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

Notes:

1. The above results have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on 17 July 2020.

2. These financial results have been prepared in accordance with the Companies (Indian Accounting Standards) Rule, 2015 prescribed under Section 133 of the Companies Act, 2013 and other recognised accounting practices and policies to the extent applicable.

3. Due to the nature of business and common manufacturing facilities for various segments, a reasonable allocation of Capital Employed to various segments is currently not practicable.

4. Previous year's figures have been rearranged and regrouped, wherever necessary.

5. The figures for the quarter ended March 31, 2020 are the balancing figures between the audited figures in respect of full financial year and unaudited year to date figures upto the previous quarter

6. Effective 1 April 2019 (transition date), the new Indian accounting standard i.e., Ind AS 116 "Leases" became effective, The company has adopted the new standard with modified approach and recognised asset in the form of 'Right of Use Asset' (representing its right of use the leased asset over the lease term) and also liability towards present value of the balance of future lease payments for the leases. In the statement of profit and loss for the Year ended 31 March 2020, the nature of expenses in respect of operating leases has changed from lease rent in previous period to depreciation cost for the right of use asset and finance cost for interest on lease liability. Due to said change profit is decreased by `329.36 lakhs for the Year ended 31 March 2020

7. The outbreak of Coronavirus (COVID-19) pandemic globally and in India is causing significant disturbance and slowdown of economic activity. Measures taken to contain the spread of the virus, including travel bans, quarantines, social distancing, and closures of non-essential services have triggered significant disruptions to businesses, resulting in an economic slowdown. COVID19 is significantly impacting business operation of the company, by way of interruption in production, supply chain disruption, unavailability of personnel, closure/lockdown of production facilities etc. On 24 March 2020, the Government of India ordered a nationwide lockdown for 21 days which further got extended till 3 May 2020 to prevent community spread of COVID-19 in India resulting in significant reduction in economic activities. The Operations of the Company have resumed in a partial manner at manufacturing location and at stores from 8th May 2020. In assessing the recoverability of Company’s assets such as, Inventories, receivables, Security deposits etc. the Company has considered internal and external information. The Company expects to recover the carrying amount of the assets.