Metalyst Forgings : Financial Result Updates

Ref.No.:MFL/BSE/NSE/2021-22 Date: March 31, 2022

To,

Sub: unaudited Standalone Financial Results along with Limited Review Reportrs Report for the quarter ended June 30 2021.

Dear Sir/Ma'am,

Pursuant to the provision of Regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that unaudited Standalone Financial Result of the Company for the Quarter ended June 30, 2021 shall considered and disseminated on March 31, 2021. Consequent to same, we enclosed, interim of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the following:

1.

The Standalone unaudited Financial Results of the Company for the Quarter ended June 30, 2021 along with Limited Review Report.

The meeting for approval of Audited Standalone Financial, was commenced at 22.00 p.m and concluded at 22:50 p.m.

Kindly note that the above referred shall be available at the website of the company i.e.,http://www.amtek.com/mfl.php

You are requested to take the above information on record.

Thanking You,

Yours faithfully,

For Metalyst Forgings Limited

(A Company under Corporate Insolvency Resolution Process) Sd-/

(Arun Mati)

Chief Financial Officer

Issued with Approval of Mr. Dinkar T. Venkatasubramanian (Resolution Professional)

IP Registration no. IBBI/IPA-001/IP-P00003/2016-17/10011

(Metalyst Forgings Limited is under Corporate Insolvency Resolution Process of the Insolvency and Bankruptcy Code, 2016. Its affairs, business and assets are being managed by the Resolution Professional, Mr. Dinkar T. Venkatasubramanian, appointed as Interim Resolution Professional by the National Company Law Tribunal by order dated 15 December, 2017 and continued as Resolution Professional by the Committee of Creditors in its meeting held on 12 January, 2018 under provisions of the code)

Email:corporatemetalyst@gmail.com: website: http://www.amtek.com/mfl.php

Chartered Accountants

Independent Auditor's Review Report on the Quarterly and Year to date Unaudited

Financial Results of Metalyst Forgings Limited pursuant to the Regulation 33

of the

SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

To,

The Resolution Professional Metalyst Forgings Limited

• 1. We have reviewed the accompanying statement of unaudited financial results of Metalyst Forgings Limited (the "Company") for the quarter ended June 30,2021 (the

  "Statement") attached herewith, being submitted by the Company pursuant to

  requirements of Regulation

  Requirements) Regulations, 2015, amended (the "Listing Regulation").

  the

  33 of as

  the SEBI (Listing Obligations and Disclosure

• 2. A Corporate Insolvency Resolution Process ("CIRP") has been initiated against the Company vide an order of Mumbai bench of the National Company Law Tribunal ("NCLT") dated December 15, 2017 under the provisions of the Insolvency and Bankruptcy Code, 2016 (the "Code"). Pursuant to the Order, the power of the Board of Directors stands suspended and are exercisable by Mr. Dinkar Tiruvannadapuram Venkatasubramaniam, who was appointed as Interim Resolution Professional ("IRP") by the NCLT vide order dated December 15, 2017 and was consequently confirmed as Resolution Professional ("RP") by the Committee of Creditors (COC) in its meeting held on January 12, 2018, The members of the COC (vide the meeting held 18 May 2018)

  authorized RP to file an application to

  from 180 days

  to Code.

  270 days) as per the

  NCLT for extension of CIRP period by 90 days (ie.,

• 3. As per the provisions of the Code,

the COC of the Company had approved the resolution

plan submitted by Deccan Value Investors L.P (DVI) through e-voting process on August 24, 2018. The resolution plan, as approved by the COC of the Company, had also been subsequently submitted to Hon'ble NCLT "Mumbai Bench' for consideration and approval as per the Code. Although DVI withdrew their application while the same was pending for approval from the Hon'ble NCLT. In relation to this, Adjudicating Authority vide its Order dated September 27, 2019 has granted additional time for the closure of resolution process. The said Order was challenged by the COC and an appeal was filed with the Hon'ble NCLAT. However, the NCLAT has dismissed the appeal vide its order dated February 07, 2020 and the matter is currently sub judice in Hon'ble Supreme Court of India. In the meanwhile, the Company is presently undergoing CIRP, and the Resolution Process is underway in line with the provisions of Code. Accordingly, unaudited financial results for the quarter ended June 30, 2021 have been prepared ona going concern basis.

Head Office: 405 408, Hind Rajasthan Building, Dadasaheb Phalke Road, Dadar (E), Mumbai

Branch Offices at Vashi and Kanjurmarg

:

Ahmedabad, Bangalore, Chennai, Delhi,

400 014.

Guwahati,Delhi,

.

Hyderabad, Indore, Jaipur,

Kochi,

Kolkata,

Patna, Silchar, Siliguri and

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Chartered Accountants

• 4. The unaudited financial results of the Company for the quarter ended June 30, 2021

  have been taken on record by the RP while discharging the power of the Board

  of

  Directors of the Company in accordance with the NCLT order solely for the purpose of ensuring regulatory compliance. The preparation of the Statement in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, (Ind AS 34) "Interim Financial Reporting" prescribed under Section 133 of the Companies Act, 2013 read with relevant Rules issued thereunder and other accounting principles generally accepted in India, is the responsibility of the Company's Management and the RP. The statement has been signed by the CFO and RP. Our responsibility is to express a conclusion on the Statement based on our review.

