Chennai Petroleum Corporation 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 'result* have been reviewed and recommended by the Audit Committee and approved by the Board of Directors at the respective meetings held on 28th January 2019.

2. The Financial Results have been reviewed by the. Statutory Auditors as required under regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.0

3. The company operates only in one segment; Petroleum Sector. As such reporting is done on a single segment basis.

4. Average Gross Refining Margin {GRM) for the April – Dec 2018 is US $ 3.92 per bbl (April – Dec 2017. US $ 6.04 per bbl). The reduction in GRM during the period is primarily due to Steep fall in crude/product prices during the quarter,

5. Preference Share is treated as financial liability as per Ind AS 32, as these are redeemable on maturity for a fixed determinable amount and carry fixed rate of dividend Correspondingly, in line with the requirements of Ind AS 32, pending the. approval of shareholders, proportionate preference dividend including dividend distribution tax thereon, has been provisionally accrued as finance cost for the quarter ended Dec 2018 : Rs. 10:10 Or and upto the quarter ended Dee 2018 : Rs. 37.58 Cr (Oct - Dec 2017: Rs. 20.17 Cr; Apr-Dec 2017 : Rs. 60.30 Cr). However, as per the Companies, - Act 2013, the preference share# is treated as pail of share capital and the provisions of the Act relating to declaration of Preference Dividend at the end of the year would be applicable.

6. Impairment of Non Current Assets represents provision in respect of Cauvery Basin Refinery in accordance with Ind As - 36 “Impairment of Assets”

7. Other Expense for the quarter ended Dec 2018 includes exchange Gain (netted off) off Rs. 74.97 Or {Quarter ended Dec 2017; exchange gain of Rs. 6150 Cr included under Other income) and for the nine months ended Dee 2018 includes exchange loss of Rs. 283.83 Cr. (Nine months ended Dec 2017: exchange gain of Rs. 30.07 Cr included under Other Income).

8. The Non - Convertible Debentures (Series - II) aggregating to Rs. 1000 crore as on 31.12.2018 are secured by first charge on specific plant & machinery along with the underlying land together with all tie building and structures standing on the said land to the extent of Rs. 1000 crore. Credit Rating in respect of these Debentures is AAA (Stable) from CRISIL & CARE. The previous due dale, next; due date for payment of Interest are 10.01.2018 &. 10.01.2019 respectively. The principal amount of Rs. 1000 Cr together with interest has been redeemed on 10 01.2019.

Rajeev Ailawadi
Director (Finance)