Hindustan Composites Ltd — Interim / Quarterly Report 2021

Aug 6, 2021

I HINDUSTAN · OMPOSITES LIMITED

HINDUSTAN COMPOSITES LTD.

Peninsula Business Park, Tower A , 8th Floor, Senapati Bapat Marg.Lower Parel,Mumbai - 400 013. Tel.:(91) (22) 6688 0100 • Fax : (91) (22) 6688 0105 E-mail : hcl@hindcompo.com Website : www.hindcompo.com CIN No. L29120MH1964PLC012955

6th August, 2021

To The Manager The Manager - Listing Department of Corporate Services National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5 th Floor, 'G' Block Phiroze Jeejeebhoy Towers, Bandra Kurla Complex Dalal Street, Mumbai- 400 001 Bandra (East), Mumbai - 400 051 Scrip Code: 509635 SYMBOL: HINDCOMPOS

Dear Sir/ Madam,

Sub: Outcome of Board Meeting held on 6th August, 2021

Pursuant to the provisions of Regulation 30 and 33 (3) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that the Board of Directors of the Company at its meeting held today i.e. 6th August, 2021, inter alia, considered and approved the Un-audited Standalone and Consolidated Financial Results of the Company for the quarter ended 30 th June, 2021.

A copy of Un-audited Standalone and Consolidated Financial Results of the Company for the quarter ended 30th June, 2021 along with the Limited Review Reports received from the Statutory Auditors of the Company on the said results are enclosed herewith for your records.

The meeting of the Board of Directors commenced at 3.30 p.m. and conclude at 5.30 p.m.

Kindly take the same on your record.

Thanking you,

Yours faithfully,

For Hindustan Composites Limited � Vikram Soni

Company Secretary & Compliance Officer Membership No. A36705

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Encl: As stated above

Regional Sales Offices

East : 29, Ganesh Chandra Avenue, Sando House.Room No. 207, 2nd Floor, Kolkata • 700 013 • Tel 91 - 33- 2236078 • Fax : 91-33-22360788 West Peninsula Business Parl<, 'A' Tower. 8th Floor, Senapati Bapat Marg, Lower Parel. Mumbai - 400 013 lndia•Tel: 91-22-6688 0100 •Fax: 91-22- 6688 0105 North: 401, Rohit House, 3 -Tolstoy Marg, New Delhi - 110 001 •Tel: 91-11-2331 3845•Fax: 91-11-23313846 South : New No. 931. Old No. 418. Ramaniyam Citadel Apartment. 2nd Floor. Poonamallee High Road,Arumbakkam. Chennai - 600 106 Tel : 91- 44-2363 3722

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HINDUSTAN COMPOSITES LIMITED

Regd.Otrice: A Tower,Rth floor, Peninsula Business Pack,

Senapati Ba pat Marg,Lower Pa rel, Mumbai - 400013 Tel: 022-66880100, Fax:022-66880105

visit us at www.hindcompo.com CJN No. L29120MH1964PLC012955

Statement of Unaudited Standalone Financial Results for the quarter ended 30◄th June, 2021

