Aarti Industries Ltd — Interim / Quarterly Report 2022

Aug 6, 2021

Ref. No: AIL/B-41/20211030 August 6,2021

To, Listing/Compliance DePartment BSE LTD. Phiroze JeejeebhoY Towers, Dalal Street, Mumbai - 400001.

BSE CODE -524208

To, Listing/Compliance DePartment National Stock Exchange of lndia Limited "Exchange Plaza" , Plot No. C/1 , G Block Bandra-Kurla ComPlex, Bandra (East), Mumbai - 400 051. NSE CODE:AARTIIND

Dear Sir/Madam,

• Ref.: Regulation 33 of 2015 the SEBI (LODR) Regulations,
• Sub: Audited Financial June 30, 2021 Results for the quarter ended

The Board of Directors at their meeting held today i.e, Friday, August 6,2021 interalia considered and approved the following;

• 'r Audited Standalone and Consolidated Financial Results for the Quarter ended June 30, 2021,
• ended June 30, 2021,
• Quarter ended June 30, 2021,

The Meeting of the Board of Directors commenced at 2:00 p'm. and concluded at 6';hSp m

Please take note of the same on your record.

Thanking you,

Yours faithfully, For AARTI INDUSTRIES LIM / (h{) RAJ{&aiYle COMPANY SECRET rcsrM. No. A15526 Encl.: as above.

www.aarti-industries.com I Cl N: L241 1 OGJ 1 984PLC007301

Admin. Office : 7'1, Udyog Kshetra, 2nd Floor, Mulund Goregaon Link Road, Mulund (W), Mumbai - 400080, INDIA' 1 : 022-67976666, F : 022-2565 3234 | E : info@aarti-industries.com \rA ?. n6an ^rnnaae

AUDITEDFINANCIALRESULTSFoRTHEQUARTERENDED30THJUNE202I

in Lakhs

?, I)'=

			Standalone ResultYear Ended
			3 Months Ended
Sr.	Particulars	30th Jun 2021	31st Mar 2021	30th Jun 2020	31st Mar 2021
No.		(Audited)	(Audited)	(Audited)	(Audited)
$\mathbf{1}$	INCOME
	Revenue from Operations (Gross)	149,678	127,173	99,670	480,782
	Less: GST Collected	18,275	12,862	9,186	49,111
	a) Revenue from Operations (Net)	131,403	114,311	90,484	431,671
	b)Other Income	1	9	1	195
	Total Income	131,404	114,320	90,485	431,866
$\overline{2}$	EXPENSES
	a)Cost of Materials Consumed	69,906	54,428	42,370	192,284
	b)Purchases of Stock-in-Trade	4,121	3,406	4,578	18,579
	c)Changes in Inventories of Finished Goods, Work-in-				(6, 541)
	progress and Stock-in-Trade	(11, 368)	(5, 517)	(3,671)
	d)Employee Benefits Expense	9,747	9,352	8,679	35,828
	e)Finance Costs	3,810	2,251	2,519	8,616
	f)Depreciation and Amortisation Expenses	6,684	6,234	4,877	21,831
	g)Other Expenses	28,329	27,782	20,936	98,069
	Total Expenses	111,229	97,936	80,288	368,666
3	Profit/(Loss) before Exceptional Items and Tax (1-2)	20,175	16,384	10,197	63,200
4	Exceptional Items
5	Profit/(Loss) before Tax (3-4)	20,175	16,384	10,197	63,200
6	TAX EXPENSES
	a)Current Year Tax	3,525	2,800	1,750	11,000
	b) Earlier Year Tax
	c) MAT Credit Utilised/(Entitlement)			(200)	(1, 350)
	d)Deferred Tax	400	200	500	2,200
	Total Tax Expenses	3,925	3,000	2,050	11,850
$\overline{7}$	Net Profit/(Loss) from Ordinary Activities after Tax (5-6)	16,250	13,384	8,147	51,350
8	Extraordinary Items (Net of Tax Expense `)
9	Net Profit/(loss) for the period (7-8)	16,250	13,384	8,147	51,350
	10 Profit/(loss) for the period attributable to
	a) Owners of the Company	16,250	13,384	8,147	51,350
	b)Non Controlling Interest
	11 Other Comprehensive Income	(302)	124	877
	12 Total Comprehensive Income for the period (Comprising
	Profit (Loss) and Other Comprehensive Income for the
	period) (10+11)	15,948	13,508	9,024	51,350
	13 Earnings per Equity share:
	(1) Basic	4.48	7.68	4.68	29.47
	(2) Diluted	4.66	7.68	4.68	29.47
	14 Earnings per Equity share: (after adjusting historic EPS
	numbers for Bonus issue of June 2021)
		4.48	3.84	2.34	14.74
	(1) Basic	4.66	3.84	2.34	14.74
	(2) Diluted	18,125	8,712	8,712	8,712
	15 Paid-up Equity Share Capital (Face Value of Rs. 5/-each)
16	Reserve excluding Revaluation Reserves as per BalanceSheet of previous Accounting Year				332,462
					USTRI E
				$\ll$

