Indo Count Industries Ltd — Interim / Quarterly Report 2021

Aug 3, 2021

August 3, 2021

National Stock Exchange of India ltd.	BSElimited
Listing Department	Department of Corporate Services
Exchange Plaza,	Floor 25, Phiroze Jeejeebhoy Towers,
Sandra Kurla Complex, Sandra (East),	Dalal Street,
- Mumbaj - 400 051	Mumbaj - 400 001
Company Symbol: ICll	Scrip Code No.: 521016

Dear Sir/Madam,

Subject: Outcome of Soard Meeting held on August 3, 2021 - Unaudited Standalone & Consolidated Financial Results of the Company for the Quarter ended June 30, 2021

We wish to inform you that at the Board Meeting held today i.e.on August 3, 2021 the Soard of Directors of the Company approved the Unaudited Standalone & Consolidated Financial Results of the Company for the quarter ended June 30, 202l.

Pursuant to Regulation 30 and 33 of SESI(Listing Obligations and Disclosure Requirements), 2015, we are enclosing herewith the following:

• 1. Unaudited Standalone Financial Results of the Company for the quarter ended June 30, 2021;
• 1. Unaudited Consolidated Financial Results of the Company for the quarter ended June 30, 2021;
• 1. Limited Review Report issued by M/s. Suresh Kumar Mittal & Co., Statutory Auditors of the Company on Unaudited Standalone & Consolidated Financial Results for the quarter ended June 30, 2021.

The meeting of the Board commenced at 12.00 noon and concluded at 1.45 p.m.

Kindly take note of the same.

Thanking you,

Yours faithfully, For Indo Count Industries Umited

~

Amruta Avasare Company Secretary & Compliance Officer Membership No.: ACS 18844

End.; Ala

Indo Count Industries Ltd

Head OffICe 301, Arcad:a. 3rd Floor. Nanman Pomt, Mumbal- 400 021, Maharashtra.lndIa. T. 022 43419500. F 022 2282 3098 Ma!1<etlll9OffICe Oostdmpena.2nd 1Ioof. Manpada Ghodbunder Road. Thane (w) - 400 607. Maharashtra,lndl8:T 022 4151 1800.F 022 2172 0121 Horne Textile O.vtS!OnT3. Kagal- Hatlcanang~e FIVe S1ar.MIDC Ind Area, Kolhapur - 416216. Maharashlnl 1nd18,t 02316627900. F: 0231 6627979 Sptnmng DiviSIOn. 01. MIDC. Gokul Shlrgaon. Kolhapur - 416234, Maharashlra. IncltB.T 0231 268 7400. F: 0231 2672161 Regd Ofilce OffICe No. I, PIoI No 266. VIllage Alte, KumbhoJRoad.Taluka Hatkanangale. Oisl. Kolhapur - 416109. Maharashtra. Ind18,T' 0230 2463100 12461929 CIN L72200PN1988PLC068912. E. Info@lndocounlcom. w www.lndocounlcom

INDO COUNT INDUSTRIES LIMITED

$H$

CIN No.: L72200PN1988PLC068972

Regd. Off. - Office No. 1, Plot No. 266, Village Alte, Kumbhoj Road, Taluka Hatkanangale, Dist. Kolhapur - 416 109. E-mail icilinvestors@indocount.com; website www.indocount.com

