Foseco India Ltd — Interim / Quarterly Report 2019

Jul 25, 2019

25 July 2019

BSE Limited Listing Department, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai 400 001

National Stock Exchange of India Limited Listing Department, Exchange Plaza, 5 th Floor, Plot No. C/1, G Block, Sandra Kurla Complex, Sandra (East), Mumbai-400 051

Scrip Code: 500150 ISIN: INE519A01011 NSE Symbol: FOSECOIND

Dear Sirs,

Sub: 1. Unaudited Financial Results for the quarter and 6 months ended 30 June 2019

2. Submission of the Limited Review Report of the Statutory Auditors 3. Declaration of the 1 st interim dividend and fixation of the record date

We write to advice that the Board of Directors of the Company, at its Meeting held today i.e., 25 July 2019, had approved the Unaudited Financial Results of the Company for the quarter and 6 months ended 30 June 2019.

Pursuant to the SEBI (Listing Obligations and Disclosure Requirements) Regulation 2015, ("Listing Regulations") we are submitting herewith the following documents:

• 1. The Unaudited Financial Results of the Company as above; and
• 1. The Limited Review Report of the Statutory Auditor on the Financial Results.

The Board of Directors at the said Meeting has declared a 1st interim dividend of Rs. 8.00 (80%) per equity share of Rs. 10/- each, for the financial year ending on 31 December 2019.

Pursuant to Regulation 42 of the SEBI (Listing Obligations And Disclosure Requirements) Regulations, 2015, the record date for the purpose of payment of the 1 s t interim dividend will be 3 August 2019.

The interim dividend will be paid / despatched to the shareholders on or before 24 August 2019.

The Meeting of the Board of Directors commenced at 1530 hours and concluded at 1840 hours.

You are requested to take the above information on record.

Yours faithfully, For Foseco India Limited

.�� Mahendra f{um'ar Dutia Controller of Accounts and Company Secretary

Enclosing: as above

Foseco is a brand of the Vesuvius Group.

Foseco India Limited

Registered Office: Gal Nos. 922 & 923, Sanaswadi, Taluka Shirur, District Pune - 412208 Tele: +91 2137668100, Fax: +91 2137 668160

Website: www.fosecoindia.com, E-mail ID: investor.grievance@vesuvius.com Corporate Identity Number: L24294PN1958PLC011052

Statement of unaudited results for the quarter and 6 months ended June 30, 2019

	(All fiqures in Rupees Lakhs)
No.	Sr. Particulars	Current3 months ended	Preceding	Corresponding3 months ended 3 months ended Inthe previous year	CurrentYear to date for6 months ended	CorrespondingYear to date for6 months ended	PreviousAccounting YearEnded
		30-Jun-2019Unaudited	31-Mar-2019Unaudited	30-Jun-2018Unaudited	30-Jun-2019Unaudited	30-Jun-2018Unaudited	31-Dec-2018Audited
1	Income from Operations
	aRevenue from operations	8,631.66	8,416.04	8,829.39	17,047.70	18,190.14	36,215.58
	bOther income	190.83	135.55	109.48	326.38	188.55	442.70
	Total Income from Operations (a to b)	8,822.49	8,551.59	8,938.87	17,374.08	18,378.69	36,658.28
2	Expenses
	Cost of materials consumeda	4,583 15	4,474.60	5,098.02	9,057 75	10,773.28	20,883.51
	bPurchase of stock 1n trade	149.36	148.37	173.62	297 73	289.89	608.80
	Changes 1n inventories of finished goods, work.-Cin-progress and stock-in-trade	17 56	78.77	(100.42)	96.33	(83.18)	20.62
	dEmployee benefit expense	908.42	871.73	847.84	1,780.15	1,645.17	3,448.18
	eFinance costs	0.13		11.15	0.13	19.35	20.87
	fDepreciation and amortisation expense	100.30	96.53	117.13	196.83	234.51	453.90
	Other expenses9	1.627.81	1,547.23	1,484.32	3.175.04	2,959.91	6,215.14
	Total Expenses (a tog)	7,386.73	7,217.23	7,631.66	14,603.96	15,838.93	31,651.02
3	Profit before tax	1,435.76	1,334.36	1,307.21	2,770.12	2,539.76	5,007.26
4	Tax Expense
	Current Tax (net)	469.00	444.32	506.00	913.32	917.00	1,841.96
	Deferred Tax charge/ (credit)	41.17	27.25	(41.53)	68.42	(13.28)	(38.35)
	Total Tax Expense	510.17	471.57	464.47	981.74	903.72	1,803.61
5	Net Profit for the Period	925.59	862.79	842.74	1,788.38	1,636.04	3,203.65
6	Other comprehensive Income, net of Income tax
	a Items that will not be reclassified toorofit or loss
	Remeasurement of defined employeebenefit olans	(7.23)	(7.23)	(12.25)	(14.46)	(24 50)	(124 51)
	II ,ncome tax relating to remeasurement ofdefined benefit plan	2.49	2.56	4.28	5 05	8.52	43.51
	Total other comprehensive Income, net ofincome tax	(4 74)	(4.67)	(7.97)	(9.41)	(15 98)	(8100)
7	Total comprehensive income for the periodf5 +/- 61	920.85	858.12	834.77	1,778.97	1,620.06	3,122.65
8	Paid up Equity Share Capital(Face Value Rs. 10/- per share)	638.65	638.65	638.65	638.65	638.65	638.65
	Reserves excluding Revaluation Reserve as perAudited Balance Sheet of Previous AccountingYear						14,972.15
	10 Earnings per equity share (not annualised)
	Basic and diluted earnings per sharefin Rs.l	14.49	13.51	13.20	28.00	25.62	50.16

