Zen Technologies Ltd. — Interim / Quarterly Report 2019

Nov 10, 2018

To

ZEN TECHNOLOGIES LIMITED

Certified CMMI Dev/5, AS9100D, ISO 27001, ISO 14001 Regd. Office : B-42, Industrial Estate, Sanathnagar Hyderabad - 500 018, Telangana, India Phone: +914023813281, 23811205, 23811206 Fax No: +91 40 23813694, 23814894 Email: info@zentechnologies.com Website: www.zen.in Corporate Identity Number: L72200TG1993PLC015939

Date: IO November 20 L 8

BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai- 400001

Dear Sir/Madam,

Sub: Outcome of the Board Meeting held on 10 November 2018

Ref: Symbol/Security ID: ZENTEC; Security Code: 533339; Series: EO

The Board in its meeting held on 10 November 2018, inter-alia, considered and approved the following:

• 1. Approved Un-audited Financial Results, both Standalone and Consolidated, for the second quarter and half year ended 30 September 2018, as recommended by the Audit Committee and reviewed by the Statutory Auditors, along with the statement of Assets and Liabilities as on 30 September 20 l 8.
• 1. A certified copy of Limited Review Report of financials for the Second Quarter ended 30 September 2018.

Further, the Board took note of the following in the aforesaid meeting:

I. The Board was informed that the Company has started dispatches with respect to the large order from Indian Security Force.

The above information is also available on the website of the Company: www .zentechnologies.com.

The meeting commenced at 11.15 A.M. and ended at 12.50 P.M.

This is for your information and record.

Thanking you Yours sincerely, Fo~Zeplogies Limited

M Satish Choudhury Company Secretary

To

National Stock Exchange of India Ltd., Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra (E), Mumbai - 400 051

