Tilaknagar Industries Ltd — Interim / Quarterly Report 2020

Feb 13, 2020

ONLINE FILING

Ref: TI/BSE/COMP/ 19-20/90

February 13, 202 0

To, The Manager (Listing), BSE Limited, P.J. Towers, Dalal Street, Mumbai - 400 001 Ph: 022 2272 5092/3030 Fax: 022 2272 3353

Sub: Un-audited financial results (Standalone and Consolidated) of the Company for the guarter and nine months ended Dec ember 31, 2019 Ref: Scrip Code - 507205

Dear Sir /Madam,

We wish to inform you that the Board of Directors of the Company has, in its Meeting held on February 13, 2020, 'approved and took on record th e un-a u dited fin ancial results (Standalone and Consolidated) of the Company for the quarter and nine months ended December 31, 2019. Copies of the same along with the Limited Review Reports submitted by M/s. Harshil Shah & Company, Sta tu tory Auditors of the Company a re enclosed herewith pursuant to the provisions of Regulation 33 of the SEBI (LODR) Regulations, 2015.

Please take note that the Meeting commenced at 04.1 5 p .m. and concluded at 06. 10 p .m.

Kindly acknowledge the receipt and take the same on your record.

Thanking you,

Yours faithfully,

For Tilaknagar Industries Ltd.

Company Secretary Encl: a/a

Corp. Office : Industrial Assurance Building, 3rd Floor, Churchgate, Mumbai, Maharashtra - 400 020, India P +91 (22) 2283 1716/18 F +91 (22) 2204 6904 E til iquor@tilind.com

Regd. Office: P.O. Tilaknagar, Tai. Shrirampur, Dist. Ahmednagar, Maharashtra - 413 720, India p +91 (2422) 265 123 I 265 032 F +91 (2422) 265 135 E regoff@tilind.com

HARSHIL SHAH & COMPANY

Chartered Accountants

Phone :- 022 401 39 401 www.caharshilshah.com. E Mall :- info@caharshilshah.com

Independent Auditor's Review Report on the Quarterly and Year to date Unaudited Standalone Financial Results of Tilaknagar Industries Ltd. pursuant to Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

Review Report to The Board of Directors of Tilaknagar Industries Ltd.

• 1. We have reviewed the accompanying statement of unaudited standalone financial results of Tilaknagar Industries Ltd. ("the Company") for the quarter and nine months ended December 31, 2019 ("the Statement"), attached herewith, being submitted by the Company pursuant to the requirement of Regulation 33 of The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended .
• 1. This Statement, which is the responsibility of the Company's management and approved by the Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), specified under Section 133 of the Companies Act, 2013, as amended read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
• 1. We conducted our review of the Statement 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 Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statements are free of material misstatement. A review is limited primarily to inquiries of company personnel and an analytical procedure 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. The Company has not impaired one of the ENA plants as required by Indian Accounting Standard 36 "Impairment of Assets" ("Ind AS 36") though there is an indication of impairment. Reference is invited to note no. 4 of the Statement.
• 1. The company has not made impairment of advances given to certain parties amounting to Rs. 6,074.08 lakhs as required by Indian Accounting Standard 109 "Financial Instruments" ("Ind AS 109"). Reference is invited to note no. 5 of the Statement.
• 1. The National Company Law Tribunal ("NCLT") has ordered for liquidation of Prag Distillery (P) Ltd . ("Prag") wholly owned subsidiary of the Company, vide its order No. MA 309/2018 in CP1067/2017 dated July 26, 2018. However, the Company

114, Dimple Aracade, Thakur Complex. Kandivali East. Mumbai 101.

has not made impairment provision for equity investment of Rs. 1,543.35 lakhs in Prag as required by Ind AS 36. Reference is invited to note no. 7 of the Statement.

• 1. Based on our review conducted and procedures performed as stated in paragraph 3 above, except for the effects of the matters described in paragraph 4, 5 and 6 above nothing has come to our attention that causes us to believe that the accompanying Standalone Statement of unaudited financial results has not been prepared in all material respects in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India and 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.
• 1. We draw attention to note no. 6 in the Statement that the Company has incurred net loss during the quarter and nine months ended December 31, 2019 and due to accumulated losses, its net worth has been eroded. Further, the current liabilities have exceeded the total assets. These events indicate that a material uncertainty exist that may cast significant doubt on the Company's ability to continue as a going concern. Our conclusion is not modified in respect of this matter.
• 1. We draw attention to note no. 8 in the Statement which provides information regarding the default of principal dues and interest of Banks and Financial Institution, restructuring of loans, and interest calculation thereon. Our conclusion is not modified in respect of this matter.
• 10.The comparative financial results of the company for the preceding corresponding quarter and nine months ended December 31, 2018 were reviewed by the predecessor auditor who expressed modified conclusion on those financial results on February 22, 2019.

