Kesoram Industries Ltd registered a narrowing of losses and posted a standalone net loss of ₹6 crore for the quarter ended March 31, 2023, against a net loss of ₹133 crore same period last year.
The revenue from operations on standalone basis dropped by nearly three per cent at ₹996 crore during the quarter under review as compared with ₹1,027 crore same period last year.
For the year ended March 31, 2023, standalone net loss came down to ₹116 crore (against a net loss of ₹130 crore). Revenue from operations for the year ended March 31, 2023, dropped marginally at ₹3534 crore (₹3539 crore).
Possible disposition
The company’s management is contemplating a possible disposition of its factory land comprised in its Hindustan Heavy Chemicals (HHC) unit that has been under suspension of work, in accordance with the requirements of the debenture trust deed entered between the company and Vistra ITCl (Debenture Trustee), dated March 10, 2021, to sell of its non-core assets.
Pursuant to provisions of the West Bengal Land Reforms Act, 1955 and the rules framed thereunder, all parcels of land falling under the ambit of the state government’s land legislation, requires prior approval from relevant authorities of the State government for transfer as well as payment of salami upon transfer/change in land use.
In view of the same, the expected realisation value is estimated to be lower than its carrying value, the company said in the notes to accounts to BSE on Friday.
During the year, the company has entered into a memorandum of understanding with a potential buyer for the said purpose.
While necessary enabling approvals from the shareholders have been obtained on February 23, 2023 towards a possible disposal of this factory land the management is in the process of obtaining a final approval from the shareholders prior to consummation of this transaction.
The management is also reasonably certain of receiving the required approvals from the relevant authorities in near future, to complete the proposed disposal.
Financial statement
“In view of the foregoing and as per the principles of Ind AS 105 ‘Non-current Assets Held for Sale and Discontinued Operations’, the said land has been classified in these financial statements as ‘Assets held for sale’ as on 31 March 2023 and its value has been measured at the lower of its carrying value and fair value less costs to sell, which has resulted in a loss of ₹173.07 crore. The loss on such remeasurement has been recognised and presented as an exceptional item in the statement of profit and loss,” it said.
The company’s scrip closed at ₹61.32, down by 1.32 per cent on the BSE on Friday.