Foseco India Ltd — Interim / Quarterly Report 2020

Jul 23, 2020

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July 23, 2020

BSE Limited National Stock Exchange of India Limited Listing Department, Listing Department, Phiroze Jeejeebhoy Towers, Exchange Plaza, 5[th] Floor, Dalal Street, Plot No. C/1, G Block, Mumbai 400 001 Bandra Kurla Complex, Bandra (East), Mumbai-400 051

Scrip Code: 500150 Scrip Code: FOSECOIND

Dear Sirs,

Sub: 1. Unaudited Financial Results for the quarter and 6 months ended 30 June 2020

2. Submission of the Limited Review Report of the Statutory Auditors

Ref: BSE Scrip Code: 500150, NSE Symbol: FOSECOIND, ISIN: INE519A01011

Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulation 2015, we write to advice that the Board of Directors of the Company at its Meeting held today i.e., 23 July 2020, have approved the Unaudited Financial Results of the Company for the quarter and 6 months ended 30 June 2020.

In this regard, we are submitting herewith the following documents:-

1) The Unaudited Financial Results of the Company for the above period; and

• 2) The Limited Review Report of the Statutory Auditors on the Financial Results.

The Meeting of the Board of Directors commenced at 1530 hours and concluded at 1815 hours.

You are requested to take the above information on record.

Thanking you,

Yours faithfully,

For FOSECO INDIA LIMITED

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Mahendra Kumar Dutia Controller of Accounts and Company Secretary

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Foseco India Limited

Registered Office: Gat Nos. 922 & 923, Sanaswadi, Taluka Shirur, District Pune – 412208 Tele: +91 2137 668100, 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, 2020

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(All figures in Rupees Lakhs)
Sr. Particulars Current Preceding Corresponding Current Corresponding Previous
No. 3 months ended 3 months ended 3 months ended in Year to date for Year to date for Accounting Year
the previous year 6 months ended 6 months ended Ended
30-Jun-2020 31-Mar-2020 30-Jun-2019 30-Jun-2020 30-Jun-2019 31-Dec-2019
Unaudited Unaudited Unaudited Unaudited Unaudited Audited
1 Income from Operations
a Revenue from operations 2,765.26 7,228.03 8,631.66 9,993.29 17,047.70 32,252.39
b Other income 228.51 133.84 190.83 362.35 326.38 781.26
Total Income from Operations (a to b) 2,993.77 7,361.87 8,822.49 10,355.64 17,374.08 33,033.65
2 Expenses
a Cost of materials consumed 1,205.33 3,752.97 4,583.15 4,958.30 9,057.75 17,975.93
b Purchase of stock in trade 43.09 169.65 149.36 212.74 297.73 523.36
c Changes in inventories of finished goods, work-in-progress and stock-in-trade 433.13 26.78 17.56 459.91 96.33 (489.40)
d Employee benefit expense 842.40 901.22 908.42 1,743.62 1,780.15 3,413.44
e Finance costs 0.01 - 0.13 0.01 0.13 0.13
f Depreciation and amortisation expense 145.16 144.64 100.30 289.80 196.83 419.70
g Other expenses 705.27 1,545.04 1,627.81 2,250.31 3,175.04 6,227.71
Total Expenses (a to g) 3,374.39 6,540.30 7,386.73 9,914.69 14,603.96 28,070.87
3 Profit / (Loss) before tax (380.62) 821.57 1,435.76 440.95 2,770.12 4,962.78
4 Tax Expense
- Current Tax (net) - 210.59 469.00 210.59 913.32 1,362.03
- Deferred Tax charge/ (credit) (88.29) 2.51 41.17 (85.78) 68.42 147.46
Total Tax Expense (88.29) 213.10 510.17 124.81 981.74 1,509.49
5 Net Profit / (Loss) for the Period / Year (292.33) 608.47 925.59 316.14 1,788.38 3,453.29
6 Other comprehensive income, net of income tax
a Items that will not be reclassified to
profit or loss
i Remeasurement of defined employee (26.04) (26.04) (7.23) (52.08) (14.46) (110.96)
benefit plans
ii Income tax relating to remeasurement of 6.55 6.55 2.49 13.10 5.05 27.93
defined benefit plan
Total other comprehensive income, net of
income tax (19.49) (19.49) (4.74) (38.98) (9.41) (83.03)
7 Total comprehensive income / (loss) for the period / year (311.82) 588.98 920.85 277.16 1,778.97 3,370.26
(5 +/- 6)
8 Paid up Equity Share Capital (Face Value Rs. 10/- per share) 638.65 638.65 638.65 638.65 638.65 638.65
9 Earnings per equity share (not annualised)
Basic and diluted earnings / (loss) per share (in Rs.) (4.58) 9.53 14.49 4.95 28.00 54.07
Reserves excluding Revaluation Reserve as per
10 Audited Balance Sheet of Previous Accounting 16,500.18
Year
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Page 1 of 4

