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BSE Mumbai Bourse: Results from Electrosteel Castings for Oct 01 to Dec 31

3 Feb 2018 5:38 am
Scrip_cd:                                                      500128 
Audited:                                                       Un-Audited 
Result Type:                                                   Q 
Date Begin:                                                    01-Oct-17 
Date End:                                                      31-Dec-17 
#                                                              (Rs Millions) 
Net Sales:                                                     5116.64 
Other Income:                                                  221.09 
Total Income:                                                  5337.72 
Expenditure:                                                   -5022.84 
Profit after Interest but before Exceptional Items:            314.88 
Exceptional Item:                                              0.00 
Profit (+)/ Loss (-) from Ordinary Activities before Tax:      314.88 
Tax:                                                           -111.01 
Net Profit (+)/ Loss (-) from Ordinary Activities after Tax:   203.87 
Net Profit:                                                    203.87 
EPS (in Rs):                                                   - 


1. The above financial results which have been prepared in accordance with Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with SEBI circular dated July 5, 2016, have been reviewed by Audit Committee and approved by the Board of Directors at their meeting held on February 02, 2018.The above results have been subjected to Limited Review by the Statutory Auditors.

2. The Company operates mainly in one business segment viz. Pipes and all other activities revolve around the main business.

3. The Board of Directors of the Company, at its meeting held on August 11, 2014 had approved the Scheme of Amalgamation (âEURothe SchemeâEUR ) of its wholly owned subsidiary, Mahadev Vyapaar Pvt. Ltd. with the Company with effect from April 1, 2014 (âEURoAppointed DateâEUR ). Mahadev Vyapaar Pvt. Ltd. had filed an application before the HonâEURTble High Court at Calcutta, which has sanctioned the said Scheme. The application filed by the Company before the HonâEURTble High Court at Orissa will be taken by the National Company Law Tribunal, Kolkata Bench (âEURoNCLTâEUR ) as per Notification no. S.O. 3677(E) dated December 7, 2016 and Rule 3 of Companies (Transfer of Pending Proceedings) Rules, 2016. The said application is yet to be transferred to NCLT. No effect of the Scheme has therefore been given in the above results of the Company.

4. In pursuance of the Order dated September 24, 2014 issued by the HonâEURTble Supreme Court of India (the Order) followed by the Ordinance promulgated by the Government of India, Ministry of Law & Justice (legislative department) dated October 21, 2014 (Ordinance) for implementing the Order, allotment of Parbatpur coal block (coal block/mines) to the Company which was under advanced stage of implementation, had been cancelled w.e.f. April 01, 2015. In terms of the Ordinance, the Company was allowed to continue the operations in the said block till March 31, 2015. Accordingly, the same had been handed over to Bharat Coking Coal Limited (BCCL) as per the direction from Coal India Ltd. (CIL) with effect from April 01, 2015 and the same has been subsequently allotted to Steel Authority of India Limited (SAIL).

Following a petition filed by the Company, the HonâEURTble High Court at Delhi has pronounced itâEURTs judgement on March 09, 2017. Accordingly based on the said judgement, the Company has claimed Rs.153176 lakhs towards compensation against the said coal block now being allotted to SAIL, acceptance whereof is awaited. Pending acceptance of the Company's claim as above;

(i) Rs.128884.11 lakhs incurred pertaining to the coal block till March 31, 2015 after setting off income, stocks etc. there against as per the accounting policy then followed by the company has been continued to be shown as freehold land, capital work in progress, other fixed assets and other respective head of accounts;

(ii) Interest and other finance cost for the year ended March 31, 2016 against the fund borrowed and other expenses directly attributable in this respect amounting to Rs. 9514.74 lakhs has been considered as other recoverable under current assets; and

(iii) Compensation of Rs. 8312.34 lakhs so far received and net realisations against sale of assets, advances etc. amounting to Rs. 633.83 lakhs have been adjusted.

Disclosure as per Indian Accounting Standard and adjustments arising with respect to above will be given effect to on final acceptance/settlement of the claim.

