Cummins India Ltd. — Interim / Quarterly Report 2021

Jan 28, 2021

I

C.

Ref: STEX/SECT/2021

•

January 28, 2021

The Relationship Manager, National Stock Exchange of India Limited DCS-CRD Exchange Plaza, 5 [th ] Floor, BSE Limited, Plot No. C/1, G Block, Phiroze _Jeejeebhoy T ewers, Sandra - Kurla Complex, Dalal Street, Fort, Sandra (East), Mumbai 400 001 Mumbai 400 051 BSE Scrip Code: 500480 NSE Symbol: CUMMINSIND

Subject: Outcome of the Board Meeting - Unaudited standalone and consolidated Financial Results and Limited Review Report for �he Quarter an_d nine months ending December 31, 2020, and declaration of Interim Dividend for FY 2020-21.

Dear Sir/ Madam,

1. Unaudited Financial Results with Auditors' Limited Review Report.

In terms of Regulation 30 read with Schedule Ill of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing a copy of the un-audited financial results (standalone and consolidated) for the quarter and nine months ended December 31, 2020. The Board of Directors have duly approved the results at their meeting held on January 28, 2021. We are also enclosing a copy of 'Limited Review' report given by the Statutory Auditors of the Company for the said results.

2. Interim Dividend for the FY 2020-21 and fixing of Record date.

We further wish to inform the exchange that the Board of Directors have declared an Interim Dividend of Rs. 7/- per equity shares on 277,200,000 equity shares (Face Value Rs. 2/- each) for the Financial Year 2020-21. The Dividend warrants for the

said interim dividend will be dispatched by February 22, 2021 and the dividend will

be paid on February 24, 2021.

Cummins India Limited Registered Office Cummins India Office Campus Tower A, 5"' Floor, Survey No. 21, Balewadi Pune -411 0-45 Maharashtra, India Phone +91 20 67067000 Fax +91 20 67067015 cumminsindia.com cil.investors@cummins.com

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CIN : L211 12PN1882PLC01227S

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C. Further, in terms of Regulation 42 of the SEBI (Listing Obligations and Disclosure

Requirements) Regulations, 2015, we are providing the details of "Record Date" for the above-mentioned interim dividend for the FY 2020-21 as follows:

	Stock Exchange	I	Security Code	I	Type of Security	r	Record Date	r	Purpose	l
									For the payment
	BSE		'500480						of interim dividend
	NSE		CUMMINSIND -		Equity Shares of the face value of Rs. 2/- each fully paid.		February 10, 2021 (Wednesday)		(FY 2020-21) of Rs. 7/- per equity share on 277,200,000 equity shares
									face value of Rs.
I									2/- each.	_

Kindly take this intimation on your record.

Thanking you,

Yours faithfully, "" \ : - ' .J/ ., For Cummins India Limited . . . (. �-.�� ·,,,,,,.,-. -;..-.-... .. . q �·(., � \ 2. - ' ![� .. ] c,F:.( ·;) \ ' 0 ...... Vi nay . Joshi -� ,P----u r, .:- .,.... * / Com any Secretary and Compliance Officer _V'-.. /Q/

Encl.: As above.

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Cummins India Limited Registered Office Cummins India Office Campus Tower A, 5"' Floor, Survey No. 21, Balewadi Pune -411 045 Maharashtra, India Phone +91 20 67067000 Fax +91 20 67067015 cumminsindia.com cil.investons@cummins.com

CIN: l..28112PN11le2PLC01227S

SR BC & CO LLP Chartered Accountants

Ground Floor Panchshil Tech Park, Yerwada (Near Don Bosco School) Pune - 411 006, India

Tel : +91 20 6603 6000

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

Review Report to The Board of Directors Cummins India Limited

• I. We have reviewed the accompanying statement of unaudited standalone financial results of Cummins India Limited (the "Company") for the quarter ended December 3 I, 2020 and year to date from April 0 I, 2020 to December 31, 2020 (the "Statement") attached herewith, being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulations").

• This Statement, which is the responsibility of the Company's Management and approved by the Company's Board of Directors, has been prepared 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 as amended, 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.

