Cummins India Ltd. — Annual Report 2019

May 22, 2019

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Ref: STEX/SECT/2019

May 22, 2019

The Relationship Manager, DCS-CRD BSE Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai 400 001 BSE Scrip Code:500480	National Stock Exchange of India Limited Exchange Plaza, 5thFloor, Plot No. C/1, G Block, Bandra – Kurla Complex, Bandra (East), Mumbai 400 051 NSE Symbol:CUMMINSIND

Subject: Outcome of the Board Meeting – Audited Financial Results, Statutory Auditors’ Report for the year ending March 31, 2019, and recommendation of Final Dividend for FY 2018-19.

Dear Sir/ Madam,

1. Audited Financial Results with Auditors’ Report.

In terms of Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing a copy of the standalone and consolidated audited financial results for the quarter and year ended March 31, 2019. The Board of Directors have approved these results at their meeting held on May 22, 2019. We are also enclosing a copy of auditors’ report given by the Statutory Auditors’ of the Company for the said results.

2. Recommendation of Final Dividend for the FY 2018-19.

We also wish to inform the exchange that the Board of Directors have recommended

Final Dividend of Rs. 10/- per equity shares on 277,200,000 equity shares (Face Value Rs. 2/- each fully paid up) for the financial year ended on March 31, 2019 in addition to the interim dividend of Rs. 7/- per share declared on February 06, 2019. The dividend warrants for the said final dividend will be dispatched by September 02,

Cummins India Limited Registered Office Cummins India Office Campus Tower A, 5[th] Floor, Survey No. 21, Balewadi Pune 411 045 Maharashtra, India Phone +91 20 67067000 Fax +91 20 67067015 cumminsindia.com cil.investors@notes.cummins.com

CIN : L29112PN1962PLC012276

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2019 and the dividend will be paid on September 05, 2019.

3. Intimation of Book Closure for the Final Dividend & AGM.

In terms of Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the details of book closure at the time of Annual General Meeting (‘AGM’) and for ascertaining entitlement of final dividend for the FY

2018-19, subject to the approval of shareholders at the ensuing AGM, are as under:

Stock Exchange	Security Code	Type of Security	Book Closure	Purpose
BSE	500480	Equity Shares of the face value of Rs. 2/- each fully paid.	August 02, 2019 to August 07, 2019 (both days inclusive).	1. Annual Book Closure for AGM to be held on August 7, 2019. 2. Payment of final dividend of Rs. 10/- per equity share for the FY 2017-18, subject to the approval of shareholders atAGM.
NSE	CUMMINSIND

Kindly take this intimation on your record.

Thanking you,

Yours faithfully, For Cummins India Limited

Digitally signed by HEMIKSHA HEMIKSHA January@2019 BHOJWANI BHOJWANI Date: 2019.05.22 16:25:55 +05'30'

Hemiksha Bhojwani Compliance Officer Membership Number: ACS22170

Encl.: As above.

(This letter is digitally signed).

Cummins India Limited Registered Office Cummins India Office Campus Tower A, 5[th] Floor, Survey No. 21, Balewadi Pune 411 045 Maharashtra, India Phone +91 20 67067000 Fax +91 20 67067015 cumminsindia.com cil.investors@notes.cummins.com

CIN : L29112PN1962PLC012276

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CUMMINS INDIA LIMITED

Registered Office: Cummins India Office Campus, Tower A, 5th Floor, Suivey No. 21, Balewadi, Pune 411045, Maharashtra, India

[CIN: L29112PN1962PLC012276], Telephone: 020 67067000, Fax: 020 67067015,

Email : cll.investors@notes.cummins.com, Website: www.cumminsindia.com

Audited standalone and consolidated financial results for the quarter and year ended March 31, 2019

