Chemfab Alkalis 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 Unaudited financial results were reviewed by the Audit Committee at its meeting held on 30 January 2019 and approved by the Board of Directors of the Company at their meeting held on that date.
2. The Equity shares of the Company have been listed with BSE and National Stock Exchange (NSE) with effect from 25 April 2018 vide their intimation/notice dated 23 April 2018.
3. The National Green Tribunal, in an application filed by a party (NGO), had granted an ex parte stay, restraining the construction activities pertaining to the expansion and operation of the Company's Plant without valid consent order. The Company has objected the averments of the complainant and filed its counter for vacating the stay, which was granted. Subsequent to 31 December, 2018 the Company has received an order from the National Green Tribunal, vide its order dated 29.01.2019, disposing the matter in favour of the Company and also to submit a report of compliance relating to certain information within three months of the order.
4. The Company has identified its reportable segments in accordance with Ind AS 108 - Segments. Accordingly, pursuant to the commencement of the PVC-O Pipes project, the Company has identified two reportable segments i.e. Chlor Alkali and Related Products and PVC - O Pipes. The PVC-O project for manufacturing and selling of PVC-O pipes & fittings at Sri City, Tada, Andhra Pradesh was commissioned on 22 December 2018. The Company has identified the following as reportable segments under INDAS 108 segments.
5. a) The Company had suspended the operations from 10 July 2018 at its Ongole plant in order to dispose excess accumulated inventory, post which the Management is evaluating various options of running the unit profitably.
b) Pending final decision of viability of the unit, the operations at the Ongole Plant remains suspended till further notice. The Management has carried out a detailed impairment evaluation and had recognised an impairment loss (net) of Rs. 1,963.25 Lakhs pertaining to the carrying value of its property, plant and equipment, disclosed as exceptional item under Statement of Profit & Loss for the period ended 31 December 2018.
6. Figures for the quarter ended 31 December 2017 are the balancing figures between the audited figures for the year to date period ended 31 December 2017 and the unaudited figures for the year to date period ended 30 September 2017.
7. Unallocable assets includes tax assets, Investments, Unpaid dividend accounts and Unallocable liabilities includes tax liabilities, Unpaid dividend payable and borrowings.