sarla performance fibers ltd. 304, arcadia, 195, nariman
TRANSCRIPT
(O)+91 22 2283 4116/6632 4038 (O)+91 22 4032 2786-4032 2795
(F) +91 22 2285 1728 [email protected] ;
CIN : L31909DN1993PLCO00056 www.sarlafibers.com
Sarla Performance Fibers Ltd. 304, Arcadia, 195, Nariman Point, Mumbai 400021 Gs A RLA
25" July, 2020
SPFL / 2020-2021
BSE Limited National Stock Exchange of India Limited
1st Floor, New Trading Ring, Phiroze Exchange Plaza, 5 Floor, Bandra Kurla Jeejeebhoy Towers, Dalal Street, Fort, Complex, Bandra (East),
Mumbai — 400001 Mumbai — 400051 Security Code: 526885 Symbol: SARLAPOLY
Dear Sir/ Madam,
Sub: Revision in Standalone and Consolidated Un-audited Financial Result of the
Company submitted for the quarter ended 30" June, 2020
This is with reference to our letter bearing number SPFL/2020-2021 dated 24" July, 2020
submitted for the outcome of Board Meeting of the Company held on 24" July, 2020.
There was some technical error in Excel file, hence we are submitted herewith revised Un-
audited Financial results of the Company on Standalone and Consolidated basis for the
quarter ended 30" June, 2020. This is to confirm that due to such revision there is no impact
on the revenue and profit of the Company. “
We request you to accept the above changes in the Standalone and Consolidated Un-audited
financial Result of the Company for the quarter ended 30" June, 2020.
We are enclosing herewith the Followings:
1. The Un-audited Financial Results of the Company on Standalone and Consolidated
basis for the quarter ended 30" June, 2020 along with Limited Review Report.
2. The Statement of Impact of Auditor Qualification for Un-audited Financial Results on
Standalone and Consolidated.
Thanking you.
Yours faithfully,
For Sarla Performance Fibers Limited
SSsVrky
Mahendra Sheth
Chief Financial Officer and Company Secretary
Encl.: As above
Regd. Off. & Works 1: Works 2: Vapi Works: Works 3 :
Survey No. 59/1/4. Survey No. 64/2/3/4,61/1,61/2,62/5,63/5,63/7, Shed No. A1/48, Survey No. 213/P,
Amli Piparia Industrial Estate, Amli Piparia Industrial Estate, 100 Sheds Area, Plot No. 11 & 12, ,
Silvassa - 396 230, Silvassa - 396 230, GIDC, Vapi - 396 195 Dadra - 396 191, U.T. Dadra & Nagar Haveli U.T. Dadra & Nagar Haveli (Gujarat) U.T. Dadra & Nagar Haveli.
s arain Chambers, oor, M. G. Roa file Parle umbai - y
CN K & Associates LLP a ee i Aas ls Wats Hy SERGE AO
Chartered Accountants Mistry Bhavan, 3rd Floor, Dinshaw Vachha Road, Churchgate, Mumbai - 400 020.
Tel.: +91-22-6623 0600
Independent Auditor’s Review Report on the Quarterly Unaudited Quarterly Consolidated
financial results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015
To
The Board of Directors
Sarla Performance Fibers Limited
1. We have reviewed the accompanying Statement of Unaudited Consolidated Financial
Results of Sarla Performance Fibers Limited (“the Holding Company”) and its subsidiaries
(the Holding Company and its subsidiaries together referred to as “the Group”) for the
quarter ended 30" June, 2020, together with the notes thereon attached herewith, being
submitted by the Holding Company pursuant to the requirements of Regulation 33 of the
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended),
(‘Listing Regulations’).
2. This Statement which is the responsibility of the Holding Company’s Management and
approved by the Holding Company’s Board of Directors, has been prepared in accordance
with the recognition and measurement principles laid down in the Indian Accounting
Standard 34 “Interim Financial Reporting” (‘Ind AS 34’), prescribed under Section 133 of
the Companies Act, 2013, (‘the Act’) read with relevant rules issued thereunder and other
accounting principles generally accepted in India and in compliance with Regulation 33 of
the Listing Regulations. Our responsibility is to issue conclusion on the Statement based
on our review.
3. We conducted our review of the Statement in accordance with the Standard on Review
Engagement (SRE) 2410, “Review of Interim Financial information performed by the
Independent Auditor of the Entity”, issued by the Institute of Chartered Accountants of
India. This Standard requires that we plan and perform the review to obtain moderate
assurance as to whether the Statement is free of material misstatement. A review is
limited primarily to inquiries of Holding Company personnel and analytical procedures
applied to financial data and thus provides less assurance than an audit. Accordingly, we
do not express an audit opinion.
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We also performed procedures in accordance with the circular issued by the SEBI under
Regulation 33(8) of the SEBI Listing Regulations, 2015, as amended, to the extent
applicable.
The Statement includes the results of the subsidiaries as mentioned in Annexure to the
Report.
