Hindustan Composites Ltd — Interim / Quarterly Report 2021

Feb 9, 2021

HINDUSTAN COMPOSITES LTD.

HINDUSTAN OMPOSITES LIMITED

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

9 th February, 2021

To The Manager Department of Corporate Services BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400 001 Scrip Code: 50%35

The Manager - Listing National Stock Exchange of India Limited Exchange Plaza, 5 th Floor, 'G' Block Bandra Kurla Complex Bandra (East), Mumbai - 400 051 SYMBOL: HINDCOMPOS

Dear Sir/Madam,

Sub: Outcome of Board Meeting held on 9 th February, 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. 9th February, 2021, inter a/ia, considered the following matters:

• 1) Approved the Un-audited Standalone and Consolidated Financial Results of the Company for the quarter and nine months ended 31st December, 2020;

• 2) Re-appointed Iv1/s. M Baldeva Associates, Company Secretaries, Thane as Secretarial Auditors of the Company for conducting the secretarial audit for the financial year 2020-21 under Section 204(1) of the Companies Act, 2013 and issuing secretarial report as required under Regulation 24A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

A copy of Un-audited Standalone and Consolidated Financial Results of the Company for the quarter and nine months ended 31st December, 2020 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 3.00 p.m. and conclude at 05.30 p.m.

Kindly take the same on your record.

Thanking you,

Yours faithfully,

�omposites Llmited Vikram Soni Company Secretary & Compliance Officer Membership No. A36705

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Encl: As stated above

Regional Sales Offices

South West: B-11. Paragon Condominium, 1st Floor, P. B. Marg, Worti, Mumbai - 400 013. • Tel. 91-22-2495 1355 •Fax: 91-22-2495 1365 East: 29, Ganesh Chandra Avenue, Bando House, Room No. 207. 2nd Floor. Kolkata - 700 013 • Tel.: 91-33-2236078 • Fax: 91-33-22360788 New No. 931, Old No. 478. Ramaniyam Citadel Apartment, 2nd Floor, Poonamallee High Road. Arumbakkam, Chennai - 600 106. • Tel 91-44-2363 3722 North: 401, Rohit House, 3 - Tolstoy Marg, New Delhi - 110 001 • Tel.: 91-11-2331 3845 •Fax: 91-11-23313846

HINDUSTAN ,c; � ', OMPOSITES � ll!.\ITED

HINDUSTAN COMPOSITES LIMITED

Regd.Office: A Tower,Bth Floor, Peninsula Business Park, Senapati Bapat Marg,Lower Parel, Mumbai • 400013

Tel: 022-66880100, Fax:022·66880105 visit us at www.hindcompo.com CIN No. L29120MH1964PLC012955

Statement of Unaudited Standalone Financial Results for the quarter and nine months ended 31st December, 2020

Sr. No.	Parcular				**( **	**( **	Rs. In Lakhs, except per share data)	Rs. In Lakhs, except per share data)
		Thr Months Ended 31-Dc-20 (Unaudited)	Thre Months Ended 30-Sep-20 (Unaudited)	Three Months Ended 31-Dc-19 !Unaudited)		Nin Months Ended 31-Dc-20 (Unaudited)	Nin Months Year Ended Ended 31-Dc-19 31-Mar-20 !Unaudited! I Audited)
1 INCOME a) Revenue from operations b) Other Income Total Income 2 Expnas a) Cost of materals consumed b) Changes in Inventories of finished goods and wor-in-progress c) Employee bnefits expense d) Finance Costs e) Dprecation and amorization expense t) Oter Expenses Total Expnses 3 Profit/ (LOH) b "' Tax (1-2) 4 Tax Expnses Curnt tax Oelered tax 5 Net Profrt lor th Period (3-4) 6 Or Comp,henslve Income (OCI) a) Items tat wll not be reclassified to profit or k>ss b) Incme tax relatng to items that will not be reclassified to profit or loss c) Items tat wll b recassified to profrt or loss d) Ince ta relating to rtems that will be recassified to prof rt or loss Or Comprhensive Incom Total Comp,ehen1ive Income aler Tax (5+6) 7 Paid-up Equity Share Capital (Face Value ol Rs. 5 pr share) 8 Or Equity **Earings per Share (Basis and Diluted) (Rs.) **		5,127 1	4,451 608	4,376 9		12,630 618	13,648 17,805 42 49
		5 128	5059	4 385		13 248	13 690 17 854
		2,037 26 877 6 218 1 39	1,712 (75) 822 4 225 1 271	1,655 30 854 4 238 1 325		4.741 156 2,391 16 670 **3 33 **	5,58 7,338 (48) (135) 2,570 3,355 16 22 707 950 4 050 5 293
		4 55	3 959	**4 106 **		11 337	12 881 16 823
		574	1 10	279		1 911	809 1 031
		123	132	41		283	9 126
		167	170	*1101*		77	1215** 1298**
		518	798	339		1 551	928 **1 203 **
		1,711 (475) 212 *161*	(419) 15 (264) 76	658 (15) (191) 5		2,075 (524) 1,09 *1319*	893 (881) (191) 331 523 823 1152** 1240**
		1 387	1451)	367		2328	1073	33
		1 95	**37 **	70		3,879	2 01	1 23
		738 3.51	738 738 5.40 2.30			738 10.50	738 6.28	738 76,427 8.15

