VARVEE GLOBAL LIMITED — Interim / Quarterly Report 2021

Aug 13, 2021

Date: 13.08.2021

To, The Manager (Listing) The Bombay Stock Exchange Ltd. PhirozeJeejeebhoy Towers, Dalal Street, Mumbai – 400 001

The Manager (Listing) The National Stock Exchange of India Ltd "Exchange Plaza" Bandra-Kurla Complex Mumbai – 400 051

Company Code: 514274 (BSE) Company Code: AARVEEDEN (NSE)

Reg.: Submission of outcome of Board Meeting of Aarvee Denims and Exports Ltd. held on 13th August 2021 at 06:45 P.M. and concluded at 07:40 P.M.

Dear Sir/Madam,

With reference to captioned subject and as per the provisions of Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, outcome of Board Meeting is as under:

1. The Board, based on the recommendation of Audit Committee has approved the unaudited financial results (standalone) for the quarter ended 30th June 2021.

Further, pursuant to Regulation 33 of the Listing Regulations, 2015, we enclosed herewith copy of the following.

• a) Copy of Standalone Unaudited Quarterly Financial Results of the Company for the first quarter ended 30th June 2021 prepared in accordance with Ind AS and taken on record and approved by the Audit Committee and the Board of Directors of the Company at their meeting held on 13th August, 2021;
• b) Copy of Limited Review Report on the above referred Unaudited Quarterly Financial Results of the Company for the first quarter ended 30th June 2021issued by M/s. Shah & Shah Associates, Chartered Accountants.
• 1. The 32nd Annual General Meeting will be held on Wednesday, 29th September 2021 through Video Conferencing/ OAVM for the financial year ended 31st March 2021.
• 1. Board of Directors has approved the draft of notice of 32nd Annual General Meeting and of Directors' Report for the financial year 2020-21.

• 1. Secretarial Audit Report of the Company for the F.Y. 2020-21.
• 1. Mr. Tapan Shah, Company secretary in Practice (having membership no. FCS: 4476 COP 2839) has been appointed as the Scrutinizer to scrutinize the e-Voting process in fair and transparent manner.

Kindly acknowledge the receipt of the above.

Thanking you,

Yours faithfully For, Aarvee Denims and Exports Ltd.

Yashaswini Pandey Company Secretary

Encl: As above

- SHAH & SHAH ASSOCIATES

CHARTERED ACCOUNTANTS

702, ANIKET, Nr. MUNICIPAL MARKET, C.G. ROAD, NAVRANGPURA, AHMEDABAD -380 009. PHONE: 26465433 FAX : 079 - 26406983 . Email: ca@shahandshah.co.in

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Independent Auditor's Review Report on quarterly Unaudited Standalone Financial Results of M/s. AARVEE DENIMS & EXPORTS LIMITED pursuant to the Regulation 33 of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015

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To The Board of Directors of

AARVEE DENIMS & EXPORTS LIMITED

• 1. We have reviewed the accompanying statement of unaudited standalone financial results of AARVEE DENIMS & EXPORTS LIMITED ''the Company'') for the quarter ended 30th June, 2021 being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (''the Statement"),
• 1. This statement which is the responsibility of the Company's management and has been 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'', as 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 the statement based on • our review.
• 1. We conducted our review 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 from 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.
• 1. Attention is drawn to the fact that the figures for the 3 months ended 31 March 2021 as reported in these financial results are the balancing figures between audited figures in respect of the full previous financial year and the published year to date figures up to the third quarter of the previous financial year. The figures up to the end of the third quarter of previous financial year had only been reviewed and not subjected to audit.

S. Emphasis of Matters

Attention is invited to note no: 4 of the notes on unaudited standalone financial results as regards the management's evaluation of COVID-19 impact on the future performance of the Company.

Attention is invited to note no: 5 of the notes on unaudited standalone financial results regarding continuing recognition of MAT Credit as at June 30,2021.

Attention is invited to note no: 6 of the notes on unaudited standalone financial results as regards the book value of the assets loss due to fire amounting to Rs. 447.23 lacs (including incidental cost) as at June 30,2021 as estimated by the company and its effects given in these financial results.

e - ditors are relied upon and accepted the assumptions and explanations provided by the agement in these regards and our opinion is not modified in respect of these matters.

