CREATIVE NEWTECH LIMITED — Audit Report / Information 2021

Jun 18, 2021

GUPTA RAJ & CO. CHARTERED ACCOUNTANTS

DELHI OFFICE: MUMBAI OFFICE: AHEMDABAD OFFICE: 2-C, MAYUR APARTMENTS, 101, KD BLOCK, A-307 INFINITY TOWER, PITAMPURA DADABHAI CROSS RD. NO.3, CORPORATE TOWER, NEAR KOHAT ENCLAVE VILE PARLE (WEST), PRAHALAD NAGAR, METRO STATION, MUMBAI, AHMEDABAD NEW DELHI 110034 $PIN - 380015$ PIN 400056 PH. NO. 011-47018333 PH. NO. 26210901, 26210902. M. NO. 9726777733

NAGPUR BRANCH: 1ST FLR, MEMON JAMAD BUILDING, NR CENTRAL BANK, MASKASATH, ITWARI, NAGPUR - 440002 M. NO. 7387811111

Independent Auditors Report

To,

The Board of Directors, CREATIVE PERIPHERALS AND DISTRIBUTION LTD.

Report on the audit of the Standalone Financial Results

Opinion

We have audited the accompanying standalone quarterly financial results of Creative Peripherals And Distribution Ltd. (the company) for the quarter ended March 31, 2020 (the 'Statement') and year to date results for the period from April 1, 2019 to March 31, 2020, attached herewith, being submitted by the company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("Listing Regulations").

In our opinion and to the best of our information and according to the explanations given to us these standalone financial results:

• (i). are presented in accordance with the requirements of Regulation 33 of the SEBI 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 profit and other comprehensive income and other financial information for the quarter ended March 31, 2020 as well as the year to date results for the period from April 1, 2019 to March 31, 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 (the Act). Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Standalone 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 Companies Act, 2013 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 Standalone Financial Results

These quarterly financial results as well as the year to date standalone financial results have been prepared on the basis of the interim financial statements. The Company's Board of Directors are responsible for the preparation of these financial results that give a true and fair view of the net profit and other comprehensive income and other financial information in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, 'Interim Financial Reporting' prescribed under Section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 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 standalone financial results that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial results, the Board of Directors are responsible for assessing the 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.

Auditor's Responsibilities for the Audit of the Standalone Financial Results

Our objectives are to obtain reasonable assurance about whether the standalone financial results as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's 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 SAs will 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 standalone 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 assess the risks of material misstatement of the standalone 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, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.

• . Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.

• Condude on th e appropr iate ness of the Board of Directors' use of th e going concern basis of accounting and, based on the audit evidern:e obtained, whether a material uncert ainty exisg related to events or conditions that may cast significant doubt on the Company'. ability to continue as a going concern. If we conclude th at a material uncerta inty exists, we are required to draw attention in our auditor's report to the related diSclosures In the financial resu"-s or, if such disclosures <Ire inadeq uate, to modify our op inion. Our cOllciusions are based on the aud"- evidence obla lned up to the date of our auditor's report. However, futur e events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentatiOll, structure and content of the stand alone flllanda i results, including the di.c1o.ures, and whether the financial resu"-s represe nt the underlying transactions and event> in a manner Ihat achieves lair pre",ntation.

We communicate with those charged with governance regarding, among other matters, Ihe planned scope and liming of Ihe audit and significant audll findings, Including any significant deficiencies in intern al control that we identify during our audit.

We also provide those charged wil h governance wil h a statemenl that we have complied with relevant ethical requirements regarding lndependence, and to communicate w"-h Ihem all reiationships and othe r matters that may reasonably be thought to bear On our Indepe ndence, and where applicable, related safeguards.

Other Matter

The standalone annuai financial results include the rescus for the quarte r ended March 31, 2020 being Ihe balancing figure between the audrted figures In respect of the full financial year and the published unaudited figures up to the half year ended September 30, 2019 which were subject to limited review by u, and also unpubllshed/unaudited flguru lor t he third quart er ended December 31, 2019 01 the current financial yea r (which are certified by Ihe managemenl).