	Statement of Unaudited Standalone Financial Results for the	quarter ended 30◄th June, 2021	quarter ended 30◄th June, 2021	quarter ended 30◄th June, 2021	quarter ended 30◄th June, 2021
Sr. No.	Pariculars	(Rs.In Lakhs,exceptper share data)
		Three Months Three Months Ended Ended 30-Jun-21 31-Mar-21 (Unaudited) (Audited)•		Three Months Year Ended Ended 30-Jun-20 31-Mar-21 (Unaudited) (Audited)
1 2 3 4 5 6 7 8	INCOME a) Revenue from operations b) Other Income Total Income Expense& a) Cost ot materials consumed b) Changes in Inventories of finished goods and work•m-progress c) Employee benefits expense d) Finance Costs e) Depreciation and amortization expense I) Other Expenses Total Expenses ProfitI(Loss) before Tax (1-2) Tax Expenses Current tax Deferred tax Net Profit for the Period (3-4) Other Comprehensive Income (OCI) a) Items that wlll not be reclassified to profit or loss b) Income tax relating to items that will not be reclassified to profit or loss c) Items that wlll be reclassified to profit or toss d) Income tax relating to items that will be reclassified to profit or loss Other Comprehensive Income Total Comprehensive Income after Tax (5+6) Paid-up Equity Share Capital (Face Value of Rs. 5 per share) Other Equity Earnings per Share (Basis and Diluted) (Rs.)	4,925 5,829 8		3,052 18,459 9 618
		4,933 5,829		3,061	19,077
		2,468 2,601 (231) 29 886 868 2 4 212 217 1,228 1,542		992 205 692 6 227 702	7,342 185 :,259 20 887 4,905
		4,56� 5,261		2,824	16,598
		368 568		237	2 479
		71	2	28	285
		(50)	18	(26)	95
		347	548	235	2,099
		2,124 (614) 266 **(77) **	1,147 (262) (386) 112	783 (205) 1,148 1334)	3,222 (786) 710 (207)
		1,699	611	1,392	2 939
		2,046	1,159	1,627	5,038
		738 2.35	738 3.71	738 1 59	738 81,169 14,21

Reporting of Segment wise Revenue,Result, Assets and Liabilities as on 30th June, 2021

Sr. No.	Pariculars	(Rs. In Lakhs)	(Rs. In Lakhs)	(Rs. In Lakhs)	(Rs. In Lakhs)
		Three Months Ended ,O-Jun-21 (Unaudited)	Three Months Three Months Ended Ended 31-Mar-21 30-Jun-20 (Audited)• (Unaudited)		Year Ended 31-Mar-21 !Audited)
1 2 3	Segment Revenue - Compcs1te Products - Investment	4,120 805	4,906 2,319 923 733		15,007 3,452
	Total Income	4,925	5,829 3,052		18,459
	Segment Results (Profit(+)/ Loss(·) before Tax from each segment) - Composite Products - Investment	51 619	245 (110) 706 596		619 2,533
	Sub Tota	l 670	951 486		3,152
	Less: Unallocable Expenses Less:Finance Cost Add.Other Income	308 2 8	379 4	252 6 9	1,271 20 618
	Profit before Tax	368	568	237	2,479
	a) Segment Assets - Composite Products - Investment - Unallocable	8,526 81,874 3,737	~~.~~ 9,281 78,878 3,703	8.085 75,503 3,774	9,281 78,878 3,703
	Tota	l 94,137	91,862	87,362	91,862
	b) Segment Liabilities - Composite Products - Investment - Unallocable	3,946 5,008 1,229	4,386 4,328 1,241	3,379 4.�8 4,104 4,328 1,086 1,241
	Tota	l 10,133	9,955	8,569 9,955

Notes:

• 1 The above results were reviewed by the Audit Committee and approved by the Board of Directors in their meeting l.eld on 6th August, 7021 and the Statutory Auditors of the Company have carried out 'Limited Review' of the same.

2 In view of the recent surge in Covid-19 cases, many sta�es reintroduced some restnct1ons which hc've tcmrorarily d1sruptad the operations at its manufacturing plants. The Company is in compliance with the various guidehnes issued / relaxations provided by the Government /respective authorities from t,me to time, presenlly v,ork1ng at its normal capacity similar to the pre COVIO levels with adequate precautions for safety and wellbeing of its employees. Tt,e management apart fro,,[.] , considenng the internal and external 1nformahor"I upto the date of approval of these financial results expects to recover the carrying amount of the assets including financial •nvestmenIs The Comp.my wlll continue to closely monitor any matena! changes to future economic conditions.

J The Code on Social Secunty, 2020 ('Code') relating to employee benefits dunng employment and post-employment benefits has been published 1n the Gazette of lr.d1a However, the date on which the Code will come into effect has not Ueen notifi�d. The Company will asse::.s the impact of the Code and recognise tne same when the Code becomes effective.

