Polygenta Technologies Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2018

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 08th Feb,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) Other income for the quarter incudes liability no longer payable written back Rs 71.74 lacs , net off with Rs 71.06 lacs in respect of balances not recoverable written off.



4) 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 operations from Jul-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 recognised 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 31Mar19



Previous ECB of USD 20 Million and Euro 4.5 Million Beginning of the Disbursement Upto 31Mar19



Assigned ECBs of Euro 15 Million from Swedfund From 1Sep16 Upto 31Mar19

International Inc (Swedfund) and Finnish Fund for

International Co-operation Limited



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



5) Pre GST, the Company was eligible for Package Incentive Scheme in the state of Maharashtra mostly by way of refund of Sales Tax & Electricity Duty. Post GST, Maharashtra Government has issued notification dated 20th December 2018 for continuation of the Scheme and accordingly, during the quarter the Company has recognized this benefit Rs. 144.77 lacs for the period from 1st July 2017 to 31st December 2018 (included in other income)



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