Vardhman Polytex Ltd. — Interim / Quarterly Report 2018

Nov 12, 2018

REF: VPL:SEC:Nov:2018-19 Date: 12.11.2018

The Listing Department,	The Listing Department,
National Stock Exchange of India Ltd,	BSE Limited,
"Exchange Plaza"	25th Floor,
Bandra-Kurla Complex,	P.J Towers
Bandra (East),	Dalal Street Fort,
Mumbai-400051	Mumbai-400001
Scrip Code: VARDMNPOLY	Scrip Code: 514175

SUB: Outcome of Board meeting held on 12th November, 2018 and submission of Unaudited Financial Results for the quarter/half year ended 30th September, 2018

Dear Sir/Madam,

Please take note that the Board of Directors of the company in its meeting held today i.e 12th November, 2018, inter alia, has taken the following decisions.

1. Board approved the Unaudited Financial Results of the Company for the quarter and half year ended 30th September, 2018.

Pursuant to Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, we enclose herewith Unaudited Financial Results for the quarter/half year ended 30th September, 2018, Statement of Assets & Liabilities alongwith Limited Review Report thereon by the Statutory Auditors.

1. Board appointed Mr.Ajay Kumar Ratra, a Fellow Member of the Institute of Company Secretaries of India (Membership No.FCS4681) as Company Secretary & Compliance Officer of the company w.e.f 12th November, 2018 in accordance with the provisions of Section 203 of the Companies Act, 2013 and Regulation 6( 1) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. His contact details are as under: Email: ajay.ratra@vpl.in Telephone: 0161- 6629888

The meeting of Board of Directors commenced at l·uo PM and concluded at � ,So r"f

This is for your information and record please.

Vardhman Polytex Ltd An Oswal Group° Company CIN: L17122PB1980PLC004242

Corp. Office: Vardhman Park, Chandigarh Road Ludhiana - 141123 Punjab (India). Tel: +91-161-6629888 wwwvpl in info@vpl.in

VARDHMAN POLYTEX LTD.

Regd. Office: 'Vardhman Park, Chandigarh Road, Ludhiana - 141123'

CIN: L17122PB1980PLC 004242, PHONES: 0161-2685301-04, 6629883, FAX: 6629988, E-Mail- info@ypl.in, Web: www.ypl.in UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30TH SEPTEMBER, 2018

SI. No	Particulars	For the quarter ended			Half Year Ended		(Rs. In Lakh)Year ended
		30.09.2018	30.06.2018	30.09.2017	30.09.2018	30.09.2017	31.03.2018
		(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
1	Revenue from Operations		19,364.50
$\overline{2}$	Other Income	20094.59		11313.59	39.459.09	30,653.10	62,135.95
$\mathbf{3}$	Total Income (1+2)	86 11	65.38	213.87	151.49	335.23	420.46
4	Expenses	20180.70	19429.88	11527.46	39610.58	30988.33	62,556.41
	A) Cost of material consumed	15150 01	13.663.50	7256.90	28,813.51	20,253.69	42,181.93
	B) Purchase of Traded Goods	452.14	478.77	192.86	930.91	2,170.57	4,310.64
	C) Changes in inventories of finished goods, stock in trade and work inprogress	(287.21)	64.33	2314.30	(222.86)	2,514.86	2.243.15
	D) Excise DutyE) Employee benefits expenseF) Finance costsG) Depreciation and amortisation expenseH) Other Expenditure	1577.431486.92460.40	1.326.131,550.56459.483,606.73	$\sim$1102.541630.28523.092770.80	2.903.563.037.48919.88	2.518.123.205.611.045.61	0.084.794.586,566.952,052.10
	Total Expenses	3327.67			7,134.40	7,076.83	12,918.78
5	Profit from operations before tax and exceptional items (3-4)	22167.36	21349.50	15790.77	43516.86	38785.29	75,068.21
6	Exceptional items	(1, 986, 66)	(1,919.62)	(4, 263.31)	(3,906.28)	(7,796.96)	(12, 511.80)
				583.75	÷.	12.227.89	29,876.50
$\overline{7}$	Profit before tax and after exceptional items (5-6)	(1,986,66)	(1,919.62)	(4, 847.06)	(3,906.28)	(20, 024.85)	(42, 388.30)
8	Tax expense
$\bullet$	Net Profit after tax (7-8)	(1, 986, 66)	(1.919.62)	(4,847.06)	(3,906.28)	(20, 024.85)	(42, 388, 30)
	Other comprehensive income/ (loss), net of tax	(6.55)	(8.55)	22.28	(17.10)	44.56	(34.19)
10	Total Comprehensive Income for the period [Comprising Profit / (ioss) forthe period (after tax) and Other Comprehensive Income (after tax)]	(1, 936.21)	(1,928.17)	(4,824.78)	(3,923.38)	(19,980,29)	(42, 422, 49)
11	Paid-up equity share capital (Face value-Rs 10 per equity share)	2232 54	2252.54	2232.54	2232.54	2232.54	2232.54
	Reserves (excluding revaluation reserves)						(33, 912, 46)
	Earnings per share (of Rs.10 each) (for the poriod - not annualized)
	Basic (Rs.)	(8.91)	(8.61)	(21.74)	(17.52)
	Diluted (Rs.)	(8.91)	(8.61)	(21.74)	(17.52)	(89.83)(89.83)	(190.16)(190.16)

