Palred Technologies Limited — Interim / Quarterly Report 2019

Nov 14, 2018

To, Date: 14.11.2018 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, 2015

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 Wednesday, the 14th day of November, 2018 at 4.00 pm. at the registered office of the Company situated at Plot No: 2, H. No: 8—2—703/2/B, Road No: 12, Banjara Hills, Hyderabad Telangana — 500 034 the following were duly considered and approved by the Board.

• 1. Un-audited financial results for the Quarter & Half year ended 30.09.2018.
• 1. Limited Review Report for the quarter ended 30.09.2018.
• 1. Investment of Rs. 3 Crores in subsidiary company i.e., Palred Online Technologies Private Limited

The meeting of the Board of Directors commenced at 4.00 PM (IST) and concluded at 8:10 P.M (IST)

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

Thanking you.

Yours faithfully, For Palred Technol0gies L' 'ted For Palred Technologies leltrgd /

secretary Naveen Kumcé'?mpany Company Secretary

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 l Website : www.palred.com

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

S. No:	Particulars	Description\
1	Name ofTarget Entity	Palred Online TechnologiesPrivate Limited
2	RelatedPartyTransaction	Yes. The transaction isat arm's length.The interestoftoentitiesthePromoters/promotersaidgroupinvestmentinlimitedtotheisSubsidiaryCompanyextentofandtheinShareholdingDirectorshipSubsidiary Company.
3	Industry ofTarget entity	e-Commerce
4	Acquisition Objectives	company toTo enable subsidiarymeetshort termandtermlongworkingcapitalrequirementsincludingexpansion ofbusiness activities and generalcorporatepurposes.
5	GovernmentandRegulatoryApprovalsrequired	Nil
6	forTime periodCompletion	Next 6 months
7	Nature ofConsideration	Cash
8	Purchase consideration	way ofRs. 3 crores (byPrivate Placement of EquityPalred Online TechnologiesShares inPrivate Limited)
9	of%holdingproposedtobeAcquired(byfurtherinvestmentinSubsidiary)	2.91%
10	Target Information	a. Palred Online TechnologiesPrivate Limited owns thebusiness ofOnline E-commerce andall otherrelatedforactivitiesOnlineinE-commerceoperatingItownsbusiness.ownelectronicsitsbrandPTronitanddealsinlikeSmartproductsWatches,BluetoothPowerMobileHeadsets,Banks,Cables,and Tablet Coversetc.b. Date of15.03.2011.Incorporation:turnoverofc. Past 3 yearsTarget Entity:
		2017-182016-172015-16
		51,20,80,761	41,06,72,819	38,09,93,077

Llmited of pairedTemndlij;W? t/ Company Secretary F

Walker Chandiok &Co LLP

Walker Chandlok a. Co LLP 7m Flam, Block Ill, Whlla Hausa. Kundan Bagh. Begumpe't, Hydelabad son 016 Andttra Pradssh, lndla

T +91 40 6630 8200 F +91 40 6530 5230

Independent Auditor's Review Report on Standalone Quarterly and Year to Date Financial Results of the Palrcd Technologies Limited Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

To the Board of Directors ofPalred Technologies Limited

• We have reviewed the accompanying statement ofunaudited standalone financial results ('Statement') ofPalred Technologies Limited ('thc Company') for the quarter ended 30 September 2018 and the year to date results for thc period 1 April 2018 to 30 September 2013, being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This Statement is the responsibility of the Company's Management and has been approved by the Board of Directors. Our responsibility is to issue a report on the Statement based on our review.
• We conducted our review in accordance with the Standard on Review Engagement (SRE) 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity, issued by the Institute of Chartered Accountants ofIndia. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is 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 prepared in accordance with applicable Indian Accounting Standards specified under Section 133 of die Companies Act, 2013 and SEBI Circulars CIR/CFD/CMD/ls/ZOIS dated 30 November 2015 and CLR/CFD/FAC/62/2016 dated 5 july 2016, and other recognized accounting practices and policies has not disclosed the information required to be disclosed in acco 'dance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, including the manner in which it 15 to be disclosed, or that it contains any material misstatement.

