Shiva Texyarn Ltd. — Annual Report 2021

Jun 25, 2021

SHIVA TEXYARN LIMITED

Regd. Office: 52, East Bashyakaralu Road, R.S.Puram, Coimbatore -641 002, Tamilnadu INDIA Telephone : 0422 -2544955 E-mail: shares@shivatex.co in Website : www.shivatex.co.in CIN : L65921TZ1980PLC000945 GSTRN : 33AABCA6617MIZO

s;rvL|s;Rc|F"|u2|2fl2:1-2:2. 25th June 2021

The Manager	BSE Limited
Listing Department	Floor 25
National Stock Exchange of India Limited	Phiroze Jeejeebhoy Towers
"Exchange Plaza", Bandra-Kurla Complex	Dalal Street
Bandra (East), Mumbai 400 051	Mumbai 400 001
Scrip Code: SHIVATEX	Scrip Code: - 511108

Dear Sir,

SUB:- AUDITED FINANCIAL RESULTS OF THE COMPANY FOR THE YEAR ENDED 31ST MARCH 2021 & OUTCOME OF THE BOARD MEETING HELD ON 25TH JUNE 2021

The Board of Directors at their meeting held on 25th June 2021 have approved interalia the following:-

• 1. Audited Financial Results of the companyforthe year ended 31St March 2021.
• 2 The Board of Directors have recommended a dividend of Rs.1.20/-per share for every one equity share of Rs.10/-each, for the financial year 2020-2021.

The Audited Financial Results of the Company for the year ending on 31St March 2021 along with Auditors Report thereon pursuant to Regulation 33 of the SEBl (Listing Obligations and Disclosure Requirements) Regulations, 2015 are enclosed herewith.

We declare that the Auditors Report issued by M/s. Deloitte Haskins & Sells LLP, Chartered Accountants., Statutory Auditors for Audited Financial Results of the Company for the year ended 31St March 2021 are with unmodified opinion.

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The meeting commenced at 12.00 Noon and concluded at 1.J2A P.M.

Kindly take on record the above.

Thanking you

Yours faithfully

for Sliiva Te>:yati` .i,!rtiit.?d

cQ ri.1. p .= i i / ± i r .I.1 a I y t+i . N o , 2 1 2 3 4.

SHIVA TEXYARN LIMITED

Regd. Office: 52, EAST BASHYAKARALU ROAD, R S PURAM COIMBATORE 641 002

CIN: L65921TZ1980PLC000945 Website: www.shivatex.co.in

STATEMENT OF FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31.03.2021

		(Rs. in lakhs except earnings per share data)
		Quarter ended				Year ended
SI	PARTICULARS	31.03.2021	31.12.2020	31.03.2020	31.03.2021	31.03.2020
No		(Refer Note:4)	(Unaudited)	(Refer Note:4)	(Audited)	(Audited)
I	Income from operations:
	Revenue from operations	10,940.94	9,673.52	8,977.54	34,079.93	36,812.73
	Other income	392.90	262.24	403.07	694.61	457.02
	Total income	11,333.84	9,935.76	9,380.61	34,774.54	37,269.75
$\mathbf{I}$	Expenses
	a) Cost of materials consumed	5,904.22	5,513.49	5,308.19	17,044.97	22,260.32
	b) Purchases of stock in trade	697.02	242.53	40.60	1337.62	736.34
	c) Changes in inventories of finished goods/WIP/stock in trade	21.74	97.90	616.23	1091.33	442.10
	d) Employee benefits expense	1,170.46	958.75	1,009.44	3,635.58	4,113.64
	e) Finance costs	416.51	383.95	532.29	1,766.90	2,230.74
	f) Depreciation and amortisation expenses	515.30	377.66	407.03	1,568.38	1,468.93
	g) Other expenses	2,027.78	1,666.60	1,498.34	6,669.15	5,894.94
	Total expenses	10,753.03	9,240.88	9,412.12	33,113.93	37,147.01
	III Profit before tax	580.81	694.88	(31.51)	1,660.61	122.74
IV	Tax expense
	Current tax	831.06	56.65	5.28	1,019.75	25.16
	Deferred tax	(620.64)	85.51	(9.30)	(587.20)	(57.12)
V	Profit/(loss) after tax	370.39	552.72	(27.49)	1,228.06	154.70
	VI Other comprehensive income/(loss)	(7.52)	14.48	(45.70)	20.37	(39.00)
	VII Total comprehensive income	362.87	567.20	(73.19)	1,248.43	115.70
	VIII Paid up Equity Share Capital	1,296.27	1,296.27	1,296.27	1,296.27	1,296.27
	(Face value Rs 10/- each)
	IX Reserves excluding revaluation reserves				11066.05	9817.62
	(as per audited balance sheet)
$\mathbf X$	Earnings per share (not annualised for quarters)
	i) Basic	2.86	4.26	(0.21)	9.47
	ii) Diluted	2.86	4.26	(0.21)	9.47	1.19