		UN-AUDITED STANDALONE FINANCIAL RESULTS FOR THE ZND QUARTER AND HALF YEAR ENDED 30 SEPTEMBER 2018	ZEN TECHNOLOGIES LIMITEDD-42 Industrial Estate, Sanathnagar Hyderabad· 500 018, Telangana, lndla				( ~ In lacs Except for EPS)
SI No		3 Months ended	Preceding 3 Months ended	Corresponding 3 Monthsended In the Previous year	6 Months ended	ccrrespcndtng 6 Mo"th, Iended In the Previous year	Yearended
	PARTICULARS	30 September 2018	30 June 2018	30 September 2017	30 September 2018	30 September 2017	31 March 2018
		(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
	Revenuefromoperatlons	938.87	528.80	823.38	1,467.67	1.670.26	3,896.33
	Other Income	148.00	104.76	45.94	252.76	90.06	44-0.10
Ill I	Total Revenue (1+11)_	1,086.87	633.56	869.32	1,720.43	1,760.32	4,336.43
	IV Expenses
	(a) Costofmaterialsconsumed	565.92	220.79	94.17	786.71	320.31	482.97
	(li) Changes In Inventories ofnnlshecl goods, work-In progressand stock-in-trade	(536.57)	(196.35)	(22.90)	(732.92)	{7.47)	(125.59)
	(c) Manuracrcrtng expenses	130.58	62.59	116.84	193.17	170.85	307.60
	(d) Employee benefits expense	363.87	357.02	359.15	720.89	724.93	1,549.08
	(e) Finance costs	97.37	59.31	36.02	156.68	62.68	240.76
	(rJ Depreciation and amortisation expense	94.48	92.51	71.73	186.99	138.70	282.39
	(g) Other expenses	415.72	495.57	429.20	911.29	764.78	1,868.00
	Total expenses	1,131.37	1,091.44	1,084.21	2,222.81	2,174.78	4,605.23
	Pront/(Loss) before exceptional and extraordinary Items (Ill - IV)	{44.50)	(457.88)	(214.89)	(502.38)	(414.46)	(268.80)
	VI Exceptlonal Items
	VII Profit /(Loss) before extra-ordinary Items and tax (V - VI)	(44.50)	(457.88)	(214.89)	(502.38)	(414.46)	(268.80)
	vm Extraordlnaryttems
	IX Pront / (Loss) before Tax (VII - VIII)	(44.50)	(457.88)	(214.89)	(502.38)	(414.46)	(268.80)
	X [Tax expense
	(l)Currenttax
	(2) Prior period tax
	(3)__Deferredtax	69.78	(45.83)		23.95		(229.89)
	Total Tax	69.78	{45.83)		23.95		(229.89)
	XI Net Proflt/{Loss) from continuing operations (IX- X)	(114.28)	(412.0S)	(214.89)	(526.33)	(414.46)	(38.90)
	XII Profit/ (Loss) from discontinuing operations
	XIII Tax expense ofdlsccntlnulng cperatlcns
	XIV Net Proflt/(Loss) from discontinuing operations (XII· XIII)
	xv Net Pront/(Loss) ror the period (XI+ XIV)	(114.28)	(412.05)	(214.89)	(526.33)	(414.46)	(38.90)
	XVI Other Comprehensive Income						59.71
	A I(!) Items that will not be reclassffled to profit or Joss(ii) Income tax relating to Items that will not be reclassified to profit or loss						59.71
	B 1(1) ltems that wlll be reclassified to profit or loss
	(ll) Income tax relating to Items that will be reclasslfied to profit or Joss
	Total Comprehensive Income for the period (XV+XVI)XVII I (Comprising Pront (Loss) and Other Comprehensive	(114.28)	(412.05)	(214.89)	(526.33)	(414.46)	20.80
	Income for the certodtXVIII Paid-up equity share capital	771.60	771.60	771.60	771.60	771.60	771.60
	(Face Va!ue Rs 1/- per Share}
	XIX I Reserve excluding revaluation reserves as perbalance sheet of Previous accounting vear						11.188.92
	XX Earning Per Share (EPS)A Before extraordinary items (of Rs.11- each) (not annualised)
	(a) Basic (In Rs )
	(b) Diluted (n Rs. )	{0.15)	(0.53)	{0.28)	(0.68)	{0.54)	0.03
	B I After extraordinary Items (of Rs.1/- each) (not annualised)	(0.15)	(0.53)	(0.28)	(0.68)	(0.54)	0.03
	(a) Basic (In Rs.)		(0.53)
	(b) Diluted (In Rs )	(0.15)(0.15)	(0.53)	(0.28)	(0.68)	(0.54)	0.03
				(0.28)	(0.68)	(0.54)	0.03

Notes:

These results have been prepared In accordance with the ind AS notified under the Companies (indlan Accounting Standards) Rules 2015.The above results have been reviewed by the Audit Committee of the Board and approved by the Board of Directors at Its meeting held on 10th November 2018. The Statutory Auditors have carried out a Limited Review of the results for the Quarter and Half Year ended September 30. 2018.

2 The figures for previous periods/year have been recast and regrouped wherever necessary.

The Company operates ln only one segment. I.e. Training and stmutaucn.

Ind AS 115- Revenue from Training simulator services with customers is mandatory for accounting periods commencing on April 1, 2018. The Company has elected to apply the cumulative catch-up method on the date oftransltlon. Accordingly, the revised standard ts 4 applied to contracts that were in progress as of April 1. 2018. Accordingly, the comparatives have not been retrospectively adjusted. The effect of adoption oflnd AS 115 is not material to the financial statements.

During the Half Year ended September 30,2018 Company has Invested ln M/s. Zen Technologies USA Inc { wholly owned Subsidiary) of Rs. 307.31 lacs

6 The Company subscribed 206,262 (partly paid Rs. 6/· each face value Rs. 10/·) equity shares of Un!str!ng Tech Solutions Private Limited, by Investing Rs 3 crcres on 09 October 2018

