zodiac - national stock exchange of india

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ZODIAC 30" July, 2020 National Stock Exchange of India Ltd., Exchange Plaza, Sth Floor, Plot No. C/1, G Block, Bandra Kurla Complex, Bandra East Mumbai - 400051 BSE Limited, Corporate Relationship Department, First Floor, New Trading Ring, Rotunda Building, P.J. Tower, Dalal Street, Mumbai - 400001 Dear Sirs, Sub: Outcome of the Board Meeting held on 30 July, 2020 Pursuant to Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 we would like to inform you that the Board of Directors of the Company at their meeting held on 30" July, 2020 have interalia considered, approved/taken on record the following: a. The Audited Consolidated and Standalone Financial Results of the Company for the Fourth Quarter and Audited Consolidated and Standalone Financial Results of the Company for year ended 31* March, 2020. b. Independent Auditors Report on the Consolidated and Standalone Financial Results of the Company for the year ended 31% March, 2020 with unmodified opinion. c. The Board of Directors of the Company have decided to convene the 36" Annual Genera! Meeting of the Company on Friday, 25" September, 2020. d. The Board of Directors of the Company have not recommend any Dividend for the year ended 31% March, 2020. in terms of Regulation 33(3)(d) of Listing Regulations {as amended) and in compliance with SEBI Circular CIR/CFD/CMD/56//2016 dated May 27, 2016 attached is the Declaration duly signed by the Vice Chairman & Managing Director of the Company. ZODIAC CLOTHING COMPANY LTD., Nyloc House, 254, D-2, Dr. Annie Besant Road, Worli, Mumbai - 400 030. India. Tel.: +91 22 6667 7000 Fax : +91 22 6667 7279 CIN: L17100MH1984PLC033143. Trademark Under Licence From Metropolitan Trading Co.

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Page 1: ZODIAC - National Stock Exchange of India

ZODIAC

30" July, 2020

National Stock Exchange of India Ltd., Exchange Plaza, Sth Floor, Plot No. C/1, G Block, Bandra Kurla Complex, Bandra East

Mumbai - 400051

BSE Limited, Corporate Relationship Department, First Floor, New Trading Ring, Rotunda Building, P.J. Tower, Dalal Street, Mumbai - 400001

Dear Sirs,

Sub: Outcome of the Board Meeting held on 30 July, 2020

Pursuant to Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 we would like to inform you that the Board of Directors of the Company at their meeting held on 30" July, 2020 have interalia considered, approved/taken on record the following:

a. The Audited Consolidated and Standalone Financial Results of the Company for the Fourth Quarter and Audited Consolidated and Standalone Financial Results of the Company for year ended 31* March, 2020.

b. Independent Auditors Report on the Consolidated and Standalone Financial Results of the Company for the year ended 31% March, 2020 with unmodified opinion.

c. The Board of Directors of the Company have decided to convene the 36" Annual Genera! Meeting of the Company on Friday, 25" September, 2020.

d. The Board of Directors of the Company have not recommend any Dividend for the year ended 31% March, 2020.

in terms of Regulation 33(3)(d) of Listing Regulations {as amended) and in compliance with SEBI Circular CIR/CFD/CMD/56//2016 dated May 27, 2016 attached is the Declaration duly signed by the Vice Chairman & Managing Director of the Company.

ZODIAC CLOTHING COMPANY LTD.,

Nyloc House, 254, D-2, Dr. Annie Besant Road, Worli, Mumbai - 400 030. India.

Tel.: +91 22 6667 7000 Fax : +91 22 6667 7279 CIN: L17100MH1984PLC033143.

Trademark Under Licence From Metropolitan Trading Co.

Page 2: ZODIAC - National Stock Exchange of India

ZODIAC

The Board meeting commenced at 4:00 p.m. and concluded at 7.15 p.m.

We request you to kindly take the above on record.

Thanking you,

Kumar lyer Company

Encl: As above

ZODIAC CLOTHING COMPANY LTD.,

Nyloc House, 254, D-2, Dr. Annie Besant Road, Worli, Mumbai - 400 030, India.

Tel.: +91 22 6667 7000 Fax : +91 22 66677279 CIN: L17100MH1984PLC033143.

