Dynamatic Technologies Ltd. — Interim / Quarterly Report 2021

Feb 12, 2021

DYNAMATIC TECHNOLOGIES LIMITED

-

12t ^hFebruary 2021

1 . The Secretary Bombay Stock Exchange Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai - 400 001. Fax No. 022 - 2272 312113719 / 2037 / 2039 / 2041 / 2061

1. The Secretary National Stock Exchange of India Limited "Exchange Plaza" Bandra-Kurla Complex Bandra East Mumbai - 400 051 Fax No.022 - 26598237 / 38 / 26598346

Dear Sir / Madam,

Sub: Board Meeting outcome.

Ref: Scrip Code: 505242 / DYNAMATECH

Further to our letter dated 4th February 2021, we write to inform you that the Board considered and approved the Un-Audited Standalone and Consolidated Financial Results for the third quarter ended 31 st December 2020, along with the limited review report by Statutory Auditors of the Company. Copy of the Un-Audited Financial Results have been enclosed incompliance with the provisions of Regulation 30 of SEBI (LODR) Regulations, 2015.

The meeting of Board of Directors held today commenced at 1 :45 pm and concluded at 6.00 pm

The aforesaid information is also available on the website of the company at www.dynamatics.net

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

Thank you.

Yours Sincerely, for DYNAMATIC TECHN~IES LIMITED

C1fi a rn . 1vara

Head Legal, Compliance and Company Secretary

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

Corporate Identity Number: L72200KA1973PLC00?308

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 CONSOLIDATED FINANCIAL RESULTS

TO THE BOARD OF DIRECTORS OF DYNAMATIC 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 nine months ended 31 December 2020 ("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.

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 Parent and the following entities:
• i. JKM Research Farm Limited, India
• ii. JKM Global Pte Limited, Singapore
• iii. Dynamatic Limited, UK
• iv. Yew Tree Investment Limited, UK
• v. Dynamatic US LLC, USA
• vi. JKM Erla Automotive Limited, India
• vii. JKM Automotive Limited, India
• viii. JKM Erla Holdings GmbH, Germany
• ix. Eisenwerk Erla GmbH, Germany
• 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 7 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.

~ Office: lndiabulls Rnance Centre, Tower 3, 27~ - 32"' Floor, Senapati Bapat Marg. Elphinstone Road (West), Mumbai - 400 013, Maharashtra, India. (LLP Identification No. AAB-8737)

• 1. We draw attention to Note 3 in the Statement, which describes that the eventual outcome of impact of the global health pandemic referred therein, may be different from those estimated as on the date of approval of these financial statements. Our report is not modified in respect of this matter.
• 1. We did not review the financial results of five subsidiaries included in the unaudited consolidated financial results, whose interim financial information reflect total revenues of Rs.17,154 lakhs and Rs.40,737 lakhs for the quarter and nine months ended 31 December 2020 respectively, total net loss after tax of Rs.712 lakhs and Rs.2,491 lakhs for quarter and nine months ended 31 December 2020 respectively and total comprehensive loss of Rs.712 lakhs and Rs.2,491 lakhs for quarter and nine months ended 31 December 2020 respectively, 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 these matters.

1. The unaudited consolidated financial results includes the financial results of three subsidiaries which have not been reviewed by their auditors, whose interim financial information reflect total revenue of Rs.49 lakhs and Rs.143 lakhs for the quarter and nine months ended 31 December 2020 respectively, total net profit after tax of Rs.11 lakhs and Rs.10 lakhs for the quarter and nine months ended 31 December 2020 respectively and total comprehensive income of Rs.11 lakhs and Rs.10 lakh for the quarter and nine months ended 31 December 2020 respectively, 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 financial results certified by the Management.

