Finolex Industries Ltd. — Interim / Quarterly Report 2021

Jul 30, 2021

Tel Toll Free Fax Email Web +91 2114 237251 / 237253 1800 200 3466 +91 2114 237252 investors@finolexind.com finolexpipes.com

FIL/ SEC/ SEs/ 2021 -22 / 031

30th July, 2021

Listing Department The Manager -	The Manager - Listing Department
National Stock Exchange of India	BSE Limited
Limited	Registered Office: Floor 25
5, Exchange Plaza	P.J .Towers
Bandra-Ku rla Complex	Dalal Street
ndra (East), Ba	Mumbai 400 001
Mumbai 400051
Scrip Code : FINPIPE	Scrip Code: 500940 / FINOLEXIND

Sub: Outcome of the Board Meeting: Unaudited Financial Results for the quarter ended on 30th June , 2021

Ref: Regulation 30 & 33 of the SEBI (Listing Obligations and Dis c losure Requirements) Regulations, 2015

Dear Sir/ Madam,

In terms of the subject referred regulations, kindly be noted that the Board of Directors of the Company at its meeting held on 30th July, 2021 , has, inter-alia, approved and taken on record the Unaudited Fin ancial Results (both Standa lone & Consolida ted) for the quarter ended 30th June, 202 1 a longwith related segmentwise financial results, copy enclosed.

A copy of the 'Limited Review Report' of the Statutory Auditors, on the said Unaudited Financial Results, is also enclosed.

The aforesaid board meeting commenced at 5.45 p.m . and concluded a t 6.45 p .m.

You are requested to kindly take the above on your records.

Thanking you,

Yours truly,

For Finolex Industries Limited

~ . Ashutosh Kulkarni

Compa ny Secretary & Compliance Officer ACS No. : 18549

Encl. : As above

Corporate Office

Finolex Industries Limited D-1/10, M.l.D.C. C:hinr.hw::irl P11nP. 411 n1 q

Tel Fax l=m<>il +91 20 27408200 +91 20 27474444 f"!lral/Tifin"lovninoc- ~nm

Registered Office I Urse Plant

Finolex Industries Limited Gat No. 399, Village Urse, Tal.-Maval, Dist. Pune 410 506, Maharashtra, India GIN L40108PN1981PLC024153

Tel Toll Free Fax Email Web +91 2114 237251 I 237253 1800 200 3466 +91 2114 237252 investors@finolexind.com finolexpipes.com

FINOLEX INDUSTRIES LIMITED Registered Office: Gat No. 399, Village Urse, Taluka Mavai, Dist. Pune · 410 506. CIN: l40108PN1981PLC024153

Statement of unaudited Standalone and Consolidated Financial Results for the quarter ended June 30, 2021