• 4 • The figures for the Ql1arter ended 31st March 2021 are the balancing figures between audited fi'.)ures in respect of the f1,U financial year 2020. 21 and the year-to-da�e figllfes 1..1p to the third quarter ended 31sl December 2020

5 Previous periods' figures have been rearranged / regrouped wherever considered necessary to conform to the pre�entation of the current pericd. All figures of financial res1..1lts has be•,ln rounded off to nearest lakhs rupees

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Place : Mumbai Dated : 6th August, 2021

Managing Director (DIN Nc.00535670)

+91 (22) 62505600

BAGARIA & co LLP Chartered Accountants

70 l, Stanford, Junction of S. V. Road, & Barfiwola Marg, Andheri (W) Mumbai 400058, INDIA

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Independent Auditor's Review Report On standalone unaudited quarterly financial results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

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To The Board of Directors of Hindustan Composites Limited

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• 1 We have reviewed the accompanying statement of unaudited standalone financial results of Hindustan Composites Limited ('the Company') for the quarter ended June 30, 2021 ("the Statement") attached herewith, being submitted by the Company pursuant to the requirements of

• -- - ----Regulations 33 oFthe�SEBl-{Usting, Obligations -and--Di-sdosure requirernents)--Regulations, 1 2015('Listing regulations').

The statement, which is the responsibility of the Company's Management and approved by the 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 the Companies Act, 2013, and other accounting principles generally accepted in India. Our responsibility is to issue a report on this financial Statement based on our review.

• 2 We conducted our review in accordance with the Standard on Review Engagement (SRE) 2410, "Review of Interim Fin;rncial 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 financial statements are free of material misstatement. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provide less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.

• 3 (a) We draw your attention to the Note 2 of the standalone financial results with regard to management's assessment of realisability of assets including financial Investments due to COVID 19 pandemic outbreak. The management apart from considering the internal and external information upto the date of approval of these standalone financial results, expects to recover the carrying amount of the assets including financial investments. Considering the continuing uncertainties, the management will continue to closely monitor any material changes to future economic conditions and does not anticipate any material financial or operational issues in the short term as well as on a long-term basis.

(b) Attention is drawn to the fact that the figures of the quarter ended March 31, 2021 as reported in these financial results are the balancing figures between audited figures for the full previous financial year and the published year to date figures up to the third quarter of the previous financial year. The figures upto the end of the third quarter of previous financial year had only been reviewed and not subjected to audit.

Our conclusion is not modified in respect of the above matters.

• 4 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 applicable accounting standards 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, read with circular issued from time to time, including the manner in which it is to be disclosed, or that it contains any material misstatement.

Place: Mumbai Date: August 6, 2021

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For Bagaric1���· L�!'_
Chartered Accountants
Fi,m Reg;strat;o� [,']
v;ij;
Partner
Membership No.143503
UDIN: 21143503AAAALQ6606
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OMPOSITES ( LIMITED[HINDUSTAN]

HINDUSTAN COMPOSITES LIMITED

Regd.Office: A Tower,8th Floor, Peninsula Bus,ness Park, Sena pa ti Ba pat Marg,Lower Parel, Mumbai - 400013

Tel: 022-66880100, Fax:022-66880105

vIsIt us at www.hmdcompo.com

CIN No. L29120MH1964PLC012955

Statement of Unaudited Consolidated Financial Results for the quarter ended 30th lune, 2021