Reporting of Segment wise Revenue,Result, Assets and Liabilities as on 31st December, 2020

Sr. No.	Pariculars		(Rs. In Lakhs)	(Rs. In Lakhs)	(Rs. In Lakhs)	(Rs. In Lakhs)	(Rs. In Lakhs)	(Rs. In Lakhs)
			Three Months Ended 31-Dc-20 (Unaudited)	Three Months Ended 30-Sep-20 (Unaudited)	Three Months Ended 31-0c-19 (Unaudited)	Nin Months Ended 31-Doc-20 (Unaudited)	Nine Months Ended 31-0ec-19 (Unaudited)	Year Ended 31-Mar-20 (Audited I
1 2 3	Sgmnt Revenu - Composrte Proucts - Investment		4,203 924	3,579 872	3,54 832	10,101 2 529	11,097 2 551	14,489 3 316
		Total Income	5 127	4 451	4 376	12 630	13 648	**17 805 **
	Sgmn Resuls (Profit(+)/ Loss (·) bfore Tax from eac segment) • Compsrte Proucts - Investment		275 628	209 603	38 586	374 1 827	103 1 834	133 2 294
		Sub Tota	l **903 **	812	624	2 201	1 937	2 427
	Less: Unallb Expnses Less: Finnc Cost Add:Othr Inco		324 6 1	316 4 608	350 4 9	892 16 618	1,15 16 42	1,423 22 49
		Profrt bfore Tax	574	1 10	279	1 911	**809 **	1 031
	a)SgmnAHs • Compsrte Proucts - Investment - Unallocable		8,372 77,922 3 659	8,1-6 76,107 3 644	9,028 74,359 **361 **	8,372 77,922 3 659	9.028 74,359 **361 **	9,249 73,049 3 827
		Tota	l 89 953	87 897	87 048	89 953	87 048	86 125
	b) Sgmnt Liabilitis - Compsite Products - Investment - Unallocble		3.653 3.699 4,311 3,809 1 241 1 546		3,94 4,0 1 091	3.653 4,311 1 241	3,9 4,0 1 091	4,287 3,582 1 091
		Tota	l 9 205 9054		9 119 **9 205 **		9 119	8 960

Notes:

• 1 The above results were reviewed by the Audit Committee and approved by the Board of Directors in their meeting held on 9th February, 2021 and the Statutory Auditors of the Company have carried out a 'Limited Review' of the same.

• 2 As a resutt of the nationwide lock.down imposed by the Government of India, the operations of the Company were temporarily disrupted at its manufacturing facilities impacting production and dispatches during the lock.down phases. The Company in compliance with the various guidelines issued I relaxations provided by the Government /respective authorities from lime to lime, presently working at its normal capacity similar to the pre COVID levels with adequate precautions for safety and wellbeing of its employees. The management apart from considering the internal and external infonnation upto the date of approval of these standalone financial results expects to recover the carrying amount of the assets induding financial investments. The Company will continue to dos�y monitor any material changes to future economic conditions.

• 3 The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post-employment 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.

• 4 "Other income" for the nine months period ended 31st Oecember, 2020 indudes Rs. 606 lakhs being profit on sale of a commercial premise.

s PrevtOUs periods' figures have been rearranged / regrouped wherever considered necessary to conform to the presentation of the current period. All figures of financial result has been rounded off to nearest lakhs rupees.