www.aarti-industries.com I Ct N: L241 1 OGJ 1 984PLC007301

Admin. Office : 71, Udyog Kshetra, 2nd Floor, Mulund Goregaon Link Road, Mulund (W), Mumbai - 400080,

T : 022-67 976666, F : 022-2565 3234 | E : info@aarti-industries.com

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AUDITED FINANCIAL RESUTTS FOR THE QUARTER ENDED 3OTH JUNE 2021

(s,32s) 37,138 8,637 23,131 102,463 384,225 66,455 65,455 11,603 (s80) 2,3t0 L2,933 53,522 53,522 52,347 1,175 4,794 57,L4L 30.04 30.04 103,512 9,779 93,733 22 93,755 42,939 5,499 (3,747]I 8,968 2,532 5,199 21,869 83,265 10,490 10,490 1,818 (148) 500 2,L7O 9,320 8,320 8,186 134 877 9,063 4.70 4.70 9,762 2,162 6,564 29,281 103,631 17,305 17,305 2,971 98 302 3,37L 13,934 13,934 13,610 324 9,947 3,829 5,859 29,34L 110,983 20,698 20,698 3,675 101 4t4 4,LgO 15,508 15,508 16,486 22 INCOME Revenue from OPerations (Gross) Less: GST Collected )Revenue from OPerations (Net) )Other lncome 'otal lncome EXPENSES a)Cost of Materials Consumed b)Purchases of Stock-in-Trade c)Changes in lnventories of Finished Goods, Work-inprogress and Stock-in-Trade )Employee Benefits ExPense )Finance Costs f)Depreciation and Amortisation Expenses g)Other Expenses Loss) before Exceptional ltems and Tax (1-2) Exceptional ltems Profit/(Loss) before Tax (3-4) a)Current Year Tax b)Earlier Year Tax c)MAT Credit Utilised/(Entitlement) )Deferred Tax Total Tax Expenses Net Profit/(Loss) from Ordinary Activities after Tax (5-5) Extraordinary ltems (Net of Tax Expense ') Profit/(loss) for the period (7-8) for the period attributable to )Owners of the ComPanY b)Non Controlling lnterest Other Comprehensive lncome Total Comprehensive lncome for the period (Comprising Profit (Loss) and Other Comprehensive lncome for the period) (10+11) rnings per Equity share: (1)Basic (2) Diluted Earnings per Equity share: (after adjusting historic EPS sfor Bonus issue of June 2021) (2) Diluted Paid-up Equity Share Capital (Face Value of Rs. S/-each) Reserve excluding Revaluation Reserves as per Balance 7 8 9 10 11 t2 13 t4 15 16

www.aarti-industries.com I Cl N: L241 1 OGJ 1 984PLC0O73O1

Admin. Office : 71, Udyog Kshetra, 2nd Floor, Mulund Goregaon Link Road, Mulund (W), Mumbai - 400080, .P+-0 ..-'- z r. INDA.

