Trident Ltd — AGM Information 2020

Jul 9, 2020

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TRIDENT/CS/2020 July 9, 2020

	TRIDENT/CS/2020 July 9, 2020
The Manager Listing Department National Stock Exchange of India Limited Exchange Plaza, Plot No. C/1, G Block Bandra Kurla Complex, Bandra (E) Mumbai – 400 051	The Manager Listing Department BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai – 400 001
Scrip Code:- TRIDENT	Scrip Code:- 521064

Dear Sir/ Madam

Sub: Submission of “Questions Received from the Members on the 30[th] Annual General Meeting of the Company”

Pursuant to Regulation 30 and other applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing herewith the questions, answered & responded, in the 30th Annual General Meeting of the Company.

This is for your information & records please.

Thanking you,

Yours sincerely,

For Trident Limited

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(Ramandeep Kaur) Company Secretary ICSI Membership No.: F9160

Encl: As above

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Questions Received from the Members on the 30[th] Annual General Meeting of the Company

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Safe Harbour

This presentation has been prepared by Trident Limited (the “ Company ”) for general information purposes only, without regard to any specific objectives, suitability, financial situations and needs of any particular person and does not constitute any recommendation or form part of any offer or invitation, directly or indirectly, in any manner, or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment therefor. This presentation does not solicit any action based on the material contained herein. Nothing in this presentation is intended by the Company to be construed as legal, accounting or tax advice.

This presentation has been prepared by the Company based upon information available in the public domain. This presentation has not been approved and will not or may not be reviewed or approved by any statutory or regulatory authority in India or by any Stock Exchange in India. This presentation may include statements which may constitute forward-looking statements. The actual results could differ materially from those projected in any such forward-looking statements because of various factors. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events, or otherwise.

This presentation contains certain forward-looking statements relating to the business, financial performance, strategy and results of the Company and/ or the industry in which it operates. Forward-looking statements are statements concerning future circumstances and results, and any other statements that are not historical facts, sometimes identified by the words including, without limitation "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements, including those cited from third party sources, contained in this presentation are based on numerous assumptions and are uncertain and subject to risks. A multitude of factors including, but not limited to, changes in demand, competition and technology, can cause actual events, performance or results to differ significantly from any anticipated development. Neither the Company nor its affiliates or advisors or representatives nor any of its or their parent or subsidiary undertakings or any such person's officers or employees guarantees that the assumptions underlying such forward-looking statements are free from errors nor does either accept any responsibility for the future accuracy of the forward-looking statements contained in this presentation or the actual occurrence of the forecasted developments. Forward-looking statements speak only as of the date of this presentation and are not guarantees of future performance. As a result, the Company expressly disclaims any obligation or undertaking to release any update or revisions to any forward-looking statements in this presentation as a result of any change in expectations or any change in events, conditions, assumptions or circumstances on which these forward looking statements are based. Given these uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements.

The information contained in these materials has not been independently verified. None of the Company, its directors, promoter or affiliates, nor any of its or their respective employees, advisers or representatives or any other person accepts any responsibility or liability whatsoever, whether arising in tort, contract or otherwise, for any errors, omissions or inaccuracies in such information or opinions or for any loss, cost or damage suffered or incurred howsoever arising, directly or indirectly, from any use of this presentation or its contents or otherwise in connection with this presentation, and makes no representation or warranty, express or implied, for the contents of this presentation including its accuracy, fairness, completeness or verification or for any other statement made or purported to be made by any of them, or on behalf of them, and nothing in this presentation or at this presentation shall be relied upon as a promise or representation in this respect, whether as to the past or the future. Past performance is not a guide for future performance. The information contained in this presentation is current, and if not stated otherwise, made as of the date of this presentation. The Company undertakes no obligation to update or revise any information in this presentation as a result of new information, future events or otherwise. Any person/ party intending to provide finance/ invest in the shares/ businesses of the Company shall do so after seeking their own professional advice and after carrying out their own due diligence procedure to ensure that they are making an informed decision.

This presentation is not a prospectus, a statement in lieu of a prospectus, an offering circular, an advertisement or an offer document under the Companies Act, 2013, as amended, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended, or any other applicable law in India.

