Dynamatic Technologies Ltd. — Interim / Quarterly Report 2020

Nov 11, 2019

• 1. The Secretary Bombay Stock Exchange Limited Phiroze Jeejeebhoy Towers Dalal Street, Mumbai - 400 001. Fax No. 022 - 2272 3121 / 3719 / 2037 / 2039 / 2041 / 2061
• $2.$ The Secretary National Stock Exchange of India Limited "Exchange Plaza", Bandra-Kurla Complex, Bandra East, Mumbai - 400 051. Fax No.022 - 26598237 / 38

Sub: Board Meeting outcome Ref: Scrip code: NSE: DYNAMATECH; BSE: 505242

Dear Sir,

Further to our letter dated 5th November, 2019, we write to inform you that the significant matters arising out of the Board Meeting held today i.e. 11th November 2019, are as appended hereunder:

• 1. The Board considered and approved the Standalone and Consolidated un-audited Financial Results for the quarter and half year ended 30th September 2019 along with the limited review report by Statutory Auditors of the Company. Copy of the un-audited financial results have been enclosed in compliance with the provisions of Regulation 30 of SEBI (LODR) Regulations, 2015.
• 1. Further to the announcement dated 29th May 2019, the Company has sought input from its advisors and bankers regarding the potential demerger and/or divestment of its Iron casting and Wind farm businesses. The Board is exploring this advice, and the recommendations of the Finance Committee, in the context of evolving/emerging opportunities.

We kindly request you to take this letter along with the enclosures on record.

Thank you.

Yours faithfully, for DYNAMATIC TECHNOLOGIES LIMITED

waraml Shivaram $\forall$

Head - Legal, Compliance & Company Secretary

Enclosure: as above

Dynamatic Park Peenya Bangalore 560 058 India Tel +91 80 2839 4933 / 34 / 35 Fax +91 80 2839 5823 www.dynamatics.com

Deloitte Haskins & Sells LLP

Chartered Accountants Prestige Trade Tower, Level 19 46, Palace Road, High Grounds Bengaluru - 560 001 Karnataka, India

Tel: +91 80 6188 6000 Fax: +91 80 6188 6011

INDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEW OF INTERIM STANDALONE

TO THE BOARD OF DIRECTORS OF D'YNAMATIC TECHNOLOGIES LIMITED

• 1. We have reviewed the accompanying Statement of Unaudited Standalone Financial Results of DYNAMATIC TECHNOLOGIES LIMITED ("the Company for the quarter and six months ended 30 September 2019 ("the Statement"), being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015,
• 1. 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 the 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 (ICAI).A review of interim financial information consists of making inquiries, primarily of the Company's personnel 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 specified under section 143(10) of the Companies Act, 2013 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.

Attention is drawn to Note 3 of the Statement which states that the statement of cash flows for the corresponding six months ended September 30, 2018, as reported in the accompanying Statement have been approved by the Company's Board of Directors, but have not been subjected to review.

1. Based on our review conducted 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 the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard 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 DELOITTE HASKINS & SELLS LLP

Chartered Accountants (Firm's Registration No. 117366W/W-100018)

allyd

Sathya P. Koushik Partner (Membership No. 206920) UDIN:19206920AAAAID6728

Bengaluru, November 11, 2019 SPK/JKS/DSS/2019

$\begin{array}{c} \text{DYNAMATIC TECHNOLOGIES LIMITED} \ \text{CIN: L72200KA1973PLC002308} \ \text{DYNAMATIC PARK, PEENYA, BANGALORE-560 058, INDIA} \end{array}$

