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Archies Ltd. — Annual Report 2020
Jul 17, 2020
62096_rns_2020-07-17_c652a1dc-5e21-46ff-842a-7f3c8e9fec91.pdf
Annual Report
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Date: iz" July, 2020
| 1) Asst. President, | 2) The Listing Department, |
|---|---|
| Listing Department,National Stock Exchange of India Limited, | CorporateRelationshipDepartment,BSELimited, |
| Exchange Plaza, C-l, Block-G,Bandra Kurla Complex,Bandra (East), Mumbai-400051 | i"Floor, New Trading Wing, P.J.Towers,Dalal Street Fort, Mumbai-400001 |
| Scrip 10 - ARCHIES | Scrip Code - 532212 |
Sub: Submission of Outcomes of Board Meeting and Audited Financial Results for the quarter and year ended 31st March, 2020
-
- Intimation and disclosure under Regulations 30 & 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for Audited Financial Results and Independent Auditor's Report for the quarter and year ended 31.03.2020
-
- Appointment of M!s N Narasimhan & Associates, Chartered Accountants, New Delhi as Internal Auditors of the Company
Dear Sir! Madam,
Pursuant to Regulation 30 and 33 of the SEBI(Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform you that the Board of Directors of Archies Limited ("Company") in its meeting held today approved the Audited Financial Results (Standalone) for the Quarter and Year ended 31't March, 2020 of the Company as per Indian Accounting Standards (lND-AS) along with the Independent Auditor's Report. Copy of the results along with the Independent Auditor's Report of Statutory Auditors is attached herewith for your perusal.
Further due to the applicable provisions of SEBI(Listing Obligations and Disclosure Requirements) Regulations, 2015 and' the Companies Act, 2013, Mis N Narasimhan & Associates, Chartered Accountants, New Delhi is appointed as Internal Auditors of the Company with immediate effect for the financial year 2020-21.
The above information will also be available on the Company's Website, www.archiesonline.com .
The meeting of the Board of Directors commenced on 12:15 P.M. and concluded at 02:00 P.M.
Pleasetake the above on records.
Thanking you.
Yours sincerely
Hitesh Kumar (Company Secretary & Compliance Officer)
ARCHIES LIMITED
c -113, NARAINA INDUSTRIAL AREA. PHASE -1, NEW DELHI-11oo28 ONDIA), GIN : L36999HR1990PlC041175 TEL; 91·11-41410000. 41412222, Fax: 91-11-41410060. EmaU: [email protected], WebsITe: www.archiesonllne.com REGISTERED OFFICE: PLOT NO. 191- F, SECTOR - 4. I.M.T. MANESAR, GURUGRAM ·122050, HARYANA ONDIA)
CHARTERED ACCOUNTANTS
LOWER GROUND FLOOR C-4/S SAFDARJUNG DEVELOPMENT AREA NEW DELHI - 110016 PHONES ; 49562700 (20 lines) TELEFAX: 26511158
49887 E-MAIl: In([email protected]
Independent Auditors' Report on Audited Quarterly Financial Results and Year to Date
To
The Board of Directors of ARCHIESLIMITED
REPORTON THE AUDIT OF THE FINANCIALRESULTS
Opinion
We have audited the accompanying quarterly financial results of Archies Limited ("the Company") for the quarter ended 31 March, 2020 and the year to date results for the period from 01 April, 2019 to 31 March, 2020, attached herewith, being submitted by the Company pursuant to the requirement of Regulations 33 and 52 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("Listing Regulations").
Results of the Company Pursuant to the Regulations 33 and 52 of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015 as_amended
In our opinion and to the best of our information and according to the explanations given to us, these financial results:
- are presented in accordance with the requirements of Regulation 33 of the Listing Regulations in this regard; and
- ii. give a true and fair view in conformity with the recognition and measurement principles laid down in the applicable accounting standards and other accounting principles generally accepted in India of the net loss and other comprehensive loss and other financial information for the quarter ended 31 March, 2020 as well as the year to date results for the period from 01 April, 2019 to 31 March, 2020.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013 (lithe Act"), Our responsibilities under those Standards are further described in the Auditors' Responsibilities for the Audit of the Financial Results section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the

financial results under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Management's Responsibilities for the Financial Results
These quarterly financial results as well as the year to date financial results have been prepared on the basis of the annual financial statements. The Company's Board of Directors are responsible for the preparation and presentation of these financial results that give a true and fair view of the net loss and other comprehensive loss and other financial information in accordance with the applicable accounting standards prescribed under Section 133 of the Act read with the relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulations 33 and 52 of the Listing Regulations. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial results that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial results, the Board of Directors are responsible for assessingthe Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Company's financial reporting process.
