Elgi Equipments Ltd. — Annual Report 2022

May 13, 2022

May 13, 2022

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National Stock Exchange of lndia Ltd. Exchange Plaza, C-1, Block G Bandra Kurla Complex Bandra (E) Mumbai - 400 051

BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai - 400 001

Scrip Code : ELGIEQUIP

Scrip Code : 522074

Through : Digital Platform/NEAPS

Through : BSE Listing Centre

Dear Sir/Madam,

Subject: Financial results for the quarter and year ended March 31, 2022 and recommendation of dividend

The Board of Directors of the Company, at its meeting held today, have inter-alia taken on record and approved/recommended the following:

• 1) Approved the Audited Standalone Financial Results and Consolidated Financial Results of the Company and its Subsidiaries for the quarter and financial year ended March 31, 2022. Pursuant to Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing the statement showing the Audited Standalone and Consolidated Financial Results for the quarter and year ended March 31, 2022, along with the Statutory Auditors’ Report.

A copy of the communication being released to the Press in this regard is also attached.

We hereby declare that the Statutory Auditors of the Company, Price Waterhouse Chartered Accountants LLP, have in their reports, issued an unmodified opinion on the Audited Standalone and Consolidated Financial Results for the financial year ended March 31, 2022.

• 2) Recommended for the approval of the shareholders, a final dividend of Rs.1.15/- per equity share of Re.1/- each for the financial year ended March 31, 2022. The said dividend, if declared and approved by the shareholders at the forthcoming Annual General Meeting (“AGM”), shall be paid on or before September 11, 2022 to the shareholders whose name stands on the Register of Members and as beneficial owners with the depositories as on Friday, August 5, 2022.

• 3) Recommended the re-appointment of Price Waterhouse Chartered Accountants LLP (Firm Registration No.012754N/N500016), Chennai, as the statutory auditors of the Company, for a second term of consecutive 5 (five) years to hold office from the conclusion of this sixty second AGM to be held in the year 2022 until the conclusion of the sixty seventh AGM of the Company to be held in the year 2027, subject to the approval of the shareholders of the Company.

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• 4) The sixty second AGM of the shareholders of the Company is scheduled to be held on Friday, August 12, 2022 and the Register of Members will be closed from Saturday, August 6, 2022 to Friday, August 12, 2022 (both days inclusive) for the purpose of determining the Members who are eligible to receive the final dividend, if any, declared by the shareholders at the AGM.

The meeting commenced at 3.15 PM and concluded at 5.45 P.M.

This is for your information and records.

Yours faithfully,

For Elgi Equipments Limited

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S Prakash Company Secretary

Encl.: a/a

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Standalone Statement of Financial Results for the quarter and year ended March 31, 2022

		(Rs. in Millions,exceptper equityshare data)	(Rs. in Millions,exceptper equityshare data)	(Rs. in Millions,exceptper equityshare data)	(Rs. in Millions,exceptper equityshare data)	(Rs. in Millions,exceptper equityshare data)
S. No.	Particulars	Quarter ended			Year ended
		March 31, 2022	December 31, 2021	March 31, 2021	March 31, 2022	March 31, 2021
		Audited (Refer note 6)	(Unaudited)	Audited (Refer note 6)	(Audited)	(Audited)
1 2	Income (a) Revenue from operations (b) Other income Total income Expenses (a) Cost of materials consumed (b) Purchases of stock-in-trade (c) Changes in inventories of finished goods, stock-in- trade and work-in-progress (d) Employee benefits expense (e) Finance costs (f) Depreciation and amortisation expense (g) Other expenses Total expenses	4,561.11 102.00	4,085.45 89.89	3,926.37 66.93	15,825.90 456.80	11,001.70 240.60
		4,663.11	4,175.34	3,993.30	16,282.70	11,242.30
		2,318.45 366.98 4.08 432.46 (0.31) 100.16 638.50	2,238.53 308.24 (95.56) 418.25 6.45 89.36 592.79	2,017.80 273.97 23.91 432.04 7.27 86.68 500.46	8,430.29 1,311.33 (248.84) 1,696.11 16.43 367.68 2,196.27	5,330.47 944.19 114.08 1,563.13 36.80 353.29 1,498.42
		3,860.32	3,558.06	3,342.13	13,769.27	9,840.38
3	Profit before tax (1 - 2)	802.79	617.28	651.17	2,513.43	1,401.92
4	Tax expense: Current tax Deferred tax	207.36 (10.95)	168.74 (9.28)	162.90 (0.24)	657.53 (37.61)	361.55 (10.53)
5	Net Profit for theperiod (3 - 4)	606.38	457.82	488.51	1,893.51	1,050.90
6 7 8 9 10 11	Other comprehensive income/(loss), net of income tax A. Items that will not be reclassified to profit or loss B. Items that will be reclassified to profit or loss Total other comprehensive income/(loss), net of income tax Total comprehensive income for the period (5+6) Paid-up equity share capital (Face value Re. 1/- each) Weighted average number of shares outstanding for (a) Basic EPS (b) Diluted EPS Earnings per share (of Re. 1 /- each) (not annualised): (a) Basic (b) Diluted Reserves excluding Revaluation reserve	7.84 -	6.90 -	14.21 -	40.47 -	47.33 -
		7.84	6.90	14.21	40.47	47.33
		614.22	464.72	502.72	1,933.98	1,098.23
		316.91 316.31 316.64 1.92 1.92	316.91 316.31 316.47 1.45 1.45	316.91 316.31 316.41 1.54 1.54	316.91 316.31 316.50 5.99 5.98 9,524.31	316.91 316.48 316.48 3.32 3.32 7,840.29

For and on behalf of the Board of Directors

Place: Coimbatore Date: May 13, 2022 BASKAR Digitally signed by BASKAR PANNERSE PANNERSELVAM Date: 2022.05.13 LVAM 17:24:51 +05'30'

JAIRAM Digitally signed by JAIRAM VARADAR VARADARAJ Date: 2022.05.13 AJ 17:02:54 +05'30' Jairam Varadaraj Managing Director

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Notes:

1	The above standalone statement of financial results were reviewed by the Audit Committee and approved by the Board of Directors of Elgi Equipments Limited ("the Company") at its meeting held on May 13, 2022. The statutory auditors of the Company have audited the standalone statement of financial results for the year ended March 31, 2022.
2	This statement has been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 (Ind AS) prescribed under Section 133 of the Companies Act, 2013 and other recognised accounting practices and policies to the extent applicable.
3	The spread of COVID-19 impacted businesses around the globe from March 2020 onwards. The situation is constantly evolving and Governments in certain states imposed various restrictions during the previous year and also during certain parts of the current year. The restrictions are being relaxed globally with growing rate of vaccination. As at March 31, 2022, the Company has made detailed assessment of its liquidity position for the next one year and of the recoverability and carrying values of its assets comprising Property, plant and equipment, Intangible assets, Trade receivables, Inventory and Investments and has concluded that were are no material adjustments required in the standalone financials results. The Company will continue to monitor any material changes to the future economic conditions.
4	The business activities reflected in the above standalone financial results comprise of manufacturing and sale of compressors. Accordingly, there is no other reportable segment as per Ind AS 108 Operating Segments.
5	The Board of Directors have recommended a dividend of₹ 1.15/- per share (115%) for the year ended March 31, 2022.
6	The figures for the current quarter and the quarter ended March 31, 2021 are the balancing figures between audited figures of the full financial year ended March 31, 2022 and March 31, 2021 ,respectively and published year to date figure upto third quarter ended December 31, 2021 and December 31, 2020 respectively.
7	Figures for the comparative periods have been regrouped wherever necessary in conformity with present classification.