SHAH & SHAH ASSOCIATES

CHARTERED ACCOUNTANTS

• 702, ANIKET, Nr. MUNICIPAL MARKET, C.G. ROAD, NAVRANGPURA, AHMEDABAD -380 009. PHONE: 26465433 FAX : 079 - 26406983 Email: ca@shahandshah.co.in

Based on our review conducted as stated above nothing has come to our attention that causes us to believe that the accompanying statement, prepared in accordance with recognition and measurement principles laid down in the applicable Indian Accounting Standards prescribed under Section133 of the Companies Act,2013,read with relevant rules issued there under and other recognized accounting practices and policies, has not disclosed the information required to be disclosed in terms of Regulation33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Circular No. CIR/CFD/FAC/62/2016 dated July 5, 2016, including the manner in which it is to be disclosed, or that it contains any material misstatement.

Place : Ahmedabad Date : 13.08.2021 UDIN: 210L¡,9236j.~Ai()Úi:Z.-&'73J

For SHAH & SHAH ASSOCIATES Chartered Accountants FRN· 3742W

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NIL K.DAVE PARTNER Membership Number: 047236 •

AARVEE DENIMS AND EXPORTS LTD.

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Regd. Office. 191, Shahwadi, Na rol Sarkhej Highway, Narol, Ahmedabad-382 405. Phone No: 079-30417000, Fax No: 079-30417070, Email ID: info@aarvee-denims.com, Website: www.aarvee-denims.com, CIN No: LI 7110GJ1988PLC010504

STATEMENT OF STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2021

					Lakh) (Rs. in
		Standalone
		QUARTER ENDED			YEAR ENDED
Particulars		JUNE 30,2021	MARCH 31, 2021	JUNE 30,2020	MARCH, 2021
		(Unaudited)	(Audited)	(Unaudited)	(Audited)
I.	Income:
	from Revenue operations	7,919.07	13,894.32	351.03	27,912.75
	Other operating revenue	115.55	116.30	2.22	242.30
II.	Other income	359.12	(13.84)	30.38	577.14
	III. Total revenue (I + II)	8,393.74	13,996.78	383.63	28,732.19
	IV. Expenses:
	Cost of materials consumed	5,271.24	7,787.39	-	13,441.95'
	of finished work progress Changes in inventories goods and in	(I, 136.18)	3,639.90	430.38	6,409.28
	benefits Employee expense	782.40	927.16	71.56	1,928.51
	Finance costs	1, 150.94	1,222.32	1, 143.76	5,094.50
	Depreciation amortization expense and	741.43	814.98	749.20	3,214.79
	Other expenses	2,847.29	2,936.62	311.86	6,951.13
v.	Total expenses	9,657.12	17,328.37	2,706.76	37,040.16
	VI. Profit I (Loss) (Ill- before Tax V)	(1,263.38)	(3,331.59)	(2,323.13)	(8,307.97)
VII. Tax	expense: (Refer Note no: 9)
	Current tax	-	-	-	-
	Deferred tax	(977.35)	(1,140.44)	169.86	(1,888.86)
	Period/Year after Tax (VI-VII) VIII. Profit I (Loss) for the	(286.03)	(2,191.15)	(2,492.99)	(6,419.11)
IX.	(Net oftax) Other comprehensive income	-	83.80	-	83.80
X.	Total (VIII+ IX) comprehensive income	(286.03)	(2,107.35)	(2,492.99)	(6,335.31)
Xl.	Net profit attributable to:
	of the Owners èômpany a)	(286.03)	(2, 191.15)	(2,492.99)	(6,419.11)
	- Controlling b) Non interest	-	-	-	-
Xli.	Other comprehensive attributable to: income
	of the a) Owners company	-	83.80	-	83.80
	- Controlling interest b) Non	-	-	-	-
Xlii.	attributable Total coprehensive income to:				•
	ofthe Owners company a)	(286.03)	(2,107.35)	(2,492.99)	(6,335.31)
	Non - Controlling interest b)	-	-	-	-
XIV.	Paid-up equity share capital ( Rs.IO) value Face of	• 2,345.98	2,345.98	2,345.98	2,345.98
xv.	Other revaluation reserve) Equity ( excluding	-	-	-	14,417.31
XVI.	of face of Rs. 10 value each Earnings per equity share
	& Rs.) Basic Diluted (in	(1.22)	(9.34)	(10.63)	(27.36)

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AARVEE DENIMS AND EXPORTS LTD.