Auditors' Responsibilities for the Audit of the Financial Results
Our objectives are to obtain reasonable assuranceabout whether the financial results as .. a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial results.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
- Identify and assessthe risks of material misstatement of the financial results, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(0 of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.
- Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the financial results or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial results, including the disclosures, and whether the financial results represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Other Matter
The financial results include the results for the quarter ended 31 March, 2020 being the balancing figure between the audited figures in respect of the full financial year ended 31 March, 2020 and the published unaudited year-to-date figures up to the third quarter of the current financial year, which were subjected to a limited review by us, as required under the Listing Regulations.

For and on behalf of J. P., KAPUR & UBERAI Chartered Accountants (Firm Registration No. 000593N)
H. S. Khurana PARTNER (Membership No. 017779) uj)I(", 'leo, ·l11·'lAA-AC4!1 b"lfi:J
Date: 17 July 2020
Place: New Delhi
ARCHIES LIMITED
Statement of Audited financial results for the Quarter and Year ended 31 March 2020
| (~ in Lakhs) | |||||||
|---|---|---|---|---|---|---|---|
| QuarterEnded | Year Ended | ||||||
| S.No. | PARTICULARS | 31.03.2020 | 31.12.2019 | 31.03.2019 | 31.03.2020 | 31.03.2019 | |
| Audited | Unaudited | Audited | Audited | Audited | |||
| Income: | 3963.35 | 13541.59 | 15874.85 | ||||
| a. | Income from Operations | 2989.38 | 4031.17118.45 | 80.18 | 390.20 | 261.59 | |
| b. | Other Operating Income | 71.66 | 13931.79 | 16136.44 | |||
| I | Revenue from operations | 3061.04 | 4149.62 | 4043.53 | 183.84 | ||
| II | Other Income | 39.05 | 49.18 | 63.83 | 177.19 | ||
| III | Total Income(I + II) | 3100.09 | 4198.80 | 4107.36 | 14108.98 | 16320.28 | |
| IV | Expenses | ||||||
| a. | Cost of Materials Consumed | 235.13 | 260.67 | 384.81 | 1041.10 | 1100.31 | |
| b. | Purchase of Stock-in-Trade | 536.11 | 1430.35 | 621.54 | 4789.46 | 5098.92 | |
| c. | Changes in inventories of finished goods, | 201.20 | 17.60 | 422.71 | (707.43) | (334.37) | |
| work-in-progressand stock-in-trade | |||||||
| d. | Employee benefits expense | 668.62 | 744.44 | 853.64 | 3029.22 | 3187.89 | |
| e. | Finance costs | 184.42 | 530.09 | 64.84 | 958.41 | 269.79 | |
| f. | Depreciation and amortisationexpense | 251.46 | 911.66 | 92.16 | 1842.01 | 357.56 | |
| g. | Rent | 279.12 | (344.80) | 617.18 | 639.61 | 2412.88 | |
| h. | Other expenses | 894.09 | 853.47 | 1133.92 | 3538.51 | 4154.63 | |
| Total Expenses | 3250.15 | 4403.48 | 4190.80 | 15130.89 | 16247.61 | ||
| V | Profit / (Loss)before exceptionaland extraordinary | (150.06) | (204.68) | (83.44) | (1021.91) | 72.67 | |
| VI | items and tax (III - IV)Exceptional Items | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Profit / (Loss)before extraordinaryitems and | (150.06) | (204.68) | (83.44) | (1021.91 ) | 72.67 | ||
