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BEML Ltd Interim / Quarterly Report 2021
60811_rns_2021-08-06_b7f1df1d-993c-4be2-9c66-503d17e71eb7.pdf
Interim / Quarterly Report
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Winner of at § WH Ue fetes BEML LIMITED
( CIN: L85202KA1964G01001530 ) (A Govt. of India Mini Ratna Company under Ministry of Defence )
Manufacturing Units :
Bangalore Complex Tal : ORISA 14 &mail : bemlogmr@ ysni.com
KGF Complex Tel 06153-26020 emai. bemlede @ vsni.net in Mysore Complex
Te! , 08212402422 email : [email protected]
International Business Division Tel, + 81-80-2222 27390, 2223 $350 email. office @ export bem! co.in
Technology Division Tel: + 91-80-2296 3100-109 e-mail : office @ctd.bemi.co.in
Trading Division Fel: + 91-8022963113 email office @ trading bemi.co.in
Regional Offices :
Bilaspur Tel : 07752-252062 e-mail : blasour@ rm_beml.co.in
Chennai Te! : 44-28270792 email : chennai@rm_bemLca.in id Te) :040-23227082 email : hyderabad @rm_bemi.co.in
Kolkata Te): 033-22826314 e-mail : kokatia @ m.bemi.co.in
Mumbai Tel: 022-22049450 email : [email protected]
Nagpur Te 0712-22645 mail : nagpur@nm_bemi.co.m
New Dethi TA 011-233 165H) etnall : delhi@mbem|.co.m
Ranchi Te 0651 -2550370 trail : ranchi@ m_beml.con
Sembalpur BH): 03-2821604 e-mail : sarbaipar@rm bemican
Singrauli Te : OTE 26220) erraél : sregauh @rm bemlccin
BEML Service Centres :
Moula Ai, Hyderbad Tel: OM- 27240873 e-mail : [email protected] in
Ongoie - Service Activity Centre Haile tio, : 8440312607
Service Activty Centre Katri - 483501 (MA, P.) Wobile Wo. : 9425156473
Service Centre & Stores Kolkata - 700088 Tel : 032-24010782 rad ; etoresxolkotte @ rm.bemi,co.in Ref: CS/SE/Q-1/123
06.08.2021
| National Stock Exchange of India Ltd. | The BSE Limited |
|---|---|
| Listing Compliance Department | Listing Compliance Department |
| Exchange Plaza, Bandra-Kurla | 26" Floor,P.J. Towers, |
| Complex, Bandra (East), | Dalal Street, |
| MUMBAI - 400 051 | MUMBAI - 400 001 |
Dear Sir / Madam,
Sub: Un-audited Financial Results (Standalone & Consolidated) for the first quarter ended 30.06.2021 - Reg.
Ref: Our letter No. CS/SE/Q-1/119 dt. 29.07.2021
Please find enclosed Un-audited financial results (Standalone & Consolidated), in the detailed format, along with Limited Review Reports, for the first quarter ended 30.06.2021 in terms of Regulation 33 of the- (Listing Obligations and Disclosure Requirements) Regulations, 2015. The said results have been considered and approved by the Board at its 377" Meeting held on 06.08.2021. Arrangements have also been made to publish the extract of the results in a national daily (English) and local daily (Kannada) newspapers.