		Rs In Crores except Earning per share
	Particulars	Standalone				Consolidated
			Quarter Ended		Year Ended		Quarter Ended		Year Ended
		30.06.2021	31.03.2021	30.06.2020	31.03 .2021	30.06.2021	31.03.2021	30.06.2020	31.03.2021
		Unaudited	Audited	Unaudited	Audited	Unaudited	Audited	Unaudited	Audited
	Income
	Revenue from Operations	965.72	1,249.34	561.89	3,462.82	965.72	1,249.34	561.89	3,462.82
	Other income	15.35	13.54	8.32	72.48	15.35	13.54	8.32	71.55
Ill	Total Income (1+11)	981.07	1,262.88	570.21	3,535.30	981.07	1,262.88	570.21	3,534.37
IV	Expenses
	Cost of materials and components consumed	571.76	794.73	132.45	1.940.24	571.76	794.73	132.45	1,940.24
	Purchase of stock-in-trade	2.64	3.32	1.81	10.00	2.64	3.32	1.81	10.00
	Changes in inventories of finished goods, stock-in-trade and work-in-progress	4.49	(156.33)	248.31	(21.48)	4.49	(156.33)	248.31	(21.48)
	Employee benefits expenses	45.45	59.33	34.61	166.80	45.45	59.33	34.61	166.80
	Finance costs	4.76	1.84	3.28	7.27	4.76	1.84	3.28	7.27
	Depredation and amortisation expense	20.06	19.70	18.83	77.72	20.06	19.70	18.83	77.72
		131.87	138.24	56.47	377.95	131.87	138.24	56.47	377.95
	Other expenses Total expenses (IV)	781.03	860.83	495.76	2,558.50	781.03	860.83	495.76	2,558.50
V	Profit before tax (Ill-IV)	200.04	402.05	74.45	976.80	200.04	402.05	74.45	975.87
VI	Share of prof:t/ (loss) of an associate					(1.60)	3.02	2.89	16.19
VII	Profit before tax (V+VI)	200.04	402.05	74.45	976.80	198.44	405.07	77.34	992.06
VIII	Tax Expense
	Current tax	54.50	103.00	19.09	247.00	54.50	103.89	20.19	252.42
	Short/ {excess) provision of earlier year(s)						(0.13)		(0.13)
	Deferred tax	(1.26)	1.72	0.25	1.78	(1.58)	2.47	0.43	1.98
	Total Tax Expense	53.24	104.72	19.34	248.78	52.92	106.23	20.62	254.27
IX	Profit for the period {VII-VIII)	146.80	297.33	55.11	728.02	145.52	298.84	56.72	737.79
	Other Comprehensive Income (OCI)
A	Items that will not be reclassified to profit or loss
	Re-measurement of defined benefit plans Gain/(Loss)	0.08	(3.30)	(0.85)	0.31	0.08	(3.30)	(0.85)	0.31
A(i)	Income tax effect Re-measurement of defined benefit plans net off income tax	(0.02) 0.06	0 .83 (2.47)	0.21 (0.64)	(0.08) 0.23	(0.02) 0.06	0.83 (2.47)	0.21 (0.64)	(0.08) 0.23
	Equity instruments through OCl Gain/(Loss)	311.93	86.64	206.87	415.65	311.93	86.64	206.87	415.65
	Income tax effect	0.10	(0.89)	0.06	(0.83)	0.10	(0.89)	0.06	(0.83)
A(ii)	Equity instruments through OCI net off income tax	312.03	85.75	206.93	414.82	312.03	85.75	206.93	414.82
	A( iii) Share of other comprehensive income (net of tax) of associate accounted						0.14		0.14
	for using the equity method
	Total Other Comprehensive Income [A(i)+A(ii)+A(iii)l	312.09	83.28	206.29	415.05	312.09	83.42	206.29	415.19
XI	Total Comprehensive Income for the period (IX+X)	458.89	380.61	261.40	1,143.07	457.61	382.26	263.01	1,152.98
XII	Earnings per equity share having nominal value per share of Rs.2
	Basic	2.37	4.79	0.89	11.73	2.35	4.82	0.91	11.89
	Diluted	2.37	4 .79	0.89	11.73	2.35	4.82	0.91	11.89

Corporate Office Finolex Industries Limited D-1I10, M.l.D.C. f'hin'"'hu1~rl 011no A 11 () 10

Tel Fax l=m::iil

+91 20 27408200 +91 20 27474444 r.::iri::ifnlfinnlP.xninP.s.r.om

Notes-

Segmentwise Revenue, Results and Capital employed

Sr No	Particulars	Standalone				Consolidated
		Quarter Ended			Year Ended	Quarter Ended			Year Ended
		30.06.2021	31.03.2021 Audited	30.06.2020 Unaudited	31.03.2021 Audited	30.06.2021	31.03.2021	30.06.2020	31.03.2021 Audited
		Unaudited				Unaudited	Audited	Unaudited
$\mathbf{1}$	SEGMENT REVENUE
	Revenue from each segment:
a	PVC	627.11	920.24	294.10	2,273.31	627.11	920.24	294.10	2,273.31
b	PVC Pipes & Fittings	845.39	901.70	506.98	2,635.30	845.39	901.70	506.98	2,635.30
	Total	1,472.50	1,821.94	801.08	4,908.61	1,472.50	1,821.94	801.08	4,908.61
	Less: Inter segment revenue	506.78	572.60	239.19	1,445.79	506.78	572.60	239.19	1,445.79
	Revenue from Operations	965.72	1,249.34	561.89	3,462.82	965.72	1,249.34	561.89	3,462.82
$\overline{z}$	SEGMENT RESULTS
	Profit before tax and interest from each segment:
a	PVC	157.85	328.46	23.21	696.40	157.85	328.46	23.21	696.40
$\mathbf b$	PVC Pipes & Fittings	43.64	69.49	51.44	251.19	43.64	69.49	51.44	251.19
	Total	201.49	397.95	74.65	947.59	201.49	397.95	74.65	947.59
	Less:
	Finance costs	4.76	1.84	3.28	7.27	4.76	1.84	3.28	7.27
$\mathbf{H}$	Other un-allocable expenditure	12.01	7.58	4.23	21.32	12.01	7.58	4.23	21.32
	Add:
$\mathsf{III}$	Other un-allocable income	15.32	13.52	7.31	57.80	15.32	13.52	7.31	56.87
IV	Share of profit of an associate					(1.60)	3.02	2.89	16.19
	Total Profit Before Tax	200.04	402.05	74.45	976.80	198.44	405.07	77.34	992.06
$\overline{\mathbf{3}}$	Capital employed : Segment Assets (-) Segment Liabilities
$\mathbf{a}$	PVC	1,016.52	975.96	725.77	975.96	1,016.52	975.96	725.77	975.96
b	PVC Pipes & Fittings	1,093.13	1,115.98	872.59	1,115.98	1,093.13	1,115.98	872.59	1,115.98
$\mathbf{C}$	Unallocated	2,595.66	2,114.92	1,567.49	2,114.92	2,681.04	2,201.94	1,645.67	2,201.94
	Total Segment Assets	4,705.31	4,206.86	3,165.85	4,206.86	4,790.69	4,293.88	3,244.03	4,293.88
$\overline{a}$	PVC	18.89	323.62	13.72	323.62	18.89	323.62	13.72	323.62
b	PVC Pipes & Fittings	54.56	90.68	66.21	90.68	54.56	90.68	66.21	90.68
$\mathbf{c}$	Unallocated	1,100.09	719.68	894.69	719.68	1,120.67	740.62	915.09	740.62
	Total Segment Liabilities	1,173.54	1,133.98	974.62	1,133.98	1,194.12	1,154.92	995.02	1,154.92
a	PVC	997.63	652.34	712.05	652.34	997.63	652.34	712.05	652.34
ь	PVC Pipes & Fittings	1,038.57	1,025.30	806.38	1,025.30	1,038.57	1,025.30	806.38	1,025.30
	Unallocated	1,495.57	1,395.24	672.80	1,395.24	1,560.37	1,461.32	730.58	1,461.32
	Capital Employed	3,531.77	3,072.88	2,191.23	3,072.88	3,596.57	3,138.96	2,249.01	3,138.96

