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Vardhman Special Steels Ltd Annual Report 2021
59249_rns_2021-05-13_9e3a4a9a-7534-4593-bfd1-85d8a612ca13.pdf
Annual Report
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LUDHIANA-141010, PUNJAB T: +91-161-2228943-48 F: +91-161-2601048, 2222616, 2601040 |= [email protected]
Ref. VSSL:SCY:MAY:2021-22 Dated: 13-May-2021
| VARDHMAN | SPECIALSTEELSLIMITED | |
|---|---|---|
| Delivering Excellence. Since 1965._ | CHANDIGARH ROADLUDHIANA-141010, PUNJAB+91-161-2228943-48T:[email protected] = | |
| Ref. VSSL:SCY:MAY:2021-22 | Dated: 13-May-2021 | |
| BSE Limited,New Trading Ring,Rotunda Building, P.J. Towers,Dalal Street, MUMBAI-400001.Scrip Code: 534392 | The National Stock Exchange of India Ltd,Exchange Plaza, Bandra-Kurla Complex,Bandra (East),MUMBAI-400 051'Scrip Code: VSSL |
SUB: DISCLOSURE UNDER REGULATION 30 & 33 OF SEBI LISTII NG OF LIGATIONS
Dear Sir,
Pursuant to Regulation 30 seal with Part A of Schedule III and Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements), Regulations 2015, we are SnietaSIne herewith Audited Financial Results of the Company for the financial year ended 31° March, 2021 together with Auditors' Report as approved by Board of Directors in its meeting held on 13" May, 2021.
The Board of Directors has recommended a dividend of Rs. 1.50 per share on fully paid up equity shares of the Company. The payment of dividend is subject to approval by the Members of the Company and shall be paid/ dispatched tentatively within five days of the conclusion of the Annual General Meeting.
The Report of Auditors is with unmodified opinion with respect to the Audited Financial Results of the Company for the financial year ended 31°* March, 2021.
The meeting of the Board of Directors commenced at 10:00 a.m. and concluded at 3:35 p.m. ,
Kindly note and display the notice on your notice Board for the: information of the members of your exchange and general public.
Thanking you,
Yours faithfully, For VARDHMAN SPECIAL STEELS LIMITED
Company Secré
YARNS | FABRICS | THREADS | GARMENTS | FIBRES | STEELS
PAN NO.: AADCV4812B | CIN: L27100PB2010PLC033930 WWWw.VARDHMANSTEEL.COM
Corporate Identity Number (CIN): L27100PB2010PLC033930, PAN: AADCV4812B
| VARDHMAN SPECIAL STEELS LIMITED | ||||||
|---|---|---|---|---|---|---|
| Regd.Office Vardhman Premises, Chandigarh Road, Ludhiana-141010Corporate Identity Number (CIN): L27100PB2010PLC033930, PAN: AADCV4812B | ||||||
| Website: www.vardhmansteel.comEmail: [email protected] | ||||||
| Statement of Audited Financial Results for the quarter and year ended 31 March 2021 | ||||||
| Sr | Quarter Ended | Year Ended | (Rs. in lakhs) | |||
| No. | Particulars | 31.03.2021 | 31.12.2020 | 31.03.2020 | 31.03.2021} | 31.03.2020 |
| 1 | Revenue from operations | (Audited)33,447.93 | (Unaudited)28,765.21 | (Audited)20,566.25 | (Audited)93,708.00 | (Audited)84,620.03 |
| Other income (also refer to note 1 and 2) | 241.47 | 318.92 | 146.17 | 1,296.14 | 939.82 | |
| Total income (1+2) | 33,689.40 | 29,084.13 | 20,712.42 | 95,004.14 | 85,559.85 |
| Statement of Audited Financial Results for the quarter and year ended 31 March 2021 | ||||||
|---|---|---|---|---|---|---|
| Sr | Quarter Ended | Year Ended | (Rs. in lakhs) | |||
| No. | Particulars | 31.03.2021(Audited) | 31.12.2020(Unaudited) | 31.03.2020(Audited) | 31.03.2021}(Audited) | 31.03.2020(Audited) |
| 1 | Revenue from operations | 33,447.93 | 28,765.21 | 20,566.25 | 93,708.00 | 84,620.03 |
| Other income (also refer to note 1 and 2)Total income (1+2) | 241.4733,689.40 | 318.9229,084.13 | 146.1720,712.42 | 1,296.1495,004.14 | 939.8285,559.85 | |
| 4 | _ Expenses:a) Cost of materials consumedb) Purchase of stock in tradeesforia. | 19,407.42- | 17,431.06- | 10,932.651.90 | 53,741.45- | 38,929.11432.19 |