• We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410, "Review of Interim Financial Information Perfonned 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 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 opm1on.

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S R B C & CO LLP, a Limited Liability Partnership with LLP Identity No. AAB-4318 Regd. Office: 22, Camac Street, Block 'B', 3rd Floor, Kolkata-700 016

Cummins India Limited Independent Auditor's Review Report - Standalone financial results Page 2 of 2

SR B C & CO LLP Chartered Accountants

• 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 Indian Accounting Standards ('Ind AS') specified under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement.

For SR B C & CO LLP Chartered Accountants

!CAI Firm re ·stration number: 324982E/E300003

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per Partner Membership number: 501160 UDIN: 2J'5"O1160 A AAAA kS 2-1:,-

Place: Pune Date: January 28, 2021

SR BC & CO LLP Chartered Accountants

Ground Floor Panchshil Tech Park, Yerwada (Near Don Bosco School) Pune - 411 006, India Tel : +91 20 6603 6000

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

Review Report to The Board of Directors Cummins India Limited

• I. We have reviewed the accompanying Statement of Unaudited Consolidated Financial Results of Cummins India Limited (the "Holding Company") and its subsidiary (the Holding Company and its subsidiary together referred to as "the Group"), its associate and joint ventures for the quarter ended December 31, 2020 and year to date from April O I, 2020 to December 31, 2020 (the "Statement") attached herewith, being submitted by the Holding Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulations").

• This Statement, which is the responsibility of the Holding Company's Management and approved by the Holding Company's Board of Directors, has been prepared 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 as amended, 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.

• We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 24 I 0, "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 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 No. CI R/CFD/CMD I /44/2019 dated March 29, 2019 issued by the Securities and Exchange Board of India under Regulation 33(8) of the Listing Regulations, to the extent applicable.

1. The Statement includes the results of the following entities:

Name of the entity	As at December 31, 2020 % holding Consolidated as	As at December 31, 2020 % holding Consolidated as
Cummins Sales & Service Private Limited	100%	Subsidiary
Cummins Generator Technologies India Private Limited	48.54%	Associate
Valvoline Cummins Private Limited	50%	Joint Venture
Cummins Research and Technology India Private Limited	50%	Joint Venture

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S R B C & co LLP, a Limited Liability Partnership with LLP Identity No. AAB-4318 Regd. Office: 22, Camac Street, Block 'B', 3rd Floor, Kolkata-700 016

Cummins India Limited Independent Auditor's Review Report- Consolidated financial results Page 2 o/2

SR BC& CO LLP Chartered Accountants

1. Based on our review conducted and procedures performed as stated in paragraph 3 above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with 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 thereunder and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement.

2. The accompanying Statement includes unaudited interim financial results and other unaudited financial information in respect of:

3. one subsidiary, whose interim financial results and other financial information reflect total revenues of Rs. 2,349 lakhs and Rs. 6,019 lakhs, total net profit after tax of Rs. 68 lakhs and total net loss after tax of Rs. ( 19) lakhs, total comprehensive income of Rs. 45 lakhs and total comprehensive loss of Rs. ( 42) lakhs, for the quarter ended December 31, 2020 and the period ended on that date respectively.

4. one associate and one joint venture, whose interim financial results includes the Group's share of net profit of Rs. 1,063 lakhs and Rs. 2,124 lakhs and Group's share of total comprehensive income of Rs. 1,044 lakhs and Rs. 2,055 lakhs for the quarter ended December 31, 2020 and for the period ended on that date respectively.

The unaudited interim financial results and other unaudited financial information have been approved and furnished to us by the Management and our conclusion on the Statement, in so far as it relates to the affairs of this subsidiary, joint venture and associate, is based solely on such unaudited interim financial results and other unaudited financial information. According to the information and explanations given to us by the Management, these interim financial results are not material to the Group.

Our conclusion on the Statement in respect of matters stated above is not modified with respect to the financial results certified by the Management.