For DELOITTE HASKINS & SELLS LLP

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

Sathya P. Koushik Partner (Membership No.206920) UDIN:21206920AAAACF4124

Bengaluru, February 12, 2021 SPK/JKS/DSS/2021

DYNAMATIC TECHNOLOGIES LIMITED ETN: L72200KA1973PLC002308
DYNAMATIC PARK, PEENYA, BENGALURU-560 058, INDIA Statement of unaudited consolidated financial results for the quarter and nine months ended 31 December 2020

							(INR in lakhs, except as otherwise stated)
SI. No.	Particulars	3 months ended 31 December 2020 (Unaudited)	Preceding 3 months ended 30 September 2020 (Unnudited)	Corresponding 3 months ended in previous period 31 December 2019 (Unaudited)	Year to date figures for the current period ended 31 December 2020 (Unaudited)	Year to date figures for the previous period ended 31 December 2019 (Unaudited)	Previous year ended 31 March 2020 (Audited)
	Continuing operations
$\mathbf{I}$	Income	31,058	28,781	30,781	81,943	1,00,298	1,32,121
	a) Revenue from operations b) Other income	245	(9.1)	23	306	546	1,304
	Total income (a+b)	34,303	28,687	30,804	82,249	1,00,844	1,33,425
$\overline{2}$	Expenses a) Cost of materials and components consumed	17,731	14,811	13,944	39,293	46,882	62,959
	b) Change in inventory of finished goods and work-in-progress	382	(1,212)	901	660	2,150	918
	c) Employee benefits expense	5,888	5,612	6,147	16,595	18,690	25,027
	d) Finance costs	1,676	1,855	2.174	5,453	6,278	8,298
	c) Depreciation and amortisation expense	2,129	2,038	2,311	6,285	6,715	9,017 24,231
	f) Other expenses	6,278	5,481 28,585	5,360 30,837	15,688 83,974	17,631 98,346	1,30,450
	Total expenses (a+b+c+d+e+f)	34,084
$\overline{3}$	Profit/ (loss) from continuing operations before tax (1 - 2)	219	102	(33)	(1, 725)	2,498	2,975
$\mathbf{d}$	Tax expense/ (credit) a) Current tax	277	(169)	(1,034)	108	(97)	(81)
	b) Deferred tax	(172)	102	(276)	(422)	(379)	(2,450)
	Total tax expense (a+b)	105	(67)	(1,310)	(314)	(476)	(2, 531)
5	Profit after tax from continuing operations $(3 - 4)$	114	169	1,277	(1, 411)	2,974	5,506
	Discontinued operations (Refer Note 4)
6	Profit/(Loss) from discontinued operations		÷	(387)		(650)	(1,600)
7	Tax expense/(credit) of discontinued operations	$\alpha$	$\overline{\phantom{a}}$	66	ŵ.
8	Profit/(Loss) after tax from discontinued operations (6-7)	$\omega$	×	(453)	$\sim$	(650)	(1,600)
$\boldsymbol{\theta}$	Profit for the period $(5+8)$	114	169	824	(1, 411)	2,324	3,906
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	(41)	20	(11)	(41)	(71)	(100)
	Income tax relating to items that will not be reclassified to statement of profit and loss	10	(5)	(15)	10	$\overline{\phantom{a}}$	24
	Items that will be reclassified subsequently to Statement of profit and loss
	Foreign currency fluctuations under a cash flow hedge - gain/(loss)	139	Ä		139
	Exchange differences in translating financial statements of foreign operations	1,049	633	1,749	2,056	1,197	997
	Income tax relating to items that will be reclassified to statement of profit	(35)	$\sim$		(35)	i.
$\mathbf{1}$	and loss Other comprehensive income for the period, net of tax	1,122	648	1,723	2,129	1,126	921
12	Total comprehensive income for the period (9+11)	1,236	817	2,547	718	3,450	4,827
	Paid-up equity share capital (face value of INR 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 (INR)	180	2.67	20.14	(22.26)	(6.91)	86.85
	Earnings per equity share (for discontinued operations) Basic and diluted (INR)	$\alpha$	Ä	(715)	2	(10.25)	(25.23)
	Earnings per equity share (for continuing and discontinued operations)
	Basic and diluted (INR):	1.80	2.67	12.99	(22.26)	36.66	61.62

See accompanying notes to these financial results

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DYNAMATIC TECHNOLOGIES LIMITED
CIN: L72200KA1973PLC002308
DYNAMATIC PARK, PEENYA, BENGALURU-560 058, INDIA

