Spentex Industries Limited |
Regd. Off : A-60, OKHLA INDUSTRIAL AREA, PHASE - II, NEW DELHI - 110020. |
| UNAUDITED STANDALONE FINANCIAL RESULTS |
FOR THE QUARTER ENDED DECEMBER 31, 2009 |
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( Rs. in Lacs) |
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S.No.
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PARTICULARS |
3 months ended
(31/12/2009) |
Corresponding 3 months ended in the previous year (31/12/2008) |
Year to date figures for the current period ended (31/12/2009) |
Year to date figures for the previous period ended (31/12/2008) |
Previous accounting year ended (31/03/2009) |
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(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Audited) |
| 1 |
a) |
Net Sales/ Income from Operations |
18,265.15 |
15,141.51 |
52,707.06 |
52,881.64 |
68,180.06 |
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b) |
Other Operating Income |
1,067.53 |
114.91 |
2,664.88 |
408.73 |
522.95 |
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Total Income (a+b) |
19,332.68 |
15,256.42 |
55,371.94 |
53,290.37 |
68,703.01 |
| 2 |
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Expenditure |
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a) |
(Increase) / decrease in stock in trade and work in progress |
252.55 |
1,136.38 |
1,141.54 |
443.87 |
2,178.09 |
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b) |
Consumption of raw materials (including consumption of stores, spares and packing materials) |
11,915.61 |
10,105.52 |
34,580.62 |
36,236.62 |
45,834.26 |
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c) |
Purchase of traded goods |
1,101.06 |
246.10 |
2,456.18 |
2,784.08 |
3,061.34 |
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d) |
Employees cost |
1,281.10 |
1,188.94 |
3,760.34 |
3,777.25 |
4,671.78 |
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e) |
Depreciation (including amortisation) |
883.30 |
970.12 |
2,640.43 |
2,981.32 |
3,930.66 |
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f) |
Power and fuel cost |
1,831.88 |
1,439.03 |
5,143.63 |
4,541.43 |
6,061.21 |
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g) |
Other expenditure |
1,010.57 |
1,688.55 |
3,477.88 |
4,930.35 |
5,878.26 |
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Total |
18,276.07 |
16,774.64 |
53,200.62 |
55,694.72 |
71,615.60 |
| 3 |
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Profit / (Loss) from Operations before Other Income, Interest & Exceptional Items
(1-2) |
1,056.61 |
(1,518.22) |
2,171.32 |
(2,404.35) |
(2,912.59) |
| 4 |
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Other Income |
| 225.50
234.08 |
717.23 |
676.52 |
2,133.90 |
| 5 |
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Profit / (Loss) before Interest and Exceptional Items (3+4) |
| 1,282.11
(1,284.14) |
2,888.55 |
(1,727.83) |
(778.69) |
| 6 |
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Interest |
| 1,842.50
1,804.50 |
5,184.03 |
5,168.66 |
6,923.64 |
| 7 |
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Profit / (Loss) after Interest but before Exceptional Items (5-6) |
| (560.39)
(3,088.64) |
(2,295.48) |
(6,896.49) |
(7,702.33) |
| 8 |
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Exceptional Items |
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-
- |
- |
- |
- |
| 9 |
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Profit (+) / Loss (-) from Ordinary Activities before tax (7+8) |
(560.39) |
(3,088.64) |
(2,295.48) |
(6,896.49) |
(7,702.33) |
| 10 |
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Tax expense |
(2.00) |
8.88 |
0.64 |
29.99 |
37.24 |
| 11 |
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Net Profit (+) / Loss (-) from Ordinary Activities after tax (9-10) |
(558.39) |
(3,097.52) |
(2,296.12) |
(6,926.48) |
(7,739.57) |
| 12 |
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Extraordinary Items (net of tax expense) |
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-
- |
- |
- |
- |
| 13 |
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Net Profit / (Loss) for the period (11-12) |
(558.39) |
(3,097.52) |
(2,296.12) |
(6,926.48) |
(7,739.57) |
| 14 |
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Paid up Equity Share Capital (Face Value Rs. 10/-each) |
7,147.20 |
7,147.20 |
7,147.20 |
7,147.20 |
7,147.20 |
| 15 |
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Reserves excluding Revaluation Reserves as per balance sheet of previous accounting year |
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-
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- |
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75.94 |
| 16 |
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Earning Per Share (EPS) (not annualized) (Rs.)
