Orient Cement Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2020

1. The Board has recommended a dividend of Rupees 0.75 per share on Equity Shares of Rupee 1 each of the Company .



2. The Company operates in a single segment - manufacture and sale of Cement.



3. There were no exceptional items during the quarter and year ended on March 31, 2020.



4. The figures of last quarter are the balancing figures between the audited figures in respect of the full financial year up to March 31, 2020 and the unaudited published year-to-date figures up to December 31, 2019, being the date of the end of the third quarter of the financial year which were subjected to limited review.



5. The audited financial results of the Company were reviewed by the Audit Committee and taken on record by the Board of Directors of the Company at their respective meetings held on May 22, 2020.



6. The financial results of the Company have been prepared in accordance with the Indian Accounting Standards ('Ind AS') as prescribed under Section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules, 2015, as amended.



7. a. The operations of the Company were impacted in the month of March 2020 due to temporary shutdown of all plants following nationwide lockdown announced by the Government of India because of COVID-19 outbreak. The management is monitoring the situation closely and has started operating its plants in a phased manner from the last week of April. The management has made an initial assessment, based on the current situation, of the likely impact of the lockdown on overall economic environment and cement industry, in particular, based on which it expects the cement demand to stabilise in due course, as driven by measures expected to be taken by the Government; and further, does not anticipate any challenge in the Company's ability to continue as a going concern or meeting its financial obligations. The Company has additionally, on a prudent basis, assessed its property, plant and equipment for impairment and reassessed the realizability of MAT credit of Rupees 6,807.36 lacs as on March 31,2020. Based on projections, future outlook and carrying value of property, plant and equipment, there is no impairment charge that needs to be recognised and further, the management is confident that it will be able to utilise MAT Credit against future tax liability.



b. The above evaluations are based on scenario analysis carried out by the management and internal and external information available upto the date of approval of these results, which are subject to uncertainties that COVID-19 outbreak might pose on economic recovery.



8. The Ministry of Corporate Affairs has notified Indian Accounting Standard 116 (‘Ind AS 116’), Leases, with effect from April 1, 2019. The Company has adopted the Standard with effect from the date of initial application i.e. April 1, 2019, using the modified retrospective method under the transitional provisions of the Standard. As a result, the Company has recognised right of use asset and corresponding lease liability of Rupees 544.21 lacs

as on April 1, 2019. Further, expense towards such lease is now recorded as depreciation on right of use assets and finance costs on lease liability, instead of rent. On account of adoption of Ind AS 116, profit before tax for the year ended March 31, 2020 is lower by Rupees 13.41 lacs.



9. During the period, the Company has reclassified mining expenditure incurred for limestone extraction from cost of raw materials consumed to respective expenses based on their nature. Comparative figures of previous periods / year have also been reclassified to make them comparable with the current period’s / year figures. The above reclassification has no effect on the net profit / (loss) of the Company.



10. The results for the quarter and year ended on March 31, 2020 are also available on the Company's website www.orientcement.com, BSE website: www.bseindia.com and NSE website: www.nseindia.com.

1. Property, Plant and Equipment includes Right of Use Assets amounting to Rupees 334.61 lacs.



2. Other Liabilities under head Current Liabilities include Contract Liabilities amounting to Rupees 2676.70 lacs.