Cals Refineries Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2017
Auditor and Management Disclosures and Notes for the quarterly results dated 31 Dec 2017
1. M/s Seth Thakurdas Khinvraj Rathi (A Partnership Firm), claiming to the Company to extent of Rs. 9.19 million (as per the audited Financial Statement for the F.Y. 2016-17), had filed Insolvency and Bankruptcy petition against the Company for initiation of corporate insolvency resolution process (CIRP). The Hon’ble National Company Law Tribunal, (NCLT) New Delhi had admitted his petition against the Company u/s 9 of the Insolvency and Bankruptcy Code, 2016 vide its order dated 23.11.2017 and the Moratorium in terms of Section 14 of the said code has come into immediate effect from the date of the aforesaid order.
2. The Hon’ble NCLT had appointed an Interim Resolution Professional of the Company vide its order dated 13.12.2017, however pursuant to the proposal being made by Committee of creditors, the Hon’ble NCLT vide its order dated 29.01.2018 has confirmed the appointment of Mr. Rakesh Kumar Jain, bearing Regn. No. IBBI/IPA-002/IP-N00053/2017-18/10105 as Resolution professional of the Company.
3. Under the current CIRP, a resolution plan needs to be presented and approved by the Committee of creditors (CoC) and thereafter will need to be approved by the Hon'ble National Company Law Tribunal to keep the corporate debtor (Cals Refineries Limited) as a going concern. Currently, the resolution plan is under formulation/consideration and is to be presented for approval of CoC. The Financial Statements of the company are prepared on the basis of going concern.
4. Pursuant to Regulation 29, 33 and other applicable provision of SEBI (Listing Obligations and Disclosure Requirements), regulations, 2015, The Management Committee constituted and working under the supervision of Resolution Professional on Wednesday, 14th Feb, 2018 has considered the Unaudited Financial Result of the Company for the Quarter and Nine month ended 31 December, 2017, duly authenticated and signed by the Members of the Management Committee of the Company present in the meeting.
The said Results have been reviewed by the Statutory Auditor of the Company in terms of Regulations 33 of Listing Regulations. The Ind AS complied Financial Result pertaining to the Quarter and Nine months ended 31 December 2016 have not been subjected to Limited Review or Audit, however, the Management has exercised necessary due deligence to ensure the Financial Result provide a true and fair vew.
5. The statement has been prepared in accordance with the Companies ( Indian Accounting Standard ) Rules, 2015 (Ind AS) prescribed under section 133 of Companies Act, 2013 and other recognised accounting practices and policies to the extent applicable. Beginning April 1, 2017, the Company has for the first time adopted Ind AS with a transition date of April 1, 2016.
6. The reconciliation of net (loss) for the quarter ended 31st December, 2016 in accordance with Indian GAAP to total comprehensive income in accordance with Ind AS is given below. This reconciliation statement has been provided in accordance with circular CIR/CFD/FAC/62/2016 issued by SEBI dated July 05, 2016 on account of implementation of Ind-AS by listed companies. For Table, kindly refer Corporate Announcements on www.bseindia.com.
7. Actuarial Valuation of Employees benefit plan is being carried on annual basis and for quarterly financial, these expenses will be accounted for on provisional basis. Actuarial gain/loss on the same will be accounted for in other comprehensive income on annual basis on the basis of Annual Actuarial Valuation
8. As the company's business activities fall within a single significant primary business segment hence, no separate segment information is disclosed.
9. Investors can view the Financial Results of the Company at the Company's website www.cals.in or at the websites of BSE (www.bseindia.com).
10. These un-audited financial results pertain to a period before the appointment of present Resolution Professional and certified by the Managing Director and Chief Financial Officer of the Company. The Resolution Professional has not conducted an independent verification of these financial results and is not in a position to verify the details. The Resolution Professional has relied upon the assistance provided by the Management Committee in review of the financial results and classification, representation and statements made by Mr. Gagan Singhal, Managing Director and Mr. Raman Kumar Mallick, Chief Financial Officer of the Company in relation to the financial results. The financial results have been taken on record by the Management Committee. The RP has accordingly taken these financial results on record.