| c) Changes in inventories of finished goods, stock -in- trade andwork -in progress | (1,328.16) | (2,263.20) | 1,438.08 | (1,224.92) | 14,438.63 | |
| d) Employee benefits expense | 1,840.06480.34 | 1,787.00494.61 | 1,248.95508.12 | 5,960.881,970.72 | 4,812.872,571.61 | |
| e) Finance costsf) Depreciation and amortisation expense | 1,000.55 | 673.83 | 655.43 | 3,022.94 | 2,572.08 | |
| g) Other expenses- Power and fuel expense | 3,371.73 | 3,648.34 | 2,662.61 | ;11,626.48 | 9,548.89 | |
| - Others | 4,930.33 | 4,217.13 | 2,700.91 | 13,268.92 | 12,486.11 | |
| Total expenses | 29,702.27 | 25,988.77 | 20,148.65 | 88,366.47 | 85,791.49 | |
| 5 | Profit / (loss) before income tax (3-4) | 3,987.13 | 3,095.36 | 563.77 | 6,637.67 | (231.64) |
| 6 | Tax expense / (income)- Current tax- Tax adjustment relating to prior years | 780.91(44.70) | 455.63- | 6.45- | 1,236.54(44.70) | 6.45- |
| - Deferred tax | 614.66 | 472.93 | 200.42 | 1,026.35 | (572.08) | |
| 7 | Net Profit after income tax (5-6) | 2,636.26 | 2,166.80 | 356.90 | 4,419.48 | 333,99 |
| 8 | Other comprehensive income / (expense) | |||||
| (A) (i) Item that will not be reclassified to profit or loss(ii) Income tax relating to items that will not be | 137.75 | (25.01) | (61.13) | 62.70 | (84.12) | |
| reclassified to profit or loss | vay | ie-ul | St) | |||
| (ii) Income tax relating to items that will bereclassified to profit or loss | a | |||||
| (ii) Income tax relating to items that will bereclassified to profit or loss | af | " | ||||
| 910 | {Total comprehensive income for the period (7+8) Earnings per equity share | 2,760.90 | 2,154.90 | 287.74 | 4,482.18 | 249.87 |
| (in Rs.) (not annualised):(a) Basic | 6.51 | 5.36 | 0.88 | 10.94 | 0.89 | |
| (b) Diluted | 6.49 | 5,36 | 0.88 | 10.93 | 0.89 | |
| 11 | Paid-up equity capital (face value Rs. 10/- per share) | 4,050.70 | 4,039.45 | 4,039.45 | 4,050.70 | 4,039.45 |
| 12 | Reserves (excluding revaluation reserve) | 41,885.63 | 37,323.56 | |||
| 13. | Net Worth# | 45,936.33 | 41,363.01 | |||
| 14 | Debt Equity Ratio# | 0.30 | 0.62 | |||
| 15 | Debt Service Coverage ratio (DSCR)# | 2.93 | 1.45 | |||
| 16 | Interest Service Coverage ratio (ISCR)# | 5.90 | 1.91 | |||
| # also refer to note 6(b) for definitions | ||||||
| See accompanying notes to the audited financial results |
Regd.Office Vardhman Premises, Chandigarh Road, Ludhiana-141010 Corporate Identity Number (CIN): L27100PB2010PLC033930, PAN: AADCV4812B
| VARDHMAN SPECIAL STEELS LIMITEDRegd.Office Vardhman Premises, Chandigarh Road, Ludhiana-141010Corporate Identity Number (CIN): L27100PB2010PLC033930, PAN: AADCV4812B | ||
|---|---|---|
| Website: www.vardhmansteel.comEmail: [email protected]Statement of Assets and Liabilities | ||
| Particulars | As at 31 March 2021 | (Rs. in lakhs)As at 31 March 2020 |
| I. ASSETS | (Audited) | (Audited) |
| Non-current assets(a) Property, plant and equipment | 28,149.09 | 30,831.11 |
| (b) Right-of-use assets(c) Capital work-in-progress | 91.491,273.65 | 154.821,232.62 |
| (d) Other intangible assets(e) Financial assets | 13.20 | 25.43 |
| - Loans- Other financial assets | 177.87- | 84.215,137.86 |
| (f) Deferred tax assets (net)(g) Income tax assets (net) | 969.1983.07 | 1,995.54294.161,181.08 |
| (h) Other non-current assetsTotal non-current assets | 1,287.8132,045.37 | 40,936.83 |
| Current assets(a) Inventories | 19,225,90 | 15,177.78 |
| (b) Financial assets- Investments | a | 500.35 |
| - Trade receivables- Cash and cash equivalents | 21,840.13234.00 | 17,989.43230.31 |
| - Bank balances other than cash and cash equivalents- Loans | 5,000.0099.491,061.14 | -91.38168.36 |
| - Other financial assets(c) Assets held-for-sale | -767,21 | 1,012.43916.75 |
| (d) Other current assetsTotal current assets | 48,227.87 | 36,086.79 |
| TOTAL ASSETS | 80,273.24 | 77,023.62 |
| I. EQUITY AND LIABILITIESEquity | ||
