Polygenta Technologies Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2017

1) The above financial results have been taken on record by the Audit Committee and subsequently adopted by the Board of Directors in its meeting held on 26th May 2017.The statutory auditors of the Company have audited the financial results for the year ended 31st March 2017 and 31st March 2016. The figures for the quarter ended 31st March 2017 and 31st March 2016 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.

2) 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 Accounting Standard-17, i.e. Segment Reporting.

3) Due to adverse market conditions (which were aggravated in Q3 and Q4 of FY 2016-17 owing to the demonetisation) and sub-optimal scale of operations, the Company continues to incur losses. As a result of the said losses, the Net Worth of the Company has been eroded completely. However, the Company is evaluating various alternatives / initiatives so as to address the sub-optimality of operations and to further improve our product performance in accordance with customer demands.
The existing of the Company viz. PerPETual Global Technologies Limited (‘PGTL’ ) and its Lenders always have 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 not charged any interest on External Commercial Borrowings (ECB) of sanctioned amounts USD 20 Million and Euro 4.5 Million.
Further, during the year, the ECB Loans earlier granted by Swedfund International AB (Swedfund) and Finnish Fund for International Co-operation Ltd. (Finnfund) were assigned to PGTL along with interest accrued thereon. After assignment, PGTL has not charged any interest from September 2016 on the assigned ECBs. The accrued interest on these ECBs, amounting to Rs.352.6 million, which was assigned along with ECBs, was rescheduled by PGTL so that the next interest payment becomes due in April 2018.
In addition to this, the Company has also received letter of support from PGTL for financial, technical and administrative support for the forthcoming 12 months.
Based on the above, the Management has performed impairment test and is of the view that there is no impairment in the value of fixed assets.
Considering what is stated above, the accounts are prepared based on the Principle of a Going Concern.

4) Finance cost is inclusive of Foreign Exchange Gain on ECB acquired for working capital purpose. During the quarter ended 31 March 2017 there is gain of INR 118.63 Lakhs. For quarter ended 31st December 2016 & quarter ended 30th September 2016 there was Foreign Exchange Gain of INR 142.27 Lakhs & INR 39.79 Lakhs respectively.

5) Consequent to the repeal of the Companies (Sick Industrial Companies Special Provisions) Act, 1985, the company is no longer a sick company.

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