Palred Technologies Limited — Annual Report 2019

May 30, 2019

lo, Date: 30.05.2019

The Manager, NSE Limited, Exchange Plaza, BandraKurla Complex, Bandra (E), Mumbai- 400051.

Dear Sir/Madam,

Sub: Outcome of board meeting under regulation 33 (3) (c) of SEBI (Listing Obligations and Disclosure requirements) regulations, 20L5

Ref: Palred Technologies Limited (Scrip code: PALREDTEC)

With reference to the subject cited, this is to inform the Exchange that at the Board meeting of M/s. Palred Technologies Limited held on Thursday, the 30th day of May, 2019 at 11.00 a.m. at the registered office of the Company situated at Plot No: 2, H. No: 8-2-703/2/8, Road No: 12, Banjara Hills, Hyderabad Telangana - 500 034 the following were duly considered and approved by the Board.

• L. The Audited financial results (Standalone & Consolidated) for the Quarter and year ended 31.03.2019.
• 1. The Auditor's report on Audited Financial Statements (Standalone & Consolidated) for the Quarter and Year ended 31.03.2019.
• 1. Investment of Rs. 2 crores in subsidiary company i.e Palred Technology Services Private Limited.

The meeting of the Board of Directors commenced at 11.00 a.m (lST) and concluded at 2.30 P.M (tsr)

This is for the information and records of the Exchange, please.

Thanking you.

Yours faithfully, For Palred Technologies Limited

\N" P, Srikan\ Reddy Chairman )nd Managing Director (DlN: 00025889)

PAIRED TECHNOTOGIES tIAilITED

(FORMERLY KNOWN A5 FOUR SOFT LIMITED) CfN No. : L722OOAP1990PLC0331 31 Regd. Office : Ptot No. 2, 8-2-70317/8, Road No. 12, Banjara Hilts, Hyderabad ' 500034 Tete : *91 40 6713 8810 | Website : www.Datred.com

S.No:	Particulars	Description
$\mathbf{1}$	Name of Target Entity	Palred Technology Services Private Limited
$\overline{2}$	Related Party Transaction	Yes. The transaction is at arm's length. The interest ofPromoters/promoter group entities to the said investment inWholly Owned Subsidiary Company is limited to the extent ofShareholding and Directorship in the Wholly OwnedSubsidiary Company.
3	Industry of Target entity	Wholesale & Retail Trading
$\overline{4}$	Acquisition Objectives	To enable wholly owned subsidiary company to meet shortterm and long term working capital requirements includingexpansion of business activities and general corporatepurposes.
5	Government andRegulatory Approvalsrequired	Nil
6	Time period forCompletion	Next 60 days
$\overline{7}$	Nature of Consideration	Cash
8	Purchase consideration	Rs. 2 Crores (by way of Private Placement of equity sharesin Palred Technology Services Private Limited @10/- perEquity Share.)
9	% of holding proposed tobe Acquired (by furtherinvestment in Subsidiary)	Not Applicable (Already Wholly Owned Subsidiary)
10	Target Information	Palred Technology Services Private Limited carries on thebusiness of wholesale & retail trading. It buys & sells variousproducts such as Mobile Accessories, Computer Accessories,Wifi Cameras, Camera Accessories etc.Date of Incorporation: 08/01/2015Past 3 years turnover of Target Entity:
		2018-2019	2017-2018	2016-2017
		3,31,02,405	1,74,12,183	40,00,000

Disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) 2015

Walker Chandlok & Co LLP 7th Floor, Block III, White House Kundan Bagh, Begumpet Hyderabad 500016 India

T +91 40 6630 8200 F +91 40 6630 8230

Independent Auditor's Report on Standalone Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