| (a) Equity share capital(b) Other equity | 4,050.7041,885.63 | 4,039.4537,323.56 |
| Total equityLiabilities | 45,936.33 | 41,363.01 |
| Non-current liabilities(a) Financial liabilities | ||
| - Borrowings- Lease liabilities | 10,965.1694.34 | 10,784.46149.40 |
| - Other financial liabilities(b) Provisions | 31.74176.18 | 17.60120.38 |
| (c) Other non-current liabilitiesTotal non-current liabilities | 19.2911,286.71 | 23,2211,095.06 |
| Current liabilities(a) Financial Liabilities | ||
| - Borrowings- Lease liabilities | 5,985.6510.76 | 14,862.3514.33 |
| - Trade payablesi. Total outstanding dues of micro enterprises and small enterprises | 256.56 | 126.52 |
| 12,761.433,053.41 | 6,046.072,708.77 | |
| ii. Total outstanding dues of creditors other than micro enterprises and small- Other financial liabilities | 946.1423.70 | 721.3686.15 |
| (b) Other current liabilities(c) Provisions | 12.55 | 24,565.55 |
| (d) Current tax liabilities (net)Total current liabilities | 23,050.20 | 77,023.62 |
| VARDHMAN SPECIAL STEELS LIMITEDRegd.Office Vardhman Premises, Chandigarh Road, Ludhiana-141010 | |||
|---|---|---|---|
| Corporate Identity Number (CIN): L27100PB2010PLC033930, PAN: AADC V4812BWebsite: www.vardhmansteel.comEmail: [email protected] | |||
| Statement of Cash Flows | |||
| (Rs, in lakhs) | |||
| Particulars | For the year ended31 March 2021 | For the year ended31 March 2020 | |
| A | Cash flow from operating activitiesProfit/(loss) before income tax | 6,637.67 | (231.64) |
| Adjustments for: | 3,022.94 | ||
| Depreciation and amortization expenseLoss on fair value of investments | - | 2,572.080.44 | |
| Change in fair value of derivative contractsUnrealized foreign exchange loss (net) | 163.19(29.09) | -(498.85) | |
| Gain on sale of property, plant and equipment (net) | (8.34)24.77 | (86.07) | |
| Share based payments to employeesLoss on sale of assets held-for-sale | 17.01 | 7.8511.69 | |
| Balances written offBad debts | -- | 0.331,00 | |
| Expected credit loss on trade receivables | 250,001,970.72 | 272.562,571.61 | |
| Finance costsInterest income | (818.32) | (214.09) | |
| Dividend incomeProfit on sale of current investments | -(19.44) | (0.01)(62.96) | |
| Capital work-in-progress written-offLoss on asset retirement | 122.29354.35 | 93.83: | |
| Liabilities no longer required written back | (6.99) | (33.37) | |
| Operating profit before change in following assets and liabilitiesAdjustments for: | 11,680.76 | 4,404.40 | |
| (Increase)/decrease in inventories(Increase)/decrease in trade receivables | (4,048.12)(4,095.95) | 16,144.42465.74 | |
| (Increase)/decrease in current loans | (8.11)(549,32) | 11.20722.36 | |
| (Increase)/decrease in other financial current assetsDecrease in other current assets | 529.49 | 1,656.46 | |
| (Increase) in non current loans(Increase)/decrease in other non-current assets | (93.66)(19.40) | (15.42)30.19 | |
| Increase in non-current provisions(Decrease) in other non current liabilities | 55.80(3.93) | 19.87(1,92) | |
| Increase/(decrease) in trade payables | 6,873.23 | (10,168.91) | |
| (Decrease) in other financial current liabilitiesIncrease in other financial liabilities | (870,63)14.14 | (32.25)- | |
| Increase in other current liabilitiesIncrease/(decrease) in current provisions | 224.780.25 | 446.74(51.08) | |
| Cash generated from operating activitiesIncome tax paid (net) | 9,689,33(965.40) | 13,631.80(88.94) | |
| Net cash generated from operating activities | 8,723.93 | 13,542.86 | |
| B | Cash flow from investing activitiesAcquisition of property, plant and equipment and other intangible assets | (948,41) | (3,582.78) |
| Proceeds from sale of property, plant and equipment and other intangible assets | 17.45 | 101.21 | |
| Cost incurred towards assets held for saleProceeds from assets held for sale | -995.42 | (129,12)155.00 | |