| VII | tax (V - VI) | ||||||
| VIII | ExtraordinaryItems | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| IX | Profit / (Loss)before tax (VII - VIII) | (150.06) | (204.68) | (83.44) | (1021.91) | 72.67 | |
| X | Tax expense: | ||||||
| a. | Current tax | 0.00 | 0.00 | 14.96 | 0.00 | 14.96 | |
| b. | Deferred tax | (419.75) | 301.26 | (48.81) | (312.43) | 0.06 | |
| c. | MAT Credit Entitlement | 0.00 | 0.00 | (14.96) | 0.00 | (14.96) | |
| d. | (Excess)/ Short Provision for taxes for earlier years | 8.10 | 0.00 | 0.00 | 8.10 | 0.00 | |
| XI | Profit / (Loss) for the period(IX - X) | 261.59 | (505.94) | (34.63) | (717.58) | 72.61 | |
| XII | Other ComprehensiveIncome | ||||||
| A. | Item that will not be reclassifiedsubsequentlyto profit | ||||||
| or lossI (Losses) of defined benefit plansRemeasurementsGains | (91.66) | (2.61) | (39.43) | (102.10) | (36.75) | ||
| 25.69 | 0.54 | 10.97 | 28.40 | 10.22 | |||
| Income tax on above | |||||||
| B. | Items that will be reclassifiedsubsequentlyto profitor | ||||||
| loss | |||||||
| Income tax relating to items that will be reclassified | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||
| subsequently to profit or lossTotal of Other Comprehensiveincome | (65.97) | (2.07) | (28.46) | (73.70) | (26.53) | ||
| 195.62 | (508.01) | (63.09) | (791.28) | 46.08 | |||
| XIII | Total Comprehensiveincomefor the period(XI+XII) | ||||||
| (Comprising Profit and Other ComprehensiveIncome for the | |||||||
| period)(Face Value of Rs. 2/- each)Paid up Equity Capital | 675.62 | 675.62 | 675.62 | 675.62 | 675.62 | ||
| XIV | Reservesexcludingrevaluationreserves | - | - | - | 9,022.86 | 9,814.14 | |
| XV | EarningPer Share (EPS) in Rs. (Not Annualised)_ | ||||||
| XVI | L | 0.77 | (1.50) | (0.11) | (2.12) | 0.21 | |
| ~Sa. Basicvb. Diluted | •~0.77 | (1.50 | 10.11\ | (2.121 | 0.21 | ||
| DL)Y |
C-113,NARAJNAINOUASE-1' NEWDELHI-1100281IND~~S .'lR!OI,:'L1,9, TEL.: 91-11-41410000, 41412222, Fax: 91-11-41410060, Email: [email protected], Website: www.archiesonline.com REGISTERED OFFICE: PLOT NO. 191- F,SECTOR - 4, I.M.T. MANESAR, GURUGRAM -122050, HARYANA (INDIA)
__________________________________________ IIIIIIIIIIIIII---
STATEMENT OF ASSETS AND LIABILITIES
| (~in Lakhs) | ||
|---|---|---|
| As at | As at | |
| 31 March 2020 | 31 March 2019 | |
| ASSETS | ||
| Non-Current Assets | ||
| Property, Plant and Equipment | 7,505.03 | 7,521.78 |
| Capital work-in-progress | 17.32 | 32.67 |
| Right of Use Assets | 5,7n.60 | - |
| Financial Assets | ||
| Loans | 753.04 | 842.13 |
| Deferred Tax Assets (Net) | 110.n | - |
| Other Non Current Assets | 195.28 | 246.00 |
| Income Tax Assets (Net) | 110.76 | 87.75 |
| Total Non-Current Assets | 14,469.80 | 8,730.33 |
| Current Assets | ||
| Inventories | 5,820.76 | 5,085.85 |
| Financial Assets | ||
| (a) Trade Receivables | 1,599.32 | 1,910.22 |
| (b) Cashand Cash Equivalents | 68.44 | 164.14 |
| (c) Bank Balances other than (b) above | 43.19 | 55.09 |
| (d) Loans(e) Other Financial Assets | 53.63532.49 | 50.18524.42 |
| Other Current Assets | 253.95 | 327.69 |
| Total Current Assets | 8,371.78 | 8,117.59 |