T : 022-67976666, F : 022-2565 3234 | E : info@aarti-industries.com

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(Rs in Lak

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Notes:-

• 1 TheaboveresultsforthequarterendedJune 30,2o2t,havebeenreviewedbytheAuditcommitteeandapprovedbytheBoardof Directors in their meetings held on August 6, 2021'
• 2 pursuant to the approval of shareholders in their Extra ordinary General Meeting held on June 14, 2021, the company has issued 17,42,34,47Afresh equity shares of Rs. 5 /- each as Bonus shares in proportion of 1:1 (i'e' one bonus share for every one equity share heldbytheshareholdersasontherecorddatei.e.June 23,202L.consequently,thebasicanddilutedearningspershareforthe quarterandyearendedMarch 3l,zo2tpresentedabovehavebeenadjustedtogiveeffecttotheaforesaidissueof bonusshares' Hence, to that extent the basic and diluted earnings per share for the quarter ended June 30,2o2o (for both standalone and Consolidated) are not comParable.
• 3 The company alloted 1,40,35,0g7 nos. of fresh Equity shares to the Qualified lnstitutional Buyers at the price of Rs' 855/- each (including premium of Rs. 850 /- each ) in respect of qualified institutional placement [QlP] made by the company on June 30'2o2!'
• 4pursuanttotheissueof Bonusshares&allotmentof sharesunderQlPissue,thepaidupequitysharescapital of thecompanyhasgone up to Rs 18,125 Lakhs.
• 5 The company has entered into forward contracts to hedge its export contracts. Mark to market gain/ (loss) for such contracts as at the end of reporting period is recognised in these statements. Mark to market gain/(loss) in respect of near term contracts amounting to Rs' 157 Lakhs is expensed off in the above p&L statement, while mark to market gain/(loss) in respect of long term contracts amounting to Rs. g7g Lakhs is adjusted under other comprehensive lncome. The component adjusted under other Comprehensive lncome will be appropriately treated in P&L when the underlying cash-flow impact accrues'
• 6 The company had further recognised revaluation gain/(loss) to the extent of (Rs. 1,311) Lakhs in respect of its long term borrowings (ECBs) as at 30th June, 2021 and included the same in its Finance costs appearing above'
• 7 The Company has retained its Long Term lssuers & Bank Facilities credit ratings of AA-/Positive- from cRlslL and AA/stable from lndia Ratings.
• gThe Company has repaid Commercial papers on their respective due dates. The Commercial Papers (Listed) outstanding as on June 30' 2021 was Rs, 40,000 Lakhs. The Commercial papers (short Term Debt) has been rated by lndia Rating and cRlslL and assigned is A1+ rating by both the ratinB agencies.
• g Figures for the previous period have been regrouped or rearranged wherever necessary.
• 10 The aforesaid Audited Financial Results will be uploaded on the company's website www.aarti-industries.com and will also be available on the website of BSE Limited www.bseindia.com and the National Stock Exchange of lndia Limited www'nseindia.com for the benefit of the shareholders and investors.

Place: Mumbai Date: August 6,2O2t

For AARTI INDUSTRIES LIM| , . ./ /sy -* {E(a

RAJENDRA V, GOqF}-- \ \

www.aarti-industries.com I C! N: L241 1 OGJ 1 984PLC007301

Admin. Office : 71, Udyog Kshetra, 2nd Floor, Mulund Goregaon Link Road, Mulund (W), Mumbai - 400080, lNDlA.

T : 022-67976666, F : 022-2565 3234 | E : info@aarti-industries.com i<nE n:^r \r^l^^l li.lnlA T ' n/)an OiinnaAA SEGMENTWISE REVENUE, RESULTS AND SE6MENT ASSETS & LIABLITIES ALONG WITH THE RESULT UNDER REGULATION 33 OF SEBI (LtsTtNG OBLIGATION & DISCLOSURE RqUIREMENTS) REGULATIONS, 201s

AARTI

LIMITED

INDUSTRIES

					(Rs in Lakhs
		Standalone Result
		3 Months Ended			Year Ended
Sr.	Particulars	30th Jun 2021	31st Mar 2021	30th Jun 2020	31st Mar 2021
No.		lAudited)	(Audited)	(Audited)	(Audited)
1	Segment Revenue (Gross)
	a) Speciality Chemicals	L25,655	to4,790	80,243	393,s94
	b) Pharmaceuticals	24,O23	22,383	19,427	87,188
	Total Revenue (Gross)	t49,678	t27,L73	99,67O	48O,782
	Less: GST Collected	t8,275	12,862	9,186	49,777
	Total Revenue (Net)	131,403	114,311	90,484	43t,671
2	Segment Results Profit / (Loss)
	(Before Tax and lnterest from each Segment)	23,1O7	1-9,846	12,545	71,292
	a) Speciality Chemicals	4,765	4,748	4,531	20,458
	b) PharmaceuticalsTotal	27,872	24,594	Lt,076	9L,750
			2,257	2,5t9	8,616
	Less: lnterest	3,810		4,360	19,934
	Expenditure (Net)Other UnallocableTotal Profit before Tax	3,88720,L75	5,95916,384	70,L97	63,200
3	Segment Assets		554,606	476,270	5s4,606
	a) Speciality Chemicals	590,467	t79,299	97,922	1r9,299
	b) Pharmaceuticals	t24,952		35,853	36,870
	c) Unallocated CaPital	43,506	36,870		7L0,775
	Total	758,925	7L0,775	510,045
	Segment Liablities
	a) Speciality Chemicals	132,680	t24,O49	113,990	124,O49
	b) Pharmaceuticals	t4,693	16,319	11,478	16,319
	c) Unallocated CaPital	22,898	21,098	19,398	21,098
	Total	L70,27L	L6L,466	144,866	16L,466

