Alps Industries Ltd. — Audit Report / Information 2020

Sep 4, 2020

Alps Industries Ltd.

REGD./CORP. OFFICE 57/2, Site-IV, Industrial Area

Sahibabad, Ghaziabad - 201010 Uttar Pradesh (India)

ALPS/062/SEII/2020-21 July 31, 2020

The GeneralManager	Ms.ErikaD'Sa,(Relationship Manager)
Market OperationsDeptt.,	CorporateRelationshipDeptt.,
NationalStock Exchangeof India Ltd.,	BombayStockE1CchanieLimited,
Plaza, 5th I"I00r,Exchange	IsrFloorNewTradingRing.
PIOINo.C/l.G-Block.ComplexBandra-Kurla	P. J.Rotundo Building,Towers,
(EI. Mumbal-400 051Sandra	Dalal Street, Fort,Mumbal-400 001.
Ph-91-22-26598101-8114	Ph - 022-22728995
Fax:022-26598237/38/2659 8100	II"ax:022-22723121
Email-cmlis!@.flse.co.in	3719/2037/2039/2041/2061
	Email-Intern.erika@bselndia.com•ccro.relarlonsabseindia.com

RE: DECLARATION IN COMPLIANCE OF CIRCULAR CIR/CFD/CMD/56/2016 DATED 27.5.2016 ON THE MODIFIED OPINION AUDIT REPORTS FOR THE FINANCIAL YEAR 2019-20.

Dear Sir,

DECLARATION

In terms of regulation 33 of the SESI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with the compliance of SESI circular no- CIR/CFD/CMD/56/2016 dated 27.5.2016, we hereby declare that Audit Report on Standalone & Consolidated financial Statements of MIs. Alps Industries Limited, having its registered office at 57/2, Site IV. Industrial Area Sahihabad, Ohaziabad (U.P.), as provided by the Statutory Auditors of the company is modified Opinion and Qualified Opinion related to the financial year ended on March 31, 2020. As required the Statement on Impact of Audit Qualifications is enclosed.

This is for your kind, information and record, please. - .

FOR ALPS INDUSTRIES LIMITED

~ACClt.Aj.J

(A.K. SING~L) PRESIDENT (CORP. ACCOUNTS) DESIGNATEDCHIEF FINANCIALOFFICER (CFO) STATEMENT ON IMPACT OF AUDIT QUALIFICATIONS (FOR AUDIT REPORT WITH MODIFIED OPINION, SUBMITTED ALONG-WITH ANNUAL FINANCIAL RESULTS FOR THE FINANCIAL YEAR ENDED ON MARCH 31, 2020 IN TERMS OF REGULATION 33 OF SECURITIES AND EXCHANGE BOARD OF INDIA (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS, REGULATIONS, 2015 AS AMENDED ON 9TH MAY, 2018 AND CIR/CFD/CMD/56/2016 DATED MAY 30, 2016 (STANDALONE)

NAME OF THE COMPANY: ALPS INDUSTRIES LTD. (L51109UPI972PLCOO3544)

STATEMENT ON IMPACT OF AUDIT QUALIFICATIONS FOR THE FINANCIAL YEAR ENDED MARCH 31, 2020.

(See Regulation 33 of the SEBI (LODR) (Amendment, Regulation., 2016,

l.	SINo.	r-.particular.	AuditedFigure.la.reportedbeforea(ijultingforqualification)	Fieure.A(iju.ted(auditedfigu.re.aftera(iju.tingforqualification.,
	l.	TurnoverITotalIncome	33189.64	33189.64
	2.	TotalI!:xpenditll rc	44699.22	191665.87
	3.	Net ProfitL(Lossl	(11509.58'	(158476.23'
	4.	Earningspershare(inRs.)	(29,43)	(405,06)
	5.	Total Assets	22833,19	22833.19
	6,	TotalLiabilities	78202.85	225169.50
	7,	Net Worth	(55369,66)	(202336.311
	8,	Anyotherfinancialitcm(s)(asfeltappropriateby-management)theContingentLiabilitytowards&DerivativeContracts	-	-

I. AUDIT QUALIFICATION lEACH AUDIT QUALIFICATION SEPARATELy)

Corporate Guarantee Etc.

Q,	DetailofAuditQualification	the'Refertonoteno.3810noteson accounts,theCompanyhasnotprouidedJoritsliability&towardsinterestpartof principalloan,waivedearlier,andimpactoJretainedearningsin tennsoJdraftrehabilitationschemeandnowrevokedbyitsconsentedlendersamountingtoRs.146966,65Iakh,accordinglythe loss forthe yearandloan liability wouldhavebeenincreasedandshareholder'sfundwouldhavebeenreducedtothat ext-ent,'
b.	Type ofAudit qualification	QualifiedOpinion
	(Qualifiedopinion/DisclaimerofIOpinionAdverseOpinion)
c.	Frequencyof qualification	2017-18SinceFinancialYear