Statement of unaudited consolidated financial results for the quarter and nine months ended 31 December 2020

viire I: Stater t of consolidated segment wise revenue, results, assets and liabilities for the quarter and nine months ended 31 December 2020 $\lambda$ nna

	линските н энцепиент от соизониятся зеgment wise геусине, гезинз, аззета ана наринтез тог не цимтет ана инте пютинз споса эт десетирег 2020						(INR in lakhs, except as otherwise stated)
	Sl. No. Particulars	3 months ended 31 December 2020 (Unaudited)	Preceding 3 months ended 30 September 2020 (Unaudited)	Corresponding 3 months ended in previous period 31 December 2019 (Unaudited)	Year to date figures for the current period ended 31 December 2020 (Unaudited)	Year to date figures for the previous period ended 31 December 2019 (Unaudited)	Previous year ended 31 March 2020 (Audited)
1	Segment revenue
	a) Hydraulics	8,336	7,627	6,644	20,025	22,986	29,500
	b) Aerospace	9,085	9,306	13,246	26,521	37,122	49,760
	c) Automotive and Metallurgy	16,312	11,706	10,674	34,930	39,973	52,613
	d) Others	325	142	217	467	217	248
	Revenue from operations (continuing operations)	34,058	28,781	30,781	81,943	1,00,298	1,32,121
	e) From discontinued operations - (Refer note 4)			458		1,661	2,192
	Total revenue from operations (continuing and discontinued operations)	34,058	28,781	31,239	81,943	1,01,959	1,34,313
$\overline{2}$	Segment results [profit/ (loss) before finance costs, other income and tax from each segment)
	a) Hydraulics	616	578	74	733	1,059	818
	b) Aerospace	1,656	2,243	2,625	5,683	8,600	11,195
	c) Automotive and Metallurgy	(84)	(287)	(29)	(1,646)	(23)	(528)
	d) Others e) Unallocated	(241) (297)	(119) (364)	(373) (179)	(447) (901)	(563) (843)	(614) (902)
	Total (continuing operations)	1,650	2,051	2,118	3,422	8,230	9,969
	e) From discontinued operations - (Refer note 4)			(387)		(650)	(1,600)
	Total (continuing and discontinued operations)	1,650	2,051	1,731	3,422	7,580	8,369
	Unallocable
	- Finance costs	(1,676)	(1, 855)	(2, 174)	(5, 453)	(6, 278)	(8, 298)
	- Other income	245	(94)	23	306	546	1,304
	Profit before tax (continuing and discontinued operations)	219	102	(420)	(1, 725)	1,848	1,375
$\mathbf{3}$	Segment assets
	a) Hydraulics	25,850	25,564	30,033	25,850	30,033	28,823
	b) Aerospace	57,320	56,873	63,166	57,320	63,166	60,478
	c) Automotive and Metallurgy	39,379	39,757	40,198	39,379	40,198	40,655
	d) Others	8,916	8,840	3,303	8,916	3,303	9,692
	c) Unallocated	6,229 1,37,694	8,114 1,39,148	6,067 1,42,767	6,229 1,37,694	6,067 1,42,767	9,431 1,49,079
	Segment assets from continuing operations f) Relating to discontinued operations
	Total assets (continuing and discontinued operations)	1,37,694	1,39,148	7,347 1,50,114	1,37,694	7,347 1,50,114	1,49,079
$\overline{4}$	Segment liabilities
	a) Hydraulics	12,336	12,377	14,706	12,336	14,706	15,380
	b) Acrospace	14,531	14,167	18,133	14,531	18,133	16,440
	c) Automotive and Metallurgy	12,663	12,887	13,158	12,663	13,158	15,756
	d) Others	1,391	1,443	2,055	1,391	2,055	1,308
	e) Unallocated	59,021	61,479	65,987	59,021	65,987	62,882
	Segment liabilities from continuing operations	99,942	1,02,353	1,14,039	99,942	1,14,039	1,11,766
	f) Relating to discontinued operations			133		133
	Total liabilities (continuing and discontinued operations)	99,942	1,02,353	1,14,172	99,942	1,14,172	1,11,766

M Comme

DYNAMATIC TECHNOLOGIES LIMITED CIN: 1.72200KA1973PLC002308 DYNAMATIC PARK, PEENYA, BANGALORE-560 058, INDIA

Statement of unaudited consolidated financial results for the quarter and nine months ended 31 December 2020

Notes:

1 The above financial results for the for the quarter and nine months ended 31 December 2020 were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on 12 February 2021.