For Harshil Shah & Company Chartered Accountants ICAI Firm Reg. No. 141179W "\~J. C)l I') / " . (1 .1:. Harshil Shah : Partner '. Membership No. 124146 . \

Place: Mumbai Date: February 13, 2020 !CAI UDIN: 20124146AAAABN9894 TILAKNAGAR INDUSTRIES LTD. (CIN: L 15420PN1933PLC133303)

Corporate Office: 3rd Floor, Industrial Assurance Building, Churchgate, Mumbai, Maharashtra - 400 020 Regd.Office: P.O. Tilaknagar, Tai. Shrirampur, Dist. Ahmednagar, Maharashtra - 413 720

Email: investor@tilind.com; Website: www.tilind.com; Phone : +91 22 22831716/1 8; Fax· +91 22 22046904

							(Rs. in lacs)
	Statement of Standalone Unaudited Financial Results for the Quarter and Nine Months ended December 31, 2019						Previous Year
	Particulars		Quarter ended			Nine Months ended
		31.12.2019	30.09.2019	31.12.2018	31.12.2019	31.12.2018	31.03.2019
		Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
	Revenue from Operations	39.765.07	53,268.26	26,070.61	1,13,259.95	49,573.24	78,161.22
	Other Income	230.97	104.01	59.80	432.12	154.00	204.39
	Total Income (I + II)	39,996.04	53,372.27	26,130.41	1,13,692.07	49,727.24	78.365.61
IV	Expenses
	Cost of materials consumed (a)	8,871.12	12,091.67	7,157.34	26,761.84	14,396.42	23.554.86
	Purchases of stock-in-trade (b)	$\sim$		$\sim$
	Changes in inventories of finished goods, stock-in-trade and work-in-progress (C)	(598.20)	1,166.80	297.03	(331.45)	(502.41)	(2, 355.10)
	Excise duty (d)	23,533.62	32,220.56	11,356.62	63,997.61	18,332.75	29,262.11
	Employee benefits expense (e)	467.29	533.81	519.97	1,526.23	1,480.60	2.359.46
	Finance costs (f)	4,830.42	4,671.27	5,422.01	13,919.68	12,279.16	16,819.13
	Depreciation and amortization expense (g)	782.15	779.01	892.12	2.338.54	2,665.51	3,499.44
	Other expenses (h)	5.686.20	5.059.27	5,785.55	15,484.00	15,888.09	20,113.69
	Total Expenses	43,572.60	56,522.39	31,430.64	1,23,696.45	64,540.12	93,253.59
	Profit/(Loss) before Exceptional Items and Tax (III-IV)	(3, 576.56)	(3, 150.12)	(5,300.23)	(10,004.38)	(14, 812.88)	(14, 887.98)
VI	Exceptional Items
VII	Profit/(Loss) before Tax (V-VI)	(3, 576.56)	(3, 150.12)	(5,300.23)	(10,004.38)	(14, 812.88)	(14, 887.98)
VIII	Tax Expense
	Current tax (a)	$\sim$	$\omega$	$\omega$	$\omega$
	Deferred tax (b)	W	W.	$\sim$
	Total Tax Expense	×	i.
IX	Profit/(Loss) for the period (VII-VIII)	(3.576.56)	(3, 150.12)	(5,300.23)	(10,004.38)	(14, 812.88)	(14.887.98)
$\chi$	Other Comprehensive Income/(Loss)
	(a) Items that will not be reclassified to Profit & Loss
	(i) Remeasurement gain /(loss) in respect of the defined benefit plans	(2.28)	(1.99)	(5.71)	(6.25)	(17.14)	(7.94)
	(ii) Deferred tax on remeasurement gain /(loss) in respect of defined benefit plans	$\omega_{\rm c}$	m.	$\overline{\phantom{a}}$	$\sim$	$\sim$	u.
	(b) Items that will be reclassified to Profit & Loss
	Total Other Comprehensive Income/(Loss) for the period [(a) +(b)]	(2.28)	(1.99)	(5.71)	(6.25)	(17.14)	(7.94)
X	Total Comprehensive Income/(Loss) for the period (IX+X)	(3, 578.84)	(3, 152.11)	(5,305.94)	(10, 010.63)	(14, 830.02)	(14, 895.92)
X	Paid-up Equity Share Capital (Face value of Rs. 10/- per Share)	12,513.38	12,513.38	12,513.38	12,513.38	12,513.38	12.513.38 (45,691.60)
XIII	Reserves as per Balance Sheet of Previous Accounting Year
XIV	Earnings Per Equity Share of Rs. 10 /- Each (not annualized)
	(a) Basic $(Rs)$	(2.86)	(2.52)	(4.24)	(7.99)	(11.85)	(11.91)
	Diluted (Rs.) (b)	(2.86)	(2.52)	(4.24)	(7.99)	(11.85)	(11.91)