Annexure A

SHIVA TEXYARN LIMITEDSTATEMENT OF ASSETS AND LIABILITIES

Particulars	As at 31.03.2021	As at 31,03,2020
ASSETS	(Audited)	(Audited)
(1) Non-current assets
(a) Property, plant and equipment	17,231.78	19,596.49
(b) Capital work-in-progress	295.86	31.31
(c) Right of use asset	56.92	111.58
(d) Intangible assets	87.22	364.47
(e) Investment property	3.10	3.16
(f) Financial assets
(i) Investments	109.97	58.18
(g) Other non-current assets	448.94	538.35
Total non-current assets	18,233.79	20,703.54
(2) Current assets
(a) Inventories	7,230.89	8,004.37
(b) Financial assets
(i) Trade receivables	3,417.89	4,802.48
(ii) Cash & cash equivalents	212.06	129.86
(iii) Bank balances other than (ii) above	791.65	612.01
(iv) Loans	60.43	97.44
(v) Other financial assets	13.97	155.01
(c) Current tax assets (net)		52.38
(d) Other current assets	1,049.76	736.37
(e) Assets classified as held for sale		176.92
Total current assets	12,776.65	14,766.84
TOTAL ASSETS	31,010.44	35,470.38
EQUITY AND LIABILITIES
Equity
(a) Equity share capital	1,296.27	1,296.27
(b) Other equity	11,066.05	9,817.62
Total equity	12,362.32	11,113.89
Liabilities
(1) Non-current liabilities
(a) Financial liabilities
(i) Borrowings	5,584.27	6,973.52
(ii) Lease liabilities	45.23	73.07
(b) Deferred tax liabilities (Net)	2,097.39	1,944.63
(c) Provisions	110.09	67.69
Total non-current liabilities	7,836.98	9,058.91
(2) Current liabilities
(a) Financial liabilities
(i) Borrowings	4,913.81	9,967.12
(ii) Trade payables
a. Total outstanding dues of
micro enterprises and small enterprises	9.31	11.23
b. Total outstanding dues of creditors
other than micro enterprises and small enterprises	3,549.89	2,939.38
(iii) Lease liabilities	19.73	54.75
(iv) Other financial liabilities	1,766.73	1,882.40
(b) Provisions	58.85	15.59
(c) Current tax liabilities	82.78
(d) Other current liabilities	410.04	427.11
Total current liabilities	10,811.14	15,297.58
TOTAL EQUITY AND LIABILITIES	31.010.44	35.470.38

