Vardhman Polytex Ltd. — Interim / Quarterly Report 2021

Aug 13, 2021

REF: VPL: SEC: AUG:2O2L-22 Date: 13.08.2O2t

The Listing Department,	The Listing Department,
National Stock Exchange of lndia Ltd	BSE Limited
"Exchange Plaza"	z5th Floor, P.J Towers
Bandra-Kurla Complex,	Dalal Street Fort,
Bandra (East), Mumbai-4ooo5r	Mumbai-4oooor
Scrip Code: VARDMNPOLY	Scrip Codet 514175

SUBJECT: Outcome of Board meeting held on 13.08.2021 and Submission of Unaudited Financial Results for the quarter ended 3Oth June, 29.21.

Dear Sir/Madam,

Please take note that the Board of Directors of the company in its meeting held today i.e 13th August, 2O2t, inter alia, has taken the following decisions.

1. Board approved the Unaudited Financial Results of the Company for the quarter ended 30th June, 2O2L.

Pursuant to Regulation 30 read with Part A of Schedule III and Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements), Regulations 2015, we are enclosing herewith Unaudited Financial Results (both Standalone & Consolidated) of the Compan! for the quarter ended 30th June, 2021 together with Limited Review Report as approved by Board of Directors in its meeting held on 13-08-2021.

• 1. Board decided to hold the 41st Annual General Meeting (AGM) of the company on Wednesday,2g'h September,2O2L at 11.00 am at Registered Office of the company at Vardhman Park, Chandigarh Road, Ludhiana.
• 1. Book closure shall be from Thursday, 23'd September, 2O2t to Wednesday , 29rh September,2O2t (both days inclusive) for the purpose of ensuing AGM of the Company.
• 1. The Company has fixed the Cut-off date on 22nd September, 2020 (end of day) for the purpose of determining the number of shareholders entitled to vote at the ensuing Annual General Meeting of the Company.

The meeting of Board of Directors commenced at 3.00 pm and concluded at 4.00 pm.

Thanking you,

Yours truly, For Vardhman Polytex Limited

t. I Aab-

Ajay K. Ratra Company Secretary

Encl: as above

Vardhman Polytex Ltd An Osvnal Group'Company CIN: L'l 7 1 22PB1 980P1C004242

Corp. Office: Vardhman Park, Chandigarh Road Ludhiana - 141123 Punjab (lndia). Tel: +91 -1 61 -6629888 www.vpl.i'n info@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, 2021

