Thermax Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2018

1. These results have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on May 18, 2018.

2.The figures for the quarter ended March 31 are the balancing figures between audited figures in respect of the full financial year up to March 31 and the unaudited published year-to-date figures up to December 31, being the date of the end of the third quarter of the financial year which were subject to limited review.

3.Post applicability of Goods and Service Tax (GST) with effect from July 1, 2017, the revenue from operations is disclosed net of GST. Accordingly, the revenue from operations for the quarter and year ended March 31, 2017 is inclusive of excise duty, and is not comparable with revenue for the quarter and year ended March 31, 2018 to that extent.

4. During the earlier years and the current period, the Company has received demand / show cause-cum-demand notices issued by Excise department from time to time for the period from April 1, 2004 till March 31, 2017 for Rs. 1,376.92 crores (including penalty but excluding interest not presently quantified).
These demands are of excise duty payable on inclusion of the cost of bought out items in the assessable value of certain products manufactured by the Company, though such duty paid bought out items are directly dispatched by the manufacturers thereof to the ultimate customer, without being received in the Company’s factory. The Company has filed an appeal against the said orders received before CESTAT, Mumbai. Based on an independent legal advice, the Company is confident of the issue being ultimately decided in its favour and accordingly no provision has been considered necessary by the Company in this regard as also for the period thereafter till March 31, 2018

5. Considering the current market scenario and performance of certain subsidiaries and joint ventures, the Company has accounted for following impairment on investments (as exceptional items) in the standalone financial results for the quarter and year ended March 31, 2018
i) Thermax (Zhejiang) Cooling & Heating Engineering Company Limited – Rs. 20 Crores and
ii) Thermax SPX Energy Technology Ltd. – Rs.5 Crores.

Similarly, last years exceptional items include Rs. 132.84 Crores of impairment on investments in subsidiaries.

6. The Board of Directors has recommended a dividend of Rs. 6/- per share of face value of Rs. 2/- (300%) which is subject to approval of shareholders at 37th Annual General Meeting.