| Total Assets | 22,841.58 | 16,847.92 |
| EQUITY AND LIABILITIES | ||
| EQUITY | ||
| Equity Share Capital | 675.62 | 675.62 |
| Other Equity | 10,333.96 | 11,125.24 |
| Total Equity | 11,009.58 | 11,800.86 |
| LIABILITIES | ||
| Non-Current Liabilities | ||
| Financial Liabilities | ||
| Lease Liabilities | 4,975.42 | - |
| Other Financial Liabilities | 89.60 | |
| Provisions | 149.82 | 54.93 |
| Deferred Tax Liabilities (Net) | - | 230.07 |
| Other Non-Current Liabilities | 27.63 | 35.93 |
| Total Non-Current Liabilities | 5,152.87 | 410.53 |
| Current Liabilities | ||
| Financial Liabilities(a) Borrowi ngs | 2,832.10 | 1,601.61 |
| (b) Lease Liabilities | 1,229.03 | |
| (c) Trade PayablesMicro and Small Enterprises | 40.31 | 48.88 |
| 1,235.12 | ||
| Other than Micro and Small Enterprises | 1,108.991,225.85 | 1,451.05 |
| (d) Other Financial Liabilities | 159.00 | 222.31 |
| Other Current Liabilities | 83.85 | n.56 |
| ProvisionsTotal Current Liabilities | 6,679.13 | 4,636.53 |
| Total Equity and Liabilities | 22,841.58 | 16,847.92 |

C -113, NARAINA INDUSTRIAL AREA, PHASE -1, NEW DELHI-11 0028 (INDIA), CIN : L36999HR1990PLC041175 TEL.: 91-11-41410000, 41412222, Fax: 91-11-41410060, Email: [email protected], Website: www.archiesonline.com REGISTERED OFFICE: PLOT NO. 191- F, SECTOR - 4, I.M.T. MANESAR, GURUGRAM -122050, HARYANA (INDIA)
______________________________________________ IIIIIIIIIIIIIII _

ARCHIES LIMITED
Cash flow Statement for the year ended 31 March 2020
| (~ in Lakhs) | |||
|---|---|---|---|
| Particulars | 31 March 2020 | 31 March 2019 | |
| A. | Cash Flow from OperatingActivities: | ||
| Profitl(Loss) before Tax as per Statementof Profit and Loss | (1,021.91) | 72.67 | |
| Adjustedfor: | |||
| Depreciationand AmortisationExpense | 1,842.01 | 357.56 | |
| Finance Costs | 958.41 | 269.79 | |
| Loss I(Profit) on Sale I Disposal of Property,Plant and Equipment(net) | 31.66 | 48.29 | |
| InterestIncome | (71.40) | (77.82) | |
| OperatingProfit beforeWorking Capitalchanges | 1,738.77 | 670.49 | |
| Adjustedfor: | |||
| Trade Receivables | 310.90 | 288.95 | |
| Inventories | (734.91) | 91.72 | |
| Other Receivables | 177.92 | ·490.82 | |
| Trade Payable | (134.70) | 150.68 | |
| Other Payables | (311.24) | 22.33 | |
| Cash generatedfrom operations | 1,046.74 | 733.35 | |
| Taxes Paid (Net) | (23.06) | (12.58) | |
| Net Cash Flow from OperatingActivities(A) | 1,023.68 | 720.77 | |
| B. | Cash Flow from InvestingActivities | ||
| Expenditureon Property,Plant and Equipment | (566.35) | (578.56) | |
| from Sale I Disposal of Property,ProceedsPlant and Equipment | 150.02 | 125.13 | |
| Investmentsin Fixed Deposit | (26.45) | (123.34) | |
| Proceedsfrom Maturity of Fixed Deposit | 37.05 | 113.76 | |
| InterestIncome Received | 70.08 | 76.04 | |
| Net Cash Flow Used in InvestingActivities(B) | (335.63) | (386.97) | |
| C. | Cash Flow from FinancingActivities | ||
| Borrowings·Current(net) | 1,230.49 | ·21.95 | |
| Paymentof Lease Liabilities | (1,069.33) | ||
| Interestand Other FinancialCharges Paid | (944.91) | (270.02) | |
| Net Cash Flow Used in FinancingActivities(C) | (783.75) | (248.07) | |