| Taxes paid on sale of assets held for saleDividend income | (7.72)- | -0.01 | |
| Movement in current deposit accountsMovement in non-current deposit accounts | (5,000.00)5,000.00 | io(5,000.00) | |
| Proceeds from / (acquisition of) current investments | 519,79 | (437.05) | |
| Interest receivedNet cash generated/(used in) investing activities | 103.06679,59 | 76.23(8,816.50) | |
| C | Cash flow from financing activities | ||
| Proceeds from issue of share capital (including premium)Proceeds from non-current borrowings | 66.373,760.00 | 4,906.44200.00 | |
| Repayments of non-current borrowings | (2,413.96)(19.98) | (3,258.00)(20.34) | |
| Payment of lease liabilitiesRepayments of current borrowing (net) | (8,876.70) | (3,819.33) | |
| Interest paidNet cash (used in) financing activities | (1,915,56)(9,399.83) | (2,533.25)(4,524.48) | |
| Net increase in cash and cash equivalents (A+B+C) | 3.69 | 201,88 | |
| Cash and cash equivalents at the beginning of the year (see below)Cash and cash equivalents at the end of the year (see below) | 230.31234.00 | 28.43230.31 | |
| Notes: | |||
| 1. Cash and cash equivalents include:Balance with banks | |||
| : in current accounts | 232.99 | 229,64 | |
| Cash on hand | 1.01234,00 | 0.67230,31 |
"toa ~ 7
Regd. Office Vardhman Premises, Chandigarh Road, Ludhiana-141010 Corporate Identity Number (CIN): L27100PB2010PLC033930, PAN: AADCV4812B Website: www.vardhmansteel.com Email: [email protected]
-
| The Company is eligible for incentive of Electricity Duty among other incentives under the Punjab State Government's Fiscal Incentives for Industrial Promotion Policy (R) 2015 for its expansions completed up to 31 March 2016. Further, the Company is also eligible for claiming incentives under the Industrial and Business Development Policy 2017 of the Punjab State Government. Pursuant to the necessary approvals from the competent authorities, the Company has recorded Rs. 60.33 lakhs in the current quarter, Rs. 72.09 lakhs in the preceeding quarter ended 31 December 2020 and Rs. 373.46 lakhs in the year ended 31 March 2021 as compared to Rs. 20.62 lakhs and Rs. 482.32 lakhs in the quarter ended 31 March 2020 and year ended 31 March 2020 respectively under the head "Other income" towards incentive of Electricity Duty & Infrastructure Development Cess exemption. Other incentives will be considered post sanction /assessment /approval by appropriate authority.
-
2 Punjab State Power Corporation Limited (PSPCL), vide its circular number 17/2020 dated 18 April 2020, gave a Public Notice offering its consumers of all categories to make advance payment towards their estimated electricity bills up to March 2021 to the extent they can and earn interest @ 1% per month on advance payment. The Company decided to opt for the scheme and deposited the advance with electricity department considering Company's consumption levels. Accordingly, the Company has recorded accrued interest income of Rs, 51.50 lakhs in the quarter ended 31 March 2021, Rs. 129.88 lakhs in the preceeding quarter ended 31 December 2020 and Rs, 377,90 lakhs in the year ended 31 March 2021 respectively under the head "Other income".
-
- The Company is engaged in the single operating segment "Steel".
-
4 The Company has considered the possible effects that may result from the pandemic relating to COVID-19 in the preparation of these audited financial results including but not limited to the recoverability of carrying amounts of financial and non-financial assets, its assessment of liquidity and going concern assumption. In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of this pandemic, the Company has, at the date of approval of these audited financial results, used internal and external sources of information and expects that the carrying amount of these assets will be recovered.