7 The value of orders on hand as on 10 November, 2010,ls about Rs. 341.99 crcres.

Place. Hvderabad Date: 10 November,2018

	M/s ZEN TECHNOLOGIES LIMITEDCIN:L72200TG1993PLC015939
	B -42 Industrial Estate, Sanathnagar Hyderabad - 500 018, Telangana, India
S.No	Balance Sheet as at 30 September 2018( ".in lacs)
	Particulars	As at 30.09.18	As at 31.03.18
	ASSETS
	Non-current assets
	(a)Property plant and Equipment	6,372.69	6,464.13
	(b)Intangible assets	15.75	22.93
	(c)Capital Work Inprogress
	(d)Financial assets
	(i) Investments	531.53	163.77
	(ii)Other financial assets	265.68	233.31
	(e) Income Tax -Assets(Net)	107.27	82.71
	(f)Deferred Tax Assets(Net)	205.94	229.89
	(g) Other non current assets	148.39	172.69
	Total Non Current Assets	7,647.25	7,369.43
II	!current assets
	(a) Inventories	3,443.19	1,155.47
	(b) Financial assets
	(i)Trade receivables	2,110.18	2,261.13
	(ii)Cash and cash equivalent	471.83	1,179.67
	(iii) Bank Balances Other Than Cash and
	Cash Equivalent	1,871.66	3,121.66
	(iv) Other financial assets	85.28	784.55
	(c) Other current assets	1,432.79	605.30
	Total Current Assets	9,414.93	9,107.78
	Total Assets (I + II)	17,062.18	16,477.21
	EQUITY AND LIABILITIES
	Equity
	(a) Equity Share Capital	771.60	771.60
	(b) Other Equity	9,736.43	11,070.42
	Total Equity	10,508.03	11,842.02
II	I Liabilities
	Non-current liabilities
	(a) Financial Liabilities
	Borrowings	156.99	327.86
	(b) Provisions	131.29	129.94
	Total Non Current Liabilities	288.28	457.80
	Current liabilities
	(a) Financial Liabilities
	(i)Trade payables	158.99	346.75
	(ii)Other Financial liabilities	3,260.92
	(b) Other current liabilities	2,845.96	885.32
	Total Current Liabilities	6,265.87	2,945.324,177.39
		17,062.18	16,477.21

SEKHAR& CO. CHARTERED ACCOUNTANTS

PARTNERS: K.C. Devdas, BCom. FC.A c. Amarnath, B.Com, LLB. FCA, DISA (ICA) G. Ganesh, B Com. FCA, DISA (ICA) Mrudulatha Devdas, B Com. AC.A

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

To

The Board of Directors of

Zen Technologies Limited

• 1. We have reviewed the accompanying Statement of Standalone Unaudited Financial Results of Zen Technologies Limited ("the Company"). for the quarter ended September 30, 2018 ("the Statement"), being submitted by the Company pursuant to the requirement of regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as modified by Circular No. CIR/CFD/FAC/62/2016 dated July 5, 2016.
• 1. 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 by lndian Accounting Standard 34 "Interim Financial reporting" {"Ind AS 34") prescribed under Section 133 of The Companies Act, 2013 read with the relevant rules issued there under 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 of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 'Review if 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 the inquiry of the Parent personnel and analytical procedures applied to financial data and thus provide less assurance than audit. We have not performed an audit and, accordingly, we do not express an audit opinion.

1. Based on our review conducted as stated above nothing has come to our attention that causes us to believe that the accompanying Statement, in accordance with the aforesaid Indian Accounting Standards and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as modified by 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.

Secunderabad For Sekhar & co Date: November 10, 2018 Chartered Accountants Firm Reg No. 0036955