	Statement of unaudited standalone financial results for the quarter and six months ended 30 September 2019
						(INR in lacs, except as otherwise stated)
		3 months ended	Preceding 3	Corresponding 3	Year to date figures	Year to date figures for	Previous year
	Sl. No. Particulars	30 September 2019	months ended	months ended in	for the current period	the previous period	ended
		Unaudited	30 June 2019	previous period	ended	ended	31 March 2019
			Unaudited	30 September 2018Unaudited	30 September 2019Unaudited	30 September 2018Unaudited	Audited
	Continuing operations
$\bf{1}$	Inc.ome
	a) $\mathbb{R}$ evenue from operations	14,967	15,337	14,658	30,304	28,645	59,215
	b) $O$ ther income	477	278	331	755	648	892
	Total income (a+b)	15,444	15,615	14,989	31,059	29,293	60,107
$\overline{2}$	Expenses
	a) $\overline{C}$ ost of raw materials and components consumed	6,837	6,081	6,894	12,918	13,420	27,064
	b) Changes in inventories of finished goods and work-in-progress	(375)	764	63	389	366	742
	c) Employee benefits expense	2,137	2,052	1,820	4,189	3,586	7,247
	d) Finance costs	1,686	1,760	1,659	3,446	3,250	6,832
	e) Depreciation and amortisation expense	827	816	496	1,643	1,001	1,865
	f) $O$ ther expenses	2,392	2,480	2,511	4.872	4,788	10,821
	Total expenses (a+b+c+d+e+f)	13,504	13,953	13,443	27,457	26,411	54,571
$\mathbf{3}$	Profit from continuing operations before tax (1 - 2)	1,940	1,662	1,546	3,602	2,882	5,536
$\overline{4}$	Tax expense
	a) $Current$ tax	280	565	616	845	1,220	1,294
	b) Deferred tax	(29)	(48)	(100)	(77)	(237)	643
	Total tax expense (a+b)	251	517	516	768	983	1,937
5	Profit after tax from continuing operations $(3 - 4)$	1,689	1,145	1,030	2,834	1,899	3,599
	Discontinuing operations
6	Profit/(Loss) from discontinuing operations	(150)	(113)	68	(263)	(20)	(460)
$\overline{7}$	Tax expense/(credit) of discontinuing operations	(30)	(36)	24	(66)	(7)	(91)
$\bf 8$	Profit/(Loss) after tax from discontinued operations (6-7)	(120)	(77)	44	(197)	(13)	(369)
$\boldsymbol{9}$	Profit for the period (5+8)
		1,569	1,068	1,074	2,637	1,886	3,230
10	Other comprehensive income/(loss) (OCI)
	Items that will not to be reclassified subsequently to statement of profit
	and loss
	Remeasurement gain/(loss) on defined benefit plans
		(66)	6	141	(60)	86	24
	Income tax relating to items that will not be reclassified to statement ofprofit and loss	17	(2)	(49)	15	(30)	(9)
	Other comprehensive income for the period, net of tax		$\overline{4}$	92
		(49)			(45)	56	15
11	Total comprehensive income for the period (9+10)	1,520	1,072	1,166	2,592	1,942	3,245
12	Paid-up equity share capital (face value of Rs 10/- each)	634	634	634	634	634	634
13	Reserves (Other equity)						51,046
	Earnings per equity share	(not annualised)	(not annualised)	(not annualised)	(not annualised)	(not annualised)	(annualised)
	Earnings per share (for continuing operations)
	Basic and Diluted (Rs)	26.64	18.06	16.25	44.70	29.96	56.77
	Earnings per equity share (for discontinued operations)
	Basic and Diluted (Rs)	(1.89)	(1.21)	0.69	(3.11)	(0.21)	(5.82)
	Earnings per equity share (for continuing and discontinued
	operations)
	Basic and Diluted (Rs)	24.75	16.85	16.94	41.59	29.75	50.95

See accompanying notes to these financial results.

$\begin{minipage}{.4\linewidth} \begin{tabular}{c} \multicolumn{2}{c}{DYNAMATIC TECHNOLOGIES LIMITED} \ \multicolumn{2}{c}{CIN: L72200KAI973PLC002308} \ \multicolumn{2}{c}{DYNAMATIC PARK, PEENYA, BANGALORE-560\ 058, INDIA} \end{tabular} \end{minipage}$

Statement of unaudited standalone financial results for the quarter and six months ended 30 September 2019

Anr2 exure I: Statement of Standalone segment wise revenue, results, assets and liabilities for the quarter and six months ended 30 September 2019

(INR in lacs, except as otherwise stated)
		3 months ended	Preceding 3	Corresponding 3	Year to date figures	Year to date figures for	Previous year
		30 September 2019	months ended	months ended in	for the current period	the previous period	ended
	Particulars	Unaudited	30 June 2019	previous period	ended	ended	31 March 2019
			Unaudited	30 September 2018	30 September 2019	30 September 2018	Audited
				Unaudited	Unaudited	Unaudited
1	Segment revenue
	a) Hydraulics	5,943	6,200	6,478	12,143	12,741	25,577
	b) Aerospace and Defence	8,999	9,031	8,078	18,030	15,482	32,802
	c) Others	25	106	102	131	422	836
	Revenue from operations (continuing operations)	14,967	15,337	14,658	30,304	28,645	59,215
	d) from discontinued operations- (Refer note 6)	541	662	1,938	1,203	3,912	7,853
	Total revenue from operations (continuing and discontinuedope rations	15,508	15,999	16,596	31,507	32,557	67,068
$\mathbf{2}$	Segment results [profit/ (loss) before finance costs, other income andtax from each segment]
	a) Hydraulics	457	828	868	1,285	1,496	3,024
	b) Aerospace and Defence	3,098	2,737	2,313	5,835	4,357	9,321
	c) Others	(406)	(421)	(307)	(827)	(369)	(869)
	To tal (continuing operations)	3,149	3,144	2,874	6,293	5,484	11,476
	d) From discontinued operations- (Refer note 6)	(150)	(113)	68	(263)	(20)	(460)
	Total (continuing operations and discontinued operations)	2,999	3,031	2,942	6,030	5,464	11,016
	Unallocable
	- Finance Cost	1,686	1,760	1,659	3,446	3,250	6,832
	- Other income	477	278	331	755	648	892
	Profit before tax (continuing and discontinued operation)	1,790	1,549	1,614	3,339	2,862	5,076
3	Segment Assets
	a) Hydraulics	16,587	16,533	13,432	16,587	13,432	14,987
	b) Aerospace and Defence	44,605	43,277	39,895	44,605	39,895	39,275
	c) Others	8,101	7,718	2,049	8,101	2,049	7,495
	d) Unallocated	57,243	58,851	56,491	57,243	56,491	57,450
	Segment assets from continuing operations	1,26,536	1,26,379	1,11,867	1,26,536	1,11,867	1,19,207
	e) Relating to discontinued operations	7,718	7,484	16,610	7,718	16,610	7,574
	Total assets (continuing and discontinued operation)	1,34,254	1,33,863	1,28,477	1,34,254	1,28,477	1,26,781
$\boldsymbol{4}$	Segment Liabilities
	a) Hydraulics	9,655	9,425	6,994	9,655	6,994	8.031
	b) Aerospace and Defence	9,764	8,934	5,428	9,764	5,428	5,192
	c) Others	2,164	2,417	425	2,164	425	1,590
	d) Unallocated	58,283	60,239	60,852	58,283	60,852	60,207
	Segment Liabilities from continuing operations	79,866	81,015	73,699	79,866	73,699	75,020
	e) Relating to discontinued operations	116	96	4,401	116	4,401	81
	Total Liabilities (continuing and discontinued operation)	79,982	81,111	78,100	79,982	78,100	75,101

