Hero MotoCorp Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2018
Auditor and Management Disclosures and Notes for the quarterly results dated 31 Dec 2018
1. The above results for the quarter and nine months ended December 31, 2018 have been reviewed and recommended by the Audit Committee in their meeting held on January 30, 2019 and approved by the Board of Directors in their meeting held on January 31, 2019. These results have been subjected to limited review by the statutory auditors.
2. With effect from April 01, 2018, Hero MotoCorp Limited ( the 'Company' ) has adopted IND AS-115 ('Revenue from contracts with customers') using the cumulative effect method and accordingly these financial results are prepared in accordance with recognition and measurement principles laid down in IND AS-115. There were no adjustments required to the retained earnings as at April 01, 2018. Also, the application of IND AS-115 did not have any significant impact on recognition and measurement of revenue and related items in the financial results of the Company.
3. After applicability of Goods and Services Tax- ('GST') w.e.f July 01, 2017, sales are required to be disclosed net of GST . Accordingly, the figures of revenue from operations for the nine months ended December 31, 2018 is not comparable with the corresponding previous period.
4. During the quarter ended December 31, 2018 , the Company has invested Rs. 6.00 crores as part of capital contribution in subsidiary company i.e. HMC MM Auto Limited taking cumulative investment to Rs. 36 crores and Rs. 0.20 crores to wholly owned subsidiary i.e Hero TechCenter Germany GMBH. Further, the Company has invested Rs. 130.00 crores as part of capital contribution in associate company i.e. Ather Energy Private Limited taking cumulative investment to Rs. 330.58 crores.
5. The Board at its meeting held today considered and approved an interim dividend @ 2750 % i.e. Rs. 55 per equity share of Rs. 2.00 each for the financial year 2018-19.
6. The Company has appealed against an income tax demand of Rs. 2336.71 crore (including interest) pertaining to re-assessment of Hero Investments Private Limited’s (“HIPL”) income for Financial Year 2010-11 received during the quarter. The re-assessment was done despite full disclosure at the time of original assessment. The demand has been raised on the Company, as HIPL got amalgamated with Company w.e.f. January 1, 2013. Based on expert legal opinion, in view of the managment the demand order is not sustainable. As per the scheme of the amalgamation, the Company has an indemnity from the erstwhile promoters of HIPL against any liability in respect of period prior to amalgamation. Hence, the demand has no impact on the financials of the Company.
7. Based on the guiding principles given in Ind AS-108 on 'Operating Segments', the Company's business activity fall within a single operating segment, namely automotive segment. Accordingly, the disclosure requirements of Ind AS 108 are not applicable.
8. The above results of the Company are available on the Company's website www.heromotocorp.com and also on www.bseindia.com and www.nseindia.com.