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Place : Mumbai Dated : 91h February, 2021

Managing Director (DIN No.00535670)

701, Stanford, BAGARIA & co LLP Junction of S. V. Road, & Barfiwala Marg, Andheri (W) Chartered Accountants Mumbai 400058, INDIA

+91 (22) 62505600

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

To The Board of Directors of

Hindustan Composites Limited

• 1 We have reviewed the accompanying statement of unaudited standalone financial results of Hindustan Composites Limited ('the Company') for the quarter ended December 31, 2020 and year to date results for the period from April 01, 2020 to December 31, 2020 ("the Statement") attached herewith, being submitted by the Company pursuant to the requirements of Regulations 33 of the SEBI (Listing, Obligations and Disclosure requirements) Regulations, 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 Co

mpanies 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 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. 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.

2. 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.

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

1. 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

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(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: February 9, 2021

For Bagaria and Co. LLP Chartered Accountants Firm Registration No. -113447W/ W-100019 �i- Vinay Somani Partner Membership No. 14350 UDIN : 21143503A D

HI ND UST AN /-p ; \ OMPOSITES ',_J L I M I T E 0

HINDUSTAN COMPOSITES LIMITED

Regd.Office: A Tower,8th Floor, Peninsula Business Park, Senapatl Bapat Marg,Lower Parel, Mumbai - 400013 Tel: 022-66880100, Fax:022-66880105 visit us at www .hlndcompo.com CIN No. L29120MH1964PLC012955

Statement of Unaudited Consolidated Financial Results for the quarter and nine months ended 31st December, 2020

Sr. No. 1 2 3 4 5 6 7 8 9 10	Palculr INCOME a) Revenue from oprations b) Other Incme Total Income ExpnNa a) Cost of materials consumed b) Changes in Inventories of finished gods and wor-in-progress c) Employee benefits expense d) Financ Costs e) Dpreation and amorization expense n Oher Expenses Toal ExpnHs Profit bfoN tx and 1haN of Joint vantuN (1-2) Share of (kss) of joint venture Prt b . tax Tax ExpnNa curent tax Oferred tax Nt Profi for the Period (5�) Or CompNhnIiva Incom (OCI) a) Items that wll not be reclassified to profit or loss b) Income tax relaUng to items that will not be reclassified to proft or loss c) Items that wll be reclassifed to profit or loss d) Incme tax relating to items that wll be recassified to profit or loss Or Comprhnsive Income Totl Comprohnsiva Income afor Tax (7+8) Paid-up Equity Share Capital (Face Value of Rs. 5 per share) Or Equi Eamings per Share (Basis and Oiluted) (Rs.)	(	(	(	(	Rs. In Lakha, except per share data)	Rs. In Lakha, except per share data)	Rs. In Lakha, except per share data)
		Thre Months Ended 31-0c-20 !Unaudited I 5,127 1	ThrH Months Endd 30-Sep-20 !Unaudited I 4,451 608	Thr Months Ended 31-0c-19 !Unaudited** 4,376 9**	Nine Months Ended 31-c-20 fUnauditedl 12,630 618	Nine Months Ended 31-0c-11 IUnauditedl 13,6 42		Year Ended 31-Mar-20 I Audited) 17,605 49
		5 128	5 059	4 385	13 248	13 690 5,586 (48) 2,570 16 707 4 050		17 854 7,338 (135) 3,355 22 950 5 293
		2,037 26 877 6 218 1 39	1,712 (75) 822 4 225 1 271	1,655 30 854 4 238 1 325	4,741 15 2,391 16 670 **3 33 **
		455	3 959	4 10	11 337	12 881		16 823
		574	1 100	279	1 911	809		1 031
		1311	1381	_133_	11171	11131		~~(~~**151 **
		543	1 062	246	1 794	69	6	875
		123	132	41	283	9		126
		1671	170	1101	77	12151		(2981
		487	760	306	1 434	815		1 047
		2,201 (618) 212 (611	71 13 (264) 76	65 (15) (191) 5	3,055 (810) 1,09 13191	893 (191) 523 11521		(881) 331 823 12401
		1 734	11041	367	3 022	1 073		33
		2 221	65	673	4 45	1 888		1 080
		738 3.30	738 5.15	738 2.07	738 738 9.71 5.52			738 75,3 7.09

Reporting of Segment wise Revenue,Result, Assets and Llabllltles as on 31st December, 2020