See accompanying notes to the financial results.

Statement of unaudited standalone financial results for the quarter and six months ended 30 September 2019

Balance sheet as at 30 September 2019

(INR in lacs, except as otherwise stated)
	As at	As at
Particulars	30 September 2019	31 March 2019
	(Unaudited)	(Audited)
ASSETS
Non-current assets
a) Property, plant and equipment	23,157	23,526
b) Capital work in progress	395	214
c) Intangible assets	69	34
d) Right-of-use assets	5,360
e) Financial assets
(i) Investments	53,910	53,510
(ii) Loans	797	752
(iii) Other financial assets	18	18
f) Income tax assets (net)	606	606
g) Other non-current assets	2,911	1,758
Total non-current assets	87,223	80,418
Current assets
a) Inventories	10,274	10,937
b) Financial assets
(i)Trade receivables	18,378	15,635
(ii) Cash and cash equivalents	270
(iii) Bank balances other than cash and cash equivalents above	2,562	287
$(iv)$ Loans		3,029
	481	406
(v) Other financial assets	1,162	1,323
c) Other current assets	6,186	7,172
Total current assets	39,313	38,789
d) Assets classified as held for sale	7,718	7,574
Total Assets	1,34,254	1,26,781
EQUITY AND LIABILITIES
Equity
a) Equity share capital	634	634
b) Other equity	53,638	51,046
Total equity	54,272	51,680
Liabilities
Non-current liabilities
a) Financial liabilities
(i) Borrowings	32,295	34,392
(ii) Lease liabilities	5,281
(iii) Other financial liabilities	11	$_{11}$
b) Provisions	2,223	1,964
c) Deferred tax liabilities (net)	6,471	6,548
Total non-current liabilities	46,281	42,915
Current liabilities
a) Financial liabilities
(i) Borrowings	17,999	15,689
(ii) Trade Payables
(a) total outstanding dues of micro enterprises and	955
small enterprises		577
(b) total outstanding dues of creditors other than micro	11,177	11,615
enterprises and small enterprises
(iii) Other financial liabilities	2,343	3,672
b) Provisions	345	322
c) Current income tax liabilities (net)	527
d) Other current liabilities	238	230
Total current liabilities	33,584	32,105
Liabilities directly associated with assets classified as held for sale
	117	81
Total Liabilities	79,982	75,101
Total Equity and Liabilities	1,34,254	1,26,781

See accompanying notes to these financial results.

ECHNO

Statement of unaudited standalone financial results for the quarter and six months ended 30 September 2019

Statement of condensed standalone cash flow for the six months ended 30 September 2019

(INR in lacs, except as otherwise stated)

	Six months ended
Particulars	30 September 2019(Unaudited)	30 September 2018(Unaudited)Refer note 3
Net cash generated from operating activities (A)	4,173	5,854
Net cash used in investing activities (B)	25	(770)
[Net cash (used in)/provided by financing activities (C)	(4,215)	(5,130)
Net increase/(decrease) in cash and cash equivalents $(A + B + C)$	(17)	(46)
Cash and cash equivalents at the beginning of the period	287	364
Cash and cash equivalents at the end of the period	270	318

See accompanying notes to these financial results.

Cash flows from operating activities is arrived using indirect method. The above represents cash flows from total operations.

