Primo Chemicals Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2018

Notes: 1. Diluted EPS has been taken as same as basic EPS since the potential Equity Shares can not be ascertained presently as the conversion price of FCDs in to Equity Shares is to be ascertained at the time of conversion in accordance with the provisions of SEBI ICDR Regulations, 2009.

2. The Company has re-estimated the life of various equipments because of (i) replacement of imported equipments by indigenous ones which have shorter life, (ii) technological advancements necessitating quicker replacement, (iii) change in material of construction and (iv) past operational experience as certified by the technical staff. Accordingly, the Company has provided depreciation on plant & equipments purchased since 2004-05 on the basis of re- estimated life of the assets during the quarter and nine months ended 31st December, 2018 in accordance with Ind-AS 8 & Ind-AS 16. The differential depreciation of Rs. 889.52 lacs has been provided due to re- estimation of the life of the assets.

3. Certain disputed statutory dues like Service Tax, Excise and Entry Tax amounting to Rs.306.77 lacs (including penalty) were shown hitherto as contingent liability. For the quarter and nine months ended 31st December, 2018, the Company has provided for this liability in the books of accounts as per the opinion received from the tax consultant.

4. The above unaudited financial results of the Company have been prepared in accordanace with the Indian Accounting Standards (IND AS) prescribed under section 133 of the Companies Act, 2013 ( the "Act") read with relevant rules issued thereunder, other accounting principles generally accepted in India and guidelines issued by the Securities and Exchange Board of India.

5. Punjab State Power Corporation Limited (PSPCL) has launched the One Time Settlement (OTS) Scheme for settlement of outstanding dues and the Company is in the process of adopting and implementing this OTS Scheme.

6. The Company operates in a single business segment viz., Chemicals.

7. The figures of the previous period have been regrouped/ reclassified, wherever necessary.

8. The above results have been reviewed by the Audit Committee and thereafter approved by the Board in its meeting held on 28th January, 2019.