Cravatex Ltd. — Annual Report 2019

May 24, 2019

Corporate Off Matulya Centre. 2nd Floor Senapau Bapat Marg Lower Parel (W). Mumbai· 400 013 GIN L9301 OMH 1951 PLC008546 T +91226666 7474 F +91222497 3210 E 1nfo@cravatex com W www cravatex com

May 24, 2019

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Ref.No.: CL/012/2019-20

BSE Limited

Department of Corporate Services (DCS-Listing) 25th Floor, Phiroze Jeejeebhoy Towers Dalal Street Mumbai - 400 001

Company Code : 509472

Dear Sirs,

Sub Outcome of Board Meeting

Ref: Disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Reguirementsl Regulations, 2015

We wish to inform you that the Board of Directors of the Company at their meeting held today, which started at 4 . 15 p.m. and concluded at 6.40 p.rn., have :

• a) approved the Audited Financial Results (Standalone & Consolidated) and Statement of Assets & Liabilities for the financial year ended March 31 , 2019 together with Audit Report (copy attached).

• b) recommended a dividend of Rs.0.40 per share (4%) each on 90,00,000 Non­ convertible Cumulative Redeemable Preference Shares (Unlisted) of Rs.10/- for the financial year ended March 31 , 2019, for approval of the members at the forthcoming Annual General Meeting.

• c) recommended a dividend of Rs.2.00 per share (20%) on Equity Shares (Listed) of Rs.10/- each for the financial year ended March 31 , 2019 for approval of the members at the forthcoming Annual General Meeting.

Further pursuant to Regulation 33(3)(d) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 the Statutory Auditors of the Company have issued the Auditors Report for the financial year ended March 31 , 2019 with unmodified opinion.

Kindly take the above information on record.

Thanking you, For Cravatex Limited,

��\�

Sudhanshu Namdeo

Company Secretary

Encl : a.a.

Registered Office: Sahas 4th floor 414[1 ] 2 Veer Savarkar Marg. Prabhadevr, Mumbai - 400 025

Corporate Off Matulya Centre. 2nd Floor. Senapau Bapat Marg. Lower Parel (W). Mumbai - 400 013 CIN L93010MH1951PLC008546

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T +91 22 6666 7474 F +91 22 2497 3210

E 1nfo@cravatex com W www cravatex com

Statement of Audited Standalone & Consolidated Financial Results for the Quarter & Year Ended March 31, 2019

	State	ment of AuditedStandalone&Con	solidatedFinancial R	esults forthe Q	uarer&Year	Ended Marc	h 31,2019
								(Rupeesin Lacs)
					Standalone			Consolidated
SN		Pariculars	31.03.2019	Quarer ended 31.03.2018	31.12.2018	Year ended 31.03.2019 31.03.2018		Year ended 31.03.2019 31.03.2018
			AUDITED	AUDITED	UNAUDITED	AUDITD	AUDITED	AUDITED	AUDITED
I	Revenue fromOperations		22.87	44.60	62.55	103.95	74 08	71,765.98	35,580.17
II	Other Income		116.48	184.31	243so	707.70	503.66	415.76	425.69
Ill	TOTALINCOME(I+II)		139.35	228.91	306.0S	811.65	577.74	72,181.74	36,05.86
IV	EXPENSES
	Purchase of Stock-in-Trade		16 51	35.83	52.44	70.70	40.66	55,823.70	24,408.40
	Change in Inventories of Stock-in-Trade		836	27.61	8.41	33.26	64.51	(4,743.79)	533.31
	Employee Benefits Expense		27.61	32.86	24.24	99.97	109.63	5,212.98	3,754 72
	Finance Costs		24.59	27.03	23.16	101.59	103 80	509.39	442 15
	Depreciation and Amorisation Expense		20.04	22.85	20.52	82.92	94.74	573.28	573.39
	Other Expenses		27 43	59.38	3173	128.00	132.43	13,117.79	7,503.32
	TOTAL EXPENSES (IV)		124.54	205.56	160.50	516.44	545.77	70,493.35	37,215.29
v	Profit/(Loss) before Exceptional Items and Tax(111)-(IV)		14.82	23.35	145.SS	295.21	31.97	1,688.39	(1,209.43)
VI	Exceptional Items
VII	Profit/(Loss) before Tax Expenses (V - VI)		14.82	23.35	145.55	295.21	31.97	1,688.39	(1,209.43)
VIII	Tax Expenses:
	Current Tax		(20.70)		{14.80)	(69.501		{593.79)	{191 33)
	DeferredTax		263	(7.23)	2.74	11.31	8.06	(16.53)	164.83
	Shor/ (Excess)provision	oftheearlier period		2.15	8 70	(10.58)	2 lS	{11.90)	2 lS
	TotalTax Expense		{18.07)	{S.08)	{36)	{68.77)	10.21	(622.22)	{24.35)
IX	Profit/(Loss) for theperiod	(V11+VIII)	{3.25)	18.27	142.19	226.44	42.18	l,066.17	(1,233.78)
x	OtherComprehensive Income for theyear		(1.97)	25.49		(1.97)	25.49	{9.50)	(545)
XI	TotalComprehensiveIncomefor theyear (IX+X)		{S.22)	43.76	142.19	224.47	67.67	1,056.67	(l,288.53)
XII	EarningsPerEquity Share(Face ValueRs.10each)
	Basic		(0.13)	0.71	5so	8.76	1 63	41.26	(47 74)
	Diluted		(013)	0.71	5so	8.76	1.63	41.26	(47.74)