To the Board of Directors of Palred Technologies Limited

• We have audited the standalone financial results of Palred Technologies Limited ('the Company') for the $1.$ year ended 31 March 2019, being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Attention is drawn to Note 4 to the standalone financial results regarding the figures for the quarter ended 31 March 2019 as reported in these standalone financial results, which are the balancing figures between audited standalone figures in respect of the full financial year and the published standalone year to date figures up to the end of the third quarter of the financial year. Also, the figures up to the end of the third quarter had only been reviewed and not subjected to audit. These standalone financial results are based on the standalone financial statements for the year ended 31 March 2019 prepared in accordance with the accounting principles generally accepted in India, including Indian Accounting Standards ('Ind AS') specified under Section 133 of the Companies Act, 2013 ('the Act') and published standalone year to date figures up to the end of the third quarter of the financial year prepared in accordance with the recognition and measurement principles laid down in Ind AS 34, Interim Financial Reporting, specified under Section 133 of the Act, and SEBI Circular CIR/CFD/FAC/62/2016 dated 5 July 2016, which are the responsibility of the Company's management. Our responsibility is to express an opinion on these standalone financial results based on our audit of the standalone financial statements for the year ended 31 March 2019 and our review of standalone financial results for the nine months period ended 31 December 2018.
• We conducted our audit in accordance with the auditing standards generally accepted in India. Those $\overline{2}$ . standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial results are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts disclosed as financial results. An audit also includes assessing the accounting andiol principles used and significant estimates made by management. We believe that our audit provides a reasonable basis for our opinion.

N

• In our opinion and to the best of our information and according to the explanations given to us, the $\ddot{3}$ . standalone financial results:
  • (i) are presented in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Circular CIR/CFD/FAC/62/2016 dated 5 July 2016 in this regard; and
  • (ii) give a true and fair view of the standalone net loss (including other comprehensive loss) and other financial information in conformity with the accounting principles generally accepted in India including Ind AS specified under Section 133 of the Act for the year ended 31 March 2019.

For Walker Chandiok & Co LLP Chartered Accountants Firm Registration No: 001076N/N500013

$M_i^{\nu}$

Partner Membership No.: 213356

andiol

Place: Hyderabad Date: 30 May 2019

PALRED TECHNOLOGIES LIMITED

(H Nn 8-2-707,/? /R, Plnt Nn 2 ,Road Nn 1 2, Ran jara Hills, Hvderabad-S00 034, Telanqrnn)

Audited Standalone Financial Results for the quarter and year ended 31 March 2019

t in Lakhs except earnings per sharc
Paticulars		Quartet endedYear ended
(refer note 4)	31-Mat-19	31-Dec-18	31-Mar-18	31-Mat-19	31-Mar-18
	(Audited)	(Unaudited)	(Audited)	(Audited)	(Audited)
Other income	33.45	36.59	99.93	153.7 6	ZJ )JJ
Iotal income	33.45	36.59	99.93	r53.76	237.53
Expenses
Employee benefits expense.	16.36	16.31	17.45	64.09	66.83
Depreciation and amortisation expense	-). r4	2.61	8.26	10.92	22.63
Other expenses	76.77	17.99	8.85	69.72	70.23
Iotal expenses	36.21	30.91	34.56	t44.73	t59.69
Profit/(loss) before exceptional item	(2.76)	5.68	65.37	9.03	77.84
Exceptional item (refer note 3)	686.52	3,090.77		4,777.23
Ptofit/(loss) for the period/year	(68e.28)	(3,085.03)	65.37	(4,768.20)	7184
Other comprehensive income
Items that will not be reclassified to profit or loss
Remea surement of post-employment benefit obliga tions	0.24	0.10	0.69	0.53	0.39
Dthet comprehensive loss	(0.24)	(0.10)	(0.6e)	(0.53)	(0.3e)
f otal comprehensive income/(loss)	(68e.s2)	(3,085.13)	64.68	(4,768.73)	77.45
Paid-up equity share capital (Face value {10 per share)	973.26	973.26	973.26	973.26	97326
Other equity				2,063.30	6,83204
Earnings per equity share (EPES)
(not annualised for the quarters)
Basic and Diluted EPES	(7.08'	(31 .70)	0.67	(48.ee)	750

Notes:

1. The audited standalone financial results for the quarter and year ended 31 Match 2079 were reviewed by the Audit Committe< and approved by the Board of Directors of the Company at their meetings held on 30May 2079.