This presentation is strictly confidential and may not be copied or disseminated, in whole or in part, and in any manner or for any purpose. No person is authorized to give any information or to make any representation not contained in or inconsistent with this presentation and if given or made, such information or representation must not be relied upon as having been authorized by any person. Failure to comply with this restriction may constitute a violation of the applicable securities laws. Neither this document nor any part or copy of it may be distributed, directly or indirectly, in the United States. The distribution of this document in certain jurisdictions may be restricted by law and persons in to whose possession this presentation comes should inform themselves about and observe any such restrictions. By reviewing this presentation, you agree to be bound by the foregoing limitations. You further represent and agree that you are located outside the United States and you are permitted under the laws of your jurisdiction to receive this presentation.

This presentation is not an offer to sell or a solicitation of any offer to buy the securities of the Company in the United States or in any other jurisdiction where such offer or sale would be unlawful. Securities may not be offered, sold, resold, pledged, delivered, distributed or transferred, directly or indirectly, in to or within the United States absent registration under the Securities Act, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable securities laws of any state or other jurisdiction of the United States. The Company’s securities have not been and will not be registered under the United States Securities Act of 1933, as amended.

Q What is the impact of Covid-19 on the business operations?

• were on hold since last week of March 2020 and were

• A Manufacturing operations kept restarted only after due approval from statutory authorities in phased manner from 3rd week of April 2020.

• Dispatches scheduled during the latter part of March 2020 were kept on hold owing to unavailability of logistics during the ongoing lockdown. However, gradually with the ease up of restrictions by the authorities, the dispatches have begun on domestic as well as export front

• Currently all the plants are operational.

• Limited impact on availability of workforce as both the manufacturing locations have residential complexes within premises.

Q What are the steps taken by the company to reduce its fixed cost of operations?

A The company has, during the period of lockdown, reviewed its fixed cost of operations and taken several initiatives to optimize the costs being incurred including:

• Utilization of internal accruals wherever possible instead of raising fresh borrowings

• Introduction of productivity linked variable pay for the employees across cadres

• Automation & upgradation of various processes to increase productivity and reduce cost of operations

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Q What is the sales strategy of the company going forward since some of the retailers in US market are facing stress due to lockdown?

The has followed a business under which review A company always prudent policy regular of the operational and financial parameters of the customers is undertaken to mitigate and control the risk. In addition to that, the company review credit reports from external agencies to have detailed analysis as well as undertakes credit insurance cover, wherever available of its customers from insurance companies.

The above robust measures will continue to be utilized for the assessment of future transactions.

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Q How is the ramp up of capacity utilization since lifting of lockdown?

A Post lifting of lockdown, gradual ramp up of capacity utilization has happened in month of April & May 2020

Segment	UoM	Production	Production
		Apr 20	May 20
Bath Linen	MT	731	2125
Bed Linen	Mn. Mtrs.	0.42	1.51
Yarn	MT	1115	4386
Paper	MT	2645	9851

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Q Tax Outgo of the company has reduced by 55%? What are the reasons?

A

Government of India has reduced Corporate Tax rate from 35% to 25% (including surcharge and ED cess) which is applicable from 1 April’2019. The company has elected to exercise the option and accordingly recognized provision for taxation and re-measured its deferred tax liabilities leading to impression of reduced tax outgo

Tax (INR Crs)	FY 2020	FY 2019
Current Tax	130.06	118.92
Deferred Tax	(50.65)	57.08
-in respect of current FY	(80.65)	(36.22)
-MAT Credit Entitlement	30.00	93.30
Total income tax expense	79.41	176.00

Q		What is the forex position of the company as on the year ended March 2020?	What is the forex position of the company as on the year ended March 2020?	What is the forex position of the company as on the year ended March 2020?	What is the forex position of the company as on the year ended March 2020?
A			Derivative Financial Instruments (INR Crs)		FY 2020
			Foreign Exchange forwards Contracts (at forward rate)		993.43
			-USD		974.34
			-EURO		19.09
			Foreign Exchange Option Contracts (at closing spot rate)		64.18
			-USD		64.18