| I (Decrese)Net Increasein Cash And Cash Equivalents(A) + (B) + (C) | (95.70) | 85.73 | |
| Opening Balance of Cash and Cash Equivalents | 164.14 | 78.41 | |
| Closing Balanceof Cash and Cash Equivalents | 68.44 | 164.14 |
Change In Liabilities arising from Financing Activities
| 1 April 2019 | Cash Flow | 31 March 2020 | |
|---|---|---|---|
| Borrowing· Current | 1,601.61 | 1,230.49 | 2,832.10 |
| 1,601.61 | 1,230.49 | 2,832.10 | |
| 1 April 2018 | Cash Flow | 31 March 2019 | |
| Borrowing- Current | 1,579.66 | 21.95 | 1,601.61 |
| 1,579.66 | 21.95 | 1,601.61 |
ARCHIES LIMITED
C -113, NARAINA INDUSTRIAL AREA, PHASE -1, NEW DELHI-11 0028 (INDIA), CIN : L36999HR1990PLC041175 TEL: 91-11-41410000, 41412222, Fax: 91-11-41410060, Email: [email protected], Website: www.archiesonline.com REGISTERED OFFICE: PLOT NO. 191- F,SECTOR - 4, I.M.T. MANESAR, GURUGRAM -122050, HARYANA (INDIA)
---------------------------- IIIIIIIIIIIIIII----
ARCHIES LIMITED
Segment wise Revenue, Results and Capital Employed
| (~ in Lakhs) | ||||||
|---|---|---|---|---|---|---|
| Quarter Ended | Year Ended | |||||
| S.No. | Particulars | 31.03.2020 | 31.12.2019 | 31.03.2019 | 31.03.2020 | 31.03.2019 |
| Audited | Unaudited | Audited | Audited | Audited | ||
| 1 | SeQment Revenue | |||||
| a | Greetino Cards | 448.23 | 497.97 | 662.89 | 1.816.98 | 2.406.49 |
| b | Stationery | 603.17 | 892.49 | 715.93 | 2.678.36 | 2.716.84 |
| c | Gifts | 1,867.52 | 2,537.88 | 2,488.06 | 8,756.30 | 10,489.83 |
| d | Others | 70.46 | 102.83 | 96.47 | 289.95 | 261.69 |
| Total | 2,989.38 | 4,031.17 | 3,963.35 | 13,541.59 | 15,874.85 | |
| Less: Inter Segment Revenue | - | - | - | - | - | |
| Net Sales I Income from Operations | 2,989.38 | 4,031.17 | 3,963.35 | 13,541.59 | 15,874.85 | |
| 2 | senment Results | |||||
| Profit I (Loss) before tax and finance costs | ||||||
| a | Greeting Cards | 95.13 | 85.46 | 61.19 | 161.88 | 267.99 |
| b | Stationery | 188.43 | 96.74 | 105.73 | 350.67 | 401.32 |
| c | Gifts | (136.41 | 27.26 | 9.98 | (262.12) | 432.48 |
| d | Others | 28.89 | 6.80 | 0.13 | 40.48 | 20.60 |
| Total | 176.05 | 216.26 | 177.03 | 290.91 | 1,122.39 | |
| Less: j) Finance Costs | 184.42 | 530.09 | 84.84 | 958.41 | 269.79 | |
| ii) Other Un-allocable Exoenditure | 141.69 | (109.15) | 195.63 | 354.41 | 779.93 | |
| net off Un-allocable Income | ||||||
| Total Profit Before Tax | (150.06) | (204.68) | (83.44) | (1,021.91) | 72.67 | |
| 3 | Capital Employed | |||||
| Segment Asset - Segment Liabilities) | ||||||
| a | Segment Assets | 22,841.58 | 24,838.66 | 16,847.92 | 22,841.58 | 16,847.92 |
| b | Segment Liabilities | 11,832.00 | 14,032.75 | 5,047.06 | 11,832.00 | 5,047.06 |
| Capital Emoloved | 11,009.58 | 10,805.91 | 11,800.86 | 11,009.58 | 11,800.86 | |
| Total | 11,009.58 | 10,805.91 | 11,800.86 | 11,009.58 | 11,800.86 |
Notes
1 The above results have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on 17 July 2020.
2 These financial results have been prepared in accordance with the Companies (Indian Accounting Standards) Rule, 2015 prescribed under Section 133 of the Companies Act. 2013 and other recocnlsed accountino practices and policies to the extent applicable.
