Esab India Ltd. — Interim / Quarterly Report 2021

Aug 6, 2020

ESAB/BSE/2020 6 August, 2020

BSE Limited P J Towers Dalal Street Mumbai 400 023

Scrip Code : 500133

Dear Sir,

Sub: Outcome of the Meeting of Board of Directors held on 6 August, 2020 Unaudited Financial Results for the quarter ended 30 June, 2020

In pursuance of Regulation 33 read with Regulation 30 of Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 we are sending herewith the textual matter of Unaudited Financial Results for the quarter ended 30 June, 2020 which is scheduled for publication in (i) Business Standard - In English (ii) Makkal Kural - In Tamil. Please note that the results have been reviewed by the Audit Committee and approved by our Board of Directors at their meetings held on 6 August, 2020. The meeting of the Board of Directors commenced at 11 :20 hours and concluded at lit ·OE? hours.

We also enclose a copy of the Limited Review Report of the Auditors of the Company, as required under Regulation 33 of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015

Kindly bring this to the attention of members and investors.

Thanking you,

Yours truly, For ESAB India Limited

-t~

S. Company Venkatakrishnan Secretary

Encl: As above

Telephone : 91 -(0)44 - 42281100 Fax : 91-(0)44 - 42281150 Website : www.esabindia.com GIN : L29299TN1987PLC058738

Registered Office : ESAB INDIA LIMITED Plot No.13, 3rd Main Road, Industrial Estate, Ambattur, Chennai - 600 058

S.R. BATLIBOI & ASSOCIATES LLP Chartered Accountants

Atti-Finance - "A" Block Tidell Print, No. 4. Bayy Grintfill Salar Temmunt, Cherima-500 113, Indu Tel: +31 (4.61 L/ 9000)

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

Review Report to The Board of Directors ESAB India Limited

• 1. We have reviewed the accompanying statement of unaudited financial results of ESAB India Limited (the "Company") for the quarter ended June 30, 2020 (the "Statement") attached herewith, being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulations").
• $2.$ This Statement, which is the responsibility of the Company's Management and approved by the Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, (Ind AS 34) "Interim Financial Reporting" prescribed under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
• 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. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
• 1. Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standards ('Ind AS') specified under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement.

S.R. Berlina & Assuration LLP, a Lamitiet Lability Hartowship with LLP libertity No. AAR 4295

S.R. BATLIBOI & ASSOCIATES LLP

Chartered Accountants

Emphasis of matter

We draw attention to Note 7 of the Statement which describes the impact of Covid-19 pandemic, and its possible consequential implications, on the Company's operations. Our conclusion is not modified in respect of this matter.

For S.R. BATLIBOI & ASSOCIATES LLP Chartered Accountants ICAI Firm registration number: 101049W/E300004

Broke

per S Balasubrahmanyam Partner Membership No.: 053315

UDIN: 20053315AAAACE4163 Place: Chennai Place: August 6, 2020

ESAB INDIA LIMITED
CIN No. l29299TN1987PLC058738

Regd Office: Plot No. 13, 3rd Main Road,

Industrial Estate, Ambattur, Chennai - 600 058

Telephone No. 044-42281100 email id : investor.relations@esab.co.in

Extract of St atement of Unaudited Financial Results for t he quarter ended June 30, 2020

Rs. in Lakhs (Except EPS)
		Quarter ended	Quarter ended	Quarter ended	Vear ended
SINo	Particulars	June 30, 2020	March 31, 2020	June 30, 2019	Ma rch 31, 2020
		Unaudited	Audited	Unaudited	Audited
	1 Tot al income from operations	12,730	17,878	18,472	71,147
	Net Profit for the period {before Tax, Exceptional and I2 or Extraordinary items)	956	2,560	2,561	9,724
3	Net Profit for the period before Tax (after Exceptionaland I or Extraordinary items)	956	2,560	2,561	9,724
4	Net Profit for the period after Tax (after Exceptional andI or Extraordinary items)	717		1,673	7,141
5	Total Comprehensive income for the period [ComprisingProfit for the period (after tax) and OtherComprehensive Income (after tax}]	710	1,813	1,664
6	Equity Share Capital	1,539		1,539	1,539
7	Earning Per Share (of Rs 10/each) (for continuing anddiscontinued ooerationsl
	- Basic	4.66	11.74	10.87	46.40
	- Diluted	4.66	11.74	10.87	46.40

Note ~

The above is an extract of the detailed Statement of Unaudited Financial Results for the quarter ended June 30, 2020 filed with the Stock Exchanges under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The same would be available on the Company's website www.esabindia.com and on the website of the Stock Exchanges - BSE limited and National Stock Exchange of India limited.

The Company has exercised the option permitted under Section llSBAA of the Income-tax Act, 1961 as introduced by the Taxation Laws {Amendment) Ordinance, 2019. Accordingly, the Deferred Tax Asset (net) as at 31st March 2019 and the estimate of tax expenses for the year ended 31st March 2020 have been re-measured.