Page 1 of 4

Statement of Assets and Liabilities as at June 30, 2019

Particulars		As at Current HalfYear Ended30-Jun-2019Unaudited	(All fiqures in Rupees Lakhs!As at PreviousYear Ended31-Dec-2018Audited
A	ASSETS
1	Non-Current Assets
(a)	Property, plant and equipment	1,932.90	1,970.04
	(b) Capital work-in-progress	1,312.93	595 95
(c)	Financial Assets
	i. Loans	84.55	65.43
(d)	Deferred tax assets	241.76	305.13
(e)	Income tax assets (net)	160.22	300.03
en	Other non-current assets	210.55	182.67
	Total Non-Current Assets	3,942.91	3,419.25
2	Current Assets
(a)	Inventories	1,870.93	2,097.82
	(b) Financial assets
	I. Trade receivables	8,321.44	8,700.95
	11. Cash and cash equivalents	10,315.00	9,239.08
	m. Bank balances other than (ii) above	75.04	76 82
	1v. Loans	15 01	13.40
	v Other financial assets	2110	26 55
(c)	Income tax assets {net)	207.92	167.04
	(d) Other current assets	227.35	104.97
	Total Current Assets	21,053.79	20,426.63
	TOTAL ASSETS	24,996.70	23,845.88
B	EQUITY AND LIABILITIES

	TOTAL EQUITY AND LIABILITIES	24,996.70	23,845.88
	Total Llabllitles	8,376.85	8,235.08
	Total Current Llabllltles	8,184.62	8,001.11
(d)	Current Tax Liabilities	177.89
(C)	Provisions	138.60	230 07
(b)	Other current liabilities	243.49	20203
	ii. Other financial llab1lities	306.25	548 78
	- Total outstanding dues of creditors otherthan micro enterpnses and small enterprises	7,307.29	6,972 58
	- Total outstanding dues of microenterprises and small enterprises	11.10	47.65
	, Trade payables
(a)	Financial liabilities
2	Current Liabilities
	Total Non-Current Llabllities	192.23	233,97
(b)	Provisions	23 09	47.21
	,. Other financial liabilities	169.14	186 76
(a)	Financial liabilities
1	Non-Current Liabilities
	LIABILITIES
	Total Equity	16,619.85	15,610.80
(b)	Other Equity	15,981.20	14,972.15
(a)	Equity Share Capital	638.65	638.65
	EQUITY

Page 2 of 4

Statement of Cash Flow for 6 months ended June 30, 2019

(All fioures in Rupees Lakhs)
	i As at current Hair	As at Previous
Particulars	Year Ended	Year Ended
	30-Jun-2019	31-Dec-2018
	Unaudited	Audited
A. Cash flow from operating activities
Profit before tax	2,770.12	5,007.26
Adjustments for
Depreciation and amortisation expense	196 83	453.90
Provision of doubtful debts	37.39	179.42
Loss/ (Profit) on sale/ disposal of property, plantand equipment	1.86	(213)
Finance cost	0.13	20.87
Interest income	(224.85)	(337.57)
Provisions no longer required, written back	(5.52)	(49.38)
Unrealised exchange (gain) / loss (net)	(0.24)	4.44
Operating profit before working capital changes	2,775.72	5,276.81

Working capital adjustments for:

345.16226.896.83	1,214.05(426.67)(5.71)
	(44.69)
	679.02
	194.29
41.48	(185.51)
	(32.65)
	6,668.94
	(1,977.69)
	4,691.25
	(143.12)300.88(260 14)(130.06)177.893,341.53(814.39)2,527.14

B. Cash flow from Investing activities
Payments for property, plant and equipment	(906.42)	(806.12)
Proceeds from dIsposat of property, plant andequipment		3.35
Redemption of bank deposits (with maturity morethan three months)	0.40	0.52
Investment in bank deposits (with maturity morethan three months)		(040)
Interest income	224.85	337.57
Net cash outflow from Investing activities {b)	(681.17)	(465.08)

C. Cash flow from financing activities
Repayment of sales tax deferral loan		(64.53)
Interest paid	(0.13)	(1,724.35)
Dividends paid	(638.65)	(352.93)
Tax on dividends	(131.27)	(20.87)
Net cash outflow from financing activities (c)	(770.05)	(2,162.68)

Net cash inflow/ (outflow) -
Net increase in cash and cash equivalents - (a+b+c)	1,075.92	2,063 49
Cash and cash equivalents at the beginning ofthe year	9,239.08	7,175.59
Cash and cash equivalents at the end of the year	10,315.00	9,239.08

Cash and cash equivalents comprise of:
Cash on hand	2.65	1.51
Balances with banks	10,312.35	9,237 57
Total cash and cash equivalents	10,315.00	9,239.08

Note The above Statement of Cash Flow has been prepared under the �Indirect Method" as set out in the Ind AS - 7 on Statement of Cash Flow.

NOTES:

• 1 The results have been reviewed by the Audit Committee and approved by the Company's Board of Directors at their respective meetings held on July 25, 2019. The Statutory Auditors have conducted a limited review of the financial results for the quarter and half year ended June 30, 2019 and have issued an unmodified opinion.
• 2 The Company has only one reportable segment, metallurgical products and services, in accordance with Ind AS 108 - "Operating Segments", notified pursuant to the Companies (Indian Accounting Standards) Rules, 2015.
• 3 Effective January 1, 2019, the Company has adopted Ind AS 115 'Revenue from Contracts with Customers, replacing existing revenue recognition standards viz. Ind AS 18 'Revenue' and Ind AS 11 'Construction Contracts'. Using the modified retrospective approach, there were no adjustments required to the retained earnings as at January 1. 2019. Also the adoption of the Ind AS 115 did not have any material impact on the recognition and measurement of revenue and related items m the financial results of the Company.
• 4 The Board of Directors of the Company has declared a 1 st interim dividend of Rs 8/- (80%) on per equity share of Rs.10/- each The intenm dividend will be paid to those shareholders i) whose names appear In the Company's Register of Members, In respect of the shares held in physical form, on the record date i.e., August 3, 2019 and ii) whose names appear as beneficial owners, in respect of shares held in demat form, as per the details furnished for this purpose by the National Securities Depository limited and the Central Depository Services (India) Limited, on the record date i.e .. August 3, 2019. The interim dividend will be paid / dispatched to the shareholders on or before August 24, 2019

r Date· July 25, 2019 Place · Mumbai ForFOSE.'.: � OIND� Managing Director DIN : 00029858

Price Waterhouse Chartered Accountants LLP

The Board of Directors Foseco India Limited Gat Nos. 922 and 923, Sanaswadi, Shirur Taluka, District Pune 412208 Maharashtra, India

• 1. We have reviewed the unaudited financial results of Foseco India Limited (the "Company") for the quarter ended June 30, 2019 which are included in the accompanying "Statement of unaudited results for the quarter and 6 months ended June 30, 2019", the statement of assets and liabilities as on that date and the statement of cash flows for the half year ended on that date (the "Statement"). The Statement has been prepared by the Company pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the "Listing Regulations, 2015"), which has been initialled by us for identification purposes. The Statement is the responsibility of the Company's management and has been approved by the Board of Directors. Our responsibility is to issue a report on the Statement based on our reVIew.
• 1. We conducted our review 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.
• 1. A review is limited primarily to inqumes of company personnel and analytical procedures 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.
• 1. Based on our review conducted as above, nothing has come to our attention that causes us to believe that the Statement has not been prepared in all material respects in accordance with the applicable Accounting Standards prescribed under Section 133 of the Companies Act, 2013 and other recognised accounting practices and policies, and has not disclosed the information required to be disclosed in terms of Regulation 33 of the Listing Regulations, 2015 including the manner in which it is to be disclosed, or that it contains any material misstatement.

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Place: Mumbai Date: July 25, 2019