Chambal Fertilisers & Chemicals 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 financial results have been prepared in accordance with the Indian Accounting Standards ("Ind AS") prescribed under Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued thereafter.
2.‘Other Income’ is after considering mark to market (MTM) loss pertaining to hedging of foreign exchange risk amounting to Rs. 10614.05 Lakhs and Rs.6603.90 Lakhs for the quarter and nine months ended December 31, 2018, respectively. On the other hand, ‘Other Expenses’ stand reduced by foreign exchange variation gain amounting to Rs. 9593.62 Lakhs and Rs. 4089.06 Lakhs for the quarter and nine months ended December 31, 2018, respectively.
3.The financial results for the period ended December 31, 2018 have been prepared on the basis of notified concession prices for urea under New Urea Policy 2015, New Pricing Scheme (NPS) - Stage Ill ("NPS Ill"), modified NPS Ill and Uniform Freight Policy, which are further adjusted for input price escalation/ de-escalation, as estimated on the basis of prescribed norms.
The subsidy on Phosphatic and Potassic Fertilisers has been accounted for as per concession price notified by the Government of India.
4.Under the provisions of Ind AS 108, the Company operates in a single segment - Fertilisers and other Agri-inputs. Therefore, separate segment disclosures have not been given.
5.Effective April 01, 2018, the Company has adopted Ind AS 115 "Revenue from Contracts with Customers", using the cumulative catch-up transition method, which is applied to contracts that were not completed as of April 01, 2018. Effect of the same is not material on the financial results.
6.The Company has commenced commercial production from its New Urea Plant at Gadepan, District Kota, Rajasthan with effect from January 01, 2019.
7.‘Exchange Differences Gain/ (Loss) on Hedging Instruments’ under ‘Other Comprehensive Income’ pertains to exchange variation in respect of foreign currency loans availed for New Urea Plant of the Company.
8.The Auditors have conducted limited review of these financial results. The financial results were reviewed by the Audit Committee. The Board of Directors has taken on record the financial results at its meeting held on January 31, 2019.