Polygenta Technologies Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 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 28th May 2019.The statutory auditors of the Company have audited the financial results for the year ended 31st March 2019.



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) 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 Q2 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 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 30Jun19



Previous ECB of USD 20 Million and Euro 4.5 Million Beginning of the Disbursement Upto 30Jun19



Assigned ECBs of Euro 15 Million from Swedfund From 1Sep16 Upto 30Jun19

International Inc (Swedfund) and Finnish Fund for

International Co-operation Limited



The Company has also received "Letter of Support" from PGTL for Financial, Technical & Administrative Support for the forthcoming twelve months.



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 Principal of a Going Concern.



4) 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. Accordingly, the benefit recognized (included in other operating revenue) for the year ended 31 March 2019 amounting to Rs. 168.68 lacs includes Rs. 70.12 lacs for the period from 1st July 2017 to 31st March 2018.



5) The figures for the quarter ended 31st March 2019 and 31st March 2018 are the balancing figure between the audited figures in respect of the full financial year and published unaudited year to date figures upto the third quarter of the financial .



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