Ashima Ltd — Interim / Quarterly Report 2021

Sep 11, 2020

Regd. Office : Texcellence Complex, Near Anupam Cinema, Khokhra, Ahmedahad - 380 02lr lndia Phone 291-7947777000 o Fax 291-7%22773061 o E-mail :texcellenc@tdrimain CIN No : t99999Gf 1982PtC005253

11th September,2020

To, BSE Limited Corporate Relationship Department, 25th Floor, P J Towers, Dalal Street, Fort, Mumbai - 400001. SECURITY CODE NO. 514286

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National Stock Exchange oflndia Ltd Exchange Plaza 5tl'Flool Plot no. C/1, G Block Bandra Kurla Complex, Bandra (East), Mumbai- 400051. SECURITY CODE NO. ASHIMASYN

Dear Sir,

• Sub : 1. Outcome of the Board meeting held on Friday, 11tt September,202O 2. Unaudited Standalone and Consolidated Financial Results for the quarter ended on 3Otn )une, 2020
• Ref Regulation 30 read with Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('SEBI LODR Regulations")

With reference to the captioned subject matter, we hereby inform you that the Board of Directors of the Company at its meeting held today inter-alia transacted following businesses;

• 1. Approval ofUnaudited Standalone and Consolidated Financial Results for the quarter ended on 3Qttr June, 2020.
• 1. Issue and allotment of 13,84,88,161 Equity shares of Rs. 10/- each of the company to the shareholders of Ashima Dyecot Pvt. Ltd. pursuant to the Scheme of Amalgamation.

Pursuant to the Scheme of Amalgmation and Arrangement between Ashima Dyecot Private Limited ["Transferor Company") and Ashima Limited ["Transferee Company") as approved by the Hon'ble National Company Law Tribunal, Ahmedabad Bench vide its order dated 22na luly, 2020, the Board of Directors of the Company in the meeting held today, allotted 13,84,88,76L fully paid up equity shares of Rs. l0/- each to the shareholders of the Transferor Company whose names are recorded in the Register of Members of Ashima Dyecot Pvt, Ltd. as on Record Date i.e. 29tt fuly 2020 inthe following ratio;

"348 (Three Hundred Foret Eight) New Equity shares in Rs.10/- (Rupees Ten Only) eqch, credited as fully paid-Transferee Company of the face value of up for every 100 ()ne Hundred) equity share of Rs.10/- (Rupees Ten )nly) each fully paid-up by such member in the Transferor Company".

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Regd. Office : Texcellence Complex, Near Anupam Cinema, Khokhra, Ahmedabad - 380 021, India. E-mail: texcellence@ashima.in Phone: 91-79-67777000 . Fax: 91-79-22773061 CIN No: L99999GJ1982PLC005253

Necessary applications are being made by the Company to the stock exchanges for seeking relevant approval for listing/trading of the aforesaid allotted shares and therefore these shares will not be available for trading till relevant directions for listing/ trading are received.

Pursuant to Regulation 30 and 33 of the SEBI (LODR), Regulations, 2015, we enclose herewith the following:

• 1. Unaudited Standalone and Consolidated Financial Results of the Company for the quarter ended on 30th June, 2020.
• 1. Limited Review Report of the Statutory Auditors of the Company on the Unaudited Financial Results for the quarter ended on 30th June, 2020. Kl

The meeting of Board of Directors commenced at $11.3\pm$ a.m. and concluded at $11.52$ a.m./p.m.

We request you to kindly bring the above information to the notice of the members.

Thanking you, Yours faithfully, A For ASHIMA LIMITED زم) ď Ahmedaba DIPAK THAKER COMPANY SECRETARY æ Encl: As above