STATEMENT OF UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2021

Part - I		(Rs. in Crore except EPS)
Sr. No.	Particulars	Quarter Ended			Year Ended
		30-06-2021	31-03-2021	30-06-2020	31-03-2021
		Unaudited	Audited	Unaudited	Audited
$\mathbb{E}$	Income
	Revenue from Operations	738.37	703.68	319.03	2,514.75
	Other Operating Income	45.37	14.63	4.04	37.74
	Total Income	783.74	718.31	323.07	2,552.49
$\overline{2}$	Expenses
	Cost of Materials Consumed	361.40	430.00	195.28	1.332.80
	Purchases of Stock-in-Trade	29.18	39.79	3.92	73.15
	Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade	(27.08)	(108.83)	(38.30)	(114.62)
	Employee Benefits Expense	43.16	48.08	29.95	145.28
	Finance Costs	10.70	10.52	4.95	26.93
	Depreciation	9.36	9.77	10.05	40.31
	Other Expenses	202.20	198.22	95.61	696.06
	Total Expenses	628.92	627.55	301.46	2,199.91
$\overline{3}$	Profit before Exceptional Items and Tax (1-2)	154.82	90.76	21.61	352.58
$\overline{4}$	Exceptional Items
5	Profit before Tax (3-4)	154.82	90.76	21.61	352.58
6	Tax Expenses
	Current Tax	40.86	24.07	6.15	88.53
	Deferred Tax	(2.05)	2.68	(0.61)	3.79
	Total Tax Expenses	38.81	26.75	5.54	92.32
7	Net Profit for the period (5-6)	116.01	64.01	16.07	260.26
8	Other Comprehensive Income (after tax)
	a) Items that will not be reclassified to Profit or Loss	0.16	1.05	(0.15)	0.59
	b) Items that will be reclassified to Profit or Loss	(12.12)	0.07	19.48	61.20
	Total Other Comprehensive Income (after tax)	(11.96)	1.12	19.33	61.79
9	Total Comprehensive Income (7+8)	104.05	65.13	35.40	322.05
10	Paid up Equity Share Capital (of Rs. 2 each)	39.48	39.48	39.48	39.48
11	Other Equity				1,234.90
12	Earning Per Share of Rs. 2 each (not annualised for the quarters):
	a) Basic	5.88	3.24	0.81	13.18
	b) Diluted	5.88	3.24	0.81	13.18

ndust

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0 3 AUG 2021

Notes:

• The above results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on August 3. 2021. I h..: Statutory Auditors have carried out a Limited Review of the above financial results.
• 2 The Company has been taking steps, proactively, to protect the health of employees and the working environment from the spread of ('(\ ill-II) II,., Company's operations and revenue during the Quarter were marginally impacted due to the pandemic. The Company has assessed, and i~ continuously reviewing. its liquidity, future eash flow projections and the probability of occurrence of the forecasted transactions underlying 111..: hedges based on orders in band and current indicators of future economic conditions. The financial results for QI FY 22 takes into considcrarion such assessment of the possible effects of the Covid 19 and the recoverabi lity of the carrying value of its assets. However. the impact of pandeuuc in the subsequent period may bc different from the estimations used at the time of finalising these financial results.
• 3 Pursuant to the approval granted by the Union Cabinet on July 14, 202 I for continuation of Rebate of State and Central Taxes and Lev ics (RoSCTL) with the same rates as notified by Ministry of Textiles vide notification dated March 8,2019 on exports of Apparel/Garments and \Iad c ups, the Company has recognised the expon incentives of Rs. 89.59 Crores during the Quarter ended June 30. 2021. out of which R!' 49.99 Crnl'c:-, pertains to the eligible export sales for the period from January I,2021 to March 31. 2021.
• 4 Pursuant to the scheme of amalgamation of Pranavaditya Spinning Mills Limited, subsidiary of the Company with the Company approved h~ the Board and No-objection received from BSE Limited, NSE and SEBI for the scheme, the application has been filed for said amalgamation \ ith Hon'ble NCLT during the quarter ended 30th June 2021. The appointed date for the amalgamation is 1st October 2020 and the scheme \ III h..: effecti ve upon filing of order of National Company Law Tribunal (NCLT) approving the scheme with Registrar of Companies.
• 5 The figures for the corresponding previous period have been regrouped/reclassified wherever necessary. to make them comparable.
• 6 The Company mainly operates only in one segment namely "Textiles" and hence segment details are not required to be published.
• 7 In line with the requirements of Regulation 47(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 20 IS, tile results arc available on the Stock Exchanges website at (www.bseindia.com and www.nseindia.com)and on the Company's website at www.indocoum.com

For and on behalf of the Board of Directors

Anil Kumar .Jnin Executive Chuirmun I)IN' ()()OX610(,

Place: Mumbai Date: August 3, 2021

INDO COUNT INDUSTRIES LIMITED

卐

CIN No.: L72200PN1988PLC068972

Regd. Off. - Office No. 1, Plot No. 266, Village Alte, Kumbhoj Road, Taluka Hatkanangale, Dist. Kolhapur - 416 109.

