Castex Technologies 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. A corporate insolvency resolution process (“CIRP”) has been initiated against Castex Technologies Limited ('the Company') vide an order of Chandigarh bench of the National Company Law Tribunal (NCLT) dated December 20, 2017 under the provisions of the insolvency and bankruptcy code 2016 (Code). Pursuant to the order, the power of the Board of directors stands suspended and are exercisable by Mr Dinkar T. Venkata subramanian, who was appointed as interim resolution professional (IRP) by the NCLT vide order dated December 22, 2017 and was consequently confirmed as Resolution Professional (RP) by the Committee of Creditors (CoC) in its meeting held on January 12, 2018. Hon'able National Company Law Tribunal ""Chandigarh Bench"" vide their order No, CP (IB) No. dated 13th June 2018, approved the extension of CIRP period by 90 days (i.e. from 180 days to 270 days).
Further the committee of creditor of CTL has approved the resolution plan submitted by liberty House Group pte Ltd(LHG) through e-voting process on August 30, 2018 the resolution plan as approved by the committee of creditors of CTL, has also been subsequently submitted to Hon'able National Company Law Tribunal "chandigarh Bench" for consideration and approval as per the provision of the Code. As the powers of the Board of Director have been suspended, the above results have been adopted by the Board of Director
2. Post the commencement of CIR process the company is continuing to operate as a going concern in terms of the code, As the powers of the Board of Directors have been suspended, the above results have not been adopted by the Board of Directors.
3. As per the code the RP has to receive collate and all the claims submitted bye the creditors of the company. The RP has verified & admitted the claims submitted by the creditorsagainst the company as per the code pending finalisation of resolution plan the impact of such claims if any that also has not been considered in the preparation of the financial statements.Further interest on the financial debts from the date of commencement of CIRP (i.e. from December 20, 2017 till December 31, 2018) has not been provided in the books of accounts & Charged to the Profit & loss Account.
4. Considering the ongoing corporate Insolvency resolution process (as mentioned in note 1 & 2) the uncertainlty as to the realisation of unused tax losses & MAT Credit available cannot be ascertained at this stage. consequently adjustments to defered tax (net) & MAT credit available have not been given effect to during the period.
5. Considering the current operating levels of the Company, and the ongoing CIRP it is not possible to determine: a. Impairment, if any, in the economic value of the fixed assets, capital work in progress and tools & dies;
b. Diminution, if any, in the value of investments.
6. Trade receivables, loans & advances at December 31, 2018, (which are subject to confirmation & reconciliation) includes balances from the group entities, which are subject to confirmation/reconciliation and the recoverability assessment thereof is under process.
7. The Exceptional items for the quarter ended December 31, 2018 compresses provision for bed & doubtful debts. it’s also includes Group companies, whose resolution plans have been approved under the Insolvency & Bankruptcy code with NCLT
8. The company is in the business of casting and machining of steel products and hence has only one reportable operating segment as per Ind AS 108 "operating segments".
9. Previous period figures have been regrouped/rearranged wherever considered necessary to make them comparable with current period.