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	ASHIMA LIMITED
	REGD. OFFICE:TEXCELLENCE COMPLEX, NEAR ANUPAM CINEMA, KHOKHARA AHMEDABAD-380 021, GUJARAT, INDIA
	CIN: L99999GJ1982PLC005253
	E.MAIL: texcellence@ashima.in # PHONE:91-79-67777000 # FAX:91-79-22773061			(Rs. in lacs, except per share data)
	STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED ON 30th JUNE, 2020				Year ended
		Quarter ended
	Particulars	30/06/2020	31/03/2020	30/06/2019	31/03/2020
Sr.No.	(2)	(3)	(4)	(5)	(6)
(1)		Unaudited	Audited (Refer	Unaudited	Audited
			Note 4)
$\mathbf{1}$	Income from Operations	822	5,732	7,956	28,544
	(a) Revenue from Operations	186	479	92	776
	(b) Other Income	1,009	6,211	8,048	29,320
	Total Income
$\overline{2}$	Expenses	552	2,975	3.934	13,545
	(a) Cost of material consumed		163	187	672
	(b) Purchase of stock-in-trade	(299)	(118)	152	1.174
	(c) Changes in inventories of Finished goods, work-in-progress and stock-in-trade	650	1,034	1,098	4,491
	(d) Employee benefits expense	40	114	(78)	203
	(e) Finance costs	114	127	151	537
	(f) Depreciation and amortization expense	570	2,034	2,638	9,036
	(g) Other expenses	1,629	6,329	8.082	29,658
	Total Expenses	(621)	(118)	(34)	(339)
3	Profit/(Loss) before exceptional items and tax
4	Exceptional items	(621)	(118)	(34)	(339)
5	Profit/(Loss) before tax
6	Tax Expense
	(a) Current tax
	(b) Deferred tax	(621)	(118)	(34)	(339)
7	Profit/(Loss) for the period
8	Other Comprehensive Income
	Items that will not be reclassified to profit or loss		(93)		(93)
	----- Re-measurement losses on post employement defined benefit plans
	----- Income tax effect	(621)	(211)	(34)	(431)
9	Total Comprehensive Income	19,166	19,166	19,166	19,166
10	Paid up share capital (par value Rs.10/- each, fully paid) (See Note - 9)				3,057
11	Other equity
12	Earnings per share [EPS] (of Rs. 10/- each) (not annualised) (See Note - 9)	(0.32)	(0.06)	(0.02)	(0.18)
	Basic and diluted EPS before Exceptional items [in Rs.]Basic and diluted EPS after Exceptional items (in Rs.)	(0.32)	(0.06)	(0.02)	(0.18)

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NOTES:
	1 These financial results have been reviewed by the Audit Committee andhave been approved by the Board of Directors at their resp€ctive meetings held on11th September,2020.
	2 The above results for the Quarter: ended on June 30, 2020 have been preparedin accordance with the Companies (lndian Accounting
	Standards) Rules, 2015 (lnd AS), prescribdd under Section 133 of the Companies Act, 2013, and other recognised accounting practices and policies to theextent applicable.
	3 The format of the above results as prescribed inSEBI's Circular CIR/CFD/CMD/LSI2OL5 dated 30th November, 20i.5 has been modified to comply with therequirements of SEBI's Circular dated sth July, 2016, lnd AS and Schedule ill [Division il] to the Companies Act, 2013.
	4 The figures of the quarter ended 31st March, 2020 are the balancing figuresbetween the audited figures in respect of the full financial year and thepublished year to date figures upto 31st December, 2019.
	5 The company has one segment of activity namely ',Textiles,,.
	6 Figures of previous periods have been regrouped / rearranged wherever necessary.
	7 AsregardsdeferredtaxasperlndAS-l2on"lncomeTaxes",thereisanetdeferredtaxassetforthepastyearsandfortheperioduptoJune30,2020.As a matter of prudence, the company has not recognised the said deferred tax asset.
	8 ln March 2020, the WHO declared COVID-19 a global pandemic. Consequently, Government oflndia declared a nation-wide lockdown from 24th March 2020.This has an adverse impact on operational performance of the company and its financial position as a result of subdued activity in the textile market. Companyhas been facing liquidity crunch due to suspension of operations and is striving to manage its cashflows within the limitations.
	After lifting of the lockdown, The Company has resumed its business operations on a gradual basis in line with the guidelines issued by the Governrnentauthorities. The Company is waiting for the business conditions to improve and demand to pick up, so commencement of normal operations will take some more time.
	ln light of these circumstances, the Company has reviewed the possible impacts of CoVID-19 on the carrying amounts of its assets and liabilities. Accordingly,apart from the provisions made for Rs.197 lacs as diminution in value of finished goods stock and Rs.124 lacs as allowance for expected credit loss on receivablesbalances in the financials of the previous quarter, no further provisioning has been made during the quarter ended 30th June, 2020. There has not been anysignificant reduction in sales realisation during the quarter. As regards trade receivables, there have been instances of cheques not being honoured by'parties in some cases, for which the company has taken proper legal actions, but this does not confirm any credit loss in such cases as of now. The impactmay vary in future periods, depending on future developments on Covid-19 front and its impact on the business of the company.
	The financial performance of the Company for the quarter has suffered due to lockdown and disruption of business, which is evident in sales and profitabilityfigures presented above. Therefore, results for the quarter are not comparable to previous corresponding period results.
	However, the Company does not anticipate any challenges in its ability to continue as going concern. ln this unusual and difficult business situation, the Companyhas taken measures for effective cost management. The Company is closely monitoring the situation as it evolves in the future.
	9 The details given above are after giving effect of merger in terms of cancellation. ofshares held in Ashima Limited by the merging company Ashima DyecotPrivate Limited and issue and allotment of new equity shares, as approved by the Board of Directors at the meeting held on L1th September, 2020. EpS iscalculated for all the periods based on aggregate paid up equity share capital including shares issued upon merger.
	10 Figures are rounded off to the nearest Rupees inlacs.11 The financial results of the Company are available at the websites ofBSE Ltd. at www.bseindia.com, National Stock Exchange of lndia Ltd. atwww.nseindia.com and at www.ashima.in
	For, ASHIMAmedabad
	AHMEDABADCHINTAN N. PARIKHl1TH SEPTEMBER, 2O2OCHAIRMAN & MANAGING DIRECTOR