Yours faithfully For BEML LIMITED
Se ee vgs
(S V Ravisekhar Rao) Company Secretary & Compliance Officer Company Secretariat
Encl : As above
BEML Limited
Stat of Standalone Unaudited Results for the Quarter ended 30-06-2021 (Rs. in lakhs except EPS)
| BEML Limited | |||||
|---|---|---|---|---|---|
| tian(CIN: L35202KA1964GO1001530)(A Govt. of India Mini Ratna Company under Ministry of Defence) | |||||
| Registered Office : "BEML SOUDHA", 23/1, 4th Main Road, S.R. Nagar, Bengaluru - 560 027.see Scare wee beeTel. & Fax: (080) 22963142, E-mail: [email protected], | |||||
| Stat | |||||
| of Standalone Unaudited Results for the Quarter ended 30-06-2021 | Website: www.bemlindia.in | (Rs. in lakhs except EPS) | |||
| s. | No Particulars | 'Unaudited results for three months ended | Audited results foryear ended | ||
| Revenue from operations | 30-06-202145,100 | 31-03-20211,77,381 | 30-06-202039,124 | 31-03-20213,55,721 | |
| _ | [Other income Total Income (I+II) | 1,95247,052 | 3,1921,80,573 | 1,23340,357 | 6,0163,61,737 |
| IV | Expenses:Cost of materials consumed | 27,734 | 75,525 | 25,039 | 2,03,825 |
| Purchase of stock-in-trade | - | - | - | = | |
| Changes in inventories of finished goods, stock-in-tradeand work-in-progress | (5,645) | 41,569 | (3,967) | 86 | |
| Employee benefits expenseFinance costs | 20,9691,421 | 20,7121,232 | 21,849993 | 84,8653,912 | |
| Depreciation and amortization expenseOther expenses | 1,66510,191 | 1,87221,869 | 1,7977,921 | 7,06852,700 | |
| Total Expenses (IV) | 56,335 | 1,62,778 | 53,632 | 3,52,456 | |
| V_ | {Profit / (Loss) before exceptional items and tax (III-IV) | (9,283) | 17,795 | (13,275) | 9,281 |
| VI_ Add/ (Less) : Exceptional itemsVIl_ Profit / (Loss) before tax (V-VI) | -(9,283) | :17,795. | +(13,275) | =9,281 | |
| IX | Vill_ Tax expense Profit / (Loss) for the year from continuing operations | -(9,283) | 1,80115,994 | -(13,275) | 1,8017,480 |
| (ViI-VIN)X_ Profit / (Loss) from discontinuing operations | = | = | = | = | |
| XII | XL_ Tax expense of discontinued operations Profit / (Loss) from discontinued operations (after tax) | -- | -- | -- | -- |
| (X-XI)Xill_ Profit / (Loss) for the period (IX+XII) | (9,283) | 15,994 | (13,275) | 7,480 | |
| XIV Other Comprehensive IncomeXV Total Comprehensive Income for the year (XIII+XIV) | (2,567)(11,850) | (3,883)12,111 | (1,225)(14,500) | (7,559)(79) |
Notes
1 The above results as duly reviewed and recommended by Audit Committee were approved by the Board of Directors at the Meeting held on 06.08.2021.
2 The spread of COVID-19 Pandemic and subsequent restrictions during the quarter has impacted the Company's turnover and Company's manufacturing facilities, disruption in spares & service business, non receipt of materials due to global COVID-19 impact on supply chain disruptions, restrictive movements /non availability of required trailers etc, the impact of which could not be quantified.
Based on the information available (internal as well as external) upto the date of approval of these financial results, Company expects to recover the carrying amounts of intangible assets, trade receivables, inventory and other financial Assets. Efforts are being made to minimize the impact and Company will continue to closely monitor the developments & future economic & business outlook and its impact on Company's future financial statements.
3 Non-convertible secured Debentures of Rs. 100 crores were redeemed on 18.05.2021.
4 Fund raised through Commercial Paper amounting to Rs. 200 crores on 19.05.2021 for a period of 90 days.
5 The Limited Review Report issued by the Auditors on the Unaudited results, as duly placed before the aforesaid meeting of the Board, is enclosed.
6 The previous period's figures have been regrouped and reclassified wherever necessary to make them comparable with the current period's figures.
- 7 Exemption has been granted by SEBI from publishing segment-wise information.
- 8 Provisions in respect of employee retirement benefits are estimated considering actual expenditure of 2020-21 and likely increases.
- 9 BEML Limited has received "in-principal" approval from Dept. of Defence Production, Ministry of Defence (MoD) for closure of Vignyan Industries Limited (VIL), a subsidiary of BEML Ltd., vide letter dated 07th July 2020. The Production activities in VIL has been stopped w.e.f 10th October 2020. As per DPE guidelines CCEA Approval is required for closure. BEML has taken up for CCEA Approval through administrative Ministry (DDP/MoD). On receipt of approval action will be initiated accordingly.
- 10 Wholly Owned Subsidiary (WOS) in the name and style of BEML LAND ASSETS LIMITED has been incorporated on 15.07.2021 for demerger of surplus land and assets as part of the strategic disinvestment process.
