Vardhman Polytex Ltd. — Interim / Quarterly Report 2020

Aug 13, 2019

REF: VPL: SEC: AUG: 2oi9-2o Date:1o.o8,2019

The Listing Department,	The Llstlng Department,
National Stock Exchange of lndia Ltd	BSE Llmlted
"Exchange Plaza"	u 5th Floor,
Bandra-Kurla Complex,	P.J Towers
Bandra (East),	Dalal Stieet Fort,
Mumbai-4ooo5i	Mumbai-4ooool
Scrip Code: VARDMNPOLY	Scrip Code: 5r4u5

SUBJECT: Outcome of Board meeting held on 1o.o8.2o19 and Submission of Unaudited Financlal Results for the quarter ended 3oth June, 2o19.

Dear Sir/Madam ,

Please take note that the Board of Directors ofthe company in its meeting held today i.e roth August, 2019, inter alia, has taken the following decisions.

1. Board approved the Unaudited Financial Results of the Company for the quarter ended 3oth June, 2o19.

Pursuant to Regulation 3o read with Part A of Schedule lll and Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements), Regulations 2015, we are enclosing herewith Unaudited Financial Results (both Standalone & Consolidated) of the Company for the quarter ended 3oth June, 2019 together with Limited Review Report as approved by Board of Directors in its meeting held on to-o8-zot9.

• 1. Board decided to hold the Annual General Meeting of the company on Wednesday, z5th September,2o19.
• 1. Book closure shall be from Friday, :oth September, 2o19 to Wednesday, z5th September, 2oi9 (both days inclusive) for the purpose of enluing Annual General Meeting of the Company.
• 1. The Company has fixed the Cut-off date on r8th September, 2019 (end of day) for the purpose of determining the number of shareholders entitled to vote at the e-voting facility being provided in the ensuing Annual General Meeting of the Company.

The meeting of Board of Directors commenced at z.3o pm and concluded at 4.15 pm.

Thanking you, Yours truly, For Vardhman Polytex Limited

Aiay K, Ratra Company Secretary

Vardhman Polytex Ltd an Oifli.l GqrP'compary CIN: Ll 7l 22P81 980P1C004242

Co?p. Office: Vardhman Park, Chandigarh Road Ludhiana - 141123 Punjab (lndia). Tel: +91 -1 61 -5629888 in{o@vpl.in

VARDHMAN POLYTEX LTD.

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

CIN: L17122PB1980PLC 004242, PHONES: 0161-2685301-04, 6629888, FAX: 6629988, E-Mail- info@vpl.in, Web: www.vpl.in

STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2019

(Rs. In Lakh) SI. No Particulars Consolidated Standalone Quarter ended Quarter ended Year ended Year ended 31st March 30th June 30th June 30th June 31st March 30th June 31st March 31st March 2019 2019 2018 2019 2019 2019 2018 2019 Unaudited Audited Unaudited Audited Unaudited Audited Unaudited Audited $\mathbf{1}$ Revenue from operations 20.445.11 21,328.15 19364.5 81.055.79 20.450.07 21.332.98 19.369.32 81,075.31 $\overline{2}$ 65.38 lOther income 52.19 287.33 66.40 52.19 287.36 66.40 65.39 $\overline{\mathbf{3}}$ 21.380.34 81.343.12 20.516.47 21.385.18 Total Income (1+2) 20.511.51 19.429.88 19.434.71 81.362.67 $\overline{a}$ Expenses A) Cost of material consumed 16.210.85 15,500.59 13663.50 58.748.97 16.210.85 15,500.59 13.663.50 58.748.98 780.11 478.77 B) Purchase of traded goods 21.14 2,185.47 21.14 780.11 478.77 2,185.47 C) Changes in inventories of finished goods, stock in trade $(140.08)$ 236.69 64.33 880.24 $(140.08)$ 236.69 64.33 862.68 and work in progress 1,404.59 1326.13 D) Employee benefit expense 1,508.14 5,706.95 1,509.51 1,404.59 1,326.13 5,706.96 E) Finance costs 1,425.28 1.463.09 1550.56 5,974.75 1,425.28 1,463.09 1.550.56 5,974.74 451.66 F) Depreciation and amortisation expense 454.03 459.48 1,831.17 457.60 454.33 462.14 1,837.63 G) Other Expenditure 2,883.58 3,086.97 3806.73 13,441.90 2,884.20 3,087.57 3,807.33 13,444.33 22,368.50 Total Expenses 22,362.94 22,923.70 21,349.50 88,769.45 22,926.97 21,352.78 88,760.79 $\overline{\mathbf{5}}$ $|$ Profit from operations before tax and exceptional items (3-4) $(1,851.43)$ $(1,543.36)$ $(1,919.62)$ $(7, 426.33)$ $(1,852.03)$ $(1,541.79)$ $(1,918.07)$ $(7,398.12)$ Exceptional items 6 $\overline{\mathbf{z}}$ Profit before tax and after exceptional items (5-6) $(1,852.03)$ $(1,851.43)$ $(1.543.36)$ $(1.919.62)$ $(7.426.33)$ $(1,541.79)$ $(1,918.07)$ $(7,398.12)$ 8 Tax expense 0.35 0.35 1.42 0.34 $(7, 426.33)$ $\mathbf{9}$ Net Profit after tax (7-8) $(1,543.36)$ $(1,919.62)$ $(1,852.37)$ $(1,542.14)$ $(1,918.42)$ $(7,399.53)$ $(1,851.43)$ Other comprehensive income/ (loss), net of tax $(15.76)$ $(37.40)$ $(8.55)$ $(63.05)$ $(15.76)$ $(37.40)$ $(8.55)$ $(63.05)$ 10 Total Comprehensive Income for the period [Comprising Profit / (loss) $(1,580.76)$ $(1.867.19)$ $(1.928.17)$ $(7.489.39)$ $(1.868.13)$ $(1.579.54)$ $(1.926.97)$ $(7,462.58)$ for the period (after tax) and Other Comprehensive Income (after tax)] 11 Paid-up equity share capital (Face value-Rs.10 per equity share) 2,232.54 2,232.54 2,232.54 2,232.54 2,232.54 2,232.54 2,232.54 2,232.54 $(41, 401.84)$ $(41, 435.06)$ Reserves (excluding revaluation reserves) $(41, 401.84)$ $(41, 435.06)$ Earnings per share (of Rs.10 each) (for the period - not annualised) - Basic (Rs.) $(8.31)$ $(6.92)$ $(8.61)$ $(33.32)$ $(8.31)$ $(6.92)$ $(8.61)$ $(33.20)$ - Diluted (Rs.) $(8.31)$ $(6.92)$ $(8.61)$ $(33.32)$ $(8.31)$ $(6.92)$ $(8.61)$ $(33.20)$

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ROMESH K. AGGARWAL & ASSOC'ATES

C H A RT E R E D ACCOUATANIS Heod Oifice - 707, STREET No.2, BALAII COLONY, FARIDKOT- 757203 Brdnch OIJice - G.T. ROAD, MILLER GANJ, LUDHTANA-747003 Phones: 2532920, 2534289.

To The Board of Directort Vardhman Polytex Ltd.

1. We have reviewed the accompanying statement of unaudited quarterly standalone financial results of vardhman Polyt€x Limlted ("the Company") for the quarter ended June 30, 2019 ("the Statement"), being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligation and disclosure requirements) Regulations, 2015 as amended ("the Regulation"), read with SEBI circular no. crR/cFD/cMD 1/4412019 dated March 29, 2019.

2. This Statement which is the responsibility ofthe Company's Management and approved by the Board of Directors, has been prepared in accordance with the reco8nition and measurement principles laid down in the lndian Accounting Standard 34 "lnterim Financial reporting" (lnd AS 34) prescribed under Section 133 of the Companies Act,2O13 read with relevant rules issued thereunder and other accounting principles generally accepted in tndia. Our responsibility is to express a conclusion on the Statement based on our review.