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a)
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Basic EPS before Extraordinary items for the period and for the perivious year |
| (0.78)
| (4.33)
| (3.21)
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(9.69)
| (10.83)
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Diluted EPS before Extraordinary items for the period and for the previous year |
| (0.78)
| (4.33)
| (3.21)
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(9.69)
| (10.83)
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b)
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Basic EPS after Extraordinary items for the period and for the perivious year |
| (0.78)
| (4.33)
| (3.21)
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(9.69)
| (10.83)
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Diluted EPS after Extraordinary items for the period and for the previous year
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| (0.78)
| (4.33)
| (3.21)
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(9.69)
| (10.83)
| 17 |
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Public Shareholding |
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Number of Shares |
39,440,473 |
39,440,473 |
39,440,473 |
39,440,473 |
39,440,473 |
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Percentage of Shareholding |
55.18% |
55.18% |
55.18% |
55.18% |
55.18% |
| 18
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Promoters and promoter group Shareholding |
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| a)
Pledged / Encumbered |
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-Number of Shares |
31,816,974 |
31,816,974 |
31,816,974 |
31,816,974 |
31,816,974 |
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-Percentage of Shares (as a% of the total shareholding of promoter / promoter group) |
99.33% |
99.33% |
99.33% |
99.33% |
99.33% |
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-Percentage of Shares (as a % of the total share capital of the Company) |
44.52% |
44.52% |
44.52% |
44.52% |
44.52% |
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| b)
Non- Encumbered |
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-Number of Shares |
214,588 |
214,588 |
214,588 |
214,588 |
214,588 |
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-Percentage of Shares (as a% of the total shareholding of promoter / promoter group) |
0.67% |
0.67% |
0.67% |
0.67% |
0.67% |
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-Percentage of Shares (as a % of the total share capital of the Company) |
0.30% |
0.30% |
0.30% |
0.30% |
0.30% |
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| 1 |
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'The above unaudited standalone financial results for the quarter ended December 31, 2009 have been reviewed by the Audit Committee and were approved by the Board of Directors in their meeting held on January 30, 2010. |
| 2 |
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The Statutory Auditors have carried out a 'Limited Review' of the unaudited standalone financial results of the Company for the quarter and period ended December 31, 2009. |
| 3 |
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'In accordance with Accounting Standard 17 on Segment Reporting notified under section 211(3c) of the Companies Act, 1956, the Company has identified three Business Segments viz., Textile Manufacturing , Textile Trading and Other Trading. Accordingly, segment disclosure has been done. |
| 4 |
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Butibori unit was initially granted Sales Tax Exemption for 14 years under the Package Scheme of Incentives, 1993, upto 31st December, 2008, vide Exemption certificate EC No. 2887. Consequent to High Court Order of demerger, Unit applied for issue of separate certificate in its favour, valid upto December 31, 2008 after splitting/ canceling the above certificate. However Development Commissioner (Industries), Govt. of Maharashtra, reduced the initial validity period from 14 yrs to 11 yrs i.e. upto 31 December, 2005. The unit has applied for the restoration of the original validity period upto December 31, 2008 in terms of the High Court order.
In view of expiry of the exemption benefits, the Butibori unit has given an undertaking to the Sales Tax Department for payment of taxes with interest with effect from January 1, 2006 in case it fails to get the extension of exemption period and was accordingly selling finished goods, waste and scrap etc. without charging sales tax (VAT and Central Sales Tax) under exemption. With effect from 1st Jan’2009 the unit is selling its products after charging sales tax / VAT as applicable.