Partner M No. 014966

		( In lacs Except for EPS)
SI No	PARTICULARS	3 Months ended	ended	Precedlng3 Months I Corresponding 3 Monthsended In the Previous year	6 Months ended	Corresponding 6 Monthsended in the Previous year	Yearended
		30 September 2018	30 June 2018	30 September2017	30 September 2018	30 September2017	31 March 2018
		{Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
	Revenue from operations	938.B7	528.80		1,467.67
	Other Income	159.69	106.86		266.55
Ill	Total Revenue (1+11)	1,098.56	635.66		1,734.22
	IV [Expenses
	(a) Cost of matertals consumed	565.92	220.79		786.71
	(b} Changes In Inventories of finished goods, work-In progressand stock-Jn-trade	(536.57)	[196.35)		(732.92)
	[c) Manufacturing expenses	130.58	62.59		193.17
	(d) Employee benefits expense	401.79	407.68		809.47
	(el Finance costs	97.5S	59.51		157.06
	{f) Depreciation and amortisation expense	94.56	92.52		187.08
	(g) Other expenses	464.34	521.53		985.79
	Total expenses	1,218.17	1,168.27		2,386.36
	V I Profit/(Loss) before exceptional and extraordinary Items (Ill· IV)	(119.61)	[532.61)		(652.14)
	VI Exceptional Items
	VII Profit /(Loss) before extra-ordinary Items and tax (V - VI)	(119.61)	[532.61)		(652.14)
	V[J] Extraordinary Items
	IX Profit/ (Loss) before Tax (VII - VIII)	(119.61)	[532.61)		(652.14)
	X [Tax expense
	(1) Current tax
	(2) Prior period tax
	(3) Deferred tax:	69.78	(45.83)		23.95
	Total Tax	69.78	[45.83)		23.95
	XI I Net Pront/(Loss) from continuing operations (IX- X)	(189.39)	[486.78)		(676.09)
	XII Profit/ (Loss) from discontinuing operations
	XIII Tax expense of discontinuing operations
	XIV I Net Pront /(Loss) from discontinuing operations (XII - XIII)
	XV Nd Prom /(Loss) for the period (XI+ XIV)	(189.39)	(486.78)		(676.09)
	XVI I Other Comprehensive Income
	(I) Items that will not be reclasslfled to profit or loss
	(ii) Income tax relating to Items that will not be reclassified to profit or loss
	B l(l) Items that will be reclassified to profit or loss
	(l!) Income tax relating to Items lhal wlll be rectasstnec to profit or loss
	Total Comprehensive Income for the period (XV+XVJ)XVII I (Comprising Profit (Loss) and Other ComprehensiveIncome for the period)	(189.39)	(486.78)		(676.09)
	XVIII Pald-upequltysharecapltal(Face Value 'fl/- per Share)	771.60	771.60		771.60
	XIX I Reserve excluding revaluation reserves as perbalance sheet or orevtcus eccocnuna yearXX Earning Per Share (EPS)
	Before extraordinary items {of? .1/- each} (not annualised)
	(al Basic (Inf.)
	(bl Diluted (n? )	(0.25)	(0.63)		(0.88)
	B !After extraordinary Items (oft .1/· each) (not ;mnual!sed)	(0.25)	[0.63)		(0.88)
	(a) Basic (Inf)
	(b) Diluted (In~.)	[0.25)	[0.63)		[0.88)
		(0.25)	(0.63)		(0.88)

ZEN TECHNOLOGIES LIMITED B -4Z Industrial Estate, Sanathnagar Hyderabad · 500 018, Telangana, India UN-AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE ZND QUARTER ANO HALF YEAR ENDED 30 SEPTEMBER 2018

Notes:

These results have been prepared In accordance with the Ind AS notified under the Companies (Indian Accounting Standards) Rules 2015.The above results have been reviewed by the Audit Committee of the Board and approved by the Board of Directors at Its meeting held on 10th November 2018. The Statutory Auditors have carried out a l.lmited Review of the results for the Quarter and Hair Year ended September 30, 2018.

The figures fer previous periods/year have been recast and regrouped wherever necessary.

The Company operates In only one segment, Le. Training and Simulation.

Ind AS 115 - Revenue from Training simulator services with customers ls mandatory for accounting periods commencing on April 1, 2018. The Company has elected to apply the cumulative catch-up method on the date of transition. Accordingly, the revised standard ls applied to contracts that were In progress as of April 1, 2018. Accordingly. the comparatives have not been retrospectively adjusted. The effect of adoption of Ind AS 115 Is not material to the financial statements.