Notes:

• l The above financial results have been reviewed by the Audit Committee and approved by the Board of Directors in their meetmg held on May 24, 2019.

• 2 The Board of Directors have recomended a dividend of 4% ( at the rate of Rs O 40 per share of Rs 10/- each} on 90,00,000 Non-Convertible Cumulative Redeemable Preference Shares allotted on 12/04/2016 for the fmancial year 2018-19, subject to approval of the shareholders at the Annual General Meeting.

• 3 The Board of Directors have recomended a dividend of 20% { at the rate of Rs. 2/· Per Equity share) for the financial year ended 31 March.2019., subject to the approval of the memebers m the Annual General Meetmg.

• 4 This statement has been prepared m accordance with the Companies (Indian Accounting Standards) Rules 2015 (Ind AS)

• prescribed under Section 133 of the Companies Act. 2013 and other recognised accounting practices and policies to the extent applicable

• s The Company adopted tndian Accounting Standards (IND AS) from April 01. 2017, and accordingly, these financial results have

• been prepared in accordance with the recognition and measurement principles in IND AS 34 - Interim Financial Reporting, prescribed under section 133 of the Companies Act, 2013 read with the relevant rules issued thereunder and the other accounting principles generally accepted in India

• 6 The tmencra! results of the Company for the quarter & year ended March 31, 2019 were audited by an auditor who have expressed unmodified opinion on those results.

• 7 The figures of the last quarter are the balancing figure between audited figures in respect of the full financial year and the published year to date figures upto the end of third quarter of the current fmancial year.

• 8 There are no reportable segment for the period ended 31st March, 2019.

• 9 Figures of the previous period's have been regrouped wherever necessary to conform to the current period ctessmcattcns.

Place : Mumbai Date : May 24, 2019

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By order of the Board
For Cravatex Limited
Rajesh Batra
Chairman and Managing Director
DIN : 00020764
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Registered Office: Sahas 4th floor 4 1 4 , 2 Veer Savarkar Marg Prabhadevr. Mumbai - 400 025

Corporate Off" Matulya Centre. 2nd Floor. Senapau Bapat Marg, Lower Parel (W). Mumbai - 400 013 CIN L93010MH1951PLC008546 T +91 22 6666 7474 F +91 22 2497 3210 E tnfo@cravalex.com W www cravatex com

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Statement of Standalone & Consolidated Audited A ets & liabilities for the Year Ended on March 31, 2019

(Rupees in Lacs)