www.aarti- industries. com I Cl N : L241 1 OGJ 1 984PLC007301

Admin. Office : 71, Udyog Kshetra, 2nd Floor, Mulund Goregaon Link Road, Mulund (W), Mumbai - 400080, lNDlA.

f : 022-67976666, F : 022-2565 3234 | E : info@aarti-industries.com

sEGMENTWTSE REVENUE, RESULTS AND SEGMENT ASSETS & L|ABL|IES ALONG WlrH THE RESULT UNDER REGUTATION 33 OF SEBI (LtsTtNG OBLTGATION & DISCLOSURE RQUIREMENTS) REGULATIONS, 2015 in Lakhs

		Consolidated Result
			Year Ended
Sr.	Particulars	30th Jun 2021	3 Months Ended31st Mar 2021	30th Jun 2020	31st Mar 2021
No.		(Audited)	(Audited)	(Audited)	(Audited)
1	Segment Revenue (Gross)
	a) Speciality Chemicals	726,372	L12,297	84,085	4t5,740
	b) Pharmaceuticals	24,023	22,383	19,427	87,188
	Total Revenue (Gross)	150,335	134,580	L03,572	502,328
	Less: GST Collected	18,559	t3,745	9,779	5L,7t8
	Total Revenue (Net)	L31,676	120,935	93,733	450,610
2	Segment Results Profit / (Loss)
	(Before Tax and lnterest from each Segment)
	a) Speciality Chemicals	23,715	20,967	12,962	75,275
	b) Pharmaceuticals	4,765	4,748	4,531	20,458
	Total	28,480	25,7L5	77,493	95,733
	Less: lnterest	3,829	2,1.52	2,532	8,637
	Other Unallocable Expenditure (Net)	3,9s3	6,248	4,47].	20,64t
	Total Profit before Tax	20,698	17,305	10,490	66,455
3	Segment Assets	600,573	563,860	498,282	563,860
	a) Speciality Chemicals	124,952	719,299	9'1 ,922	t19,299
	b) Pharmaceuticals		39,777	36,668	39,777
	c) Unallocated CapitalTotal	45,263770,788	722,936	632,872	722,936
	Segment Liablities
	a) Speciality Chemicals	132,631	t23,730	115,314	L23,730
	b) Pharmaceuticals	14,693	16,319	17,478	16,3 19
	c) Unallocated CaPital	24,L53	23,394	2t,601	23,394
	Total	ttt,477	L63,443	148,393	t63,443

Notes:-

1. Figures for the previous period have been regrouped or rearranged wherever necessary.

For AARTI INDUSTRIES tlMlTED ,*f -,# RAJENDRA V. GOGRI CHAIRMAN AND MANAGING DIRECTOR r\ <l -l

Place : Mumbai Date: August 6,2021

@lffii,*=-

www.aarti-industries.com I GIN: L241 1 OGJ 1 984PLC007301

Admin. Office : 71, Udyog Kshetra, 2nd Floor, Mulund Goregaon Link Road, Mulund (W), Mumbai - 400080, lNDIA.

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INDEPENDENT AUDITOR'S REPORT TO THE BOARD OF DIRECTORS OF AARTI INDUSTRIES LIMITED

Report on the audit of the Standalone Financial Results

Opinion

We have audited the accompanying standalone quarterly financial results of Aarti Industries Limited ("the company") for the quarter ended June, 2021 and the year to date results for the period from April 1, 2021 to June 30, 2021, attached herewith, being submitted by the company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("Listing Regulations").

In our opinion and to the best of our information and according to the explanations given to us these standalone financial results:

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

ii. give a true and fair view in conformity with the recognition and measurement principles laid down in the applicable accounting standards and other accounting principles generally accepted in India of the net profit and other comprehensive income and other financial information for the quarter ended June 30, 2021 as well as the year to date results for the period from April 1, 2021 to June 30, 2021.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013 (the Act). Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Standalone Financial Results section of our report. We are independent of the Company 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 results under the provisions of the Companies Act, 2013 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 we have obtained is sufficient and appropriate to provide a basis for our opinion.