-
5 Pursuant to its application to the Ministry of Environment, Forest and Climate Change (MoEFC) New Delhi, seeking permission to increase its manufacturing capacity of rolled products from 2,00,000 TPA to 2,80,000 TPA, the Company has been advised to maintain greenbelt equivalent to minimum 33% of the total land area. In order to comply this stipulation, the Company has demolished some of the buildings and accordingly, the Company has recognised loss on asset retirement of Rs. 213.36 lakhs and has also written off capital work-in-progress (building) of Rs. 122.29 lakhs in the Statement of Profit and Loss during the quarter ended 31 March 2021. Further, the Company has identified some of the additional building space for demolishing and considered these to be no longer usable. Accordingly, management has accelerated the depreciation rate and has reduced the carrying value to Rs. Nil on the related buildings resulting in accelerated depreciation of Rs. 343.88 lakhs during the quarter ended 31 March 2021. The Company is in continuous engagement with the MoEFC and expects to receive the necessary permission in the near future.
-
6 Pursuant to SEBI circular No. SEBI/HO/DDHS/DDHS/CIR/P/2019/115 dated 22 October 2019, the Company has listed secured commercial papers (CP's) on various dates on BSE limited (BSE).
| Credit Rating given on 22 January 2021: | |
|---|---|
| ----------------------------------------- | -- |
| Name of Credit Rating Agency | Rating | |
|---|---|---|
| CRISIL | Rs, 150 Crore Commercial Paper | CRISIL Al+ |
| : | (Reaffirmed) |
| VARDHMAN SPECIAL STEELS LIMITEDRegd. Office Vardhman Premises, Chandigarh Road, Ludhiana-141010Corporate Identity Number (CIN): L27100PB2010PLC033930, PAN: AADCV4812B | ||||||
|---|---|---|---|---|---|---|
| Notes: | Website: www.vardhmansteel.com | Email: [email protected] | ||||
| The Company is eligible for incentive of Electricity Duty among other incentives under the Punjab State Government's Fiscal Incentives for Industrial Promotion Policy(R) 2015 for its expansions completed up to 31 March 2016. Further, the Company is also eligible for claiming incentives under the Industrial and BusinessDevelopment Policy 2017 of the Punjab State Government. Pursuant to the necessary approvals from the competent authorities, the Company has recorded Rs. 60.33lakhs in the current quarter, Rs. 72.09 lakhs in the preceeding quarter ended 31 December 2020 and Rs. 373.46 lakhs in the year ended 31 March 2021 as compared toRs. 20.62 lakhs and Rs. 482.32 lakhs in the quarter ended 31 March 2020 and year ended 31 March 2020 respectively under the head "Other income" towards incentiveof Electricity Duty & Infrastructure Development Cess exemption. Other incentives will be considered post sanction /assessment /approval by appropriate authority. | ||||||
| Punjab State Power Corporation Limited (PSPCL), vide its circular number 17/2020 dated 18 April 2020, gave a Public Notice offering its consumers of all categories tomake advance payment towards their estimated electricity bills up to March 2021 to the extent they can and earn interest @ 1% per month on advance payment. TheCompany decided to opt for the scheme and deposited the advance with electricity department considering Company's consumption levels. Accordingly, the Companyhas recorded accrued interest income of Rs, 51.50 lakhs in the quarter ended 31 March 2021, Rs. 129.88 lakhs in the preceeding quarter ended 31 December 2020 andRs, 377,90 lakhs in the year ended 31 March 2021 respectively under the head "Other income". | ||||||
| The Company is engaged in the single operating segment "Steel". | ||||||
| The Company has considered the possible effects that may result from the pandemic relating to COVID-19 in the preparation of these audited financial results includingbut not limited to the recoverability of carrying amounts of financial and non-financial assets, its assessment of liquidity and going concern assumption. In developingthe assumptions relating to the possible future uncertainties in the global economic conditions because of this pandemic, the Company has, at the date of approval ofthese audited financial results, used internal and external sources of information and expects that the carrying amount of these assets will be recovered. | ||||||