Place: Bengaluru Date : 06.08.2021
for BEML Limited Ww
M V RAJASEKHAR Chairman and Managing Director (I/c)
By order of the Board
OH, Gi. WHET M. V. Rajasekhar aaa we wae eye (.) Chairman & Managing Director (VC)
BEML Limited
Statement of Consolidated Unaudited Results for the Quarter ended 30-06-2021
| BEML Limited | ||||||
|---|---|---|---|---|---|---|
| (CIN: L35202KA1964G01001530)(A Govt. of India Mini Ratna Company under Ministry of Defence) | ||||||
| Registered Office : "BEML SOUDHA", 23/1, 4th Main Road, S.R. Nagar, Bengaluru - 560 027.Tel. & Fax: (080) 22963142, E-mail: [email protected], Website: www.bemlindia.inStatement of Consolidated Unaudited Results for the Quarter ended 30-06-2021 | (Rs. in lakhs except EPS) | |||||
| No | > Particulars | Unaudited results for three months ended | Audited results for yearended | |||
| 30-06-2021 | 31-03-2021 | 30-06-2020 | 31-03-2021 | |||
| Revenue from operationsIl_ Other income | 45,1001,931 | 1,77,4263,191 | 39,0451,233 | 3,55,6646,016 | ||
| Il_ Total Income (I+!) | 47,031 | 1,80,617 | 40,278 | 3,61,680 | ||
| IV | Expenses:Cost of materials consumedPurchase of stock-in-trade | 27,730- | 75,575.- | 24,920- | 2,03,727e | |
| Changes in inventories of finished goods, stock-in-tradeand work-in-progress | (5,645) | 41,634 | (3,977) | 88 | ||
| Employee benefits expenseFinance costs | 21,0231,421 | 20,7951,244 | 21,9321,000 | 85,1953,940 | ||
| Depreciation and amortization expense | 1,683 | 1,890 | 1,815 | 7,138 | ||
| Other expenses | 10,220 | 21,897 | 7,988 | 52,881 | ||
| V_ | Total Expenses (IV) Profit / (Loss) before exceptional items and tax (IIl-IV) | 56,432(9,401) | 1,63,03617,582 | 53,678(13,400) | 3,52,9698,711 | |
| Vi__ Add/ (Less) : Exceptional items | - | - | - | : | ||
| VIL | Profit / (Loss) before tax (V-VI)Vill Tax expense | (9,401)- | 17,5821,801 | (13,400)eS | 8,7111,841 | |
| IX | Profit / (Loss) for the year from continuing operations.(VIVID | (9,401) | 15,781 | (13,400) | 6,870 | |
| X_ Profit / (Loss) from discontinuing operationsX _ Tax expense of discontinued operations | -= | =o | == | == | ||
| XIl_ | Profit / (Loss) from discontinued operations (after tax)(X-XI) | - | = | - | = | |
| XIII _ Profit / (Loss) for the period (IX+XiII) | (9,401) | 15,781 | (13,400) | 6,870 | ||
| XIV_ Other Comprehensive IncomeXV Total Comprehensive Income for the year (XIII+XIV) | (2,567)(11,968) | (3,859)11,922 | (1225)(14,625) | (7,535)(665) |
Notes.
1 The above results as duly reviewed and recommended by Audit Committee were approved by the Board of Directors at the Meeting held on 06.08.2021.
2 The spread of COVID-19 Pandemic and subsequent restrictions during the quarter has impacted the Group's turnover and Groups's manufacturing facilities, disruption in spares & service business, non receipt of materials due to global COVID-19 impact on supply chain disruptions, restrictive movements /non availability of required trailers etc, the impact of which could not be quantified.
Based on the information available (internal as well as external) upto the date of approval of these financial results, Group expects to recover the carrying amounts of intangible assets, trade receivables, inventory and other financial Assets. Efforts are being made to minimize the impact and Group will continue to closely monitor the developments & future economic & business outlook and its impact on Group's future financial statements.
3 Non-convertible secured Debentures of Rs. 100 crores were redeemed on 18.05.2021.
4 Fund raised through Commercial Paper amounting to Rs. 200 crores on 19.05.2021 for a period of 90 days.
5 The Limited Review Report issued by the Auditors on the Unaudited results, as duly placed before the aforesaid meeting of the Board, is enclosed.