3. We conducted our review of the Statement in accordance with the standard on Review En8agements (SRE) 2410, "Review of lnterim Financial lnformation Performed by the lndependent Auditor of the Entity," issued by the lnstitute of Chartered Accountants of lndia. 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.

4. The company had credited profit of Rs 395.44 lacs due on payment of FCCB liability to the statement of profit & loss during the period ending March 31,2017. 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 June 30,2019. The same has not been addressed in the current period under audit.

5, Based on our review conducted as above, except for the effect of our observation stated in Para 4 above, nothing has come to our attention that causes us to believe that the accompanying statement prepared in accordance with the recognition and measurement principles laid down in the aforesaid lndian Accounting Standard and other accounting principles generally accepted in lndia, has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 including the manner in which it is to be d contains any material misstatement. that it

For Romesh K A88arwal & Associates Cha nts

Place - Ludhiana Dated - August 10, 2019 u DtN - 19519347AAAAAG3424

, CHARTEREDACCOUNTANTS Heod OlIice - 707, STREET No. 2, BAWI COLONY FARIDKOT- 757203 Bronch Ofiice - G.T. ROAD, MILLER GANI, LUDHIANA-7470O3 Phones: 2532920, 2534289.

TO The Board of Directors, Vardhman Polytex Ltd.

1. We have reviewed the accompanying statement of unaudited quarterly consolidated financial results ("the Statement") ofVardhman Polytex Limited ("the Parent") and its subsidiaries (the Parent and its subsidiaries together referred to as "the Group"), for the quarter ended June 30, 2019, being submitted by the Parent pursuant to the requirements of Regulation 33 ofthe SEBI (Listing Obligation and disclosure requirements) Regulations, 2015 as amended ("the Regulation"), read with SEBI circular no. CIR/CFD/CMD L 14412079 dated March 29, 2019.

2. 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 the lndian Accounting Standard 34 "lnterim Financial reporting" (lnd AS 34) prescribed under Section 133 of the Companies Act,2013 read with relevant rules issued thereunder and other accounting principles generally accepted in lndia. Our responsibility is to express a conclusion on the Statement based on our review.

3, We conducted our review of the Statement in accordance with the standard on Review Engagements (SRE) 2410, "Review of lnterim Financial lnformation Performed by the lndependent Auditor of the Entity," issued by the lnstitute of Chartered Accountants of lndia. 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 circular issued by the SEBI under Regulation 33.(8) ofthe SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, to the extent applicable.

1. The Statement includes the results of F.M. Hammerle Verwaltung Gmbh, Austria.

2. The company had credited profit of Rs 395.44 lacs due on payment of FccB liability to the statement of profit & loss during the period ending March 31,2017. 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 554150 USD as on June 30,2019. The same has not been addressed in the current period under audit.

1. Based on our review conducted and procedures performed as stated in paragraph 3, except for the effect of our observation stated in Para 5 above, nothin8 has come to our attention that causes us to believe that the accompanying statement prepared in accordance with the recognition and measurement principles laid down in the aforesaid lndian Accounting Standard and other accounting principles generally accepted in lndia, has not disclosed the information required to be disclosed in terms 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.

2. The subsidiary Company is located outside lndia whose quarterly financial statement and other financial information have been prepared in accordance with the accounting principles generally accepted in their respecting country. These financial results are unaudited and have been furnished to us by the management. The company's mana8ement has converted the above mentioned financial statement and other financial information of such subsidiary company located outside lndia from accounting principles generally accepted in their respective country to accounting principles generally accepted in lndia. We have reviewed these conversion adjustments made by the Company's management. Our opinion in so far as it relates to the balances and affairs of such subsidiary company located outside lndia is based solely on the unaudited financial statements and the conversion adjustments prepared by the management of the Company and reviewed by us.

Our opinion on the unaudited quarterly consolidated financial results is not modified in respect of the above matter with respect to our reliance on the work done and reports of the other auditors.

For Aggarwal & Associates ntants I

M. No. 519347

Place - Ludhiana Dated - August 10, 2019 uDrN - 195193474A4A4H8254