The above results have been reviewed by the audit committee and approved by the Board at their respective meetings held on July 30, 2021. The limited review of the financial results for the quarter ended June 30,2021, pursuant to the SEBI (Listing Obligations and Disclosure Requirement) Regulation, 2015 as amended has been carried out by the statutory auditors.

The quarterly standalone and consolidated financial results for the period ended March 31, 2021 are the balancing figu res between the audited figures in respect of the year ended March 31,2021 and the published year-to·date figures up to December 31, 2020, being the date of the end of the third quarter of the financial year 2020-21, which were subjected to limited review as req uired under the Listing Regulations.

• The Company has evaluated the impact of Covid 19 on the operations of the Company, inventories, investments, property, plant & equipment, current borrowings and trade payables. The management has considered the possible effects, if any, on the carrying amounts of these assets and liabitties up to the date of approva l of these financial results. Based on the information from the internal and external sources; the management estimates to recover the carrying amount of these assets and currently does not anticipate any material impairment.
• The company has consolidated its associate, Finolex Plasson Industries Private Limited in which it holds 46.35% using equity method as per Ind AS 28 · 'Investment in Associates and Joint Ventures'. The Company has not consolidated an immaterial associate, Pawas Port Limited, in which the company holds 49.99°...b equity shares (Rs. 0.05 crores) and has not commenced operations.
• The above statement has been prepared in accordance with the Companies (Indian Accounting Standard) Rules, 2015 (Ind AS) prescribed under section 133 of the Companies Act, 2013 and other recognised accounting practices and policies to the extent applicable.
• The Board of Directors at their Meeting he ld on February 1, 2021 approved the sub-division of each equity share of face va lue of Rs. 10/- fully paid up into 5 equity shares of face value of Rs. 2/- each fully paid up. The same has been approved by the Members on March 26, 2021 through postal ballot and e-voting. The effective date for the subdivision was April 16, 2021. Consequently the split of equity shares has been effected from 16 April 2021. Accordingly, equity shares and earning per shares have been adjusted for share split in accordance with IN D AS 33 'Earning Per Share' for all previous quarters.
• Previous periods' figures have been re-grouped wherever necessary, to conform to the current period's classification.

Pune July 30, 2021

1Y·rw.L

AnilWhabi Director {Finance) & CFO DIN: 00142052

P G BHAGW AT LLP Chartered Accountants LLPlN: AAT-9949

HEAD OFFICE

Suites 102. ·orchard· Dr.Pai Marg, Baner, Pune - 45 Tel (0): 020 - 27290771 11 772/ 1773 Email: pgb@pgbhagwatca.com Web: www.pgbhagwatca.com

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

To

The Board of Directors Finolex Industries Limited Cat 399, Urse, Mavai, Pune- 410506, Maharashtra, India

We have reviewed the accompanying statement of standalone unaudited Ind AS Financial Results of Finolex Industries Limited (the "Company" ) for the Quarter ended June 30, 2021 being sub11itted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulations").