2 Information on standalone financial results

					(INR in lakhs, except as otherwise stated)
Particulars	3 months ended 31 December 2020 (Unnudited)	Preceding 3 months ended 30 September 2020 (Unaudited)	Corresponding 3 months ended in previous period 31 December 2019 (Unaudited)	Year to date figures for the current period ended 31 December 2020 (Unaudited)	Year to date figures for the previous period ended 31 December 2019 (Unaudited)	Previous year ended 31 March 2020 (Audited)
a Revenue from continuing operations	14,041	13,445	14,102	36,423	44,406	56,963
b Profit from continuing operations before tax	1,382	1,218	1,243	2,594	4,845	5,477
c. Profit from continuing operations after tax and exceptional items	1,154	1,135	(16, 841)	2,273	(14,007)	(19, 174)
d. Profit/ (Loss) from discontinued operations before tax	G.	Φ	(387)	×	(650)	(1,600)
e, Profit/(Loss) from discontinued operations after tax	÷,	÷.	(453)	ž	(650)	(1,600)

1. The global pandemic COVID-19, has impacted economics across the globe and the disruption has resulted in economic slowdown worldwide. The manufacturing operations of the Group were suspended for a part of the period ended 31 December 2020 due to the nationwide lockdown announced by the jurisdictional local governments in view of COVID 19. The Group's facilities resumed operations in a phased manner, aligned with the directives announced by the jurisdictional authorities from time to time, prioritizing the health and safety of all the stakeholders across the value chain,

The Group has evaluated impact of COVID 19 in assessing the recoverability of assets, more particularly carrying value of goodwill and property, plant and equipment. Such assessment consider internal and external information, including current indicators of future economic conditions. The Group continues to focus on maintaining liquidity and expects a gradual recovery of demand and supply in future months. The ultimate eventual impact of the pandemic on the results may differ from that estimated as at the date of the approval of these results. Such changes, if any, will be prospectively recognized. The Group will continue to closely monitor any material changes to future economic conditions and assess its impact on operations.

4 Discontinued operations included in the above results for the comparable periods of the preceding year relates to the following:

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'). The discontinued businesses included the Aluminium business, the Tron business and the Windfarm 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' 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 to sell certain assets of the Aluminium business. The transaction was consummated on 17 January 2019.

Based on the current management's strategy and in accordance with Ind AS 105- Non-current Assets Held for Sale and Discontinued Operations, the Company has classified the windfarm land from assets held for sale to Property, Plant and Equipment as at 31 March 2020. Prior to this, the said asset was presented as Assets held for sale

DYNAMATIC TECHNOLOGIES LIMITED CIN: L72200KAl973PLC002308 DYNAMATIC PARK, PEENYA, BANGALORE-560 058, INDIA

Statement of unaudited consolidated financial results for the quarter and nine months ended 31 December 2020

Notes:

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

		Quarter 1?11ded			Nine Months ended
Particulars	l month, ended JI Dccem ber 2020 (Un•udited)	Preceding J months ended JO September 2020 (Unaudited)	Corrc.tponding J months ended in prcvioua period 31 December2019 (Unaudited)	Vear lo dole figures for the current period ended 31 Oeccmbcr 2020 (Unaudited)	Ve11r to Uutc ligurcs for the previous pcrloll cn <lc<l 31 Dccembcr2019 (Unaudited)</lc<l	Previous year ended 31 Mnrch 2020 (Audited)
Revenue	-	-	458	-	1,661	2.192
Exoenses	-	-	845	-	2.311	3.792
Loss before tax	-	-	(387)	-	(650)	(1.600)#

II Includes loss of INR 974 lakhs on reduction of fatr value of Property, plant and equipment.