Notes:

$\theta$

Place : Ludhiana Date

12th November, 2018

The above results were reviewed by the Audit Committee and thereafter have been adopted by the Board at its meeting held on Nov 12, 2018. The results for the quarter and halfyear ended September 30, 2018 have been reviewe $\mathbf{1}$

Regarding the auditors qualification for the year ended March 31, 2017 and March 31, 2018 with respect to repayment of FCCB liability, the repayment of the same has beendelayed due to liquidity crisis and additional liab $\overline{2}$

Due to various external /other factors beyond the control, company has suftered lesses to the tune of Rs. 1995.21 lakhs during the current quarter. However, despite net worth 3 בשפיט לשוטש טאפוזישו ושטא שטען שוט שוט אוייט אוייט אוייט אוייט אוייט אוייט אוייט אויס אוייט וואס שטען שטען שטעhaving been fully eroded in earlier quarters, the Management is of the view that the company is an operative c

The company has entered into arrangement with few vendors from whom company is purchasing raw material and in turn processing the same to the finished output, which is soldback to them . Thus the sales figure for half yea $\overline{4}$

As the company has defaulted on its debt obligations and further demand notices to pay the entire cutstanding amounts have been received, thus the long term debt payments 5 have also been classified as short term

The company has prepared the financial results for quarter ending 30th September 2018 in accordance with Indian Accounting Standards (IND AS) as prescribed under section133 of the companies Act, 2013 read with relevent ru $6$

The figures for the quarter ended 30th September, 2018 are the balancing figures between the unaudited figures in respect of half year ended 30th September,2018 and unaudited $\overline{7}$

POLYTE

WATAC-B

The business of the company fail within a single primary segment viz, Textile and honce, the disclosure requirement of IND AS 108- 'Operating Segment' is not applicable.

$\sim$

Figures relating to previous period have been regrouped/rearranged, wherever necessary to make them comparable with those of the current period. $\overline{9}$

For Vardhman Polytex Ltd.