7th Floor, Heritage Chambers B/h. Bikanerwala, Off S.M. Road, Nr. Azad Society, Nehru Nagar, Ahmedabad-38o 015. Phone : (B) 079 - 2647 2OOO E mail : contact@mmsco.in Website :www.mmsco.in

MUKESH M. SHAH & CO.

CHARTERED ACCOUNTANTS AHMEDABAD . MUMBAI . BANGALORE

Limited Review Report on Quarterly Standalone Financial Results of Ashima Limited pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015

To, The Board of Directors, Ashima Limited Ahmedabad

We have reviewed the accompanying statement of Standalone unaudited financial results of Ashima Limited ['the Company'], for the quarter ended on June 30, 2020 ['the Statement'] attached herewith, being submitted by the company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulation, 20'J.5, read with SEBI Circular No. CIR/CFD/FAC/62/2016 dated 5th July, 2016 as amended by SEBI Circular No. CIR/CFD/CMD1,|44/201,9 dated 29th March, 2019.

This statement, which is the responsibility of the Company's Management and approved by the Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in the lnd-AS 34, "lnterim Financial Reporting" prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in lndia. Our responsibility is to issue a report on these financial statements based on our review.

We conducted our review in accordance with the Standard on Review Engagement (SRE) 2410,"Review of lnterim Finonciol lnformotion Performed by the lndependent Auditor of the Entity'' issued by the lnstitute of Chartered Accountants of lndia. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the financial statements are free of material misstatement. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provides less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.

Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement of unaudited financial results, prepared in accordance with applicable lnd-AS prescribed under section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other recognized accounting practices and policies generally accepted in lndia, has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBt (Listing Obligations and Disclosure Requirements) Regulations, 2015 including the manner in which it is to be disclosed, or that it contains any material misstatement.