Statement of unaudited standalone financial results for the quarter and six months ended 30 September 2019

Notes:

• 1 The above financial results for the quarter and six months ended 30 September 2019 were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on 11 November 2019.
• 2 The above results for the quarter and six months ended 30 September 2019 has been subjected to "Limited Review" by Statutory Auditors of the Company. The report of the Statutory Auditors is unmodified. The Ind AS financial results of the Company for the quarter ended 30 June 2019, quarter and six months ended 30 September 2018 and year ended 31 March 2019, were reviewed/ audited by the B S R & Co LLP Chartered Accountants, the predecessor auditor who have expressed an unmodified review conclusion/opinion.
• 3 The cash flow statement for the corresponding six months ended 30 September 2018 have been approved by the Company's Board of Directors and have not been subjected to review by the auditors.
• 4 Mr. Nalini Ranjan Mohanty, independent director retired on 13 August 2019 from the Board of the Company.
• Based on the "Management approach" as defined in Ind AS 108 Operating Segments, the Chief Operating Decision Maker evaluates the Company performance and 5 allocates resources based on an analysis of various performance indicators by business segments. Accordingly, information has been presented along with these business segments viz. Hydraulics, Aerospace and Defence, Automotive and Metallurgy (formerly known as Automotive and Aluminium Castings) and Others. The accounting principles used in the preparation of these financial results are consistently applied to record revenue and expenditure in individual segments. Refer "Annexure I "for segment results.
• 6 Discontinued operations and assets held for sale

During the year ended 31 March 2018, the Board of Directors of the Company vide its meeting dated 28 February 2018, had approved the divestment of "Automotive and Aluminium Castings" ('discontinued business'). Subsequently, the Company had obtained the Shareholders' approval (a substantive approval) vide postal ballot dated 15 May 2018 and accordingly "Automotive and Aluminium Castings" as appearing in the unaudited standalone financial results of the Company was classified as discontinued operation from the quarter ended 30 June 2018.

During the year ended 31 March 2019, the Company had entered into a business transfer agreement with Hi-Tech to sell certain assets of the Aluminium business. The transaction was consummated on 17 January 2019.

		Ouarter ended		Six months ended		Year ended
Particulars	30 September 2019 # 30 June 2019 # 30 September 2018 Unaudited	Unaudited	Unaudited	30 September 2019 #Unaudited	30 September 2018Unaudited	31 March 2019Audited
Revenue	541	662	1938	.203	3912	7853
Expenses	691	775	1870	.466	3932	8313
Loss before tax	(150)	113)	68	(263)	(20)	(460)

represents the iron business and windfarm business as the Aluminium business sale got consummated on 17 January 2019.

Cashflows from/(used in) discontinued operations

		Six months ended
Particulars	30 September 2019Unaudited	30 September 2018Unaudited
Net cash generated from operating activities (A)	(354)	(626)
Net cash used in investing activities (B)		107
Net cash (used in)/provided by financing activities (C)
Net increase/(decrease) in cash and cash equivalents $(A + B + C)$	(371)	(519)

The Company continues to disclose the assets and liabilities of the Iron business and Windfarm (part of "Automotive and Metallurgy") as appearing in the unaudited standalone financial results as "Asset held for sale" as on 30 September 2019 in accordance with Ind AS 105.

Effective 1 April 2019, the Company adopted Ind AS 116 "Leases" applied to its lease contracts existing on 1 April 2019 under the modified retrospective method. $7$ Accordingly, the comparative numbers have not been retrospectively adjusted. The implementation of Ind AS 116 resulted in recognition of Right-of-Use asset of Rs 5,772 lacs and 5,098 lacs and Lease liability of Rs 5,772 and Rs 5,281 as on 01 April 2019 and 30 September 2019 respectively. For the quarter and six month ended 30 September 2019, the implementation of Ind AS 116 resulted in lower Profit before tax by Rs 84 lacs and by Rs 186 lacs respectively on account of higher interest cost and depreciation offset by reversal in rent expenses. In the statement of profit and loss for the current period, the nature of expenses in respect of operating leases has changed from lease rent in previous periods to depreciation cost for the "Right-of-Use" asset and finance cost for interest accrued on "Lease Liability".

8 Previous period figures have been regrouped to confirm with the classification adopted in these financial results.

for and on behalf of Board of Directors of Dynamatic Technologies Limited

$(INIP)$ in lace avecont as otherwise stated)

ECHNO

WGALOR

Udayant Malhoutra CEO and Managing Director

Place: Bengaluru Date: 11 November 2019

Deloitte Haskins & Sells LLP

Chartered Accountants Prestige Trade Tower, Level 19 46, Palace Road, High Grounds Bengaluru - 560 001 Karnataka, India

Tel: +91 80 6188 6000 Fax: +91 80 6188 6011

ENDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEW OF INTERIM CONSOLIDATED FINANCIAL RESULTS

TO THE BOARD OF DIRECTORS OF D'INAMATIC TECHNOLOGIES LIMITED

• 1. We have reviewed the accompanying Statement of Unaudited Consolidated Financial Results of DYNAMATIC TECHNOLOGIES LIMITED ("the Parent") and its subsidiaries (the Parent and its subsidiaries together referred to as "the Group"), for the quarter and six months ended 30 September 2019 ("the Statement"), being submitted by the Parent pursuant to the requirement of Regulation 33 of 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 the 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 (ICAI). A review of interim financial information consists of making inquiries, primarily of Parent's personnel 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 specified under Section 143(10) of the Companies Act, 2013 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.

Attention is drawn to Note 3 to the Statement which states that the statement of consolidated cash flows for the corresponding six months ended 30 September 2018, as reported in the accompanying Statement have been approved by the Parent's Board of Directors, but have not been subjected to review.

