Cosmo First Limited — Interim / Quarterly Report 2021

Aug 4, 2021

CFL/SEC/SE/PS/2021-22/AUGUST/03 August 04,2021

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Sub: Un-audited Financial Results for the quarter ended on June 30,2021 and Outcome of Board Meeting

Dear Sir,

Pursuant to Regulation 30 read with Part A of Schedule III and Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform that the Board of Directors of the Company at its meeting held today i.e. August 04, 2021, has inter alia approved the following:

• 1. Un-audited Financial Results of the Company for the Quarter ended as on 30th June, 2021. The Financial Results were duly reviewed by the Audit Committee and thereafter approved by the Board of Directors of the Company along with Limited Review Report thereon.
• 1. Re-classification of Ms. Abha Jaipuria (former wife ofMlr. Ashok Jaipuria) holding 22667 Equity shares of the Company (0.12%) from promoter to public category. The Company in due course will file the application with the Exchanges for the same.

The Meeting commenced at 4.00 P.M. and concluded at ^ . —> ^ f - / "/'

You are requested to take the same on your records

Thanking You

Yours faithfully For Cosmo Films Limited

e

Jyoti i^xit Company Secretary & Compliance Officer

End: a/a

Limited Review Report on Unaudited Standalone Quarterly Financial Results

To the Board of Directors of Cosmo Films Limited

• 1. We have reviewed the accompanying statement of unaudited standalone financial results of Cosmo Films Limited ("the Company") for the quarter ended 30 June 2021 ("the Statement"), being submitted by the Company pursuant to the requirements of Regulation 33 of the Securities and Exchange Board of India ("the SEBI") (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended. This Statement which is the responsibility of the Company's management and approved by the 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. Our responsibility is to issue a conclusion on the Statement based on our review.
• 1. 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 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.
• 1. Based on our review conducted as 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 the aforesaid Ind AS and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement.

For S.N. Dhawan & CO LLP

Chartered Accountants Firm Registration No.: 000050N/N500045

Rajeev Kumar Saxena Partner Membership No.: 077974 UDIN: 21077974AAAADR5856

Place: Noida Date: 04 August 2021

COSMO FILMS LIMITED UNAUDITED STANDALONE FINANCIAL RESULTS

					(Rs in Crores)
			3 months ended
S.No	Particulars	30.06.2021	31.03.2021	30.06.2020	31.03.2021
		Unaudited	AuditedRefer Note-2	Unaudited	Audited
	Income:
	a) Revenue from operations	647.94	605.56	455.72	2,082.91
	b) Other income	9.96	12.82	5.99	35.51
	Total income	657.90	618.38	461.71	2,118.42
$\mathbf{H}$	Expenses:
	a) Cost of materials consumed	457.57	404.06	284.88	1,350.18
	b) Changes in inventories of finished goods	(40.05)	(17.49)	(8.70)	(52.54)
	and stock-in-trade
	c) Employee benefits expense	40.96	44.23	33.75	152.20
	d) Depreciation and amortisation expenses	13.31	12.97	13.03	52.50
	e) Finance costs	11.14	8.31	11.68	39.71
	f) Allowance for expected credit losses	0.08	0.38	0.55	1.06
	g) Other expenses	79.28	75.65	59.87	269.88
	Total expenses	562.29	528.11	395.06	1,812.99
Ш	Profit before tax (I-II)	95.61	90.27	66.65	305.43
IV	Tax expense:
	a) Current tax	19.62	14.39	12.96	53.66
	b) Deferred tax expense/ (credit)	8.75	10.89	6.48	36.22
	Income tax expense	28.37	25.28	19.44	89.88
V	Net profit for the period (III-IV)	67.24	64.99	47.21	215.55
VI	Other comprehensive income
a)	i) Items that will not be reclassified to profit or loss	(0.17)	(7.10)	(0.17)	(7.61)
	Income tax related to above	0.06	2.48	0.06	2.66
b)	i) Items that will be reclassified to profit or loss	6.16	11.64	10.11	11.39
	Income tax related to above	(2.11)	(3.59)	(3.48)	(3.44)
	Total other comprehensive income (net of tax)	3.94	3.43	6.52	3.00
VII	Total comprehensive income for the period (V+VI)	71.18	68.42	53.73	218.55
VIII	Paid - up equity share capital (Face Value Rs.10)	18.17	18.17	19.44	18.17
IX	Other equity as per balance sheet				816.11
X	Earnings per share for the period (of Rs 10/- each)
	(not annualised)
	Basic (Rs.)	37.66	36.47	24.91	115.57
	Diluted (Rs.)	37.08	36.08	24.90	114.39

Notes:

The above unaudited financial results were reviewed by the Audit Committee and approved by the Board of Directors on 4th August 2021 and 1 limited review of the same has been carried out by the statutory auditors of the company.