6 The previous period's figures have been regrouped and reclassified wherever necessary to make them comparable with the current period's figures.
7 Exemption has been granted by SEBI from publishing segment-wise information.
8 Provisions in respect of employee retirement benefits are estimated considering actual expenditure of 2020-21 and likely increases.
9 BEML Limited has received "in-principal" approval from Dept. of Defence Production, Ministry of Defence (MoD) for closure of Vignyan
10 Wholly Owned Subsidiary (WOS) in the name and style of BEML LAND ASSETS LIMITED has been incorporated on 15.07.2021 for demerger of surplus land and assets as part of the strategic disinvestment process.
Place: Bengaluru Date : 06.08.2021
By order of the Board for BEML Limited
>Ax
M V RAJASEKHAR Chairman and Managing Director (I/c)
W. wt TET M. V. Rajasekhar seme we wae Reva (o.) Chairman & Managing Director (WC)
BEML Limited
| Statement of Consolidated Unaudited Results for the Quarter ended 30-06-2021 | (Rs. in lakhs except EPS) |
|---|---|
| ------------------------------------------------------------------------------ | --------------------------- |
| BEML Limitedtt tut | |||||
|---|---|---|---|---|---|
| (CIN: L35202KA1964G01001530)(A Govt. of India Mini Ratna Company under Ministry of Defence) | |||||
| eben!Registered Office: "BEML SOUDHA", 23/1, 4th Main Road, S.R. Nagar, Bengaluru-560 027 | |||||
| NEW FRONTIE 25. Ney DRA | |||||
| Tel. & Fax: (080) 22963142, E-mail: [email protected], Website: www.bemlindia.in | |||||
| Statement of Consolidated Unaudited Results for the Quarter ended 30-06-2021 | (Rs. in lakhs except EPS) | ||||
| SI. | Particulars | Unaudited results for three months Audited results | |||
| No. | ended30-06-2021 31-03-2021 30-06-2020 | for year ended31-03-2021 | |||
| 1 | Total Income from Operations | 45100 | 177426 | 39045 | 355664 |
| 2 | period(before(Loss)theProfitTax,for Net/ | (9401) | 17582 | (13400) | 8711 |
| 3 | Exceptional and / or Extraordinary items) Net Profit / (Loss) for the period before tax (after | (9401) | 17582 | (13400) | 8711 |
| Exceptional and / or Extraordinary items) | |||||
| 4 | for the periodProfit / (Loss)after tax(after NetExceptional and / or Extraordinary items) | (9401) | 15781 | (13400) | 6870 |
| 5 | ComprehensiveIncomeperiodthe Totalfor | (11968) | 11922 | (14625) | (665) |
| [Comprising Profit / (Loss) for the period (after tax) | |||||
| and Other Comprehensive Income (after tax)] | |||||
| 6 | Equity Share Capital | 4164 | 4164 | 4164 | 4164 |
| 7 | Earnings per Share (of Rs. 10/- each) (for continuing | ||||
| and discontinued operations) | |||||
| 1. Basic:2. Diluted: | (22.57)(22.57) | 37.8937.89 | (32.18)(32.18) | 16.5016.50 | |
| Notes: | |||||
| 1 | Key numbers of Standalone Unaudited Results for the quarter ended 30-06-2021Total Income from Operations | 45100 | 177381 | 39124 | 355721 |
1 Key numbers of Standalone Unaudited Results for the quarter ended 30-06-2021
| Total Income from Operations | 45100 | 177381 | 39124 | 355721 |
|---|---|---|---|---|
| Profit Before Tax | (9283) | 17795 | (13275) | 9281 |
| AfterTaxProfit | (9283) | 15994 | (13275) | 7480 |
2 The above is an extract of the detailed format of Quarterly Consolidated Financial Results for the quarter ended 30.06.2021 filed with the Stock Exchanges under Regulation 33 of the SEBI (Listing obligations and Other Disclosure Requirements) Regulations, 2015. The detailed format of the said results may be accessed at the weblink NSE at www.nseindia.com, the BSE at www.bseindia.com and Company's web-site at www.bemlindia.in.