'

Notes:

• ·1 he above Results have been reviewed by the /\ud1t Committee and approved by the Board of Directors at Meeting held on February 13 ?O:?O and have been subjected to a limited review by the Statutory /\ud1tors
• 7. rhe financial results for all periods presented have been prepared in accordance with recognition and measurement principles laid down 1n the IND·/\S 34 Interim 1"1nanc1al Reporting prescribed under Section 133 of the Companies /\ct. ?013 read with relevant rules issued thereunder and other accounting principles generally accepted 1n India
• 3 1 he Company 1s predominantly engaged 1n the business of manufacture and sale of Indian Made f ore1gn I 1quor (IMf·I) and its related products which constitute a single business segment as per IND-/\$ 108 Operating Segments /\ccordingly disclosure in accordance with the prov1s1ons of Circular issued by the sr:rn on July 05 ?016 is not applicable
• 4 r he Company had applied to the State government authorities for dual feed perm1ss1on for manufacture of LN/\ through molasses as well as grain at one of its F NI* Plants f'erm1ss1on has been received for operating the fermentation section for one year It 1s expected that permission for operating the d1st1llat1on section also will be received soon In view of this the management believes that there 1s no impairment 1n value of its F NI* Plant and hence the recoverable amount of the I· *NI* Plant 1s not required to be estimated
• 5 In lieu of advances given to certain parties amounting to Rs 6 O /4 08 lacs.the Company had received land from one of the group concerns of the parties f he land received has been registered in the name of the Company l he advances have not been ad1usted pending certain formal1t1es to be completed on the part of the said parties In view of this. the management believes that no prov1s1on 1s considered necessary 1n the books of accounts
• 6 The Company s net worth has eroded. however. there is an improvement 1n operational performance of the liquor business in terms of higher sales. market share and margins 1n the southern states l he Company has entered into compromise settlements with banks and restructuring agreement. subsequent to December 31 ?019 with I delwciss /\sset Reconstruction Company t 1m1ted ("f /\RC") acting as I rustee off ARC I rust SC:?33. F/\RC !rust SC/.41 and f"/\RC l rust SC?69. 1n favour of whom some of the lender Banks and financial Institution have assigned all the rights. title and interests 1n f1nanc1al assistances granted by them to the Company with respect to restructuring of the debts owed to 1t by the Company I !ence the accounts arc prepared on going concern basis
• l 1 he National Company Law Tnbunal("NCI T"') ordered for hqu1dat1on of Prag D1st1llery (P) I Id.wholly owned subs1d1ary of the Company ("Prag") v1de its order dated July 7.6 ?O 18. as a going concern l he Off1c1al I 1qu1dator has 1nit1ated the process of hqu1dat1on of Prag as a going concern Hence. the accounts have been prepared on a going concern basis
• 8 l"he Company had defaulted 1n repayment of principal dues of loans as well as interest payable to banks and financial 1nst1tut1ons however certain on account payments were made to banks and f delwe1ss /\ssct Reconstruction Company I .1m1ted (f ARC) The Company has since entered into compromise settlements with banks and has also executed subsequent to 11ecember 31 7.019 restructuring documents/agreements with ' f ARC" acting as r rustee of ~/\RC Trust SC/.33 1-/\HC rrust SC/41 and f /\RC Trust SC/.69 in favour of whom some of the lender Hanks and I 1nanc1al lnst1tut1on had assigned all the rights title and interests in financial assistances granted by them to the Company with respect to restructuring of the debts owed to 1t by the Company However pending payment to banks and F/\RC in full and final settlement as per the terms of the compromise settlement/restructuring agreement. interest has been provided 1n books of accounts on the principal outstanding at original contracted rates
• 9 State Bank of India (SBI). a f1nanc1al creditor of the Company had filed an application before the National Company I aw r ribunal (NCL f). Mumbai under Section 1 of the Insolvency & Bankruptcy code claiming default by the Company 1n repayment of its financial obhgat1on to the Bank The said application has been withdrawn by SHI and taken on record by NCI T v1de order dated October 11 ?019 The Company has since entered into a compromise settlement with SBI for settling its dues amounting to Rs 10,?00 lacs towards full and final settlement of the total dues The Company has paid Rs ?.550 lacs before December 31 . 2019 1n compliance with the payment schedule of the settlement
• 1 O I he Company has adopted mod1f1ed retrospective approach under Ind AS 116 I eases w ith effect from April o 1 ?O 19 Accordingly the Company has recognl/ed 'Right of use' assets of Rs 106 84 lacs and present value of lease llab1ht1es of Rs 106 84 lacs as on /\pril O 1 ?O 19 In the statement of financial results for the current period instead of rent expenses (as accounted under previous periods) /\mort17at1on of Right of use assets has been accounted under deprec1at1on and amort11at1on expenses and unwinding of discount on lease l1ab1ht1es has been accounted under finance cost Accordingly current period's figures arc not comparable with previous periods to that extent The net impact of adopting this standard on earning per share 1s not material
• 11 The Company had entered into arrangements with Vahni D1st1llcnes Private l 1m1ted and Punjab l'xpo flrewcnes Private I 1m1ted (its subs1d1ary companies) for manufacture and marketing of its own brands I hese subs1d1ary companies have necessary license and regulatory permits to manufacture alcohol Upto the quarter ended June 30 7.019 the Company had recognised net surplus (total revenue over total expenses) from the operation through these units under Revenue from operations llowever 1n the quarter ended September 30 ?019 quarter ended December 31 /019 and nine months ended December 31 ?019 the Company has aggregated sales and expenses 1n its Statement of I 1nanc1al Results with respect to these subs1d1ary companies Accordingly current period s figures arc not comparable with previous periods to that extent Consequent to these changes there 1s no impact on the total profit
• 12 The previous period figures have been regrouped and reclassified wherever necessary