For and on behalf of the Board of Directors

JAIRAM Digitally signed by JAIRAM VARADAR VARADARAJ Date: 2022.05.13 AJ 17:03:15 +05'30'

Place: Coimbatore Date: May 13, 2022

Jairam Varadaraj Managing Director

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Statement of Consolidated Financial Results for the quarter and year ended March 31, 2022

		(Rs. in Millions,exceptper equityshare data)	(Rs. in Millions,exceptper equityshare data)	(Rs. in Millions,exceptper equityshare data)	(Rs. in Millions,exceptper equityshare data)	(Rs. in Millions,exceptper equityshare data)
S. No.	Particulars	Quarter ended			Year ended
		March 31, 2022	December 31, 2021	March 31, 2021	March 31, 2022	March 31, 2021
		Audited (Refer note 8)	(Unaudited)	Audited (Refer note 8)	(Audited)	(Audited)
1 2	Income (a) Revenue from operations (b) Other income Total income Expenses (a) Cost of materials consumed (refer note 7) (b) Purchases of stock-in-trade (refer note 7) (c) Changes in inventories of finished goods, stock-in-trade and work-in-progress (d) Employee benefits expense (e) Finance costs (f) Depreciation and amortisation expense (g) Other expenses Total expenses	7,276.14 149.60	6,556.15 108.19	6,105.91 57.80	25,247.06 549.74	19,240.50 234.98
		7,425.74	6,664.34	6,163.71	25,796.80	19,475.48
		3,099.30 972.82 (279.83) 1,229.81 23.96 199.25 1,192.43	3,102.69 774.93 (349.94) 1,252.95 30.08 177.69 1,036.52	2,628.84 696.96 10.43 1,123.32 31.63 196.42 854.56	11,503.51 3,169.39 (1,102.61) 4,839.47 111.11 744.93 3,913.87	7,380.19 2,589.11 306.40 4,117.42 134.83 743.38 2,690.81
		6,437.74	6,024.92	5,542.16	23,179.67	17,962.14
3	Profit before share of profit/(loss) of joint ventures and tax (1 - 2)	988.00	639.42	621.55	2,617.13	1,513.34
4	Share of Profit/(loss) of joint venture	8.59	(2.73)	6.25	13.18	14.16
5	Profit before tax (3+ 4)	996.59	636.69	627.80	2,630.31	1,527.50
6	Tax expense: Current tax Deferred tax	268.61 (2.62)	220.91 (1.56)	217.12 (22.95)	846.57 (0.54)	515.57 (12.92)
7	Net Profit for the period (5 -6)	730.60	417.34	433.63	1,784.28	1,024.85
8 9 10 11 12 13	Other comprehensive income/(loss), net of income tax A. Items that will not be reclassified to profit or loss B. Items that will be reclassified to profit or loss Total other comprehensive income, net of income tax Total comprehensive income for the period (7 +8) Net Profit attributable to: - Owners - Non-controlling interests Total comprehensive income attributable to: - Owners - Non-controlling interests Paid-up equity share capital (Face value Re. 1/- each) Weighted average number of shares outstanding for (a) Basic EPS (b) Diluted EPS Earnings per share (of Re. 1 /- each) (not annualised): (a) Basic (b) Diluted Reserves excluding Revaluation reserve	7.86 19.15	6.90 2.05	14.36 (6.88)	40.49 31.93	47.48 (22.18)
		27.01	8.95	7.48	72.42	25.30
		757.61	426.29	441.11	1,856.70	1,050.15
		730.60 - 757.61 - 316.91 316.31 316.64 2.31 2.31	417.34 - 426.29 - 316.91 316.31 316.47 1.32 1.32	433.63 - 441.11 - 316.91 316.31 316.41 1.37 1.37	1,784.28 - 1,856.70 - 316.91 316.31 316.50 5.64 5.64 10,008.22	1,024.85 - 1,050.15 - 316.91 316.48 316.48 3.24 3.24 8,381.95

For and on behalf of the Board of Directors

Place: Coimbatore Date: May 13, 2022 BASKAR Digitally signed by BASKAR PANNERSEL PANNERSELVAM Date: 2022.05.13 VAM 17:25:51 +05'30'

JAIRAM Digitally signed by JAIRAM VARADAR VARADARAJ Date: 2022.05.13 AJ 17:03:33 +05'30' Jairam Varadaraj Managing Director

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Notes:

1	The above statement of consolidated financial results were reviewed by the Audit Committee and approved by the Board of Directors of Elgi Equipments Limited ("the Company") at their meeting held on May 13, 2022. The statutory auditors of the Company have audited the statement of consolidated financial results for the year ended March 31, 2022.	The above statement of consolidated financial results were reviewed by the Audit Committee and approved by the Board of Directors of Elgi Equipments Limited ("the Company") at their meeting held on May 13, 2022. The statutory auditors of the Company have audited the statement of consolidated financial results for the year ended March 31, 2022.	The above statement of consolidated financial results were reviewed by the Audit Committee and approved by the Board of Directors of Elgi Equipments Limited ("the Company") at their meeting held on May 13, 2022. The statutory auditors of the Company have audited the statement of consolidated financial results for the year ended March 31, 2022.
2	This statement has been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 (Ind AS) prescribed under Section 133 of the Companies Act, 2013 and other recognised accounting practices and policies to the extent applicable.
3	The spread of COVID-19 impacted businesses around the globe from March 2020 onwards. The situation is constantly evolving and Governments in certain states/countries imposed various restrictions during the previous year and also during certain parts of the current year. The restrictions are being relaxed globally with growing rate of vaccination. As at March 31, 2022, the Company, its subsidiaries and jointly controlled entities have made detailed assessment of their liquidity position for the next one year and of the recoverability and carrying values of their assets comprising Property, plant and equipment, Intangible assets, Trade receivables, Inventory and Investments and has concluded that there are no material adjustments required in the consolidated financial results.
4	The Group has organised the businesses into two categories viz., Air Compressors and Automotive Equipments. This reporting complies with the Ind AS segment reporting principles. Refer Annexure I attached herewith.
5	The Board of Directors have recommended a dividend of₹ 1.15/- per share (115%) for the year ended March 31, 2022.
6	Subsidiaries 2. ATS Elgi Limited 3. Elgi Gulf FZE 4. Elgi Compressors Do Brasil Imp.E.Exp LTDA 5. Elgi Equipments Australia Pty Limited 7. Rotair SPA 8. Elgi Compressors USA Inc. 9. Patton's Inc. 10. Patton's Medical LLC. 11. PT Elgi Equipments Indonesia 12. Ergo Design Private Limited 13. Industrial Air Compressors Pty Ltd 14. F.R. Pulford & Son Pty Limited 15. Advanced Air Compressors Pty Ltd 18. Michigan Air Solutions LLC. 19. Elgi Compressors Iberia S.L. 20. Elgi Equipments Limited Employees Stock Option Trust 21. Elgi Compressors Eastern Europe sp. z.o.o. 22. Elgi Compressors Nordics 23. Elgi Compressors France SAS 24. Elgi Compressors UK and Ireland Limited 25. Elgi Compressors (M) SDN. BHD. 17. Elgi Gulf Mechanical and Engineering Equipment Trading LLC The above statement includes the results of the following entities: 1. Adisons Precision Instruments Manufacturing Company Limited 6. Elgi Compressors Italy S.R.L 16. Elgi Compressors Europe S.R.L
	26. Elgi Compressors Southern Europe S.R.L 27. Elgi Equipments (Zhejiang) Limited (Till July 05, 2021) Joint ventures 1. Elgi Sauer Compressors Limited 2. Industrial Air Solutions LLP 3. Evergreen Compressed Air and Vacuum LLC (jointly controlled entity of Elgi Compressors USA Inc.) 4. Compressed Air Solutions of Texas LLC (jointly controlled entity of Elgi Compressors USA Inc.) 5. PLA Holding Company LLC (jointly controlled entity of Elgi Compressors USA Inc.) 6. Patton’s Of California LLC (jointly controlled entity of Elgi Compressors USA Inc.) 7. G3 Industrial Solutions LLC (jointly controlled entity of Elgi Compressors USA Inc.) 8. Gentex Air Solutions LLC (jointly controlled entity of Elgi Compressors USA Inc.) Joint operations 1. L.G. Balakrishnan & Bros.
	2. ElgiServices
7	The Cost of material consumed and purchase of stock-in-trade has been reclassified for the comparative periods due to an inadvertent classification earlier. The details are set out below
	Particulars	Quarter ended	Year ended
		March 31, 2021	March 31, 2021
	(a) Cost of materials consumed As reported earlier Add: Reclassified from Purchase of stock-in-trade Reclassified and reported in the above results	2,454.30 174.54
			7,055.28 324.91
		2,628.84	7,380.19
	(b) Purchases of stock-in-trade As reported earlier Less: Reclassified to Cost of materials consumed Reclassified and reported in the above results	871.50 (174.54)
			2,914.02 (324.91)
		696.96	2,589.11

1. Elgi Compressors Southern Europe S.R.L

2. Elgi Equipments (Zhejiang) Limited (Till July 05, 2021) Joint ventures

3. Elgi Sauer Compressors Limited

4. Industrial Air Solutions LLP

5. Evergreen Compressed Air and Vacuum LLC (jointly controlled entity of Elgi Compressors USA Inc.)

6. Compressed Air Solutions of Texas LLC (jointly controlled entity of Elgi Compressors USA Inc.)

7. PLA Holding Company LLC (jointly controlled entity of Elgi Compressors USA Inc.)

8. Patton’s Of California LLC (jointly controlled entity of Elgi Compressors USA Inc.)

9. G3 Industrial Solutions LLC (jointly controlled entity of Elgi Compressors USA Inc.) 8. Gentex Air Solutions LLC (jointly controlled entity of Elgi Compressors USA Inc.) Joint operations

10. L.G. Balakrishnan & Bros.

	Joint operations 1. L.G. Balakrishnan & Bros.
	2. ElgiServices
7	The Cost of material consumed and purchase of stock-in-trade has been reclassified for the comparative periods due to an inadvertent classification earlier.
	The details are set out below
		Quarter ended	Year ended
	Particulars
		March 31, 2021	March 31, 2021
	(a) Cost of materials consumed
	As reported earlier	2,454.30	7,055.28
	Add: Reclassified from Purchase of stock-in-trade	174.54	324.91
	Reclassified and reported in the above results	2,628.84	7,380.19
	(b) Purchases of stock-in-trade
	As reported earlier	871.50	2,914.02
	Less: Reclassified to Cost of materials consumed	(174.54)	(324.91)
	Reclassified and reported in the above results	696.96	2,589.11
	The above reclassification does not have any impact on the reported profits or segment results for the comparative periods.

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8 The figures for the current quarter and the quarter ended March 31, 2021 are the balancing figures between audited figures of the full financial year ended March 31, 2022 and March 31, 2021 ,respectively and published year to date figure upto third quarter ended December 31, 2021 and December 31, 2020 respectively. 9 Figures for the comparative periods have been regrouped wherever necessary in conformity with present classification.

For and on behalf of the Board of Directors

Place: Coimbatore Date: May 13, 2022

JAIRAM Digitally signed by JAIRAM VARADAR VARADARAJ Date: 2022.05.13 AJ 17:03:50 +05'30' Jairam Varadaraj Managing Director

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INDEPENDENT AUDITORS’ REPORT

To the Board of Directors of Elgi Equipments Limited

Report on the Audit of Standalone Financial Results

Opinion

1. We have audited the standalone statement of financial results of Elgi Equipments Limited (hereinafter referred to as the ‘Company”) [in which are included results of two jointly controlled entities (representing ‘joint operations’)] for the year ended March 31, 2022, the standalone statement of assets and liabilities and the standalone statement of cash flows as at and for the year ended on that date (together referred to as the ‘standalone financial results’), attached herewith, being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, (‘Listing Regulations’).

2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial results:

3. (i) are presented in accordance with the requirements of Regulation 33 of the Listing Regulations in this regard; and

4. (ii) give a true and fair view in conformity with the recognition and measurement principles laid down in the applicable accounting standards prescribed under Section 133 of the Companies Act, 2013 (the “Act”) and other accounting principles generally accepted in India, of net profit and other comprehensive income and other financial information of the Company for the year ended March 31, 2022 and the standalone statement of assets and liabilities and the standalone statement of cash flows as at and for the year ended on that date.