2. The Company has adopted Ind AS 115 using modified retrospective application method with effect from 1 April 2018 anc accordingly these standalone financial results are prepared in accordance with recognition and measurement principles laid dowr in Ind AS 1 15, Revenue from Contracts with Customers. There is no material impact of adoption of Ind AS 11 5 on standalonr financial results.

3. Due to changes in the business conditions viz. subsidiary companies facing increased competition, higher customer acquisitior costs etc., the subsidiary companies incurred significant losses for year ended 31 March 2079. The subsidiary companies havt ifrategically downsized the operations and employee hase to cut douzn the ftiture losses. On the basis of X4anagement evaluation the aggregate catrytng amount of investments exceeds the recoverable amount by 74,777.23 lakhs as of 37 March 2079 A,ceurdirrgly, tlc Nlatageurcut Las creatcd pruvisiuu ft-tr dilrilurit-ln il value of investmenrs aggregating to14,777.23 lakhs as a. ltl h,fnrch 2(-119,

tr. lhe ttgures lor the quarter ended lJl t\larch 2019 and 3'l l\larch 2.1\18 are the halancing figures benrresn audit€d figures ir respect of the fi.rll fnancial yeat ended 31 Match 201,9 ar.d 31 March 2018, respectively and the unaudited published year to dat< frgures up to 31 December 2018 ar'd 37 Decembet 2017 respectively, being the end of the third quarte44@pective irnancial years, which were subjected to limited review. Z"oXgrN

PATRED TECHNOTOGIES TIMITED (FORMERLY KNOWN AS FOUR SOFT LIMITED) CfN No. ; L72200AP1990P1C033131 Regd. Office: Ptot No. 2, 8-2-703/218, Road No. 12, Banjara Hitts, Hyderabad' 500034. Tele : *91 40 6713 8810 | Website : wwwpatred.com

Standalone Balance Sheet
Particulars	31-Mar-19	₹ in Lakhs31-Mar-18
	(Audited)	(Audited)
ASSETS
Non-current assets
Property, plant and equipment	13.29	21.20
Intangible assets		3.01
Financial assets
Investments in subsidiaries	880.77	4,654.00
Other non-current assets	234.20	207.55
Total non-current assets	1,128.26	4,885.76
Current assets
Financial assets
Investments		598.68
Cash and cash equivalents	12.74	13.88
Bank balances other than cash and cash equivalents	1,922.95	2,286.41
Other financial assets	15.99	55.16
Other current assets	0.79	2.88
Total current assets	1,952.47	2,957.01
Total assets	3,080.73	7,842.77
EQUITY AND LIABILITIES
EQUITY
Equity share capital	973.26	973.26
Other equity	2,063.30	6,832.04
Total equity	3,036.56	7,805.30
LIABILITIES
Non-current liabilities
Provisions	3.77	2.48
Total non-current liabilities	3.77	2.48
Current liabilities
Financial liabilities
Other financial liabilities	38.13	33.52
Other current liabilities	2.27	1.47
Total current liabilities	40.40	34.99
Total liabilities	44.17	37.47
Total equity and liabilities	3,080,73	7,842,77

For and on behalf of the Board of Directors echnologies

palred

Hyderabad

$\sigma_{\rm 31100}$

Palred Technologies Limited Palem9 rikanth Reddy Chairman and Managing Director DIN: 00025889

Place: Hyderabad Date: 30 May 2019

PALRED TECHNOLOGIES LIMITED (FORMERLY KNOWN AS FOUR SOFT LIMITED)

CIN No.: L72200AP1990PLC033131Plot No. 2, 8-2-703/2/B, Road No. 12, Banjara Hills, Hyderabad - 500 034.Telefax: +91 40 67138810 1 Website : www.palred.com