5 The Board of Directors of JKM Ferrotech Limited ('JFTL'), a wholly subsidiary of the Company, vidc its meeting dated 1 February 2021 has approved the term sheet and plan for sale of its foundry business assets which consists of Property, plant and equipment (including land and building), raw materials and spare parts inventory and other financial assets identified us per the term sheet dated I February 2021 , situated at SIPCOT Industrial Complex, Gumidipoondi, Thiruvnllur, Tamil Nadu to Mis. Danblock Brakes India Private Limited

Subsequent to the quarter end, the Company has intimated the stock exchanges vidc letter dated I February 2021 that based on lhe term sheet approved by the board of directors of the Company, the sale of foundry business assets as mentioned above is expected to be effective by end of March 2021, subject to satisfactory completion of conditions precedent and other terms of the definitive agreements

The foundry business of JFTL represents the Indian operations of the "Automotive and Metallurgy" segment which is presented in Annexure I of this Statement.

• 6 The Code on Wages, 2019 and Code on Social Security, 2020 ("the Codes") relating to employee compensation and post-employment benefits lhat received Presidential assent have not been notified , Further, the related rules for quantifying the financial impael have not been notified The Group will assess the impact of the Codes when the rules arc notified and will record any related impacl in the period lhe Codes becomes effective
• 7 The previous period figures have been regrouped wherever necessary lo conform lo current period's presentation

for and on behalf of Board of Directors of Dynamatic Technologies Limitrd , , ¹

Udayant Malhoutrn CEO nnd Managing Director

Place: Bengal uru Date: 12 February 2021

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 FINANCIAL RESULTS

TO THE BOARD OF DIRECTORS OF DYNAMATIC TECHNOLOGIES LIMITED

• 1. We have reviewed the accompanying Statement of Unaudited Standalone Financial Results of DYNAMATIC TECHNOLOGIES LIMITED ("the Company") for the quarter and nine months ended 31 December 2020 ("the Statement"), being submitted by the Company 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 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.
• 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.
• 1. We draw attention to Note 2 in the Statement, which describes that the eventual outcome of impact of the global health pandemic referred therein, may be different from those estimated as on the date of approval of these standalone financial results. Our report is not modified in respect of this matter.

For DELOITTE HASKINS & SELLS LLP Chartered Accountants (Firm's Registration No. 117366W/W-100018)

Sathya P. Koushik Partner (Membership No. 206920) UDIN: 21206920AAAACE6253

Bengaluru, February 12, 2021 SPK/JKS/DSS/2021

Regd. Office: lndiabulls Rnance Centre, Tower 3, 27~ - 32"' Floor, Senapati Bapat Marg. Elphinstone Road (West), Mumbai - 400 013, Maharashtra, India. (LLP Identification No. AAB-8737)