M/s. Zen Technologies USA Inc ( whol!y owned Subsidiary) for the Half Year ended 30.09.2018 has incurred loss of Rs.149.76 lacs

6This Is flrstyear of Quarterly and yearly consolidation offinanclal results, Hence previous Quarters and yearly comparative figures were not avalfable

The value of orders on hand as on 10 November, 2018,ls about Rs. 341.99 crcres

Plate: Hyderabad Date: 10 November,2018

	M/s ZEN TECHNOLOGIES LIMITED
	Cl N: L72200TG1993 PLC015939
B -42 Industrial Estate, Sanathnagar Hyderabad - 500 018, Telangana, India
	ConsolidatedBalance Sheet as at 30 September 2018
S.No		( ~.in lacs)
	Particulars	As at 30.09.18	As at 31.03.18
I	!ASSETS
	Non-current assets
	(a)Property plant and Equipment	6,378.57
	(b)Intangible assets	15.75
	Capital Work In progress( c )
	( d)Financial assets
	(i) Investments	224.22
	(ii)Other financial assets	265.68
	( e) Income Tax -Assets(Net)	107.27
	(f)Deferred Tax Assets(Net)	205.94
	(g) Other non current assets	148.39
	Total Non Current Assets	7,345.82
II	I current assets
	(a) Inventories	3,443.19
	(b) Financial assets
	(i)Trade receivables	2,110.18
	(ii)Cash and cash equivalent
	(iii) Bank Balances Other Than Cash and	510.51
	Cash Equivalent
		1,871.66
	(iv) Other financial assets	85.28
	(c) Other current assetsTotal Current Assets	1,622.77
	Total Assets (I+ II}	9,643.59
		16,989.41
I	I EQUITY AND LIABILITIES
	Equity
	(a) Equity Share Capital	771.60
	(b) Other Equity	9,586.67
	Total Equity	10,358.27
II	I Liabilities
	Non-current liabilities
	(a) Financial Liabilities
	Borrowings
	(b) Provisions	156.99
	Total Non Current Liabilities	131.29
	Current liabilities	288.28
	(a) Financial Liabilities
	(i)Trade payables	223.30
	(ii)Other Financial liabilities	3,273.60
	(b) Other current liabilities	2,845.96
	Total Current Liabilities	6,342.86
	Total Equity and Liabilities (I+ II)	16,989.41

SEKHAR& CO. CHARTERED ACCOUNTANTS

PARTNERS: K.C. Oevdas, B Com. FC.A C. Amarnath, B Com.LLB' FC.A' DISA (ICA) G. Ganesh, B Com' FCA, DISA (ICA) Mrudulatha Devdas, B Com . A.C.A

IND~PENDENT AUDITOR'S REVIEW REPORT ON REVIEW OF INTERIM FINANCIAL RESULTS

To

The Board of Directors of

Zen Technologies Limited

• 1. We have reviewed the accompanying Statement of Consolidated Unaudited Financial Results of Zen Technologies Limited and its subsidiaries (the Parent and subsidiaries together referred to as a Group"), for the quarter ended September 30, 2018 ("the Statement"), being submitted by the Parent pursuant to the requirement of regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as modified by Circular No. CIR/CFD/FAC/62/2016 dated July 5, 2016.
• 1. This Statement which is the responsibility of the Parent's Management and approved by the Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down by Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34") prescribed under section 133 ofThe Companies Act, 2013 read with the relevant rules issued there under 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 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 from material misstatement. A review is limited primarily to the inquiry of the Parent personnel and analytical procedures applied to

~

financial data and thus provide less assurance than audit. We have not performed an audit and, accordingly, we do not express an audit opinion.

• 1. The Statement includes the results of following entities:
  • a. Parent Company Zen Technologies Limited
  • b. Subsidiary Company: Zen Technologies USA Inc.
• 1. Based on our review conducted as stated above nothing has come to our attention that causes us to believe that the accompanying Statement, in accordance with the aforesaid Indian Accounting Standards and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as modified by 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.

Secunderabad For Sekhar & co

Date: November 10, 2018 Chartered Accountants

Firm Reg No. 0036955

K. C. Devdas Partner M No. 014966