Vardhman Polytex Limited

An Oswal Group® Company

Name :- Vicky Kumar

Roll no :-A 11
Reg. no:- 11914966
Sec:- Q 1907
About the company

v BOARD OF DIRECTORS
Mr. Adish Oswal - Chairman & Managing Director
Mrs. Manju Oswal - Director
Mr. Harpal Singh - Independent Director
Mrs. Aarti Sharma - Independent Director

CHIEF FINANCIAL OFFICER

Mr. Apjit Arora
 Content

Company overview and role

Balance sheet

Cash Flow Statement

Profit and loss statement

Vision of the Company

Mission of the Comapany

Conclusion
COMPANY OVERVIEW & ROLE
Vardhman Polytex Limited (Oswal Group) manufactures yarns that are synonymous
with the highest quality. With prominent position in the domestic and international
market, its range of Cotton Yarns (Carded, Combed, Organic, BCI), Cotton Polyester
Yarns and Value Added Yarns (Grey and Dyed) in variable counts, hold a place of
pride in the industry. Using the finest raw materials and cutting edge technology for
production, each yarn confirms to highest global standards. Leader in the field, Oswal
Group puts forth fresh products through constant innovation and synchronization
with trends.
Segment-wise/Product-wise Performance
The company operates in one segment only i.e Textile and product-wise sale details are as
under:
` in Lakh

Sale of products 2018-19 2017-18

Grey yarn 63,094.37 42,306.03
Dyed yarn 8,978.73 10,094.87
Garments 333.89 659.80
Waste sale 7,087.08 5,124.00
Trading goods (textile ) 1,468.21 3,504.17
Total 80,962.28 61,688.88

Resource utilization:

The gross fixed assets as at 31st March, 2019 were ` 60,807.35 lakh against `
61,280.61 lakh in the previous year. The Net block of assets as on 31st March, 2019
was ` 20,612.96 lakh as against ` 22,364.11 lakh in the previous year.
Inventory levels as at 31st March, 2019 were ` 2061.37 lakh as against ` 4,256.88 lakh
in the previous year. The trade receivable as at 31st March, 2019 were ` 854.77 lakh
as against ` 2750.75 lakh in the previous year.
Financial condition & liquidity:

Particulars 2018-19 2017-18

Cash & cash equivalents
Beginning of the year 168.25 702.51
End of the year 27.14 168.25
Net cash provided(used) by:
Operating Activities 6345.90 4942.29
Investing Activities (84.54) (516.78)
Financial Activities (6402.47) (4959.77)

Human Resources Development:

The total number of employees as on 31st March, 2019 were 3150. The industrial
relations in all units of the Company continue to be cordial. Your Company believes
that its employees are its core strength and development of people is a key priority for
the organization to drive business objectives and goals. Robust HR policies are in
place which enables building a stronger performance culture.

Health & Safety Measures:

As a conscientious and caring employer, the Company actively pursues safety and
health measures continuously. We believe in good health of our employees. Modern
occupational health and medical services are accessible to all employees through well
equipped occupational health centers at all manufacturing units.
The Company has always considered safety as one of its key focus areas and strives to
make continuous improvement on this front. The Company is committed to
complying with all relevant regulations and ensure safer plants by conducting safety
audits, risk assessments and periodic safety awareness campaigns and training to
employees.

Significant key financial ratios

Particulars FY 2018- FY 2017-

19 18
i) Debtors Turnover 4.38 17.95
ii) Inventory Turnover 9.30 25.22
iii) Interest Coverage Ratio -0.24 -0.91
iv) Current Ratio 0.08 0.17
v) Debt Equity Ratio -0.02 -0.42
vi) Operating Profit Margin (%) -1.79 -9.65
vii) Net Profit Margin (%) -9.25 -68.86

Return on Net Worth

Particulars FY 2018- FY 2017-

19 18
Return on Net Worth 0.19 1.34

Stock Market Data

The month-wise highest, lowest and closing stock prices vis-à-vis BSE Sensex
and NSE Nifty during the financial year 2018- 19 are given below:-

FINANCIAL YEAR VPL SHARE PRICE AT BSE SENSEX VPL SHARE PRICE AT NSE NIFTY
2018-19 (MONTH) BSE NSE
 HIGH LOW CLOSE HIGH LOW CLOSE HIGH LOW CLOSE HIGH LOW CLOSE

