International Paper APPM Ltd has posted a huge jump in net profit at ₹32.73 crore for the fourth quarter ended March 31, 2018, against a profit of ₹15.58 crore for the corresponding quarter last year, thereby nearly doubling the profit.
The paper company posted total income of ₹340.48 crore for the March quarter against ₹341.34 crore for the same period in the previous fiscal.
GST impact
For the financial year ended March 31, 2018, the company’s net profit was significantly up at ₹83.06 crore against ₹32.39 crore and the income was up at ₹1285.09 crore against ₹1236.89 crore for the previous fiscal.
With the government introducing the Goods and Services Tax, the company’s revenue from operations for the period beginning July 1, 2017, to March 31, 2018, has been presented net of GST. Revenue from operations of earlier periods included excise duty, which has now been subsumed in GST.
Potential liability
Following the levy of electricity duty by the State government, and inherent uncertainty in predicting the outcome of the litigation, the company management has made a provision amounting to ₹23.57 crore during the previous year towards potential liability in the event of unfavourable verdict.
Additionally, ₹15.71 crore has been disclosed as contingent liability.
The company auditors Deloitte Haskins & Sells too, mentioned about the provision made by the company which has been treated as contingent liability.
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