Figures for the quarter ended 31st March 2021 are the balancing figures between the audited figures for the full financial year ended 31st $\overline{2}$ March 2021 and the published year to date figures upto the third quarter of the said financial year.

• These financial results have been prepared in accordance with the recognition and measurement principles of applicable Indian Accounting 3 Standards ('Ind AS') notified under the Companies (Indian Accounting Standards) Rules, 2015 as specified in section 133 of the Companies Act, 2013.
• During FY 20-21, the Company bought back 12.67 lakhs equity shares (6.52% of equity capital) through the "Tender Offer" route at a price of $\overline{4}$ Rs. 576 per share. Consequently, the paid-up equity share capital has reduced from Rs. 19.44 crores to Rs. 18.17 crores.
• Tax Liability is based upto the estimated tax computation for the whole year and excess/short provision, if any will be adjusted in the last quarter. 5
• $6\phantom{1}6$ Figures for the previous period have been regrouped wherever required.

New Delhi 4th August 2021

Jay Min ASHOK JAIPURIA CHAIRMAN

Limited Review Report on Unaudited Consolidated Quarterly Financial Results

To the Board of Directors of Cosmo Films Limited

• 1. We have reviewed the accompanying statement of unaudited consolidated financial results of Cosmo Films Limited ("the Parent") and its subsidiaries (the Parent and its subsidiaries together referred to as "the Group") for the quarter ended 30 June 2021 ("the Statement"), being submitted by the Parent pursuant to the requirement of Regulation 33 of the Securities and Exchange Board of India ("the SEBI") (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.
• 1. This Statement, which is the responsibility of the Parent's management and approved by the Parent'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, read with relevant rules issued thereunder, and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
• 1. 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. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical 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.

We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33 (8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, to the extent applicable.

• 1. The Statement includes the results of the following entities:
  • a. Cosmo Films Singapore Pte Ltd.
  • b. Cosmo Films Korea Limited
  • c. Cosmo Films Japan, GK
  • d. Cosmo Films Inc.
  • e. CF (Netherlands) Holdings Ltd B.V.
  • f. CF Investment Holding Private (Thailand) Company Limited
  • g. Cosmo Films Poland Sp z.o.o.
  • h. Cosmo Speciality Chemicals Private Limited
• 1. Based on our review conducted and procedures performed as stated in paragraph 3 above and based on the consideration of the review report of the other auditor referred to in paragraph 6 below, 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 Ind AS and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement.
• 1. We did not review the interim financial information of one subsidiary included in the Statement, whose interim financial information reflect total revenues of Rs. 91.50 crores, total net profit after tax of Rs. 20.43 crores and total comprehensive income of Rs. 22.77 crores (after eliminating intra-group transactions), for the quarter ended 30 June 2021, as considered in the Statement. These interim financial information have been reviewed by other auditor whose report has been furnished to us by the management and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of this subsidiary, is based solely on the report of the other auditor and the procedures performed by us as stated in paragraph 3 above.

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

1. The Statement includes the financial information of seven subsidiaries which have not been reviewed, whose financial information reflect total revenues of Rs. 65.88 crores, total net profit after tax of Rs. 6.67 crores and total comprehensive income of Rs. 7.20 crores (after eliminating intra-group transactions), for the quarter ended 30 June 2021, as considered in the Statement. These interim financial information have been furnished to us by the management of the Parent 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 such unreviewed interim financial information. According to the information and explanations given to us by the management, these interim financial information are not material to the Group.

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

For S.N. Dhawan & CO LLP Chartered Accountants Firm Registration No.: 000050N/N500045

