Alchemist Ltd. - Quarterly/Annual Result Disclosures and Notes dated 30 Jun 2018
Auditor and Management Disclosures and Notes for the quarterly results dated 30 Jun 2018
1.The above standalone financial results, as reviewed by Audit Committee, were approved and taken on record by the Board of Directors in their meeting held on 9th August, 2018. The Statutory Auditors have expressed modified opinion on these results.
2. The figures for the quarter ended 31st March, 2018 are the balancing figure of the year ended 31st March, 2018 and published financial results of nine months ended 31st December, 2017.
3. The figures for the previous period have been regrouped/reclassified, whereever necessary to confirm to the current period's presentation.
4. The company extends credit from time to time as per market practices. In respect of export receivables amounting to Rs. 48964.14 lakhs, credit was extended for export sales in the normal course of the business, however it apparently got stuck. The Company has initiated legal recourse against the defaulting customers and is regularly following up on the same. The management is confident of recovering all such dues and hence no provision is considered necessary against these receivables.
5. The accumulated losses of the Company had exceeded its net worth. The company’s operations were adversely affected in earlier financial years due to sluggish market demand, working capital getting stuck in trade receivables and loss making manufacturing activity of the pharmaceutical unit. The Company has initiated legal recourse against the defaulting customers and is regularly following up on the same and the Company during the last year has even closed down its loss making pharmaceutical manufacturing. The units of the company now continue to operate at satisfactory capacity utilization levels and are generating positive Earnings before Interest Depreciation Tax and Amortization (EBIDTA). With strong management focus on strategic initiatives for cost rationalization, optimum product mix and efficient plant operations, the management believes that accumulated losses would reasonably be paired, in due course. The standalone financial statements, as such have been prepared on a going concern basis.
6. Foreign exchange translation resulted in gain of Rs. 1851.16 Lacs for the three months ended June 30, 2018 reflected under other expenses.