By Order of the Board For Tilaknagar Industries ltd.

Amit Dahanukar Chairman & Managing Director (DIN: 00305636)

Place: Mumbai Date : February 13, 2020

HARSHIL SHAH & COMPANY

Chartered Accountants Phone :- 022 401 39 401 www.caharshilshah.com, E Mail :- info@caharshilshah.com

Independent Auditor's Review Report on the Quarterly and Year to date Unaudited Consolidated Financial Results of Tilaknagar Industries Ltd. pursuant to Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

To The Board of Directors of Tilaknagar Industries Ltd.

• 1. We have reviewed the accompanying statement of unaudited consolidated financial results of Tilaknagar Industries Ltd. (hereinafter referred to as "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/ loss of its associate for the quarter and nine months ended December 31, 2019 ("the Statement"), being submitted by the Parent pursuant to the requirement of Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended .
• 1. This Statement, which is the responsibility of the Parent's management and approved by the Parent's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013, and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review .
• 1. We conducted our review of the Statement 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 Institute of Chartered Accountants of India. This sta ndard requires that we plan and perform the review to obtain moderate assurance as to whether the financial statements are free of material misstatement. A review of interim financial information consists of making inquiries, primarily of persons 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 Standards on Auditing 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.

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

114, Dimple Aracade, Thakur Complex, Kandivali East, Mumbai J 01.

