures and Site Services for Mechanical Works.
3)Revenue of the corresponding previous year nine months ended 31 December 2017 included a portion of revenue (from 01 April 2017 to 30 June 2017) which was reported inclusive of Excise Duty. The Government of India has implemented Goods and Services Tax (GST) effective from 01 July 2017 replacing excise duty, service tax and other indirect taxes. Accordingly, as per IND AS, Revenue for the year ended 31 March 2018 and quarters ended 30 September 2018 and 31 December 2018 are reported net of GST.
4)Effective 01 April 2018, the Company has applied Ind AS 115 which establishes a comprehensive framework for determining whether, how much and when revenue is to be recognised. The Company has adopted Ind AS 115 using the modified retrospective approach. The effect of initially applying this standard is recognised at the date of initial application (i.e. 01 April 2018). The standard is applied only to contracts that are not completed as at the date of initial application and the comparative information in the unaudited financial results is not restated – i.e. the comparative information continues to be reported under Ind AS 18 and Ind AS 11. The adoption of the standard
(a) has resulted in an increase of Rs. 94.47 Lakhs (net of taxes) in the opening retained earnings as on 01 April 2018.
(b) has resulted in an decrease in the Revenue from operations for the quarter ended 31 December 2018 by Rs. 403.71 Lakhs and increase in the Revenue from operations for the nine months ended 31 December 2018 Rs. 570.31 Lakhs.
The impact is mainly on account of the change in the Percentage of Completion method under Ind AS 115 when compared to the erstwhile revenue standard Ind AS 11.
Had the company not applied Ind AS 115, the Company's Earnings per Share for the quarter and nine months ended 31 December 2018 would have been Rs. 0.81 per share and Rs. (2.48) per share respectively.
5)Provision of current tax is not made in lieu of carry forward losses. The Company has been advised that since it continues to have negative net worth for computation of income tax, in line with erstwhile BIFR order dt. 20.06.2013, provision in respect of MAT u/s 115JB of Income tax Act, 1961 is not applicable and hence the same is not provided.
6)The figures of the previous periods have been regrouped / reclassified wherever necessary.