Trademark Under Licence From Metropolitan Trading Co.

www.zodiaconline.com

Page 3: ZODIAC - National Stock Exchange of India

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Page 5: ZODIAC - National Stock Exchange of India

ZODIAC CLOTHING COMPANY LIMITED

CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES AS AT MARCH 31, 2020

Annexure - 1

Non-current assets

Property, plant and equipment 11,230 11,830 Right-of-use assets 7,135 - Capital work - in-- progress 187 283 Investment properties 745 760 Intangible assets 211 246

Financial assets

~ Investments 2,663 4,295 - Loans 955 1,592

- Others financial assets 1 i Deferred tax assets (net) $i9 249 Non - Current tax assets (net) 1,325 1,349

Other non - current assets 333 613

Current assets

Inventories 8,823 8,724

Financial assets

- Investments 165 1,084

~ Trade receivables 1,751 2,305

- Cash and cash equivalents 1,926 1,178

- Bank Balances other than cash and cash equivalents 277 757 - Loans 2,236 1,158

~ Other financial assets 601 2,095

Other current assets 2,549 2,372

TOTAL ASSETS 44,032 40,895 "

Wl | EQUITY AND LIABILITIES

Equity Equity share capital 2,248 2,129

Other equity 23,662 28,266

Liabilities

Non-current liabilities

Financial liabilities

~ Borrowings 1,672 83 ~ Lease Liabilities 5,619 “

Provisions 1 3

Current liabilities

Financial liabilities

- Borrowings 4,299 6,077 ~ Lease Liabilities 2,534 -

- Trade payables

(a) total outstanding dues of micro enterprises and small enterprises; and 38 72

(a) total outstanding dues of creditors other than micro enterprises and small enterprises 2,217 2,131

- Other financial liabilities 670 g16 Provisions 140 119

Other current liabilities 932 1,199

TOTAL EQUITY AND LIABILITIES 44,032 40,895

Page 6: ZODIAC - National Stock Exchange of India

ZODIAC CLOTHING COMPANY LIMITED Annexure - 2

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED MARCH 31, 2020

oe eee

CASH FLOW FROM OPERATING ACTIVITIES:

Loss before exceptional items and tax (3,005) (2,198) Adjustments for:

Depreciation and amortization expenses 3,546 1,071 Finance cost 1,386 434 Unrealised exchange (gain) / loss on foreign currency translation / transaction (21) (36)

4 Dividend income (57) (19)

Rent income (386) (369) Interest income (118) (59)

Net gain on financial assets measured at fair value through profit or loss (219) (80) Allowance for doubtful debts, loans and deposits / Expected Credit Loss - (52) Bad and doubtful debts, loans and deposits written off 85 4 Gain on remeasurement of lease contracts (173) -

Remeasurements of net defined benefit plans (76) (95)) Net Lass on sale/discard of property, plant and equiprnent 37 81

999 {1,318 Operating profit before working capital changes

Adjustments for:

(Increase)/decrease in trade and other receivables 594 1,201

(increase)/decrease in inventories (99) (799)

Increase/(decrease) in trade and other payables (332) {1,540)

Increase/(decrease) in provisions 19 (137

1,181 ass

Less: Direct taxes paid (net of refunds) (112) (135) Net cash flows generated from / (used in) operating activities after exceptional items 1,069 (2,728)]

CASH FLOW FROM INVESTING ACTIVITIES:

Sale proceeds of property, plarit and equipment 5 i

Interest received 13 64

Rent Received 386 369

Sale proceeds of non-current investments 983 430

Sale proceeds of current investments (Net) 966 -

Dividend received 5? 19

Proceeds from Sale of Investments in Subsidiary 1,372 472

Proceeds from Term Depasits {Net} 477 -

4,259 1,355.

Outflows

Purchase of property, plant and equipment/ intangible assets/ investment property (455) (568)

Purchase of current investments (Net) - (304)

Purchase of non-current investments (183) (442)

Loans given (315) (123 Investment in Term Deposits (Net) : (720

(953) (2,157)

Net cash generated from / (used in) investing activities 3,306 (802)}

CASH FLOW FROM FINANCING ACTIVITIES:

Jinflows Proceeds from issue of equity shares (including securities premium) / share warrants 500 4,500

Proveeds from non-current borrowings 1,672 -

Proceeds from current borrowings (net) - 220

2,172 4,720

Outflows

Repayment of non-current borrowings (211) (632)