• 1. This Statement includes the results of entities as mentioned in Annexure 1.
• 1. The Parent has not impaired one of the ENA plants as required by Indian Accounting Standard 36 "Impairment of Assets" ("Ind AS 36"), though there is an indication of impairment. Reference is invited to note no. 5 of the Statement.
• 1. The Parent has not made impairment of advances given to certain parties amounting to Rs. 6,074.08 lakhs as required by Indian Accounting Standard 109 "Financial Instruments" ("Ind AS 109"). Reference is invited to note no. 6 of the Statement.
• 1. The Group has not impaired Goodwill of Rs. 1,175.25 lakhs relating to its wholly owned subsidiary i.e. Prag Distillery (P) Ltd. as required by Ind AS 36 though there is an indication of impairment as explained in note no. 8 of the Statement.
• 1. The review report on the financial results of Prag Distillery (P) Ltd. ("Prag") a subsidiary of the Parent, issued by an independent firm of Chartered Accountants (vide their report dated February 12, 2020) contains the following qualifications, which are reproduced by us as under:
• a) "The Company has incurred capital expenditure of Rs. 9,957 .12 lakhs on expansion project of bottling unit which is recorded under the head capital work in progress. The said project is not operational since many years which provide indications of impairment. The Company has not tested the said project for impairment loss as per Ind AS 36 "Impairment of Assets". Consequently, we were unable to determine the amount of impairment loss, if any, required to be recognized. Reference is invited to note no. 4 of the Statement.
• b) Company had been referred to National Company Law Tribunal ("NCLT") for Corporate Insolvency Resolution Process (CIRP) under the provisions of the Insolvency and Bankruptcy Code, 2016 ("the Code") and the Official Liquidator has initiated the process of liquidation of the Company as a going concern. Further the Company has incurred net loss during the quarter and nine months ended December 31, 2019 and as of that date its business has reduced significantly. These events indicate that a material uncertainty exist that may cast significant doubt on the company's ability to continue as a going concern. Reference is invited to note no. 4 of the Statement."

Note no. 4 of Prag's Statement as described above is reproduced as note no. 8 to the consolidated unaudited financial results.

1. Based on our review conducted and procedures performed as stated in paragraph 3 above, and based on the consideration of the review reports of the other auditors referred to in paragraph 13 below, except for the effects of the matter described in paragraph 5, 6, 7 & 8 above nothing has come to our

attention that causes us to believe that the accompanying Statement of unaudited financial results has not been prepared in all material respects in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India and has not disclosed the information requ ired 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.

• 1. We draw attention to note no. 7 of the Statement that the Group has incurred net loss during the quarter and nine months ended December 31 , 2019 and due to accumulated losses, its net worth has been eroded. Further, the current liabilities have exceeded the total assets. These events indicate that a material uncertainty exist that may cast significant doubt on the Parent's ability to continue as a going concern. Our conclusion is not modified in respect of this matter.
• 1. We draw attention to note no. 9 in the Statement which provides information regarding the default of principal dues and interest of Banks and Financial Institution, restructuring of loans and interest calculation thereon. Our conclusion is not modified in respect of this matter.
• 1. The review report on the financial results of PunjabExpo Breweries Private Limited ("PunjabExpo") a subsidiary of the Parent, issued by an independent firm of Chartered Accountants (vide their report dated February 12, 2020) contains the following emphasis of matter, which is reproduced by us as under:
• a) "The Company has incurred net loss during the quarter and nine months ended December 31, 2019 and due to accumulated losses, its net worth has been eroded. Further, the current liabilities have exceeded the current assets. These events indicate that a material uncertainty exist that may cast significant doubt on the Company's ability to continue as a going concern . Our conclusion is not modified in respect of this matter. Reference is invited to note no. 4 of the Statement."

Note no. 4 of PunjabExpo's Statement as described above is reproduced as note no. 11 to the consolidated unaudited financial results.

1. We did not review the interim financial statements/ information of 3 subsidiaries included in the consolidated financial results, whose interim financial statements/ information reflects total revenue of Rs. 1,037.31 lakhs for the nine months ended December 31, 2019 and total loss of Rs. 1, 160.97 lakhs including other comprehensive income for the nine months ended December 31 , 2019 as considered in the consolidated unaudited financial results. These Financial Statements have been reviewed by other auditors whose reports have been furnished to us by the management, and our conclusion on these Statements in so far as it relates to the amounts and disclosures included in respect of these

subsidiaries, is based solely on the report of the other auditors and the procedures performed by us as stated in paragraph 3 above. Our conclusion on the Statements is not modified in respect of the above matter with respect to our reliance on the work done and tl1e reports of other auditors.

