Black Box Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2017
Auditor and Management Disclosures and Notes for the annual results dated 31 Mar 2017
1. The above results have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on 24 May 2017. These results have been prepared on the basis of the audited standalone financial statements for the year ended 31 March 2017.
2. The figures of the last quarter are the balancing figures between the audited figures in respect of the full financial years and the unaudited published year-to-date figures up to the third quarter of the current and previous financial year.
3. The Company operates in one business segment i.e., Enterprise Communication Solutions and Integration, which is considered as the primary reporting segment.
4. During the quarter ended 30 June 2016, the management based on an internal technical evaluation reassessed the remaining useful lives of certain plant and equipment with effect from 1 April 2016. Accordingly the useful lives of such plant and equipment have been revised from 3 - 5 years to 15 years.
Had the company continued with the previously assessed useful lives, depreciation expense for the quarter and year ended 31 March 2017 would have been higher by Rs. 0.53 Crore and Rs. 2.15 Crore respectively. Further the revision of the useful lives will result in the following changes in the depreciation expense as compared to depreciation expense based on earlier useful lives.
5. During the year ended 31 March 2015, the Company entered into deeds of assignment to transfer ail the rights, title and obligations of its land and building situated at Gandhinagar to another company for a consideration of Rs. 50.52 Crores. During April 2015, the lender to whom these assets were provided as security provided its in principal approval for the said transfer subject to fulfilment of conditions stated therein. The said transfer was pending approval from the relevant government authority and transfer of legal title that were considered to be procedural in nature. Accordingly the Company had recognized profit on sale of Fixed Assets of Rs. 46.04 Crores (net of incidental expenses Rs. 3.39 Crores) during the year ended 31 March 2015. During the previous year ended 31 March 2016, the Company received approval from the lender for sale of one of the property sold for consideration of Rs. 5.89 crores and also realized part consideration of Rs. 3.20 crores from the buyer. During April 2016, approval from the requisite authorities have also been received and sale deed has been executed between the Company and the buyer for transfer of legal title for one of the property. The Company has also obtained the requisite approvals for the other property and subsequent to year ended 31 March 2017 has realized further consideration of Rs. 13.50 Crores. The sale deed for the other property will be executed on simultaneous settlement of balance consideration by the buyer.
6. New entity AGC Networks LLC has been incorporated on 13 February 2017 at Dubai which is 100% subsidiary of AGC Networks Pte Limited, Singapore.
7. Exceptional Items: i) For the year ended 31 March 2017 represents liability towards rent pertaining to earlier years, reversed on account of settlement with the lessor.
ii) For the year ended 31 March 2016 represents interest income recognised on sale consideration receivable from the buyer towards assignment of properties situated at Gandhinagar.
8. At the meeting of Board of Directors of the Company held on 29 April 2017, it was resolved to approve and pay interim dividend of Re. 1/- per preference share having nominal value of Rs. 100 each at their coupon rate.
9. Previous period figures have been re-grouped and reclassified, wherever necessary, to correspond to those of the current period.