		(INR in lakhs, except as otherwise stated)
SE. No	Farticulars	3 months ended 31 December 2020 (Unaudited)	Preceding 3 months ended 30 September 2020 (Unaudited)	Corresponding 3 months ended in previous period. 31 December 2019 (Ummiliteil)	Year to date figures for the current period. ended 31 December 2020 (Unaudited)	Year to date figures for the previous period ended 31 December 2019 (Unaudited)	Previous year ended 31 March 2020 (Audited)
	Continuing operations
	Income	14,041	13,445	14,102	36,423	$-11,406$	56,963
	a) Revenue from operations	273	(S5)	209	288	961	1,636
	b) Other income Total income (a+b)	14,314	13,360	14,311	36,711	45,370	58,599
$\overline{2}$
	Expenses a) Cost of raw materials and components consumed	7,155	6,015	6,195	16,062	19,113	25,200
	b) Changes in inventories of finished goods and work-in-progress	(S62)	(208)	(135)	(703)	254	(706)
	c) Employee benefits expense	2,096	2,078	2,093	5,974	0, 282	8,379 7,026
	d) Finance costs	1,346 803	1,558 740	1,789 675	4,560 2,305	5,235 2,518	3,389
	e) Depreciation and amortisation expense f) Other expenses	2,394	1.959	2.251	5,913	7.123	9.834
	Total expenses (a+b+c+d+c+f)	12,932	12,142	13,068	34,117	40,525	53,122
3	Profit from continuing operations before exceptional item and tax (1 -	1,382	1,218	1,243	2,594	4,845	5,477
$\mathbf{A}$	2) Exceptional items (Refer Note 3)			19,188		19,188	27,108
5	Profit/ (loss) from continuing operations before tax (3 - 4)	1,382	1,218	(17, 945)	2.594	(14, 343)	(21, 631)
6	Tax expense
	a) Current tax	748	705	(345)	(15.3)
	b) Deferred tax	(120)	(222)	(259)	(332) 321	(336) (336)	(2.457) (2, 457)
	Total tax expense (a+b)	228	83	(1, 104)
7	Profit/ (loss) after tax from continuing operations (5 - 6)	1,154	1,135	(16, 841)	2,273	(14,007)	(19, 174)
	Discontinued operations (Refer Note 4)			(387)	$\sim$	(650)	(i, 600)
8 $\mathbf{Q}$	Profit/(Loss) from discontinued operations Tax expense/(credit) of discontinued operations	ý.	ł,	66
10	Profit/(Loss) after tax from discontinued operations (6-7)			(453)	c	(650)	(1,600)
$\frac{1}{2}$	Profit/ (loss) for the period (7+10)	1,154	1.135	(17, 294)	2,273	(14, 657)	(20, 774)
12	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 Income tax relating to items that will not be reclussified to statement of profit and loss Items that will be reclassified subsequently to Statement of profit and loss	(41) 10	20 (5)	(11) (15)	(41) 0	(71)	(9.1) 24
	Foreign currency fluctuations under a cash flow hedge - gain/(loss)	139			139
	Income tax relating to items that will be reclassified to statement of profit	(35)		ü	(35)
	and loss	73	15	(26)	73	(71)	(70)
	Other comprehensive income for the period, net of tax
3	Total comprehensive income/ (loss) for the period (11+12)	1,227	1,150	(17, 320)	2,346	(14, 728)	(20, 844)
12	Paid-up equity share capital (face value of INR 10/- each)	634	634	634	634	634	634
3	Reserves (Other equity)						30,202
	Earnings per equity share	(not annualised)	(not animalised)	(not annualised)	(not annualised)	(not annualised)	(annualized):
	Earnings per share (for continuing operations) Basic and Diluted (INR)	18.20	1789	(265 63)	3585	(220.93)	(302.43)
	Earnings per equity share (for discontinued operations) Basic and Diluted (INR)			(7.15)		(10.25)	(25 24)
	Earnings per equity share (for continuing and discontinued operations)
	Basic and Diluted (INR)	18.20	1789	(272, 78)	3585	(23118)	(32767)
	this association in potes to these financial results.

DYNAMATIC TECHNOLOGIES LIMITED
CIN: L72200KA1973PLC002308
DYNAMATIC PARK, PEENYA, BANGALORE-560 058, INDIA
Statement of unaudited standalone financial results for the quarter and nine months ended 31 December 2020

DYNAMATIC TECHNOLOGIES LIMITED
CIN: L73200KA1973PLC003308
DYNAMATIC PARK, PEENYA, BANGALORE-560 058, INDIA
Statement of unaudited standalone financial results for the quarter and nine months ended 31 December 2020
ement of