| The Company continues to take adequate safety precautions and will continue to closely monitor future economic conditions to ensure business continuity. | ||||||
| Pursuant to its application to the Ministry of Environment, Forest and Climate Change (MoEFC) New Delhi, seeking permission to increase its manufacturing capacityof rolled products from 2,00,000 TPA to 2,80,000 TPA, the Company has been advised to maintain greenbelt equivalent to minimum 33% of the total land area. In orderto comply this stipulation, the Company has demolished some of the buildings and accordingly, the Company has recognised loss on asset retirement of Rs. 213.36 lakhsand has also written off capital work-in-progress (building) of Rs. 122.29 lakhs in the Statement of Profit and Loss during the quarter ended 31 March 2021. Further, theCompany has identified some of the additional building space for demolishing and considered these to be no longer usable. Accordingly, management has acceleratedthe depreciation rate and has reduced the carrying value to Rs. Nil on the related buildings resulting in accelerated depreciation of Rs. 343.88 lakhs during the quarterended 31 March 2021. The Company is in continuous engagement with the MoEFC and expects to receive the necessary permission in the near future. | ||||||
| Pursuant to SEBI circular No. SEBI/HO/DDHS/DDHS/CIR/P/2019/115 dated 22 October 2019, the Company has listed secured commercial papers (CP's) on variousdates on BSE limited (BSE).Information as required pursuant to Regulation 52(4) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015: | ||||||
| a) | Credit Rating given on 22 January 2021:Name of Credit Rating Agency | Rating | ||||
| CRISIL | Rs, 150 Crore Commercial Paper: | CRISIL Al+(Reaffirmed) | ||||
| b) | The definitions for ratios are as under:Net Worth = Equity share capital + other equityi)Debt equity ratio = Net debts/net worthii)iii) Debt service coverage ratio (DSCR) = (EBIDTA)/(finance costs+Scheduled principal repayment of long term debts)iv) Interest service coverage ratio (ISCR) = (EBIDTA)/finance costs | |||||
| Net debts: Long term borrowings (including current maturities of and gross initiation costs)+ short term borrowings - cash and cash equivalents - other bank | tax + depreciation and amortization expense + finance costs | |||||
| balance - investment in mutual fundsEBIDTA: Profit/(loss) before income | ||||||
| c) | Details of due dates, actual dates and amounts of repayment of listed secured commercial paper:: | Due Date | Actual Date of | Redemption | ||
| euENe | any EYES | of payment | Repayment | Amount | ||
| [INE050M14650INE050M14668 | Fresh IssueFresh Issue | 24.04.202024.07.2020 | 24.04.202024.07.2020 | 5,500.004,500.00 | ||
| INE050M14676INE050M14684 | Fresh IssueFresh Issue | 21,09,202021.10.2020 | 21,09.202021.10.2020 | 5,500.004,500.00 | ||
| INE050M14692 | Fresh Issue | 18.12.2020 | 18.12.2020 | 5,500.00 | ||
| INE050M14700INE0S50M14718 | Fresh IssueFresh Issue | 19.01.202125.03.2021 | 19.01.202125.03.2021 | 4,500.005,500.00 | ||
| INE050M14718INE050M14734 | Further Listing under same ISINFresh Issue | 25.03.202130.03.2021 | 25.03.202130.03.2021 | (Rs. in lakhs)2,500.004,500.00 |
Regd.Office Vardhman Premises, Chandigarh Road, Ludhiana-141010 Corporate Identity Number (CIN): L27100PB2010PLC033930, PAN: AADCV4812B Website: www.vardhmansteel.com Email: [email protected]
7The Indian Parliament has approved the Code on Social Security, 2020 in the Official Gazette on 29 September 2020. The effective date from which the changes are applicable is yet to be notified and the final rules are yet to be framed. The Company will carry out an evaluation of the impact and record the same in the financial statements in the period in which the Code becomes effective and the related rules are published.