Chennai August 6, 2020

Fo r ESAB India limited

Rohit Gambhir Managing Director

"We Shape the Future" Visit our website: http://www.esabindia.com

ESAB INDIA LIMITED ClN No. L29299TN1987PLC058738 Regd Office: Plot No. 13, 3rd Main Road,

Industrial Estate, Ambattur, Chennai - 600 058

Telephone No. 044-42281100 email id: investor.relations@esab.co.in

Statement of Unaudited Financial Results for the quarter ended June 30, 2020

Rs. in Lakhs {Except EPS)

	Quarter ended	Quarter ended	Quarter ended	Year ended
Particulars	June 30, 2020	March 31, 2020	June 30, 2019	March 31, 2020
	Unaudited	Audited	Unaudited	Audited
Revenue from contract with customers	12,431	17,498	18,126	69,796
Other income	299	380	346	1,351
Total income from operations	12,730	17,878		71,147
Expenses
Cost of raw materials and components	4,333	9,213	9,166	35,000
consumed
Cost of traded goods sold(lncrease)/decrease in inventories of work-in	3,426	2,251	2,457	8,984
progress and finished goods	508	(827)	(57)	(400)
Employee benefits expense	1,759	1,912	1,931	7,556
Finance cost	12	16	9	50
Depreciation and amortisation expense	313	298	326	1,258
Other expenses	1,423	2,455	2,079	8,975
Total expenses	11,774	15,318	15,911	61,423
Profit before exceptional items	956	2,560	2,561	9,724
Less: Exceptional items
Profit after exceptional items before tax	956	2,560	2,561	9,724
Tax expense
-Current tax	319	617	964	2,439
-Adjustment of tax relating to earlier yea rs		147		147
-Deferred tax expense/(credit)	(80)	(11)	(76)	(3)
	239	753	888	2,583
Profit for the period	717	1,807	1,673	7,141
Other comprehensive income/( expense) - net of	(7)	6	(9)	(25)
tax
Total comprehensive income	710	1,813	1,664
Paid up equity share capital (Face value of Rs.	1,539	1,539	1,539
10 each)
Reserves and surplus (i.e other equity)Networth				32,23633,775
Earnings per equity share (EPS)
Basic and diluted (in Rs.)	4.66	11.74	10.87	46.40
Weighted average number of shares (Nos.)	1,53,93,020	1,53,93,020	1,53,93,020	1,53,93,020
Par value of equity share (in Rs.)	10	10	10	10

ESAB INDIA LIMITED CIN No. l29299TN1987PLC058738 Regd Office: Plot No. 13, 3rd Main Road, Industrial Estate, Ambattur, Chennai - 600 058 Telephone No. 044-42281100 email id : investor.relations@esab.co.in Statement of Unaudited Financial Results for the quarter ended June 30, 2020

Notes:

1. The unaudited financial results for the quarter ended June 30, 2020 have been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, (Ind AS 34) "Interim Financial Reporting" prescribed under Section 133 of the Companies Act, 2013, read with Rule 3 of Companies (Indian Accounting Standards) Rules, 2015, as amended, read with the SEBI Circular No. CIR/CFD/CMDl/44/2019 dated March 29, 2019.

2. The figures of last quarter ended March 31, 2020 are the balancing figures between the audited figures in respect of the full financial year and published unaudited year-to-date figures up to the third quarter of the respective financial year which were subjected to limited review.

3. The above unaudited financial results for the quarter ended June 30, 2020 were reviewed by the Audit Committee and approved by the Board of Directors at their respective meeting held on August 6, 2020.

4. The Company has exercised the option permitted under Section 115BAA of the Income-tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019. Accordingly, the Deferred Tax Asset {net) as at 31st March 2019 and the estimate of tax expenses for the year ended 31st March 2020 have been re-measured.

5. Based on a detailed evaluation of key financial parameters reviewed, the Company believes that it operates in only one segment i.e. Fabrication Technology.

6. An interim dividend of Rs. 70 per equity share of Rs. 10/- each was declared by the Company at the meeting of Board of directors held on 28 May 2020 for the financial year 2019-20.

7. The Company's manufacturing plants and offices had to operate under mandatory lockdown conditions during the quarter ended 30th June 2020 on account of the Covid pandemic. These conditions have significantly affected the revenues and results of the Company in the current quarter. The Company has considered the possible effects that may result from COVID-19 in the preparation of these financial results. This includes assessing the recoverability of carrying amounts of property, plant and equipment, investments, inventories, receivables and other current assets. In developing the assumptions relating to the possible future uncertainties in this context, the Company has used relevant internal and external sources of information. The impact of COVID-19 on the Company's financial results may differ from that estimated as at the date of approval of these financial results. The impact assessment of COVID-19 is a continuing process in view of uncertainties associated with its nature and duration.

8. Previous period's figures have been regrouped or reclassified wherever necessary.

9. The results would be uploaded and available for viewing on the Company's website www.esabindia.com and on the website of the Stock Exchanges - BSE Limited and National Stock Exchange of India Limited.

Chennai August 6, 2020

For ESAB India Limited

Rohit Gambhir Managing Director

"We Shape the Future" Visit our website: http://www.esabindia.com