Sr. No. Pariculars	(Rs. In Lakhs, except per share data)	(Rs. In Lakhs, except per share data)	(Rs. In Lakhs, except per share data)	(Rs. In Lakhs, except per share data)
	Three Months Ended 30.un-21 !Unaudited)	Three Months Three Month, Ended Ended 31-Mar-21 JO-Jun-20 !Audited!' I Unaudited!		Year Ended 31-Mar-21 !Audited!
1 2 3 4 5 6 7 8 9 10 INCOME a) Revenue from operations b) Other Income Total Income Expanses a) Cost of materials consumed b) Changes in Inventories of finished goods and work-in-progress c) Employee benefits expense d) Finance Costs e) Dpreciation and amor,zahon expense r) Other Expenses Total Expenses Profit before tax and share of joint venture {1-2) Share of (loss) of joint venture # Profit before tax (3+4) Tax Expenses Current tax Deferred tax Net Profit for the Period (5-6) Other Comprehensive Income {OCI) a) Items that w111 not be reclassified to profit or loss b} Income tax relating to items that will not be reclassified to profit or loss c) Items that will be reclassified to profit or loss d) Income taxrelating to items that will be reclassified to profit or loss Other Comprehensive Income Total Comprehensive Income after Tax {7+8) Paid-up Equity Share Capital (Face Value of Rs. 5 per share) Other Equity **Earnings per Share (Basis and Diluted) (Rs.) **	4,925 8	5,829 3,052 9		18,459 618
	4,933	5,829	3,061	19,077
	2,468 (231) 886 2 212 1,228	2,601 29 868 4 217 1,542	992 205 692 6 227 702	7,342 185 3,259 20 887 4,905
	4,565	5,261	2,824 16,598
	368	568	237 2479
		.(10)	(48) (127)
	368	558	189 2,352
	71	2	28	285
	(50)	18	(26)	95
	347	538	187	1,972
	2,124 (614) 266 (77)	1,147 24 (386) 112	783 (205) 1,148 (334)	4,202 (786) 710 (207)
	1,699	897	1,392	3,919
	2,046	1,435	1,579	5,891
	738 2 35	738 3 64	738 1 27	738 80,961 13.35

Reporting of Segment wise Revenue,Result, Assets and Liabilities as on 30th June, 2021

Sr. No.	Particulars	(Rs. In Lakhs)	(Rs. In Lakhs)	(Rs. In Lakhs)	(Rs. In Lakhs)
		Three Months Ended 30-Jun-21 (Unaudited)	Three Months Three Months Ended Ended 31-Mar-21 30-Jun-20 (Audited)' (Unaudited)		Year Ended 31-Mar-21 (Audited)
1 2 3	Segment Revenue - Composite Products - ln¥estment	4,120 805	4,906 2,319 923 733		15,007 3,452
	Total Income	4,925	5,829 3,052		18,459
	Segment Results (Profit(+)/ Loss (·) before Tax from each segment) - Composite Products - Investment	51 619	~~.~~ 245 (110) 70 596		619 2,533
	Sub Tota	l 670	951 486		3,152
	Less; Unallocable Expenses Less: Loss or joint venture less: Finance Cost Add:Other Income	308 379 252 10 48 2 4 6 8 9			1,271 127 20 618
	Profit before Tax	3G8 558 189			2,352
	a) Segment Assets - Composite ProdLcts - Investment - Unallocable	8,494 9,227 8,085 81,874 78,878 74,523 3,737 3,703 3,774			9,227 78,878 3,703
	Tota	l 94,105 91,808 86,382			91,808
	b) Segment liabilities - Composite Products - Investment - Unallocable	4,122 4,540 5,008 4,328 1,229 1,241		3,482 4,104 1,086	4,540 4,328 1,241
	Tota	l 10,359 10,109		8,672	10,109

Notes:

• 1 The above results were reviewed by the Audit Committee and approved by the Board of Directors 1n their meeting held on 6th August. 2021 and the Statutory Auditors of the Company have carried out 'Limited Review of the same.

• # The Company's share of losses in the Joint Venture Company has exceeded its investment value and therefore. in comphance with IND AS 28, the Company has discontinued recognizing its share of further losses in the consolidated results from the quarter ended June 30, 2021

In view of the recent surge in Covid-19 cases, many stales reintroduced some restrictions which have temporanly disrupted the operations at its manufacturing plants. The Company is in compliance with the various guidelines issued I relaxations provided by the Government /respective authont1es from time to time, presenlly working at its normal capacity similar to the pre COVIO levels with adequate precautions for safety and wellbeing of its employees. The management apart from cons1denng the 1nterna1 and external informahon upto the date of approval of these financial results expects to recover the carrying amount of the assets including financial investments The Company will contmue to closely monitor any material changes to future economic conditions.