	STANDALONE	STANDALONE		CONSOLIDATED	CONSOLIDATED
PARTICULRS	Aat 31.03.2019	Aat	31.03.2018	Asat31.03.2019	Aat	31.03.2018
	AUDITED	AUDITED		AUDITED	AUDITED
ASSETS
!)Non-current Assets
a)Propery,Plant and Equipment	160 96		220.74	810.97		418 67
b)lnvestmentPropery	672.70		689.00	672.70		689.00
c)Other Intangible Assets	98.31		115.94	3,287.59		3,674.58
d)FinancialAssets
(1)Investments	3,312 85		3,312.85
(n)Loans	8.16		11.66	28676		159.12
(iii)Others				31.02		27.20
e)Other non-current assets	13.50		13.50	109.41		41 32
Total Non-current Assets	4,266.48		4,363.69	5,198.45		5,009.88
2)Current A ets
a)lnventories	4.04		37.30	8,371.59		3,627.80
b)Financial Assets
(i)Investments	10.77			100.77		607.66
{ii) Trade receivables	23.10		42.00	15,03.10		10,326.67
(iii)Cash andcash equivalents	83.39		122.67	400 38		564.30
{1v)Bank balances other than (iii) above	7.56		8.49	127.42		118.58
(v)Others	35.00		35 00	241.64		38.14
c) Loans&Advances				148.73		91.92
c)CurrentTaxassets (Net)	67.40		148.28	6740		148.28
d)Other current assets	16.80		19.86	260.44		31210
TotalCurrent Assets	338.06		413.60	24,721.47		15,835.43
TOTAL	4,604.54		4,777.29	29,919.92		20,845.31
EQUITANOLIABILITIES
EQUIT
a)EquitySharecapital	25842		258.42	258.42		258.42
b) other Equity	2,925 77		2,727.14	1,719.32		674.57
Equityattributable to shareholders ofthe Company	3,184.19		2,985 56	1,977.74		932.99
Non-controllinginterests				(0.01)		0.02
	3,184.19		2,985.56	l,977.73		933.01
LIABILITIES
(1)Non-currentLiabilities
a)F1nancialubs
1)Borrowings	491.20		672.51	8,402.20		8,342.51
ii)Others	27 84		186.96	27.85		183.55
b)Oeferred taxliabilities (Net)	106.42		12643	139.97		132 60
c)OtherNon-CurrentLiabilities	338 28		368.06	449.05		461.35
d)Provis1ons	3.08			154.46		110.25
TotalNon-currentLiabilities	966.82		l,353.96	9,173.53		9,230.26
(2)CurrentLiabilities
a)Financ1alLbrs
i) Borrowings	119.60		285.80	3,266.12		2,161.51
ii) Tradepayables	1531		35.85	2,255.11		6,087.86
i1)Others	291.52		71.88	1,292.13		878 62
b)Other CurrentLiabilities	25.82		44.24	11,161.25		1,158 56
cjcrcvns	I 28			794.05		395.50
TotalCurrentLiabilities	453.53		437.77	18,768.66		10,682.04
TOTAL	4,60.54		4,777 .29	29,919.92		20,845.31
				Byorder oftheBoard
				ForCravatexLimited

� MUMBAI .6 h�� Rajesh Batra "("..J,SP.Tl,+< Chairman and Managing Director DIN : 00020764 *

Place : Mumbai Date : May 24, 2019

Registered Office· Sahas 4th floor 414 ' 2 . Veer Savarkar Marg. Prabhadevr, Mumbai 400 025

QJ?s��tes Chartered Accountants

VHe Pa rte: Tel: +91 22 2618 44 / 33 I 45 / 4646

105/106 Shyamkam.il. [).8u1ld1ng, Agarwal Market, Vile Par1e (East), Mumbai 400 057

Independent Auditor's Report on annual standalone financial results of Cravatex Limited pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

To the Board of Directors of Cravatex Limited

We have audited the quarterly financial results of Cravatex Ltd. for the quarter ended March 3 1 , 2019 and the year to date results for the period April I , 2018 to March 3 1 , 2019, attached herewith, being submitted by the company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. These quarterly financial results as well as the year to date financial results have been prepared on the basis of the interim financial statements, which are the responsibility of the company's management. Our responsibility is to express an opinion on these financial results based on our audit of such interim financial statements, which have been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 (Ind AS 34) for Interim Financial Reporting, prescribed, under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India.