Basis for Qualified opinion:
Sarlaflex, Inc., the wholly owned subsidiary having total assets of Rs.15,993 lakhs has
suspended manufacturing operations since December, 2017 and has a negative net worth
as on 30% June, 2020. These conditions raise substantial doubt about its ability to
continue as a going concern.
In the absence of any impairment testing by management for these assets during the
year, we are unable to comment on the impact of the said impairment, if any, on
consolidated financial results.
Our report for previous quarter was also qualified for the same.
Based on our review conducted and procedures performed as stated in paragraph 3
above except for the possible effect of the matter described in the paragraph 5 above,
nothing has come to our attention that causes us to believe that the accompanying
Statement, prepared in accordance with the applicable Indian Accounting Standards (Ind
AS), prescribed under Section 133 of the Act read with relevant rules issued there under
and other recognized accounting practices and policies, has not disclosed the information
required to be disclosed in terms of Regulation 33 of the Listing Regulations, 2015
including the manner in which it is to be disclosed, or that it contains any material
misstatement.
Emphasis of Matter:
The investment made by the wholly owned subsidiary of the group M/s. Sarla Overseas
Holdings Limited (SOHL) in three Joint Ventures are not consolidated on account of non-
resolution of disputes, or non-receipt of financial statements for the year ended 30" June,
2020. Though these investments have been tested for impairment and necessary
provisions have been made in FY 2017-18 on transition to Ind AS, we are unable to
comment about impact of the same on the Consolidated financial results.
Our opinion is not modified in respect of this matter.
» PP)
For CN K & Associates LLP
Chartered Accountants
Himanshu Kishnadwala
Partner
Membership No. 37391
UDIN: 20037391AAAADU9785
Mumbai
Date: 24* July, 2020
Annexure to the Limited Review Report:
Subsidiaries (held directly)
a. Sarla Overseas Holding Limited
b. Sarlaflex Inc
Subsidiaries (held indirectly)
a. Sarla Europe, Lda
b. Sarlaflex LLC
c. Sarla Estate LLC
d. Sarla Leverage Lender LLC
Joint Ventures (held indirectly)
a. Savitex SA De C. V. Honduras;
b. MRK SA De C. V. Honduras;
c. Sarla Tekstil Filament Sanayi Ticaret A.S.
CN K & Associates LLP tain ely Be Hcy M. G. Road, Vile Parle (E), Mumbai - 400 057.
Chartered Accountants Mistry Bhavan, 3rd Floor, Dinshaw Vachha Road, Churchgate, Mumbai - 400 020.
Tel.: +91-22-6623 0600
Independent Auditor’s Review Report on the Quarterly Unaudited Standalone Financial
Results of the Company pursuant to the Regulation 33 of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015, as amended
To
The Board of Directors
Sarla Performance Fibers Limited
1. We have reviewed the accompanying statement of Unaudited Standalone Financial
Results of Sarla Performance Fibers Limited (“the Company”) for the quarter ended 30%
June, 2020 (the “Statement”) together with the notes thereon attached herewith, being
submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended),
(‘Listing Regulations’).
2. This Statement, which is the responsibility of the Company's Management and approved
by the Company's Board of Directors, has been prepared in accordance with the
recognition and measurement principles laid down in Indian Accounting Standard 34
“Interim Financial Reporting” (‘Ind AS 34'), prescribed under Section 133 of the
Companies Act, 2013 (‘the Act') read with relevant rules issued thereunder and other
accounting principles generally accepted in India and in compliance with Regulation 33 of
the Listing Regulations. Our responsibility is to issue a report on the Statement based on
our review.
3. | We conducted our review of the Statement in accordance with the Standard on Review
Engagements (SRE) 2410, “Review of Interim Financial Information Performed by the
Independent Auditor of the Entity” issued by the Institute of Chartered Accountants of
India. This standard requires that we plan and perform the review to obtain moderate
assurance as to whether the Statement is free of material misstatement. A review is
limited primarily to inquiries of the Company personnel and analytical procedures applied
to financial data and thus provides less assurance than an audit. We have not performed
an audit and accordingly, we do not express an audit opinion.
4. Basis for Qualified opinion:
As on 30% June, 2020, the Company has an exposure to its Wholly Owned Subsidiary
‘Sarlaflex, Inc.’ of Rs.8,670 lakhs towards investments in equity, preference shares and
unsecured loans. The Company also has indirect exposure in Sarlaflex, Inc. by way of
unsecured loans amounting to Rs. 6,804 lakhs through its wholly owned subsidiary, Sarla
Overseas Holdings Limited.
Sarlaflex, Inc. has suspended manufacturing operations since December, 2017 and has a
negative net worth as on 30* June, 2020. These conditions raise substantial doubt about
its ability to continue as a going concern.
In the absence of any impairment testing by management during the period, we are
unable to comment on the impact of the said impairment, if any, on standalone financial
results.
Our report for the previous quarter was also modified on above matters.
