Andhra Petrochemicals Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2021
Auditor and Management Disclosures and Notes for the quarterly results dated 31 Dec 2021
NOTES:
1. The above results, reviewed by the Audit Committee, were approved by the Board of Directors at its Meeting held on 5th February, 2022. The statutory auditors have carried out a "Limited Review" of financial results for the period ended 31st December, 2021.
2. Segmental reporting as per Ind AS-108 issued by the ICAI is not applicable, as the Company is engaged in manufacture of a single line of product.
3. During the Financial Year 2019-20, the Company (APL) has initiated the process of renewal of the Land Lease on which the plant is located with Visakhapatnam Port Trust (VPT) for a further period of 30 years with effect from 28.06.2019. APL has submitted its Technical & Financial Bid against the tender floated by VPT. As APL was the sole bidder for the Tender, VPT accepted both Technical Bid & Financial Bid. Later on, VPT has cancelled the tender and issued re-tender. Aggrieved by the action of VPT, APL has filed a writ petition under Article 226 before the Hon’ble High Court of Andhra Pradesh. The Hon’ble High Court of Andhra Pradesh has granted the stay on re-tendering. APL has continued its discussions with VPT from time to time and on 31st March, 2021 a joint meeting was held between the Executive Members of VPT and the President & G M (HR) of APL in the Office of the Chief Engineer VPT. The Chief Engineer, VPT has directed APL in the meeting to pay the lease rentals or otherwise penal interest @ three times will be levied. After seeking advice from the company’s advocate, APL has paid the lease rentals due till 31.03.2021 and the advance rentals for the year 2021-22 as per APL bid in the original tender. APL is pursuing for necessary execution of the lease agreement for another 30 years with effect from 28.06.2019. APL has considered provisionally its bid amount for accounting of “Leases” in accordance with Ind AS 116, till the matter is finally settled.
4. The Government of India, vide Taxation Laws (Amendment) Ordinance, 2019, inserted section 115BAA in Income Tax Act, 1961 which provides domestic Companies an irrevocable option to pay Corporate Income Tax at reduced rate (i.e., 25.17%) subject to non availment of certain incentives and allowances under different provisions of the Act. After Evaluation, the Company has decided to opt for the said new rate of taxation for the FY 2021-22 onwards. Consequently, the Company has reversed to Rs.857.97 lakhs MAT Credit entitlement available to it to the Statement of Profit & Loss.
5. Figures for the previous periods have been regrouped, wherever necessary, to conform to the current period's classification.