We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial results are free of material misstatement(s). An audit includes examining, on a test basis, evidence supporting the amounts disclosed as financial results. An audit also includes assessing the accounting principles used and significant estimates made by management. We believe that our audit provides a reasonable basis for our opinion.

In our opinion and to the best of our information and according to the explanations given to us these quarterly financial results as well as the year to date results:

• I. are presented in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 in this regard; and

• give a true and fair view of the net profit and other financial information for the quarter ended March 3 1 , 2019 as well as the year to date results for the period from April I , 2018 to March 3 1 , 2019.

Place: Mumbai Date: 24'" May, 2019

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For GPS & Associates
jar
Partner
Membership No: 032485
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QJ?s��tes Chartered Accountants

VIie Pane: Tel· +91 22 2618 44 / 33 J 45 / 4646

105/106 Shyamkama!, D-Bu1ldmg. Agarwal Market, Vile Parle (East). Mumbai 400 057

Independent Auditor's Report on annual consolidated financial results of Cravatex Limited pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

To the Board of Directors of Cravatex Limited

• I . We have audited the accompanying Statement of Consolidated Financial Results of Cravatex Ltd. ("the Parent") and its subsidiaries (the Parent and its subsidiaries together referred to as "the Group") and its share of the net profit/(loss) after tax and total comprehensive income I loss for the year ended March 2019 ("the Statement"), being submitted by the Parent pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.

• This Statement, which is the responsibility of the Parent's Management and approved by the Parent's Board of Directors, has been compiled from the related consolidated financial statements which has been prepared in accordance with the Indian Accounting Standards prescribed under Section 133 of the Companies Act, 2013, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended ("Ind AS"), and other accounting principles generally accepted in India. Our responsibility is to express an opinion on the Statement based on our audit of such consolidated financial statements.

• We conducted our audit in accordance with the Standards on Auditing specified under Section 143( I 0) of the Companies Act 2013. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Statement is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Statement. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the Statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Parent's preparation and fair presentation of the Statement in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the Parent's internal financial control with reference to the Statement. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Management, as well as evaluating the overall presentation of the Statement.

We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33 (8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, to the extent applicable.

We believe that the audit evidence obtained by us and the audit evidence obtained by the other auditors in terms of their reports referred to in paragraph 6 below, is sufficient and appropriate to provide a basis for our audit opinion.

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QJ?s��es Chartered Accountants

Independent Auditor's Report on annual consolidated financial results of Cravatex Limited pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

(Com inued)

1. In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of the reports of the other auditors on separate financial statements and the other financial information of branches and joint operations of the Group, subsidiaries, associates and joint ventures referred to in paragraph 6 below, the Statement:

2. a. includes the results of the following entities: i. Cravatex Brands Limited - Subsidiary

   • ii. 88 (UK) Limited - Wholly Owned Subsidiary

3. b. is presented in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended; and

4. c. gives a true and fair view in conformity with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standards and other accounting principles generally accepted in India of the consolidated total comprehensive income (comprising of net [profit/loss] and other comprehensive income/ loss) and other financial information of the Group for the year ended March 3 1 , 2019.

5. We did not audit the financial statements of Cravatex Brands Limited & 88 (UK) Limited, subsidiaries included in the consolidated financial results, whose financial statements I financial information reflect total assets of Rs. 29, 152.09 lacs as at 31st March, 2019, total revenues of Rs. 71,677.65 lacs, total net profit after tax of Rs. I, 115.25 lacs, total comprehensive income of Rs. I , I 07.72 lacs and cash outflows (net) of Rs. 11 7.88 lacs for the year ended on that date, as considered in the consolidated financial results. These financial statements I financial information have been audited by other auditors whose reports have been furnished to us by the Management and our opinion on the consolidated financial results, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries is based solely on the reports of the other auditors and the procedures performed by us as stated in paragraph 3 above.

Our opinion on the Statement is not modified in respect of the above matters.

Place: Mumbai Date: 24'h May, 2019

artner Membership No: 032485