For S RB C & CO LLP Chartered Accountants

!CAI Firm regi tration number: 324982E/E300003

per T 1devlal Khandelwal Partner Membership number: 501160 UDIN: 2\�0\6oAA-APIAL2.01.GJ

Place: Pune Date: January 28, 2021

CUMMINS INDIA LIMITED

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

[CIN: L29112PN1962PLC012276], Telephone: 020 67067000, Fax: 020 67067015, Email: cil.lnvestors@cummins.com, Website: www.cumminsindia.com

Unaudited standalone financial results for the quarter and nine months ended December 31, 2020

							(f Lacs)
	Pariculars		Quarer ended		Nine months ended		Year ended
		December 31,	September 30,	December 31,	December 31,	December 31,	March 31, 2020
		2020	2020	2019	2020	2019
		(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
1	Income
	(a)Revenue, from operations
	Sales:/lncome from operations	1,39,984	1,14,133	1,42,847	3,02,523	4,02,939	5,06,160
	Other operating income	2,450	1,886	2,497	5,750	7,550	9,613
	(b) Other irn;ome (Note5)	9,842	5,797	7,228	25,856	24,176	33,154
	Total lncomt!	1,52,276	1,21,816	1,52,572	3,34,129	4, 34,665	5,48,927
2	Expenses
	(a)Cost of materials consumed	70,405	68,780	62,865	1,65,245	2,01 ,740	2,61,255
	(b)Purchases of traded goods	15,127	7,366	23,464	24,618	59,597	72,186
	(c)Change in inventories of finished goods, work-in-progress and traded goods	6,082	(4,275)	8,267	2,894	7,009	3,344
	(d)Employe1e benefits expense	12,515	11,893	14,156	35,903	41,986	56,018
	(e)Finance cost	458	402	465	1,291	1,536	2,025
	(f) Depreciation and amortisation expense	3,196	3,267	2,955	9,494	8,791	11,866
	(g)Other expenses (Note6)	14,132	15,515	15,017	38,410	48,197	64,342
	Total expem,es	1,21,915	1,02,948	1,27,189	2,n,855	3, 68,856	4,71,036
3	Profit before, exceptional items and tax (1-2)	30,361	18,868	25,383	56,274	65,809	77,891
4	Exceptional items (Note4)	-	-	1,605	-	1,605	1,985
5	Profit before, tax (3-4)	30,361	18,868	23,778	56,274	64,204	75,906
6	Tax expense!
	(a)Current tax	6,716	4,707	4,660	13,053	11,940	14,253
	(b)Deferred tax	238	(394)	494	3	1,161	(1,281)
	Total tax expenses	6,954	4,313	5,154	13,056	13,101	12,972
7	Profit after tax ( 5-6)	23,407	14,555	18,624	43,218	51,103	62,934
8	Other compri�hensive income_I_(expense)	(369)	576	(393)	(430)	(1,203)	(2,348)
9	Income tax effect	92	(144)	99	108	303	591
10	Net Other cc,mprehensive Income / (expense) not to be reclassified to profit or loss in	(277)	432	(294)	(322)	(900)	(1,757)
	subsequent periods, net of tax (8+9)
11	Total comprehensive income for the year, net of tax (7+10)	23,130	14,987	18,330	42,896	50,203	s1,1n
12	Paid-up equily share capital (Face value, 2each)	5,544	5,544	5,544	5,544	5,544	5,544
13	Other equity						4, 11,952
14	Earnings per share
	Basic and diluted EPS for the period on net profit (Not annualized) (')	8.44	5.25	6.72	15.59	18.44	22.70

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

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.,

CUMMINS INDIA LIMITED

[CIN: L29112PN1962PLC012276]. Telephone: 020 67067000, Fax: 020 67067015, Email : cil.investors@cummins.com, Website: www.cumminsindia.com

Unaudited consolidated financial results for the quarter ended and nine months ended December 31, 2020