• 1. We did not review the interim financial statements/ information of 5 subsidiaries included in the consolidated financial results whose interim financial statements/ information reflects total total revenue of Rs Nil for the nine months ended December 31, 2019 and total loss of Rs. 2.04 lakhs including other comprehensive income for the nine months ended December 31, 2019 and the interim financial statements/ information of one associate which reflects group share of total loss of Rs. Nil including other comprehensive income for the nine months ended December 31, 2019 which are not reviewed by other auditors and are certified by the Management. According to the information and explanations given to us by the Management, these interim financial results and other financial information are not material to the Group. Our conclusion on the Statement is not modified in respect of the above matter.
• 1. The comparative financial results of the company for the preceding corresponding quarter and nine months ended December 31, 2018 were reviewed by the predecessor auditor who expressed modified conclusion on those financial results on February 22, 2019.

For Harshil Shah & Company Chartered Accountants ICAI Firm Reg. No. 141179W ""'-\ /)J/ • 'l I • '. tP 0 / q : l ~~ ."' ' Harshil Shah ~: ,. .. Partner Membership No. 124146

Place: Mumbai Date : February 13, 2020 ICAI UDIN: 20124146AAAABM3414

Annexure 1 - List of Subsidiaries and Associate included in consolidation:

	Parent:
1	Tilaknagar Industries Ltd.
	Subsidiaries:
2	Prag Distillery (P) Ltd.
3	Vahni Distilleries Private Limited.
4	Kesarval Spring Distillers Pvt. Ltd.
5	PunjabExpo Breweries Pvt. Ltd.
6	Mykingdom Ventures Pvt. Ltd.
7	Studd Projects P Ltd.
8	Srirampur Grains Pvt. Ltd.
9	Shivprabha Sugars Ltd.
	- Associate: •t
10	Mason & Summers Marketing Service s Pvt. Ltd.

TILAKNAGAR INDUSTRIES LTD. (CIN: L 15420PN1933PLC133303)

Corporate Office: 3rd Floor, Industrial Assurance Building, Churchgate, Mumbai, Maharashtra - 400 020

Regd.Office : P.O. Tilaknagar, Tai. Shrirampur, Dist. Ahmednagar, Maharashtra - 413 720

Email: investor@tilind.com; Website: www.tilind.com; Phone: +91 22 22831716118; Fax: +91 22 22046904