Annexure B

SHIVA TEXYARN LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31.03.2021

	For the year ended		For the year ended	(Rs. In lakhs)
Particulars	31.03.2021(Audited)		31.03.2020
			(Audited)
A. CASH FLOW FROM OPERATING ACTIVITIES
Profit before tax		1,660.61		122.74
Adjustments for:
Depreciation and amortisation expenses	1,568.38		1,468.93
(Profit)/loss on sale of assets	(600.65)		(350.27)
Reversal of provision for diminution in value of investments			(10.65)
Provision for TUF interest subsidy receivable	119.54		25.00
Finance costs	1,766.90		2,230.74
Interest income	(51.17)		(42.79)
Dividend income	(0.63)		(0.51)
Bad debts recovered /Other Comprehensive income			(3.00)
Rental income	$-17.79$		(41.98)
		2,784.58		3,275.47
Operating profit before working capital changes		4,445.19		3,398.21
Changes in working capital:
Adjustments for (increase)/decrease in operating assets:
Financial assets
Trade receivables	1,384.59		194.26
Loans	37.01		12.95
Other financial assets	21.50		(22.01)
Non-financial assets
Inventories	773.48		38.63
Other assets	(256.38)		131.23
Adjustments for increase/(decrease) in operating liabilities:
Financial liabilities
Trade payables	608.59		75.39
Other financial liabilities	(26.13)		81.39
Provisions	85.67		0.01
Other liabilities	(17.06)		246.19
		2,611.27		758.04
Cash generated from operations		7,056.46		4,156.25
Net income tax paid/refunded		(190.91)		(52.40)
Net cash flow from operating activities (A)		6,865.55		4,103.85
B. CASH FLOW FROM INVESTING ACTIVITIES
Capital expenditure on property plant and equipment, including
capital advances	(1, 127.38)		(1, 428.12)
Sale/(purchase) of investments	1.50		3.11
Proceeds from sale of assets	2,877.93		677.49
Interest received	51.17		44.42
Rent received	17.78		41.98
Dividend received	0.63		0.51
Margin money deposits matured/(placed)	(182.80)		120.98
Net cash flow form / (used in) investing activities (B)		1,638.83		(539.63)
C. CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from non-current borrowings	2,230.00		921.00
Repayment of non-current borrowings	(3,737.64)		(2, 492.27)
Increase/(decrease) in working capital borrowings	(5,053.31)		221.51
Payment of dividend including tax thereon			(171.90)
Finance costs paid	(1,798.36)		(2, 217.79)
Finance cost on leasehold liability			(18.51)
Repayment of lease liability	(62.86)		(120.52)
Net cash flow used in financing activities (C)		(8, 422.17)		(3,878.48)
Net (decrease) increase in cash and cash equivalents (A+B+C)		82.21		(314.2)

con

Add: Cash and cash equivalents at the beginning of the year		129.86		444.12
Cash and cash equivalents at the end of the period *		212.06		129.86
Reconciliation of Cash and Cash Equivalents with the Balance
Sheet:
Cash and cash equivalents as per cash flow statement
* Comprises:
(a) Cash on hand	5.14		6.33
(b) Cheques/Drafts on Hand			14.15
(c) Balances with banks:	206.92		109.38
(i) In current accounts
Total		212.06		129.86

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NOTES:

• 1. The above Financial Results were reviewed by the Audit Committee and approved by the Board of Directors of the Company at the meeting held on 25 June 2021. The results for the year ended March 31, 2021 has been audited and for the quarter ended March 31, 2021 has been reviewed by the statutory auditors. The statutory auditors .of the Company have issued an unmodified report thereon.
• 1. The company is primarily engaged in the manufacturing of Textile and related products, which in the context of lnd AS 108 l'Operating Segments'' is considered the only significant business segment.
• 1. The outbreak of COVID-19 pandemic and the resulting lockdown during the year has affected the Company's regular operations. The Company has considered the possible effects that may result from the pandemic relating to COVID-19 on the carrying amounts of Property, plant and equipment, lntangibles, Inventories, Receivab]es and CIther assets. 'n developing the assumptions relating to the possible future uncertaint.ies in the global economic conditions because of this pandemic, the Company, as at the date of approval of these financial results has used internal and external sources on the expected future performance of the Company. The Company has evaluated its liquidity position, recoverability and based on current estimates expects the carrying amount of these assets will be recovered. The impact of COVID=19 on thE Company's financial results may differ from that estimated as at the date of approval of these financial results.
• 1. The figures of the last quarter are balancing figures between the audited figures in respect of the full financial years and the published year=to:date figures up to the third qilarter of the respective financial years".
• 1. The Statement of Assets and Liabilities as at March 31, 2021 is given as Annexure A and Statement of Cash Flows for the year ended March 31, 2021 is given as Annexure 8
• 1. Previous period figures have been regrouped and reclassified wherever necessary.