For Walker Chandiok & Co LLP Chartered Accountants Firm Registration 001076N/N500013

120: M [LR/N a. NikhilVaid Partner Membership No.: 213356

Place: Hyderabad Date: 14 November 2018

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PALRED TECHNOLOGIES LIMITED

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

Unaudited Standalone Financial Results for the quarter and half year ended 30 September 2018

Particulars	₹ in Lakhs except earnings per share
		Quarter ended		Half year ended		Year ended
	$30-Sep-18$	30-Jun-18	30-Sep-17	30-Sep-18	30-Sep-17	31-Mar-18
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
Other income	42.35	41.37	48.94	83.72	87.23	231.53
Total income	42.35	41.37	48.94	83.72	87.23	231.53
Expenses
Employee benefits expense	15.76	15.66	15.22	31.42	30.54	66.83
Depreciation and amortisation expense	2.54	2.63	4.11	5.17	8.77	22.63
Other expenses	20.96	20.06	20.31	41.02	44.11	70.23
Total expenses	39.26	38.35	39.64	77.61	83.42	159.69
Profit before tax and exceptional item	3.09	3.02	9.30	6.11	3.81	71.84
Exceptional item (refer note 6)	1,000.00			1,000.00
(Loss)/profit before tax and exceptional item	(996.91)	3.02	9.30	(993.89)	3.81	71.84
Tax expenses
(Loss)/profit for the period/year	(996.91)	3.02	9.30	(993.89)	3.81	71.84
Other comprehensive income, net of taxes
Items that will not be reclassified to profit or loss
Remeasurement of post-employment benefit obligations,	0.09	0.10	(0.10)	0.19
net of taxes					(0.20)	0.39
Other comprehensive income/(loss)	(0.09)	(0.10)	0.10	(0.19)	0.20
Total comprehensive income/(loss)	(997.00)	2.92	9.40	(994.08)	4.01	(0.39)71.45
Paid-up equity share capital (Face value ₹10 per share)	973.26	973.26	973.26	973.26	973.26
Other equity						973.26
Earnings per equity share (EPES)						6,832.04
(not annualised for the quarters)
Basic and Diluted EPES	(10.24)	0.03	0.10
				(10.21)	0.04	0.75

Notes:

1. The unaudited standalone financial results for the quarter and half year ended 30 September 2018 were reviewed by the Audit Committee and approved by the Board of Directors of the Company at their meetings held on 14 November 2018.

2. The standalone financial results for the quarter and half year ended 30 September 2018 were subjected to a limited review by the statutory auditors of the Company.

3. During the quarter ended 30 September 2018, the Company has invested in 1,000,000 equity shares of ₹10 each of Palred Technology Services Private Limited, a subsidiary of the Company, at par value aggregating to ₹100 lakhs.

4. During the quarter ended 30 September 2018, the Company has invested in 2,000,000 equity shares of ₹10 each of Palred Retail Private Limited, a subsidiary of the Company, at a par value aggregating to ₹200 Lakhs.

5. The Company has adopted Ind AS 115 using modified retrospective application method with effect from 1 April 2018 and accordingly these standalone 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 standalone financial results.

6. As at 30 September 2018, the management has estimated the recoverable amount of investments in subsidiaries. On the basis of Management evaluation, the aggregate carrying amount of investments exceeds the aggregate recoverable amount by ₹1,000 lakhs. Accordingly, the Board has considered to create a provision against such investments in subsidiaries amounting to ₹1,000 lakhs, under exceptional item considering the significance and non-recurring nature of the item, for the quarter and half year ended 30 September 2018.

Particulars
	30-Sep-18	₹ in Lakhs31-Mar-18
	(Unaudited)	(Audited)
ASSETS
Non-current assets
Property, plant and equipment	17.49	21.20
Intangible assets	1.56	3.01
Financial assets
Investments in subsidiaries	4,458.00	4,654.00
Other non-current assets	223.88	207.55
Total non-current assets	4,700.93	4,885.76
Current assets
Financial assets
Investments	46.63	598.68
Cash and cash equivalents	26.19	13.88
Bank balances other than cash and cash equivalents	2,059.25	2,286.41
Other financial assets	18.24	55.16
Other current assets	0.44	2.88
Total current assets	2,150.75	2,957.01
Total assets	6,851.68	7,842.77
EQUITY AND LIABILITIES
EQUITY
Equity share capital	973.26	973.26
Other equity	5,837.96	6,832.04
Total equity	6,811.22	7,805.30
LIABILITIES
Non-current liabilities
Provisions	2.95	2.48
Total non-current liabilities	2.95	2.48
Current liabilities
Financial liabilities
Other financial liabilities	36.33	33.52
Other current liabilities	1.18	1.47
	37.51	34.99
		37.47
Total current liabilitiesTotal liabilitiesTotal equity and liabilities	40.46

