GMM Pfaudler Ltd. — Interim / Quarterly Report 2021

Aug 12, 2021

To; BSE Limited NSE Limited Mumbai — 400 001 Mumbai — 400 051

Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G, 1* Floor, Dalal Street, Bandra Kurla Complex, Bandra (E)

Scrip Code: 505255 Symbol: GMMPFAUDLR

Sub.: Outcome of the Board Meeting held on August 12, 2021

Ref.: Regulation 30 (read with Schedule Ill — Part A) and 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations")

Dear Sir/ Madam,

Pursuant to the SEBI Listing Regulations, this is to inform you that the Board of Directors of GMM Pfaudler Limited ("the Company") at their meeting held today i.e. August 12, 2021 which commenced at 02:00 p.m. and concluded at. 3¢p.m., have inter alia:

• 1. Approved the Unaudited Standalone and Consolidated Financial Results alongwith the Limited Review Report of the Statutory Auditors for the quarter ended June 30, 2021.
• 1. Approved payment of 1% Interim dividend of Re. 1 per share on 14,617,500 Equity Shares of Rs. 2 each aggregating to Rs. 14,617,500 for the financial year 2021-22 as under:

Record date: August 23, 2021 Payment date: on or before September 10, 2021.

Accordingly, the Unaudited Standalone and Consolidated Financial Results alongwith the Limited Review Report for the quarter ended June 30, 2021 are enclosed.

The above is being made available on the website of the Company i.e. www.gmmpfaudler.com.

Kindly take the same on record.

Thanking you.

Yours faithfully,

For GMM Pfaudler Ltd.

Tarak Patel Managing Director DIN : 00166183

Encl.: As above

GMM Pfaudler Limited

Corporate Office : 902, Lodha Excelus, Commercial Tower 1, New Cuffe Parade, Sewri - Chembur Road, Mumbai-400022. * O: +91 22 6650 3900 Registered Office : Vithal Udyognagar, Anand - Sojitra Road, Karamsad - 388 325 * O: +91 2692 661700 * F: +91 2692 661888 * CIN: L29199GJ1962PLC001171

= Chartered Accountants Deloitte 19 Hoon shpat S G Highway a Haskins & Sells area 20001

Tel: +91 79 6682 7300 Fax: +91 79 6682 7400

INDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEW OF INTERIM STANDALONE FINANCIAL RESULTS

TO THE BOARD OF DIRECTORS OF GMM Pfaudler Limited

• 1. We have reviewed the accompanying Statement of Standalone Unaudited Financial Results of GMM Pfaudler Limited ("the Company"), for the quarter ended June 30, 2021 ("the Statement"), being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.
• 1. 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 the Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013 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 (ICAI). A review of interim financial information consists of making inquiries, primarily of the Company's personnel 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 specified under section 143(10) of the Companies Act, 2013 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 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 DELOITTE HASKINS & SELLS Chartered Accountants (Firm's Registration No. 117365W)