• 5. We conducted our review of the Statement in accordance with the Standard on Review

  Engagement	the
  Independent	Entity"	by	of
  that	and

  issued we plan

  (SRE) 2410, "Review of Interim Financial Information Performed by

  Auditor of the India. This standard requires

  the Institute of Chartered Accountants perform the review to obtain moderate

  review	consists
  persons	accounting

  assurance as to whether the financial statements of interim financial information responsible for the financial and

  are	A
  of	inquiries,	primarily	of
  applying	analytical

  and

  free of material misstatement. making

  matters and

  other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

• 6. Based on our review conducted as above and subject to the possible effects of the matter described in Basis of Qualified conclusions and Emphasis of Matter paragraph, 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 the aforesaid Indian Accounting Standards ("Ind AS") specified under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued there-under and other accounting principles generally accepted in India, has not disclosed the information

required to be disclosed in terms of the Listing Regulations, including which it is to be disclosed, or that it contains any material misstatement.

Basis for Qualified conclusion

7.

As per "IND AS 36 Impairment of Assets", the Company should assess at the end of each

reporting period whether exists, the

Head Office: 405 408, Hind Rajasthan Building,

Dadasaheb Phalke Road, Dadar (E), Mumbai 400 014. Branch Offices at Vashi and Kanjurmarg

is any indication that an asset may be impaired. If any shall estimate the recoverable amount of the asset. As

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Accordingly, we are unable to ascertain the possible effect of the same on the Statements.

• 8. As required under "IND AS 36- Impairment of Assets", the company has not done impairment testing on Property, plant and equipment having net block value of Rs 1,74,880.57 lakhs and Capital Work in Progress having closing value of Rs 13,821 Lakhs. We are informed by the management that since the company is under CIRP process, it is not possible for them to determine value in use and hence impairment testing has not been carried out. Accordingly, we are unable to ascertain the possible effects of the same on the Standalone Financial statements.

• 9. The company has not maintained fixed asset register. Accordingly, we cannot comment on accuracy of the value of Property, Plant and Equipment, current & Accumulated Depreciation and its possible impact on the standalone financial statements.

• 10. Refer Note No. 9 to the Statements, the Company has recognized VAT refund receivable of Rs 707.73 lakhs for FY 2014-15, FY 2015-16 and FY 2016-17 under non-current

  assets. Assessments

  the assessment orders, process of filing application

  for

  these	VAT	as	per
  there	is	of	Rs.	Lakhs.	in	the
  for	of	the

  years have been completed by

  total demand rectification

  516.39

  department and The company is

  orders. In absence of rectification

  order from VAT department, the non-current assets are overstated and expenses accumulated losses are understated to the extent of Rs 707.73 Lakhs.

  &

• 11. Out of Rs 670.89 lakhs, balances of certain current accounts having aggregate balance of Rs. 42.47 lakhs are not confirmed due to non-availability of confirmation fromrespective Banks. Out of 1162.74 lakhs, balances of other bank

  aggregate balances of Rs

  47.81 non-availability of

  accounts having

  lakhs are not confirmed due to

  confirmation from respective Banks. In absence of these details, we are ascertain the possible effect on standalone financial statements.

  unable to

• 12. Balance of Trade receivables, loans and advances and Trade payables

  are subject

  confirmations

  and

  consequent

  adjustments,

  if required.

  In absence

  confirmations, financial impact on financial results is not ascertainable.

  to

  of balance

• 13. The Company has been continuously making losses. Its total liabilities have exceeded its total assets and consequently its net worth has fully eroded. The Company has been in the CIRP process under the Code and till date no resolution has been arrived at. All these

indicate the existence of material uncertainty that may cast significant doubt on

the

Company's ability to continue as a going concern. However, in view of the CIRP, the accounts have been prepared on a going concern basis [Refer Note 2 to financial results].

Head Office: 405 408, Hind Rajasthan Building, Dadasaheb Phalke Road, Dadar (E), Mumbai Branch Offices at Vashi and Kanjurmarg

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Chartered Accountants

Emphasis of Matter

the ongoing corporate insolvency resolution process, the certainty as to the of unused Tax Losses and MAT credit cannot be ascertained

Consequently, adjustment given effect to. [Refer Note

• 15. Considering the financial debt from the date of commencement of CIRP i.e., from December 15, 2017 till June 30, 2021 has not been provided in the books of accounts and charged to the Profit and Loss account. [Refer Note 8 to financial results]

  the ongoing corporate insolvency resolution process, interest on

• 16. Unclaimed dividend outstanding in the books pertaining to FY 2012-13 and 2013-14 will be transferred to Investor's Education and Protection Fund on the stipulated date. [Refer Note 12 to financial results].

• 17. We draw attention to Note 4 of the statement, which describes the uncertainties and the impact of Covid-19 pandemic on the Company's operations and results as assessed by the management.

Our conclusion on the Statement is not modified in respect of above matters.

For Jayesh Sanghrajka & Co. LLP Chartered Accountants

ICAI Firm Registration Number: 104184W/W100075

/

Rishikesh Nasikkar Designated Partner Membership Number: 166493

UDIN: 22166493AGBXJW4831

Place: Mumbai

Date: March 31, 2022

Head Office:

405

408, Hind Rajasthan Building,

Dadasaheb Phalke Road, Dadar (E), Mumbai 400014.

Branch Offices at Vashi and Kanjurmarg

+91 22 40774602

info@jsandco.in

www.jsandco.in

104184 W/ W100075

Aff iliatesOffices:

Ahmedabad,

Bangalore, Chennai, Delhi,

Guwahati, Hyderabad, Indore, Jaipur, Kochi,

Kolkata, Delhi, Patna, Silchar, Siliguri and

Thiruvananthapuram.

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& Affiliates

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