Span Divergent 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
Note : -
1 Figures for the quarter ended March 31, 2021 and March 31, 2020 are the balancing figures between the audited figures in respect of the full financial year and the reviewed figures upto the third quarter of the relevant financial year.
2 Statement of Assets and Liabilities as on March 31, 2021 is given below:
Particulars Standalone
31 March 2021 31 March 2020
Non-current assets
Property, plant and equipment 398.04 434.05
Right-of-use-assets 35.97 45.15
Investment properties 48.53 67.83
Other intangible assets 4.57 5.45
Intangible assets under development 1.76 1.76
Financial assets -
i. Investments Non-current assets 3,345.14 2,995.15
ii. Others 32.00 32.00
Total non-current assets 3,866.01 3,581.39
Current assets
Financial assets
i. Investments Current assets 943.17 1,007.31
ii. Trade receivables Current assets 12.46 23.00
iii.Cash and cash equivalents 12.72 3.16
iv.Bank balances other than (iii) above - 0.84
v. Others Current assets 21.65 33.64
Current tax Assets (Net) 41.37 34.92
Other current assets 24.74 29.43
Assets classified as held for sale 62.80 226.96
Total current assets 1,118.92 1,359.26
TOTAL 4,984.92 4,940.65
EQUITY AND LIABILITIES
Equity
Equity share capital/Partners capital 546.17 546.17
Other equity 3,826.57 3,825.98
Total equity 4,372.73 4,372.15
LIABILITIES
Non-current liabilities
Financial Liabilities
i. Borrowings Non-current liabilities 276.00 148.72
ii. Lease Liabilities 30.82 37.92
Provisions Non-current liabilities 26.66 25.75
Deferred tax liabilities (Net) 35.55 32.78
Total non-current liabilities 369.03 245.17
Current liabilities
Financial liabilities
i. Borrowings Current liabilities - 93.07
ii. Lease liabilities 7.13 7.16
iii. Trade payables Current liabilities 20.20 -
iv. Other financial liabilities Current liabilities 103.65 68.12
Other current liabilities 87.95 117.81
Provisions Current liabilities 24.22 24.47
Total current liabilities 243.16 323.32
TOTAL 4,984.92 4,940.65
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3 The above results have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on June 11, 2021.
4 Other Operating Income comprises of Interest on fluctuating capital provided by the Company to its LLP subsidiaries and management fees income which is based on the revenue earned by subsidiaries during the period.
5 In case of subsidiary:
(a) Aranya Agri Biotech LLP had accumulated losses of Rs.10.74 Crores till March 31 2020 and Rs. 1.95 crore in the current year up to March 31, 2021. Hence the Management has decided to impair the investment and Rs.1.96 Crores are provided in the books of the Company and are treated as an exceptional item during the year. Notwithstanding the above, the financial results of the LLP have been prepared on going concern basis as Management has initiated exercise to reorganize business structure which may help the Company to establish profitable operation.
(b) Biospan Scientific LLP had accumulated losses of Rs.1.57 Crores as at 31st March 2019, resulting in substantial erosion in the net worth of the LLP. Hence the Management had decided to impair the investment and Rs. 1.83 Crores were provided in the books of the Company and was treated as an exceptional item during the year 2018-19. Notwithstanding the above, the financial results of the LLP has been prepared on going concern basis as Management is exploring the possibilities to revive the LLP on its own or by entering in to business tie-ups and it endeavours to be able to establish profitable operation.
(c) Biospan Contamination Control Solution Pvt. Ltd had accumulated losses of Rs.2.95 Crores till March 31, 2021. As on that date the subsidiary Company's total liabilities exceeded its total assets by Rs. 3.44 Crores. Notwithstanding the above, the financial results of the subsidiary Company has been prepared on going concern basis as Management believes that the Company would be able to establish profitable operation and the losses incurred is attributed to factors of temporary nature. Further, Management is reasonably confident that with appropriate product license, the Company will achieve adequate revenue and negative net worth would turn positive by 2023.
6 In pursuance to Section 115BAA of the Income Tax Act, 1961 announced by Government of India through Taxation Laws (Amendment) Ordinance, 2019, the Company has an irrevocable option of shifting to a lower tax rate along with consequent reduction in certain tax incentives including additional depreciation and accumulated depreciation in any subsequent year(s). The Company is evaluating this option and continues to recognise the taxes on income for the quarter and year ended 31st March 2021 as per the earlier provisions.
7 CoVID-19 pandemic is an unprecedented health situation in the world, which has swept almost all the countries across the globe under its effect. Span Divergent Limited (SDL) is a Holding Company and it has its investments in various businesses run by the subsidiary Companies/LLPs. During "Covid Related Restriction" period, corporate office Staff worked as per "Local Guidelines" and related policy. The Corporate office of the Company operated with minimum staff as per the approvals/clearances from the Government of Gujarat. The Company is complying with all the requirements related to Social Distancing, mandatory to wear face mask and have proper sanitizations frequently.
Supply Chain/Liquidity Position and Ability to service debt: Covid-19 pandemic has halted the operations worldwide and there might be supply disruptions, if the pandemic is further prolonged. All entities under the group are likely to continue to face interruptions in business with high degree of liquidity crunch and mounting of losses and foresee difficulties in servicing debts. However, recently announced stimulus package by government, and its implementation along with some relaxation by RBI in credit policy has helped the Holding Company and its subsidiary Companies' businesses in mitigating unsurmountable difficulties.
Internal Financial Controls: The controls are in place and the business processes are carried out normally throughout the pandemic time. During the lock down period or restriction on operations, businesses were transacted as per Internal Financial Controls and authority matrix placed in the system.
The company is constantly assessing the future impact of CoVID-19 on other aspects, operations, profitability, liquidity position, demand for its products/service and it will keep updating on these issues.
8 A brief note about CoVID-19 effect on business of each subsidiary entity had been filed with the Stock Exchange in due course of time.
Previous periods figures have been regrouped and rearranged wherever necessary.