K oabRayo. Raves

Kartikeya Raval Partner (Membership No. 106189) UDIN: 21106189AAAAJW8082

Place: Ahmedabad Date: August422021

	GMM PFAUDLER LIMITED
Registered Office & Works: Vithal Udyognagar, Karamsad 388 326, Gujarat, India CIN: L29199GJ1962PLC0001171, Email ID: sales@gmmpfaudler.com, Web Site: www.gmmpfaudler.com
STATEMENT OF STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2021
				₹ In Million
		Standalone
		Quarter ended		Year ended
Particulars	30.06,2021 Unaudited	31.03.2021 Unaudited	36.05.2020 Unaudited	31.03.2021 Audited
		(Refer Note 4)
¥. income:
Revenue from Operations Other Income	1,713.54 8.39	1,900.37 7.63	1,308.97 21.88	6,408.09 78.89
Total Income	1.721.93	1,908.00	1.330.85	6,486.98
Expenses: $\overline{2}$
a) Cost of materials consumed	694.31	862 06	389.74	2,637.06
b) Changes in inventories of finished goods and work-in-progress	(18.91)	(109.70)	261.91	103.21
c) Employee benefits expense	199.06	16279	151.43	699.04
d) Depreciation & amortization expense	78.44	72.20	55.14	289.50
e) Labour Charges	107.05	138.07	74.74	418.80
f) Finance cost	32.34	1941	11.68	66.58
a) Other Expenses	294.65 1,386.94	323 99 1,468.82	188.26 1,132.90	1.013.76 5,227.95
Total Expenses 3
Profit before exceptional items and tax (1-2)	334.99	439.18	197.95	1,259.03
Exceptional items $\boldsymbol{4}$ Profit Before Tax (3 ± 4) 5	334.99	$\sim$ 439.18	197.95	1,259.03
Tax Expense: 6
Current Tax	83.44	109,60	52.59	326.49
Excess Provision for Tax relating to Prior Years	(5.78)			(13.87)
Deferred Tax	(1.17)	14.74	(18.14)	(4.61)
Profit for the period from continuing operation (5-6) $\overline{7}$	258.50	314.B4	163.50	951.02
Profit from discontinued operations ß.	÷	×	÷	÷
Tax Expenses of discontinued operations $\Omega$ Profit from discontinued operations (after tax) (8-9) 10
Profit for the period (7+10) 11	258.50	314.84	163.50	951.02
Other Comprehensive Income 12
A) items that will not be reclassified to profit or loss
i) Actuarial Gain / (Loss) on Gratuity and Pension obligations	(5.35)	(10, 04)	(1,73)	(15.22)
ii) Income tax relating to items that will not be reclassified to profit or loss
B) Items that will be reclassified to profit or loss
i) Exchange difference in translating the financial statements of
foreign components lass
ii) Income tax relating to items that will be reclassified to Profit & loss account Total Comprehensive Income for the period (11+12) (Comprising Profit and 13
Other Comprehensive Income for the period)	253.15	304.80	161.77	935.80
Earnings per equity share (For continuing operations) (Face Value of share ₹ 2/- 14
each) (not annualised):
a) Basic & Diluted	17.68	21.54	11.19	65.06
Earnings per equity share (For discontinued operations) (Face Value of share $\bar{z}$ 2/-) $15 -$ (not annualised):
a) Basic & Diluted
Earnings per equity share (For discontinued operations & continuing operations) 16
(Face Value of share ₹ 2/-) (not annualised):
a) Basic & Diluted	17.68	21.54	11 19	6506
Paid-up Equity Share Capital (Face Value of ₹ 2 each) 17	29.23	29.23	29.23	29 23
18 Other Equity				3,544.26

Notes:

The above unaudited results have been reviewed by the Audit committee and approved by Board of Directors in their meeting held on August 12, $1)$ 2021.

The Board of Directors have announced a first interim dividend of ₹ 1/- per share for the current financial year 2021-22. The record date for the 2) payment of the said dividend has been fixed on August 23, 2021.

Number of investors complaints (i) opening at the quarter : 0 (ii) received during the quarter : 0 (iii) disposed off : 0 and (iv) pending at the quarter $3)$ end: 0

4) The figures for the quarter ended March 31, 2021 are the balancing figures between audited figures in respect of the relevent full financial year and the published year to date figures up to the nine months of the relevent financial year.

5) As per Ind AS-108 "Operating Segments" issued by the Institute of Chartered Accountants of India, if financial results contains standalone financial results and consolidated financial results, no separate disclosure on segment information is required to be given in the standalone financial results. Accordingly, segment information has been given in the Consolidated Financial Results of the Company

6) The Company had successfully bid in E-auction sale of asset under IBC, 2016 of HDO Technologies Limited on March 16, 2021 with a bid value of Rs. 584.57 Million. The Company has concluded the acquisition on April 23, 2021.