• 1. The Statement includes the results of the Parent and the following entities:
  • $\mathbf{i}$ JKM Research Farm Limited, India
  • JKM Global Pte Limited, Singapore ii.
• iii. Dynamatic Limited, UK
• Yew Tree Investment Limited, UK iv.
• Dynamatic US LLC, USA $\vee$ .
• vi. JKM Erla Automotive Limited, India
• vii. JKM Automotive Limited, India
• JKM Erla Holdings GmbH, Germany viii.
• Eisenwerk Erla GmbH, Germany ix.
• $\mathbf{x}$ JKM Ferrotech Limited, India
• 1. Based on our review conducted and procedures performed as stated in paragraph 3 above and based on the consideration of the review reports of the other auditors 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 Indian Accounting Standard 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 financial information of five subsidiaries included in the unaudited consolidated financial results, whose interim financial information reflect total assets of Rs.71,726 lakhs as at 30 September 2019 and, total revenues of Rs. 14,968 lakhs and Rs. 34,468 lakhs for the quarter and six months ended 30 September 2019 respectively, total net loss after tax of Rs. 301 lakhs and Rs.145 lakhs for the quarter and six months ended 30 September 2019 respectively and total comprehensive loss of Rs. 301 lakhs and Rs. 145 lakhs for the quarter and six months ended 30 September 2019 respectively and net cash flows of Rs.1,124 lakhs for the six months ended 30 September 2019, as considered in the Statement. These interim financial information have been reviewed by other auditors whose reports have 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 these subsidiaries is based solely on the reports of the other auditors and the procedures performed by us as stated in paragraph 3 above.

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

1. The unaudited consolidated financial results includes the financial information of four subsidiaries which have not been reviewed by their auditors, whose interim financial information reflect total assets of Rs. 32,320 lakhs as at 30 September 2019 and, total revenues of Rs. 46 lakhs and Rs. 90 lakhs for the quarter and six months ended 30 September 2019 respectively, total profit after tax of Rs. 1 lakh and Rs. 19 lakhs for the quarter and six months ended 30 September 2019 respectively and total comprehensive income of Rs. 1 lakh and Rs. 19 lakhs for the quarter and six months ended 30 September 2019 respectively and net cash flows of Rs.38 lakhs for the six months ended 30 September 2019, as considered in the Statement. According to the information and explanations given to us by the Management, these financial information are not material to the Group.

Our Conclusion on the Statement is not modified in respect of our reliance on the interim financial information certified by the Management.

For DELOITTE HASKINS & SELLS LLP Chartered Accountants

(Firm's Registration No. 117366W/W-100018)

Attype

Sathya P. Koushik Partner (Membership No.206920) UDIN:19206920AAAAIE4474

Bengaluru, November 11, 2019 SPK/JKS/DSS/2019

DYNAMATIC TECHNOLOGIES LIMITEDCIN: L72200KA1973PLC002308DYNAMATIC PARK, PEENYA, BENGALURU-560 058, INDIAStatement of unaudited consolidated financial results for the quarter and six months ended 30 September 2019

	(INR in lacs, except as otherwise stated)
$SLN2$ .	Particulars	3 months ended30 September 2019Unaudited	Preceding 3 monthsended30 June 2019Unaudited	Corresponding 3months ended inprevious period30 September 2018Unaudited	Year to date figures forthe current periodended30 September 2019Unaudited	Year to date figures forthe previous periodended30 September 2018Unaudited	Previous yearended31 March 2019Audited
$\bf 1$	Continuing operationsIncome
	a) Revenue from operations	32,049	37,468
	b) Other income			36,988	69,517	74,888	1,50,030
	Total income (a+b)	32932,378	19437,662	282	523	759	724
				37,270	70,040	75,647	1,50,754
$\boldsymbol{2}$	Expenses
	a) Cost of materials and components consumed	15,191	17,747	17,514	32,938	39,367	77,411
	b) Change in inventory of finished goods and work-in-	223	1,026	1,832	1,249	(160)	(670)
	progress
	c) Employee benefits expense	6,063	6,480	6,311	12,543	12,766	25,388
	d) Finance costs	2,007	2,097	1,965	4,104	3,836	7,950
	e) Depreciation and amortisation expense	2,224	2,180	1,233	4,404	2,522	4,925
	f) Other expenses	5,790	6,481	7,076	12,271	14,518	30,377
	Total expenses (a+b+c+d+e+f)	31,498	36,011	35,931	67,509	72,849	1,45,381
3	Profit from continuing operations before tax (1 - 2)	880	1,651	1,339	2,531	2,798	5,373
4	Tax expense/ (credit)
	a) Current tax	229	708	682	937
	b) Deferred tax	(30)	(73)	(131)	(103)	1,467(290)	1,2091,048
	Total tax expense (a+b)	199	635	551	834	1,177	2,257
5	Profit after tax from continuing operations$(3 - 4)$	681	1,016	788	1,697	1,621	3,116
	Discontinued operations
6	Profit/(Loss) from discontinuing operations	(150)	(113)	68	(263)	(20)	(460)
$\overline{\tau}$	Tax expense/(credit) of discontinuing operations	(30)	(36)	24	(66)	(7)	(91)
8	Profit/(Loss) after tax from discontinued operations (6-	(120)	(77)	44	(197)	(13)	(369)
	7)
9	Profit for the period (5+8)	561	939	832	1,500	1,608	2,747
10	Other comprehensive income/(loss) (OCI)Items that will not to be reclassified subsequently tostatement of profit and loss
	Premeasurement gain/(loss) on defined benefit plans	(66)	6	141	(60)	86	24
	Income tax relating to items that will not be
	reclassified to statement of profit and loss	17	(2)	(49)	15	(30)	(9)
	Items that will be reclassified subsequently toStatement of profit and loss
	Exchange differences in translating financial
	statements of foreign operations	(356)	(196)	1,284	(552)	807	(721)
11	Other comprehensive income for the period, net of tax	(405)	(192)	1,376	(597)	863	(706)
12	Total comprehensive income for the period (9+11)	156	747	2,208	903	2,471	2,041
13	Paid-up equity share capital (face value of Rs 10/- each)	634	634	634	634	634	634
14	Reserves (Other equity)						31,855
	Earnings per equity share	(not annualised)	(not annualised)	(not annualised)	(not annualised)	(not annualised)	(annualised)
	Earnings per share (for continuing operations)Basic and diluted (Rs)	10.74	16.03	12.43	26.77	25.57	49.15
	Earnings per equity share (for discontinuedoperations)Basic and diluted (Rs)
		(1.89)	(1.21)	0.69	(3.11)	(0.21)	(5.81)
	Earnings per equity share (for continuing and
	discontinued operations)Basic and diluted (Rs)	8.85	14.82	13.12	23.66	25.36	43.33