Q		**Inventory Breakup into Raw Material, **	**Inventory Breakup into Raw Material, **	**Inventory Breakup into Raw Material, **	**Finished Goods and **	**WIP for FY 2020 vs **	**WIP for FY 2020 vs **	FY
		2019
A		Inventories (INR Crs)			FY 2020		FY 2019
		Raw Material
		(includes INR 0.48 Crs in transit)			550.80		678.54
		(Previous Year INR 6.54 Crs)
		Work in Progress			113.12		128.15
		Finished Goods
		(includes INR 8.13 Crs in transit)			152.42		122.13
		(Previous Year INR 40.59 Crs)

Q		What is the geographical distribution of Revenue in FY20?	What is the geographical distribution of Revenue in FY20?	What is the geographical distribution of Revenue in FY20?	What is the geographical distribution of Revenue in FY20?	What is the geographical distribution of Revenue in FY20?	What is the geographical distribution of Revenue in FY20?
A			Revenue (INR Crs)		FY 2020			FY 2019
			India		2068.29			2237.81
			USA		1423.45			1542.15
			Rest of the World		1207.72			1439.56
			Total		4699.46			5219.52

Update on the Export Incentive Scheme announced by Govt. to replace MEIS? How Q much will be the benefit that will be available under new scheme?

A

Company is presently receiving following export benefits:

Export Benefits	Home Textiles
Duty Drawback	2.6%
Rebate of Central & State Levies	8.2%

Additional benefit of MEIS of 4% retrospectively withdrawn from Mar 2019 The government has introduced benefits under RoDTEP (Remission of Duties or Taxes on Export Product) scheme for the industry which may provide additional impetus to textile sector in coming years. However, the industry is awaiting further clarification on the benefits and applicability under the proposed scheme

What has been the company’s efforts to reduce its debt commitments and become Q net debt free in future?

The has undertaken several initiatives over the to reduce its debt A company years commitments including prepayments of high cost loans, reduction in working capital utilization through retention of cash accruals, other measures to reduce CTC cycle and build up cash reserves.

Owing to the above initiatives the debt levels of the company have reduced by INR 1100 Crores since FY 2017 to level of INR 1614 Crores at end of FY 2020 (including INR 729 Crores reduction from FY 19 to FY 20)

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Q Are there any guarantee commitments undertaken by the company on behalf of its subsidiaries or associates?

As on date, there are no guarantee commitments undertaken by the company on behalf of A its subsidiaries or associates.

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Q What is the current manufacturing capacity of PPE kits, revenue and future plans? A Our Tri-Safe PPEs are currently produced for consumption and usage in the domestic market. We are PPEs to state bodies and are supplying government organizations. They available in open market as well for health sector. Beginning with 500 units day, we currently have manufacturing capacity to produce 10,000 PPE’s per day. We ventured into PPE production at the very outset of the COVID-19 in India which was in early April. We have been able to dedicate a part of our cutting & stitching facilities to manufacture PPEs which can be further expanded to meet any surge in demand. With the infrastructure in and skilled workforce we are place, optimised manufacturing capabilities not facing any challenges currently.

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Q Are there any plans to segregate the paper business?

The from time to time look the various in view the company options keeping existing A financial strength of the business and operational parameters. As on date, the company does not have any plan to segregate the paper business. However, the company will keep looking at various options in the future to enhance the value for stakeholders.

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Q Status of the capex plans announced in last 1 year?

The undertaken the before the Covid-19 was Yarn A capex project being by company Manufacturing units and Paper Upgradation project which are currently being reviewed owing to Covid-19 situation. The company is reassessing the implementation schedule and viability in view of the changed economic scenario.

Capex Plans	Capacity Addition	Cost of Project
Yarn Expansion Project	48482 TPA	INR 1140 Crs
Paper Upgradation Project	20000 TPA	INR 222 Crs

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Q What is the purpose of raising the funds through QIP and NCD?

The same is resolution which the from shareholders on A enabling company gets approval annual basis in AGM

The company shall utilize the proceeds for business purposes, including but not limited to augmenting financial resources for organic/ inorganic growth opportunities, meeting the capital requirements of the ongoing consolidation process, meeting and satisfaction of working capital requirements, repayment of existing borrowings, general corporate purposes and financing investment opportunities.

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THANK YOU
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www.tridentindia.com

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