NACL Industries Ltd. - Quarterly/Annual Result Disclosures and Notes dated 30 Sep 2020
Auditor and Management Disclosures and Notes for the quarterly results dated 30 Sep 2020
1. The above Unaudited standalone and consolidated unaudited financial results of NACL Industries Limited ("the Company") as reviewed by the Audit Committee has been approved by the Board of Directors at its meeting held on November 03, 2020. The Statutory Auditors have carried out a limited review of these Financial Results for the Quarter and Half Year Ended September 30, 2020 and have issued an unmodified report on these results.
2. The Standalone and Consolidated Financial results of the Company have been prepared in accordance with the Indian Accounting Standards ('Ind AS1) prescribed under Section 133 of the Companies Act, 2013 (“the Act ) read with relevant rules issued thereunder, other accounting principles generally accepted in India and guidelines issued by the Securities and Exchange Board of India (“SEBI”).
3. The Company is primarily engaged in the Farm Inputs Business, which in the context of Ind AS 108 "Operating Segments" is considered the only significant business segment.
4. The Company's Business is seasonal in nature and the performance can be impacted by weather conditions.
5. The Company has incorporated NACL Spec-Chem Limited and NACL Multichem Private Limited, as Wholly Owned Subsidiary Companies on April 27, 2020 and May 18, 2020 respectively. The Company subscribed share capital Rs. 200 lakhs (comprising 2,00,00,000 number of equity shares of Rs. 1 each) of NACL Spec-chem Limited during the Half Year ended September 30, 2020.
6. The Consolidated Financial Results include the results of the following:
i) Parent:
a) NACL Industries Limited, India
ii) Wholly Owned Subsidiaries:
a) LR Research Laboratories Private Limited, India
b) Nagarjuna Agrichem (Australia) Pty Limited, Australia
c) NACL Spec-Chem Limited, India
iii) Associate:
a) Nasense Labs Private Limited, India
7. In March, 2020, COVID-19, an infectious disease caused by the recently discovered Coronavirus, SARS-CoV-2, was declared a pandemic by the World Health Organization. On March 24, 2020, the Indian Government announced a strict 21-day lockdown which was further extended across the country to contain the spread of virus. However, Government of India deemed agriculture related sectors including Pesticides as essential and permitted operations m a limited way, based on which the Company resumed activities in its production facilities. The Company adopted number of measures to protect the health of its employees while ensuring business continuity with minimal disruption. In assessing the recoverability of receivables, inventory and other financial assets, the Company has considered internal and external information up to the date of approval of these standalone and consolidated financial results. The impact of the global health pandemic may be different from that of estimates as at the date of approval of these standalone and consolidated financial results and the Company will continue to monitor closely any material changes in the emerging economic conditions.
8. The Board of Directors in their meeting held on November 04, 2020 approved an interim dividend of Rs. 0.10 per equity share of Rs. 1 each.