PSL Ltd. - Quarterly/Annual Result Disclosures and Notes dated 30 Jun 2020

1.The above un-audited financial results for the quarter ended 30th June,2020 have been reviewed by the Audit Committee and taken on record by Resolution Professional of PSL Limited ('the PSL or 'the Company' or Holding Company') at their respective meeting held on 14th September, 2020. The Statutory Auditors of the Company have reviewed these financial results pursuant to regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended.

2.An application was filed by PSL LIMITED under Section 10 of Insolvency and Bankruptcy Code, 2016 read with Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 before the Hon'ble NCLT Ahmedabad with a prayer to commence the Corporate Insolvency Resolution Process (CIRP) in respect of itself. The said application for initiation of Corporate Insolvency Resolution Process (CIRP), which was registered as C.P. (IB) No. 37/10/NCLT/AHM/2017, was admitted by Hon'ble National Company Law Tribunal (NCLT), Ahmedabad Bench, Ahmedabad (Hon'be NCLT/Hon'ble Adjudicating Authority) vide its order dated. 15.02.2019. The Adjudicating Authority (NCLT) had at that time appointed Mr. Nilesh Sharma, having IP Registration no. IBBI/IPA-002/IP-00006/2016-17/4 as "Interim Insolvency Resolution Professional", however on 29.08.2019 NCLT appointed Mr. Nitin Jain, having Registration No.: IBBI/IPA-001/IP-P-01562/2019-2020/12462 as Resolution Profession to carry out the functions as mentioned under Insolvency and Bankruptcy Code, 2016. Under the IBC proceedings the power of the Board were suspended with effect from 15.02.2019. The NCLT order also provided for a moratorium with effect from Feb 15.02.2019, till the completion of the Corporate Insolvency Resolution process (CIRP) or until it approves the resolution plan under section 31(1) or passes an order for liquidation of the company under section 33, whichever is earlier. Recently Committee of Creditors took a decision to file an application for initiation of Liquidation Process of the Company in CIRP.

3.This un-audited Standalone and Consolidated financial results for the Quarter ended 30th June' 2020 were placed at the meeting of the Directors of PSL on its Board( Powers suspended), Auditors,Finance & Accounts -Head and the RP held on 14th September, 2020. Accordingly, the said un-audited financial results of the company have been approved by the RP In consultation with Directors, Auditors and Finance & Accounts- Head of the company at the said meeting.

4.The Company’s main business is to manufacture steel pipes. Accordingly, the Company does not have more than one segment eligible for reporting in terms of relevant in accordance with IND AS 108 "Segment Reporting" issued by the Institute of Chartered Accountants of India.

5.Since the lenders of the company have treated their outstanding dues from Company to them as NPAs, the Company has not provided interest amounting to Rs. 108.34 Crores during the current quarter ended 30.06.2020 in its books of accounts during the quarter under review.

6.A closing Inventory of Rs . 15.44 Crores (valued at realisable value as on 30.06.2020 )excludes disputed (currently under Arbitration process) amount of Rs. 17.07 Crores on account of work in process being an under construction building at coimbatore( the company was doing construction work on this building for one of its client)

7.Since the company has subsidiaries and step down subsidiaries, in compliance of clause 33(3)(b) of SEBI (LODR) standalone as well as consolidated results for the quarter ended 30th June' 2020 have been stated in the above statement.



8.The Company has incurred net losses during the quarter ended as well as in the previous year and its net worth is fully eroded. However, the financial statements of the Company have been prepared on a going concern basis.

9.The figures of the quarter ended March 31, 2020 are the balancing figures between the audited figures for the financial year ended March 31, 2020 and the published unaudited figures for the nine months ended December 31, 2019,

10.The figures for the previous period / year have been regrouped wherever necessary to conform to the current year's classification.

11.The World Health Organization announced a global health emergency because of a new strain of Coronavirus (COVID-19) and classified its cutbract as a pandemic on 11th March 2020. On 24th March 2020.. The Indian Government announced a strict 21-day lockdown across the country to contain the spread of the virus, which was further extended till 3rd May 2020. This pandemic and government response are creating disruption in the global supply chain and adversely impacting most of the industries which has resulted in global shutdown.

The Company has taken into account the possible impact of COVID-19 in preparation of the unaudited standalone financial results, including its assessment of recoverable value of its assets based on internal and external information and has concluded no material adjustments are required therein as on June 30, 2020. The Company will continue to closely monitor any material changes to future economic conditions.

The results for the quarter are there fore not comparable with those for the previous quarter. The actual impact of COVTD-19 in coming quarters may be different from that of this quarter, depending on how the situation evolves globally.

12.The Resolution Professional, in exercise of responsibilities mentioned u/s 17(2)(e) of the Insolvency & Bankruptcy Code, 2016 signed these results based on the information provided by the Corporate Debtor, its directors, auditor, managerial staff etc.