Basis for Opinion

1. We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Our responsibilities under those Standards are further described in the ‘Auditors’ Responsibilities for the Audit of the Standalone Financial Results’ section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors in terms of their reports referred to in sub-paragraph 10 of the Other Matter paragraph below is sufficient and appropriate to provide a basis for our opinion is sufficient and appropriate to provide a basis for our opinion.

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Price Waterhouse Chartered Accountants LLP, 8[th] Floor, Prestige Palladium Bayan, 129-140, Greams Road, Chennai – 6000 006, India

T: +91 (44) 4228 5000, F: +91 (44) 4228 5100

Registered office and Head Office: Sucheta Bhawan, 11A Vishnu Digambar Marg, New Delhi – 110002

Price Waterhouse (a Partnership Firm) Converted into Price Waterhouse Chartered Accountants LLP (a Limited Liability Partnership with LLP identity no: LLPINAAC-5001) with effect from July 25, 2014. Post its conversion to Price Waterhouse Chartered Accountants LLP, its ICAI registration number is 012754N/N500016 (ICAI registration number before conversion was 012754N)

INDEPENDENT AUDITORS’ REPORT To the Board of Directors of Elgi Equipments Limited Report on the Standalone Financial Results Page 2 of 4

Board of Directors’ Responsibilities for the Standalone Financial Results

1. These Standalone financial results have been prepared on the basis of the standalone annual financial statements. The Company’s Board of Directors are responsible for the preparation and presentation of these standalone financial results that give a true and fair view of the net profit and other comprehensive income and other financial information of the Company and the standalone statement of assets and liabilities and the standalone statement of cash flows in accordance with the recognition and measurement principles laid down in the Indian Accounting Standards prescribed under Section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. The Board of Directors of the Company are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the standalone financial results by the Directors of the Company, as aforesaid.

2. In preparing the standalone financial results, the Board of Directors of the Company are responsible for assessing the ability of the Company to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

3. The Board of Directors of the Company are responsible for overseeing the financial reporting process of the Company.

Auditors’ Responsibilities for the Audit of the Standalone Financial Results

1. Our objectives are to obtain reasonable assurance about whether the standalone financial results as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial results.

2. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

3. Identify and assess the risks of material misstatement of the standalone financial results, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

4. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3) (i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls. (Refer paragraph 12 below)

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INDEPENDENT AUDITORS’ REPORT To the Board of Directors of Elgi Equipments Limited Report on the Standalone Financial Results Page 3 of 4

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.

• Conclude on the appropriateness of the Board of Directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Company to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the standalone financial results or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the standalone financial results, including the disclosures, and whether the standalone financial results represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial information of the Company and its joint operations to express an opinion on the Standalone financial results. We are responsible for the direction, supervision and performance of the audit of the financial statements of the Company of which we are the independent auditors. For the joint operations included in the standalone financial results, which have been audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.

• We communicate with those charged with governance of the Company regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Other Matters

1. We did not audit the financial statements of two joint operations included in the standalone financial results which constitute Company’s share of total assets of Rs. 130.87 million and net assets of Rs. 124.40 million as at March 31, 2022, total revenue of Rs. nil and Rs. nil, total net profit/(loss) after tax of Rs. 55.37 million, total comprehensive income/(loss) of Rs. 55.37 million for the year ended March 31, 2022, and net cash inflows of Rs. 0.81 million for the year then ended. These financial statements and other information have been audited by other auditors whose reports have been furnished to us, and our opinion on the standalone financial results to the extent they have been derived from such financial statement is based solely on the reports of such other auditors.

Our opinion is not modified in respect of the above matter.

1. The standalone financial results include the results for the quarter ended March 31, 2022 being the balancing figures between the audited figures in respect of the full financial year and the published unaudited year to date figures up to the third quarter of the current financial year (limited review carried out by us till December 31, 2021), which are neither subject to limited review nor audited by us.

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INDEPENDENT AUDITORS’ REPORT To the Board of Directors of Elgi Equipments Limited Report on the Standalone Financial Results Page 4 of 4

1. The standalone annual financial results dealt with by this report has been prepared for the express purpose of filing with stock exchanges on which the Company’s shares are listed. These results are based on and should be read with the audited standalone financial statements of the Company for the year ended March 31, 2022 on which we issued an unmodified audit opinion vide our report dated May 13, 2022.

For Price Waterhouse Chartered Accountants LLP Firm Registration Number: 012754N / N500016 Chartered Accountants

BASKAR Digitally signed by BASKAR PANNERSEL PANNERSELVAM Date: 2022.05.13 VAM 17:26:35 +05'30'

Baskar Pannerselvam

Partner Place: Coimbatore Membership Number: 213126 Date: May 13, 2022 UDIN: 22213126AIYGST1085

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INDEPENDENT AUDITORS’ REPORT

To the Board of Directors of Elgi Equipments Limited

Report on the Audit of Consolidated Financial Results

Opinion

1. We have audited the statement of consolidated financial results of Elgi Equipments Limited (hereinafter referred to as the ‘Holding Company”) and its subsidiaries (Holding Company and its subsidiaries together referred to as “the Group”), its joint operations and joint ventures (Refer note 6 to the consolidated financial results) for the year ended March 31, 2022 and the consolidated statement of assets and liabilities and the consolidated statement of cash flows as at and for the year ended on that date (together referred to in as ‘consolidated financial results’), attached herewith, being submitted by the Holding Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (‘Listing Regulations’).

2. In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of reports of other auditors on separate audited financial statements / financial information of the subsidiaries, joint operations and joint ventures, the aforesaid consolidated financial results:

3. (i) include the annual financial results of the following entities (also refer note 6 to the consolidated financial results):

Subsidiaries:

• i. Elgi Compressor USA Inc., its subsidiaries and its jointly controlled entities ii. PT Elgi Equipments Indonesia

• iii. ATS Elgi Limited

• iv. Adison Precision Instruments Manufacturing Company Limited

• v. Ergo Design Private Limited

• vi. Elgi Equipments (Zhejiang) Limited (till July 05, 2021)

• vii. Elgi Gulf FZE. and its subsidiary

• viii. Elgi Compressors Do Brazil Imp. E. Exp. Ltda

• ix. Elgi Equipments Australia Pty Ltd.

• x. Industrial Air Compressors Pty Ltd. and its subsidiaries

• xi. Elgi Compressors Italy S.R.L (formerly known as “Elgi Compressors Europe S.R.L”) and its subsidiary

• xii. Elgi Compressors Europe S.R.L (formerly known as “Elgi Compressors Belgium S.P.R.L”) and its subsidiaries

• xiii. Elgi Equipments Limited Employee Stock Option Trust

• xiv. Elgi Compressors (M) SDN. BHD.

