Alchemist Ltd. - Quarterly/Annual Result Disclosures and Notes dated 30 Jun 2020
Auditor and Management Disclosures and Notes for the quarterly results dated 30 Jun 2020
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 14 September, 2020. The Satatutory Auditors have expressed modified opinion on these results.
2. The figure for the quarter ended 31st March, 2020 are the balancing figure of the financial year and the reviewed year to date figures upto the third quarter of the financial year.
3. The company extends credit from time to time as per market practices. In respect of export receivables amounting to Rs. 46,442.79 Lakhs, credit was extended for export sales in the normal course of the business, however it apparently got stuck. Though the Company is regularly following up on the same, has initiated legal recourse and is hopeful of recovering such amount, still considering the principal of conservatism, the Company has made a provision for expected credit loss @ 10% of the outstanding export receivables amounting to Rs. 4,644.28 lakhs and has not recognised unrealized foreign exchange gain/loss on such export receivable and related trade payable during the financial year 2019-20. Hence forth, the Company shall not be accounting for the unrealised foreign exchange loss on such export receivable and related trade payables and the same will only be accounted for on actual realisation/payment.
4. The working capital limits of Rs. 350.00 Lakhs availed from Bank of India for the working capital requirements of the pharmaceutical division has been classified as non performing asset (herein referred to as ‘NPA') on November 30, 2018. The outstanding as on the date of classification by the bankas NPA was Rs. 363.88 Lakhs. The Company has not recognised interest liability on such loan from the day it has become NPA, in line with the practice followed by the respective bank.
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 has recently 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 Company can even liquidate its non-core strong fixed assets cover to support the operations in times of any need. Further, the Company has the backing of the strong group because of which the Company has been able to pay off its borrowings from Punjab National Bank and support the operations of the Company even though the Company has incurred losses in the recent past. The financial statements, as such have been prepared on a going concern basis.
6. As required by Ind As 29 “Employee benefits", the company has nat made provision for Gratuity. The same will be provided at the end of year.
7. The figures for the previous period have been regrouped / reclassified, wherever necessary to confirm to the current period's presentation.
8. The Company has not carried out the impact assessment study that CAVIO- 19 may have on its operations and financials