Walker Chandlok & Co LLP 7th Floor, Block III, White House Kundan Bagh, Begumpet Hyderabad 500016 India

T +91 40 6630 8200 F +91 40 6630 8230

Independent Auditor's Report on Consolidated Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

To the Board of Directors of Palred Technologies Limited

• We have audited the consolidated financial results of Palred Technologies Limited ('the Holding Company') and $1$ its subsidiaries (the Holding Company and its subsidiaries together referred to as 'the Group'), for the year ended 31 March 2019, being submitted by the Holding Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Attention is drawn to Note 7 to the consolidated financial results regarding the figures for the quarter ended 31 March 2019 as reported in these consolidated financial results, which are the balancing figures between audited consolidated figures in respect of the full financial year and the published consolidated year to date figures up to the end of the third quarter of the financial year. Also, the figures up to the end of the third quarter had only been reviewed and not subjected to audit. These consolidated financial results are based on the consolidated financial statements for the year ended 31 March 2019 prepared in accordance with the accounting principles generally accepted in India, including Indian Accounting Standards ('Ind AS') specified under Section 133 of the Companies Act, 2013 ('the Act') and published consolidated year to date figures up to the end of the third quarter of the financial year prepared in accordance with the recognition and measurement principles laid down in Ind AS 34, Interim Financial Reporting, specified under Section 133 of the Act, and SEBI Circular CIR/CFD/FAC/62/2016 dated 5 July 2016, which are the responsibility of the Holding Company's management. Our responsibility is to express an opinion on these consolidated financial results based on our audit of the consolidated financial statements fin the year ended 31 March 2019 and our review of concolidated financial recults for the nine months period ended 31 December 2018.
• We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards $2.$ require that we plan and perform the audit to obtain reasonable assurance about whether the financial results are free of material misstatements. 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 an estimates made by management. We believe that our audit provides a reasonable basis for our opinion.

Chartered Accountants

Walker Chandiok & Co LLP is registered with limited liability with identification number AAC-2085 and its registeredoffice at L-41 Connaught Circus, New Delhi, 110001, India

• In our opinion and to the best of our information and according to the explanations given to us and based $3.$ on the consideration of other financial information of the subsidiaries, the consolidated financial results:
  • include the financial results for the year ended 31 March 2019, of the following subsidiaries: $(i)$
    • A. Palred Electronics Private Limited (formerly known as Palred Online Technologies Private Limited), India
    • B. Palred Technology Services Private Limited, India
    • C. Palred Retail Private Limited, India
    • D. Palred Technology Services Inc., United States of America
    • E. Palred Online Bilism Teknoljileri Ticaret Anonim Sirketi, Republic of Turkey
    • F. Palred Online Technologies Limited, Hong Kong
    • G. Palred Technology Shenzhen Company Ltd, China
  • are presented in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations $(ii)$ and Disclosure Requirements) Regulations, 2015, read with SEBI Circular CIR/CFD/FAC/62/2016 dated 5 July 2016 in this regard; and
  • give a true and fair view of the consolidated net loss (including other comprehensive loss) and other $(iii)$ financial information in conformity with the accounting principles generally accepted in India including Ind AS specified under Section 133 of the Act for the year ended 31 March 2019.
• We did not audit the financial information of four subsidiaries whose financial information reflect total assets $4.$ of ₹271.04 Lakhs and net assets of ₹242.80 Lakhs as at 31 March 2019, and total revenues of ₹160.20 Lakhs for the year ended on that date, as considered in the consolidated financial results. These financial information are unaudited and 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, and our report in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Circular CIR/CFD/FAC/62/2016 dated 5 July 2016, in so far as it relates to the aforesaid subsidiaries, are based solely on such unaudited financial information. In our opinion and according to the information and explanations given to us by the management, these financial information are not material to the Group.

Our opinion on the consolidated financial results is not modified in respect of this matter with respect to our reliance on the financial information certified by the management.