PIace: Ahmedabad

Date: 11th September, 2020

UD|N: 2o loLbSl 6ABnCS Sq+s

For Mukesh M. Shah & Co Chartered Accountants Firm Regn. No. 106625W

cc

Suvrat S. Shah Partner Membership No. 102651

	ASHIMA LIMITED
	REGD. OFFICE:TEXCELLENCE COMPLEX, NEAR ANUPAM CINEMA, KHOXHARA AHMEDABAD-380 021, GUJARAT, INDIA
	CIN : t99999cr1982PtC005253
	E.MAIL: texcellence@ashima.in S PHONE:91-79-67777OOO i FN <t9l-79-22773ogl< td=""></t9l-79-22773ogl<>
				(Rs. in lacs, except per share data)
	STATEMENT OF UNAUDITED CONSOTIDATED FINANCIAL RESULTS FOR THE QUARTER ENDED ON 3oth	2O2O
'UNE,Quarter ended				Year ended
Sr.No.	Particulars	30l06l2O2O	3tl03l2O2o	30l06l2Ot9	3tl03l2O2O
(u	(2)	(31	(41	(sl	(61
		Unaudited	Audited (Refer	.Unaudited	Audited
			Ncite 4)
	1 lncome from Operations
	(a) Revenue from Operations
	(b) other lncome	822	5,732	7,956	28,544
	Total lncome	185	479	92	775
		1,009	6,271	8,048	29,320
	2 Expenses(a) Cost of material consumed
	(b) Purchase of stock-in-trade	552	2,975	3,934	13,545
	(c) Changes in inventories of Finished goods, work-in-progress and stock-in-trade	1(2es)	153(118)	187	6727,L74
	(d) Employee benefits expense	650	7,034	1521,098	4,49!
	(e) Finance costs	40	7L4	(78)	203
	(f) Depreciation and amortization expense	L14	727	151	537
	(g) other expenses	570	2,O34	2,638	9,035
	Total Expenses	1,629	6,!29	8,082	29,558
	3 Profit/(Loss) before share of Profit/(Lossl ofassociate and exceptional items and tax	(5211	(1181	(341	(33s1
	4 Share of Profit/(Loss) of Associate	(0)	(0)	0	0
	5 Profit/(Lossl before exceptional items and tax	(621)	(1181	(341	(3381
	5 Exceptional items
	7 Profit/(Loss) before tax	(621)	(118)	(34)	(338)
	8 Tax Expense
	(a) Current tax
	(b) Deferred tax
	9 Profit/(Lossl for the period	(5211	(11E1	(341	(3381
	10 Other Comprehensive lncome
	Items that will not be reclasslfied to profit or loss
	-----Re-measurement losses on post employement defined benefit plans		(e3)		(e3)
	-----lncome tax effect
	11 Total Comprehensive lncome	(6211	(211)	(341	(4311
t2	Paid up share capital (par value Rs.10/- each, fully paid) (See Note - 9)	19,156	19,155	19,166	19,166
	13 Other equity				2,924
t4	Earnings per share [EPS] (of Rs. 10/- each] (not annualised) (See Note - 9]
	Basic and diluted EPS before Exceptional items fin Rs.l	(0.32)	(0.05)	(0.02)	(0.18)
	Basic and diluted EPS after Exceptional items lin Rs.'l	(0.32)	(0.06)	(0.02)	{0.18}

	NOTES:
--	--------

1 These financial results have been reviewed by the Audit Committee and have been approved by the Board of Directors at their respective meetings held on LLth September,2020.

2 The above results for the Quarter ended on June 30,2020 have been prepared in accordance with the Companies (lndian Accounting Standards) Rules, 2015 (lnd AS), prescribed under Section 133 of the Companies Act, 2013, and other recognised accounting practices and policies to the extent applicable.

3 The format of the above results as prescribed in SEBI's Circular CtR/CFD/CMD/t1lz1t5 dated 30th November, 2015 has been modified to comply with the requirements of SEBI's Circular dated 5th July, 2016, lnd AS and Schedule lll [Division ll] to the Companies Act, 2013.

• 4 The figures ofthe quarter ended 31st March, 2020 are the balancing figures between the audited figures in respect ofthe full financial year and the published year to date figures upto 31st December,2019.
• 5 The company has one segment of activity namely "Textiles".
• 6 Figures of previous periods have been regrouped / rearranged wherever necessary.
• 7 As regards deferred tax as per lnd AS-12 on "lncome Taxes", there is a net deferred tax asset for the past years and for the period up to June 30,2020. As a matter of prudence, the company has not recognised the said deferred tax asset.

8 ln March 2020, the WHO declared COVID-19 a global pandemic. Consequently, Government of lndia declared a nation-wide lockdown from 24th March 2020. This has an adverse impact on operational performance of the company and its financial position as a result of subdued activity in the textile market. Company has been faci,ng liquidity crunch due to suspbnsion of operations and is striving to martage its cashflows within the limitations.

After lifting of the lockdown, The Company has resumed its business operations on a gradual basis in line with the guidelines issued by the Government authorities. The Company is waiting for the business conditions to improve and demand to pick up, so commencement of normal operations will take some more time.

ln light of these circumstances, the Company has reviewed the possible impacts of COVID-19 on the carrying amounts of its assets and liabilities. Accordingly, apart from the provisions made for Rs.197 lacs as diminution [n value of finished goods stock and Rs.124 lacs as allowance for expected credit loss on receivables balances in the financials of the previous quarter, no further provisioning has been made during the quarter ended 30th June, 2020. There has not been any significant reduction in sales realisation during the quarter. As regards trade receivables, there have been instances of cheques not being honoured by parties in some cases, for which the company has taken proper legal actions, but this does not confirm any credit loss in such cases as of now. The impact may vary in future periods, depending on future developments on Covid-L9 front and its impact on the business of the company.