		Audited standalone and consolidated fi	nancial results for	the quarter and y	ear ended March	31, 2019
											(f Lacs)
	Particulars				Standalone				Consolidated
				Quarter ended		Year	ended		Year ended
			March 31, 2019	December 31,	March 31, 2018	March 31, 2019	March	31, 2018	March 31, 2019	March	31, 2018
				2018
			(Audited)	(Unaudited)	(Audited)	(Audited)	(Audited)		(Audited)	(Audited)
			(Note 6)		(Note 6)
1	Income
	(a)Revenue from operations
	Sales/Income from operations (Note 4 & 5)		131,440	146,327	120,579	552,571		503,034	556,455		506,020
	Other operating income		2,597	4,048	2,741	13,329		13,072	13,276		13,025
	(b)Other income		6,921	7,553	6,640	29,277		22,847	23,507		16,131
	Total Income		140,958	157,928	129,960	595,177		538,953	593,238		535,176
	Expenses
	(a) Cost of materials consumed		67,809	67,864	64,879	270,601		253,136	268,883		251,699
	(b)Purchases of traded goods		22,850	28,285	17,525	S4,687		68,673	97,109		70,662
	(c)Change in inventories of finished goods, work-in-progress and traded goods (d)Excise duty on sale of goods (Note 4)		(2,494)	1,561 -	(2,096) -	(3,942)		4,001 7,856	(4,001)		4,084 7,856
	(e)Employee benefits expense		13,464	13,788	11,797	54,580		49,791	56,191		51,125
	(� Finance cost (g)Depreciation and amortisation expense		452 2,798	414 2,793	342 2,728	1,620 11,032		1,483 9,379	1,677 11,110		1,519 9,438
	(h)Other expenses		15,227	16,203	13,910	63,564		59,404	64,644		60,328
	Total expenses		120,106	130,908	109,085	492,142		453,723	495,613		456,711
	Profit before exceptional items	and tax (1-2)	20,852	27,020	20,875	103,035		85,230	97,625		78,465
	Exceptional items (Note 7)			-	-			5,612			5,612
5	Profit after exceptional items before share of profit of joint ventures and associate and before tax (3+4)		20,852	27,020	20,875	103,035		90,842	97,625		84,077
6 7	Share of profit of joint ventures and associate after tax Profit before tax(5+6)		20,852	- 27,020	- 20,875	103,035		90,842	9,264 106,889		8,578 92,655
	Tax expense
	(a)Current tax (b)Deferred tax		6,680 80	7,726 585	4,035 518	29,384 1,394		18,874 921	30,693 1,947		20,332 976
	(c) Tax for earlier years			-	200			200	(12)		165
10 11 12	Total tax expenses Profit after tax (7-8) Other comprehensive income Income tax effect Net other comprehensive income/{expense) not to be reclassified to profit or loss in subsequent periods (10+11)		6,760 14,092 (1,174) 410 (764)	8,311 18,709 (269) 94 (175)	4,753 16,122 57 (21) 36	30,778 72,257 (1,844) 644 (1,200)		19,995 70,847 190 (67) 123	32,628 74,261 (1,854) 647 (1,207)		21,473 71,182 199 (69) 130
13	Share in joint venture's and associate's OCI after tax (net), not to be reclassified to profit or loss'" subsequent periods			-	-				3		18
14	Other comprehensive incomeI	(expense) for the year, net of tax (12+13)	(764)	(175)	36	(1,200)		123	(1,204)		148
15 16	Total comprehensive income for the year, net of tax (9+14) Paid-up equity share capital (Face value f 2 each)		13,328 5,544	18,534 5,544	16,158 5,544	71,057 5,544		70,970 5,544	73,057 5,544		71,330 5,544
17	Other equity					407,501		393,063	422,754		406,316
18	Earnings per share
	Basic and diluted EPS for the per	iod on net profit (Not annualized for the quarters) (f)	5.08	6.75	5.82	26.07		25.56	26.79		25.68

Notes

• 1 The Consolidated financial results include results of the following companies

The Consolidated financial results include results of the following companies
Name of the Company Cummins Sales & Service Private limited Cummins Generator Technologies India Private Limited Va!voline Cummins Private Limited Cummins Research and Technology India Private limited	As at March 31, 2019 % holding Consolidated as 100% Subsidiary 48.54% Associate 50% Joint Venture 50% Joint Venture As at March 31, 2018 % holdlna Consolidated as 100% Subsidiary 48.54% Associate 50% Joint Venture 50% Joint Venture
		Consolidated as
		Subsidiary Associate Joint Venture Joint Venture