See accompanying notes to these financial results.

$\begin{array}{c} \text{DYNAMATIC TECHNOLOGIES LIMITED}\ \text{CIN: L72200KA1973PLC002308}\ \text{DYNAMATIC PARK, PEENYA, BENGALURU-560 058, INDIA} \end{array}$

Statement of unaudited consolidated financial results for the quarter and six months ended 30 September 2019

Annexure I: Statement of consolidated segment wise revenue, results, assets and liabilities for the quarter and six months ended 30 September 2019

					(INR in lacs, except as otherwise stated)
		3 months ended	Preceding 3 months	Corresponding 3	Year to date figures for	Year to date figures for	Previous year
SI. No.	Particulars	30 September 2019Unaudited	ended	months ended in	the current period	the previous period	ended
			30 June 2019Unaudited	previous period30 September 2018	ended30 September 2019	ended30 September 2018	31 March 2019Audited
				Unaudited	Unaudited	Unaudited
$\mathbf{I}$	Segment revenue
	a) Hydraulics	7,662	8,680	9,217	16,342	18,058	36,310
	b) Aerospace and Defence	11,900	11,976	11,433	23,876	22,590	46,885
	c) Automotive and Metallurgy	12,487	16,812	16,340	29,299	34,239	66,833
	d) Others			(2)			$\overline{2}$
	Revenue from operations (continuing operations)	32,049	37,468	36,988	69,517	74,888	1,50,030
	e) From discontinued operations - (Refer note 6)	527	662	1,938	1,189	3,912	7,853
	Total revenue from operations (continuing and	32,576	38,130	38,926	70,706	78,800	1,57,883
	discontinued operations)
$\overline{2}$	Segment results [profit/ (loss) before finance costs,other income and tax from each segment)
	a) Hydraulics	222	763	953	985	1,502	3,278
	b) Aerospace and Defence	3,089	2,886	2,524	5,975	4,910	10,255
	c) Automotive and Metallurgy	(482)	488	11	6	352	889
	d) Others	(271)	(583)	(466)	(854)	(889)	(1, 823)
	Total (continuing operations)	2,558	3,554	3,022	6,112	5,875	12,599
	e) From discontinued operations - (Refer note 6)	(150)	(113)	68	(263)	(20)	(460)
	Total (continuing and discontinued operations)	2,408	3,441	3,090	5,849	5,855	12,139
	Unallocable
	- Finance costs	2,007	2,097	1,965	4,104	3,836	7,950
	- Other income	329	194	282	523	759	724
	Profit before tax (continuing and discontinued	730	1,538	1,407	2,268	2,778	4,913
	operations)
3	Segment assets
	a) Hydraulics	30,249	28,294	24,339	30,249	24,339	26,064
	b) Aerospace and Defence	61,410	59,308	54.016	61,410	54,016	51,847
	c) Automotive and Metallurgy	41,334	43,319	44,084	41,334	44,084	41,572
	d) Others	3,132	3,596	3,500	3,132	3,500	3,990
	e) Unallocated	4,721	6,688	3,936	4,721	3,936	7,437
	Segment assets from continuing operations	1,40,846	1,41,205	1,29,875	1,40,846	1,29,875	1,30,910
	f) Relating to discontinued operations (Refer note 6)	7,718	7,484	13,229	7,718	13,229	7,574
	Total assets (continuing and discontinued operations)	1,48,564	1,48,689	1,43,104	1,48,564	1,43,104	1,38,484
$\overline{4}$	Segment liabilities
	a) Hydraulics	14,560	12,808	8,800	14,560	8,800	10,209
	b) Aerospace and Defence	16,537	14,282	7,147	16,537	7,147	6,244
	c) Automotive and Metallurgy	14,183	15,903	14,290	14,183	14,290	16,693
	d) Others	1,928	2,334	409	1,928	409	1,630
	e) Unallocated	67,862	70,030	74,540	67,862	74,540	71,138
	Segment liabilities from continuing operations	1,15,070	1,15,357	1,05,186	1,15,070	1,05,186	1,05,914
	f) Relating to discontinued operations (Refer note 6)	116	96	4,401	116	4,401	81
	Total liabilities (continuing and discontinued	1,15,186	1,15,453	1,09,587	1,15,186	1,09,587	1,05,995
	operations)