FORGUPTAIW &CD. OIARTERfO ACCOUNTANTS FIRM NO. 001687N

NNawal ikul ) =____=00.1> Jalan ,_.... .os'"

NIKULJALAN PARTNER Membe<shlp NO.112353

PLACE: MUM BAI DATED: 25/06/2020 UDIN, Q\ :2 DAA, A,AC1. l>,~

(CIN):L52392MH2004PLC148754

CREATIVE PERIPHERALS AND DISTRIBUTION LIMITED

Audited Standalone Balance Sheet as at March 31, 2020

	As at	As at
	31-03-2020	31-03-2019
	(Audited)	(Audited)
	in lacs	' in lacs
ASSETS
Non-Current Assets
(a) Property, Plant and Equipment	889.17	892.71
(b) Financial Assets
Investments(i)	155.13	123.90
(ii) Other Financial Assets
(c) Deferred Tax Assets (Net)	11.56	12.94
(d) Other Non Current Assets	1.01
Total Non - Current Assets	1,056.87	1,029.55
Current Assets
(a) Inventories	5.922.15	2,778.84
(b) Financial Assets
(i) Trade Receivables	3.859.31
(ii) Cash and Cash Equivalents		4,404.52
	14.67	114.05
(iii) Bank Balances other than (ii) above	336.24	244.90
(v) Other Financial Assets	2.09
(c) Other Current assets	4,112.30	3,280.44
Total Current Assets	14,246.76	10,822.75
Total Assets	15,303.63	11,852.30
EQUITY AND LIABILITIES
Equity
(a) Equity Share Capital	1.160.00
		580.00
(b) Other Equity	3.052.40	2,751.34
Total Equity	4,212.40	3,331.34
LIABILITIES
Non-Current Liabilities
(a) Financial Liabilities
(i) Borrowings	606.86	617.67
(b) Provisions	68.79	57.20
Total Non - Current Liabilities	675.66	674.88
Current Liabilities
(a) Financial Liabilities
(i) Borrowings	2,579.76	2.972.74
(ii) Trade Payables
- total outsatnding dues of micro enterprises and small enterprises
- total outsatnding dues of creditors other than micro enterprises and	3,137.16
small enterprises		2,658.64
(iii) Other Financial Liablities	2,506.16	1,720.50
(b) Other Current Liabilities	2,117.00	437.69
(c) Provisions	12.04	9.79
(d) Current Tax Liabilities (Net)	63.44	46.71
Total Current Liabilities	10,415.57	7,846.09
Total Equity and Liabilities	15,303.63	11,852.30

For Creative Peripherals and Distibution Limited Clean Schwe $S & B$ Ketan Patel MUMBA Chairman & Managing Director DIN - 00127633 $xq3$