• STATEMENT OF ASSETS AND LIABILITIES

STATEMENT OF ASSETS AND LIABILITIES
								(' Lacs
Parlculars			Standalone As at March 31, As at March 31, 2019 2018 (Audited) (Audited)			Consolidated As at March 31, As at March 31, 2019 2018 (Audited) (Audited) 128,396 128,435 15,853 3,868 72,802 73,110 314 547 22,026 19,716 522 533 1,919 484 9,341 8,955 11,997 12,821
ASSETS Non-current asset Property, plant and equipment Capital work-in-progress (including investment proper in progress) Investment properties Intangible assets Investments in subsidiary, joint ventures and associate Financial assets Investments Other financial assets Income tax assets (net) Other non-current assets Current assets Inventories Financial assets Investments Loans Trade receivables Cash and cash equivalents Other bank balances other current financial assets Other current assets Assets dassifed as held for sale EQUITY AND LIABILITIES Equity Equity share cpital Other equity Retained earnings other reserves Non-current liabllltles other financial liabilities Provisions Deferred tax liabilities (net) Other non-current liabilities Current liabilities Financial liabilities Borrowings Trade Payables Total outstanding dues from micro and small enterprses TOTAL Total outstanding dues of creditors other than micro and small enterprises other current fnancial liabilities Other current liabilities Provisions TOTAL			128,229 128,275 15,851 3,795 72,802 73,110 246 540 3,735 3,735 522 533 1,886 446 9,279 8,918 11,997 12,821			128,396 15,853 72,802 314 22,026 522 1,919 9,341 11,997
			24,547 232,173 62,536 53,748 24,272 50,601 12,866 127,269 132,625 19,534 15,231 54,259 31,857 35,957 7,001 16,597 16,609 386 412 340,810 320,950 585,357 553 123 5,544 5,544 292,447 278,201 115,054 114,862			263,170 63,285 24,272 - 128,359 19,546 54,259 36,052 16,698 386	248,469 54,438 50,601 12,866 133,818 15,232 31,857 7,064 16.721 412
						342,857	323,009
						606,027 571,478 5,544 5,544 307,700 291,454 115,054 114,862 428,298 411,860 2,677 2,842 7,467 4,440 13,966 6,525 206 213 24,316 14,020
			413,045 2,677 7,267 9,876 206	398,607 2,842 4,288 2,988 213 10,331
			20,026				14,020
			30,916 2,371 80,140 15,948 5,892 17,019	25,154 847 74,955 22,392 5,604 15,233		31,259 25,684 2,400 847 80,141 75,106 16,123 22,555 6,460 6,161 17,030 15,245 153,413 145,598 606,027 571,478
			152,286	14,185 553,123
			585,357

1. This statement has been reviewed by the Audit Committee and approved by the Board of Directors at !Is meeting held on May 22, 2019.

2. Post implementation of Goods and Service Tax ('GST') w.e.f. July 1, 2017, revenue from operations is required to be disclosed net of GST. Revenue from operations for the year ended March 31, 2018, to the extent it pertains to quarter ended June 30, 2017, includes excise duty. The revenue from operations for the year ended March 31, 2019 is not comparable with the same for the year ended March 31, 2018 to the extent of excise duty, as mentioned above.

3. Ind AS 115, Revenue from contracts with customers, became applicable with effect from April 1, 2018. With the adoption of Ind AS 115, no significant adjustments were required to be made to the retained earnings as at April 1, 2018. Also, application of Ind AS 115 did not have any significant impact on recognition and measurement of revenue for the quarter and year ended March 31, 2019.

5. The amounts pertaining to the quarters ended March 31, 2019 and March 31, 2018 are balancing amounts between the audited amounts for the years ended March 31, 2019 and March 31, 2018, and unaudited year to date amounts for the nine months ended December 31, 2018 and December 31, 2017 respectively which were subject to limited review.