Jointly controlled entities:

• i. Elgi Sauer Compressors Limited (Joint Venture)

• ii. Industrial Air Solutions LLP (Joint Venture)

• iii. L.G. Balakrishnan & Bros (Joint Operations)

• iv. Elgi Services (Joint Operations)

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Price Waterhouse Chartered Accountants LLP, 8[th] Floor, Prestige Palladium Bayan, 129-140, Greams Road, Chennai – 6000 006, India

T: +91 (44) 4228 5000, F: +91 (44) 4228 5100

Registered office and Head Office: Sucheta Bhawan, 11A Vishnu Digambar Marg, New Delhi – 110002

Price Waterhouse (a Partnership Firm) Converted into Price Waterhouse Chartered Accountants LLP (a Limited Liability Partnership with LLP identity no: LLPINAAC-5001) with effect from July 25, 2014. Post its conversion to Price Waterhouse Chartered Accountants LLP, its ICAI registration number is 012754N/N500016 (ICAI registration number before conversion was 012754N)

INDEPENDENT AUDITORS’ REPORT To the Board of Directors of Elgi Equipments Limited Report on the Consolidated Financial Results Page 2 of 5

• (ii) are presented in accordance with the requirements of Regulation 33 of the Listing Regulations in this regard; and

• (iii) give a true and fair view in conformity with the recognition and measurement principles laid down in the applicable accounting standards prescribed under Section 133 of the Companies Act, 2013 (the “Act”) and other accounting principles generally accepted in India, of net profit and other comprehensive income and other financial information of the Group, its joint operations and joint ventures for the year ended March 31, 2022 and the consolidated statement of assets and liabilities and the consolidated statement of cash flows as at and for the year ended on that date.

Basis for Opinion

1. We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Our responsibilities under those Standards are further described in the ‘Auditors’ Responsibilities for the Audit of the Consolidated Financial Results’ section of our report. We are independent of the Group, its joint operations and joint ventures in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us and other auditors in terms of their reports referred to in “Other Matter” paragraph below, is sufficient and appropriate to provide a basis for our opinion.

Board of Directors’ Responsibilities for the Consolidated Financial Results

1. These consolidated financial results have been prepared on the basis of the consolidated annual financial statements. The Holding Company’s Board of Directors are responsible for the preparation and presentation of these consolidated financial results that give a true and fair view of the net profit and other comprehensive income and other financial information of the Group including its joint operations and joint ventures and the consolidated statement of assets and liabilities and the consolidated statement of cash flows in accordance with the recognition and measurement principles laid down in the Indian Accounting Standards prescribed under Section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. The respective Board of Directors of the companies included in the Group and of its joint ventures are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Group and its joint ventures and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring accuracy and completeness of the accounting records, relevant to the preparation and presentation of the consolidated financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the consolidated financial results by the Directors of the Holding Company, as aforesaid.

2. In preparing the consolidated financial results, the respective Board of Directors of the companies included in the Group and of its joint ventures are responsible for assessing the ability of the Group and its joint ventures to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the respective Board of Directors either intends to liquidate the Group and its joint ventures or to cease operations, or has no realistic alternative but to do so.

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INDEPENDENT AUDITORS’ REPORT To the Board of Directors of Elgi Equipments Limited Report on the Consolidated Financial Results Page 3 of 5

1. The respective Board of Directors of the companies included in the Group and of its joint ventures are responsible for overseeing the financial reporting process of the Group and of its joint ventures.

Auditors’ Responsibilities for the Audit of the Consolidated Financial Results

1. Our objectives are to obtain reasonable assurance about whether the consolidated financial results as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial results.

2. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

3. Identify and assess the risks of material misstatement of the consolidated financial results, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

4. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls. (Refer paragraph 18 below)

5. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.

6. Conclude on the appropriateness of the Board of Directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Group and its joint operations and joint ventures to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial results or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group and its joint operations and joint ventures to cease to continue as a going concern.

7. Evaluate the overall presentation, structure and content of the consolidated financial results, including the disclosures, and whether the consolidated financial results represent the underlying transactions and events in a manner that achieves fair presentation.

8. Obtain sufficient appropriate audit evidence regarding the financial results/financial information of the entities within the Group and its joint operations and joint ventures to express an opinion on the consolidated Financial Results. We are responsible for the direction, supervision and performance of the audit of financial information of such entities included in the consolidated financial results of which we are the independent auditors. For the other entities included in the consolidated financial results, which have been audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.

INDEPENDENT AUDITORS’ REPORT To the Board of Directors of Elgi Equipments Limited Report on the Consolidated Financial Results Page 4 of 5

1. We communicate with those charged with governance of the Holding Company and such other entities included in the consolidated financial results of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

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

Other Matters

1. We did not audit the financial information of two joint operations included in the standalone financial results of the Holding Company whose financial information reflect the company’s share of total assets of Rs. 130.87 million and net assets of Rs. 124.40 million as at March 31, 2022, total revenues of Rs. nil, total net profit after tax of Rs. 55.37 million, total comprehensive income of Rs. 55.37 million and net cash inflows of Rs. 0.81 million for the year ended March 31, 2022, as considered in the Standalone financial results of the Holding Company included in the Group. The financial information of these joint operations have been audited by other auditors whose reports have been furnished to us by other auditors, and our opinion in so far as it relates to the amounts and disclosures included in respect of these joint operations, is based solely on the reports of such other auditors, and the procedures performed by us as stated in paragraph 10 above.

2. We did not audit the consolidated/standalone financial statements/financial information of 13 subsidiaries (including their relevant step-down subsidiaries and joint ventures), included in the consolidated financial results, whose financial statements / financial information reflect total assets of Rs. 11,591.89 million and net assets of Rs. 1,851.59 million as at March 31, 2022, total revenues of Rs. 12,221.70 million, total net loss after tax of Rs. 15.01 million, and total comprehensive income of Rs. 83.86 million for the year ended March 31, 2022 and cash flows (net) of Rs. 66.61 million for the year ended March 31, 2022, as considered in the consolidated financial results. The consolidated financial results also include the Group’s share of net profit after tax of Rs. 37.61 million and total comprehensive income of Rs.38.02 million for the year ended March 31, 2022, as considered in the consolidated financial results, in respect of 2 joint ventures, whose financial statements / financial information have not been audited by us. These financial statements / financial information have been audited by other auditors whose reports have been furnished to us by the Management and our opinion on the consolidated financial results, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries, and joint ventures, is based solely on the reports of the other auditors and the procedures performed by us as stated in paragraph 10 above.

