ABB India Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2021

1. This statement has been reviewed by the Audit Committee and recommended for approval to the Board and the Board approved at its meeting held on February 10, 2022.



2. During the quarter ended March 31, 2021, profit on sale of certain property, plant and equipment amounting to Rs. 74.53 Crores was disclosed as an exceptional item. Further, during the quarter ended December 31, 2021, Mechanical Power Transmission business pertaining to motion division has been sold to Dodge Industrial India Private Limited for a consideration of Rs. 44.58 Crores. The net assets transferred is Rs. 2.23 Crores (net liability) and profit on sale of business amounting to Rs. 46.81 Crores has been disclosed as an exceptional item.



3. On March 5, 2019, the Board of Directors of Company approved the Scheme of Arrangement amongst the Company and Hitachi Energy India Limited (HEIL) (formerly ABB Power Products and Systems India Limited) for Demerger of Company’s Power Grids business to HEIL (“Demerger”) and the Appointed date for the Demerger was April 1, 2019. The Demerger was approved by National Company Law Tribunal (‘NCLT’) and the NCLT approval was filed with the Registrar of Companies on December 1, 2019 (Effective date). Further, expenses incurred relating to the above mentioned discontinued business is disclosed as part of discontinued operations.
4. On December 21, 2021, the Board of Directors of the Company granted approval of sale of Company’s Turbocharger business, pertaining to process automation business to its wholly owned subsidiary for a consideration of Rs. 310 Crores. Consequently, pursuant to the requirements of Ind AS 105 - Non Current Assets held for Sale and Discontinued Operations, the Company classified the assets and liabilities as at December 31, 2021 pertaining to the Turbocharger business as Assets held for sale and liabilities directly associated with assets held for sale respectively and measured the same at lower of cost and fair value (fair value less costs to sell).



5. Effective January 1, 2021, erstwhile Industrial Automation segment has been renamed as Process Automation.



6. The Company has taken into account all the possible impacts of COVID-19 in preparation of these financial results, including but not limited to its assessment of liquidity and going concern assumption & recoverable values of its financial and non-financial assets. The Company has carried out this assessment based on available internal and external sources of information up to the date of approval of these financial results and believes that the impact of COVID-19 is not material to these financial results and expects to recover the carrying amount of its assets.



7. The Board of Directors of the Company have recommended a dividend of Rs. 5.20 per equity share of face value of Rs. 2 each for the year ended December 31, 2021.



8. The figures for the last quarter of current and the previous years are the balancing figures between audited figures for the full financial years and the unaudited published year-to-date figures for nine months of respective years. Further, exchange and commodity gain/loss of earlier periods have been reclassified between other income and other expenses to conform to the current period classification.