3 Due to the nature of business and common manufacturing facilities for various segments, a reasonable allocation of Capital Employed to various segments is currently not practicable.
4 Previous year's figures have been rearranged and regrouped, wherever necessary.
5 The figures for the quarter ended March 31, 2020 are the balancing figures between the audited figures in respect of full financial year and unaudited year to date fiqures uoto the previous Quarter
- 6 Effective 1 April 2019 (transition date), the new Indian accounting standard i.e., Ind AS 116 "Leases" became effective, The company has adopted the new standard with modified approach and recognised asset in the form of 'Right of Use Asset' (representing its right of use the leased asset over the lease term) and also liability towards present value of the balance of future lease payments for the leases. In the statement of profit and loss for the Year ended 31 March 2020, the nature of expenses in respect of operating leases has changed from lease rent in previous period to depreciation cost for the righ of use asset and finance cost for interest on lease liability. Due to said change profit is decreased by ~329.36 lakhs for the Year ended 31 March 2020
- 7 The outbreak of Coronavirus (COVID-19) pandemic globally and in India is causing significant disturbance and slowdown of economic activity. Measures taken to contain the spread of the virus, including travel bans, quarantines, social distancing, and closures of non-essential services have triggered significant disruptions to businesses, resulting in an economic slowdown. COVID19 is significantly impacting business operation of the company, by way of interruption in production, supply chain disruption, unavailability of personnel, closurellockdown of production facilities etc. On 24 March 2020, the Government of India ordered a nationwide lockdown for 21 days which further got extended till 3 May 2020 to prevent community spread of COVID-19 in India resulting in significant reduction in economic activities. The Operations of the Company have resumed in a partial manner at manufacturing location and at stores from 8th May 2020. In assessing the recoverability of Company's assets such as, Inventories, receivables, Security deposits etc. the Company has considered internal and external information. The Company expects to recover the carrying amount of the assets.
Date: 17 July 2020 Place: New Delhi
ARCHIES LIMITED
C -113, NARAINA INDUSTRIAL AREA, PHASE -1, NEW DELHI-11 0028 (INDIA), CIN : L36999HR1990PLC041175 TEL.: 91-11-41410000, 41412222, Fax: 91-11-41410060, Email: [email protected], Website: www.archiesonline.com REGISTERED OFFICE: PLOT NO. 191- F,SECTOR- 4, I.M.T. MANESAR, GURUGRAM -122050, HARYANA (INDIA)
-------------------- IIIIIIIIIIIIII--

Date: 17th July, 2020
| 1) Asst. President, | 2) The Listing Department, |
|---|---|
| Listing Department, | CorporateRelationshipDepartment, |
| NationalStock Exchange of India Limited, | BSELimited, |
| Exchange Plaza, C-l,Block-G, | stFloor,1New TradingWing,P.J. Towers, |
| Bandra Kurla Complex, | Dalal StreetFort, Mumbai-400001 |
| Bandra (East),Mumbai-400051 | |
| Scrip 10 - ARCHIES | Scrip Code - 532212 |
Sub: Declaration on Audit Reports with an unmodified opinion
Dear Sir/Madam,
Pursuant to Regulation 33(3)(d) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby declare that Mis J.P.,Kapur & Uberai, Chartered Accountants, Statutory Auditors of the Company, have issued Audit Reports with an unmodified opinion on the Audited Standalone Financial Results of the Company for the year ended March 31, 2020.
Please take the above on your records.
Thanking You.
Yours faithfully,
For Archies Limited
Investor E-mail id:[email protected]
Dilip Seth Director (Finance) & Chief Financial Officer
ARCHIES LIMITED
C -113, NARAINA INDUSTRIAL AREA, PHASE -1, NEW DELHI-11 0028 (INDIA), CIN : L36999HR1990PLC041175 TEL.: 91-11-41410000, 41412222, Fax: 91-11-41410060, Email: [email protected], Website: www.archiesonline.com REGISTERED OFFICE: PLOT NO. 191- F,SECTOR - 4, I.M.T. MANESAR, GURUGRAM -122050, HARYANA (INDIA)
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