Lodha Developers 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
1. The above Audited Consolidated financial results for the quarter and year ended 31-March-21 have been reviewed by the Audit Committee and approved by the Board of Directors ( the Board') on 14-May-2021. The statutory auditors of the Company have expressed an unmodified opinion on the audited consolidated financial results for the year ended 31-March-21
2. Subsequent to Balance Sheet date, the Company has completed the Initial Public Offering (IPO) of its equity shares comprising a fresh issue of 5,14,40,328 equity shares having a face value of Rs. 10 each at premium of Rs. 476 per share aggregating Rs. 2,50,000 lakhs. Pursuant to the IPO, the equity shares of the Company are listed on BSE Limited and National Stock Exchange of India Limited with effect from 19-April-21.
3. The outbreak of corona virus (COVID-19} pandemic globally and in India is causing disturbance and slowdown of economic activity. Due to lockdown announced by the Government, the Group operations were slowed down in compliance with applicable regulatory orders. The operations and economic activities have gradually resumed with requisite precautions. The Group continues to monitor the situation and take appropriate action, as considered necessary in due compliance with the applicable regulations. The management has used the principles of prudence in applying judgments, estimates and assumptions based on the current conditions. In assessing the liquidity position and recoverability of assets such as Goodwill, Inventories, Financial assets and Other assets, based on current indicators of future economic conditions, the Group expects to recover the carrying amounts of its assets. However, the actual impact of COV1D-19 pandemic on the Group's future operations remain uncertain and dependant on spread of COVID-19 and steps taken by the Government to mitigate the economic impact and may differ from the estimates as at the date of approval of these consolidated financial results. The Group is closely monitoring the impact of COVID- 19 on its financial condition, liquidity, operations, suppliers and workforce.
4. The Group is mainly engaged in the business of real estate development, which is considered to be the only reportable segment by the management.
5. The Group had given loan to LD UK and its subsidiaries from time to time for its UK business operations. During the year, the Group has made provision of Rs. 46,000 lakhs against the said loans taking into account impact of COV1D-19 on UK project which has led to delays in completion with additional cost. This has been disclosed under "Exceptional Item".
6. Pursuant to amendment to Section 32 of the Income Tax Act, 1961 introduced by the Finance Act, 2021, depreciation on Goodwill of a business will not be allowed as a deductible expenditure effective 01-April-20. Consequently, in accordance with the requirements of Ind A5 12 "Income Taxes", the Group has recognised one time additional deferred tax liability of Rs. 10,097.46 lakh and charged to statement of profit and loss as deferred tax expense being the difference between the book base and tax base of NIL of Goodwill.
7. The figures for the quarter ended 31-March-2021 and 3I-March-2020 represents the balancing figures between the audited figures in respect of the full financial year and the unpublished audited figures for the nine months period ended 31-Dec-2020 and 31-Dec-2019 respectively prepared as per Ind AS 34 "Interim Financial Reporting" for the purpose of IPO. The figures for the quarter ended 31-Dec-2020 represents the balancing figures between the unpublished audited figures for the nine months period ended 31-Dec-2020 as aforesaid and the period -to-date figures up to six months ended 30-Sep-2020 prepared by the management, which has not been subjected to review or audit by the statutory auditors.