Repayment of current borrowings (net) (1,778) -

Payment of principal portion of lease liabilities (2,213) -

Interest paid on lease liabilities (340) - interest paid on others (444) (415) Dividend paid (213) (195

(5,799) (1,242 Net cash generated from / (used in) financing activities (3,627) 3,478

NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS 748 (52)

Add ; Cash and cash equivalents at beginning of the year 1,178 1,230 Cash and cash equivalents at end of the year 1,596 7,178 |

Non-cash financing and investing activities Acquisition of right-of-use assets 859 *

Page 7: ZODIAC - National Stock Exchange of India

Price Waterhouse Chartered Accountants LLP

INDEPENDENT AUDITOR’S REPORT

To the Board of Directors of Zodiac Clothing Company Limited

Report on the Audit of Consolidated Financial Results

Opinion

1. We have audited the consolidated annual financial results of Zodiac Clothing Company Limited (hereinafter referred to as the ‘Holding Company”) and its subsidiaries (Holding Company and its subsidiaries together referred to as “the Group”), (Refer note c to the consolidated annual financial

results) for the year ended March 31, 2020 and the consolidated statement of assets and liabilities and

the consolidated statement of cash flows as at and for the year ended on that date, attached herewith,

being submitted by the Holding Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (‘Listing

Regulations’).

2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid consolidated financial results:

i. include the annual financial results of the subsidiaries “Zodiac Clothing Co. (U.A.E) LLC, Zodiac Clothing Co. S.A and Zodiac Clothing Bangladesh Limited.

ii. are presented in accordance with the requirements of Regulation 33 of the Listing Regulations in this regard; and

iii. give a true and fair view in conformity with the recognition and measurement principles laid down in the applicable accounting standards prescribed under Section 133 of the Companies Act, 2013

(the “Act”) and other accounting principles generally accepted in India, of net loss and other comprehensive income and other financial information of the Group for the year ended March 31, 2020 and the consolidated statement of assets and liabilities and the consolidated statement of cash flows as at and for the year ended on that date.

Basis for Opinion

3. We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section

143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of

Chartered Accountants of India. Our responsibilities under those Standards are further described in the ‘Auditor’s Responsibilities for the Audit of the Consolidated Financial Results’ section of our report. We are independent of the Group, in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us and other auditors in terms of their reports referred to in “Other Matter” paragraph below, is sufficient and appropriate to provide a basis for our opinion.

Price Waterhouse Chartered Accountants LLP, Nesco IT Building Ul, 8th Floor, Nesco IT Park, Nesco Complex

Gate No. 3 Western Express Highway, Goregaon East, Mumbai — 400 063

T: +91(22) 61198000, F: +91 (22) 61198799

Registered office and Head office: Sucheta Bhawan, 11A Vishnu Digambar Marg, New Delhi 110 002

Price Waterhouse (a Partnership Firm) converted into Price Waterhouse Chartered Accountants LLP (a Limited Liability Partnership with LLP identity no: LLPIN AAC-

5001) with effect from July 25, 2014. Past its conversion to Price Waterhouse Chartered Accountants LLP, its ICAI registration number is 012754N/NS500016 (ICAI

registration number before conversion was 012754N)

Page 8: ZODIAC - National Stock Exchange of India

Price Waterhouse Chartered Accountants LLP

INDEPENDENT AUDITOR’S REPORT To the Board of Directors of Zodiac Clothing Company Limited Report on the Consolidated Financial Results Page 2 of 4

Emphasis of Matter

4. We draw your attention to Note h to the consolidated financial results, which explain the uncertainties

and the management’s assessment of the financial impact due to restrictions and other conditions

related to the Covid-19 pandemic; for which a definitive assessment of the impact in the subsequent

period is dependent upon circumstances as they evolve. Our opinion is not modified in respect of this

matter.

Board of Directors’ Responsibilities for the Consolidated Financial Results

5. These Consolidated financial results have been prepared on the basis of the consolidated annual

financial statements. The Holding Company’s Board of Directors are responsible for the preparation

and presentation of these consolidated financial results that give a true and fair view of the net loss and

other comprehensive income and other financial information of the Group and the consolidated

statement of assets and liabilities and the consolidated statement of cash flows in accordance with the

recognition and measurement principles laid down in the Indian Accounting Standards prescribed

under Section 133 of 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. The

respective Board of Directors of the companies included in the Group are responsible for maintenance

of adequate accounting records in accordance with the provisions of the Act for safeguarding of the

assets of the Group and for preventing and detecting frauds and other irregularities; selection and

application of appropriate accounting policies; making judgments and estimates that are reasonable

and prudent; and the design, implementation and maintenance of adequate internal financial controls,

that were operating effectively for ensuring accuracy and completeness of the accounting records,

relevant to the preparation and presentation of the consolidated financial statements that give a true

and fair view and are free from material misstatement, whether due to fraud or error, which have been

used for the purpose of preparation of the consolidated financial results by the Directors of the Holding

Company, as aforesaid.