Place: Hyderabad Date: 14 November 2018 HYDERAE

Priem Srikanth ReddyChairman and Managing Director

Walker Chandiok &Co LLP

walker cauudluk & ca LLP 7m Floor, Block III. wall. Hcmt Kundan Baal» aauumnal. Hyderabad sou ma Andhrn Pmdnsh' India

1 M3! an Man 3230 F at All Bean 9230

Independent Auditor's Review Report on Consolidated Quarterly and Year to Date Financial Results of the Paired Technologies Limited Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

To the Board of Directors of Pnlred Technologies Limited

• 1. We have reviewed the accompanying statement of unauditcd consolidated financial results ('Statement') of Palred Technologies Limited (the Company') and its subsidiaries (the Company and its subsidiaries together referred to as 'the Group'), (Refer Annexure 1 for the list of subsidiaries included in the Statement) to: the quarter ended 30 September 2018 and the consolidated year to date results for the period 1 April 2013 to 30 September 2018, being submitted by the Company pursuant to the requirements of Regulan'on 33 of the SEBI (Listing Obligations and Disclosure Requiremmts) Regulations, 2015. This Statement is the responsib ty of the Company's management and has been approved by the Board of Directors. Our responsibility is to issue a report on the Statement based on our review.
• 1. "I: conducted our review in accordance with the Standard on Review Engagemmt (SRE) 2410, Review of Interim Financial Information Perfumed by the Independent Auditor of the Entity, issued by the Institute of Chartered Accountants of India This standard requires that We plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement A rcvimv 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.
• 1. Based on our review conducted as above, nothing has come to our attention that causes us to bdieve that the accompanying Smtcment prepared in accordance with applicable Indian Accounting Standards specified under Section 133 of the Companies Act, 2013 and SEBI Circulars CIR/CFD/CMD/lS/ZDIS dated 30 November 2015 and ClR/CFD/FAC/éZ/ZDIG dated 5 July 2016, and other recognized accounting practices and policies has not disclosed the in Formation required to be disclosed in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, including the manner in which it is to be disclosed, or that it contains any material misstatement

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1. We did not review the interim financial infnxma lion offive subsidladcs, included in the Statement whose lntexim financial information reflect total assets of i574." Lnkhs and net asses 01326829 Liklls as at 30 September 2018. total revenues of {91.95 Lakbs and {106.47 Lakhs for the quarter and half yea: ended 30 Scptcmbct 2018 respectively, and mu profit after tax (including other comprehcnsive income) of §6DS Lakhs and $1113 Lakhs for the quarter nnd half year ended 30 September 2018 respectively Such interim financial information Inns not been reviewed and has bean furnished to us by the Management and our conclusion on the cnnsulidatcd financial xwults, in so fat as it relates to [11: amounls and disclosnzcs included in respect of the nfotesaid subsidiaries is based solely on such interim financial information certified by thc Management, Our review repel! is not modified in respect of this 11131ch

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

MmIkhianidVJ

Pmmcx ' MembetslupNo.:213356

Placn: Hydmbad Date: 14 November 2018

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Annexure 1

List of subsidiaries included in the Statement

• A. Palred Online Technologies Private Limited, India
• B. Palred Technology Services Private Limited, India
• C. Palred Retail Private Limited, India
• D. Palred Technology Services Inc., USA
• E. Palred Online Bilism Teknoljileri Ticaret Anomin Sirketi, Turkey

or harmer and

• F. Palred Online Technologies Limited, Hong Kong
• G. Palred Technology Shenzhen Company Ltd, China

PALRED TECHNOLOGIES LIMITED

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

Unaudited Consolidated Financial Results for the quarter and half year ended 30 September 2018

