Century Enka Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2018
Auditor and Management Disclosures and Notes for the quarterly results dated 31 Dec 2018
1. The above results have been reviewed and recommended for approval by the Audit Committee to the Board of Directors and have been approved by the Board of Directors at its meeting held on 24th January, 2019. The Statutory Auditors have carried out limited review of the above financial results and their report contains emphasis with respect to matter disclosed in note 3 below. 2. The Company's business activity falls within a single operating segment i.e. ''Synthetic Yarn''. 3. Excise Department had issued an order dated 31st December 2013 denying the applicability of notification No. 6/2000 dated 1st March 2000 and raised a demand of Rs.22,927 lacs plus interest thereon and penalty equivalent to demand amount. The Company has filed an appeal before Appellate Tribunal (CESTAT), which has been admitted on pre-deposit of Rs.700 Lacs and granted stay against the recovery. The Company has been advised by legal experts that it has a fair chance of ultimately succeeding in the matter and accordingly no provision is required to be made in accounts. 4. Exceptional item represents: a) Rs.454 Lacs towards write down in carrying value of Machinery not in use as on 31st December, 2018. b) Rs.2,491 Lacs towards profit on sale of property for the nine months and year ended 31st December, 2017 and 31st March, 2018 respectively. 5. The Government of India introduced the Goods & Services Tax (GST) with effect from July 01, 2017. Sales are recorded net of GST whereas earlier sales were recorded gross of excise duty which formed part of expenses. Hence, revenue from operations for the nine months ended 31st December, 2018 is not comparable with corresponding period. 6. The figures for the previous periods have been regrouped or reclassified to conform current period classification, wherever necessary.