3. Of the above, the financial statements of 2 subsidiary, located outside India, included in the consolidated financial results, which constitute total assets of Rs. 1,007.49 million and net assets of Rs. 910.71 million as at March 31, 2022, total revenue of Rs. 94.95 million, net profit after tax of Rs. 33.96 million, total comprehensive income of Rs. 36.31 million and net cash inflow of Rs. 5.74 million for the year ended March 31, 2022 have been prepared in accordance with accounting principles generally accepted in their country and have been audited by other auditors under generally accepted auditing standards applicable in their country. The Company’s management has converted the financial statements of the subsidiary located outside India from the accounting principles generally accepted in their country to the accounting principles generally accepted in India. We have audited these conversion adjustments made by the Company’s management. Our opinion in so far as it relates to the balances and affairs of the subsidiary located outside India, including other information, is based on the report of other auditors and the conversion adjustments prepared by the management of the Company and audited by us.

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INDEPENDENT AUDITORS’ REPORT To the Board of Directors of Elgi Equipments Limited Report on the Consolidated Financial Results Page 5 of 5

1. The consolidated financial results includes the unaudited financial statements of one subsidiary (liquidated on July 5, 2021), whose financial statements reflect total assets of Rs. nil and net assets of Rs. nil as at March 31, 2022, total revenue of Rs. nil, total net loss after tax of Rs. nil, and total comprehensive loss of Rs. nil for the year ended March 31, 2022, and cash flows (net) of Rs. (0.09) million for the year from April 1, 2021 to March 31, 2022, as considered in the consolidated financial results. These financial statements are unaudited and have been furnished to us by the Management and our opinion on the consolidated financial results, in so far as it relates to the amounts and disclosures included in respect of this subsidiary, is based solely on such unaudited financial statements. In our opinion and according to the information and explanations given to us by the Management, these unaudited financial statements are not material to the Group.

2. Our opinion on the consolidated financial results is not modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditors and the Financial Results/financial information certified by the Board of Directors.

3. The consolidated financial results include the results for the quarter ended March 31, 2022 being the balancing figures between the audited figures in respect of the full financial year and the published unaudited year to date figures up to the third quarter of the current financial year, which are neither subject to limited review nor audited by us.

4. The consolidated annual financial results dealt with by this report have been prepared for the express purpose of filing with stock exchange on which the Company’s shares are listed. These results are based on and should be read with the audited consolidated financial statements of the group, its joint operations and joint ventures, for the year ended March 31, 2022 on which we have issued an unmodified audit opinion vide our report dated May 13, 2022.

For Price Waterhouse Chartered Accountants LLP Firm Registration Number: FRN 012754N / N500016 Chartered Accountants

BASKAR Digitally signed by BASKAR PANNERSE PANNERSELVAM Date: 2022.05.13 LVAM 17:27:08 +05'30'

Baskar Pannerselvam

Partner Place: Coimbatore Membership Number: 213126 Date: May 13, 2022 UDIN: 22213126AIYHAB5408

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Standalone Statement of Assets and Liabilities as at March 31, 2022

(Rs. in Millions)

Standalone Statement of Assets and Liabilities as at March 31, 2022	(Rs. in Millions)	(Rs. in Millions)
Particulars	As at
	March 31, 2022	March 31, 2021
	(Audited)	(Audited)
ASSETS Non-current assets Property, plant and equipment Right of use assets Capital work-in-progress Investment properties Goodwill Other intangible assets Financial assets (i) Investments (ii) Loans (iii) Other financial assets Deffered tax assets (Net) Other non-current assets	1,875.82 20.66 65.23 54.64 1.23 40.47 1,813.81 602.55 32.00 66.77 75.44	1,972.37 27.78 40.18 55.04 1.23 53.06 1,777.28 565.81 34.83 29.16 54.32
Total non-current assets	4,648.62	4,611.06
Current Assets Inventories Financial assets (i) Trade receivables (ii) Cash and cash equivalents (iii) Bank balances other than (ii) above (iv) Deposits with financial institutions (v) Loans (vi) Other financial assets Other current assets	1,715.80 4,244.51 556.31 627.41 400.00 23.30 130.21 268.87	1,385.84 3,301.57 742.78 859.06 305.00 59.81 103.95 327.20
Total current assets	7,966.41	7,085.21
Total assets	12,615.03	11,696.27
EQUITY AND LIABILITIES EQUITY Equity share capital Other equity	316.91 9,524.31	316.91 7,840.29
Total equity	9,841.22	8,157.20
LIABILITIES Non-current liabilities Financial liabilities (i) Lease liabilities Provisions	16.67 69.59	23.81 52.64
Total non-current liabilities	86.26	76.45
Current liabilities Financial liabilities (i) Borrowings (ii) Lease liabilities (iii) Trade payables (a) Total outstanding dues of micro and small enterprises (b) Total outstanding dues of creditors other than micro and small enterprises (iv) Other financial liabilities Provisions Current tax liabilities (Net) Other current liabilities	- 6.66 395.27 1,522.71 282.57 141.98 158.91 179.45	1,013.84 6.32 432.80 1,371.73 252.39 114.41 139.09 132.04
Total current liabilities	2,687.55	3,462.62
Total liabilities	2,773.81	3,539.07
Total equity and liabilities	12,615.03	11,696.27
Place: Coimbatore Date: May 13, 2022	For and on behalf of the Board of Directors Jairam Varadaraj Managing Director JAIRAM VARADAR AJ Digitally signed by JAIRAM VARADARAJ Date: 2022.05.13 17:04:29 +05'30'

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Consolidated Statement of Assets and Liabilities as at March 31, 2022