Date - 25th June, 2020 Place - Mumbai

Creative Peripherals And Distribution Limited

Creative Peripherals

(CIN):L52392MH2004PLC148754

CREATIVE PERIPHERALS AND DISTRIBUTION LIMITED
Audited Standalone Statement of Profit and Loss for the Quarter and Year ended March 31, 2020For theFor theFor theFor the
	Quarter Ended	Quarter Ended	Quarter Ended	Year Ended	For theYear ended
Particular	31-03-2020(Audited)	31-12-2019(Unaudited)	31-03-2019(Unaudited)	31-03-2020(Audited)	31-03-2019(Audited)
Revenue from Operations	12,816.71	12,931.93	11,241.12	45, 117.37	36,765.45
Other Income	17.88	15.67	178.51	131.00	306.15
Total Income	12,834.58	12,947.60	11,419.64	45,248.37	37,071.60
Expenses
Purchases of Stock in Trade(a)	11.404.32	14.044.19	9,340.38	43,304.23	33, 553.26
Changes in inventories of finished goods and work-in(b)
progress	21.24	(2,626,53)	982.37	(3, 143, 30)	13.15
Employee Benefits Expenses(c)	247.33	226.70	200.16	899.41	695.80
Finance Costs(d)	120.09	138.14	140.41	476.35	451.97
Depreciation and Amortisation Expense(e)	26.95	21.96	18.08	85.89	52.60
Other Expenses(f)	848.37	658.48	488.50	2,382.51	1,477.39
Total Expenses	12,668.30	12,462.95	11,169.90	44,005.08	36,244.18
Profit/(Loss) before Tax	166.29	484.65	249.74	1,243.29	827.42
Tax Expense
Current Tax(a)	73.87	121.65	36.80	336.91	220.08
Tax adjustments relating to prior years(b)			9.15		9.15
Deferred Tax(c)	(0.16)	0.53	(9.35)	1.94	13.42
Total Tax Expense	73.71	122.18	36.60	338.84	242.65
Profilt/(Loss) for the year	92.58	362.47	213.13	904.45	584.77
Other Comprehensive Income
Items that will not be reclassified to profit or loss(i)
Remeasurements of Defined Benefit Plans(a)	1.30		(3.54)	(2.24)	(3.54)
Income Tax on above(b)	(0.33)		0.89	0.56
Items that will be reclassified to profit or loss(ii)
Total Other Comprehensive Income for the year	0.97	۰	(2.65)	(1.68)	(3.54)
Total Comprehensive Income for the year	93.55	362.47	210.48	902.77	581.23
Earnings per Equity Share of ` 10 par value :
Basic ( per share)	0.81	3.12	1.81	7.78	5.01
Diluted ('per share)	0.81	3.12	1.81	7.78	5.01

For Creative Peripherals and Distibution Limited

Keleinstehm Ketan Patel

Date - 25th June, 2020 Place - Mumbai

Chairman & Managing Director DIN - 00127633

LS $\boldsymbol{d}$ MUMBA

Creative Peripherals And Distribution Limited

(CIN):L52392MH2004PLC148754

	Particular	For theYear endedMar-31-2020` in lacs	For theYear endedMar-31-2019in lacs
А.	CASH FLOW FROM OPERATING ACTIVITIES
	Profit / (Loss) Before Tax	1,243.39	827.42
	Adjustments for
	Depreciation and Amortisation	85.89	52.60
	Finance Cost	380.17	372.44
	Interest on late payment	$-6.87$	0.05
	Interest on FD and ICD	$-35.13$	(30.58)
	Provisions for expense	12.83	8.46
	Operating Profit Before Working Capital Changes	1,680.28	1,230.40
	Adjustments for increase / decrease in:
	Trade receivables	545.21	$-119.85$
	Other Financial Assets and other current assets	$-833.94$	$-1,483.94$
	Inventories	$-3,143.30$	13.15
	Trade payable, Other Financial & Current Liabilities	2,943.49	140.34
	Cash generated from operations	1,191.74	$-219.90$
	Income-tax (paid) / refund (net)	$-322.62$	$-179.15$
	Net cash flow from operating activities	869.12	$-399.05$
	B. CASH FLOW FROM INVESTING ACTIVITIES
	Purchase of PPE, intangible assets and work in progress	$-82.26$	$-179.93$
	Purchase of Investments	$-31.22$
	Income from Investment (FD & ICD)	42.00	30.53
	Increase in Investments
	(Investment) & Redemption in bank deposit (having maturity more than 3 months)	$-91.35$	$-39.30$
	Net cash flow (used in) investing activities	$-162.83$	$-188.70$
	C. CASH FLOW FROM FINANCING ACTIVITIES
	Proceeds from Long-term Borrowings		452.54
	Repayment of Long-term Borrowings	$-138.00$	0.00
	Proceeds from Short-term Borrowings		614.27
	Repayment of Short-term Borrowings (net)	$-265.79$	0.00
	Finance Cost Paid	$-380.17$	$-372.44$
	Dividend and DDT Paid	$-21.71$	$-10.85$
	Net cash flow from financing activities	$-805.67$	683.52
	Net increase / (decrease) in cash and cash equivalents	$-99.38$	95.76
	Cash and cash equivalents as at the beginning of the year	114.05	18.29

Notes:

1. Cash Flow Statement has been prepared under the indirect method as set out in Ind AS 7 specified under section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014..