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	SEGMENTWISE REVENUE RESULTS AND				Lakh) (Rs. in
	PARTICULARS •		Standalone
			QUARTER ENDED •
Sr No		JUNE 30,2021	MARCH 31, 2021 (Audited)	JUNE 30,2020 (Unaudited)	ENDED YEAR MARCH,2021 (Audited)
		(Unaudited)
1	Segment Revenue
	a) Textiles	7,458.14	13,612.62	330.09	26,496.16
	farm b) Power Generation -Wind	576.48	398.00	23.16	1,658.89
	Total Segmental Revenue	8,034.62	14,010.62	353.25	28, 155.05
	Inter Segmental Elimination Less:	-	-	-	-
	Net Sales/Income from operations	8,034.62	14,010.62	353.25	28, 155.05
2	Segment Profit I (Loss) before & Interest Tax				•
	a) Textiles	(835.07)	(2,503. 79)	(1,014.62)	(4,320.42)
	b) Power Generation -Wind farm	714.70	389.08	(180.04)	1,026.83
	Inter Segment Elimination Less/(Add) :	-	-	-	-
	Total Result Segments	(120.37)	(2,114.71)	(1, 194.66)	(3,293.59)
	Interest related Textiles Less: to	1,150.94	1,222.32	1,143.76	5,094.50
	I (income) Less/(Plus) : Net Unallocable expense	(7.93)	(5.44)	(15.29)	(80.12)
	Total Profit /(Loss) before Tax	(1,263.38)	(3,331.59)	(2,323.13)	(8,307.97)
3 4	Segment Assets :
	a) Textiles	62,898.41	65,159.25	76, 148.92	65, 159.25
	farm b) Wind	7,984.04	5,904.03	5,103.28	5,904.03
	Total Assets	70,882.45	71,063.28	81,252.20	71,063.28
	Segment Liablitiies :
	a) Textiles	53, 192.38	51,856.86	60,096.66	51,856.86
	b) Wind farm	1,212.83	2,443.13	549.96	2,443.13
	Total Liabi . lities.	54,405.21	54,299.99	60,646.62	54,299.99

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Date : August 13, 2021 Place : Ahmedabad ......

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c.. AN,-. For, AARVEE DENIMS AND EXPORTS LTD. '/ """·· ^u "' '~~/ ^~

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^{I O} '"'-.ol \~-, ^A • • b ;11 U\_ 1.,, • t1meaa ao !1 :J VINOD P. ARORA ... r,.v, :CHAIRMAN & MANAGING DIRECTOR ·()'- (DIN: 00007065)

AARVEE DENIMS & EXPORTS LIMITED

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NOTE TO STANDALONE FINANCIAL RESULTS FOR THE FIRST QUARTER ENDED JUNE 30, 2021:

• 1) These Financial Results have been reviewed by the Audit Committee and approved by the Board of Directors of the company at their meeting held on August 13, 2021. These financial results have been reviewed by the statutory auditors of the company. The statutory auditors have expressed an unmodified opinion there on.
• 2) The above Financial Results have been prepared in accordance with the guidelines issued by the Securities and Exchange Board of India ("SEBI") and the Indian Accounting Standards (Ind AS) prescribed under Section ¹³³ of the Companies Act, 2013.

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3) Pending publication of notice in the Official Gazette by the ROC, Gujarat, the name of the subsidiary i.e. Aye Ess Spinning Mills Pvt. Ltd (herein after referred to as "Aye Ess") is yet to be stricken-off from Register of Companies and to be dissolved as at June 30, 2021. As the net worth of the Aye Essas at March 31, 2020 is nil, the investment in Aye Ess amounting to Rs.1.00 lac had been provided as loss in diminution in value of investment in subsidiary in Financial Results of the company for the year ended March 31, 2020. On account of above and after considering the frame work for preparation and presentation of financial statements in accordance with IND AS as well insignificant amount of investment in subsidiary company no consolidated financial results of the company for quarter ended June 30, 2021 is prepared and considered by the Board.