i= 7e14
Place: Bengaluru Date : 06.08.2021 By order of the Board for BEML Limited
xy wn
M V RAJASEKHAR Chairman and Managing Director (I/c)
Gt. &t. TaHGT M. V. Rajasekhar Hee ut oar Reere o.) Chairman & Managing Director (WC)
Offices : Chennai - Mumbai - Bangalore - Madurai Telephone { a oa
Srinivasan New No.4, Old No. 23, C.P. Ramaswamy Road CHARTERED ACCOUNTANTS Alwarpet, Chennai - 600 018
4210 6952
E-Mail : [email protected] [email protected] Website : www.sundaramandsrinivasan.com
LIMITED REVIEW REPORT ON UNAUDITED STANDALONE FINANCIAL RESULTS
Review Report to
THE BOARD OF DIRECTORS
BEML LIMITED
-
- We have reviewed the accompanying statement of unaudited standalone financial results of BEML Limited ("the company") for the Quarter ended June 30, 2021 ("the statements") being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This statement is the responsibility of the Company's Management and has been approved by the Board of Directors. Our responsibility is to issue a report on these financial statements based on our review.
-
- We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Institute of Chartered Accountants of India.
-
- This standard requires that we plan and perform the review to obtain moderate assurance as to whether the financial statements are free of material misstatement. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provide less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.
-
- Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying statement of unaudited financial results prepared in accordance with applicable accounting standards and other recognized accounting practices and policies, has not disclosed the information required to be disclosed in terms of Regulation 33of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 including the manner in which it is to be disclosed, or that it contains any material misstatement.
Emphasis of Matter:
-
- We draw our attention to Note No.2 to the Financial Statements which describes the following matters:
- a. The Company's operations and financial results for quarter ended June 30, 2021 have been adversely impacted by the lockdown imposed to contain the second wave of COVID-19. The Company's manufacturing facilities were disrupted during the quarter and the company has taken necessary precautions, with reduced availability of workforce and severely disrupted supply chain to minimise the impact on its operations.
Offices : Chennai - Mumbai - Bangalore - Madurai Telephone { sien a
7 New No.4, Old No. 23, Sundaram EG Srinivasan C.P. Ramaswamy Road CHARTERED ACCOUNTANTS Alwarpet, Chennai - 600 018
4210 6952
E-Mail : sundaramandsrinivasan1 [email protected] [email protected] Website : www.sundaramandsrinivasan.com
- b. Based on the information available (internal as well as external) up to the date of approval of these financial results, Company expects to recover the carrying amounts of intangible assets, trade receivables, inventory and other financial assets. Efforts are being made to minimize the impact and Company will continue to closely monitor the developments, future economic & business outlook and its impact on Company's future financial statements.
- In respect of Advances to MAMC consortium amounting to Rs. 6,538.85 lakhs, realization/settlement depends on approval from MOD and viable business plan.
- Advances, balances with government departments, trade payable, trade receivable, other loans and advances and deposits are pending confirmation, reconciliation, review /adjustment of balances.
- The company has made a provision for shortage of Stock of spares amounting to Rs. Rs. 1,012.78 Lakhs, which is under reconciliation.
- In respect of Provision for Pending Legal Cases includes an amount of Rs. 2,060.64 lakhs relating to payment of Gratuity at the enhanced limit as.per DPE Pay Revision for 400 exexecutives and non-unionized employees who are covered by DPE Pay Revision circular dated November 26, 2008, based on order of Hon'ble Karnataka High Court Vide dated March 05, 2021 and on the principle of conservatism. As per Company's Board norms, a Provision amounting to 90% of the Liability has been created in the books of accounts. The Company is in the process of filing an SLP with the Hon'ble Supreme Court of India challenging the Hon'ble Karnataka High Court's order.
-
- We draw our attention to Note No.9 to the Financial Statements and based on explanation and information as furnished to us, we were given to understand that one of the Subsidiary Company M/s. Vignyan Industries Limited (VIL) has received a "in-principle" approval vide letter dated July 07, 2020 from Department of Defence Production, Ministry of Defence (MoD) for closure of the company. M/s. BEML Limited being the holding company continues to carry the Investment in Subsidiary at Cost as per Ind AS 27 - Separate Financial Statements since the company awaits approval from Cabinet Committee on Economic Affairs (CCEA). The matter awaits further developments and approvals we are unable to comment on the same.
