Polygenta Technologies Ltd. - Quarterly/Annual Result Disclosures and Notes dated 30 Sep 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 November, 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 management evaluates the Company's performance and allocates resources based on an analysis of various performance indicators on this single business segment.



3) The Company’s performance improved during the current financial year 2019-20 and it has been able to generate positive EBIDTA but yet, the Company is unable to recover its depreciation cost given the present capacity constraint of the Plant. The Company is evaluating various alternatives to increase the capacity and inter-alia, to be able to make more value added products. As the first step to this, during the quarter the Company has started installing machineries for setting up facility for production of Fully Drawn Yarn (FDY), a speciality yarn which has the potential to yield better margin. The commercial production of FDY has commenced in November 2019.



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 *



* Aggregate value considering exchange rate as on September 30, 2019 (including interest accrued on assigned ECB of Euro 15 Mn ) is Rs. Rs.3,682.4 Mn

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



4) The above referred ECBs (including outstanding interest) were classified as Borrowings upto 31 March 2017. With the adoption of IndAS, these ECBs have been reclassified as "ECBs considered as equity in nature". However, the original contractual obligation for repayment in relation to these ECBs continues to exist.



5) The previous year's / period's figures have been re-grouped / re-arranged wherever necessary, to conform to the current period's presentation.
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 November, 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 management evaluates the Company's performance and allocates resources based on an analysis of various performance indicators on this single business segment.



3) The Company’s performance improved during the current financial year 2019-20 and it has been able to generate positive EBIDTA but yet, the Company is unable to recover its depreciation cost given the present capacity constraint of the Plant. The Company is evaluating various alternatives to increase the capacity and inter-alia, to be able to make more value added products. As the first step to this, during the quarter the Company has started installing machineries for setting up facility for production of Fully Drawn Yarn (FDY), a speciality yarn which has the potential to yield better margin. The commercial production of FDY has commenced in November 2019.



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 *



* Aggregate value considering exchange rate as on September 30, 2019 (including interest accrued on assigned ECB of Euro 15 Mn ) is Rs. Rs.3,682.4 Mn

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



4) The above referred ECBs (including outstanding interest) were classified as Borrowings upto 31 March 2017. With the adoption of IndAS, these ECBs have been reclassified as "ECBs considered as equity in nature". However, the original contractual obligation for repayment in relation to these ECBs continues to exist.



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