APRIL 24.00 17.20 19.10 35213.30 32972.56 35160.36 23.00 18.00 19.45 10759.00 10111.30 10739.35

MAY 22.35 17.10 18.40 35993.53 34302.89 35322.38 21.80 17.20 18.55 10929.20 10417.80 10736.15

JUNE 17.70 11.10 13.10 35877.41 34784.68 35423.48 18.20 12.10 12.75 10893.25 10550.90 10714.30

JULY 19.90 11.51 14.75 37644.59 35106.57 37606.58 19.95 11.75 14.85 11366.00 10604.65 11356.50

AUGUST 15.26 13.05 13.51 38989.65 37128.99 38645.07 15.30 12.60 13.65 11760.20 11234.95 11680.50

SEPTEMBER 14.79 10.20 10.45 38934.35 35985.63 36227.14 14.75 10.50 10.70 11751.80 10850.30 10930.45

OCTOBER 11.57 9.11 10.17 36616.64 33291.58 34442.05 11.90 9.75 10.45 11035.65 10004.55 10386.60

NOVEMBER 16.95 10.05 12.36 36389.22 34303.38 36194.30 16.65 10.45 12.05 10922.45 10341.90 10876.75

DECEMBER 12.90 10.15 11.33 36554.99 34426.29 36068.33 12.85 10.65 11.35 10985.15 10333.85 10862.55

JANUARY 12.49 10.07 10.39 36701.03 35375.51 36256.69 12.10 9.95 10.50 10987.45 10583.65 10830.95

FEBRUARY 11.00 8.11 9.53 37172.18 35287.16 35867.44 11.20 8.65 9.60 11118.10 10585.65 10792.50

MARCH 10.60 8.30 9.01 38748.54 35926.94 38672.91 10.65 8.95 9.10 11630.35 10817.00 11623.90

Distribution of Shareholding as on 31st March, 2019

Range Shareholders Shares

(No. of shares) Numbers %age Numbers %age

Upto - 500 14323 83.46 2163060 9.70

501 - 1000 1431 8.34 1170691 5.25

1001 - 5000 1183 6.89 2565964 11.51

5001 - 10000 138 0.80 986500 4.43

10001 - 50000 67 0.39 1353692 6.07

50001 & Above 19 0.11 14051050 63.04

Total 17161 100.00 2,22,90,957 100.00

 BALANCE SHEET AS AT 31ST MARCH 2019
(` in Lakh)
Note No. As at As at
31 March 2019 31 March 2018
Assets
1 Non current assets
a) Property, plant and equipment 2 20,607.00 22,357.42
b) Investment Property 2(a) 495.22 505.06
c) Capital work-in-progress 2(b) - 311.39
d) Other intangible assets 2 5.96 6.69
e) Financial assets
i) Investments 3 23.15 23.15
ii) Loans 4 - -
iii) Other financial assets 5 - -
f) Trade receivable 6 115.99 279.23
g) Deferred tax assets (net) 7 5,016.18 5,016.18
h) Other non-current assets 8 671.71 929.06
--------------------------- ---------------------------
Total Non Current Assets 2 6,9 3 5 .2 1 29 ,4 2 8 .1 8
--- ------ -- --------- - --- ----- -- --------- -
2 Current assets
a) Inventories 9 2,061.37 4,256.88
b) Financial assets
i) Trade and other receivables 10 854.77 2,750.75
ii) Cash and cash equivalents 11 19.41 39.72
iii) Bank balances other than above 12 7.73 128.53
iv) Loans 13 12.14 16.58
v) Other financial assets 14 28.92 277.89
c) Current tax assets 15 276.29 340.82
d) Other current assets 16 2,180.78 2,297.38
--------------------------- ---------------------------
Total Current Assets 5 ,4 4 1 .4 1 10 ,1 0 8 .5 5
---------------------------- --- ----- -- --------- -
TOTAL ASSETS 32,376.62 39,536.73
=========== ===========
II EQUITY AND LIABILITIES
1 EQUITY
a) Equity share capital 17 2,232.54 2,232.54
b) Other equity 18 (41,401.84) (33,912.46)
--------------------------- ---------------------------
Total Equity (39,169.30) (31,679.92)
--------------------------- ---------------------------
2 Non-current liabilities
a) Financial liabilities
i) Borrowings 19 656.00 13,223.84
b) Long term provisions 20 57.47 48.97
c) Other non-current liabilities 21 0.53 0.53
--------------------------- ---------------------------
Total Non Current Liabilities 7 1 4 .0 0 13 ,2 7 3 .3 4
--------------- --- -------- -- --- ----- -- --------- -
3 Current liabilities
a) Financial liabilities
i) Borrowings 22 43,874.31 24,532.20
ii) Trade payables 23
- Total Outstanding dues of Micro - -
Entreprises and Small Enterprises
- Total Outstanding dues of Creditors other than 4,422.51 4,076.71
Micro Entreprises and Small Enterprises
iii) Other financial liabilities 24 22,029.58 28,251.30
b) Other current liabilities 25 262.57 269.36
c) Short term provisions 26 242.95 813.74
--------------------------- ---------------------------
Total Current Liabilities 7 0,8 3 1 .9 2 57 ,9 4 3 .3 1
--- ------ -- --------- - --- ----- -- --------- -
TOTAL EQUITY AND LIABILITIES 32,376.62 39,536.73
=========== ===========
Significant accounting policies 1
The accompanying notes form an integral part of these financial statements
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH
2019
(` in Lakh)
Particulars Note For the year ended For the year ended
No. 31 March 2019 31 March 2018
Revenue
Revenue from operations 27 81,055.79 62,135.95
Other incomes 28 287.33 420.46
--------------------------- ---------------------------
Total Income (I) 81,343.12 62,556.40
--------------------------- ---------------------------
Expenses
Cost of material consumed 29 58,748.97 42,181.93
Purchase of traded goods 30 2,185.47 4,310.64
Changes in inventories of finished goods 31 880.24 2,243.15
Excise duty on sale of goods - 0.08
Employee benefit expense 32 5,706.95 4,794.58
Finance costs 33 5,974.75 6,566.95
Depreciation and amortization expense 2 1,831.17 2,052.10
Other expenses 34 13,441.90 12,918.78
--------------------------- ---------------------------
Total expenses (II) 88,769.45 75,068.21
--------------------------- ---------------------------
Profit before exceptional items and tax (I-II = III) (7,426.33) (12,511.80)
Exceptional items (IV) 35 - 29,876.50
Profit before tax (III - IV = V) (7,426.33) (42,388.30)
Tax expense (VI)
Current tax - -
Deferred tax (credit) - -
--------------------------- ---------------------------
Profit for the period from continuing operations After Tax (V-VI = VII) (7,426.33) (42,388.30)
=========== ===========
Other Comprehensive Income (VIII)
Items that will not be reclassified to profit or loss
(i) Remeasurement of defined benefit obligation (63.05) (34.19)
Total Comprehensive Income for the period (VII + VIII = IX) --------------------------- ---------------------------
(Comprising Profit (Loss) and Other Comprehensive income for the period) (7489.38) (42422.49)
=========== ===========
Earnings per equity share 37
Basic (33.32) (190.16)
Diluted (33.32) (190.16)
2

