Tips Music Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2021
Auditor and Management Disclosures and Notes for the annual results dated 31 Mar 2021
Notes:-
1. The above financial results have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on June 14, 2021. The audit report has been filed with stock exchange and is available on the Company's website.
2. The Board of Directors has proposed a dividend of 20% i.e. Rs. 2 /- (Two Rupees only) Per Share for the Financial Year 2020-21.
3. Financial results for all the periods presented have been prepared in accordance with recognition and measurement principles of Ind AS notified under the Companies (Indian Accounting Standards) Rule, 2015 as amended from time to time.
4. The Company operates in two segments i.e. Audio/Video Products and Film Production/ Distribution Rights.
5. Considering the nature of business carried on by the company whereby revenues do not necessarily accrue evenly over the year, the results of the quarter may not be representative of the result for the year. As such, the result of the current quarter is not comparable with the result of corresponding quarter.
6. The Code on Social Security, 2020 ("Code") relating to employees benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/ interpretation have not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.
7. The company proposes to exercise the option permitted under section 115BAA of the Income-tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019. The Company accordingly has recognized Provision for Income Tax for the year ended March 31, 2021 and re-measured its Deferred Tax Liability on the basis the rate prescribed in the said section.
8. The Board of Directors of the Company at its meeting held on May 10, 2021 has considered and approved to restructure the business of the Company by way of a Scheme of Arrangement and D emerger ("Scheme") whereby the Film Business Undertaking ("Film Division") of Tips Industries Limited (" D emerged Company") will be demerged into the "Tips Films Limited "Company as a going concern basis with effect from the Appointed D ate of April 1, 2021. The said Scheme would be subject to requisite approvals of the National Company Law Tribunal, BSE Limited, National Stock Exchange of India Limited, Securities and Exchange Board of India and other statutory / regulatory authorities, including those from the shareholders and/or creditors of the emerged Company. The Company is in the process of filing the Scheme with the concerned authorities. Pending necessary regulatory approvals and other compliances, no adjustments have been made in the books of account and accompanying results.
9. Towards the end of the financial year 2020-2021, the 2nd wave of COVID-19 pandemic caused operational disturbances even before the lockdown. The Company was able to reorganise its operations to remain functional as well as comply with the lockdown regulations. However, the lockdown induced decline in economic activity has led to diminished revenues, posed challenges in collections of contracted revenues and impeded contract renewals. The Company is bracing for a challenging year ahead. Based on the current indications of future economic conditions, the management expects to recover carrying amounts of Non-Current and Current Assets. This assessment and the outcome of the pandemic as regards the aforesaid matters is highly dependent on circumstances / developments as they evolve in the subsequent periods.
10. Pursuant to provisions of Sections 68, 69 and 70(1) and all other applicable provisions, if any, of the Companies Act, 2013 and the provisions of Securities and Exchange Board of India (Buy Back of Securities) Regulations, 2018, the Company has bought back 13,50,000 (Thirteen Lakhs Fifty Thousand) fully paid-up equity shares of the Company of face value of Rs. 10/- (Rupees Ten only) each, from all the equity shareholders/beneficial owners of the Company who holds Equity Shares as on the record date i.e. Friday, April 03, 2020, on a proportionate basis, through the tender offer route, at a price of Rs. 140/- (Rupees One Hundred and Forty Only) per Equity Share for an aggregate amount of up to Rs. 18,90,00,000/- (Rupees Eighteen Crores Ninety Lakhs only) excluding the Transaction Cost. The equity shares bought back were extinguished on June 26, 2020.
11. Figures for the quarter ended March 31, 2021 and the corresponding quarter ended in the previous year as reported in these financial results are the balancing figures between audited figures in respect of the full financial year and the published year to date figures up to the end of the third quarter of the relevant financial year. Also the figures up to the end of the third quarter had only been reviewed and not subjected to audit.
12. The Previous period's / Year's figures have been regrouped / rearranged wherever necessary to make it comparable with the current period.