• 4 The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post•emptoyment benefits has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code and recognise the same when the Code becomes effective.

• The figures for the quarter ended 31st March 2021 are the balancing figures between audited figures in respect of the full financial year 2020 - 21 and the year-to-date figures up to the third quarter ended 31st December 2020.

• 6 Previous periods' figures have been rearranged / regrouped wherever considered necessary to conform to the presentation of the current period. AU figures of financial results has been rounded off to nearest lakhs rupees.

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Place : Mumbai Dated : 6th August, 2021

Managing Director (DIN No.00535670)

+91 (22) 62505600

BAG ARIA & co LLP Chartered Accountants

701, Stanford, Junction of S. V. Rood, & Borfiwolo Marg, Andheri (W) Mumbai 400058, INDIA

-------="-:

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Independent Auditor's Review Report On consolidated unaudited quarterly financial results of the Group Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

To The Board of Directors

Hindustan Composites Limited

1. We have reviewed the accompanying statement of unaudited consolidated financial results of Hindustan Composites Limited ("the Holding Company") and its joint venture, (together referred to as "the Group") for the quarter ended June 30, 2021 ("the Stateme11t") attached herewith,

2. -----1b-we[011] inr1[1] g-su+rbwmi if1'1tt�etAd-rbl\;y�the-Hofd trs - u[a] -fl-He--the requirements of Regulations 3-3,-,o .... f-tt ...... SEBI (Listing, Obligations and Disclosure requirements) Regulations, 2015 ('Listing regulations').

The statement, which is the responsibility of the Holding Company's Management and approved by the Holding Company'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 the Companies Act, 2013, and other accounting principles generally accepted in India. Our responsibility is to issue a report on this financial 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. A review of interim financial information consists of making inquiries, primarily of persons responsibl.e 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 and consequently does not enable us to obtain assurance that we would become aware of alhignificant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

2. We are not required to perform procedures (as there is no significant component which in the aggregate represent at least eighty percent of each of the consolidated revenue, assets and profits) in accordance with the circular issued by the SEBI under Regulation 33(8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.

3. The Statement includes the results of the following entities:

	Name of the Entity Relationship Compo Advics (India) Private Limited Joint Venture in which Holding Company holds 49% stake

With regard to non recognition of losses for the quarter ended June 30, 2021, please refer note no 2 of the attached consolidated financial results.

----­

1. (a) We draw your attention to the Note 3 of the consolidated financial results with regard to management's assessment of realisability of assets including financial Investments due to COVID 19 pandemic outbreak. The management apart from considering the internal and external information upto the date of approval of these consolidated financial results, expects to recover the carrying amount of the assets including financial investments. Considering the continuing uncertainties, the management will continue to closely monitor any material changes to future economic conditions and does not anticipate any material financial or operational issues in the short term as well as on a long-term basis.

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• (b) We did not review the financial statements of the joint venture included in the consolidated financial results (whose losses has exceeded the Group's investments during the quarter ended June 30, 2021), has not been considered in the consolidated financial results in view of what is stated in note no 2 to the results. These financial statements have been reviewed '[1] S'

• [i] shed by the Hokoog p..,an""l"- -"·

• management and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of the joint venture, is based solely on the report of the other auditor and our opinion is based solely on the report of such other auditor.

• (c) Attention is drawn to the fact that the figures of the quarter ended March 31, 2021 as reported in these financial results are the balancing figures between audited figures for the full previous financial year and the published year to date figures up to the third quarter of the previous financial year. The figures upto the end of the third quarter of previous financial year had only been reviewed and not subjected to audit.

Our conclusion on the Statement is not modified in respect of the above matters.

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.

Place: Mumbai Date: August 6, 2021

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For Bagaria and Co. LLP
Chartered Accountants
F �i� [� ] 1134 100019
� �::
Vinay Somani · · �
Partner
Membership No. 143503
UDIN : 21143503AAAALR1053
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