In preparing the consolidated financial results, the respective Board of Directors of the companies

included in the Group are responsible for assessing the ability of the Group to continue as a going

concer, disclosing, as applicable, matters related to going concern and using the going concern basis

of accounting unless the respective Board of Directors either intends to liquidate the Group or to cease

operations, or has no realistic alternative but to do so.

The respective Board of Directors of the companies included in the Group are responsible for overseeing

the financial reporting process of the Group.

Auditor’s Responsibilities for the Audit of the Consolidated Financial Result

8. Our objectives are to obtain reasonable assurance about whether the consolidated financial results as a

whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's

report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a

guarantee that an audit conducted in accordance with SAs will always detect a material misstatement

when it exists. Misstatements can arise from fraud or error and are considered material if, individually

or in the aggregate, they could reasonably be expected to influence the economic decisions of users

taken on the basis of these consolidated financial results.

Page 9: ZODIAC - National Stock Exchange of India

Price Waterhouse Chartered Accountants LLP

INDEPENDENT AUDITOR’S REPORT

To the Board of Directors of Zodiac Clothing Company Limited Report on the Consolidated Financial Results Page 3 of 4

9. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the consolidated financial results, whether

due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(G) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls. (Refer paragraph 14 below)

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.

Conclude on the appropriateness of the Board of Directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Group to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial results or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the consolidated financial results,

including the disclosures, and whether the consolidated financial results represent the underlying transactions and events in a manner that achieves fair presentation.

Obtain sufficient appropriate audit evidence regarding the financial results of the entities within the Group to express an opinion on the consolidated Financial Results. We are responsible for the direction, supervision and performance of the audit of financial information of such entities included in the consolidated financial results of which we are the independent auditors. For the other entities included in the consolidated financial results, which have been audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.

10. We communicate with those charged with governance of the Holding Company regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

11. We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33(8) of the Listing Regulations, as amended, to the extent applicable.

Page 10: ZODIAC - National Stock Exchange of India

Price Waterhouse Chartered Accountants LLP

INDEPENDENT AUDITOR’S REPORT

To the Board of Directors of Zodiac Clothing Company Limited Report on the Consolidated Financial Results Page 4 of 4

Other Matters

12. We did not audit the financial statements of three subsidiaries included in the consolidated financial results, whose financial statements reflect total assets of Rs. 4,566 lakhs and net assets of Rs. 4,385 lakhs as at March 31, 2020, total revenues of Rs. 2,230 lakhs, total comprehensive income (comprising of profit and other comprehensive income) of Rs. 612 lakhs and cash inflows (net) of Rs. 656 lakhs for the year ended March 31, 2020, as considered in the consolidated financial results. These financial statements are audited by other auditors, whose reports have been furnished to us by the Management and our opinion on the consolidated financial results, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries, is based solely on the reports of the other auditors and the procedures performed by us as stated in paragraph 11 above.

Our opinion on the consolidated Financial Results is not modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditors.

13. The Financial Results include the results for the quarter ended March 31, 2020, being the balancing figures between the audited figures in respect of the full financial year and the published unaudited year to date figures up to the third quarter of the current financial year, which are neither subject to limited review nor audited by us.

14. The consolidated annual financial results dealt with by this report have been prepared for the express purpose of filing with stock exchanges. These results are based on and should be read with the audited consolidated financial statements of the Group for the year ended March 31, 2020 on which we have issued an unmodified audit opinion vide our report dated July 30, 2020.

For Price Waterhouse Chartered Accountants LLP

Firm Registration Number: 012754N/N500016

t

Sachin Parekh

Partner Place: Mumbai Membership Number : 107038 Date: July 30, 2020 UDIN : 2 0 10F039AAAKCALGOO

Page 11: ZODIAC - National Stock Exchange of India

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