Particulars	Quarter ended			$\bar{\bar{\epsilon}}$ in Lakhs except earnings per shareHalf year ended
	30-Sep-18	30-Jun-18	30-Sep-17	30-Sep-18	30-Sep-17	Year ended
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	31-Mar-18(Audited)
Revenue from operations	886.73	1,033.74	1,182.98	1,920.47	2,217.75
Other income	68.88	51.91	56.29	120.79	102.23	5,122.13258.82
Total revenue	955.61	1,085.65	1,239.27	2,041.26	2,319.98
Expenses						5,380.95
Purchases of stock-in-trade	323.87	383.72	519.33	707.59	939.82	2,098.15
Changes in inventories of stock-in-trade	100.40	43.28	(72.45)	143.68	(94.99)	(150.63)
Employee benefits expense	192.57	208.63	180.80	401.20	358.29	759.28
Finance costs	1.84	1.21		3.05		3.94
Depreciation and amortisation expense	15.07	15.78	18.63	30.85	34.89	88.70
Other expenses	553.56	632.03	773.63	1,185.59	1,473.71	3,223.80
Total expenses	1,187.31	1,284.65	1,419.94	2,471.96	2,711.72	6,023.24
Loss for the period/year	(231.70)	(199.00)	(180.67)	(430.70)	(391.74)	(642.29)
Other comprehensive income, net of taxes
Items that will not be reclassified to profit or loss
Remeasurement of post-employment benefit obligations,	0.26	0.27	(0.95)	0.53	(1.90)	1.07
net of taxes
Items that will be reclassified to profit or loss
Exchange differences on translation of foreign operations	(12.28)	(10.94)		(23.22)		0.76
Other comprehensive income/(loss)	12.02	10.67	0.95	22.69	1.90	(1.83)
Total comprehensive loss	(219.68)	(188.33)	(179.72)	(408.01)	(389.84)	(644.12)
Loss for the period attributable to:
Owners of the parent	(201.32)	(177.01)	(152.42)	(378.33)	(333.23)	(547.37)
Non-controlling interests	(30.38)	(21.99)	(28.25)	(52.37)	(58.51)	(94.92)
Total comprehensive loss attributable to:
Owners of the parent	(190.33)	(167.04)	(151.47)	(357.37)	(331.33)	(549.08)
Non-controlling interests	(29.35)	(21.29)	(28.25)	(50.64)	(58.51)	(95.04)
Paid-up equity share capital (Face value ₹10 per share)	973.26	973.26	973.26	973.26	973.26	973.26
Other equity						3,296.82
Earnings per equity share (EPES)
(not annualised for the quarters)
Basic and Diluted EPES	(2.07)	(1.82)	(1.57)	(3.89)	(3.54)	(5.72)

Notes:

1. The unaudited consolidated financial results for the quarter ended 30 September 2018 were reviewed by the Audit Committee and approved by the Board of Directors of the Company at their meetings held on 14 November 2018.

2. The unaudited consolidated financial results for the quarter ended 30 September 2018 were subjected to a limited review by the statutory auditors of the Company.

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 computers, mobiles, electronic products, fashion accessories and providing related services".

	Consolidated Balance Sheet
Particulars		₹ in Lakhs
	30-Sep-18	31-Mar-18
ASSETS	(Unaudited)	(Audited)
Non-current assets
Property, plant and equipment	90.61	104.40
Goodwill	216.20	216.20
Intangible assets	29.37	35.85
Financial assets
Loans	34.20	33.90
Other non-current assets	260.07	224.69
Total non-current assets	630.45	615.04
Current assets
Inventories	419.85	575.76
Financial assets
Investments	146.70	753.25
Cash and cash equivalents	486.39	308.07
Bank balances other than cash and cash equivalents	2,302.94	2,511.45
Other financial assets	258.76	267.20
Other current assets	481.89	210.80
Total current assets	4,096.53	4,626.53
Total assets	4,726.98	5,241.57
EQUITY AND LIABILITIES
EQUITY
Equity share capital	973.26	973.26
Other equity	2,873.18	3,296.82
Total equity attributable to ownersNon-controlling interests	3,846.44	4,270.08
Total equity	148.38	131.74
LIABILITIES	3,994.82	4,401.82
Non-current liabilities
Financial liabilities
Other financial liabilities
Provisions	25.25	9.09
Total non-current liabilities	16.65	13.52
Current liabilities	41.90	22.61
Financial liabilities
Borrowings
Trade payables	159.51	33.73
Other financial liabilities	193.73	297.00
Other current liabilities	321.28	445.25
Provisions	15.70	41.12
Total current liabilities	0.04	0.04
Total liabilities	690.26	817.14
Total equity and liabilities	732.16	839.75
	4,726.98	5,241.57
	For and on behalf of the Board of Dreem DOCBPalem Srikahth Reddy	IYDERABAD
Place: Hyderabad	Chairman and Managing Director
Date: 14 November 2018	DIN: 00025889