Hind Rectifiers Ltd. — Interim / Quarterly Report 2020

Aug 17, 2020

BSE Limited

Rotunda Building,

Dalal Street, Mumbai 400 001 Maharashtra

Phiroz Jeejeebhoy Towers,

Ref. No. HIRECT/SEC/2020-21/30 17th August, 2020

National Stock Exchange of India Limited "Exchange Plaza" 5th Floor, C-1, Block 'G' Bandra Kurla Complex, Bandra (East) Mumbai 400 051

Security Code No. 504036/HIRECT Type of Security: Equity

Sub: Outcomes of Board Meeting dated 17th August, 2020:- 1. Un-audited Financial Results for the quarter & three months ended 30th June 2020 2. Appointment of Joint Managing Director & CEO (KMP)

Dear Sir/Madam,

1. We enclosed herewith statement of un-audited financial results for the quarter and three months ended 30th June, 2020 which has been approved by the Board of Directors of the Company under Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, at their meeting held on Monday, 17th August, 2020.

The Limited Review Report by the Statutory Auditors of the Company on the aforesaid results is also enclosed for your reference and record.

2. The Board of Directors has appointed Mr. Suramya Nevatia, CEO (KMP) as an Additional Director w.e.f. 17th August, 2020. Further, the Board has also appointed Mr. Suramya Nevatia as the Joint Managing Director & CEO (KMP) of the Company for a period of three years from 17th August, 2020 up to 16th August, 2023. He will be liable to retire by rotation.

The appointment was made based on the recommendation of the Nomination and Remuneration Committee. The appointment is subject to the approval of shareholders in the ensuing Annual General Meeting of the Company.

Mr. Suramya Nevatia is related to Mr. S. K. Nevatia, Chairman and Managing Director (KMP) and Mrs. Akshada Nevatia, Executive Director of the company.

Further, as per the requirement of the Circular No. List/Comp/14/2018-19 dated 20th June, 2018 issued by BSE on the subject of enforcement of SEBI Orders regarding appointment of Directors by listed companies, we hereby affirm that the Director being appointed is not debarred from holding the office of director by virtue of any order of SEBI or any other such authority.

The details required under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with SEBI Circular No. ClR/CFD/CMD/4/2015 dated 9th September, 2015 are given as under.

Mr. Suramya Nevatia (DIN: 06703910) has done graduation from H. R. College of Commerce & Economics, Mumbai in 2009 and MSC in Marketing Management from Aston University, Birmingham, U.K. in 2010 with First class merit. He has also done Post Graduate Diploma in Family Managed Business from S.P. Jain Institute, Mumbai.

He is the Promoter of the Company and joined the Company in 2011. He was promoted as Chief Executive Officer (CEO) w.e.f. 1st June 2016 and as Key Managerial Personnel w.e.f. 1st June 2018. And from then the Company has gained from his visionary approach. Under his guidance and directions, the expansion plan of the Company was completed in the financial year 2017-18. Since then the Company has achieved major growth in turnover and profit.

He has deep exposure in Marketing, Production, Operation and Management, Strategic Development and Risk Management. He has in-depth knowledge of the core business of the Company i.e. Electronic Equipments and Power Semiconductor devices.

Kindly take the above on records.

Thanking you,

Yours Faithfully,

For Hind Rectifiers Limited Meenakshi Anchlia (Company Secretary & Compliance Officer) Digitally signed by MEENAKSHI ANCHLIA DN: C=IN, O=Personal, PostalCode=311001, S=Rajasthan, Phone=e730281436e01058aebc02a72c496 5c47f07af5e7fa6eb9717c91e446d2554f5, SERIALNUMBER=fd049ba8df1613d925a29 68d34c90013fa51c975fa02fe06ea599dfdd47 9b3f6, CN=MEENAKSHI ANCHLIA Reason: I am the author of this document Location: your signing location here Date: 2020-08-17 14:34:21 Foxit Reader Version: 10.0.0 MEENAKS HI ANCHLIA

Encl: Financial Result

Ravi A. Shah & Associates Chartered Accountants

Limited Review Report

To The Board of Directors of Hind Rectifiers Limited

We have reviewed the accompanying statement of unaudited financial results of Hind Rectifiers Ltd. ('the company') for the quarter ended June 30, 2020 ('statement'), being submitted by the Company pursuant to the requirement of Regulation 33 of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, as amended

This Statement is the responsibility of the Company's Management and has been approved by the Companys's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 "Interim Financial Reporting" ("IND AS 34"), prescribed under section 133 of Companies Act, 2013 read with relevant rules issued there under 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 in accordance with the Standard on Review Engagement (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.

Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement of unaudited financial results prepared in accordance with the applicable accounting standards i.e. Indian Accounting Standards ('Ind-AS') prescribed under section 133 of the Companies Act, 2013, read with relevant rules issued thereunder and other recognized accounting practices and policies, 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 Ravi A. Shah & Associates Chartered Accountants ICAI Firm Reg. No.: 125079W Digitally signed by Ravi Ashok Shah

Ravi Ashok Shah

DN: c=IN, o=Personal, postalCode=400056, st=Maharashtra, 2.5.4.20=a1685b203fc82dff3daf516df14ef7acb2ec9 acbb818a8652ebc7bd31ab36ef0, pseudonym=752CCACC6EC9AB54E73BCC8FCB2C3 268FE7686CB, serialNumber=970571E078D21C231E4B05341AAC CE7D90B68AF735C0AB21EC398C6B111E464F, cn=Ravi Ashok Shah Date: 2020.08.17 14:28:36 +05'30'

Ravi A. Shah Proprietor Membership No.116667 UDIN: 20116667AAAAGT6170 Mumbai, August 17, 2020

STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2020

		(Amount in Lakhs)
Sr. No	Particulars	For the Quarter ended on			For the Yearended on
		30.06.20	31.03.20	30.06.19	31.03.20
		(Unaudited)	(Audited)	(Unaudited)	(Audited)
1	Income
a	Revenue from operations	4,761.86	7,788.67	6,834.83	29,962.05
$\mathbf b$	Other income	13.61	23.46	4.25	48.16
	Total income	4,775.47	7,812.13	6,839.08	30,010.21
$\overline{2}$	Expenses
a	Cost of materials consumed	2,694.36	6,071.34	4,832.36	22,175.21
b	Purchases of stock-in-trade
c	Changes in inventories of finished	713.43	(301.31)	(104.42)	(1,240.68)
	goods, work-in-progress and stock-in-
	trade
d	Employee benefit expense	775.82	817.03	645.96	2,980.15
e	Finance costs	196.81	194.46	141.15	731.63
$\mathbf f$	Depreciation and amortisation expense	90.90	114.13	97.33	407.26
g	Other Expenses	251.20	623.29	492.51	2,332.57
	Total expenses	4,722.52	7,518.94	6,104.89	27,386.14
3	Profit/(Loss) before exceptional items	52.95	293.19	734.19	2,624.07
	and tax
$\overline{4}$	Exceptional items
5	Profit/(Loss) before tax	52.95	293.19	734.19	2,624.07
6	Tax expense
a	Current tax	15.43	81.14	97.82	634.45
b	Deferred tax	0.86	5.13	116.50	141.71
7	Net Profit/ (Loss) after tax	36.66	206.92	519.87	1,847.91
8	Other comprehensive income/(loss)
	Items that will not be reclassified to
	profit and loss in subsequent period
	(i) Actuarial Gains/(Loss) on post-	1.85	(31.09)	1.99	(25.05)
	employment defined benefit plan
	(ii) Tax on Above	(0.54)	9.05	(0.58)	7.29
9	Total Comprehensive income for	37.97	184.88	521.28	1,830.15
	period
10 1	Details of equity share capital
	Paid-up equity share capital of Rs. 2	331.27	331.27	331.27	331.27
	each
11	Reserves excluding revaluation				9,232.55
	reserve
12	Earnings per equity share
	Basic & Diluted	0.22	1.23	3.14	11.16

Address : Lake Road, Bhandup (W), Mumbai - 400078. Tel. $: +91-22-25696789$ $Fax: +91-22-25964114$ : corporate@hirect.com / marketing@hirect.com Email CIN : L28900MH1958PLC011077 Website : www.hirect.com

Notes:

1. The above results have been recommended by the Audit Committee and approved by the Board of Directors of the Company at the meeting held on 17th August, 2020. The Statutory Auditors have carried out theLimited Review of the financial results for the quarter ended 30th June, 2020 under Regulation 33 of SEBI (Listing Obligation & Disclosure Requirements) Regulation, 2015.

2. The above results, published in accordance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations. 2015. have been prepared in accordance with Indian Accounting Standards (IND AS) notified under section 133 of the Companies Act, 2013 read with relevant rules thereunder and other accounting principles generally accepted in India along with guidelines issued by the Securities and Exchange Board of India (SEBI).

3. On account or the spread of COVID 19 virus, the Central / State Government had imposed a Lockdown in the month of March, 2020 leading to shut down of the Company's manufacturing facilities and operations.Since then the Government has progressively relaxed lockdown conditions and has allowed most of the industries and businesses to resume operations in a phased manner.

The Company has resumed its operations in a phased manner as per directives from the Government, after putting in place due safety precautions and standard norms. Company is still in the process of scaling up its operations mainly for Mumbai Plant. Further since the lock-down was still in force for a significant period of the current quarter, the Company's operations were impacted however, management believes that the impact is short term and temporary in nature and the pandemic is not likely to have a major impact on the recoverability of the carrying value of its assets as at June 30, 2020 and the future operations. The management is continuously and closely monitoring the developments and possible effects that may result from the current pandemic on its financial condition, liquidity and operations and is actively working to minimize the impact of this unprecedented situation. As the situation is still continuously evolving, the eventual impact may be different from the estimates made as of the date of approval of these financial results.

1. In view of the MAT Credit available, the Company has not exercised the non revisable option permitted under section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Law (Amendment) Ordinance, 2019

2. The Company operates in a single segment as per Indian Accounting Standard (Ind AS) 108.

3. During the quarter ended 30th June, 2020, the company has not granted any stock options.

4. Previous year's figures have been reclassified and regrouped wherever necessary.

FOR HIND RECTIFIERS LIMITED

AKSHADA S NEVATIA

AKSHADA NEVATTA EXECUTIVE DIRECTOR

Place: Mumbai Dated: 17th August, 2020