Polygenta Technologies Ltd. - Quarterly/Annual Result Disclosures and Notes dated 30 Sep 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 November 10, 2017.The limited review of unaudited financial results for the quarter and half year ended September 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 and half year ended September 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.



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 and half year ended September 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 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 Half-Year Ended

30-Sep-16 30-Sep-16



Unaudited Unaudited



Net profit / (loss) as per pervious Indian GAAP after tax 947.31 (445.30)

Fair Valuation of financial liability 43.09 96.54



Net profit before Other Comprehensive Income 990.40 (348.76)



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) The Company is engaged in the business of manufacturing and selling polyester filament yarn (PFY).  All of the Company's operations are based in India and are subject to the same risks and returns.  Therefore, no separate segment disclosure is provided in terms of Ind AS -108, i.e. Operating Segment.



5) Due to adverse market conditions and sub-optimal scale of operations, the Company continues to incur losses. The Company is evaluating various alternatives to increase the capacity. The Company is in advanced stage of finalising contract for setting up facility for production of Fully Drawn Yarn, a product with better margin.



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.



During the Quarter , the Company has received approval from RBI for External Commercial Borrowings (ECB) of Euro 10 Million from PGTL. Out of this Euro 0.65 Million was disbursed during the Quarter. PGTL, in its effort to support the Company, has waived interest on this ECB upto 30 September 2018. Earlier PGTL had waived the interest on ECB of sanctioned amounts USD 20 Million and Euro 4.5 Million upto 31 March 2018 from the beginning of disbursements. Further, PGTL had earlier 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.



6) Pre-GST, the company was eligible for Mega project refund scheme from Maharashtra state government, mostly by way of refund of sales tax, post- GST pending notification from state government for continuance of the schemes, the Company has not recognised the aforesaid benefit in the quarter. If the Company had considered such benefit as applicable under erstwhile VAT regime, Revenue from Operations would have been higher by Rs.38 Million.



7) Post the applicability of Goods and Service Tax (GST) with effect from 1st July, 2017, revenue from operations is disclosed net of GST, whereas Excise Duty formed part of other expenses in previous periods/ year. Accordingly, the revenue from operations and other expenses for the quarter and half year ended 30th September, 2017 are not comparable with the previous periods/ year presented in the results.



8) The previous period's figures have been re-grouped/ re-classified wherever required to conform to current period's classification. All figures of financials has been rounded off to nearest Lacs rupees.