Place : Mumbai Date : August 12, 2021

FAU For and on behalf of Board of Directors For GMM Pfaudler Limited $\sum_{i=1}^{n}$ Tarak A. Patel Managing Director

- Chartered Accountants Deloitte vga floor, shpat i Ahmedabad-380 015 Haskins & Sells ae a

S.G. Highway

Tel: +91 79 6682 7300 Fax: +91 79 6682 7400

INDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEW OF INTERIM CONSOLIDATED FINANCIAL RESULTS

TO THE BOARD OF DIRECTORS OF GMM Pfaudler Limited

• 1. We have reviewed the accompanying Statement of Consolidated Unaudited Financial Results of GMM Pfaudler Limited ("the Parent") and_ its subsidiaries (the Parent and its subsidiaries together referred to as "the Group") for the quarter ended June 30, 2021 ("the Statement") being submitted by the Parent pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.
• 1. This Statement, which is the responsibility of the Parent's Management and approved by the Parent's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013 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 (ICAI). A review of interim financial information consists of making inquiries, primarily of Parent's personnel 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 specified under Section 143(10) of the Companies Act, 2013 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. The Statement includes the results of entities as given in Annexure to this report.
• 1. Based on our review conducted 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.

Deloitte Haskins & Sells

1. We did not review the financial information of 15 subsidiaries included in the consolidated unaudited financial results, whose interim financial information reflect total revenues of Rs. 3,769.55 million for the quarter ended June 30, 2021, total loss after tax of Rs. 455.23 million for the quarter ended June 30, 2021 and total comprehensive loss of Rs. 281.98 million for the quarter ended June 30, 2021, as considered in the statement, whose interim financial information have not been reviewed by us. These interim financial information have been reviewed by other auditors whose reports have been furnished to us by the Management and our conclusion on the statement, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries, is based solely on the reports of the other auditors and the procedures performed by us as stated in paragraph 3 above.

Our Conclusion on the Statement is not modified in respect of these matters.

For DELOITTE HASKINS & SELLS Chartered Accountants (Firm's Registration No. 117365W)

K nskag Kamas

Kartikeya Raval (Partner) (Membership No.106189) UDIN: 21106189AAAAIJX7479

Place: Ahmedabad Date: August 42, 2021

Deloitte Haskins & Sells

Annexure to Independent Auditor's Limited Review Report:

The Parent

1. GMM Pfaudler Limited

List of Subsidiaries

• Mavag AG
• GMM International S.a.r.l.
• Pfaudler GmbH
• Pfaudler Normag Systems GmbH
• Pfaudler interseal GmbH
• Pfaudler France S.a.r.l.
• Pfaudler Service BeNeLux B.V.
• Pfaudler S.r.l.
• Pfaudler Limited
• Souzhou-Pfaudler Glass Lined Equip Company Limited
• Pfaudler S.A. de C.V.
• Edlon Inc
• GMM Pfaudler US Inc.
• Glasteel Parts and services Inc.
• Pfaudler Ltda.
• Pfaudler Private Limited

