Pursuant to the Regulation 30 of the Securities and Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulation 2015, please find enclosed the Notice of Postal Ballot dated May 11, 2022 issued by the Company for seeking approval of the Members of the Company by way of Ordinary/Special Resolutions.
Kotak Mahindra Capital Company Ltd ("Manager to the Offer") has submitted to BSE a copy of Offer Opening Public Announcement under Regulation 18(7) of Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, as amended ("SEBI (SAST) Regulations") and Corrigendum to the Detailed Public Statement for the attention of the Public Shareholders of Butterfly Gandhimathi Appliances Ltd ("Target Company").
Pursuant to the Regulation 47 of SEBI (Listing Obligation and Disclosure Requirements) Regulation 2015 and Regulation 26(7) of the SEBI (Substantial Acquisition of Shares and Takeover Regulations) 2011, we are enclosing the copy of the newspaper advertisements relating to the reasoned recommendation made by the Committee of Independent Directors of M/s. Butterfly Gandhimathi Appliances Limited on the open offer made by the M/s. Crompton Greaves Consumer Electricals Limited, published in Financial Express, Jansatta, Navshakti and Makkal Kural. The same has been made available in the Company website www.butterflyindia.com.
The uncertainty created by the transaction led the channel to reduce their stock levels and purchases (Revenue impact around 40-50 crs)
The lag between steep increase in commodity prices and pricing action impacted Gross Margins by about 5-6%. This is more a question of timing and the host of planned actions, including pricing will restore gross margins in the short term to their historical levels.
Management assessment on the need for some additional provisions, including provisioning for old & ageing inventory created a charge of about 12 crs.
Exceptional items by way of additional provisions for expected credit loss of Rs 6.6 crs.