7. Exceptional items represent profit on sale of assets.

8. Operating segment information:

On a review of all the relevant aspects including, in particular, the system of internal financial reporting to the Board of Directors, which is the Chief Operating Decision Maker ('CODM'), and considering the economic characterisUcs of the operations, the Group is of the view that it operates in two segments viz. 'Engines' and 'Lubes'. Lubes segment comprises of a joint venture viz. Va!voline Cummins Private Limited, which is accounted for as per equity method under relevant Ind AS standard. The CODM evaluates the Group's performance based on an analysis of various parameters. Engine segment comprises of Cummins India Limited and other Group Companies which have been aggregated considering the nature of products, class of customer etc.

'Following information is provided lo the CODM for Lubes segment for monitoring its performance:

		Particulars	Year ended	Year ended	Ellmlnation/	(f Lacs) Total
			March 31, 2019	March 31, 2019	Adjustments
			Enalnes #	Lubes"
Sales			556,455	133,276	133,276	556,455
Profit	before lax		100,131	20,758	14,000	106,889
Profit	after tax		67,503	13,516	6,758	74,261
		Particulars	Year ended	Year ended	Ellmination/	Total
			March 31, 2018	March 31, 2018	Adjustments
			Engines#	Lubes"
Sales			506,020	128,006	128,006	506,020
Profit	before tax		85,359	22,360	15,064	92,655
Profit	after tax		63,885	14,594	7,297	71,182

• The above numbers represent full numbers in the statement of profit and loss of Valvoline Cummins Private Limited and are not Group's proportionate share_

For relevant information relating to Engine segment refer consolidated statement of assets and liabilities and results.

1. The Board of Directors have recommended a final dividend of i!' 10/- per equity share off 2/- each fully paid up for the year ended March 31, 2019 in addition to the interim dividend off 7/- per share declared on February 6, 2019.

Mumbai Date: May 22, 2019

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For Cummins India�
/-5---Sandeep Sinha
Managing Director
DIN: 02400175
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SR BC & CO LLP Chartered Accountants

C - 401, 4th Floor Panchshil Tech Park, Yerwada (Near Don Bosco School) Pune - 411 006, India

Tel : +91 20 6603 6000

Auditor's Report ou Quarterly Financial Results and Year to Date Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.

To Board of Directors Cummins India Limited,

• I. We have audited the accompanying statement of quarterly standalone Ind AS financial results of Cummins India Limited ('the Company') for the quarter ended March 31, 2019 and for the year ended March 31, 2019 ('the Statement'), 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 ('the Regulation'), read with SEBI Circular No. CIR/CFD/FAC/62/2016 dated July 5, 2016 ('the Circular'). The standalone Ind AS financial results for the quarter ended March 31, 2019 and year ended March 31, 2019 have been prepared on the basis of the standalone Ind AS financial results for the nine-month period ended December 31, 2018, the audited annual standalone Ind AS financial statements as at and for the year ended March 31, 2019, and the relevant requirements of the Regulation and the Circular, which are the responsibility of the Company's management and have been approved by the Board of Directors of the Company. Our responsibility is to express an opinion on these standalone financial results based on our review of the standalone Ind AS financial results for the nine-month period ended December 31, 2018 which was prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard (Ind AS) 34, Interim Financial Reporting, specified under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India; our audit of the armual standalone Ind AS financial statements as at and for the year ended March 31, 2019; and the relevant requirements of the Regulation and the Circular.

• We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial results are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts disclosed as financial results. An audit also includes assessing the accounting principles used and significant estimates made by management. We believe that our audit provides a reasonable basis for our opinion.

• 3, In our opinion and to the best of our information and according to the explanations given to us, these quarterly standalone Ind AS financial results as well as the year to date results:

• i. are presented in accordance with the requirements of the Regulation read with the Circular, in this regard; and

• ii. give a true and fair view of the net profit including other comprehensive income and other financial information for the quarter ended March 31, 2019 and for the year ended March 31, 2019.

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SR BC & co LLP, a Limited Liability Partnership 1yith LLP ldenllly No. AAB-4318 Regd. Office: 22, Camac Street, Block '8', 3rd Floor, Kolkala-700 016

SR BC & CO LLP Chartered Accountants

1. Further, read with paragraph 1 above, we report that the figures for the quarter ended March 31, 2019 represent the derived figures between the audited figures in respect of the financial year ended March 31, 2019 and the published year-to-date figures up to December 31, 2018, being the date of the end of the third quarter of the current financial year, which were subjected to a limited review as stated in paragraph 1 above, as required under the Regulation and the Circular.