	GMM PFAUDLER LIMITED
	Registered Office & Works: Vithal Udyognagar, Karamsad 388 325, Gujarat, India CIN:L29199GJ1962PLC0001171, Email ID:sales@gmmpfaudler.com, Web Site:www.gmmpfaudler.com STATEMENT OF CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2021
					₹ In Million
			Consolidated Quarter ended		Year ended
	Particulars	30.06.2021 Unaudited (Refer Note 6)	31.03.2021 Unaudited (Refer Note 4)	30.06.2020 Unaudited	31.03.2021 Audited
1	Income: Revenue from Operations	5,516.79	4,686.17	1,544.34	10,011.19
	Other Income Total Income	11.97	160,76	27.20 1,571.54	234.70
$\overline{2}$	Expenses:	5,528.76	4,746.93		10,245.98
	a) Cost of materials consumed b) Changes in inventories of finished goods and work-in-progress	2.161.25 8.21	1,582,36 428.40	492.55 248.77	3,862.23 614.76
	c) Employee benefits expense	1.745.54	1,256,47	242.83	2,074.72
	d) Depreciation & amortization expense e) Labour Charges	386.57 138.80	275.65 161.61	59.75 80.86	505.52 469.79
	f) Finance cost	141.27	54.64	11.68	10181
	g) Other Expenses Total Expenses	1,103.59 5,685.23	859.68 4,618.81	204.39 1,340.83	1,603.35 9,232.18
3	Profit before exceptional items and tax (1-2) Exceptional items	(156, 47)	128.12	230.71	1,013.80
4 5	Profit Before Tax (3 ± 4)	(156.47)	335 17 (207.05)	230.71	335 17 678.63
s	Tax Expense: Current Tax	191.23	82.14	50.74	305 96
	Excess Provision for Tax relating to Prior Years	(5, 78)	(25.63)	$\sim$	(39.50)
7	Deferred Tax Profit for the period from continuing operation (5-6)	(157.91) (184.01)	(20604) (57, 52)	(11.96) 191.93	(221.88) 634.05
8 9	Profit from discontinued operations Tax Expenses of discontinued operations	٠ ÷	s $\bar{a}$	$\sim$ $\overline{\phantom{a}}$	$\overline{\phantom{a}}$
10	Profit from discontinued operations (after tax) (8-9)	۷
	11 Profit for the period (7+10) Attributable To	(184.01)	(57.52)	191.93	634.05
	Equity Holders of the Parent Non Controlling Interest	25.90 (209.91)	41.51 (99.03)	191.93 $\sim$	733.64 (99.59)
12 12	Other Comprehensive Income
	A) Items that will not be reclassified to profit or loss. i) Actuarial Gain / (Loss) on Gratuity and Pension obligations	(3, 20)	547.71	10.79	471.04
	ii) Income tax relating to items that will not be reclassified to profit or loss	(0.30)	(131.24)	(1, 75)	(121.23)
	B) Items that will be reclassified to profit or loss i) Exchange difference in translating the financial statements of
	foreign components	225 15	(173.55)	10.10	(112, 79)
	i) Income tax relating to items that will be reclassified to profit or loss Total Other Comprehensive Income	221.65	242.92	19.14	237.02
	Attributable To Equity Holders of the Parent	141,95	127,75	19.14	12183
	Non Controlling Interest Total Comprehensive Income for the period (11+12) (Comprising Profit and	79.70	115.17	$\sim$	115 19
13	Other Comprehensive Income for the period) Attributable To	37,64	185.40	211.07	B71.07
	Equity Holders of the Parent Non Controlling Interest	167.85 (130.21)	169.26 16.14	211.07	855,47 15.60
	Earnings per equity share (For continuing operations) (Face Value of share ₹ 2/- each) (not annualised):
14	a) Basic & Diluted Earnings per equity share (For discontinued operations) (Face Value of share ₹ 2/-).	177	2.84	13.13	50.19
15	(not annualised): a) Basic & Diluted			$\sim$
	Earnings per equity share (For discontinued operations & continuing operations)
16	(Face Value of share ₹ 2/-) (not annualised): a) Basic & Diluted	1.77	2.84	13.13	50.19
17 18	Paid-up Equity Share Capital (Face Value of ₹ 2 each) Other Equity	29 23	29.23	29.23	29 23 4.042.18
Notes:
1)	The above unaudited results have been reviewed by the Audit Committee and approved by the Board of Directors in their meeting held on August 12, 2021
2)	The Board of Directors have announced a first interim dividend of ₹ 1/- per share for the current financial year 2021-22. The record date for the payment of the said dividend has been fixed on August 23, 2021.
3).	Number of Investors complaints (i) opening at the quarter : 0 (ii) received during the quarter : 0 (iii) disposed off : 0 and (iv) pending at the quarter end: 0
	4) The Consolidated figures for the quarter ended 31.03.2021 are the balancing figures between audited figures in respect of the relevant full financial year and the published year to date figures up to the nine months of the relevant financial year.
5).	An inventory step-up of ₹921.55 million was recorded during quarter ended March 31, 2021 and year ended March 31, 2021. Out of which remaining ₹ 464,97 (excluding forex impact) million was charged to cost of materials consumed during the quarter ended June 30, 2021, based on sales of such inventory. Estimated period for sale of such inventory was estimated to be approximately 4 months.
G).	Results and segment disclosures for the period relating to quarter ended March 31, 2021 and year ended March 31, 2021 include Pfaudler International business from February 1, 2021, hence figures for the quarter ended June 30, 2021 are not comparable with the figures for the quarter endert March 31, 2021
	online un $P_{U}$ EHASKINS	OLER		or and on behalf of Board of Directors	For GMM Pfaudler Limited
				rnel