	Statement of Consolidated Unaudited Financial Results for the Quarter and Nine Months ended December 31, 2019
	Particulars		Quarter ended		Nine Months ended		Previous Year
		31 .12.2019	30.09.2019	31.12.2018	31 .12.2019	31 .12.2018	31.03.2019
		Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
I	Revenue from Operations	39,928.70	41,421.06	42,524.26	1,13,668.68	1, 12,376.91	1,52,549.35
II	Other Income	2'10.26	107.49	133.27	480 10	378.08	520.65
Ill	Total Income (I + II)	40,168.96	41,528.55	42,657.53	1,14,148.78	1,12,754.99	1,53,070.00
IV	Expenses
	, (a) Cost o' riaterials consumed	8.877.84	9,526.54	9,0'. 5.84	25,235.26	22,403.65	33,741.68
	(b) Purchases of s:ock-in-trade		-
	Changes in inventories o~ finished goods, stock-in-trade and work-in-orog~ess (C)	(586.35)	1,853.87	531.81	1,452 05	924.02	(1,774.81)
	(d) Excise duty	23,533.62	21,650.60	24.347.45	63,997 61	63,828.98	86,416.35
	(e) Employee benefits excense	685.85	824. 13	795.57	2.329.98	2.084.26	3,328.13
	(1 F:nar.ce costs •	4,926.10	4,651 .61	5,722.10	14, 199.27	13,650.03	18,420.68
	Depreciatior. anc amo.-:•zation expense {g)	826.76	824.55	936.35	2.474.21	2,797.12	3,674.93
	Or:ier expenses (r.)	5,639.22	5,799.37	6,355.1 8	15.492 53	19,695.15	25,224.54
	Total Expenses	43,903.04	45,130.67	47,704.30	1,25,180.91	1,25,383.21	1,69,031.50
v	Profit/(loss) before Exceptional Items and Tax (Ill-IV)	(3,734.08)	(3,602.12)	(5,046.77)	(11,032.13)	(12,628.22)	(15,961.50)
VI	Exceptional Items					-
VII	Profit/(Loss) before Tax (V-VI)	(3,734.08)	(3,602.12)	(5,046.77)	(11,032.13)	(12,628.22)	(15,961.50)
VIII	Tax Expense
	Ci.;rrent tax {a} -	11.55		(1 50.00)	1 • .55	:oo.oo	23.05
	(b) Deferred tax		33.22		33.22		64.1 5
	MATcredi: (c)						(97.37)
	Total Tax Expense	11.55	33.22	(150.00)	44.77	400.00	(10.17)
IX	Profitl(Loss) for the period before Share of Profit/(Loss) of Associate (VII-VIII)	(3,745.63)	(3,635.34)	(4,896.77)	(11,076.90)	(13,028.22)	(1 5,951.33)
x	Share of Profitl(Loss) of Associate				-
XI	Profit/(Loss) For The Period (IX+X)	(3,745.63)	(3,635.34)	(4,896.77)	(1 1,076.90)	(13,028.22)	(15,951.33)
XII	Other Comprehensive lncomel(Loss)
	(a) lte-ns tnat will not be reclassified to Profit & Loss
	(i) Remeasuremen: gain /(loss) in respect of the defined benefit plans	(5.06)	(4.4 1)	(4.53)	(13.87)	(13.58)	(17.62)
	(i:) Tax on above		-				0.27
	(o) ltef'1s that will oe reclassified to Profit & Loss		-
	Total Other Comprehensive lncome/(loss) for the period [(a) +(b))	(5.06)	(4.41)	(4.53)	(13.87)	(13.58)	(17.35)
XIII	Total Comprehensive Income/( loss) for the Period (Xl+Xll)	(3,750.69)	(3,639.75)	(4,901 .30)	(11 ,090.77)	(13,041 .80)	(15,968.68)
XIV	Profit/Loss For The Period Attributable t o
	(a) Owners of the Company	(3,745 63)	(3,635 34)	(4,896.77)	(11,076.90)	(13,028.22)	(15,951.33)
	(b) Non-Controlling Interests	-	-	-		-
xv	Other Comprehensive lncome/(l oss) for the Period Attributable to
	(a) Owners of the Company	(5 06)	(4.41)	(4.53)	(1 3.87)	(13.58)	(17.35)
	(o) Non-Conlrolling Interests
XVI	Total Comprehensive lncome/(loss) for the Period Attributable to
	(a) Ow1ers of the Company	(3,750 69)	(3,639.75)	(4,901 .30)	(1 1,090.77)	(13,0d 1.80)	(15,968.68)
	(b) Non-Controlling lnteres:s	-	-	-	-
XVII	Paid-up Equity Share Capital (Face value of Rs. 101- per Share)	12,513.38	12,513.38	12,513.38	12,513.38	12,513.38	12,513.38
XVIII	Reserves as per Balance Sheet of Previous Accountinq Year						(41,235 23)
XIX	Earnings Per Equity Share of Rs. 10 /-each (not annualized)
	(a) Basic (Rs.)	(2.99)	(2.91)	(3.91)	(8.85)	(1 0.43)	(12.76)
	(b) Diluted (Rs.}	(2.99)	(2 9Y,	(3.91)	(8 85)	(10.43)	(12.76)

~

Notes:

• The above Results have been reviewed by the Audit Committee and approved by the Board of Directors at Meeting held on February 13. 2020 and have been subjected to a limited review by the Statutory Auditors.
• 2 The financial results for all periods presented have been prepared in accordance with recognition and measurement principles laid down in the IND-AS 34 · 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.
• 3 The unaudited Consolidated Financial Results have been prepared by the Company in accordance with IND-AS 110: Consolidated Financial Statements and IND-AS 28: Accounting for Investments in Associate in Consolidated Financial Statements prescribed under Section 133 of the Companies Act. 2013 and other recognized accounting practices and policies.
• 4 The Company is predominantly engaged in the business of manufacture and sale of Indian Made Foreign Liquor (IMFL) and its related products. which constitute a single business segment as per IND-AS 108: Operating Segments Accordingly, disclosure in accordance with the provisions of Circular issued by the SEBI on July 05. 2016 is not applicable.
• 5 The Company had applied to the State government authorities for dual feed permission for manufacture of ENA through molasses as well as grain at one of its ENA Plants. Permission has been received for operating the fermentation section for one year. It is expected that permission for operating the distillation section also will be received soon. In view of this. the management believes that there is no impairment in value of its ENA Plant and hence the recoverable amount of the ENA Plant is not required to be estimated
• 6 In lieu of advances given to certain parties amounting to Rs. 6,074.08 lacs. the Company had received land from one of the group concerns of the parties. The land received has been registered in the name of the Company. The advances have not been adjusted pending certain formalities to be completed on the part of the said parties. In view of this. the management believes that no provision is considered necessary in the books of accounts.
• 7 The Company's net worth has eroded, however. there is an improvement in operational performance of the liquor business in terms of higher sales. market share and margins in the southern states. The Company has entered into compromise settlements with banks and restructuring agreement, subsequent to December 31, 2019 with Edelweiss Asset Reconstruction Company Limited ("EARC") acting as Trustee of EARC Trust SC233, EARC Trust SC241 and EARC Trust SC269, in favour of whom some of the lender Banks and Financial Institution have assigned all the rights, title and interests in financial assistances granted by them to the Company with respect to restructuring of the debts owed to it by the Company. Hence, the accounts are prepared on going concern basis.
• 8 The National Company Law Tribunal("NCL.T") ordered for liquidation of Prag Distillery (P) Ltd, wholly owned subsidiary of the Company ("f>rag") vide its order dated July 26. 201 8. as a going concern. The Official Liquidator has initiated the process of liquidation of Prag as a going concern. Hence. the accounts of Prag have been prepared on a going concern basis. The impairment of the project undertaken by Prag in earlier years will be considered on completion of the liquidation process. since the recoverable value is not currently ascertainable.
• 9 The Company had defaulted in repayment of principal dues of loans as well as interest payable to banks and financial institutions, however certain on account payments were made to banks and Edelweiss Asset Reconstruction Company Limited (EARC). The Company has since entered into compromise settlements with banks and has also executed. subsequent to December 31 , 2019, restructuring documents/agreements with "EARC" acting as Trustee of EARC Trust SC233, EARC Trust SC241 and E/\RC Trust SC269. in favour of wlfom some of the lender Banks and Financial Institution had assigned all the rights. title and interests in financial assistances granted by them to the Company with respect to restructuring of the debts owed to it by the Company. However. pending payment to banks and EARC in full and final settlement as per the terms of the compromise settlement/restructuring agreement. interest has been provided in books of accounts on the principal outstanding at original contracted rates.
• 10 State Bank of India (SBI), a financial creditor of the Company had filed an application before the National Company Law Tribunal (NCL T), Mumbai under Section 7 of the Insolvency & Bankruptcy code claiming default by the Company in repayment of its financial obligation to the Bank. The said application has been withdrawn by SBI and taken on record by NCL T vide order dated October 11 , 2019. The Company has since entered into a compromise settlement with SBI for settling its dues amounting to Rs.10.200 lacs towards full and final settlement of the total dues. The Company has paid Rs 2.550 lacs before December 31. 2019 in compliance with the payment schedule of the.settlement
• 11 The net worth of Punjabexpo Breweries Private Limited, a subsidiary of Tl , has eroded consequent to the losses incurred in the current year However, the parent company is exploring the possibility of entering into northern markets where Punjabexpo will be one of the major sources of supply. It is also in talks with other brand owners to enter into bottling arrangements for the said brand owners. This would significantly improve the capacity utilisation and have favourable impact on the profitability of the company.
• 1 2 The Standlone and Consolidated unaudited financial results of the Company for the quarter and nine months ended December 31. 2019 are available on the Company's website (www.tilind.com) and on the website of BSE (www.bseindia.com) and NSE (www nseindia.com).
• 13 The Company has adopted modified retrospective approach under Ind /\S 116 Leases.with effect from April 01, 2019. Accordingly, the Company has recognized 'Right of use' assets of Rs. 117. 99 lacs and present value of lease liabilities of Rs. 117. 99 lacs as on April O 1. 2019 In the statement of financial results for the current period, instead of rent expenses (as accounted under previous periods). Amortization of Right of use assets has been accounted under depreciation and amortization expenses and unwinding of discount on lease liabilities Q.as been accounted under finance cost. Accordingly, current period's figures are not comparable with previous periods to that extent. The net impact of adopting this standard on earning per share is not material.
• 14 The previous period figures have been regrouped and reclassified wherever necessary.

By Order of the Board For Tilaknagar Industries Ltd.

Amit Dahanukllr Chairman & Managing Director (DIN: 00305636)