AIA Engineering Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2021
Auditor and Management Disclosures and Notes for the annual results dated 31 Mar 2021
Notes:
(i) The above audited standalone financial results for the quarter and year ended 31 March 2021 have been reviewed by the Audit Committee and subsequently approved by the Board of Directors in their respective meetings held on 25 May 2021. The statutory auditors have expressed an unmodified opinion.
(ii) The audited standalone financial results are prepared in accordance with the Indian Accounting Standards 34 "Interim Financial Reporting" as prescribed under Section 133 of the Companies Act, 2013, read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) (Amendment Rules), 2016.
(iii) Board of Directors recommends Dividend of Rs. 9/- (450%) per Equity Share of Rs. 2/- each amounting to Rs. 8,488.83 lakhs for the year 2020-21.
(iv) The Company had decided to exercise the option permitted under Section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019 from the previous financial year. Accordingly, the provision for income tax and deferred tax balances have been recorded/remeasured using the new tax rate and the resultant impact is recognised during previous financial year. Pursuant to the selection of this option, the Company had reversed deferred tax liabilities amounting to Rs. 2,066.17 lakhs due to reduction in corporate tax rate during the year ended 31 March 2020.
(v) The Canada Border Service Agency (CBSA) had initiated investigations with respect to alleged dumping and subsidizing of certain grinding media from India based on complaint filed by Magotteaux Limitee, located in Magog Quebec. CBSA is carrying out its review of submissions made by the company and the final determination on the matter is expected by July 2021. The applicable rules and regulations enable CBSA to levy an interim duty while the matter continues to be under investigation. Accordingly, CBSA has imposed interim duty of 32.2% duty on certain grades of grinding media exported from India into Canada with effect from 1 May 2021. This duty will be applicable till the final determination is done which as explained above is expected to be concluded by July 2021.
(vi) The Code on Social Security, 2020 (‘Code’) relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.
(vii) The Company has considered the possible effects that may result from the pandemic relating to COVID-19 in the preparation of these standalone financial statements including the recoverability of carrying amounts of financial and non- financial assets. In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of this pandemic, the Company has, at the date of approval of these standalone financial statements, used internal and external sources of information and expects that the carrying amount of these assets will be recovered. Having reviewed the underlying information, management believes the impact of the pandemic may not be significant. The actual outcome of these assumptions and estimates may vary in future due to the impact of the pandemic.
(viii) The Company has only one reportable primary business segment as per IND AS 108 - "Operating Segments", i.e., Manufacturing of High Chrome Mill Internals.
(ix) Figures of the quarter ended 31 March 2021 and 31 March 2020 are the balancing figures between audited figures in respect of the full financial year and year to date figures up to the third quarter of the relevant financial year. Also the figures up to the end of third quarter had only been reviewed and not subject to audit.
(x) Refer Annexure-I for standalone statement of assets and liabilities.
(xi) Refer Annexure-II for standalone statement of cash flows.
(xii) Figures for the previous period have been regrouped, reclassified and restated wherever necessary to make them comparable with the current period's figures.
During the quarter December 2020 the management had reclassified certain items of 'stores, spares and consumables' as 'raw materials’. Accordingly, the following amounts from the comparative periods have been regrouped/reclassified to make them comparable with current period’s figures.
Quarter ended Year ended
30-Mar-21 31-Dec-20 31-Mar-20 31-Mar-21 31-Mar-20
Audited Unaudited Audited Audited Audited
Increase in raw material consumption / cost of
material consumed 1,279.88 1,319.63 852.08 4,756.60 4,753.16
Decrease in stores, spares
and consumable consumption
/ other expenses 1,279.88 1,319.63 852.08 4,756.60 4,753.16