Polygenta Technologies Ltd. - Quarterly/Annual Result Disclosures and Notes dated 30 Jun 2019

1) The above financial results have been taken on record by the Audit Committee and subsequently approved by the Board of Directors in its meeting held on 12th August, 2019.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) The Company is engaged in the business of manufacturing and selling polyester filament yarn (PFY) based on the "management approach" as defined in Ind-AS 108 - Operating Segments, the CEO/Decision Maker evaluates the Company's performance and allocates resources based on an analysis of various performance indicators on this single business segment.



3) The Company has turned EBIDTA positive during the quarter ended 30 June 2019. However, due to sub-optimal capacity of the Plant as compared to Industry Standards, the Company continues to incur losses. The Company is evaluating various alternatives to increase the capacity. As the first step to increase the capacity, the Company has entered in to a contract for setting up facility for production of Fully Drawn Yarn (FDY), a product with better margin. FDY project is expected to start commercial production from Q3 of FY 2019-20



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 recognized as a preferred supplier by many of the world’s largest apparel brands.



In its effort to support the Company, PGTL has waived interest on various ECB as under:-



Particulars of ECB Interest waived from Interest waived upto



Current ECB of Euro 10 Million Beginning of the Disbursement Upto 30Sep19



Previous ECB of USD 20 Million and Euro 4.5 Million Beginning of the Disbursement Upto 30Sep19



Assigned ECBs of Euro 15 Million from Swedfund From 1Sep16 Upto 30Sep19

International Inc (Swedfund) and Finnish Fund for

International Co-operation Limited





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



4) The Company has entered into a resolution agreement with a supplier to settle a dispute which was under Arbitration proceedings. Other Income includes Rs.6.3 Mn towards credit balance written back (no more payable) and Other Expenses includes Rs.10.0 Mn agreed to be paid to the said supplier in accordance with the resolution agreement.



5) In terms of notification no.2018/Chapter No. 1649 dated 21 December 2018 issued by the Government of Maharashtra - Co-operative, Marketing and Textile Department, under the State Textile Policy 2018-23, electricity subsidy benefit are notified. Accordingly, this benefit recognized for the quarter ended June 30, 2019 amounting to Rs. 16.3 Mn includes Rs. 7.3 Mn for the period from January 1, 2019 to March 31, 2019 (included in Revenue from Operations).



6) The figures for the quarter ended 31st March 2019 as reported in these financial results are the balancing figures between audited figures in respect of the full financial year and the published year to date unaudited figures up to the end of the third quarter of the relevant financial year.



7) The previous year's / period's figures have been re-grouped / re-arranged wherever necessary, to conform to the current period's presentation.