Statement of unaudited consolidated financial results for the quarter and six months ended 30 September 2019

Consolidated balance sheet as at 30 September 2019

(INR in lacs, except as otherwise stated)
	As at	As at
Particulars	30 September 2019	31 March 2019
	(Unaudited)	(Audited)
ASSETS
Non-current assets
a) Property plant and equipment	53,003	52,594
b) Capital work in progress	615	556
c) Goodwill	9,031	9,252
d) Other Intangible assets	2,296	2,541
e) Right-of-use assetsf) Financial assets	12,585
(i) Investments
(ii) Loans	34	34
(iii) Other financial assets	1,21318	1,15418
g) Income tax asset (net)	632	632
h) Other non-current assets	73	448
Total non - current assets	79,500	67,229
Current assetsa) Inventories
b) Financial assets	25,513	28,080
(i) Trade receivables
(ii) Cash and cash equivalents	26,1011,455	22,938
(iii) Bank balances other than cash and cash equivalents above	2,612	3,7103,077
$(iv)$ Loans	500	413
c) Other current assets	5,165	5,463
Total current assets	61,346	63,681
Assets classified as held for sale	7,718	7,574
Total Assets	1,48,564	1,38,484
EQUITY AND LIABILITIES
Equity
á) Equity share capital	634	634
b) Other equity	32,744	31,855
Total equity	33,378	32,489
Liabilities
Non-current liabilities
a) Financial liabilities
(i) Borrowings	36,767	39,580
(ii) Lease Liabilities	11,545
b) Provisions	2,261	2,002
c) Deferred tax liabilities (net)	3,320	3,450
d) Other non-current liabilities	88	98
Total non-current liabilities	53,981	45,130
Current liabilities
a) Financial liabilities
(i) Borrowings	23,720	21,604
(ii) Trade Payables
(a) total outstanding dues of micro enterprises and small enterprises	1,199	814
(b) total outstanding dues of creditors other than micro enterprises and small	23,519	26,859
enterprises
(iii) Other financial liabilities	7,618	8,251
(iv) Lease liabilities	2,616
b) Provisions	948	1,156
c) Current tax liabilities (net)	902	423
d) Other current liabilities	566	1,677
Total current liabilities	61,088	60,784
Liabilities directly associated with assets classified as held for sale	117	81
Total liabilities	1,15,186	1,05,995
Total equity and liabilities	1,48,564	1,38,484

CHARTERISee accompanying notes to these financial results.

SKIN

NGALU

ECHNO MANA $\overline{Q}$ BANGALORE

Statementofunauditedconsolidatedfinancialresuttsforthequarteranclsixmonthsended 30September20l9

Statenrent of condensed consolidated cash florv for the six months ended 30 Septembcr 2019

	Sixthmon	INRilakhnsdedsen
Partilacurs	S30bete2019epmr	30Sbete2018epmr
	(U)uditedna	(U)uditedna
		RefNof3ere
Net c(A)hdfrotetivititinasgeneramoperagaces	5,367	5,305
Neti()hininBedsttivitincasusvegaces	(l,)509	(e)sr
N(udetin)/idedhCsefinci()biviticasprovctanngyaes	l3)(6,1	(6),703
Netin(de)in(ACcreaseecreashd)shivaltsBcasanequen++ca	(2),255	(2),349
Chdshivalfthetsbinniasant theiodcaequenoaegngper	3,710	3,988
Chdshftheivaliodtst thendasancaequenoapere	1.455	t.639

See accompanying notes to these financial results.

Cash flows fi'om operating activities is arrived using indirect method.

The above represents cash flows from total operations.