For SlllvA TEXYARN LIMITED

SKSU MANAGING DIR DIN 00002 %:o42E:g\se'

Chartered Accountants Time Square ,7th Floor A.T.T Colony Road Coimbatore – 641 018 Tamil Nadu, India

Tel: +91 422 439 2801 / 803 Fax: +91 422 222 3615

INDEPENDENT AUDITOR'S REPORT ON AUDIT OF ANNUAL FINANCIAL RESULTS AND REVIEW OF QUARTERLY FINANCIAL RESULTS

TO THE BOARD OF DIRECTORS OF SHIVA TEXYARN LIMITED

Opinion and Conclusion

We have (a) audited the Financial Results for the year ended March 31, 2021 and (b) reviewed the Financial Results for the quarter ended March 31, 2021, which were subject to limited review by us, both included in the accompanying "Statement of Financial Results for the Quarter and Year Ended March 31, 2021" of Shiva Texyarn Limited ("the Company"), ("the Statement"), being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("the Listing Regulations").

(a) Opinion on Annual Financial Results

In our opinion and to the best of our information and according to the explanations given to us, the Financial Results for the year ended March 31, 2021:

• i. is presented in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended; and
• ii. gives a true and fair view in conformity with the recognition and measurement principles laid down in the Indian Accounting Standards and other accounting principles generally accepted in India of the net profit and total comprehensive income and other financial information of the Company for the year then ended.

(b) Conclusion on Unaudited Financial Results for the quarter ended March 31, 2021

With respect to the Financial Results for the quarter ended March 31, 2021, based on our review conducted as stated in paragraph (b) of Auditor's Responsibilities section below, nothing has come to our attention that causes us to believe that the Financial Results for the quarter ended March 31, 2021 prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standards and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement.

Basis for Opinion on the Audited Financial Results for the year ended March 31, 2021

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 paragraph (a) of Auditor's Responsibilities section below. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India ("the ICAI") together with the ethical requirements that are relevant to our audit of the Financial Results for the year ended March 31, 2021 under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI's Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion.

Management's Responsibilities for the Statement

This Statement which includes the Financial Results is the responsibility of the Company's Board of Directors and has been approved by them for the issuance. The Financial Results for the year ended March 31, 2021 has been compiled from the related audited financial statements. This responsibility includes the preparation and presentation of the Financial Results for the quarter and year ended March 31, 2021 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 the Indian Accounting Standards 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 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 the 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 Financial Results that give a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the 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 financial reporting process of the Company.

Auditor's Responsibilities

(a) Audit of the Financial Results for the year ended March 31, 2021

Our objectives are to obtain reasonable assurance about whether the Financial Results for the year ended March 31, 2021 as a whole is 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 this 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 Annual 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 made by the Board of Directors.

• Evaluate the appropriateness and reasonableness of disclosures made by the Board of Directors in terms of the requirements specified under Regulation 33 of the Listing Regulations.

• Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Company to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the Statement or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the Annual Financial Results, including the disclosures, and whether the Annual Financial Results represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the Annual Financial Results of the Company to express an opinion on the Annual Financial Results.

Materiality is the magnitude of misstatements in the Annual Financial Results that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Annual Financial Results may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Annual Financial Results.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

(b) Review of the Financial Results for the quarter ended March 31, 2021

We conducted our review of the Financial Results for the quarter ended March 31, 2021 in accordance with the Standard on Review Engagements ("SRE") 2410 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity', issued by the ICAI. A review of interim financial information consists of making inquiries, primarily of the Company's personnel responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with SAs specified under section 143(10) of the Act and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Other Matters

• The Statement includes the results for the Quarter ended March 31, 2021 being the balancing figure between audited figures in respect of the full financial year and the published year to date figures up to the third quarter of the current financial year which were subject to limited review by us. Our report on the Statement is not modified in respect of this matter.

For Deloitte Haskins & Sells LLP

Chartered Accountants (Firm's Registration No. 117366W/W - 100018)

Balaji M.N (Partner) (Membership No. 202094) (UDIN:21202094AAAAEH2041)

Place : Bengaluru Date : June 25, 2021