Rajeev Kumar Saxena Partner Membership No.: 077974 UDIN: 21077974AAAADS3184

Place: Noida Date: 04 August 2021

COSMO FILMS LIMITEDUNAUDITED CONSOLIDATED FINANCIAL RESULTS

					(Rs in Crores)
S.No	Particulars		3 months ended
		30.06.2021	31.03.2021	30.06.2020	31.03.2021
		Unaudited	Audited	Unaudited	Audited
	Income:
	a) Revenue from operations	687.60	671.80	481.29	2,285.18
	b) Other income	10.91	13.23	5.74	37.74
	Total income	698.51	685.03	487.03	2,322.92
$\mathbf{H}$	Expenses:
	a) Cost of materials consumed	484.98	429.07	305.56	1,436.06
	b) Purchase of traded goods	0.40	0.16	0.08	0.62
	c) Changes in inventories of finished goods	(67.90)	(10.78)	(21.56)	(36.34)
	and stock-in-trade
	d) Employee benefits expense	51.50	54.80	42.88	193.04
	e) Depreciation, amortisation and impairment expenses	14.40	16.31	14.09	59.22
	f) Finance costs	11.65	8.75	12.34	41.68
	g) Allowance for expected credit losses	0.20	0.60	0.38	1.12
	h) Other expenses	86.91	85.22	66.87	298.78
	Total expenses	582.14	584.13	420.64	1,994.18
Ш	Profit before tax (I-II)	116.37	100.90	66.39	328.74
IV	Tax expense:
	a) Current tax	20.72	16.03	12.97	55.65
	b) Deferred tax expense/ (credit)	8.93	10.42	6.43	36.19
	Income tax expense	29.65	26.45	19.40	91.84
$\mathsf{V}$	Net profit for the period (III-IV)	86.72	74.45	46.99	236.90
VI	Other comprehensive income
a)	i) Items that will not be reclassified to profit or loss	(0.17)	(7.10)	(0.17)	(7.61)
	Income tax related to above	0.06	2.48	0.06	2.66
b)	i) Items that will be reclassified to profit or loss	8.84	9.97	13.05	14.26
	Income tax related to above	(1.94)	(4.12)	(3.45)	(3.62)
	Total other comprehensive income (net of tax)	6.79	1.23	9.49	5.69
VII	Total comprehensive income for the period (V+VI)	93.51	75.68	56.48	242.59
VIII	Paid - up equity share capital (Face Value Rs.10)	18.17	18.17	19.44	18.17
IX	Other equity as per balance sheet				835.69
$\times$	Earnings per share for the period (of Rs 10/- each)
	(not annualised)
	Basic (Rs.)	48.56	41.79	24.80	127.02
	Diluted (Rs.)	47.82	41.34	24.79	125.72

REPORTING OF SEGMENTWISE REVENUE, RESULTS, ASSETS AND LIABILITIES

	3 months ended			Year ended
	Particulars	30.06.2021	31.03.2021	30.06.2020	31.03.2021
			Audited
		Unaudited	Refer Note-2	Unaudited	Audited
	a) Segment revenue
	Packaging films	684.56	671.50	481.08	2,283.17
	Others	3.04	0.30	0.21	2.01
	Sub total	687.60	671.80	481.29	2,285.18
	Less: Inter segment revenue
	Total	687.60	671.80	481.29	2,285.18
b)	Seament results
	Profit before tax and interest
	Packaging films	135.45	115.71	83.21	389.93
	Others	0.37	0.12	0.06	1.09
	Sub Total	135.82	115.83	83.27	391.02
	Less: Finance costs	11.65	8.75	12.34	41.68
	Less: Unallocable expenses net of unallocable income	7.80	6.18	4.54	20.60
	Profit from ordinary activity before tax	116.37	100.90	66.39	328.74
c)	Segment assets
	Packaging films	1,949.75	1,776.42	1,761.66	1,776.42
	Others
	Unallocated	379.31	348.91	269.03	348.91
	Total	2,329.06	2,125.33	2,030.69	2,125.33
d)	Segment liabilities
	Packaging films	437.88	411.85	368.62	411.85
	Others
	Unallocated	950.91	859.62	864.50	859.62
	Total	1,388.79	1,271.47	1,233.12	1,271.47

-11 RED ACC

My

Notes:

• $\mathbf{1}$ The above unaudited financial results were reviewed by the Audit Committee and approved by the Board of Directors on 4th August 2021 and limited review of the same has been carried out by the statutory auditors of the company.
• $\overline{2}$ Figures for the quarter ended 31st March 2021 are the balancing figures between the audited figures for the full financial year ended 31st March 2021 and the published year to date figures upto the third quarter of the said financial year.
• These financial results have been prepared in accordance with the recognition and measurement principles of applicable Indian Accounting Standards $\mathbf{3}$ ('Ind AS') notified under the Companies (Indian Accounting Standards) Rules, 2015 as specified in section 133 of the Companies Act, 2013.
• $\overline{4}$ During FY 20-21, the Company bought back 12.67 lakhs equity shares (6.52% of equity capital) through the "Tender Offer" route at a price of Rs. 576 per share. Consequently, the paid-up equity share capital has reduced from Rs. 19.44 crores to Rs. 18.17 crores.
• 5 Key numbers of standalone financial results are as given below. The standalone financial results are available at Company's website.

Particulars		3 months ended
	30.06.2021	31.03.2021	30.06.2020	31.03.2021
	Unaudited	AuditedRefer Note-2	Unaudited	Audited
Income from operations	647.94	605.56	455.72	2,082.91
Profit from ordinary activities before tax	95.61	90.27	66.65	305.43
Profit from ordinary activities after tax	67.24	64.99	47.21	215.55

$,6,$ Tax Liability is based upto the estimated tax computation for the whole year and excess/short provision, if any will be adjusted in the last quarter.

$\overline{7}$ Figures for the previous period have been regrouped wherever required.

New Delhi 4th August 2021

ay SHOK JAIPURIA CHAIRMAN