Alps Industries Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2020

1. The Audited Financial Results for the Quarter Lind Financial Year ended on March 31, 2020 have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on July 31, 2020.

2. The figures of 4th quarter are balancing figures between audited figures in respect of full financial year and published year-to-date up to third quarter of the current financial year.


3. Due to losses incurred by the company during the financial year ended on March 31, 2020, no dividend has been recommended by the Board of Directors.

4. In terms of the Ind AS, there is only one reportable segment i.e. Textile Segment.


5. Effective from April 1, 2019, the Company adopted Ind-AS 116 -Leases, using the Modified retrospective Approach. The effect on adoption ol" Ind-AS 116 is insignificant on these financial statements.

6. The equity shares of the Company are listed at National Stock Exchange India Limited (NSE) under Scrip Code ALPSINDUS-EQ and Bombay Stock Exchange Limited (BSE) under Scrip Code 530715/ALPSIND, in terms of the resolution passed by the Board of Directors of the Company at their meeting held on May 30, 201 6, and in pursuant to Regulations 6 and 7 of the SEB1 (Delisting of Equity Shares) Regulation 2009, as amended from time to time, the Company has submitted with Bombay Stock Exchange Limited an application dated 9.6.201 6 for Voluntary Delisting of its 391 14100 Equity Shares from their platform which is still pending with them. The company has filled the Writ Petition before Allahabad High Court for necessary directions in this regard which is pending adjudication. Due to non payment of annul listing fee, BSE had frozen the demat accounts of promoters and. their group which upon payment of fee under protest has been dc-frozen.


7. During earlier year, the lenders having more than 83% of the secured debts of the Company revoked their consent to the DRS/ settlement scheme circulated by erstwhile Hon'ble B1FR, interiliac containing the restructuring of the debts of the Company, which was partly implemented. The Company objected to the said revocation of consent being unjustified and beyond terms of the scheme and further submitted an offer for settlement. M/s Edelweiss Assets Reconstruction Company Ltd., (presently holding more than 98% of the total secured debt of the Company) (EARC) in. order to recover its dues from the Company has also filed an Original Application before Debts Recovery Tribunal, Lucknow Bench, which application is pending adjudication. In addition to above EARC has under the provisions of SARFAESI auctioned properties located at 58/1, Site IV Industrial Area, Sahibabad, Ghaziabad (U.P.), B-2, Loni Road, industrial Area., Ghaziabad (UP) and All that Plant & Machineries lying at 1 A, Sec,-10, HE, SIDCUL, Hand war and Lenders having first pari passu charge over these assets have adjusted their dues with the realination made thereof. EARC has also taken over the symbolic possession of 3 properties Viz. Leasehold Land, Building and Plant &. Machineries lying at Plot nos. A-2 &, A-3, Loni Road, Industrial Area, Ghaziabad (UP) and 1A, See. -10, 11E, SIDCUL, Haridwar under section 13(4) of the SARFAESI Act and issued a sale notice under Rule 8(6) and Rule 6(2) of the Security Interest (Enforcement) Rules, 2002. The adjustments as may arise on account of further action of lenders, if any, shall be made in the books of account, in the year upon receipt of information from them. The Company once again submitted a revised settlement/restructuring proposal with lenders which is under active consideration with them. Management of the Company expects to get the revised settlement/restructuring proposal approved from lenders and accordingly, the Company would be meeting its revised financial obligations. Accordingly, the financial statements of the Company for the quarter and period ended on March 31, 2020 have been prepared on going concern assumption basis arid continue with the earlier consented restructuring scheme. The impact, arising upon approval of the revised settlement/re structuring proposal, will be given effect in the financial statements of the year of final settlement with lenders.
Hence, no provision considered necessary' in these accounts towards interest. on entire secured loans & part of principal secured loan, waived earlier, and impact on retained earnings thereon totaling to Rs. 14696&.65 Lakh as per provisions of earlier consented scheme, which the Company continues to give effect till the time revised settlement/re structuring proposal is finally approved by its lenders.

8. In compliance of SEBI Circular dated. May 20, 2020, the management has assessed the impact of Covid-19 Pandemic situation on the financial results for the year ended March 31, 2020 and found that there is no material impact on the assets & liabilities and profit & loss account for the year ended on 31.3.2020. However in view of the continuation of Covid- 19 pandemic situation, the impact on the future business and assets & liabilities of the company could not be assessed presently.

9. Mr. Krishan Kumar Agarwal, (DIN:00139252), the Promoter Director & Non Executive Chairman, informed to the Board that do to health reasons he is not in a position to reasons he is not a position to continue regular Director and Non Executive Chairman of the company and submitted his resignation dated 31.7.2020. After considering the request, the members of the board has accepted his resignation with immediate effect i.e. July 31, 2020. Accordingly he ceased to be director and non Executive Chairman of the Company w,e.f. July 31, 2020.


10. In the previous Audit Report dated 30.05.2019 on the audited financial statements of the company for previous financial year ended on March 31, 2019, the auditors have given the following qualification:
"Refer tip note no. 38 to the notes on accounts, (he Company has not provided for its liability towards interest & pan of principal loan, waived earlier, and impact of retained earnings in terms of draft rehabilitation scheme and now revoked by its consented, tenders amounting to Rs 133933.35 Lakh accordingly the loss for the gear and loan liability would have been increased and shareholder's fund would have been reduced to that extent *
In case, company would have considered this as liability, its standalone net profit for the current quarter ending on 31.3.2020 would have been a loss of Rs. 153159,31 Lakh and loss for the year ended on 31,3.2020 would have been Rs. 158476.23 lakh [consolidated net profit for the quarter on 31.3.2020 would have a loss of rs. 152897,66 lakh and loss for the year ended on 31.3,2020 would have been Rs. 158219,22 lakh} as against already stated standalone net Loss for the quarter ended on 3!.3.2020 of Rs, 6192.66 lakh and net loss for the year ended on 313.2020 Rs. 11509.58 lakh (consolidated net loss for the current quarter ended on 31.3.2020 Rs. 5931.01 lakh and net loss for the year ended on 31,3.2020 Rs. 11252.57 lakh and the accumulated loss and loan liabilities at the end of the quarter and year ended on March 31, 2020 would have been higher by Rs. 146966.65 lakh.
The management's view is detailed in para 7 above.. The impact, if any, of the revised settlement/restructuring which is under active consideration with the lenders, will be given effect in the financial statements of the year of final settlement with them.

11. The winding up petition u/s 433 of the Companies Act, 1956 filed by the Kotak Mahindra Rank against I he Company is under consideration of the Honble Allahabad High
Court as on date.