${Re \text{ in } Leb}$

		Standalone				וואס. ווו במגוןConsolidated
		Quarter ended			Year ended		Year ended
	SI. No Particulars	30th Jun	31st Mar	30th Jun	31st March	30th Jun	31st Mar	30th Jun	31st March
		2021	2021	2020	2021	2021	2021	2020	2021
		Unaudited	Audited	Unaudited	Audited	Unaudited	Audited	Unaudited	Audited
1	Revenue from operations
$\mathbf{2}$	Other income	19,151.71	19,390.82	4,273.78	50,827.91	19,157.68	19,397.25	4,278.90	50,852.39
3		59.63	63.52	65.54	259.71	59.63	63.51	65.54	259.70
4	Total Income (1+2)	19,211.34	19,454.34	4,339.32	51,087.62	19,217.31	19,460.76	4,344.44	51,112.09
	Expenses
	A) Cost of material consumed	14,022.81	12,846.68	3,412.40	36,676.55	14,022.81	12,846.68	3,412.40	36,676.54
	B) Purchase of traded goods				69.56		0.01		69.56
	C) Changes in inventories of finished goods,	(1,445.21)	398.85	(171.06)	423.81	(1,445.21)	398.84	(171.06)	423.82
	stock in trade and work in progress
	D) Employee benefit expense	1,320.28	1,239.48	506.01	3,869.91	1,322.00	1,240.74	507.59	3,875.67
	E) Finance costs	1,521.32	1,604.90	1,535.47	5,900.79	1,521.31	1,604.90	1,535.47	5,900.78
	F) Depreciation and amortisation expense	348.72	355.35	366.93	1,453.66	351.71	358.27	369.69	1,465.23
	G)Power & Fuel Cost	1,675.63	1,526.60	541.43	5,029.98	1,675.63	1,526.60	541.43	5,029.98
	H) Other Expenditure	1,812.55	1,600.96	301.30	3,332.57	1,813.39	1,603.41	302.20	3,338.66
	Total Expenses	19,256.10	19,572.82	6,492.48	56,756.83	19,261.64	19,579.45	6,497.72	56,780.24
5.	Profit from operations before tax and	(44.76)	(118.48)	(2, 153.16)	(5,669.21)	(44.34)	(118.69)	(2, 153.28)	(5,668.15)
	exceptional items (3-4)
6	Exceptional items : Income / (Loss)
7	Profit/(Loss) before tax and after exceptional	(44.76)	(118.48)	(2, 153.16)	(5,669.21)	(44.34)	(118.69)	(2, 153.28)	(5,668.15)
	items (5-6)
8	Tax expenses					0.39	0.38		1.52
$\mathbf{9}$	Net Profit/(Loss) after tax (7-8)	(44.76)	(118.48)	(2, 153.16)	(5,669.21)	(44.73)	(119.07)	(2, 153.28)	(5,669.67)
	Other comprehensive income/ (loss), net of	(15.27)	(8.53)	(17.52)	(61.09)	(15.27)	(8.53)	(17.52)	(61.09)
	taxes
10	Total Comprehensive Income/(Loss) for the	(60.03)	(127.01)	(2, 170.68)	(5,730.30)	(59.99)	(127.60)	(2, 170.80)	(5,730.76)
	period [Comprising Profit / (loss) for the period
	(after tax) and Other Comprehensive
	Income/(Loss) (after tax)]
11	Paid-up equity share capital (Face value-Rs.10	2,229.10	2,229.10	2,229.10	2,229.10	2,229.10	2,229.10	2,229.10	2,229.10
	per equity share)
	Reserves (excluding revaluation reserves)		(37,043.98)		(37,043.98)		(37,077.88)		(37,077.88)
	Earnings per share (of Rs.10 each) (for the
	period - not annualised)						TAN POI
	Basic (Rs.)	(0.20)	(0.53)	(9.66)	(25.43)			(9.66)	(25.43)
	Diluted (Rs.)	(0.20)	(0.53)	(9.66)	(25.43)	0.387	(0.53)	(9.66)	(25.43)
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Not6:

• 1 view of the company's affairs. These results have been reviewed by the Statutory Auditors of the Company.
• 2 booked as and when finalised. The qualification still stands as on 30.O6.2O2L.
• 3 Due to various factors beyond the control of management/external factors, the company has incurred Losses to the tune of Rs 44.75 lakh during the current quarter. The company by way of One time settlement (OTS). Further two of the lenders namely Punjab National Bank & Jammu and Kashmir Bank and some operational creditors have filed applications lnsolvency and Bankruptcy Code 2016 with NCLT for initiating Corporate lnsolvency Resolution Process (CIRP). The petitions have not been admitted so far.
• 4 "going concern basis".
• 5 The consolidated financial results include results of F.M. Hammerle Verwaltung Gmbh, Austria.
• 6 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 sold back them.
• 8 The business of company falls within a single primary segment Viz, Textile and hence, the disclosure requirement of IND-AS 108 'Operating segment' is not applicable.
• 9 Figures relating to previous period have been regrouped/rearranged, where necessary to make them comparable with those of the current period.

: Ludhiana : 13th August,2021

99-

PaSc 2

ROMESH K. AGGARWAL & ASSOCIATES

CHARTERED ACCOUNTANTS Head Office - GT Road, Miller Ganj, Ludhiana-141003 Delhi Chandigarh Ludhiana Phones: 2532920, 2534289

Independent Auditor's Review Report On the Quarterly Unaudited Standalone Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

To The Board of Directors. Vardhman Polytex Ltd.

1. We have reviewed the accompanying statement of unaudited standalone financial results of Vardhman. Polytex Limited ("the Company") for the quarter ended June 30, 2021 ("the Statement") attached herewith, 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 Listing Regulations").

2. 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 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.

