(O)+91 22 2283 4116/6632 4038 (O)+91 22 4032 2786-4032 2795

(F) +91 22 2285 1728 info@sarlafibers.com ;

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.

ay y \ = Qo x( MUMBAI 2 %, em a

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.

(iii) Auditors‘ Comments on (i) or (ii) above:- None

CEO/Managing Director

CFO

Audit Committee Chairman

Statutory Auditor

Place: Mumbai

Date: 24th July, 2020