5. In terms of the Hon'ble Supreme Court Order as referred above, North Dhadhu Coal Block, allotted in joint venture with other companies, has also been cancelled w.e.f. September 24, 2014. The Company barring initial contribution of Rs. 822.81 lakhs and company's share of bank guarantee amounting to Rs. 2745.00 lakhs (encashment of which has been stayed by Hon'ble High Court of Jharkhand) has not made any further investments in the said joint venture company . In respect of Company's investment in North Dhadhu Coal Block, allotted in joint venture with other companies, in view of the management, the compensation to be received in terms of the ordinance is expected to cover the cost incurred by the Joint Venture Company and thereby no impairment requiring any adjustments in value of such investment is expected to arise.

6. Due to delay in grant of forest, environment and other clearances from various authorities and execution of mining lease of an area of 192.50 ha. by the State Government of Jharkhand for iron and manganese ores at Dirsumburu in Kodilabad Reserve Forest, Saranda of West Singhbhum, Jharkhand, the validity period of letter of intent granted in this respect expired on January 11, 2017. The Company filed a writ petition before the Hon'ble High Court of Jharkhand on January 10, 2017, praying inter-alia for direction for grant of said lease in favour of the Company. The Hon'ble High Court in its order while observed, being not averse in granting relief with respect to cut off date, admitted the said petition and fixed the case for further hearing and adjudication. Pending decision of the High Court, Rs. 5970.24 lakhs so far incurred in connection with these Mines/related facilities, have been carried forward under respective heads of fixed assets, capital work in progress and advances.

7. The Company has financial exposure of Rs. 84203.03 lakhs in one of its associates âEURoElectrosteel Steels Limited (ESL)âEURT towards investment/ advances as on December 31, 2017. As reported earlier, ESL has been referred to Hon'ble National Company Law Tribunal (NCLT) for Corporate Insolvency Resolution Process (CIRP). The Resolution Professional appointed by NCLT has received resolution plans from various parties which is under consideration of Committee of Creditors of ESL. Pending completion of the resolution process, the Company's exposure in the said associate together with mortgage of certain fixed assets in the favour of one of the lenders of ESL has been carried forward at their carrying value and no impairment in value thereof has been considered necessary at this stage.

8. Post the applicability of Goods and Service Tax (GST) with effect from July 01, 2017, revenue from operations is disclosed net of GST. Accordingly, the revenue from operations and other expenses for the quarter/ nine month ended December 31, 2017 are not comparable with the previous periods presented in the results. The impact of the same however is not significant.

9. Pre Goods & Service Tax (GST), the Company was enjoying certain benefits under Industrial Promotion scheme of state government. Post GST, pending notifications by the state government, on prudent basis, the company has not recognised any income under the scheme for the period July 01, 2017 to December 31, 2017.

10. Pursuant to the order passed by the Income Tax Department (department) on the direction of Income Tax Appellate Tribunal (ITAT), a sum of Rs. 1137.01 lakh has been received during the quarter on account of interest (net) in respect of assessment years 2003-04 to 2011-12. Since the department has preferred an appeal before the HonâEURTble High Court of Calcutta against the above order of ITAT, the said amount has not been recognized as income on prudence.

11. Cost of material consumed includes Rs.2320.29 lakhs for the quarter ended December 31, 2017, Rs.45.56 lakhs for preceding quarter ended September 30, 2017, Rs.61.75 lakhs for corresponding 3 month ended December 31, 2016, Rs.4924.24 lakhs for 9 month ended as on December 31, 2017 as against Rs.830.58 lakhs for corresponding nine month ended as on December 31, 2016, and Rs.867.96 lakhs for previous year ended March 31, 2017, in relation to cost of goods sold for raw materials.

12. Previous periods' figures have been regrouped/rearranged wherever necessary.

Umang Kejriwal

Managing Director

(END) Dow Jones Newswires

February 03, 2018 00:38 ET (05:38 GMT)
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