(Whether)firstappearedtime/repetitive/sincehoelong continuing)
AuditQualification wherethe impact quantified by theAuditor,Management'sViews:	During earlier year, the lenders having morethan 83% of the secured debts of the Companyrevoked their consent to the DRS/settlementscheme circulated by erstwhile Hon'ble BIFR,interalia containing the restructuring of thedebts of the Company, which was partlyimplemented. The Company objected to the saidrevocation of consent being unjustified andbeyond terms of the scheme and furthersubmitted an offer for settlement. M/s EdelweissAssets Reconstruction Company Ltd., (presentlyholding more than 98% of the total secured debtof the Company) (EARC) in order to recover itsdues from the Company has also filed anOriginal Application before Debts RecoveryTribunal, Lucknow Bench, which application ispending adjudication. In addition to aboveEARC, under the provisions of SARFAESI, hasauctioned properties located at 58/1, Site IVIndustrial Area, Sahibabad, Ghaziabad (U.P.), B-2, Loni Road, Industrial Area, Ghaziabad (UP)and All that Plant & Machineries lying at 1 A,Sec.-10, IIE, SIDCUL, Haridwar and Lendershaving first pari passu charge over these assetshave adjusted their dues with the realizationmade thereof. EARC has also taken over thesymbolic possession of 3 properties Viz.Leasehold Land, Building andPlant &Machineries lying at Plot nos. A-2 & A-3, LoniRoad, Industrial Area, Ghaziabad (UP) and lA,Sec.-10, IIE, SIDCUL, Haridwar under section13(4) of the SARFAESI Act and issued a salenotice under Rule 8(6) and Rule 6(2) of theSecurity Interest (Enforcement) Rules, 2002. Theadjustments as may arise on account of furtheraction of lenders, if any, shall be made in thebooks of account in the year upon receipt ofinformation from them.The Company once again submitted a revisedsettlement/restructuring proposal with lenderswhich is under active consideration with them.Management of the Company expects to get the
COVI	settlement/restructuringrevisedproposal

Co2 Jy templat

		fromlendersaccordingly,andtheapprovedCompanywouldmeetingitsrevised financialbeobligations.Accordingly,thefinancialstatementsoftheCompanyforyearendedonMarch31,2020havebeenpreparedongoingconcernassumptionbasiscontinuewith theandearlierconsentedrestructuringscheme.Theimpact,arisinguponapprovaloftherevisedIsettlementrestructuringproposal,willgivenbeeffect in thestatementsoftheoffinancialyearfinalsettlementwithlenders.Hence,noprovisionconsideredinnecessaryinteresttheseaccountstowardsonentire&securedloanspartofprincipalsecuredloan,waivedearlier,andimpacton retainedearningsthereontotalingtoRs.146966.65asperLakhprovisionsofearlierconsentedscheme,whichthe Companycontinuesgivetill thetime(0eflecttlrevisedproposalissettlernenrestructuringfinallyapprovedbyitslenders.
e.	AuditQualificationwhere	istheimpactnotquantifiedby theAuditor:.
(i)	Management'sEstimationontheimpactofauditqualification	N.A
(ii)	Ifmanagementisunabletoestimatethe impact,reasonsfor thesame	NA
(iii)	Auditor'sCommentson(i) or(ii)above:	NA

For R.K. Gollil & Co.

(RoJeshKumar Gollil) Partner Membership NO.013632 Firm Regn No. - 000748C Place: Ghaziabad Dated: ,July 31. 2020 (/;:JJ';./ .: .2 (),,/0.3 (.:)) /}/)(Jil "Jf f) ~-?:;

San deep Agarwal -

Managing Director DIN: 00139439

L./-*

prabLShna A.K..Slngal (AuditCommittee President Chairman) (Corporate DIN:02569624 F&A)

CFO

'" 7!;d

,

STATEMENT ON IMPACT OF AUDIT QUALIFICATIONS (FOR AUDIT REPORT WITH MODIFIED OPINION) SUBMITTED ALONG·W1TH ANNUAL FINANCIAL RESULTS FOR THE FINANCIAL YEAR ENDED ON MARCH 31, 2020 IN TERMS OF REGULATION 33 OF SECURITIES AND EXCHANGE BOARD OF INDIA (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015 AS AMENDED ON 9TH MAY, 2018 AND ClR/CFD/CM.D/56/2016 DATED MAY 30, 2016 (CONSOLIDATED)

NAME OF THE COMPANY: ALPS INDUSTRIES LTD. (L51109UP1972PLCOO3544)

STATEMENT ON IMPACT OF AUDIT QUALIFICATIONS FOR THE FINANCIAL YEAR ENDED ON MARCH 31, 2020.