Sr. No.	Paricular	(Rs. In Lakho)	(Rs. In Lakho)	(Rs. In Lakho)	(Rs. In Lakho)	(Rs. In Lakho)	(Rs. In Lakho)
		ThrN Months Ended 31-0c-20 !Unaudited I	Thr Month• Ended 30-Sep-20 *(Unaudited*	ThN Month& Ended 31-0c-19 IUnauditodl	Nine Months Ended 31-c-20 fUnauditedl	Nine Month• Ended 31-c-19 *fUnaudited*	Year Ended 31-Mar-20 !Audited I
1 2 3	Sgmnt Revnu - Composite Products - Investment	4,203 924	3,579 872	3,54 832	10,101 2 529	11,097 2 551	14,489 3 316
	Total Income	5 127	4 451	4 376	12 630	13 6	17 805
	Sgmn RIul (Proft(+)/ Loss (-) before Tax from ea segment) - Compsite Products - Investment	275 628	209 603	38 58	374 1 827	103 1 834	133 2 294
	**Sub Tota **	l 903	812	624	2 201	1 937	2 427
	Less: Unalle Expnses Less: Loss of jont venture Less: Financ Cost Add:Other Incme	324 31 6 1	316 38 4 608	350 33 4 9	892 117 16 618	1,15 113 16 42	1,423 15 22 49
	Profit bfore Tax	543	1 062	246	1 794	696	875
	a) SgmntAIHa - Compsite Producs - Investment - Unallocble	8,339 76,92 3 659	8,114 75,617 3 644	9,028 73,379 **361 **	8,339 76,942 3 659	9,028 73,379 **3 61 **	9,224 72,09 3 827
	Tota	l 88 940	87 375	**86 068 **	88 940	86 068 85 120
	b) Sgm Libli1 - Compsite Products - Investment - Unalloable	3,817 3,83 4,311 3,951 1 241 1 546		3,9 4,0 1 091	3,817 4,311 1 241	3,94 4,343 4,0 3,582 101 1 091
	Tota	l 9 369 9 331		9 119	9 369	9 119 9 016

Notes:

• 1 The above results were reviewed by the Audit Committee and approved by the Board of Directors in their meeting held on 9th February, 2021 and the Statutory Auditors of the Company have carried out a 'limited Review' of the same.

• 2 As a resutt of the nationwide lock.down imposed by the Government of India, the operations of the Company were temporarily disrupted at its manufacturing facilities impacting production and dispatches during the k>ckdown phases. The Company in compliance with the various guidelines issued I relaxattons provided by the Government /respective authorities from time to time, presently wortung at its normal capacity similar to the pre COVID levels with adequate precautions for safety and wellbeing of its employees. The management apart from considering the internal and extemm infonnation upto the date of approval of these consolidated financial resutts expects to recover the carrying amount of the assets including financial investments. The Company will continue to closely monitor any material changes to future economic conditions.

• 3 The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post.employment 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.

• 4 •0ther income" for the nine months period ended 31st December, 2020 includes Rs. 606 lakhs being profit on sale of■ commercial premise.

• 5 Previous periods' ftgures have be n rearranged / regrouped wherever considered necessary to conform to the presentation of the current period. All figures of financial result has been rounded off to nearest lakhs rupees.

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Place : Mumbai Dated : tlh February, 2021

BAGARIA & co LLP Chartered Accountants

+91 (22) 62505600

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

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

• l. 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 December 31, 2020 and year to date results for the period from April 01, 2020 to December 31, 2020 ("the Statement") attached herewith, being submitted by the Holding Company pursuant to the requirements of Regulations 33 of the 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 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 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. 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.

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

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 holds49% stake

1. We draw your attention to the Note 2 of the consolidated financial results with regard to management's assessment of realisabi · luding 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.

1. We did not review the financial statements of the joint venture included in the consolidated financial results; whose financial statements reflect Group's share of net loss of Rs. 31 lakhs and Rs. 117 lakhs for the quarter ended December 31, 2020 and for the period from April 01, 2020 to December 31, 2020 respectively, considered in the statement. These financial statements have been reviewed by other auditor whose review report has been furnished to us by the Holding Company's 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.

Our conclusion on the Statement is not modified in respect of the matters referred to in para 5 and 6 above.

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: February 9, 2021

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For Bagaria and Co. LLP
Chartered Accountants
Firm Registration No. -113447W/ W-100019
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UDIN : 21143503AAAADLS281 ....,�,· __....-
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