Dynamatic Technologies Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2018

1. The above statement of standalone financial results (‘the Statement’) of Dynamatic Technologies Limited (‘the Company’) are prepared in accordance with applicable accounting standards i.e. Ind AS prescribed under Section 133 of the Companies Act, 2013 read with relevant rules thereunder and in terms of Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

2. The Statement of the Company for the quarter and year ended 31 March 2018 has been reviewed by the Audit Committee and thereafter approved by the Board of Directors in their meeting held on 29 May 2018. The figures for the year ended 31 March 2018 has been audited by the Statutory Auditors of the Company. The report of the Statutory Auditors is unqualified. The audit report of the Statutory Auditors is being filed with the Bombay Stock Exchange (“BSE”) and the National Stock Exchange (“NSE”) and is also available on the Company’s website at www.dynamatics.com.

3. The figures for the quarter ended 31 March 2018 are the balancing figures between the audited figures in respect of the full financial year and the published year to date figures upto the end of the third quarter of the current financial year which were subject to limited review by the Statutory Auditors of the Company.

4. Consequent to the introduction of Goods and Service Tax (“GST”) with effect from 1 July 2017, Central Excise, Value Added Tax (“VAT”), etc have been subsumed into GST. In accordance with Indian Accounting Standard -18 on Revenue and Schedule III of the Companies Act, 2013 unlike Excise duties, levies like GST, VAT, etc are not part of revenue. Accordingly, the figures for the periods upto 30 June 2017 are not strictly relatable to those thereafter. The following additional information is being provided to facilitate such an understanding:

(Rs. in lacs)

Particulars Quarter ended Year ended

31 March 2018 31 March 2018 31 March 2017

Revenue from operations (A) 16,105 56,895 53,143

Excise duty (B) - (642) (2,640)

Revenue from operations (net of excise duty) (A-B) 16,105 56,253 50,503


5. These financial results have been prepared in accordance with Indian Accounting Standards (“Ind AS”) prescribed under Section 133 of the Companies Act, 2013 read with the relevant rules issued thereunder and in terms of SEBI Regulations and SEBI Circular dated 5 July 2016. Consequently, results for the year ended 31 March 2017 have been restated to comply with Ind AS to make them comparable and is subject to audit by the Statutory Auditors of the Company. The Company has opted to avail the relaxation provided by SEBI in respect of disclosure requirement for previous and corresponding quarter. Accordingly, the figures for the quarter ended 31 December 2017 and quarter ended 31 March 2017 have not been presented.

Up to the year ended 31 March 2017, the Company had prepared its financials in accordance with the requirement of Indian GAAP (previous GAAP), which includes standards notified under the Companies (Accounting Standards) Rules, 2006. The date of transition to Ind AS is 1 April 2016. The accounting policies have been applied consistently to all periods presented in these standalone financial results.

The net profit reconciliation for the year ended 31 March 2017 under the previously applicable Generally Accepted Accounting Principles (‘previous GAAP’) with the total comprehensive income as reported in these financials results under Ind AS is presented below:
(Rs. in lacs)

Particulars Year ended

31 March 2017

Profit after tax (“PAT”) as per previous GAAP 759

Re-measurement of defined benefit plans 30

Impact on account of depreciation/ amortisation due to fair valuation of property, plant and equipment and intangible assets and decommissioning liability 298

Expected credit loss allowance (18)

Impact on account of rent equalization 21

Impact on account of Foreign Currency Monetary Item Translation Difference Account (“FCMITDA”) 110

Financial guarantee commission income 336

Effective interest rate method impact on borrowings (63)

Other adjustments (43)

Tax impact of Ind AS adjustments 102

PAT as per Ind AS [A] 1,532



Other comprehensive income (“OCI”)

Re-measurement of defined benefit plans, net of tax (20)

Other comprehensive income for the year, net of taxes [B] (20)



Total comprehensive income [A+B] 1,512


6. Reconciliation between equity reported under Previous Indian GAAP and Ind AS as at 31 March 2017, for standalone financial results, presented are as under:

(Rs. in lacs)

Particulars As at

31 March 2017

Total equity under previous Indian GAAP 28,788

Amortisation of finance cost under effective interest method (211)

Financial guarantee commission income 687

Fair valuation and depreciation impact of property, plant and equipment and intangible assets and decommissioning liability 4,778

Fair valuation impact of Investment 21,423

Expected credit loss allowance (2,495)

Other adjustments 8

Tax impact of Ind AS adjustments (4,627)

Equity under Ind AS 48,351

7. Pursuant to the provisions of the SEBI (Listing obligations and Disclosure Requirements) Regulations, 2015, the Management has decided to publish audited consolidated financial results in the newspapers. However, the audited standalone financial results of the Company will be made available on the Company’s website www.dynamatics.com and also on the website of BSE (www.bseindia.com) and NSE (www.nseindia.com).

8. Based on the "management approach" as defined in Ind AS 108 - Operating Segments, the Chief Operating Decision Maker evaluates the Company performance and allocates resources based on an analysis of various performance indicators by business segments. Accordingly, information has been presented along with these business segments viz., Hydraulics, Automotive and Aluminium Castings, Aerospace and Defence and Others. The accounting principles used in the preparation of these financial results are consistently applied to record revenue and expenditure in individual segments.

9. Exceptional item for the year ended 31 March 2017 aggregating to Rest. 314 lacs represents various expenses such as prepayment charges and other ancilliary charges incurred by the Company towards prepayment of loan funds to the banks and financial institutions.

10. During the year ended 31 March 2018, the Board of Directors of the Company vide its meeting dated 28 February 2018 has approved the plan for the future of Auto divisions of the Company and has directed the management to execute the following plan:

Divestment of the following assets along with business:

o JKM-Auto division situated at Irrangattukottai, Sriperumbudur, Tamil Nadu;

o Aluminium Foundry division situated at Irrangattukottai, Sriperumbudur, Tamil Nadu;

o Wind farm property situated at Coimbatore, Tamil Nadu

Subsequent to the year end, the Company has intimated the stock exchanges vide letter dated 16 May 2018 that based on the voting results casted through postal ballot and scrutiny report dated 15 May 2018 the resolution has been approved by the shareholders with more than requisite majority.

With respect to divestment as mentioned above, JKM Auto division and Aluminium Foundry division represents “Automotive and Aluminium Castings” segment which is presented in Annexure IV of this Statement.