									If Lacsl
1	Paricular Income	December 31, 2020 (Unaudited)	Quarerended September 30, 2020 (Unaudited)	December 31, 2019 (Unaudited) _ _	Nine months ended Year ended December 31, December 31, March 31, 2020 2020 20119 (Unaudited) (Unauidited) (Audited) 1-- 1_-f -!-_
	(a)Revenue from operations
	Sales/Income from operations	1,40,666	1, 15,126	1,43,154	3,04,666		4,05,395		5,09,587
	Other operating income	2,436	1,873	2,481	5,717		7,504		9,558
	(b)Other income (Note 5)	6,055	5,799	6,292	21,525		19,047		25,749
	Total Income	1,49,157	1,22,798	1,51,927	3,31,908		4,31,946		5,4,894
2	Expenses
	(a)Cost of materials cnsumed	69,911	68,373	62,168	1,64, 147		1,99,778		2,58,799
	(b)Purchases c,f traded goods	15,667	7,994	23,817	26,060		61,756		74,718
	(c) Change in inventories of finished goods, work-in-progress and traded goods	6,078	(4,286)	8,094	2,759		6,937		3,662
	(e)Employee benefits expense	12,911	12,321	14,628	37,174		43,305		57,775
	(f Finance cost	483	404	483	1,330		1,594		2,102
	(g)Depreciation and amorisation expense	3,235	3,301	3,001	9,615		8,932		12,058
	(h)Other expenses (Note 6)	14,323	15,738	15,283	38,979		48,951		65,273
	Total expenses	1,22,608	1,03,845	1,27,474	2,80,064		3,71,253		4,74,387
3	Profit before exceptional items and tax (1-2)	26,549	18,953	24,453	51,844		60,693		70,507
4	Exceptional items (Note 4)	-	-	1,605	-		1,605		1,985
5	Profit after excEiptional items before share of profit of joint ventures and associate and before tax (3-)	26,549	18,953	22,848	51,844		59,088		68,522
6	Share of proft of joint ventures and associate afer tax	4,423	2,646	2,957	7,833		9,327		12,226
7	Profit before tH (5-6)	30,972	21,599	25,805	59,677		68,415		80,748
8	Tax expense
	(a)Current tax	6,716	4,689	4,920	13,053		13,104		15,899
	(b)Deferred tax	227	(406)	906	(23)		1,783		(5,703)
	(c)Tax fr earli,er years	-	-	(9)	-		(9)		(9)
	Total tax expem,es	6,943	4,283	5,817	13,030		14,878		10,187
9	Profit afer tax ('7-8)	24,029	17,316	19,988	46,647		53,537		70,561
10	Other comprehensive income/ (expense)	(399)	576	(396)	(460)		(1,211)		(2,371)
11	Income tax efect	100	(144)	100	116		305		597
12	Net other comp1rehensive income/(expense) not to be reclassified to profit or loss in	(299)	432	(296)	(344)		(906)		(1,774)
	subsequent periods, net of tax (10+11)
13	Share in joint venture's and associate's OCI afer tax (net) not to be reclassified to profit or loss	(19)	(26)	(17)	(71)		(53)		(50)
	in subsequent periods
14	Other comprehunsive income/ (expense) for the year, net of tax (12+13)	(318)	406	(313)	(415)		(959)		(1,824)
15	Total comprehensive income for the year, net of tax (9+14)	23,711	17,722	19,675	46,232		52,578		68,737
16	Paid-up equity share capital (Face value, 2 each)	5,544	5,544	5,544	5,544		5,544		5,544
17	Other equity								4,34,660
18	Earnings per share
	Basic and diluted EPS for the period on net proft (Not annualized) (i)	8.67	6.25	7.21	16.83	19.31 ' '-			25.45

Notes

• 1 The consolidated financial resuHs include results of the follo'-Ning companies

Name of the Company Cummins Sales & Serice Private Limited	A 11 December 31 2020 % holdinD Consolidated as 100% Subsidiar	A 11 December 31 2020 % holdinD Consolidated as 100% Subsidiar	A 11 Seotember 30 2020 % holdina Consolidatd as 100% Subsidiar	A 11 Seotember 30 2020 % holdina Consolidatd as 100% Subsidiar	A II March 31 2020 % holdlna Consolidated as 100% Subsidiar	A II March 31 2020 % holdlna Consolidated as 100% Subsidiar	A at Decamber 31 2019 % holdinn Consolidated as 100% Subsidiar	A at Decamber 31 2019 % holdinn Consolidated as 100% Subsidiar
Cummins Generator Technologies India Private Limited Valvoline Cummins Private Limited	48.54% 50%	Associate Joint Ventur	48.54% 50%	Associate Joint Venture	48.54% 50%	Associate Joint Venture	48.54% 50%	Associate Joint Venture
Cummins Research and Technoloav India Private Limited	50%	Joint Venture	50%	Joint Venture	50%	Joint Venture	50%	Joint Venture

