VISA Chrome Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2021

1 The above financial results of the Company were reviewed by the Audit Committee and taken on record by the Board of Directors at their respective meetings held on 30 June 2021.

2 The Company is in the business of manufacturing of Ferro Alloys and hence has only one reportable operating segment as per Ind AS 108 "Operating Segments".

3 The Company has incurred net loss during the quarter and year ended 31 March 2021 which has adversely affected the net worth of the Company. The Company's financial performance has been adversely affected due to non-availability of working capital for operations, and other external factors beyond the Company’s control which include high prices of raw materials during e-auction in comparison to the product prices. The Company has entered into an arrangement for conversion of raw material into finished goods with related party effective Q4 2020-21. It is expected that the overall financial health of the Company would improve after debt resolution and improvement in availability of working capital. Accordingly, the Company has prepared the financial results on the basis of going concern assumption. The statutory auditors have also drawn attention to the above matter without qualifying their opinion in their Audit Report.

4 The secured debt of the company have been categorised as Non-Performing Assets (NPA) by the lenders effective 11 July 2012. The majority of lenders have stopped charging interest on such debt. The Company has stopped providing further interest in its books effective 1 April 2016 since the debt is barred by limitation from the NPA date of 11 July 2012. The amount of interest expenses not provided for is estimated at Rs. 312.70 Million for the quarter ended 31 March 2021 and the accumulated interest not provided as on 31 March 2021 is estimated at Rs. 7207.66 Million. The statutory auditors have qualified their Audit Report in respect of this matter.

5 Pursuant to sanction of the Scheme of Arrangement by National Company Law Tribunal (NCLT), Cuttack Bench vide Order dated 8 July 2019 (NCLT Order) and filing of the certified copy thereof with the Registrar of Companies, Cuttack on 13 July 2019, the Scheme of Arrangement became effective on and from 13 July 2019 and the Company’s Special Steel Undertaking stood transferred to and vested in VISA Special Steel Limited on and from the Appointed Date of the Scheme being 1 April 2013. The Hon'ble Supreme Court vide its ex-parte Order dated 17 January 2020 in Civil Appeal (Civil) No 56 of 2020 (State Bank of India vs VISA Steel Ltd & Anr) has directed issuance of notice and in the meantime stayed the aforesaid NCLT Order. Since the NCLT Order had been given effect to and stood implemented by the Company prior to 17 January 2020, the Company is dealing with the aforesaid Civil Appeal before the Hon’ble Supreme Court in consultation with its Advocates. If the NCLT Order had not been given effect to, the financial results of the Company would have been as under:

(Rs in Millions)

Sl. No. Particulars Quarter Ended Year Ended

31 March

2021 31 December

2020 31 March

2020 31 March

2021 31 March

2020

I Total Income 3,473.46 2,875.06 2,116.40 9,878.09 6,949.58

II Profit Before Tax (10,719.58) (393.33) (406.38) (11,972.73) (1,918.90)

III Profit After Tax (10,719.58) (393.33) (406.38) (11,972.73) (1,918.90)

IV Other Comprehensive Income (7.74) (1.61) (5.56) (12.57) (6.45)

V Total Comprehensive Income (10,727.32) (394.94) (411.94) (11,985.31) (1,925.35)

VI Earnings/(Loss) per Equity Share (92.58) (3.40) (3.51) (103.40) (16.57)



Assets and Liabilities of the company would have been as under: (Rs. In Million)

Particulars As at

31 March 2021 As at

31 March 2020

I Non Current Assets 17,484.63 29,801.97

II Current Assets, Loan and Advances 1,042.35 853.79

Total Assets 18,526.98 30,655.76

III Equity (23,461.98) (11,476.69)

IV Non Current Liabilities 217.03 6,270.73

V Current Liabilities and Provision 41,771.93 35,861.72

Equity and Total Liabilities 18,526.98 30,655.76



6 SBI had filed an application before Hon'ble National Company Law Tribunal Cuttack Bench (NCLT) for initiating Corporate Insolvency Resolution Process (CIRP) under Insolvency and Bankruptcy Code (IBC), which was dismissed by NCLT, Cuttack Bench. SBI preferred an appeal before National Company Law Appellate Tribunal (NCLAT) New Delhi which has directed NCLT to restore the application and proceed further in accordance with law. The NCLAT order has been challenged by the Company in the Hon'ble Supreme Court and the matter is pending.

7 The operations of the Company were temporarily impacted due to shutdown of its plant following lockdown imposed by the Government to control the spread of COVID-19 pandemic. The Company has resumed its operations in a phased manner through conversion arrangement with related party for some of its facilities and is taking necessary steps to ensure smooth operations. The Company is assessing the impact of COVID-19 pandemic on a continuing basis given the uncertainties associated with the nature and duration of the pandemic / lockdown and accordingly the impact may be different going forward than estimated. There are no material adjustments required in this financial results due to the pandemic.

8 The Exceptional Items for the year ended 31 March 2021 represents Rs. 2,151.17 million (Carrying amount Rs 2,538.67 million less Recoverable amount Rs 387.50 million) towards write off related to incomplete projects lying in Capital Work in Progress (CWIP) of the Company. The Company had been continuously incurring losses for past few years and does not envisage any substantial improvement in the financial position to complete the aforesaid CWIP. The CWIP is reinstated at the recoverable value i.e., fair value less cost of disposal as determined by an independent registered valuer using cost approach basis.

9 The figures for the last quarter of the current year and for the previous year are the balancing figures between the audited figures in respect of full financial year ended 31 March and the unaudited published figures up to third quarter ended 31 December.

10 Previous periods figures have been regrouped / rearranged wherever necessary.