(Adisnoswal) Managing Director (Business & Corporate Affairs)

VARDHMAN POLYTEX LTD,Regd. Office : 'Vardhman Parlg Chandigarh Road, Ludhima - 141123'
CIN: L17122P81980PLC 004242, PHONES:0161-2585301-04,6629EEE,	FAX:5629966, E-Mail- info@vpl.in,
Web: www.vpl.in
BALANCE SHEET AS AT 3OTH SETTEMBER 2O1E
		lRs- In Lalhl
Pafiiculars	As at	As at
	30.09.2018	31.03.2018
I. ASSETS
1. Non-curent assets
a) Property, plant and equipment	21452 38	22357 42
b) Investment Property	495.25	s05 06
c) Capital work-in-progress	163	311 3S
d) Other intangible assetse) Financial assets	6.32	66S
i) lnvestments
ii) Other Iinmcial assets	23.75	23 15
iii) Trade receivable	r0.65
e) Deferred tax assets (net)	236.90	279235016't8
f) Other non orrent assets	5015.1E
Sub total - Non Cunenl Assets	746.53	929 06
	27988.99	29428.78
Cuent assets
Inventories	3520 74	4256 BB
Finmcial assets
i) Trade receivables	2105.45	275075
ii) Cash md cash equivalents	76 74	3972
iii) Bank balances other than (ii) above	729	128 53
iv) Loans	1239	16 58
v) Others	50 70	277 E9
Curent tax assets	335 77	340 82
Other orrent assets	2537 59	2297 38
Sub total - Current Assets	870E.54	10108.55
TOTAL - ASSETS	36697.63	39536.73
II. EQUITY AND LIABILITIES
1. Equity
a) Equity share capital	223254	223254
b) Other equity	(3783s.84)	(33972.46\
Sub total -	(35603.30)	(31679.921
Non-cuent liabilities
Financial liabilities
i) Borrowings		13223 A4
Other orrent liabilities	337.69	053
Provisions	053	48 97
Sub total - Non Current liabilities	65.68
	403.90	13273,34
Current liabilities
Financial liabilities
i) Bonowings	M293.31	24532.20
ii) Trade payables	4598.97	4076.68
iii) Other financial liabilities	219n.22	28251 33
Other current liabilities	177.71	269.36
Provisions	855.81	873.74
Sub total - Current liabilities	77897.03	57943.31
AND LIABILIry	36697.63	39536.73

For Vardhman Polytex Ltd swal)

Managrng Oireclor (Bustness E Coporate Affar6)

Place : Ludhiana Date ; l2thNovember,

Page 2

ROMESH K. AGGARWAL & ASSOCIATES

CHARTERED ACCOUNTANTS G.T. ROAD, MILLER GANJ, LUDHIANA-141003 Phones: 2532920, 2534289.

INDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEW OF INTERIM STANDALONE FINANCIAL RESULTS

To

The Board of Directors. Vardhman Polytex Ltd. Ludhiana

1. Introduction

We have reviewed the accompanying statement of unaudited standalone financial results of Vardhman Polytex Limited (The company) for the quarter and six months ended September 30, 2018 ("the statement") prepared by the company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligation and disclosure requirements) Regulations, 2015 read with SEBI circular no. CIR/CFD/FAC/62/2016 dated 5th July 2016.

This Statement which is the responsibility of the Company's Management and approved by the Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34 "Interim Financial reporting" (Ind AS 34) prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to issue a report on these financial results based on our review.

2. Scope of Review

We conducted our review in accordance 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 analytical procedures applied to financial data and thus provide less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.

3. Basis of Qualified opinion

The company had credited profit of Rs 396.44 lacs due on payment of FCCB liability to the statement of profit & loss during the period ending March 31,2017 and March 31,2018 . This profit should have been credited in the statement of profit & loss on payment of FCCB liability which is still outstanding to the tune of 554,160 USD as on December 31,2017. The same has not been addressed in the current period under audit.

4. Qualified Opinion

Based on our review in conduct as above, except for the effect of our observation stated in Para 3 above, nothing has come to our attention that causes us to believe that the accompanying statement prepared in accordance with Indian Accounting Standards as specified under section 133 of the companies Act, 2013 read with Companies (Accounts) Rules, 2015 and other recognized accounting practises and policies 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 read with

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