DIC India Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2019
Auditor and Management Disclosures and Notes for the annual results dated 31 Dec 2019
1. The above financial results for the quarter and year ended December 31, 2019 has been duly reviewed by the Audit Committee, were taken on record by the Board of Directors at its meeting held on February 12, 2020.
2. The above Financial results are extracted from the Audited Financial Statements, which are prepared in accordance with Indian Accounting Standards (Ind As) as prescribed under section 133 of the Companies Act, 2013 read with relevant rules issued thereunder.
3. Effective January 01, 2019, the Company adopted Ind AS 115 "revenue from Contracts with Customers. There is no material impact on adoption of Ind AS 115.
4. The Company had entered into a Memorandum of understanding (MOU) cum agreement including a related addendum thereto, to sell its freehold land at Mumbai which was previously used for the Company's Link operations. As at December 31, 2018, the Company had received as per MOU , an advance of Rs. 5,740. 00 lakhs from the buyer. The above MOU and addendum thereto, have ben amicably terminated as per the settlement agreement dated October 08, 2019. On termination, the Company has paid Rs. 4,350.00 lakhs to the buyer as per the settlement agreement. Further, interest accrued till December 31, 2018 amounting to Rs. 704.65 lakhs, interest accrued for the period January 01, 2019 to June 30, 2019 amounting to Rs. 744.70 lakhs and other settlement cost arising out the Settlement agreement have been adjusted against the advance received from the buyer.
Pursuant to termination, amount of Rs.2,025.08 lakhs paid to Reserve Bank of India towards requisite approval for transfer / sale of land under the Urban Land (Celling and Regulations) Act, 1976 has been added to the cost of land classified as held for sale. The Company continues to be the exclusive owner and holds possession of land and will continue to evaluate other offers.
No impairment loss was recognised on land held for sale as at December 31, 2019 as the Company expects its fair value less costs to sell to be higher than the carring amount.
5. The figures for the Quarter ended December 31, 2019 & December 31, 2018 are the balancing figures between audited figures in respect of the full financial year ended December 31, 2019 & December 31, 2018 respectively & the unaudited published year to date figures up to September 30, 2019 and September 30, 2018 respectively, being the end third quarter of the respective financial years, which were subjected to a limited review.
8. The Company has chosen to exercise the option of lower tax rate of 25.17% (inclusive of Surcharge & Cess) under section 115 BBA of the Income Tax Act, 1961 as introduces by the Taxation Laws ( Amendment) Ordinance 2019. The impact of this change is included in the tax expense for the quarter end year ended December 31, 2019.
Further the Company is of view that is a probable that sufficient taxable income will available, against which deductible temporary difference can be utilised. Accordingly, deferred tax assets amounting to Rs. 729.33 lakhs has been created in books of account, as required under IND AS -12 Income Taxes
7. The board of directors in their meeting dated February 12, 2020, have proposed a divided of Rs. 413.05 lakhs ( Rs. 4.50 per equity shares) for the year 2019. The equity dividend is subject to an approval by the shareholders at the ensuring annual general meeting and therefore it has not been included as liability as at balance sheet date in accordance with IND-AS 10 on 'Events after the Reporting priod.
8. Figures for the previous periods have been regrouped/rearranged wherever necessary to conform to current period's classification.