This Statement, which is the responsibility of the Company's Management and approved by the Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, (Ind AS 34) "Interim Financial Reporting" prescribed under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.

We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Institute of Chartered Accountants oflndia. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the financial statements are free of material misstatement. A review is limited primarily to inquiries of company persormel and an analytical procedure applied to financial data and thus provides less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.

PG BHAGWAT LLP Chartered Accountants

LLPIN: AAT-9949

Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying statement. prepared in accordcince with the recognition and measurement principles laid down ~ the aforesaid Indian Accounting Stan.dards ('Ind AS') specified under Section 133 of the Companies Act, 2013 as am.ended, read with relevant rules issued thereunder a:'1.d other accounting principles· generally accepted in India, has not disclosed the information required to be disclosed L11 terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulatior. ~, 2015 including the manner in which it is to be disclosed, or that it contains any material misstatement.

For P G BHAGWAT LLP

Chartered Accountants rn Registration Number- 101118W /W100682.

Nachiket Deo Partner Membership Number: 117695 UDIN: ²\ n 7 611..rAh~~'N-g37~

Pune Date: July 30, 2021

Mis P.G. Bhagwat a nartnershin firm was converterl ;inrl inr.nrnnr::iti>rl ~' I T P frnm 'H1¹ h ~""to""h,,.,. '1n'1n

PG BHAGWAT LLP

Chartered Accountants LLPJN: AA T-9949

HEAD OFFICE

Suiles l 02, 'Orchard' Dr.Pai Marg, Baner, Pune - 45 Tel (0): 020 - 27290771/1772/1773 Email: pgb@pgbhagwatca.com Web: www.pgbhagwatca.com

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

To

The Board of Directors Finolex Industries Limited Gat 399, Urse, Maval, Pune- 410506, Maharashtra, India

• 1. We have. reviewed the accompanying Statement of Consolidated Unaudited Ind AS Financial Results ·of Finolex Industries Limited ("the Company") and share of the r.et profit after tax and ·the total compre~ensive income of its associate for the Quarter ended June 30, 2021 being submitted by-the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Li.Sting Regulations").
• This Statemer\t, which is the responsibility of the Company's Management and approved by the C::ompany' s Board of Directo::-s, has been prepared in acccrdance "vitl:i. the recognition and measurement principles laid down in Indian Arcountinr; Standard 34 "Interim Financial Reporting" ("Ind AS 3·1"), prescribed under Section 133 of the Companies Act, 2013, as amended, read with relevant rules issued thereunder and othei· accounting principles generally ·accepted in India. Our responsibility is · to express· a conclusion on the Statement based on our review.
• 1. We conducted ou·r review of the Statement in accordance with the Standard on Review Engagement:S (SRE} 2410 "Review of Interim Finar.cial Information Performed by the Independent Auditor of the Entity"; issued by the Institute of Chartered Accountants of InC.Ha·.: This stand2:rd requires that we plan a..~d perform the review to obtain moderate assurance as to whether the financial staten1entS are free 'of materiaf misstatement. A review is limited primarily to bquiries of company personnel and an analytical procedure applied to financial data and thus provides less assurance than an audit. We have not performed an·audit and accordingly, we do not express an audit opin~ion.
• 1. We also performed procedures in accordance with the Circular No. CIR/CFD/CMDl/44/2019 dated March 29, 2019 issued by the SERI und2r Regulatior. 33 (8) of the SEBl (Listing Obligations and Disclosure Requirements) Regu.l~tions, 2015, as amended, to the extent applical>le. . .. I .

. · · . · ··. ~~GW..ql'

^~. . 9rnr.es at: Mumbai I K?lhapur I Belga~m. / Hu~li ! Dharwad I ~engaium ·. . . . « Mis P.u. Bragwat a partnership firm was .converted and mcorporatcd as L11n1ted Liab1hty Partnership from the 28" Septt::mber : n ·- , "': . . . , . *I~(/.)

• 1. The Statement includes the results of the following entities: Finolex Plasson Industries Private Limited (Associate of the Company consolidated on equity method as per Ind AS 28 "lnveshnent in Associates and Joint Ventures"). The management of the Company has not consolidated an immaterial Associate which has not started operations in which it holds 49.99% equity shares amounting to Rs.0.05 crores.
• 1. Based on our review conducted and procedures performed as stated in paragraph 3 above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement.

For PG BHAGWAT LLP Chartered Accountants ICAI Firm Registration Number: 101118W /W100682

~ Deo

Nachiket Parh1er Membership No: 117695 UDIN: 2'117( q.J M!lll 'l:.Jlf'1~/

Place: Pune Date: July 30, 2021