1. The above financial results for the quarter and year ended 31st March, 2021 have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 26th April, 2021 and have been subjected to audit by the statutory auditors.

2. Pursuant to an application made by the State Bank of India, the Hon'ble National Company Law Tribunal, Ahmedabad bench ("Adjudicating Authority"), vide its order dated 18th July, 2017, had ordered the commencement of the corporate insolvency resolution ("CIR") process in respect of the Company under the provisions of the Insolvency and Bankruptcy Code, 2016 (the "Code"). Pursuant to its order dated 8th March, 2019 ("NCLT Order"), the Adjudicating Authority approved the resolution plan submitted by the Resolution Applicants for the Company under Section 31 of the Insolvency and Bankruptcy Code, 2016 ("Code") ("Approved Resolution Plan"). As per the terms of Section 31 of the Code, the Resolution Plan shall be binding on the Company, its employees, members, creditors, guarantors and other stakeholders involved in the Resolution Plan

On 14th September, 2020, the Monitoring Committee formed under the terms of the Approved Resolution Plan re-constituted the Board of Directors of the company as part of the implementation of the aforesaid Approved Resolution Plan.

Though the Company has incurred a loss of Rs. 1,190.79 crore (before exceptional items) for the year ended 31st March, 2021 and has accumulated losses of Rs. 16,803.71 crore as on that date, its current assets exceeds its current liabilities by Rs. 443.35 crore. Further, with a view to improve the performance of the Company, the re-constituted Board has adopted a business plan with specific focus on utilising the existing capacities and exploring various avenues of enhancing revenues Accordingly, the financial results have been prepared on a going concern basis.

3. The outbreak of corona virus (Covid-19) pandemic globally and in India is causing significant disturbance and slowdown of economic activity. The Company's operations and revenue during the period were impacted due to Covid-19 and also due to the fact that the capacity utilisation over the past few years have been in the range of 25-30%. With the new business plan in place, there is an f us to increase the capacity utilisation gradually in a phased manner.

The Company has taken into account the possible impact of Covid-19 in preparation of the financial results, including its assessment of the recoverable value of its assets based on the internal and external information up to the date of approval of these financial results and current indicators of future economic conditions.

4. Considering the nature of its business activities and related risks and returns, the Company operates in a single primary business segment, namely "Textiles", which constitutes a reportable segment in the context of Ind AS 108 on "Operating Segments" There has been no development during the quarter and year necessitating any changes in Operating Segment

5. Exceptional items recognized in the financial results comprises of: - For Table, kindly refer Corporate Announcements on www.bseindia.com.

a) In terms of the Approved Resolution Plan, 13,59,11,844 pledged equity shares were transferred to JM Financial Asset Reconstruction Company Limited (acting in its capacity as Trustee for JMFARC-March - 2018 -Trust) (referred as "JM"). Further, as per the aforesaid Plan, the debt assigned to JM has been proportionately reduced by the value of such shares (Rs 58.44 crore) determined basis the lower of the trading price prevailing on BSE Limited or National Stock Exchange of India Limited one day before the date of invocation. Accordingly, extinguishment of financial liability amounting to Rs 58.44 crore has been recognised as exceptional gain in the standalone and consolidated financial results for the year ended 31st March, 2021.

b) In terms of the Approved Resolution Plan, JM and Reliance Industries Limited ('RIL') have converted such portion of their assigned debt into equity, such that their joint equity holding in the Company is 75%. Pursuant to such conversion, the proportionate reduction in Outstanding ARC Debt as per clause 1.2 (xii) of the Approved Resolution Plan is Rs 5,240.14 crore. The price at which the conversion has taken place has been determined in accordance with the Approved Resolution Plan and applicable law and consequently, the difference between the issue of 275.46 crore equity shares at face value and the amount by which the assigned debt has been proportionately reduced as stated above has been recognised as exceptional gain in the standalone and consolidated financial results for the year ended 31st March, 2021.c) During the year, the Company/ Group had, based on an impairment assessment/fair valuation done by independent value, recognised an impairment loss of Rs. 8,264.22 crore and Rs. 8,915.17 crores on property, plant and equipment, investment properties and right of use assets and disclosed the same as an exceptional loss in the standalone and consolidated financial results respectively for the year ended 31st March, 2021 and Rs. 650.95 crores in consolidated financial results for the quarter ended 31st March, 2021.

6. As per Clause 1.2 (xi) of Approved Resolution Plan, the outstanding debt assigned to Resolution Applicants shall not carry interest for the first 8 years from the Closing Date (as defined in the Approved Resolution Plan), hence such debt has been measured at cost. After such period of 8 years, the terms of assigned debt shall be mutually agreed among the Resolution Applicants and the Company. The Approved Resolution Plan has an overriding effect on the Accounting Standard. Hence, had the Company applied the Ind AS, it would have recognised the assigned debt at its fair value and accordingly recognized the imputed interest cost over the period of loan in the statement of profit and loss.

7. During the year, the management, based on internal technical evaluation, reassessed the estimates relating to useful life of certain assets of plant and machinery. Accordingly, the Company has revised the useful life of those assets to 40 years which were earlier in the range of 20-25 years. The effect of the same has been considered in the financial results for the quarter and year ended 31st March, 2021.

8. Figures for the quarter ended 31st March, 2021 and 31st March, 2020 are the balancing figures between audited figures in respect of the full financial years ended on those dates and the published reviewed year-to-date figures up to the third quarter of the respective financial year.

9. Previous periods / year have been reclassified / regrouped, wherever necessary, to correspond with those of the current periods.

A. Siddharth
Chairman