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	Consolidated Statement of Assets and Liabilities as at March 31, 2022	(Rs. in Millions)
	Particulars	As at
		March 31, 2022	March 31, 2021
		(Audited)	(Audited)
	ASSETS Non-current assets Property, plant and equipment Right of use assets Capital work-in-progress Investment properties Goodwill Other intangible assets Intangible assets under development Investments accounted for using the equity method Financial assets (i) Investments (ii) Loans (iii) Other financial assets Deferred tax assets (Net) Non-current tax assets (Net) Other non-current assets	2,454.19 600.05 68.16 167.96 1,914.66 395.52 6.50 200.96 107.99 77.34 57.70 174.70 8.16 80.18	2,577.27 624.62 41.23 168.01 1,879.12 470.98 - 152.65 85.02 54.29 61.31 145.62 19.71 54.32
	Total non-current assets	6,314.07	6,334.15
	Current Assets Inventories Financial assets (i) Trade receivables (ii) Cash and cash equivalents (iii) Bank balances other than (ii) above (iv) Deposits with financial institutions (v) Loans (vi) Other financial assets Assets held for sale Other current assets	4,830.56 4,718.82 1,170.74 1,027.72 585.00 28.82 67.58 231.71 674.14	3,426.93 3,997.32 1,278.19 1,342.70 430.00 60.13 95.93 223.54 478.21
	Total current assets	13,335.09	11,332.95
	Total assets	19,649.16	17,667.10
	EQUITY AND LIABILITIES EQUITY Equity share capital Other equity	316.91 10,008.22	316.91 8,381.95
	Total equity	10,325.13	8,698.86
	LIABILITIES Non-current liabilities Financial liabilities (i) Long term borrowings (ii) Lease liabilities (iii) Other financial liabilities Provisions Deferred tax liabilities(Net)	577.99 478.60 5.76 141.89 59.46	811.60 504.20 26.46 120.15 20.78
	Total non-current liabilities	1,263.70	1,483.19
	Current liabilities Financial liabilities (i) Borrowings (ii) Lease liabilities (iii) Trade payables (a) Total outstanding dues of micro and small enterprises (b) Total outstanding dues of creditors other than micro and small enterprises (iv) Other financial liabilities Provisions Current Tax Liabilities (Net) Other current liabilities	3,125.78 164.64 447.40 2,739.21 772.12 159.05 259.07 393.06	3,164.69 159.41 482.70 2,406.54 639.17 132.41 198.70 301.43
	Total current liabilities	8,060.33	7,485.05
	Total liabilities	9,324.03	8,968.24
	Total equity and liabilities	19,649.16	17,667.10
	Place: Coimbatore Date: May 13, 2022	For and on behalf of the Board of Directors Jairam Varadaraj Managing Director JAIRAM VARADAR AJ Digitally signed by JAIRAM VARADARAJ Date: 2022.05.13 17:04:47 +05'30'

Standalone Statement of Cash Flows

(Rs. in Millions)

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Standalone Statement of Cash Flows	(Rs. in Millions)	(Rs. in Millions)
Particulars	Year ended
	March 31, 2022	March 31, 2021
	(Audited)	(Audited)
Cash flow from operating activities Profit before tax Adjustments for : Depreciation and amortisation expense Bad debts and allowance for doubtful debts Gain on disposal of property, plant and equipment Rental income from Investment property (net of expenses) Dividend and interest income classified as investing cash flows Net unrealised exchange differences Finance costs Financial guarantee commission Non-cash employee share based payments Write back of provisions made for loan to subsidiary Change in operating assets and liabilities Increase in trade receivables Increase in inventories Increase in trade payables (Increase)/decrease in other financial assets Decrease in other current assets Increase/(decrease) in provisions Increase in other financial liabilities Increase in other current liabilities Cash generated from operations Income taxes paid (net of refund)	2,513.43 367.68 12.63 (38.49) (18.31) (173.62) (51.93) 16.43 - 6.16 - (906.67) (329.96) 109.31 (11.03) 58.33 67.74 25.99 47.41	1,401.92 353.29 23.27 (0.18) (10.81) (102.67) (21.65) 36.80 (4.45) 1.60 (18.21) (807.55) (83.83) 520.15 10.59 15.31 (2.83) 30.91 8.52
	1,695.10 (647.37)	1,350.18 (191.42)
Net cash inflow from operating activities	1,047.73	1,158.76
Cash flows from investing activities Payments for property, plant and equipment and intangible assets Investments in subsidiaries Proceeds from buy-back of FVOCI equity instruments Subscription to rights issue of FVOCI equity instruments Investment/(redemption) in/of deposits with Banks/Financial institutions Rental income from Investment property (net of expenses) Repayment of loans from subsidiaries Loans recovered from employees (net) Proceeds from sale of property, plant and equipment Dividends received Interest received	(294.25) (17.89) - - 136.65 18.31 9.65 8.34 40.38 74.41 83.69	(161.48) (4.51) 2.35 (0.81) (579.81) 10.81 112.79 23.58 0.86 10.48 60.56
Net cash inflow/(outflow) from investing activities	59.29	(525.18)
Cash flows from financing activities Net Short term Loans (repaid to)/borrowed from banks Payment of lease liabilities Purchase of shares for ESOP scheme Proceeds from sale of treasury stock Dividends paid to company’s shareholders Interest paid	(1,013.84) (6.26) (68.70) 66.20 (253.52) (17.37)	38.84 (6.81) (44.04) - (1.93) (38.36)
Net cash outflow from financing activities	(1,293.49)	(52.30)
Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financialyear	(186.47) 742.78	581.28 161.50
Cash and cash equivalents at end of theyear*	556.31	742.78

• includes restricted cash and cash equivalents in relation to balance in unclaimed dividend account.

For and on behalf of the Board of Directors JAIRAM Digitally signed by JAIRAM VARADAR VARADARAJ Date: 2022.05.13 AJ 17:05:07 +05'30' Place: Coimbatore Jairam Varadaraj Date: May 13, 2022 Managing Director

Consolidated Statement of Cash Flows

(Rs. in Millions)

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Particulars	Year ended	Year ended
	March 31, 2022	March 31, 2021
	(Audited)	(Audited)
Cash flow from operating activities Profit before tax Adjustments for Depreciation and amortisation expense Bad debts and allowance for doubtful debts Gain on disposal of property, plant and equipment Share of profits of associates and joint ventures Rental income from Investment property (net of expenses) Net unrealised exchange differences Loss recognised on loss of control over subsidiary Non-cash employee share based payments Dividend and interest income classified as investing cash flows Finance costs Change in operating assets and liabilities, net of effects from purchase of subsidiary/business Increase in trade receivables (Increase)/decrease in inventories Increase in trade payables Decrease in other financial assets (Increase)/decrease in other current assets Increase in provisions Increase in other financial liabilities Increase in other current liabilities Cash generated from operations Income taxes paid (net of refund)	2,630.31 744.93 21.39 (155.52) (13.18) (12.75) (41.30) 19.18 9.64 (104.28) 111.11 (742.89) (1,403.63) 297.37 12.60 (195.93) 71.24 129.90 91.63	1,527.50 743.38 34.46 (3.95) (14.16) (4.85) (61.49) - 2.81 (93.77) 134.83 (564.16) 7.37 801.32 7.30 30.30 5.79 120.99 13.82
	1,469.82 (784.20)	2,687.49 (287.08)
Net cash inflow from operating activities	685.62	2,400.41
Cash flows from investing activities Payments for property, plant and equipment and intangible assets Payments for settlement of contingent consideration in relation to acquisition of business Investment in Joint Ventures Loans recovered from employees (net) Proceeds from buy-back of FVOCI equity instruments Subscription to rights issue of FVOCI equity instruments Proceeds from sale of property, plant and equipment Rental income from Investment property (net of expenses) Dividends received on equity instruments Dividends received from associate and joint venture Redemption of/(Investments) in Deposits with Banks/Financial institutions Interest received	(405.36) - (55.36) 8.26 - - 162.19 12.75 0.50 20.50 159.98 115.57	(311.68) (73.49) (77.73) 29.98 2.35 (0.81) 23.61 4.85 0.25 14.22 (785.65) 78.97
Net cash inflow/(outflow) from investing activities	19.03	(1,095.13)
Cash flows from financing activities Interest paid Purchase of shares for ESOP scheme Proceeds from sale of treasury shares Proceeds from Long term borrowings from banks Repayment of Long term borrowings to banks Net Short term loans (repaid to)/borrowed from Banks Payment of lease liabilities Dividends paid to company’s shareholders	(107.20) (68.70) 66.20 - (268.57) (2.26) (178.39) (253.18)	(133.40) (44.04) - 125.82 (304.29) 12.85 (137.20) (1.93)
Net cash outflow from financing activities	(812.10)	(482.19)
Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financialyear	(107.45) 1,278.19	823.09 455.10
Cash and cash equivalents at end of theyear*	1,170.74	1,278.19
* includes restricted cash and cash equivalents in relation to balance in unclaimed dividend accou	nt.

