HSIL 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 period ended 31st December 2018 have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on 31st January, 2019.
2. The statutory auditors of the Company have carried out a limited review of unaudited financial results for the quarter and nine months period ended 31st December 2018.
3. Effective 1st April 2018 the Company has adopted Ind AS 115 'Revenue from contracts with customer'. There is no material impact on the revenue recognised during the quarter and nine months ended 31st December 2018.
4. The commercial operations at newly setup, state of art CPVC, UPVC & SRW pipes and fittings facility started from 9th August 2018, and the figures of Building products division & Company for quarter and nine months ended on 31st December 2018 include sales of Rs. 46.82 crore (previous year Rs. Nill) and Rs. 70.29 crore (previous year Rs. Nill) respectively and EBIT level gain/(loss) of Rs. (0.87) crore (previous year Rs. 1.18 crore) and Rs. 11.00 crore (previous year Rs. 1.29 crore) respectively.
5. According to the requirement of Ind AS and SEBI (Listing Obligation and Disclosure Requirements) Regulations 2015, revenue for the corresponding half year ended 31st December 2017 and year ended 31st March 2018 were reported inclusive of Excise Duty. The Government of India had implemented Goods and Service Tax ("GST") from 1st July 2017 replacing Excise Duty, Service Tax, and other various indirect taxes. As per Ind AS 115 (previous periods Ind AS 18) the revenue is reported net of GST. Had the previously reported respective period revenue (including nine months ended 31st December 2017) shown net of excise duty, comparative segment wise revenue of the Company would have been as follows: For Table, kindly refer Corporate Announcements on www.bseindia.com.
6. The Board of Directors of the Company, in its meeting held on 10th November 2017 had approved a composite Scheme of Arrangement under section 230 to 232, read with section 66 and other applicable provisions of the Companies Act 2013 and the provisions of other applicable laws, amongst the Company, Somany Home Innovation Limited, a wholly owned subsidiary of the Company ("Resulting Company 1") and Brilloca Limited, a wholly owned subsidiary of Resulting Company 1 ("Resulting Company 2") and their respective shareholders and creditors ("Scheme'). The Scheme provides for the demerger of, (i) the Consumer Products Distribution and Marketing Undertaking ("CPDM Undertaking") and Retail Undertaking of the Company into Resulting Company 1, and (ii) the Building Products Distribution and Marketing Undertaking ("BPDM Undertaking") of the Company into Resulting Company 2. The Appointed Date for the Scheme is 1st April 2018 or such other date as directed by the Hon'ble Kolkata Bench of the National Company Law Tribunal ("NCLT"). The Scheme is subject to necessary regulation, approval and sanction by Hon'ble NCLT. The Company had received approval from BSE Limited and the National Stock Exchange of India Limited. The shareholders, secured creditors and unsecured creditors of the company have, in their respective NCLT convened meetings held on 29th September 2018 have given requisite consents and approval from NCLT, in this regard, is pending.
7. A portion of the company's Kaharani unit engaged in manufacturing of faucets, a part of building products division, had fire on the night of 12th November 2017. The necessary surveys by the insurance company has been conducted and unit is duly covered by insurance including reinstatement value clause. The insurance company is in process of assessing the quantum of claims for settlement. The company has received an interim insurance claim of Rs. 3.18 crore till date. All adjustments pertaining to loss, receipt of interim payments, final settlement due to fire would be accounted for upon its final assessment by the insurance company. In the opinion of management there will not be any material impact on this account on state of affairs and result of the company.
8. Previous period figures have been regrouped / re-arranged wherever considered necessary to confirm to the current quarter and half year's classification.