5: Based on our review conducted as above, except for the possible effect of the matters
described in the paragraph 4 above, nothing has come to our attention that causes us to
believe that the accompanying Statement, prepared in accordance with the recognition
and measurement principles laid down in aforesaid Indian Accounting Standards (‘Ind
AS’), prescribed under Section 133 of the Act read with relevant rules issued thereunder
and other recognized accounting practices and policies, has not disclosed the information
required to be disclosed in terms of Regulation 33 of the Listing Regulations, including the
manner in which it is to be disclosed, or that it contains any material misstatement.
For CN K & Associates LLP
Chartered Accountants
Firm Registration No. 101961W/W-100036
Himanshu Kishnadwala
Partner
Membership No. 37391
UDIN: 20037391AAAADT5750
Place: Mumbai
Date: 24* July, 2020
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Statement on Impact of Audit Qualifications (for Audit report with modified opinion) submitted along-Quarterly Results - Consolidated
Statement on Impact of Audit Qual: ns for the Ourter ended June 30, 2020
[See Regulation 33 / 52 of the SEBI (LODR) (Amendment) Regulations, 2016]
1 Sl. Reviewed Figures (as reported before adjusting | Adjusted Figures (reviewed figures after adjusting for
“| No. for qualifications) qualifications)
Particulars 1 Turnover / Total income 2,835 2,835
2 Total Expenditure 2,795 2,795
3 Net Profit/(Loss) 18 18
4 Earnings Per Share 0.02 0.02
5 Total Assets 62,872 62,872
6 Total Liabilities 30,995, 30,995
z Net Worth 31,877 31,877
[Any other financial item(s)
(as felt appropriate by the
8 management) . |Audit Qualification (each audit qualification separately):
a. Details of Audit Qualification:- Sarlaflex, Inc., the wholly owned subsidiary having total assets of Rs.15,993 lakhs has suspended
manufacturing operations since December, 2017 and has a negative net worth as on 30th June, 2020. These conditions raise substantial doubt
about its ability to continue as a going concern.
In the absence of any impairment testing by management for these assets during the year, we are unable to comment on the impact of the
said impairment, if any, on consolidated financial results.
b. Type of Audit Qualification : Qualified Opinion
c. Frequency of qualification: Repeat
d. For Audit Qualification(s) where the impact is quantified by the auditor, Management's Views: Not applicable
e. _ For Audit Qualification(s) where the impact is not quantified by the auditor:
(i) Management's estimation on the impact of audit qualification:
(ii) If management is unable to estimate the impact, reasons for the same:- The auditors have in their report on the
standalone and consolidated results, modified their opinion in respect of not testing for impairment of investments/assets of
the company’s Wholly owned Subsidiary Sarlaflex, Inc. The management is exploring all the options to resolve the matter and
hai i i isis ould be made.
(iii) Auditors' Comments on (i) or (ii) above:- None
CEO/Managing Director
CFO
Audit Committee Chairman
Statutory Auditor
Place: Mumbai
Date: 24th July, 2020
Statement on Impact of Audit Qualifications (for Audit report with modified opinion) submitted along-with Quarterly Results - Standalone
Statement on Impact of Audit Qualifications for the Quarter ended June 30, 2020
[See Regulation 33 / 52 of the SEBI (LODR) (Amendment) Regulations, 2016]
\ Sl. Reviewed Figures (as reported before adjusting | Adjusted Figures (reviewed figures after adjusting for
“| No. for qualifications) qualifications)
Particulars 1 Turnover / Total income 2,839 2,839
2 Total Expenditure 2,730 2,730
3 Net Profit/(Loss) 86 86
4 Earnings Per Share 0.10 0.10
5 Total Assets 55,955, 55,955
6 Total Liabilities 20,638 20,638
7 Net Worth 35,318 35,318
Any other financial item(s)
(as felt appropriate by the - -
8 management)
|. |Audit Qualification (each audit qualification separately):
Details of Audit Qualification:- As on 30th June, 2020, the Company has an exposure to its Wholly Owned Subsidiary ‘Sarlaflex, Inc.’ of
Rs.8,670 lakhs towards investments in equity, preference shares and unsecured loans. The Company also has indirect exposure in Sarlaflex, Inc.
by way of unsecured loans amounting to Rs. 6,804 lakhs through its wholly owned subsidiary, Sarla Overseas Holdings Limited.
Sarlaflex, Inc. has suspended manufacturing operations since December, 2017 and has a negative net worth as on 30th June, 2020. These
conditions raise substantial doubt about its ability to continue as a going concern.
In the absence of any impairment testing by management during the period, we are unable to comment on the impact of the said impairment,
if any, on standalone financial results.
b. Type of Audit Qualification : Qualified Opinion
c. Frequency of qualification: Repeat
d. For Audit Qualification(s) where the impact is quantified by the auditor, Management's Views: Not applicable.
e. For Audit Qualification(s) where the impact is not quantified by the auditor:
(i) Management's estimation on the impact of audit qualification: (ii) If management is unable to estimate the impact, reasons for the same:- The auditors have in their report on the
standalone and consolidated results, modified their opinion in respect of not testing for impairment of investments/assets of
the company’s Wholly owned Subsidiary Sarlaflex, Inc. The management is exploring all the options to resolve the matter and
hopeful in coming months the decision would be made.