Pending approval of such restoration, the unit has accrued VAT receivable amounting to Rs. 848.76 lacs for the period January 1, 2006 to December 31, 2008. In case the unit fails to get such sales tax exemption from authorities, an amount, including interest, of Rs. 1,316.87 Lacs (Rs. 1,283.22 Lacs in respect of earlier periods) will be payable including Rs. 33.65 Lacs for the current quarter and Rs. 100.94 lacs for the period ended December 31, 2009.
The unit has also filed a petition before the Hon’ble High Court, Nagpur to grant relief on the said matter and is hopeful of recovery of such amount. This matter has been qualified in the statutory auditor's limited review report for the quarter and period ended December 31, 2009. The management is hopeful of obtaining the exemption. |
| 5 |
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The Auditor, in their limited review report have mentioned regarding diminution in the value of company's long term Investment of Rs. 2044.70 lacs and recoverablity of Rs 5391.46 lac in Amit Spinning Industries Ltd. (ASIL). ASIL had registered losses during the three quarter of the year and earlier financial years and eroded its net worth due to economic slow down. The Company believes that that the diminution in value of said Investment is temporary in nature and considering improvement in the global textile market, will turn around ASIL, so as to make good its losses in a foreseeable period of time and will also place this subsidiary in a position to repay the liabilities in due course and does not require any adjustment.
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| 6 |
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Schoeller Litvinov k.s. (SLKS), the Czech step-down subsidiary of the Company, had registered losses during the three quarter of the year and earlier financial years due to economic slow down and restructuring costs etc. This step down subsidiary had submitted a re-organization plan seeking deferment of payment to Secured creditors, and proportionate waiver of unsecured liabilities which has now been approved by the court. The Company believes that the reorganization plan, considering improvement in the global textile market, will turn around this subsidiary, so as to make good its losses in a foreseeable period of time and will also place this subsidiary in a position to repay the liabilities in due course. Accounts and other receivable Rs. 5109.56 lacs is due from SLKS as at December 31, 2009. These matters have been qualified in the statutory auditor's limited review report for the quarter and period ended December 31, 2009 and will be dealt with appropriately in due course. |
| 7 |
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Sundry Debtors and Advances include amounts aggregating Rs. 179.35 lacs and Rs. 224.73 lacs respectively due from certain customers where payments are not forthcoming. Of the above, the Company has filed a suit for recovery of Rs. 179.35 lacs against two of the customers. Further, in respect of the advances of Rs. 224.73 lacs the Company is making efforts to recover the same and expects to reduce them significantly. Based on outcome of the legal suit coupled with further negotiations with these parties, the management is of the opinion that ultimately there would be no losses against these old balances and hence no provision is considered necessary at this stage. These matters have been qualified in the statutory auditor's limited review report for the quarter and period ended December 31, 2009. |
| 8 |
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During the quarter, the Company issued & alloted 11,800,000 convertible warrants @ Rs. 16.95 each on a preferential basis in terms of SEBI (ICDR) Regulations, 2009 and received Rs. 500.03 lacs as upfront money against warrents. |
| 9 |
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As on December 31, 2009, accumulated losses of the Company continue to exceed 50% of its net worth. The overall industry Considering the overall industry outlook has positively impacted the performance of the company as a result of which company has started earning cash profit. On the strength of company revival plan including infusion of fresh capital, the management believes that losses incurred in past would be made good in foreseeable future, accordingly these financial results have been prepared on a going concern basis. |
| 10 |
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'There were no investor complaints pending at the beginning of the quarter, 4 complaints were received during the quarter and properly redressed and there were no complaints pending at the end of the quarter. |
| 11 |
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'Previous period figures have been regrouped / recasted / rearranged wherever necessary, to conform to the current period's presentation. |
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| BY ORDER OF THE BOARD OF DIRECTORS, |
| For SPENTEX INDUSTRIES LIMITED, |
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| Sd/- |
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| MUKUND CHOUDHARY |
| MANAGING DIRECTOR |
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| Place : New Delhi |
| Date : January 30, 2010 |
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