LML Ltd. - Quarterly/Annual Result Disclosures and Notes dated 30 Jun 2017
Auditor and Management Disclosures and Notes for the quarterly results dated 30 Jun 2017
1. The Company has adopted Indian Accounting Standards (Ind AS] form 1st April 2017 with a transition date of 1st April, 2016. The standalone financial results have been prepared in accordance with Ind AS as prescribed under Section 133 of Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standard] Rules, 2015 and Companies (Indian Accounting Standard] Amendment Rules, 2016. The unaudited results of the quarter ended 30th June 2016 are also Ind AS compliant.
2. The format for unaudited quarterly results as prescribed in SEBI's circular CIR/CFD/CMD/15/2015 dated 30th November, 2015 has been modified to comply with requirements of SEBI's circular dated 5th July 2016, Ind AS and Schedule 111 to the Companies Act, 2013 applicable to companies that are required to comply with Ind AS. Further as clarified for disclosure by SEBI vide circular dated 20th September 2016, Income from Operations is inclusive of Excise Duty & service tax recovered in accordance with Ind-AS 18.
3. Reconciliation of the Net Profit for the corresponding quarter ended 30th June, 2016 as previously reported (Prepared under the previously applicable Indian Generally Accepted Accounting Principal referred to as I GAAP] via-a-via Ind AS is as below: For Table, kindly refer Corporate Announcements on www.bseindia.com.
4. On 22nd May 2017, the Company, (Company or Corporate Debtor) filed a petition under Section 10 of the Insolvency & Bankruptcy Code, 2016 (Code) with National Company Law Tribunal (NCLT), Allahabad Bench. The case was admitted by NCLT and it ordered for commencement of Corporate Insolvency Resolution Process (CIRP) w.e.f. 30.05.2017 and appointed Mr. Anil Goel as Interim Resolution Professional (IRP) for the Company. Pursuant to the above, the Committee of Creditors (CoC) in their meeting held on 29.06.2017 confirmed Mr. Anil Goel as Resolution Professional (RP). Under Section 17 of the IBC, the powers of the Board of Directors are suspended and such powers are vested with the IRP/RP.
The NCLT also ordered moratorium under the provisions of the Code w.e.f. 30.05.2017 till the completion of the CIRP Process or until it approves Resolution Plan under Section 31(1) of the Code or passes an order for liquidation of the Company under section 33 of the Code, whichever is earlier. CIRP of the Company is currently under process.
5. Resolution Professional has received various claims submitted by financial creditors, operational creditors, workmen, employee and authorized representative of workmen of the Company pursuant to the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 and are under consideration/ reconciliation.
6. The power of Board of Directors of the Company is suspended in view of on-going CIRP of the Company with effect from 30th May, 2017. Hence, no meeting of the Board or its committees could be convened for discharge of their powers including signing of the statement of unaudited Financial Results of the Company for the Quarter Ended 30th June, and the same has been approved and signed by the RP.
7. The Auditors have conducted limited review of the financial results for the current quarter ended 30th June, 2017. The conversion to Ind AS compliant corresponding figures for the quarter ended June 30, 2016 have not been subjected to limited review by the auditor. However, the Company has exercised necessary due diligence so that such financial results provide a true and fair view of its affairs in accordance with Ind AS.
8. Segmental information: (a) Primary (Business) Segment - The operations of the Company relate to only one segment viz. Motorised two / three -wheelers. (b) Secondary (Geographical) Segment - Secondary segment reporting is on the basis of geographical location of the customers. The Company's revenue during the quarter by geographical markets are: Domestic sales Rs. 500.12 lacs and Export sales Rs. 422.49 lacs. Geographical segment wise profits, assets and liabilities are not given since the production unit and administrative expenses are common.
9. The operations of the Company have been temporarily suspended w.e.f. 04/09/2017 due to non-approval of the resolution by CoC relating to raising of Interim Finance by the Company.
10. Previous period figures have been regrouped wherever necessary to make them comparable.