Place : Mumbai
Date : August 12, 2021

$\circ$

$\mathscr{H}_{\mathcal{D}}$ $-4$ Tarak A. Patel
Managing Director

~SEGMENTWISE REVENUE, RESULTS, SEGMENT ASSETS AND LIABILITIES ee _	ee	FOR THE QUARTER _	ENDED JUNE 30, 2021	= In Million
Particular are mlars		Consolidated Quarter ended 30.06.2021 31.03.2021 30.06.2020 31.03.2021		; Year ended
_ ae	_ Unaudited Unaudited Unaudited (Refer Mofe 6) (Refer Note 4)			Audited
1) Seqment Revenue a) tndia b) Overseas	1,542.44 3,974.38	1.739.16 2,847 G4	1,265.47 278.87
Net sales / income from Operation	i 5167 O			6,165 50 3,845 69
2) Segment Result: Profit before Tax and Interest		4,586.17	4,544.34	10,014.19
a) India
b} Overseas	350,33 (386.53)	256.78 (409 19)	209.63 32.76	1,123.79 (343.35)
Total Less : Finance Casts	(15.20) 141.27	(152.44) 64.64	242,38 11.68	780.44 107.81
__ Total Profit before Tax __ _	(156.47)	(207.05)	230.74	678.63
3) Seqment Assets: a) India	§,611.36	4 881.60	4,334.09	4,881.60
bh) Overseas	19,287.47	19 293.33	1,413.04	19.293.33
; _ ; — Total 4) Segment Liabilities:		24,898.83 24,174.93 5,747.13 24,474.93
a) India b) Overseas	3,486.74 16,075.05	2,941.12 15,929. 18,870.19	4,675.99 430.75 2,106.74	2,944.42 15,929.07 18,670.19

ANALYSIS TO STATEMENT OF CONSOLIDATED UNAUDITED RESULTS eu _ FOR THE QUARTER ENDED JUNE 30, 2021

ANALYSIS TO STATEMENT OF CONSOLIDATED UNAUDITED RESULTS FOR THE QUARTER ENDED JUNE 30, 2021 ne eu " eo Consolidated International — Standalone Standalone {in Rs Million) Q1 FY22 Inter-Co — Reported Results Ppa Eliminat Results Results : QiFyY22 Adjusted QiFY22 Qi FY21 QIFY21 jipact ions (Note i) % (Note ii) A+B+C+D A B D Cc Revenue from Operations 4,089 5,517 1,309 1,714 -286 Cee ounaenels 694 4,657 -190 2,161 390 consumed 465 Ss Changes in inventory aee -371 -18 -68 (Note iif) 8 Employee benefits 499 1,547 454 1,746 expense : Labour Charges 139 107 32 15 _ 1,104 Other expenses 295 818 188 -9 -465 EBITDA 359 406 437 243 -19 oe Other Income 22 4 8 Finance cost 109 141 32 12 Depreciation and 188 ace amortisation expense te (Note iv) ee ee
Particulars
	:
	1,544
	492
	249
	243
	81
	204
	275
	21
	12
-19 -167 Taxes 34 77 28 (Note v) 11 8	ee
-487 164 258 -184 Profit after tax 63 -19	231 39	-156	-653	181	335	198	PBT

Notes:

(i) International business includes the standalone performance of Mavag and Pfaudler International (PFI) on operational basis

(ii) PPA stands for Purchase Price Allocation

(iii) Rs 465 million due to fair value adjustment on inventory sold during Q1 FY22 by PFI

(iv) Rs 188 million is amortisation on fair value of acquired intangible assets (mainly Trademarks, Technology, Customer

Relationships)

(v) Deferred tax of Rs 167 million on Note (iii) and Note (iv)