For and on behalf of the Board of Directors

JAIRAM Digitally signed by JAIRAM VARADAR VARADARAJ Date: 2022.05.13 AJ 17:05:27 +05'30' Place: Coimbatore Jairam Varadaraj Date: May 13, 2022 Managing Director

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Annexure I - Segment Revenue, Results and Capital Employed	Annexure I - Segment Revenue, Results and Capital Employed	Annexure I - Segment Revenue, Results and Capital Employed	Annexure I - Segment Revenue, Results and Capital Employed	Annexure I - Segment Revenue, Results and Capital Employed	Annexure I - Segment Revenue, Results and Capital Employed	Annexure I - Segment Revenue, Results and Capital Employed
		(Rs. in Millions)
Sl No.	Particulars		Quarter ended		Year ended
		March 31, 2022	December 31, 2021	March 31, 2021	March 31, 2022	March 31, 2021
		Audited (Refer note 8)	(Unaudited)	Audited (Refer note 8)	(Audited)	(Audited)
1 2 3 4 **5 **	Segment Revenue a) Air Compressors b) Automotive equipments Less: Inter segment revenue Income from operations Segment Results (Profit before share of profit/(loss) of joint ventures and tax) a) Air Compressors b) Automotive equipments Add:Inter segment result Segment Assets a) Air Compressors b) Automotive equipments Less: Inter segment assets Segment Liabilities a) Air Compressors b) Automotive equipments Less: Inter segment liabilities Capital Employed [Segment Assets - Segment Liabilities] a) Air Compressors b) Automotive equipments Add: Inter segment capital employed	6,675.76 605.50	5,979.80 577.90	5,601.34 504.50	23,275.66 1,988.60	17,694.53 1,547.32
		7,281.26 5.12	6,557.70 1.55	6,105.84 (0.07)	25,264.26 17.20	19,241.85 1.35
		7,276.14	6,556.15	6,105.91	25,247.06	19,240.50
		907.01 81.04	573.30 66.11	562.27 59.21	2,438.84 178.25	1,379.09 133.77
		988.05 (0.05)	639.41 0.01	621.48 0.07	2,617.09 0.04	1,512.86 0.48
		988.00	639.42	621.55	2,617.13	1,513.34
		18,230.32 1,428.09	17,130.53 1,409.55	16,390.70 1,290.27	18,230.32 1,428.09	16,390.70 1,290.27
		19,658.41 9.25	18,540.08 10.39	17,680.97 13.87	19,658.41 9.25	17,680.97 13.87
		19,649.16	18,529.69	17,667.10	19,649.16	17,667.10
		8,923.38 411.29	8,516.33 460.99	8,615.90 367.56	8,923.38 411.29	8,615.90 367.56
		9,334.67 10.64	8,977.32 11.83	8,983.46 15.22	9,334.67 10.64	8,983.46 15.22
		9,324.03	8,965.49	8,968.24	9,324.03	8,968.24
		9,306.94 1,016.80	8,614.20 948.56	7,774.80 922.71	9,306.94 1,016.80	7,774.80 922.71
		10,323.74 1.39	9,562.76 1.44	8,697.51 1.35	10,323.74 1.39	8,697.51 1.35
		10,325.13	9,564.20	8,698.86	10,325.13	8,698.86
For and on behalf of the Board of Directors Place: Coimbatore Jairam Varadaraj Date: May 13, 2022 Managing Director JAIRAM VARADARA J Digitally signed by JAIRAM VARADARAJ Date: 2022.05.13 17:05:48 +05'30'

For and on behalf of the Board of Directors

Place: Coimbatore Date: May 13, 2022

JAIRAM Digitally signed by JAIRAM VARADARA VARADARAJ Date: 2022.05.13 J 17:05:48 +05'30' Jairam Varadaraj Managing Director

BASKAR Digitally signed by BASKAR PANNERSEL PANNERSELVAM Date: 2022.05.13 VAM 17:27:58 +05'30'

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Press Release – May 13, 2022

Elgi Equipments Limited – Fourth Quarter and FY 2021-22 results

Elgi Equipments Ltd, manufacturer of Air Compressors, announced today the results for the fourth quarter and for the financial year ended 31st March 2022. Consolidated PAT for the quarter was Rs. 73.1 Crore compared to Rs. 43.4 Crore in the same period in 2020-21. Consolidated PAT for the financial year was Rs. 178.4 Crore compared to Rs. 102.5 Crore in 2020-21.

Consolidated sales for the fourth quarter was Rs. 728 Crore as against Rs. 611 Crore in the corresponding quarter in 2020-21. Consolidated sales for the financial year 2021-22 was Rs. 2,525 Crores as against Rs.1,924 Crores in 2020-21.

The standalone PAT for the fourth quarter was Rs. 60.6 Crore compared to Rs. 48.9 Crore in the same period in 2020-21. The standalone PAT for the year was Rs. 189.4 Crore compared to Rs. 105.1 Crore in 2020-21.

The Board has recommended a dividend of Rs 1.15 per share (115%) for the year 2021-22, subject to approval of the shareholders.

The compressor business’ performance in the domestic exceeded plan owing to strong demand and go-to-market initiatives. Barring Middle East, Africa, and Australia and South East Asian Countries that were affected by COVID lockdowns, other geographies registered satisfactory sales and market share growth.

The automotive business overcame COVID restrictions, supply challenges, and volatility in the segment to register sales and profitability ahead of our plans.

Outlook for 2022-23

While we remain optimistic and are well prepared to achieve our FY’23 revenue targets, inflation, wars and political unrest could soften demand and affect margins. However, we are reviewing our processes and initiating actions to avoid margin erosion.

For Elgi Equipments Limited

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Jayakanthan R Chief Financial Officer

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