| VARDHMAN SPECIAL STEELS LIMITED | ||
|---|---|---|
| Regd.Office Vardhman Premises, Chandigarh Road, Ludhiana-141010 | ||
| Corporate Identity Number (CIN): L27100PB2010PLC033930, PAN: AADCV4812BWebsite: www.vardhmansteel.comEmail: [email protected] | ||
| The Indian Parliament has approved the Code on Social Security, 2020 in the Official Gazette on 29 September 2020. The effective date from which the changes are | ||
| applicable is yet to be notified and the final rules are yet to be framed. The Company will carry out an evaluation of the impact and record the same in the financialstatements in the period in which the Code becomes effective and the related rules are published. | ||
| Annexure A | The disclosure as per SEBI Circular SEBI/HO/DDHS/CIR/P/2018/144 dated 26 November 2018 applicable to Large Corporate Borrowers are as follows: | |
| S. No. Particulars | Details | |
| __ Name of the Company | Vardhman Special Steels Limited | |
| 2__ | {CIN3__ Outstanding borrowing of company as on 31st March, 2021 | L27100PB2010PLC03393012,990 lakhs |
| 4 | Highest Credit Rating During the previous FY along with name of the Credit RatingAgency | CRISIL AA/Stable |
| 5 Name of Stock Exchange in which the fine shall be paid, in case of shortfall in therequired borrowing under the framework | Bombay Stock Exchange | |
| We confirm that we are a Large Corporate as per the applicability criteria given under the SEBI circular SEBI/HO/DDHS/CIR/P/2018/144 dated November 26,2018. | ||
| Annexure BI | ||
| S.No. Particulars | Details | |
| I __ | [Incremental borrowing done in FY 2020-2021 (a)2__ Mandatory borrowing to be done through issuance of debt securities (b) = (25% of a) | 3,760 lakhs |
| 3__ Actual borrowings done through debt securities in FY (c) | 940 lakhsEs | |
| 45 | _ Shortfall in the mandatory borrowing through-debt securities, if any (d) = (b) - (c)Reasons for short fall, if any, in mandatory borrowings through debt securities | 940 lakhsThe incremental borrowing of Rs 3760 lakhs during FY 2020-2021 is |
Annexure BI
| VARDHMAN SPECIAL STEELS LIMITED | ||
|---|---|---|
| Regd.Office Vardhman Premises, Chandigarh Road, Ludhiana-141010 | ||
| Corporate Identity Number (CIN): L27100PB2010PLC033930, PAN: AADCV4812B | ||
| Website: www.vardhmansteel.comEmail: [email protected] | ||
| applicable is yet to be notified and the final rules are yet to be framed. The Company will carry out an evaluation of the impact and record the same in the financialstatements in the period in which the Code becomes effective and the related rules are published.The disclosure as per SEBI Circular SEBI/HO/DDHS/CIR/P/2018/144 dated 26 November 2018 applicable to Large Corporate Borrowers are as follows: | ||
| Annexure A | ||
| S. No. Particulars __ Name of the Company | Details | |
| 2__ | {CIN | Vardhman Special Steels Limited |
| 3__ Outstanding borrowing of company as on 31st March, 2021 | L27100PB2010PLC033930 | |
| 4 | Highest Credit Rating During the previous FY along with name of the Credit Rating | 12,990 lakhsCRISIL AA/Stable |
| Agency | ||
| 5 Name of Stock Exchange in which the fine shall be paid, in case of shortfall in the | Bombay Stock Exchange | |
| required borrowing under the framework | ||
| We confirm that we are a Large Corporate as per the applicability criteria given under the SEBI circular SEBI/HO/DDHS/CIR/P/2018/144 dated November 26,2018. | ||
| Annexure BI | ||
| S.No. Particulars | Details | |
| I __ | [Incremental borrowing done in FY 2020-2021 (a) | 3,760 lakhs |
| 2__ Mandatory borrowing to be done through issuance of debt securities (b) = (25% of a) | 940 lakhs | |
| 3__ Actual borrowings done through debt securities in FY (c) | Es | |
| 4 | _ Shortfall in the mandatory borrowing through-debt securities, if any (d) = (b) - (c) | 940 lakhs |
| 5 | Reasons for short fall, if any, in mandatory borrowings through debt securities | The incremental borrowing of Rs 3760 lakhs during FY 2020-2021 is |
| against the existing Term Loan which was sanctioned during FY 2018- | ||
| 2019. The Term Loan was sanctioned against the expansion project of the | ||
| Company undertaken in the FY 2018-2019, but the loan amount has been | ||
| partly disbursed during FY 2019-2020 and balance amount has been | ||
| disbursed in FY 2020-2021 as per the term & condition of the sanctionedTerm Loan. |
The Company will take the requisite measures as stipulated within the timelines prescribed in the SEBI Circular SEBI/HO/DDHS/CIR/P/2018/144,
- The Board has recommended a dividend of Rs. 1.50 per equity share of Rs. 10 each fully paid up amounting to Rs. 607.61 lakhs, subject to approval in the Annual General Meeting.