(See Regulation 33 of the SEBI (LODR) (Amendment) Regulations, 2016)

t~.inLakh)
l.	SINo.	Particula~	AuditedFigures(asreportedbeforeacijustingforQualificationl	AcijuatedFlgures(auditedfiguresafteradjusUngforQualifications)
	1.	IToTurnovertalIncome	33189.93	33189.93
	2.	TotalExpenditure	44442.50	191409.15
r--	3.	Net Profitl(Loss)	(11252.57)	(158219.22)
	4.	Earninzsoershare(in Rs.l	(28.771	(405.51)
	5.	TotalAssets	22615.46	22615.46
	6.	TotalLiabilities	78184.10	22S150.79t
	7.	Net Worth	(55568.64)	(202535.29
	8.	Anyotherfinancialitem(s)(asfellappropriatebythemanagement)-ContingentLiabilitytowardsDerivative&ContractsCorporateGuaranteeEtc.

II. AUDIT QUALIFICATION (EACH AUDIT QUALIFICATION SEPARATELY)

a.	DetailofAuditQualification	38'Refer tonote no.tothe noteson accounts, theCompanyhasnotprooidedforitsliability&towardsinterestofprincipal loan, waivedpartearlier,a.nd impactof retainedearningsintennsof draftrehabilitation schemeandnowrevokeditstoRs.byconsentedlendersamountingaccordingly thelossforyear146966.65 lakh,theand loan liabilitywould have been increasedandshareholder's fundwouldhavebeenreducedtoth.atextent.'
b.	qualificationTypeofAudit	OpinionQualified
	(Qualifiedopinion/ofDisclaimerIOpinionAdverseOpinion)
c.	Frequencyofqualification	SinceFinancialYear2017-18

(Whether appeared first)time/repetitive/since hoelong continuing)
Audit Qualification wherethe impact quantified by theAuditor, Management'sViews:	During earlier year, the lenders having morethan 83% of the secured debts of the Companyrevoked their consent to the DRS/settlementscheme circulated by erstwhile Hon'ble BIFR,interalia containing the restructuring of thedebts of the Company, which was partlyimplemented. The Company objected to the saidrevocation of consent being unjustified andbeyond terms of the scheme and furthersubmitted an offer for settlement. M/s EdelweissAssets Reconstruction Company Ltd., (presentlyholding more than 98% of the total secured debtof the Company) (EARC) in order to recover itsdues from the Company has also filed anOriginal Application before Debts RecoveryTribunal, Lucknow Bench, which application ispending adjudication. In addition to aboveEARC, under the provisions of SARFAESI, hasauctioned properties located at 58/1, Site IVIndustrial Area, Sahibabad, Ghaziabad (U.P.), B-2, Loni Road, Industrial Area, Ghaziabad (UP)and All that Plant & Machineries lying at 1 A,Sec.-10, IIE, SIDCUL, Haridwar and Lendershaving first pari passu charge over these assetshave adjusted their dues with the realizationmade thereof. EARC has also taken over thesymbolic possession of 3 properties Viz.Leasehold Land, Building and Plant &Machineries lying at Plot nos. A-2 & A-3, LoniRoad, Industrial Area, Ghaziabad (UP) and lA,Sec.-10, IIE, SIDCUL, Haridwar under section13(4) of the SARFAESI Act and issued a salenotice under Rule 8(6) and Rule 6(2) of theSecurity Interest (Enforcement) Rules, 2002. Theadjustments as may arise on account of furtheraction of lenders, if any, shall be made in thebooks of account in the year upon receipt ofinformation from them.The Company once again submitted a revisedsettlement/restructuring proposal with lenders
	which is under active consideration with them.Management of the Company expects to get therevisedsettlement/restructuringproposal

Co 2 for Alconyed

		approvedfromlendersandaccordingly,theCompanywould be meeting itsrevisedfinancialobligations.Accordingly,thefinancialstatementsoftheCompanyfor yearendedonMarch31, 2020havebeenpreparedongoingconcernassumptionbasisandcontinuewiththeearlierconsentedrestructuringscheme.Theimpact,arisinguponapprovaloftherevisedsettlement/restructuringproposal,will be giveneffect inthefinancialstatementsof theyearoffinal settlementwith lenders.Hence,noprovisionconsiderednecessaryintheseaccountstowardsintereSlonentire&securedloonsofprincipalsecuredloan,partwaived earlier,andimpactonretainedearningsthereontotalingto Rs.146966.65 Lakhasperprovisionsofearlierconsentedscheme,whichtillthe Companycontinuesto give effectthe timerevisedseulement/restructuringproposalisfinally approved by itslenders.
e.	AuditQualificationwhere	i.notbytheimpactquantifiedtheAuditor:-
(i)	Management'sEstimationontheimpactofauditqualification	N.A
(ii)	If managementisunabletoestimatetheimpact,reasonsfor the same	NA'
(iii)	Auditor's Commentson(i] or(iil above:	NA

For R. K. Govil & Co. h .{6') C arter ...~ccountants

(Rqjesh Kumar Govill Partner Membership No.013632 Firm Regn. No. - 000 748C Place: Ghaziabad

Sandeep Agarwal

Managing Director DIN: 00139439

p"~~hn~ ~(:.r;;

(Audit Committee President Chairman) (Corporate DIN: 02569624 F&A)

CFO

Dated: July 31, 2020

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