For Walker Chandiok & Co LLP Chartered Accountants Firm Registration No: 001076N/N500013

Niik

Nikhil Vaid Partner Membership No.: 213356

Place: Hyderabad Date: 30 May 2019

PALRED TECHNOLOGIES LIMITED

(H.No. 8-2-703/2/B, Plot No.2, Road No.12, Banjara Hills, Hyderabad-500 034, Telangana)

Audited Consolidated Financial Results for the quarter and year ended 31 March 2019

Particulars		Quarter ended			Year ended
(refer note 7)	31-Mar-19	31-Dec-18	31-Mar-18	31-Mar-19	$31-Mar-18$
	(Audited)	(Unaudited)	(Audited)	(Audited)	(Audited)
Revenue from operations	728.81	744.25	1,513.11	3,393.53	5,122.13
Other income	13.97	46.53	106.93	181.29	258.82
Total revenue	742.78	790.78	1,620.04	3,574.82	5,380.95
Expenses
Purchases of stock-in-trade	254.63	481.38	650.89	1,443.60	2,098.15
Changes in inventories of stock-in-trade	137.03	(136.98)	(26.88)	143.73	(150.63)
Employee benefits expense	160.59	167.84	195.56	729.63	759.28
Finance costs	1.21	4.63	3.94	8.89	3.94
Depreciation and amortisation expense	21.00	18.31	36.71	70.16	88.70
Other expenses	411.77	490.05	882.37	2,087.41	3,223.80
Total expenses	986.23	1,025.23	1,742.59	4,483.42	6,023.24
Loss before exceptional item	(243.45)	(234.45)	(122.55)	(908.60)	(642.29)
Exceptional item (refer note 5)	(216.20)			(216.20)
Loss for the year/period	(459.65)	(234.45)	(122.55)	(1, 124.80)	(642.29)
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurement of post-employment benefit obligations	(4.85)	0.27	3.92	(4.05)	1.07
Items that will be reclassified to profit or loss
Exchange differences on translation of foreign operations	(0.67)	7.23	0.76	(16.66)	0.76
Other comprehensive income/(loss)	5.52	(7.50)	(4.68)	20.71	(1.83)
Total comprehensive loss for the year/period	(454.13)	(241.95)	(127.23)	(1, 104.09)	(644.12)
Loss for the period/year attributable to:
Owners of the parent	(438.83)	(213.16)	(102.37)	(1,030.32)	(547.37)
Non-controlling interests	(20.82)	(21.29)	(20.18)	(94.48)	(94.92)
Total comprehensive loss attributable to:
Owners of the parent	(433.24)	(220.45)	(106.94)	(1,011.06)	(549.08)
Non-controlling interests	(20.89)	(21.50)	(20.29)	(93.03)	(95.04)
Paid-up equity share capital (Face value ₹10 per share)	973.26	973.26	973.26	973.26	973.26
Other equity				2,179.17	3,296.82
Earnings per equity share (EPES)
(not annualised for the quarters)
Basic and Diluted EPES	(4.51)	(2.19)	(1.05)	(10.59)	(5.72)

Notes:

1. These audited consolidated financial results relate to Palred Technologies Limited ('the Holding Company') and its Subsidiaries (together constitute 'the Group') and are prepared by applying Ind AS 110 - "Consolidated Financial Statements".

2. The audited consolidated financial results for the year ended 31 March 2019 were reviewed by the Audit Committee and approved by the Board of Directors of the Company at their meetings held on 30 May 2019.

3. The Group has adopted Ind AS 115 using modified retrospective application method with effect from 1 April 2018 and accordingly these consolidated financial results are prepared in accordance with recognition and measurement principles laid down in Ind AS 115, Revenue from Contracts with Customers. There is no material impact of adoption of Ind AS 115 in revenue on consolidated financial results.