3. 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 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 396.44 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 30,2021. The same has not been addressed in the current period under audit. This matter was also qualified in all the previous limited review/audit reports submitted by us.

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 Indian Accounting Standard 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 including the manner in which it is to be disclosed contains any material misstatement.

1. We draw attention to Note 7 to the standalone financial results, which describes the uncertainties and the impact of Covid-19 pandemic on the Company's operations and results as assessed by the management. Our conclusion is not modified in respect of this matter. á kol

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Place - Ludhiana Dated - August 13, 2021 UDIN - 21519347AAAAAAV5047

激光

ROMESH K. AGGARWAL & ASSOCIATES

*

C H ART E RE D A CCO{,,ry ]"ANTS Head Affice * 6Tkoad, Mtlter 6anj, Ladhiana-14l,003 Delhi Chandigorh Ludhiana Plpnes:353392q 2*4A59

ltesqla{qns. 20}5; as amended

To The Board of Directors, Vardhman Pclytex Ltd.

1. We have reviewed the accompanying statement of unaudited cqnsolidated financial results of Vardhrnan Polytex limited {"the Parent"} and'its subsidiaries (the parent and its subsidiaries together reftrred to a5 "the Group"), for the quarter ended June 30. 2021 {"the Statement"}, being submitted by the Parent pursuunt to the requirernents of Regulation 33 of the SEBl (Listing Obligation and disclosure requirements) Regulations, 2015 as annended {"the Listing Regulatiohs").

2. This Statenrent which is the responsibility of the Parent's Management and approved by the parentk Board of Oirectors, has been prepared in accordance with the recognition and me6surement principles laid down in the lndian Accounting Standard 34 "lnterim Financial reporting" (lnd AS 34) preicribed under Section 1.33 of the Companies Act,2013 read with relevant rules issued thereunde6nO otn., ;;;,ir,g principles generally aecepted in lndia. Our responsibility is to express a conclusion on the Statement baseJ on our review.

3, We conducted our review of the Statement in accordance with the standard on Review Engagements (5RE) 2410, "Review of lnterint Financial lnformation Perforrned 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 inqtliries, primarily of persons responsible for financial and accounting matters, and applying snalytieal and other revierv procedures. A review is substantially less in scope than an audit conducied ii accordance with stanrjards 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 opini0n.

We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33 (g) of the SEBl {Listing obligations and Eisclosure ftequirements) Regulations, 2015, as amended, to the extent

1. The statement includes the results of F.M. Hammerle verwaltung Grnbh, Austria.

2. The group had credited profit of Rs 396.44 lacs due an payment of FCGB lia bility to prCIfit & loss during the period ending March 31,2017. This profit should have statement of profit & loss on poyment of FCCB liability which is still outstanding to the as on June 30,2021. The sarne has not been addressed in the curent period under also qualified in all the previor.ls lirrrited revie$audit reports submltted by us. was 6. Based en our review conducted and procedures performed as stated in paragraph 3, except for the effect sf our observatisn stated in Para 5 above, nothing has come to our attention that causes us to believe that the accompanying staternent prepared in accordance with the recognition and measurement principles taid down in the aforesaid lndian Accounting Standard and other accounting principLs 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.

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1. The subsidiary Company is located outside lndia whose quarterly financial statement and other ftnancial inforrnation have been prepared in accordance with the accounting principles generally accepted in their respertive country. These financial results are unaudited and have been furnished to us by the managBment" The company's management has converted the abovementioned financiaI s(atement and qther financial information of such subsidiary company located outside lndia from aceounting 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 suhsidiary company located outside lndia is based sulely on the unaudited financial statements and the conversion adjustments prepared by the management of the Campany and reviewed by us.

Our opinion ofl the unaudited quarterly consolidated financial results is not modified in respect of the ahsve matter.

1. We draw attention t$ Note 7 to the consolidated financial results, which describes the uncertainties and the irnpact of Covid-l"9 pandemic on the Company's operations and results as assessed by the managernent. Our eonclusion is not rlodified in respect of this matter.

M. No. 519347

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Place - Ludhiana Dated -August 13,lOZL Ll DIN - 2 1519347AAAAAW8054