The financial performance of the Company for the quarter has suffered due to lockdown arld disruption of business, which is evident in sales and profitability figures presented above. Therefore, results for the quarter are not comparable to previous corresponding period results.

However, the Company does not anticipate any challenges in its ability to continue as going concern. ln this unusual and difficult business situation, the Company has taken measures foreffective cost management. The Company is closely monitoring the situation as it evolves in the future.

TIMITED

CHAIRMAN & MANAGING DIRECfOR

CHINTAN N. PARIKH

For

• 9 The details given above are after giving effect of merger in terms of cancellation of shares held in Ashima Limited by the merging company Ashima Dyecot Private Limited and issue and allotment of new equity shares, as approved by the Board of Directors at the meeting held on 11th September, 2020. EPS is calculated for all the periods based on aggregate paid up equity share capital including shares issued upon merger.
• Figures are rounded off to the nearest Rupees in lacs. 1o
• The Consolidated results include results of an associate company accounted for using the equity method. 11
• The financial results of the Company are available at the websites of BSE Ltd. at www.bseindia.com, National Stock Exchange of lndia Ltd. at www.nseindia.com and at www.ashima.in. L2

AHMEDABAD 1lTH SEPTEMBER,2020

7th Floor, Heritage Chambers B/h. Bikanerwala, Off S.M. Road, Nr. Azad Society, Nehru Nagar, Ahmedabad-380 015. Phone : (B) 079 - 2647 2OOO E mail : contact@mmsco.in Website :www.mmsco.in

MUKESH M. SHAH & CO.

CHARTERED ACCOUNTANTS AHMEDABAD. MUMBAI. BANGALORE

Limited Review Report on Quarterly Consolidated Financial Results of Ashima Limited pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015

To, The Board of Directors, Ashima Limited Ahmedabad

We have reviewed the accompanying statement of Consolidated unaudited financial results of Ashima Limited ['the Company'], and M/s Shardul Garments Private Limited [the associate] [together referred to as the "Group"], for the quarter ended on June 30, 2020 ['the Statement'] attached herewith, being submitted by the company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015, read with SEBI Circular No. CIR/CFDIFAC/6212016 dated 5'h July, 2016 as amended by SEBI Circular No. CIR/CFD lCMD1,/44/2019 dated 29th March, 2019.

This statement, which is the responsibility of the Company's Management and approved by the Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in the lnd-AS 34, "lnterim Financial Reporting" prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in lndia. Our responsibility is to issue a report on these financial statements based on our review.

We conducted our review in accordance with the Standard on Review Engagement (SRE) 2410, "Review of lnterim Financial lnformotion Performed by the lndependent Auditor of the Entity'' issued by the tnstitute of Chartered Accountants of lndia. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the financial statements are free of material misstatement. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provides less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.

Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement of unaudited financial results, prepared in accordance with applicable lnd-AS prescribed under section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other recognized accounting practices and policies generally accepted in lndia, has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEB| (Listing Obligations and Disclosure Requirements) Regulations, 2015 including the manner in which it is to be disclosed, or that it contains any material misstatement.

We did not review the interim financial statements of associate, whose interim financial statements reflect total revenues of Rs. NIL and net loss after tax and total comprehensive loss of Rs. 0.03 Lacs for the quarter ended on 30th June,2O2O, as considered in the consolidated financial statements. These interim financial statements/financial information have been reviewed by other auditors whose reports have been furnished to us by the Management and our opinion on the consolidated financial statements, in so far as it relates to the amounts and disclosures included in respect of associate, and our report in terms of sub-sections (3) and (11) of section 143 of the Act, insofar as it relates to the aforesaid associate is based solely on the reports of the other auditors.

Place: Ahmedabad Date: 11th September, 2020

UDIN: 2o tO 2651 hA A A Ccq lq I

For Mukesh M. Shah & Co Chartered Accountants

Firm Regn. No. 105625W I I

Suvrat S. Shah Partner Membership No. 102651