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• 4) The outbreak of COVID-19 pandemic globally and in India is causing significant disturbance and slowdown of economic activity . COVID 19 has caused interruption in production, supply chain disruption, unavailability of personnel, etc. The management of the Company has exercised due care in concluding significant accounting judgments and estimates in preparation of the financial results. Based on the above, the Company is of the view that, the impact of COVID-19 is highly uncertain and may be different from the estimates as at the date of approval of these financial results and the Company will continue to closely monitor any material changes to future economic conditions. The Company's management has made initial assessment of likely adverse impact on business and financial risks and believes that the impact is likely to be short term in nature. The management does not see any medium to long term risks in the Company's ability to continue as ^a going concern and meeting its liabilities as and when they fall due.
• 5) The company is continuing with the balance of MAT credit aggregating to Rs.1357.45 lacs recognized up to June 31, 2021. Based on the future projections of profitability and tax liabilities computed in accordance with the provisions of Income Tax Act, 1961, the management of the company believes that there shall be sufficient future taxable profit and the company shall be required to pay normal taxes within the period specified u/s. 115JAA of the Income Tax Act and entire amount of MAT credit shall be setoff/ utilised. Therefore, in accordance with the Guidance Note on Minimum Alternate Tax under the Income Tax Act, 1961 issued - by the Institute of Chartered Accountants of India, such MAT credit is properly recognized in the books. •
• 6) On April 27,2021 ^a fire broke out at Matada Unit located at Changodar, Ahmedabad. There has been loss to assets comprising of Inventories, Building, Plant and machineries and other fixed assets etc. which were adequately insured including coverage for replacement cost of fixed assets. The company has lodged the insurance claim with insurance company which is pending for settlement as at June 30,2021. As per the best estimates, the book value of the assets Jost due to fire including incidental cost incurred up to June 30, 2021 is Rs. 447.24 lacs and appropriate effects of the same have been given in these financial results. Further, the repairs and maintenance/reinstatement of the said assets are under progress and final loss due to fire will be increased on account of such cost.
• 7) The company has provided interest liabilities as at June 30 2021 as per the terms of finance as amended from time to time.
• 8) The period end various stocks have been physically verified, valued and certified by the management and no material discrepancies were observed between book stock and physical stock. Auditors have relied upon and accepted the same.
• 9} ln absence of taxable income during the year under review, no provision for current tax is required to be made. Further, the company has evaluated the tax positions by assessing the prevalent tax Jaws and compared the current position with prior years and past precedents and the consistency of data used in the deferred tax assets amount calculation and other relevant facts, the management is of the opinion that, there is ^a virtual certainty in future as to taxable income as per the normal provisions of the Income Tax Act -1961, therefore, deferred tax assets is recognized on unabsorbe~iness loss as at June 30, 2021. which is in compliance with the requirements of Ind AS ¹² 'Income Taxes'. S J\ND .

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• 10) The previous periods/year's figures have been regrouped and rearranged where necessary, to make them comparable to current period/year figures.
• 11) The code on Social Securities 2020 (Code) relating to employee benefits during the employment and post-employment benefit received Presidential accent in September, 2020. The Code has been published in official gazette in India. The effective date from which the Code is applicable and the Rules to be frame under the Code are to be notified. The company will assess the impact of the Code when it comes to effects and will record any related impact in the period of the Code become effective.

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12) As per requirements of Regulation ³³ of the Securities and Exchange Board of India, the Company is required to publish financial results. Investors can view the financial results of the company for the quarter ended June 30,2021 on the company's website www.aarveedenims.com or on www.bseindia.com and www.nseindia.com of the website of Bombay Stock Exchange ('BSE') and National Stock Exchange ('NSE') respectively .

For, A.AR_VEE DENIMS AND EXPORTS LTD. -

Place: Ahmedabad Date : 13.08.2021

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VINOD P. ARORA & MANAGING DIRECTOR

(DIN: 00007065)

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