• 2 This statement has been revie'Mld by the Audit Corrmittee and approved by the Board of Directors at its me ting held on January 28, 2021.

3 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 fCODM'), and considering the economic characteristics of the operations, the Group is of the view that it operates in l'NO segments viz. 'Engines' and 'Lubes'. Lubes segment comprises of a joint venture viz. Valvoline Currmins Private Limited, which is accounted for as per equity method under relevant Ind AS standard. The CODM evak.Jates the Group's performance based on an analysis of various parameters. Engine segment comprises of Currmins India Limited and other Group Companies v.ti ch have been aggregated considering the nature of products, class of customer etc.

Follov.ing infonnation is provided to the CODM for Lubes segment for monitoring its perfonna ce:

Paricular	Dcember 31,	Quarer ended Septembr 30,	Dcember 31,	Nine months ended December 31, Dcember 31,	Nine months ended December 31, Dcember 31,	(f Lcs) Year ended Marh 31, 2020
	2020	2020	2019	2020	2019
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
sales
Engines	1,40,666	1,15,126	1,43,154	3,04,666	4,05,395	5,09,587
Lubes*	42 438	27 954	34 844	90 032	1 01 025	1 29 418
Total	1,83,104	1,43,080	1,77,998	3,94,698	5,06,420	6,39,005
Less: Elirination/Adiustments	42 438	27 954	34 844	90 032	1 01 025	1 29 418
Net sales	1,40,666	1,15,126	1,43,154	3,04,666	4,05,395	5,09,587
Profit befor tax
Engines **Lubes' **	27,613 9 034	20,078 4 117	23,382 6 526	53,969 15 394	62,054 16 893	72,788 21 202
Totl Less: Elimnation/Adiustmnts Total Prfit befor tax	36,647 5 675 30,972	24,195 2 596 21,599	29,908 4 103 25,805	69,363 9 686 59,677	78,947 10 532 68,415	93,990 13 242 80,748
Profit aftr tax
Engines	20,670	15,795	17,565	40,939	47,176	62,601
Lubes*	8 719	3 043	4 846	11 417	12 722	15 921
Totl Less: Elimnation/Adjustments Totl Profit alter tax	27,389 3 360 24,029	18,838 1 522 17,316	22,411 2 423 19,988	52,356 5 709 46,647	59,898 6 361 53,537	78,522 7 961 70,561

• 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.

• 4 Exceptional items for the quarter and nine months ended December 31, 2019 include expense on account of Voluntary Retirement Program (-VRP-) aggregating to f 1,605 Lacs. In addition to VRP, the exceptional items for the year ended March 31, 2020 include expense on Reduction in Force aggregating to f 380 Lacs.

5 Other income for the nine months ended December 31, 2020 includes interest on income tax refund amounting to f 3,556 lacs.

• 6 Other expenses for the quarter ended September 30, 2020 and nine months ended December 31, 2020 include an amount off 2,319 lacs pertaining to 'Mite off of certain old unusa�e tangible assets (net book value).

7 Government of India's Code for Social Security 2020 (the 'Code') received assent from the President in September 2020. Ho11.iever, the date from 'Nhen the Code YJill become applicable and the Rules have not yet been notified. The Group '-Nill assess the irT'f)act of the Code and account for the same once the effective date and the rules are notified.

8 The Board of Directors of the Company at their meeting held on January 28, 2021 declared an interim dividend off 7 per equity share on 277,200,000 shares off 2 each fully paid-up for the financial year 2020-21.

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Managing Director
DIN: 00149501
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Pune Date: January 28, 2021