EPL Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2020

Notes:-



1.The above audited standalone financial results, prepared in accordance with the Indian Accounting Standards (Ind AS), the provisions of the Companies Act, 2013 and guidelines issued by the Securities and Exchange Board of India, have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on 22 May 2020.



2. Figures for the quarter ended 31 March are the balancing figures between the audited figures in respect of full financial year and the published year-to-date figures upto the third quarter of the relevant financial year, which were subjected to limited review.



3. The Board of Directors at its meeting held on 22 May 2020 has recommended a dividend of Rs. 2.05 per equity share of Rs. 2 each fully paid up, subject to approval of shareholders.



4. Other Income for the quarter and year ended 31 March 2020 includes:

a) Dividend Income of Rs. 2,631 Lakhs for the quarter and Rs. 6,635 Lakhs for the year received from its wholly owned subsidiaries.

b) Gain on redemption of preference shares held in its subsidiary of Rs. 557 Lakhs.



5."Exceptional items for the year ended 31 March 2020 include

(a) Rs.1,091 Lakhs being gain on sale of land and building of one of its factory recognised during the year and

(b) Rs. 2,030 Lakhs being write off of credit impaired loan given (including interest) on the basis of impairment assessment carried out by Management during the year."



6. Pursuant to the Share Purchase Agreement dated 22 April 2019 executed between Ashok Goel Trust ("the Seller") and Epsilon Bidco Pte Ltd ("the Acquirer"), the Acquirer has acquired 48.98% equity shares in the Company from Ashok Goel Trust on completion date i.e. 22 August 2019. The Acquirer has also acquired 26% equity shares from the public shareholders pursuant to the Open Offer as per SEBI Takeover Regulation. As a result of the said acquisition, the Acquirer became promoter and the holding entity of the Company. The Acquirer is managed by Blackstone Group, one of the world’s leading investment firms.



7. During the quarter ended 30 September 2019, the Company elected to exercise the option permitted under section 115BAA of the Income-tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019. Accordingly, the Company has recognized provision for income tax for the year ended 31 March 2020 and re-measured its net deferred tax liabilities basis the rate prescribed in the said section. The impact of this benefit is recognized in the statement of Profit and Loss over the period from 01 July 2019 to 31 March 2020.



8. The Company has adopted Ind AS 116 effective 1 April 2019 and applied the standard to lease contracts existing on the date of initial application i.e 01 April 2019. The Company has used the modified retrospective approach for transitioning to Ind AS 116 with Right-of-Use Asset recognised at an amount equal to the Lease Liability adjusted for any prepayments / accruals recognised immediately in the balance sheet before the date of initial application. Accordingly, comparatives for the previous periods presented above have not been restated. The adoption of this standard did not have any material impact on the profit for the year ended 31 March 2020.



9. During the year, Credit Analysis & Research Limited (CARE) has reaffirmed the credit rating assigned to the Company for long term facilities at CARE AA and short term debt facilities at CARE A1+. India Ratings and Research (A Fitch group company) has also reaffirmed long term issuer rating at IND AA and rating of commercial paper at IND A1+.



10. The Company has evaluated events and transactions for potential recognition or disclosure post balance sheet date. The World Health Organization has also declared the outbreak of COVID-19, a novel strain of Coronavirus, a pandemic. The coronavirus outbreak is disrupting supply chains and affecting production and sales across a range of industries. The extent of the impact of the outbreak on the Company’s operational and financial performance will depend on certain developments, including the duration and spread of the outbreak. The Company is monitoring the developments and are taking necessary measures to mitigate the impact on the Company, if any.



11. The Company has listed redeemable non-convertible debentures of Rs 5,000 Lakhs outstanding as at 31 March 2020 issued on 21 December 2017. These debentures are unsecured with interest payable annually on 21 December of each year and are redeemable at the end of three years.



12. The Company has only one major identifiable business segment viz. Plastic Packaging Material.



13.Figures of the previous periods have been regrouped / rearranged wherever considered necessary.