2. Figures in bracket indicate Cash Outflow.

Cash and cash equivalents as at the end of the year

Date - 25th June,

For Creative Peripherals and Distibution Limited Celumbelline $\boldsymbol{q}$

Ketan Patel Chairman & Managing Director DIN - 00127633

14.67

114.05

Place - Mumbai

Creative Peripherals And Distribution Limited

Notes to Standalone Fin ancial Results:

• 1. The audited financi al resu lts of the Company for th e year ende d March 31, 202 0 have been reviewed by the Audit Committee of the Board and app roved by the Board of Directors at its meetings held on 25'h June, 2020.
• 1. The res ults for the yea r ended March 31, 202 0 are ava ilable on th e Nationa l Stoc k Exchange we bs ite (URL: www.nse india.com) and on the Com pa ny's we bs ite URL: www.ecreativein dia.co m.
• 1. These fina ncia l results have been pr ep ared in acco rda nce with the recognition and measureme nt principles of Indi an Accounting Sta nda rds ("lnd AS") prescribed und er Section 133 of the Companies Act, 2013 read with the relevant rules issu ed there under and the ot her acco unting principles gene rally accepte d in India.
• 1. The figures for th e corresponding previou s peri od have been regrouped / re classified wherever necessary, to make them comparabl e. The figures for qu arter ended 31st March, 202 0 are balan cing figures between the aud ite d figures of th e full finan cial year and th e reviewed year-to-da te figures up to the third quarter of the fina ncia l year.
• 1. As per sec tion 135 of th e Compa nies Act, 2013, amount required to be spent by the Company on Corpora te Social Respons ibility (CSR) activities dur ing th e yea r was Rs. 9.68 Lakhs.

During the yea r ended March 202 0 the compa ny has paid Rs. 13.50 Lakhs to Shiva Trust Aurangabad towards revenue expe nditure on educationa l ac tivity as CSR expendit ure and the sa me is cha rged to Statemen t of Profi t & Loss Account for th e yea r.

1. On March 11, 202 0, the World Health Organiza tio n decla red Covid-19 outbreak as a pandemic. Respo nding to the poten tially se rious threat that th is pan demic has to public health, the Indi an Government has taken a se ries of measures to conta in the outbreak, which included imp osing multiple 'lock-downs ' ac ross the cou ntry, from March 22, 2020, and exte nded up to June 30, 2020. Busine ss op erations in th e various international ma rkets whe re the Company operates have also been imp acted to va rying extent based on the spread of the pandemi c and the restrictions on business activities placed by the respective foreign Gove rn me nts.

The lockdowns and restrictions imposed on va rious ac tivities du e to COVID - 19 pa nde mic have posed cha llenges to all the bus inesses of the Company, i.e. Creative

Peripherals Distribution Limited (th e "Company"). Lockdown guide lines mand at ed closure of op erations and cessation of other manufacturing activities. This has resulted in low occupancies / shutdowns of our offices and manufacturin g units during the lockdown situation.

Most of the offi ces of th e Compa ny were shut down entire ly duri ng the lockd own phase as the Company was not part of Govern ment denominated essential services. With th e lifting of the partial lockdown restrictio ns, the Company has sta rted re opening a few of its workplaces, afte r establishing thorough and well-rehearsed safety protocols. The Com pany expects to become op erational in a phased manner afte r the lockdown is lifted and th e confidence of staff and customers is restored.The Compan y expects the de mand for its se rvices to pick up albeit at a slowe r pace once lockdown is lifted and recove ry in busin ess to be dri ven by increase in economic activities.

