Artefact Projects Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2020
Auditor and Management Disclosures and Notes for the annual results dated 31 Mar 2020
1. The above results for Quarter ending 31st March 2020 i.e., Q4 and year ending 31st March, 2020 have been reviewed by the A 'I Committee and approved & taken on record by the Board of Directors at its meeting held on 29th of July, 2020. The statutory auditors have expressed an unmodified audit opinion on these results.
2. The above financial results have been prepared in accordance with Indian Accounting Standard (IND-AS) 34 - Interim Financial Reporting as prescribed under section 133 of the Companies Act,2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India.
3. The company has considered certain over dues and outstanding Trade Receivables from the Government clients in respect of completed Contracts, amounting to Rs. 639.48 Lacs outstanding at year end and the management as matter of prudent accounting policy and expected delays in its recovery, has written off Rs 429.22 Lacs during the quarter and year ended 31st March 2020. However, any recoveries received in subsequent years out of the claims submitted therefor shall be accounte for in the year of its receipts.
4. Service Tax and Interest Provisions made in previous years written back post acceptance of determination of liability and remissions under SVLDRS scheme.
5. The company has made investment of Rs.13.02 crores (Including cumulative interest accrued thereon), in Unquoted fully compulsory convertible debentures as at reporting date. The management does not deem necessary to make any provision for impairment of expected Losses, if any, in accordance with lnd-As-109 "Financial Instruments". Such investments in mining companies are long term and strategic in nature, have large value of explored mining reserves and based on the expected cash flows in the said companies , registered external valuers have, valued the shares of the said companies above par value and are considered good and fully recoverable. Hence no provision for impairment in value of investment is required.
6. Regarding investment of Rs. 90 Lacs standing in equity shares of associate company, the company has earned profits and has positive net worth as per audited balance sheet for the year ending 31/3/2019 and there is no diminution in the value of investment and hence no provision for impairment loss is required.
7. Effective 1st April, 2019, the company has adopted Ind AS 116 "Leases" using the modified retrospective method. The Company has applied the standard to its leases with the cumulative impact recognized on the date of initial application (1st' April, 2019), Accordingly, previous period information has not been restated as permitted by the standard.
On 1st April, 2019, the company has recognized a lease liability measured at the present value of the remaining lease payments amounting to Rs 38.22 Lacs and right-of-use (ROU) asset of Rs 35.92 Lacs. The Company has elected not to apply the requirements of Ind AS 116 to short-term leases and certain leases for which the underlying asset is of low value. In the statement of profit and loss for the current period, operating lease expenses which were recognized as rent in previous periods is now recognised as depreciation expense for the right-of-use asset and finance cost for imputed interest accrued on lease liability. The adoption of this standard did not have any significant impact on the profit for the quarter and year ended -31st March 2020 and earnings per share.
8. The company has sold a part of its fixed assets being Block No.107 , in Artefact Towers building at consideration of Rs.425 Lacs on 9th October 2019 utilized it for repayment of Term loan of the Company . Correspondingly, decrease in net block of asset by Rs. 350 Lacs and Profit on sale of asset of Rs.75 Lacs has been accounted for in current quarter.
9. Income Tax provision for year ended 31st March 2020 to the extent available under Section 115JB shall be adjusted against MAT Credit Entitlement of Rs. 117 Lacs.
10. The ongoing Covid- 19 pandemic situation has not affected company’s business in any material adverse manner or impacted its operations, since the company is executing long term Government contracts of services in the essential core sector of Highways development, and there is no discontinuity in execution of the same .
11. The company is engaged only in the business of "Project Consultancy" and therefore, has only one Reportable Segment in accordance with IND-AS 108 "Operating Segments".
12. The figures for the corresponding previous periods/year have been restated /regrouped wherever necessary, to make them comparable.