Fors RB C & COLLP

Chartered Accountants

!CAI Firm Registration Number: 324982E/E300003

per Partner Membership Number: 501160 Place of Signature: Mumbai Date: May 22, 2019

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SR BC & CO LLP Chartered Accountants

C - 401, 4th Floor Panchshil Tech Park, Yerwada (Near Don Bosco School) Pune - 411 006, India Tel ; +91 20 6603 6000

Auditor's Report on Consolidated Year to Date Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.

To Board of Directors Cummins India Limited,

• I. We have audited the accompanying statement of consolidated Ind AS financial results of Cummins India Limited ('the Company'), comprising its subsidiary (together, 'the Group'), its associate and joint ventures, for the year ended March 31, 2019 ('the Statement'), 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 ('the Regulation'), read with SEBI Circular No. CIR/CFD/FAC/62/2016 dated July 5, 2016 ('the Circular'). The consolidated Ind AS financial results for the year ended March 31, 2019 have been prepared on the basis of the audited annual consolidated Ind AS financial statements as at and for the year ended March 31, 2019 and the relevant requirements of the Regulation and the Circular, which are the responsibility of the Company's management and have been approved by the Board of Directors of the Company. Our responsibility is to express an opinion on these consolidated financial results based on our audit of the annual consolidated Ind AS financial statements as at and for the year ended March 31, 2019 which was prepared in accordance with the applicable accounting standards and other accounting principles generally accepted in India and the relevant requirements of the Regulation and the Circular.

• We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial results are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts disclosed as financial results. An audit also includes assessing the accounting principles used and significant estimates made by management. We believe that our audit provides a reasonable basis for our opinion.

• 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 other auditors on separate financial statements and the other financial information of the subsidiary, associate and joint ventures, these consolidated Ind AS financial results for the year:

• i. include the year-to-date results of the following entities (list of entities included in consolidation):

i. include the year-to-date results of the following consolidation):	i. include the year-to-date results of the following consolidation):	e	n	tities (list of entities included in	tities (list of entities included in
Name of the entity				As at March 31, 2019 % holding Consolidated as
Cummins Sales & Service Private Limited				100%	Subsidiarv
Cummins Generator Technoloeies India Private Limited Valvoline CumminsPrivate Limited Cummins Research and TechnoloPv India Private Limited				48.54%	Associate
				50%	Joint Venture
	and TechnoloPv India Private Limited			50%	Joint Venture

• ii. are presented in accordance with the requirements of the Regulation read with the Circular, in this regard; and

• iii. give a true and fair view of the consolidated net profit including other comprehensive income and other financial information for the consolidated year to date results for the year ended March 31, 2019.

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SR BC & co LLP, a Limited l.lab!!ity Partnership Vfilh LLP Identity No. AAB·4318 Regd. Office: 22, Camac Street, Block '8', 3rd Floor, Kolkala-700 016

SR BC & CO LLP Chartered Accountants

1. We did not audit the financial statements and other financial information, in respect of one subsidiary, whose Ind AS financial statements include total assets of Rs. 3,578 lakhs as at March 31, 2019 and total revenues of Rs. 10,143 lakhs for the year ended on that date. These Ind AS financial statements and other financial information have been audited by other auditors, whose financial statements, other financial information and auditor's reports have been furnished to us by the management. The consolidated Ind AS financial results also include the Group's share of net profit of Rs. 9,264 lakhs for the year ended March 31, 2019, as considered in the consolidated Ind AS financial resu1ts, in respect of one associate and two joint ventures, whose financial statements, other financial information have been audited by other auditors and whose reports have been furnished to us by the management. Our opinion, in so far as it relates to the affairs of such subsidiary, associate and joint ventures is based solely on the report of other auditors. Our opinion is not modified in respect of this matter.

ForSRB C & CO LLP

Chartered Accountants !CAI Firm Registration Number: 324982E/E300003

per Partner Membership Number: 501160 Place of Signature: Mumbai Date: May 22, 2019

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