Management's Responsibilities for the Standalone Financial Results

These quarterly financial results as well as the year to date standalone financial results have been prepared on the basis of the interim financial statements. The Company's Board of Directors are responsible for the preparation of these financial results that give a true and fair view of the net profit and other comprehensive income and other financial information in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, 'Interim Financial Reporting' 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. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company 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 design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial results that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial results, the Board of Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Results

Our objectives are to obtain reasonable assurance about whether the standalone 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 standalone financial results.

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

• Identify and assess the risks of material misstatement of the standalone 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, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.
• 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 Company's ability 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 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 Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the standalone financial results, including the disclosures, and whether the financial results represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance 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.

For Kirtane & Pandit LLP Chartered Accountants FRN: 105215W/W100057

Milind Bhave Partner M No. 047973

UDIN: 21047973AAAADF1720

Place: Mumbai Date : August 06, 2021

INDEPENDENT AUDITOR'S REPORT

TO THE BOARD OF DIRECTORS OF

AARTI INDUSTRIES LIMITED

Report on the audit of the Consolidated Financial Results

Opinion

We have audited the accompanying Statement of Consolidated Financial Results of Aarti Industries Limited ("Holding company") and its subsidiaries (holding company and its subsidiaries together referred to as "the Group") for the quarter ended June 30, 2021 and for the period from April 1, 2021 to June 30, 2021 ("the Statement"), 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"). Attention is drawn to the fact that the consolidated figures for the corresponding quarter ended June 30, 2021 and the corresponding period from April 1, 2021 to June 30, 2021, as reported in these financial results have been approved by the holding company's Board of Directors, but have not been subjected to audit.

In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of the reports of the other auditors on separate financial statements/ financial information of subsidiaries, the Statement:

• a. includes the results of the following entities:

  • i. Aarti Corporate Services Limited
  • ii. Shanti Intermediates Private Limited (through its Holding Company: Aarti Corporate Services Limited)
  • iii. Nascent Chemical Industries Limited (through its Holding Company: Aarti Corporate Services Limited)
  • iv. Alchemie (Europe) Limited
  • v. Innovative Envirocare Jhagadia Limited
  • vi. Aarti USA Inc.
  • vii. Aarti Polychem Private Lmited
  • viii. Aarti Bharuch Limited
  • ix. Aarti Organics Limited
  • x. Aarti Spechem Limited
  • xi. Aarti Pharmachem Limited

• b. is presented in accordance with the requirements of Regulation 33 of the Listing Regulations, as amended; and

• c. gives a true and fair view, in conformity with the applicable accounting standards, and other accounting principles generally accepted in India, of consolidated total comprehensive income (comprising of net profit and other comprehensive income) and other financial information of the Group for the quarter ended June 30, 2021 and for the period from April 1,2021 to June 30,2021.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013 (the Act). 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 Companies Act, 2013 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.

Management's Responsibilities for the Consolidated Financial Results

These quarterly financial results as well as the year to date consolidated financial results have been prepared on the basis of the interim 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 profit and other comprehensive income and other financial information of the Group in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, 'Interim Financial Reporting' 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 results 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 concern, 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 Results

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.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism 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, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.

• 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/financial information 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.

We communicate with those charged with governance of the Holding Company and such other entities included in the consolidated financial results of which we are the independent auditors 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.

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.

Other Matters

The consolidated Financial Results include the financial results of 11 subsidiaries and 1 jointly controlled entity, whose interim Financial Statements/Financial Results/ financial information reflects Group's share of total revenue of Rs. 111.38 Cr and Group's share of total net profit after tax of Rs.45.66 Cr for the quarter ended June 30, 2021 and for the period from April 1, 2021 to June 30, 2021, as considered in the consolidated Financial Results, which have been audited by their respective independent auditors. The independent auditors' reports on interim financial statements/Financial Results/financial information of these entities have been furnished to us and our opinion on the consolidated Financial Results, in so far as it relates to the amounts and disclosures included in respect of these entities, is based solely on the report of such auditors and the procedures performed by us are as stated in paragraph 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 and the Financial Results/financial information certified by the Board of Directors.

For Kirtane & Pandit LLP, Chartered Accountants FRN: 105215W/W100057

Milind Bhave Partner M No. 047973 UDIN: 21047973AAAADH9706 Place: Mumbai Date: August 6, 2021