Polygenta Technologies Ltd. - Quarterly/Annual Result Disclosures and Notes dated 30 Jun 2017

1) The above Unaudited Financial Results were reviewed by the Audit Committee and approved by the Board of Directors at the meeting held on September 1, 2017. The Statutory Auditors have carried out Limited Review of the same in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

2) This statement has been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 (Ind AS) prescribed under Section 133 of the Companies Act, 2013. Beginning April 1, 2017, the Company adopted Ind AS with a transition date April 1, 2016 and accordingly, restated results for the quarter ended June 30, 2016.

This result has been prepared in accordance with regulation 33 of the SEBI (Listing Obligation and Disclosure Recruitments) Regulation, 2015 and its does not include Ind AS compliant results for the preceding quarter and previous year ended 31st March, 2017 as it is not mandatory as per SEBI circular dated 5th July 2016.

The reconciliation of net profit reported in accordance with Indian GAAP to total comprehensive income in accordance with Ind AS is given below :


Particulars Quarter Ended

30-Jun-16

Unaudited

Net profit / (loss) as per pervious Indian GAAP after tax (1,392.61)

Fair Valuation of financial liability 53.45



Net profit before Other Comprehensive Income (1,339.16)

The limited review of unaudited financial results for the quarter ended June 30, 2017 as required in terms of Clause 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,2015 has been carried out by statutory auditors. The Ind As compliant corresponding figures for the-quarter ended June 30, 2016 has not been subjected to review or audit. However, the Company's management has exercised necessary due diligence to ensure that such financial results provide a true and fair view of its affairs.

3) There is a possibility that these quarterly financial results may require adjustment before constituting the final Ind AS financial statements as of and for the year ending March 31, 2018 due to changes in financial reporting requirements arising from new or revised standards or interpretations issued by MCA or changes in the use of one or more optional exemptions from full retrospective application of certain Ind AS as permitted under Ind AS 101.

4) Due to adverse market conditions and sub-optimal scale of operations, the Company continues to incur losses. The Company is evaluating various alternatives / initiatives so as further improve our product performance in accordance with customer demands. The Company is considering setting up facility for production of Fully Drawn Yarn, a product with better margin and will address the sub-optimality of operations.

The Promoters of the Company viz. PerPETual Global Technologies Limited (‘PGTL’ ) has always been extremely supportive of the Company’s project. With such support continuing, the Company is confident that it will be able to expand its position in the market as a unique supplier of high quality yarns and textiles made from 100% post-consumer PET bottles, being recognised as a preferred supplier by many of the world’s largest apparel brands.

PGTL, in its efforts to support the Company, has waived the interest on External Commercial Borrowings (ECB) of sanctioned amounts USD 20 Million and Euro 4.5 Million upto 31 March 2018 from the beginning of disbursements.

Further, PGTL has waived interest from September 2016 to March 2018 on the assigned ECBs totaling Euro 15 Million from Swedfund International AB (Swedfund) and Finnish Fund for International Co-operation Ltd. (Finnfund).

Considering what is stated above, the accounts are prepared based on the Principle of a Going Concern.

5) Other Income includes interest Rs. 53.19 received during the current quarter on income tax refund pertaining to financial years 2002-03 to 2004-05.