Statement of Assets and Liabilities as at June 30, 2020

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(All figures in Rupees Lakhs)
Particulars Current Previous
Half Year Ended Accounting Year
Ended
30-Jun-2020 31-Dec-2019
Unaudited Audited
A ASSETS
1 Non-Current Assets
(a) Property, plant and equipment 3,303.88 3,432.37
(b) Capital work-in-progress 125.13 161.83
(c) Intangible assets - -
(d) Financial Assets
i. Loans 74.72 81.35
.(e) Deferred tax assets 284.50 185.60
.(f) Income tax assets (net) 461.81 295.50
.(g) Other non-current assets 63.79 94.48
Total Non-Current Assets 4,313.83 4,251.13
2 Current assets
(a) Inventories 1,716.87 1,939.95
(b) Financial assets
i. Trade receivables 4,170.81 7,284.64
ii. Cash and cash equivalents 12,565.48 11,107.60
iii. Bank balances other than cash and cash
77.57 77.79
equivalents
iv. Loans 14.01 15.52
v. Other financial assets 1.80 55.92
.(c) Income tax assets (net) 24.54 24.54
.(d) Other current assets 336.04 108.82
Total Current Assets 18,907.12 20,614.78
TOTAL ASSETS 23,220.95 24,865.91
B EQUITY AND LIABILITIES
EQUITY
(a) Equity share capital 638.65 638.65
(b) Other Equity 16,777.35 16,500.18
Total Equity 17,416.00 17,138.83
LIABILITIES
1 Non-Current Liabilities
(a) Financial liabilities
i. Other financial liabilities 36.97 28.96
(b) Provisions 28.84 51.84
Total Non-Current Liabilities 65.81 80.80
2 Current Liabilities
(a) Financial liabilities
i. Trade payables
- Total outstanding dues of micro enterprises - 1.08
and small enterprises
- Total outstanding dues of creditors other than 4,997.36 6,418.22
micro enterprises and small enterprises
ii. Other financial liabilities 353.25 711.38
(b) Other current liabilities 217.88 214.63
.(c) Current tax liabilities - 89.13
.(d) Provisions 170.65 211.84
Total Current Liabilities 5,739.14 7,646.28
Total Liabilities 5,804.95 7,727.08
TOTAL EQUITY AND LIABILITIES 23,220.95 24,865.91
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Statement of Cash Flow for 6 months ended June 30, 2020

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(All figures in Rupees Lakhs)
Particulars Current Previous
Half Year Ended Accounting Year
Ended
30-Jun-2020 31-Dec-2019
A. Cash flow from Operating activities
Profit before tax 440.95 4,962.78
Adjustments for :
Depreciation and Amortisation expense 289.80 419.70
Provision of Doubtful Debts - 276.63
(Profit) on sale / disposal of property, plant and
equipment (1.48) (8.92)
Finance cost 0.01 0.13
Interest income (168.90) (464.66)
Liability no longer required written back (5.83) (201.77)
Unrealised exchange (gain) / loss (net) (4.26) (2.49)
Employee share based payment expense - 35.71
Operating profit before working capital changes 550.29 5,017.11
Working capital adjustments for :
(Increase) / Decrease in Trade Receivables 3,119.25 1,340.31
(Increase) / Decrease in Inventories 223.08 157.87
(Increase) / Decrease in Other financial assets 56.14 (26.38)
(Increase) / Decrease in Other assets (227.22) (3.85)
Increase / (Decrease) in Trade Payables (1,417.28) (111.61)
Increase / (Decrease) in Other financial liabilities (350.12) (433.99)
Increase / (Decrease) in Other liabilities 3.25 12.60
Increase / (Decrease) in Provisions (116.27) (124.56)
Cash generated from operations 1,841.12 5,827.50
Income taxes paid (net of refunds) (466.03) (1,125.87)
Net cash generated from operating activities (a) 1,375.09 4,701.63
B. Cash flow from Investing activities
Payments for property, plant and equipment (93.92) (1,365.45)
Proceeds from disposal of property, plant and 1.48 14.66
equipment
Redemption of bank deposits (with maturity more - 0.40
than three months)
Loans to employees granted 8.14 (18.04)
Interest received 167.10 460.30
Net cash (used in) / generated from investing activities (b) 82.80 (908.13)
C. Cash flow from Financing activities
Interest paid (0.01) (0.13)
Dividends paid - (1,596.62)
Tax on dividends - (328.23)
Net cash used in financing activities (c) (0.01) (1,924.98)
Net increase in cash and cash equivalents - (a+b+c) 1,457.88 1,868.52
Cash and cash equivalents at the beginning of the year 11,107.60 9,239.08
Cash and cash equivalents at the end of the year / period 12,565.48 11,107.60
Cash and cash equivalents comprise of :
Cash on hand 1.65 1.30
Balances with banks
- in current accounts 627.11 1,274.92
- in EEFC accounts 246.72 216.38
Deposit with maturity of less than three months 11,690.00 9,615.00
Total cash and cash equivalents 12,565.48 11,107.60
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Note : The above Statement of Cash Flows has been prepared under the “Indirect Method” as set out in the Ind AS - 7 on Statement of Cash Flow.