Statement of unaudited consolidated financial results for the quarter and six months ended 30 September 2019

Notes:

• 1 The above financial results for the quarter and six months ended 30 September 2019 were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on 11 November 2019.
• 2 The above results for the quarter and six months ended 30 September 2019 has been subjected to "Limited Review" by Statutory Auditors of the Group. The report of the Statutory Auditors is unmodified. The Ind AS financial results of the Group for the quarter ended 30 June 2019, quarter and six months ended 30 September 2018 and year ended 31 March 2019, were reviewed/ audited by the B S R & Co LLP Chartered Accountants, the predecessor au ditor who have expressed an unmodified review conclusion/opinion.
• 3 The consolidated cash flow statement for the corresponding six months ended 30 September 2018 have been approved by the Company's Board of Directors, and have not been subjected to review by the auditors.
• 4 Mr. Nalini Ranjan Mohanty, independent director retired on 13 August 2019 from the Board of the Company.
• 5 Based on the "Management approach" as defined in Ind AS 108 Operating Segments, the Chief Operating Decision Maker evaluates the Group performance and allocates resources based on an analysis of various performance indicators by business segments. Accordingly, information has been presented along with these business segments viz. Hydraulics, Aerospace and Defence, Automotive and Metallurgy (formerly known as Automotive and Aluminium Castings) and Others. The accounting principles used in the preparation of these financial results are consistently applied to record revenue and expenditure in individual segments. Refer "Annexure I" for segment results.
• 6 Discontinued operations and assets held for sale

During the year ended 31 March 2018, the Board of Directors of the Company vide its meeting dated 28 February 2018, had approved the divestment of "Automotive and Aluminium Castings" ('discontinued business'). Subsequently, the Company had obtained the Shareholders' approval (a substantive approval) vide postal ballot dated 15 May 2018 and accordingly "Automotive and Aluminium Castings" as appearing in the unaudited standalone financial results of the Company was classified as discontinued operation from the quarter ended 30 June 2018.

During the year ended 31 March 2019, the Company had entered into a business transfer agreement with Hi-Tech to sell certain assets of the Aluminium business. The transaction was consummated on 17 January 2019.

The results of discontinued business included in the consolidated financial results are as follows:

		Ouarter ended		(INR in lakhs)Six months endedYear ended
Particulars	30 September 2019 #Unaudited	30 June 2019 #Unaudited	Unaudited	30 September 2018 30 September 2019 #Unaudited	30 September 2018Unaudited	31 March 2019Audited
Revenue	541	662	1938	.203	3912	7853
Expenses	691	775	1870	.466	3932	8313
Loss before tax	(150)	(113)	68	(263)	(20)	(460)

represents the iron business and windfarm business as the Aluminium business sale got consummated on 17 January 2019.

The Group continues to disclose the assets and liabilities of the Iron business and Windfarm (part of "Automotive and Metallurgy") as appearing in the consolidated financial results as "Asset held for sale" as on 30 September 2019 in accordance with Ind AS 105.

Notes (continued):

	Six months ended
Particulars	30 September 2019Unaudited	30 September 2018Unaudited
Net cash generated from operating activities $(A)$	(354)	529
Net cash used in investing activities $(B)$	17)	107
Net cash (used in)/provided by financing activities $(C)$
Net increase/(decrease) in cash and cash equivalents $(A + B + C)$	(371)	636

7 Information on standalone financial results

(INR in lacs, except as otherwise stated)

Particulars	3 months ended30 September 2019Unaudited	Preceding 3months ended30 June 2019Unaudited	Corresponding 3months ended inprevious period30 September 2018Unaudited	Year to date figuresfor the currentperiod ended30 September 2019Unaudited	Year to date figuresfor the previousperiod ended30 September 2018Unaudited	Previous year ended31 March 2019Audited
a. Revenue fromcontinuing operations	14,967	15,337	14,658	30,304	28,645	59,215
b. Profit from continuingoperations before tax	1,940	1,662	1,546	3,602	2,882	5,536
c. Profit from continuingoperations after tax	1,689	1,145	1,030	2,834	1,899	3,599
d. Profit/ (Loss) fromdiscontinued operationsbe fore tax	(150)	(113)	68	(263)	(20)	(460)
$e.$ Profit/(Loss) fromdiscontinued operationsafter tax	(120)	(77)	44	(197)	(13)	(369)

8 Effective 1 April 2019, the Group adopted Ind AS 116 "Leases" applied to its lease contracts existing on 1 April 2019 under the modified retrospective method. Accordingly, the Group has not restated the comparative information for the year ended 31 March 2019. The implementation of Ind AS 116 resulted in recognition of Right-of-Use asset of Rs 14,022 lacs and Rs. 12,322 lacs and Lease liability of Rs Rs. 14,022 Lacs and Rs 14,161 Lacs as on 01 April 2019 and 30 September 2019 respectively. For the quarter and six month ended 30 September 2019, the implementation of Ind AS 116 resulted in lower Profit before tax by Rs 115 lacs and by Rs 265 lacs respectively on account of higher interest cost and depreciation offset by reversal in rent expenses. In the statement of profit and loss for the current period, the nature of expenses in respect of operating leases has changed from lease rent in previous periods to depreciation cost for the "Right-of-Use" asset and finance cost for interest accrued on "Lease Liability".

9 Previous period figures have been regrouped to confirm with the classification adopted in these financial results.

for and on behalf of Board of Directors of Dynamatic Technologies Limited ECHNO

11 ORT

Udayant Malhoutra CEO and Managing Director

Place: Bengaluru Date: 11 November 2019