MIC Electronics Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2019

1.Corporate Insolvency Resolution Process (CIRP) has been initiated respect of MIC Electronics Ltd ("company) under the provisions of the Insolvency and Bankrucpy Code, 2016 (Code) by an order of the National Company Law Trubinal (NCLT); Hyderabad with effect from I3th March 2018 As per Section 17 of the Code, appointed Mr.N.Prabhakar as the interim Resolution Professional (IRP) In terms of IBC. Mr.N Prabhakar was subsequently confirmed by tho committee of creditors (CoC) as the Resolution Professional (RP)
Accordingly, RP took control of the management and operations of the company As the powers d the Board of Directors have been suspended, the above results have not been adopted by the Board of Directors However, tne same have been reviewed and signed by Shri L N Malleswara Rao Director of the Company .These financial Staementshave there after been taken on record by the RP on 30th May 2019 for filing with Stock Exchanges.

2.As part of CIRP Process the Resolution professional has automated tho Resolution Plan approved by Committee of Creditor (CoC) to Honourable NCLT Hyderabad Bench .The Resolution plan yet to be approved by the Horwabte NCLT Hyderabad

3.The statutory auditors have expressed disclaimer of opinion for the year ended 31st March 2019 in respect of the following matters.

a During the year the company has incurred a ret loss of Rs27.48 crores resulting Into accumulated losses of Rs 155. 46 crores as at 31st March 2019 and erosion of its rvotworth The company has obligations towards fund based borrowings aggregating to Rs 182.14 crores As part of CIRP Process, the resolution ptan approved by Coc was submitted to Hon’ble NCLT Hyderabad Bench and is currently under process In the opinon of the management. resolution and revival of the company is possible is forseeabte future accordingly. in view of the ongoing CIRP. above results have been prepared on the basis that the company is a going concern

B. The company has certain trace receivables , security deposits , loans and advances, ether financial and current assets aggregating to Rs 34. 59 crores The management or the company is confident of recovery of the aforesaid dues Confirmation of balances could not be obtained as at 31st March 2019 tor various trade recervables. trade payables though the management has requested for confirmation of balances. The management has already made provision for doubtful receivables / advances and believes that no material adjustments would be required In books of accounts upon receipt of these confirmations.

c Since, the company is under CIRP, due to the shortage of resources , physical verification of inventories ana as valuation could not bo done as on 31 st March 2019 aggrejating to Rs.49 88 crores. However, as part of CIRP, physical verification of inventories and its valuation has beer done during the financial yeai 2017-18 by external valuers and no matenal movements to the inventories have taken place during the financial year 2018-19 due to lower level of operations of the company Hence, the company is of the opinion that there will be no material changes to the valuation of inventories asi on 31 st March 2019

d Physical verification of fixed assets aggregating to Rs 83.96 crores (WDV as on 31 March 2019) has been carried out by tne management However duo to the ongoing CIRP and the constraint of resources, the company is still in the process of reconciliation of properties as per verification reports with fixed assets records

4.While calcutating diluted EPS, outstanding 3,00,00,000 convertible share warrants issued on preferential basis have been considered

5.The consolidated financial results include the unaudited financial results of the wholly owned subsidiaries . M/s MIC Green Energy Solutions Pvt Ltd and M/s MIC Electronic Inc


6.Management reviewed the deferred tax assets liabilitles on temporary differences between the tax base & assets and liabilities and their carrying amounts for the financial reporting purpose at reporting date However as the company under CIRP. there s virtual uncertainity of taxable profits in near future and availability ol deferred tax assets to be set off Accordingly, the deferred tax (net assets) tor the reporting period i.e. April 01,2018 to March 31,2019 have not been considered

7.The Company has only one segment i.e. LED Products.

8.The interest on debt for the quarter ended March 31, 2019 has not been charged to tne statement of profit anc toss since the company is under CIRP process and the claimms along with interestt have been considered as on Insolvency commencement date i e.,March 13, 2018

9.The company has got a foreign exchange loss of Rs.3.04 crores for the six months ended 30.09.18 However, the company has got foreign exchange gain of Rs 1.39 acres for the next half year ended 31.03.19 resulting in a net foreign exchange loss of Rs 1.65 crores for the year ended 31 03.19 These figures have been regrouped/rearranged in the quarterty financials to show the net Impact

10.The statement includes results to the quarter enaed 31st March 2019 and 31st March 2018 being the balancing figure between the audited figures in respect of the financial year and previous financial year and the previous figures upto 3rd quarter of the current financial year and previous financial year respectively

11.Exceptional items comprises of depletion in value of inventories

12.Figures have been regrouped or rearranged whereever necessary

L N Malleswara Rao
Director