Emco Ltd. - Quarterly/Annual Result Disclosures and Notes dated 30 Jun 2018

1. The unaudited financial statement have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 09th August, 2018 and have been subjected with limited review by the statutory auditors.

2. The figures of the last quarter are the balancing figures between audited figures in respect of full financial year and unaudited published year to date figures up to the third quarter of the respective financial year.

3. The Company has only one reportable Segment i.e. Transmission and Distribution Segment within Power Sector as per Ind AS- 108.

4. Company has overdrawn credit facilities including interest of 53,274.89 Lakhs and other borrowings of 7,307.10 Lakhs that are due for repayment along with interest payable on such borrowings of 899.74 Lakhs. The above factor indicates a material uncertainty, which may cast significant doubt about the Company’s ability to continue as a going concern. However, Company has approached its lenders to restructure the dapril@2018

5. Debts, which along-with the sale of non-core assets will result into improved liquidity and profitability and therefore these financial statements are prepared on going concern basis.

6. Trade receivables include 12,109.75 lakhs due on account of outstanding dues and liquidated damages and other deductions withheld by them. The company has taken legal action for recovery of these receivables and expects to recover the same based on the legal advice.

7. Trade receivables include 14,328.31 lakhs outstanding as at 31 March 2018 in respect of the supplies or projects which have been closed or substantially completed. These receivables are due to retentions and claims arising mainly in respect of cost over-run due to client caused delays, suspension of projects, deviation in design and change in scope of work; for which Company is at various stages of negotiation/discussion with the clients. Considering the contractual tenability, progress of negotiation/ discussion with the client, the management is confident of recovery of these receivables.

8. Inventories includes 2,491.72 lakhs at project sites which are lying unused from a considerable period of time. Based on the technical evaluation, management is of the opinion that these inventories are in good conditions and can be utilised in future projects.

9. Other Current Asset includes revenues of 4901.74 lakhs recognised in earlier years under percentage completion method which are yet to be billed as per the contractual terms. These projects are almost completed and at final reconciliation stage with customers. In view of the management, the invoices would be raised on the customers as per contractual terms on hand over of the projects, completion of reconciliation procedures and amendment in contract wherever required.

10. Previous period figures have been regrouped, re-arranged and re-classified wherever necessary to conform to current quarter's classification.