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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 23, 2020. The Statutory Auditors have conducted a limited review of the financial results for the quarter and half year ended June 30, 2020 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 The spread of COVID-19 pandemic has severely impacted businesses in many countries including India and there has been severe disruption to regular business operations due to the extended lockdown. The Company has made detailed assessment of its liquidity position and the recoverable values of its financial and non-financial assets and has concluded that there are no material adjustments required in the interim financial results. However the impact assessment of COVID-19 is a continuous process, given the uncertainties associated with its nature and duration. The actual impact of this pandemic might be different from that estimated as at the date of approval of these financial results. The Company continues to monitor any material changes to future economic conditions.

• 4 Previous period’s figures have been reclassified, wherever necessary, to conform with current period’s classification.

Date : July 23, 2020 Place : Pune

For FOSECO INDIA LIMITED Sanjay Mathur Managing Director DIN : 00029858

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Review Report

To TheBoard of Directors Foseco India Limited GatNos. 922 and 923, Sanaswadi, Shirur Taluka,Pune- 412208 Maharashtra, India

1. We have reviewed the unaudited financialresults of Foseco India Limited (the “Company”) for the quarter ended June 30, 2020 which are included in the accompanying “Statementof unaudited financial results for the quarterand 6 months ended June30, 2020”, 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, as amended (the “Listing Regulations, 2015”), whichhas been initialled by us foridentificationpurposes. TheStatementistheresponsibilityof theCompany’smanagementand hasbeen approved by the Board of Directors. Our responsibility is to issue a report on the Statement based on our review.

2. We conducted our review in accordance with the Standard on Review Engagements (SRE) 2410, “Review of Interim Financial Information Performed by theIndependent Auditorof theEntity” issued by theInstitute of Chartered Accountants of India. This Standard requires that we plan and perform the review to obtain moderate assurance as to whether theStatementis free of material misstatement.

3. A review is limited primarily to inquiries of company personnel and analytical procedures appliedto financial data and thus provides less assurancethanan audit. We have not performed an audit and accordingly, we do not expressan audit opinion.

4. Based on our review conducted as above, nothing has come to our attentionthat causes us to believe that the Statement has not been prepared in all material respects in accordance with the applicable Accounting StandardsprescribedunderSection133of the CompaniesAct, 2013 and otherrecognised 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.

5. We draw your attention to Note 3 to the Statement, which describes the management’s assessment of the impact of the outbreak of Coronavirus (COVID-19) on the business operations of the Company. The management believes that no material adjustments are required in the Statement. However, in view of the highly uncertaineconomicenvironment, a definitive assessment of the impact on the subsequent periods is dependentuponcircumstances as theyevolve. Our conclusion is not modified in respect of this matter.

For PriceWaterhouse Chartered Accountants LLP

FirmRegistration Number: 012754N/N500016

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Amit Borkar Partner Membership Number: 109846 UDIN: 20109846AAAADO3000 Place: Pune Date: July23, 2020

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Price Waterhouse(a PartnershipFirm) Converted intoPriceWaterhouseChartered Accountants LLP (a Limited Liability Partnership with LLPidentity no: LLPINAAC-5001)with effect fromJuly 25, 2014.Post itsconversion toPrice Waterhouse CharteredAccountants LLP, its ICAIregistration number is 012754N/N500016 (ICAIregistration number before conversion was 012754N)