. . . . . . .
. . . . . . . . . . . . . $mbar 7020$

	Annexure 1: Statement of Standalone segment wise revenue, results, assets and habilities for the quarter and nine months enued 31 December 2020					(INR in lakhs, except as otherwise stated)
SI. No.	Particulars	3 months ended 31 December 2020 (Unaudited)	Preceding 3 months ended 30 September 2020 (Unaudited)	Corresponding 3 months ended in previous period 31 December 2019 (Unaudited)	Year to date figures for the current period ended 31 December 2020 (Unaudited)	Year to date figures for the previous period ended 31 December 2019 (Unaudited)	Previous year ended 31 March 2020 (Audited)
$\mathbf{1}$	Segment revenue
	a) Hydraulics	6,160	5,624	4,708	13,886	16,851	20,902
	b) Aerospace	7,790	7,553	9,106	22,070	27,136	35,535
	c) Others	91	268	288	467	419	526
	Revenue from operations (continuing operations)	14,041	13,445	14,102	36,423	44,406	56,963
	d) from discontinued operations- (Refer note 4)			458		1,661	2,192
	Total revenue from operations (continuing and discontinued operations)	14,041	13,445	14,560	36,423	46,067	59,155
$\mathbf{z}$	Segment results [profit/ (loss) before finance costs, other income and tax from each segment)
	a) Hydraulics	717	612	226	921	1,511	1,155
	b) Aerospace	2,300	2,737	2,842	7,316	8,677 (229)	11,218 (313)
	c) Others	(264) (298)	(123) (365)	(66) (179)	(462) (903)	(843)	(1, 193)
	d) Unallocated Total (continuing operations)	2,455	2,861	2,823	6,872	9,116	10,867
	d) From discontinued operations- (Refer Note 4)			(387)		(650)	(1,600)
	Total (continuing operations and discontinued operations)	2,455	2,861	2,436	6,872	8,466	9,267
	Unallocable
	- Finance Cost	(1, 346)	(1, 558)	(1, 789)	(4, 566)	(5, 235)	(7,026)
	- Other income	273	(85)	209	288	964	1,636
	- Exceptional gain/(Loss) (Refer Note 3)			(19, 188)		(19, 188)	(27, 108)
	Profit before tax (continuing and discontinued operation)	1,382	1,218	(18, 332)	2,594	(14, 993)	(23, 231)
$\overline{\mathbf{3}}$	Segment Assets
	a) Hydraulics	12,876	13,146	15,741	12,876	15,741	15,340
	b) Aerospace	41,647	41,544	44,350	41,647	44,350	43,510
	c) Others	6,124	6,266	2,348	6, 124	2,348	8,647
	d) Unallocated	41,522	40,884	45,473	41,522	45,473 1,07,912	38,234 1,05,731
	Segment assets from continuing operations	1,02,169	1,01,840	1,07,912 7,347	1,02,169	7,347
	c) Relating to discontinued operations	1,02,169	1,01,840	1,15,259	1,02,169	1,15,259	1,05,731
	Total assets (continuing and discontinued operation)
4	Segment Linbilities
	a) Hydraulics	8,411	8,610	9,287	8,411	9,287	10,562
	b) Aerospace	8,547	8,274	9,659	8,547	9,659	9,508
	c) Others	570	632	2,049	570	2,049	1,467
	d) Unallocated	51,735	52,369	57,179	51,735	57,179	53,358
	Segment Liabilities from continuing operations	69,263	69,885	78,174	69,263	78,174	74,895
	e) Relating to discontinued operations			133		33
	Total Linbilities (continuing and discontinued operation)	69,263	69,885	78,307	69,263	78,307	74,895

See accompanying notes to the financial results

$\,$

DYNAMATIC TECHNOLOGIES LIMITED CIN: L 72200KA1973PLC002308 DYNAMATIC PARK, PEENYA, BANGALORE-560 058, INDIA

Statement of unaudited standalone financial results for the quarter and nine months ended 31 December 2020

Notes:

• The above financial results for the quarter and nine months ended 31 December 2020 were reviewed by the Audit Commit1ee and approved by the Board of Directors at their meeting held on 12 February 2021.
• 2 The global pandemic COVID-19, has impacted economics across the globe and the disruption has resulted in economic slowdown worldwide. The Company's manufacturing operations were suspended for n part of the quarter and nine months ended 31 December 2020 due to the nationwide lockdown announced by the Government of India in view of COVID 19. The Company's facilities resumed operations in a phased manner, aligned with the directives announced by the jurisdictional authorities from time to time, prioritizing the health and safety of all the stakeholders across the value chain.

The Company has evaluated impact of COVID 19 in assessing the recoverability of assets, more particularly carrying value of property, plant and equipment and investments. Such assessment consider internal and external information, including current indicators of future economic conditions. The Company continues to focus on maintaining liquidity and expects a gradual recovery of demand and supply in future months. The ultimate eventual impact of the pandemic on the results may differ from that estimated as at the date of the approval of these results. Such changes, if any, will be prospectively recognized. The Company will continue to closely monitor any material changes to future economic conditions and assess its impact on operations.