4. The Group operates in one reportable segment which is "Trading in mobiles, electronic products, fashion accessories and providing related services"

5. Due to shangen in the huniness sonditions via the Group facing increased competition, higher customer acquisition costs etc., the Oroup incurred significant losses for year ended 31 March 2019 as a result of which the management have strategically downsized the operation and employee hase to cut down the future losses. On the basis of Management evaluation, the aggregate carrying amount of Goodwil exceeds the recoverable amount by ₹216.20 lakhs as of 51 March 2019. Accordingly, the Management has provided for Goodwil uggregating in ₹216.20 lakha as at 31 March 2019.

GANNE 6. The audited consolidated financial results includes the financial results of the following subsidiaries for the recent $0019$

A. Palred Electronics Private Limited (formerly known as Palred Online Technologies Private Limited), In B. Palred Technology Services Private Limited, India

C. Palred Retail Private Limited, India

D. Palred Technology Services Inc., United States of America

• E. Palred Online Bilism Teknoljileri Ticaret Anonim Sirketi, Republic of Turkey
• F. Palred Online Technologies Limited, Hong Kong
• G. Palred Technology Shenzhen Company Ltd, China

PALRED TECHNOLOGIES LIMITED

derab3

(FORMERLY KNOWN AS FOUR SOFT LIMITED)

CIN No.: L72200AP1990PLC033131

Regd. Office: Plot No. 2, 8-2-703/2/B, Road No. 12, Banjara Hills, Hyderabad · 500 034.

Tele: +91 40 6713 8810 | Website: www.palred.com

Place: Hyderabad

Date: 30 May 2019

The figures for the quarter ended 31 March 2019 and 31 March 2018 are the balancing figures between audited figures in respect of the full financial year ended 31 March 2019 and 31 March 2018, respectively and the unaudited published year to date figures up to 31 December 2018 and 31 December 2017 respectively, being the end of the third quarter of the respective financial years, which were subjected to limited review.

		₹ in Lakhs
Particulars		$31-Mar-18$
	(Audited)	(Audited)
ASSETS
Non-current assets
Property, plant and equipment	58.70	104.40
Goodwill		216.20
Intangible assets	17.40	35.85
Financial assets
Loans	24.56	33.90
Other non-current assets	296.69	224.69
Total non-current assets	397.35	615.04
Current assets
Inventories	420.13	575.76
Financial assets
Investments	10.58	753.25
Trade receivables	148.43
Cash and cash equivalents	371.95	308.07
Bank balances other than cash and cash equivalents	1,928.22	2,511.45
Other financial assets	86.72	267.20
Other current assets	263.73	210.80
Total current assets	3,229.76	4,626.53
Total assets	3,627.11	5,241.57
EQUITY AND LIABILITIES
EQUITY
Equity share capital	973.26	973.26
Other equity	2,179.17	3,296.82
Total equity attributable to owners	3,152.43	4,270.08
Non-controlling interests	152.10	131.74
Total equity	3,304.53	4,401.82
LIABILITIES
Non-current liabilities
Financial liabilities
Other financial liabilities	51.00	9.09
Provisions	17.13	13.52
Total non-current liabilities	68.13	22.61
Current liabilities
Financial liabilities
Borrowings		33.73
Trade payables
-total outstanding dues of micro and small enterprises
-total outstanding dues of creditors other than micro and small enterprises	61.78	297.00
Other financial liabilities	174.85	445.25
Other current liabilities	17.63	41.12
Provisions	0.10	0.04
Total current liabilities	254.45	817.14
Total liabilities	322.58	839.75
Total equity and Habilities	3,627.11	5,241.57

For and on behalf of the Board of Directors plogies Fechn Palred Technologies Limited alred Palem Srkanth Reddy Chairman and Managing Director ö DIN: 00025889 Vderabad

Imite

PALRED TECHNOLOGIES LIMITED

(FORMERLY KNOWN AS FOUR SOFT LIMITED)

CIN No.: L72200AP1990PLC033131 Regd. Office: Plot No. 2, 8-2-703/2/B, Road No. 12, Banjara Hills, Hyderabad · 500 034. Tele: +91 40 6713 8810 | Website: www.palred.com