Our conclusion is not modified in respect of these matters.
24988762 Offices : Chennai - Mumbai - Bangalore - Madurai Telephone { 2498 8463
CHARTERED ACCOUNTANTS Alwarpet, Chennai - 600 018
4210 6952
E-Mail : [email protected] [email protected] Website : www.sundaramandsrinivasan.com
Other Matters:
- The Financial statements of the company for the previous year ended 30th June 2020 were audited by the predecessor auditors. The Auditors have expressed an unmodified opinion vide their report dated August 07, 2020 on such financial statements.
Our Conclusion is not modified in respect of the above matter.
For SUNDARAM & SRINIVASAN Chartered Accountants Firm Regn No: 004207S
( eas UDIN: 21217914AAAALF1889 ae Bee i : [2] : Place: Chennai P Menakshi Sundaram (:)\ °°<"2" ENNAI Date: 6"" August 2021 Partner \s°' Membership No. 217914
24988762 Offices : Chennai - Mumbai - Bangalore - Madurai Telephone { 2498 8463
aE Ni ' !
4210 6952
E-Mail : [email protected] [email protected] Website : www.sundaramandsrinivasan.com
LIMITED REVIEW REPORT ON UNAUDITED CONSOLIDATED FINANCIAL RESULTS
Review Report to
THE BOARD OF DIRECTORS
BEML LIMITED
-
- We have reviewed: the accompanying Statement of Unaudited Consolidated Financial Results of BEML Limited ("the Parent") and its subsidiaries (the Parent and its subsidiaries together referred to as "the Group"), and its share of the net loss after tax and total comprehensive loss for the Quarter ended June 30, 2021 ("the Statement"), being submitted by the Parent pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended read with SEBI Circular CIR/CFD/CMD1/44/2019 dated March 29, 2019. Attention is drawn to the fact that the consolidated figures for the corresponding Quarter and Previous Year ended March 31, 2021 as reported in these financial results have been approved by the Parent's Board of Directors.
-
- This Statement, which is the responsibility of the Parent's Management and approved by the Parent's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013, and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
-
- We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Institute of Chartered Accountants of India. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33 (8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, to the extent applicable.
-
- The Statement includes the results of the following entities:
- a. Vignyan Industries Limited, Tarikere Subsidiary
- b. MAMC Industries Limited, Kolkata Subsidiary
- New No.4, Old No. 23, Glico \y Sr inivasan C.P. Ramaswamy Road CHARTERED ACCOUNTANTS Alwarpet, Chennai - 600 018
: ' 2498 8762 Offices : Chennai - Mumbai - Bangalore - Madurai Telephone { 2498 8463 4210 6952
E-Mail : [email protected] [email protected] Website : www.sundaramandsrinivasan.com
Basis For Qualified Conclusions:
-
- We draw our attention to Note No.9 to the Financial Statements and Based on explanation and information as furnished to us, we were given to understand that one of the Subsidiary Company M/s. Vignyan Industries Limited (VIL) has received a "in-principle" approval vide letter dated July 07, 2020 from Department of Defence Production, Ministry of Defence (MoD) for closure of the company. M/s. Vignyan Industries Limited has stopped the production activities with effect from October 10, 2020. The Independent Auditors of the Company in their Limited Review Report dated July 29, 2021 has made an Adverse Opinion and raised Concerns over the preparation of Financial Results of the Company as "Going Concern". The matter awaits further developments and approval from Cabinet Committee on Economic Affairs (CCEA) hence we are unable to comment on the same.
-
- We draw attention to relating to BEML Midwest Limited, a joint venture Company, has not been consolidated in the absence of its financial statements. As per the accounting principles, the financial statements of this joint venture should have been consolidated using proportionate consolidation method. The effects on the consolidated financial statements, of the failure to consolidate this Joint Venture Company, net of provision for diminution already made in the value of the investment, has not been determined.
-
- We draw attention relating to Advance to MAMC Consortium amounting to Rs. Rs. 6,538.85 Lakhs (Previous Year - Rs. 6,101.34 Lakhs) which ought to have been classified as Investment in Joint Venture in accordance with IND AS 28 — Investment in Associates and Joint Ventures.
We are unable to quantify the impact and implications of the above.