The Company has assessed the poten tial impact of Covid-19 on its capita l and finan cial reso urces, profi tability, liquidity positi on, ability to se rvice deb t and ot her financing arra ngements,supply chain and demand for its se rvices. Various ste ps have been initiated to raise finan ces from ban ks and institutions for working capita l needs and long te rm fund req uirements and the Company is in a comfortable liquidity position to meet its commitments.

The Company has also assessed the potential impact ofCovid-19 on the carrying value of property, plant & equi pment, right of use assets, inta ngible assets, investments, tra de receivables, invent ories, and ot her current asse ts appearing in its fi nancial state ments. In develop ing the ass umpt ions and estimates relati ng to the future uncertain ties in the eco nomic conditions because of this pandemic, the Company as at the date of approval of th ese Financi al statements has used internal and exte rnal sources of informati on and based on curre nt estimates, expects to recover the carrying amo unts of th ese assets. The impac t of the global health pand emic may be differen t from that estimated as at the date of app rova l of these fi nancia l sta te ments and the Company will continue to closely mon itor any ma teri al changes to future economic conditions.

Creative Peripherals And Distribution limited

1. The Board of Directors at th eir meeting have recomm ended a dividend of Rs. 0.5 pe r share (l.e. 5%), (previous yea r Rs. 0.5 per share), subject to th e approva l of the mem bers at the ensuing Annu al General Meeting.

For Cre ative Peripheral a nd Distribution Limited

Ketan Patel Chairman a nd Ma naging Director DIN - 00127633

Date - 2 5th June. 2020 Pla ce - Mumbai

Creative Peripherals And Distribution Limited

CREATIVE PERIPHERALS AND DISTRIBUTION LIMITED

Audited Standalaone Segment wise Revenue and Results For Quarter & Year ended March 31,2020

	Quarter Ended				Year Ended Year Ended
Particulars	31-03-2020		31-12-2019 31-03-2019	31-03-2020	31-03-2019
	Audited	Unaudited	Audited	Audited	Audited
	Rs. In Lacs	Rs. In Lacs	Rs. In Lacs	Rs. In Lacs	Rs. In Lacs
Segment Revenue
- Imaging	4803.50	6560.85		19608.22
$-IT$	5080.21	5486.65		19167.35
- Others (Lifestyle, Security etc.)	2932.99	884.37		6341.79
Revenue from Operations	12816.70	12931.93	٠	45117.37
Segment Results
Net Revenue from each segment
after deducting allocable cost
- Imaging	344.37	855.90		2459.53
$-1T$	619.97	476.12		2077.54
- Others (Lifestyle, Security etc.)	426.81	181.52	۰	419.37
Total	1391.15	1513.54	٠	4956.45
Less: Finance Cost	120.09	138.14	Ξ	476.35
Less: Unallocable cost	1,104.77	890.75		3,236.80
Total Profit before Tax	166.29	484.65	٠	1,243.29

CREATIVE PERIPHERALS AND DISTRIBUTION LIMITED Audited Standalone Segment wise Assets and Liabilities as on March 31, 2020

		Quarter Ended		Year Ended Year Ended
Particulars	31-03-2020	31-12-2019	31-03-2019	31-03-2020	31-03-2019
	Audited	Unaudited	Audited	Audited	Audited
	Rs. In Lacs	Rs. In Lacs	Rs. In Lacs	Rs. In Lacs	Rs. In Lacs
Total Assest
- Imaging	3116.78	3044.65	۰	3116.78
- IT	4040.74	4158.52	۰	4040.74
- Others (Lifestyle, Security etc.)	541.10	1867.30		541.10
Total	7698.62	9070.47		7698.62
Total Liability
- Imaging	$-310.17$	0.00	۰	$-310.17$
$-1T$	2572.52	2340.88	$\overline{a}$	2572.52
- Others (Lifestyle, Security etc.)	344.80	335.74	۰	344.80
Total	2,607.2	2,676.6		2,607.2

For Creative Peripherals and Distibution Limited Actuain Batund

Date - 25th June, 2020 Place - Mumbai

Ketan Patel Chairman & Managing Director DIN - 00127633

Creative Peripherals And Distribution Limited