- The figures for the last quarter ended 31 March 2021 and the corresponding quarter ended in the previous year, as reported in these Annual Financial Results, are the balancing figures between audited figures in respect of the full financial year and the published year to date figures upto the end of third quarter of the relevant financial year. Also, the figures upto the end of the third quarter had only been reviewed and not subject to audit.
- The above Audited Financial Results as reviewed by the Audit Committee have been approved at the meeting of the Board of Directors held on 13 May 2021. The Audit Report of the Statutory Auditors is being filed with the BSE Limited and the National Stock Exchange of India Limited, For more details, visit the Investor Service section under the Media section of the Company's website at www.vardhmansteel.com and Financial Results at corporate section of www.bseindia.com and www.nseindia.com.
For and on behalf of the Board of Directors of
Vardhman Special Steels Limited Forte <| Sachit Jain
Vice Chairman & Managing Director
Date : 13 May 2021 Place: Ludhiana
BSR&Co. LLP
Chartered Accountants
Unit No. A505 (A), Telephone: + 91 172 664 4000 sth Floor, Plot No.178-179A, Fax: + 91 172 664 4004 Industrial & Business Park, Phase -1, Chandigarh-i60002
INDEPENDENT AUDITORS' REPORT
TO THE BOARD OF DIRECTORS OF VARDHMAN SPECIAL STEELS LIMITED
Report on the audit of the Annual Financial Results
Opinion
(hereinafter We have audited referred the accompanying annual financial results of Vardhman Special Steels Limited submitted by the Company to as the ""Company") for the year ended 31 March 2021, attached herewith, being (Listing Obligations pursuant to the requirement of Regulation 33 and Regulation 52 of the SEBI Regulations'). and Disclosure Requirements) Regulations, 2015, as amended (Listing
aforesaid In our opinion annual and financial to the best of our information and according to the explanations given to us, the results:
- a. Regulations are presented in accordance with the requirements of Regulation 33 and Regulation 52 of the Listing in this regard: and
Basis for Opinion
We 143(10) conducted of the our Companies audit in accordance with the Standards on Auditing ("SAs") specified under section described in the Auditor's Act, 2013 ("the Act"). Our responsibilities under those SAs are further report. We are independent Responsibilities for the Audit of the Annual Financial Results section of our Institute of Chartered Accountants of the Company, in accordance with the Code of Ethics issued by the our audit of the financial of India together with the ethical requirements that are relevant to have fulfilled our other ethical statements under the provisions of the Act, and the Rules thereunder, and we Ethics. We believe that the responsibilities in accordance with these requirements and the Code of basis for our opinion on the audit annual evidence we have obtained, is sufficient and appropriate to provide a financial results.
ae
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Management's and Board of Directors' Responsibilities for the Annual Financial Results
These annual financial results have been prepared on the basis of the annual financial statements.
The Company's Management and the Board of Directors are responsible for the preparation and presentation of these annual financial results that give a true and fair view of the net profit and other comprehensive income and other financial information in accordance with the recognition and measurement principles laid down in Indian Accounting Standards prescribed under Section 133 of the Act and other accounting principles generally accepted in India and in compliance with Regulation 33 and Regulation 52 of the Listing Regulations. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring accuracy and completeness of the accounting records, relevant to the preparation and presentation of the annual financial results that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the annual financial results, the Management and the Board of Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do SO,
The Board of Directors is responsible for overseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the Annual Financial Results
Our objectives are to obtain reasonable assurance about whether the annual financial results as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these annual financial results.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
= Identify and assess the risks of material misstatement of the annual financial results, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
BSR&Co. LLP
- * Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3) (i) of the Act, we are also responsible for expressing our opinion through a separate report on the complete set of financial statements on whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
- " Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures in the financial results made by the Management and Board of Directors.
- =Conclude on the appropriateness of the Management and Board of Directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the appropriateness of this assumption. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the annual financial results or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
- " Evaluate the overall presentation, structure and content of the annual financial results, including the disclosures, and whether the annual financial results represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
Other Matters
The annual financial results include the results for the quarter ended 31 March 2021 being the balancing to figure between the audited figures in respect of the full financial year and the published unaudited year date figures up to the third quarter of the current financial year which were subject to limited review by us.
For BS R & Co. LLP Chartered Accountants Firm Registration No.: 101248W/W-100022
¢ Belay
Gaurav Mahajan Partner Place: Chandigarh Membership No.: 507857 Date: 13 May 2021 ICAI UDIN : 21507857AAAAAP5618