The accompanying notes form an integral part of these financial statements

CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2019
(` in Lakh)
Particulars For the year ended For the year ended
31 March 2019 31 March 2018
Revenue
A. Cash flow from Operating Activities:
Net profit before tax (7,426.33) (42,388.30)
Adjustments for:
Add:
Depreciation and amortisation 1,831.17 2,052.10
Finance costs 5,974.75 6,566.95
Foreign currency monetary item translation difference (net) 36.40 -
Sundry balance written off 22.79 16.94
Provision for doubtful advances 152.13 181.39
Provision for Subsidiary - 29,876.50
Provision for Miscellaneous Recoverable 104.86 418.90
Less:
Interest income (46.27) (116.75)
Dividend income - -
Net Profit on sale / discarding of fixed assets (2.46) (15.36)
--------------------------- ---------------------------
Operating Profit before Working Capital changes 647.04 (3,407.63)
Adjustments for changes in Working Capital :
- Increase/(decrease) in trade payables and other Liabilties 902.52 68.38
- (Increase)/decrease in trade receivables and other receivables 2,665.35 4,869.95
- (Increase)/decrease in inventories 2,195.51 3,486.23
--------------------------- ---------------------------
Cash generated from Operating Activities 6,410.43 5,016.94
- Taxes (paid) (net of tax deducted at source) (64.53) (74.65)
--------------------------- ---------------------------
Net cash (used in)/ generated from Operating Activities 6,345.90 4,942.29
--------------------------- ---------------------------
B. Cash flow from Investing Activities:
Purchase of fixed assets (187.24) (711.52)
Sale of fixed assets 56.44 72.21
Reduction in value of investments - 5.78
Interest received 46.27 116.75
--------------------------- ---------------------------
Net Cash from Investing Activities (84.54) (516.78)
--------------------------- ---------------------------
C. Cash flow from Financing Activities:
Proceeds from Short borrowings 19,342.12 5,882.51
Repayment of long term borrowings (19,526.19) (3,198.08)
Interest paid (6,218.39) (7,644.20)
--------------------------- ---------------------------
Net Cash from Financing Activities (6,402.47) (4,959.77)
--------------------------- ---------------------------
Net Increase/(Decrease) in cash & cash equivalents (141.11) (534.26)
=========== ===========
Cash and cash equivalents as at 1st April (Opening Balance) 168.25 702.51
--------------------------- ---------------------------
Cash and cash equivalents as at 31st March (Closing Balance) 27.14 168.25
--------------------------- ---------------------------
Cash and cash equivalents comprise
Cash & cheques in hand 10.36 12.76
Balance with banks 16.78 155.49
--------------------------- ---------------------------
27.14 168.25
--------------------------- ---------------------------
Notes :
The accompanying notes are an integral part of these financial statements
 Vision of the company

We endeavour to be creative and innovative in our response to problems ,processes and

solutions. We work with long term perspective and deal with or ride through short term
situations with objectivity and right understanding even when the organization has to
bear the sufferings /pain.

Mission of the company

We seek to achieve customer delight through excellence in manufacturing and customer

service, based on creative combination of state-of-the-art technology and human
resources. We are responsible corporate citizens. Rooted in Values, Creating World
Class Textiles

Conclusion
In our opinion, to the best of our information and according to the explanations given
to us, the Company has, in all material respects, an adequate internal financial controls
system over financial reporting and such internal financial controls over financial
reporting were operating effectively as at March 31, 2019, based on the internal control
over financial reporting criteria established by the Company considering the essential
components of internal control stated in the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting issued by the Institute of Chartered Accountants of
India

Thank You !