Qualified Conclusions:
- Based on our review conducted and procedures performed as stated in paragraph 3 above and based on the consideration of the review reports of the other auditors referred to in paragraph 9 below, except for the matter described in the Basis of Qualified Conclusion Paragraph 5 to 7 above, nothing has come to our attention that causes us to believe that the accompanying Statement of unaudited consolidated financial results, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standards ("Ind AS") specified: under Section 133 of the Companies Act 2013, as amended, read with relevant rules issued there under and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement.
Sundaram @@cdalenel cl Ramaswamy Road
2498 8762 Offices : Chennai - Mumbai - Bangalore - Madurai Telephone 2 2498 8463
New No.4, Old No. 23, CHARTERED ACCOUNTANTS Alwarpet, Chennai - 600 018
4210 6952
E-Mail : [email protected] [email protected] Website : www.sundaramandsrinivasan.com
Emphasis of Matter:
We draw our attention to:
-
- Note No.2 to the Consolidated Financial Statements which describes the following matters:
- a. The Company's operations and financial results for quarter ended June 30, 2021 have been adversely impacted by the lockdown imposed to contain the second wave of COVID-19, The Company's manufacturing facilities were disrupted during the quarter and the company has taken necessary precautions, with reduced availability of workforce and severely disrupted supply chain to minimise the impact on its operations.
- b. Based on the information available (internal as well as external) up to the date of approval of these financial results, Company expects to recover the carrying amounts of intangible assets, trade receivables, inventory and other financial assets. Efforts are being made to minimize the impact and Company will continue to closely monitor the developments, future economic & business outlook and its impact on Company's future financial statements.
-
- Advances, balances with government departments, trade payable, trade receivable, other loans and advances and deposits are pending confirmation, reconciliation, review /adjustment of balances.
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- In the Books of BEML Limited the company has made a provision for shortage of Stock of spares amounting to Rs. 1,012.78 Lakhs, which is under reconciliation.
- 12, In respect of Provision for Pending Legal Cases includes an amount of Rs. 2,060.64 lakhs relating to payment of Gratuity at the enhanced limit as per DPE Pay Revision for 400 ex- executives and non-unionized employees who are covered by DPE Pay Revision circular dated November 26, 2008, based on order of Hon'ble Karnataka High Court Vide dated March 05, 2021 and on the principle of conservatism. As per Company's Board norms, a Provision amounting to 90% of the Liability has been created in the books of accounts. The Company is in the process of filing an SLP with the Hon'ble Supreme Court of India challenging the Hon'ble Karnataka High Court's order.
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- We did not review the financial results of Two subsidiaries included in the consolidated unaudited financial results, whose interim financial results reflect total revenues of Rs. 1.77 lakhs, total net loss after tax of Rs. 121.53 lakhs and total comprehensive loss of Rs. 121.53 lakhs for the quarter ended June 30, 2021 as considered in the consolidated unaudited financial results. The financial results of these Subsidiaries have been reviewed by other auditors whose reports have been furnished to us by the Management and our conclusion on
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the Statement, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries is based solely on the reports of the other auditors except for the adverse opinion on Going Concern issued by the Independent Auditors in their Limited Review Report which has been considered and reported under Basis of Qualified Conclusions and the procedures performed by us as stated in paragraph 5 above.
Our conclusion is not modified in respect of the above matter.
Other Matters:
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- The Consolidated Financial statements of the Group for the previous year ended 30th June 2020 were audited by the predecessor auditors. The Auditors have expressed an unmodified opinion vide their report dated August 07, 2020 on such Consolidated financial statements.
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- We Draw Attention Note No.10 to the Consolidated Financial Statements which states that the Wholly Owned Subsidiary (WOS) M/s. BEML LAND ASSETS LIMITED has been incorporated on 15.07.2021 for demerger of surplus land and assets as part of the strategic disinvestment process. M/s. BEML LAND ASSETS LIMITED Results shall be incorporated in the Consolidated Financial Statements from Q2 FY 2021-22.
Our Conclusion is not modified in respect of the above matter.
For Sundaram & Srinivasan Chartered Accountants Firm Regn No: 004207S
UDIN: 21217914AAAALG9341 Keer sneisn Place: Chennai e Partner /</ Date: 6 August 2021 Membership No. 217914\2\ 25.50 KX