CGVD.L Regulatory News (CGVD)

CROMPTON GREAVES LD - 3rd Quarter Results 2016-2017

PR Newswire

London, February 16

Q3 Financial Results 2016-2017

Notes on standalone financial results:

1. The above unaudited standalone results have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 10th February, 2017. The statutory auditors have carried out a limited review of the financial results of the Company as required under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the ‘Listing Regulations’).

2. Exceptional items include the following:

3. Other comprehensive income is in respect of fair valuation of exposure in foreign subsidiaries, other investment and employee benefits.

4. Discontinuing businesses:

a. In respect of discontinued Distribution Franchise business (Jalgaon), the Company and Maharashtra State Electricity Distribution Company Limited (MSEDCL) have raised demand on each other and the matter is under dispute. The Company and MSEDCL are in the process of constituting a Permanent Dispute Resolution Body (PDRB) to arrive at a solution in near future. The Company does not expect any adverse impact with respect to above.

b. The Board of Directors of the Company vide resolution dated 7th November, 2016 have accepted an offer for the sale of the Company’s B2B Automation business, comprising of ZIV Aplicaciones y Technologia, S. L, (Spain), its subsidiaries alongwith the related Automation business in United Kingdom, Ireland, France and India at an enterprise value of € 120 million from Alfanar Electric Systems Company (Alfanar) of The Kingdom of Saudi Arabia. Alfanar is a major player in the electrical manufacturing business, including the manufacturing of electrical construction products as well as related engineering services. The deal is likely to be concluded within the current financial year.

In line with above, effective 1st January, 2017, the Company has transferred its automation business in India under slump sale agreement to ZIV Automation India Limited (A wholly owned subsidiary - a special purpose vehicle incorporated on 18th November, 2016) at a consideration of ` 30.80 crore. Pursuant to the arrangement with Alfanar, investment in this subsidiary will be sold to them in due course as a part of divestment of entire automation business of the company.

c. The Company has terminated Share Purchase Agreement entered into with First Reserve, an offshore private equity (PE) firm for sale of overseas Power T&D businesses of the Company at Indonesia, Hungary, Ireland, France, US and Belgium. However, the Company will continue to identify new buyers for sale of these businesses in near future.

d. Details of the discontinued businesses as on 31st December, 2016 included therein are given below in terms of the requirement of Indian Accounting Standard (Ind AS) 105:

5. The Company has applied for the change of its name from Crompton Greaves Limited to CG Power and Industrial Solutions Limited for which Shareholders approval is already in place and awaiting approval from Registrar of Companies, Mumbai.

6. Consequent to adoption of Ind AS effective from 1st April, 2015, the net profit for the quarter and Nine months ended 31st December, 2015 is decreased by ` 141.66 crore and ` 150.87 crore respectively on account of increase in depreciation due to fair value, depreciation on leased assets, expected credit losses, re-measurements of defined benefit obligations, and other adjustments.

7. Results of the quarter / nine months ended 31st December, 2016 are in compliance with the Indian Accounting Standards (Ind AS) notified by the Ministry of Corporate Affairs. Consequently, results for the quarter and nine months ended 31st December, 2015 have been restated to comply with Ind AS to make them comparable.

8. Figures of the previous quarters / year have been regrouped, wherever necessary to correspond with the current quarter / period. Hence, the corresponding component figures are comparable with all respective quarters / period financial results.

For Crompton Greaves Limited

Place: New Delhi K.N. NeelkantDate: 10th February, 2017 CEO & Managing Director

DIN: 05122610

Notes on consolidated financial results:

1. The above unaudited consolidated results have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 10th February, 2017. The statutory auditors have carried out a limited review of the financial results of the Company as required under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the ‘Listing Regulations’).

2. Exceptional items include the following:

3. Other comprehensive income is in respect of fair valuation of exposure in foreign subsidiaries, other investment and employee benefits.

4. Discontinuing businesses:

a. In respect of discontinued Distribution Franchise business (Jalgaon), the Company and Maharashtra State Electricity Distribution Company Limited (MSEDCL) have raised demand on each other and the matter is under dispute. The Company and MSEDCL are in the process of constituting a Permanent Dispute Resolution Body (PDRB) to arrive at a solution in near future. The Company does not expect any adverse impact with respect to above.

b. The Board of Directors of the Company vide resolution dated 7th November, 2016 have accepted an offer for the sale of the Company’s B2B Automation business, comprising of ZIV Aplicaciones y Technologia, S. L, (Spain), its subsidiaries alongwith the related Automation business in United Kingdom, Ireland, France and India at an enterprise value of € 120 million from Alfanar Electric Systems Company (Alfanar) of The Kingdom of Saudi Arabia. Alfanar is a major player in the electrical manufacturing business, including the manufacturing of electrical construction products as well as related engineering services. The deal is likely to be concluded within the current financial year.

c. The Company has terminated Share Purchase Agreement entered into with First Reserve, an offshore private equity (PE) firm for sale of overseas Power T&D businesses of the Company at Indonesia, Hungary, Ireland, France, US and Belgium. However, the Company will continue to identify new buyers for sale of these businesses in near future and hence, these businesses will continue to be reflected as discontinuing businesses.

d. Details of the discontinued businesses as on 31st December, 2016 included therein are given below in terms of the requirement of Indian Accounting Standard (Ind AS) 105:

5. The Company has applied for the change of its name from Crompton Greaves Limited to CG Power and Industrial Solutions Limited for which Shareholders approval is already in place and awaiting approval from Registrar of Companies, Mumbai.

6. Consequent to adoption of Ind AS effective from 1st April, 2015, the net profit for the quarter ended and nine months ended 31st December, 2015 is decreased by ` 190.69 crore and ` 220.50 crore respectively on account of increase in depreciation due to fair value, amortisation of intangible assets, depreciation on leased assets, expected credit losses, re-measurements of defined benefit obligations, and other adjustments.

7. Results of the quarter / nine months ended 31st December, 2016 are in compliance with the Indian Accounting Standards (Ind AS) notified by the Ministry of Corporate Affairs. Consequently, results for the quarter and nine months ended 31st December, 2015 have been restated to comply with Ind AS to make them comparable.

8. Figures of the previous quarters / year have been regrouped, wherever necessary to correspond with the current quarter / period. Hence, the corresponding component figures are comparable with all respective quarters / period financial results.

For Crompton Greaves Limited

Place: New Delhi K.N. NeelkantDate: 10th February, 2017 CEO & Managing Director

DIN: 05122610