3 Exceptional items during the quarter and year ended 31 March 2020 related to the following:

On 11 February 2020, the board of JKM Ferrotech Limited ('JFTL'), a subsidiary of the Company, have approved a Scheme of capital reduction, subject to regulatory approvals. The said scheme has been filed with the National Company Law Tribunal ('NCLT') in March 2020.

The Company undertook an impairment assessment in respect of its direct and indirect investments in JFTL and has recognised an impairment loss of!NR 12,621 lakhs and writ1cn off trade advances given to JFTL of!NR 6,567 lakhs in the quarter ended 31 December 2019.

The Company also undertook impairment assessment of its other investments in subsidiaries as at 31 March 2020 and has recognised an impairment loss or INR 1,900 lakhs and INR 6,020 lakhs in respect of its investment in JKM Global Ptc Limited, Singapore ('JGPL') and JKM Erin Automotive Limited, India ('JEAL') respectively, in the quarter ended 31 March 2020.

The same has been included in the above standalone financial results under 'Exceptional items', and docs not have any impact on consolidated results.

The consequential reversal of deferred tax liability of INR 1,845 Lakhs for the quarter and year ended 31 March 2020 is recognised as credit under deferred tax expense (on the impairment loss in respect of investment in JGPL and JEAL).

OYNAMATIC TECHNOLOGIES LIMITED CJN: L72200KAI 973PLC002308 DYNAMATIC PARK, PEENYA, BANGALORE-560 058, INDIA

Statement of unaudited standalone financial results for the quarter and nine months ended 31 December 2020

Notes:

4 Discontinued operations included in the above results for the comparable periods of the preceding year relates to the following:

During thu yenr ended 31 March 20 18, thC! 13011rd of Dircct·ors of tJ1c Company vidc its m1:cti11g datecl 28 Fcbnmry 20 I K, had npprovcd the div ·~lmcnt of 'Automo tive nnd Aluminium Castings' (' dfacontim1cd business' ).- The discontinuocl businesses included the Alu111il\ium business, 1hc Iron business 11nd Lhc Wi.nd iium business. ubscqucntly, the Company had obwincd the Shareholders' approval (a substantive approval) vidc postal ballot dnted 15 Mny 20 18 and accordingly 'Apt motive 11ml Aluminium Castings' wns 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 lo sell Cl!rtain assets of the Aluminium business. The transaction was consummated on 17 January 2019.

Based on the current management's strategy and in accordance with Ind AS I 05- Non-current Assets Held for Sale and Discontinued Operations, the Company has classified the windfarm land from assets held for sale to Property, Plant and Equipment as at 31 March 2020. Prior to this, the said asset was presented as Assets held for sale.

The results of discontinued business included in the standalone limmcial results arc as follows:

		Quarter ended		Nine Months ended	Year ended
Particulars	3 months ended 3 I Dccem her 2020 (Unaudited)	Preceding 3 months ended 30 Septem her 2020 (Unaudited)	Corresponding J months ended in previous period 31 Dcccm ber 2019 (Unaudited)	for the current period ended 3 I Dec cm bcr 2020 (Unaudited)	Year to date figures Year to date figures for the previous period ended 31 December 2019 (Unaudited)	Previous year ended 31 March 2020 (Audited)
Revenue	-	-	458	-	1,661	2,192
Expenses		-	845	-	2,311	3,792
Loss before tax	-	-	(387)	-	(650)	(1.600)/1

(INR in lakhs, except as otherwise stated)

Includes loss of INR 974 lakhs on reduction of fair value of Property, plant and equipment.

• 5 The Code on Wages, 2019 and Code on Social Security, 2020 ("the Codes") relating to employee compensation and postc111 ploymc11l benefits that received Presidentia l assent have not been notified . Further, the related rules for quantifying the fi nuncinl impact have not been notified. The Company will assess the impact of the Codes when th.: rules arc notified and will record any re lated impact in the period tht: CotlcS becomes cffitct1Ye .
• 6 The previous period figures have been regrouped wherever necessary lo conform to current period's presentation.

/or and on behalf of Board ofDirec!ors of Dynamatic Technologies Limited

l!dayant Malhoutra CEO and Managing Director

Place: Bcngaluru Date: 12 February 2021