Alps Industries Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2019
Auditor and Management Disclosures and Notes for the annual results dated 31 Mar 2019
-:NOTES:-
1. The Audited Financial Results for the Quarter and Financial Year ended on March 31, 2019 have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on May 30, 2019.
2. The figures of 4th quarter, are balancing figures between audited figures in respect of full financial year and published year-to-date upto third quarter of the current financial year.
3. Due to losses incurred by the company during the financial year ended on March 31, 2019, no dividend has been recommended by the Board of Directors.
4. In terms of the Ind AS, there is only one reportable segment i.e. Textile Segment. Hence the segment wise reporting is not applicable.
5. Effective from April 1, 2018, the Company adopted Ind-AS 115 – Revenue from Contracts with Customers, using the cumulative catch up transition method. The effect on adoption of Ind-AS 115 is insignificant on these financial statements.
6. The equity shares of the Company are listed at National Stock Exchange India Limited (NSE) under Scrip Code ALPSINDUS-EQ and Bombay Stock Exchange Limited (BSE) under Scrip Code 530715/ALPSIND. In terms of the resolution passed by the Board of Directors of the Company at their meeting held on May 30, 2016, and in pursuant to Regulations 6 and 7 of the SEBI (Delisting of Equity Shares) Regulations 2009, as amended from time to time, the Company has submitted an application dated 9.6.2016 for Voluntary Delisting of its 39114100 Equity Shares from Bombay Stock Exchange Limited which is still pending with Bombay Stock Exchange Limited. The company has filled the Writ Petition before Allahabad High Court for necessary directions in this regard which is pending adjudication.
7. During last year, the lenders having more than 83% of the secured debts of the Company revoked their consent to the DRS/settlement scheme circulated by erstwhile Hon’ble BIFR, interalia containing the restructuring of the debts of the Company, which was partly implemented. The Company objected to the said revocation of consent being unjustified and beyond terms of the scheme and further submitted an offer for settlement. M/s Edelweiss Assets Reconstruction Company Ltd., (presently holding 93% of the total secured debt of the Company) (EARC) in order to recover the dues from the Company has also filed an Original Application before Debts Recovery Tribunal, Lucknow Bench, which application is pending adjudication. Further, EARC and Syndicate Bank issued a Notice u/s 13(2) of SARFAESI Act to which the Company objected and also submitted a settlement proposal which has been denied. EARC under section 13(4) of the SARFAESI Act has taken over the symbolic possession of 5 properties being Land & Building and Plant & Machineries lying thereof of the company with the details of impact of the same on the financial results are as under and also issued a sale notice under Rule 8(6) and Rule 6(2) of the Security Interest (Enforcement) Rules, 2002:
(Rs. in Lakh)
Sl. No. Property Details Amount of Turnover during financial year 2018-19 Percentage to total turnover during the financial year 2018-19. Net worth/Contribution contributed as on 31.3.2019
4. 58/1, Site IV Industrial Area, Sahibabad, Ghaziabad 201010 (U.P.) 23.26 0.06% (9.48)
The adjustments as may arise on account of further action of lenders, if any, shall be made in the books of account in the year upon receipt of information from them. The Company once again submitted a revised settlement/restructuring proposal with lenders which is under active consideration with them. Management of the Company expects to get the revised settlement/restructuring proposal approved from lenders and accordingly, the Company would be meeting its revised financial obligations. Accordingly, the financial statements of the Company for the year ended March 31, 2019 have been prepared on going concern assumption basis and continue with the earlier consented restructuring scheme. The impact, arising upon approval of the revised settlement/restructuring proposal, will be given effect in the financial statements of the year of final settlement with lenders. Hence, no provision considered necessary in these accounts towards interest on entire secured loans & part of principal secured loan, waived earlier, and impact on retained earnings thereon totaling to Rs. 133933.35 Lakhs as per provisions of earlier consented scheme, which the Company continues to give effect till the time revised settlement/restructuring proposal is finally approved by its lenders.
8. In the audit report dated 30.05.2018 on the financial statements of the company for the year ended on March 31, 2018, the auditors have given the following qualification:
"Refer to note no. 38 to the notes on accounts, the Company has not provided for its liability towards interest & part of principal loan, waived earlier, and impact of retained earnings in terms of draft rehabilitation scheme and now revoked by its consented lenders amounting to Rs. 124590.19 lakh, accordingly the loss for the year and loan liability would have been increased and shareholder's fund would have been reduced to that extent."
In case, company would have considered this as liability, its standalone net profit for the current quarter ending on 31.3.2019 would have been a loss of Rs. 136168.54 lakh and loss for the year ended on 31.3.2019 would have been Rs. 140258.40 lakh (consolidated net profit for the quarter on 31.3.2019 would have a loss of Rs. 136174.95 lakh and loss for the year ended on 31.3.2019 would have been Rs. 140259.64 lakh) as against already stated standalone net Loss for the quarter ended on 31.3.2019 of Rs. 2235.19 lakh and net loss for the year ended on 313.2019 Rs. 6325.05 lakh (consolidated net profit/loss for the current quarter ended on 31.3.2019 Rs. 2241.60 lakh and net loss for the year ended on 31.3.2019 Rs. 6326.29 lakh) and the accumulated loss and loan liabilities at the end of the quarter and year ended on March 31’ 2019 would have been higher by Rs. 133933.35 lakh.
The management’s view is detailed in para 7 above. The impact, if any, of the revised settlement/restructuring which is under active consideration with the lenders, will be given effect in the financial statements of the year of final settlement with them.
9. The figures for the previous quarter/period and the year have been regrouped, re-casted and rearranged, wherever considered necessary.