STATEMENT OF UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2021

$Part - 1$	(Rs. in Crore except EPS)
Sr. No.	Particulars	Quarter Ended			Year Ended
		30-06-2021	31-03-2021	30-06-2020	31-03-2021
		Unaudited	Audited	Unaudited	Audited
$\mathbf{1}$	Income
	Revenue from Operations	713.97	690.51	331.75	2,519.19
	Other Operating Income	45.25	14.24	4.22	37.83
	Total Income	759.22	704.75	335.97	2,557.02
$\overline{2}$	Expenses
	Cost of Materials Consumed	361.40	417.46	196.58	1,334.38
	Purchases of Stock-in-Trade	29.23	42.38	0.05	70.71
	Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade	(67.44)	(117.61)	(32.01)	(135.25)
	Employee Benefits Expense	46.87	51.81	33.29	159.04
	Finance Costs	11.70	10.91	5.25	28.08
	Depreciation	9.99	10.47	10.76	43.15
	Other Expenses	211.41	204.75	99.19	713.63
	Total Expenses	603.16	620.17	313.11	2,213.74
3	Profit before Exceptional Items and Tax (1-2)	156.06	84.58	22.86	343.28
$\overline{4}$	Exceptional Items (Refer Note 4)				(3.65)
5	Profit before Tax (3-4)	156.06	84.58	22.86	339.63
6	Tax Expenses
	Current Tax	40.87	24.49	6.24	89.23
	Deferred Tax	(2.10)	2.33	(1.08)	1.27
	Total Tax Expenses	38.77	26.82	5.16	90.50
7	Net Profit for the period (5-6)	117.29	57.76	17.70	249.13
8	Other Comprehensive Income (after tax)
	a) Items that will not be reclassified to Profit or Loss	0.17	1.36	(0.16)	0.89
	b) Items that will be reclassified to Profit or Loss	(14.90)	(1.01)	19.03	59.27
	Total Other Comprehensive Income (after tax)	(14.73)	0.35	18.87	60.16
9	Total Comprehensive Income (7+8)	102.56	58.11	36.57	309.29
10 1	Net Profit attributable to:
	- Owners	117.36	57.88	18.00	250.63
	- Non-controlling interests	(0.07)	(0.12)	(0.30)	(1.50)
11	Other Comprehensive Income attributable to:
	- Owners	(14.73)	0.27	18.88	60.09
	- Non-controlling interests	0.00	0.08	(0.01)	0.07
12	Total Comprehensive Income attributable to:
	- Owners	102.63	58.15	36.88	310.72
	- Non-controlling interests	(0.07)	(0.04)	(0.31)	(1.43)
13	Paid up Equity Share Capital (of Rs. 2 each)	39.48	39.48	39.48	39.48
14	Other Equity				1,245.09
15	Earning Per Share of Rs. 2 each (not annualised for the quarters):
	a) Basic	5.95	2.93	0.91	12.70
	b) Diluted	5.95	2.93	0.91	12.70

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Notes:

• I The above results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting. held on August 3. 2021. The Statutory Auditors have carried out a Limited Review of the above financial results.
• 2 The Group has been taking steps, proactively, to protect the health of employees and the working environment from the spread or em iJ-19 ^I II..: Group's operations and revenue during the Quarter were marginally impacted due to the pandemic. The Group has assessed. and is conunuously reviewing, its liquidity, future cash flow projections and the probability of occurrence of the forecasted transactions underlying the hcdge-, h;N'd ¹¹¹¹ orders in hand and current indicators offuture economic conditions. The financial results for QI FY 22 takes into consideration such <I:-:;':"I11Clllol the possible effects of the Covid 19 and the recoverability of the carrying value of its assets. However, the impact of pandemic in the subsequent period may be different from the estimations used at the time of finalising these financial results.
• 3 Pursuant to the approval granted by the Union Cabinet on July 14,2021 for continuation of Rebate of State and Central Taxes and Levies (RoSCTL) with the same rates as notified by Ministry of Textiles vide notification dated March 8. 2019 on exports of Apparel/Garments and Made ups. the Group has recognised the export incentives of Rs. 89.59 Crores during the Quarter ended June 30. 2021, out of IIhich Rs 49.9<.)t.('()I'\;, pertains to the eligible export sales for the period from January I.2021 to March 31. 2021.
• 4 Exceptional Item for the Year ended March 31. 2021 represents the expenditure incurred on account of VRSlSeparation Scheme approved h~ the Board of an Indian Subsidiary on 15th July 2020.
• 5 Pursuant to the scheme of amalgamation of Pranavaditya Spinning Mills Limited, subsidiary of the Compan) with the Holding Company approved by the Board and No-objection received from BSE Limited, NSE and SEBI for the scheme, the application has been filed for said amalgumauon with Hon'ble NCLT during the quarter ended 30th June 2021. The appointed date for the amalgamation is I st October 2020 and the schciuc IIIII he effective upon filing of order of National Company Law Tribunal (NCLT) approving the scheme with Registrar of Companies.
• 6 The figures for the corresponding previous period have been regrouped/reclassified wherever necessary. to make them comparable.
• 7 The Group mainly operates only in one segment namely "Textiles" and hence segment details are not required to be published.
• 8 in line with the requirements of Regulation 47(2) of the SEBl (Listing Obligations and Disclosure Requirements) Regulations. 2015. the rc-ult- .II''' available on the Stock Exchanges website at (www.bseindia.com and www.nseindia.com) and on the Company's website at \ \ II indocount ~""1

For lind on behalf of the Board of OiI'CCI(lI'~

DIN (}OO1{(lIO(,

Place: Mumbai Date: August 3, 2021

60, 1st Floor, Pocket H-3, Sector-18, Rohini, DELHI- 110085. Mobile: 9871411946 E-mail: sureshkmitlal@gmail.com

Auditor's Review Report on Quarterly Financial Results and Year to Date Results of the Company Pursuant to the Regulation 33 of the SEBI(Listing Obligations and Disclosure Requirements) Regulations, 2015

To The Boardof Directors of Indo Count Industries Limited

• 1. We have reviewed the accompanying statement of unaudited standalone financial results of Indo Count Industries Limited for the period ended 30th June 2021 attached herewith, being submitted by the company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 asamended ('the Regulation').
• 1. The preparation of the statement in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, (Ind AS 34) "Interim Financial Reporting" prescribed under Section 133 of the Companies Act, 2013, as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India, is the responsibility of the Company's Management and hasbeen approved by the Board of Directors of the company. Our responsibility is to issue a report on these financial statements basedon 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. This standard requires that we plan and perform the review to obtain moderate assuranceasto 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 provides less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.
• 1. Based on our review conducted as above, nothing has come to our attention that causesus 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 including the manner in which it is to be disclosed, or that it contains any material misstatement.
• 1. The Statement includes the results for the quarter ended March 31, 2021 being the balancing figure between the audited figures in respect of the full financial year ended March 31,2021 and the published unaudited year-to-date figures up to the third quarter of that financial year, which were subjected to a limited review by us,as required under the listing Regulations.

For Suresh Kumar Mittal & Co Chartered Accountants Firm Registration No. S00063N

~.

(Ankur BagJa) PARTNER Membership Number: 521915

Place:New Delhi Date:3,dAugust,2021 UDIN:'2-'S,,\~ lS A"{\f\"9TB1..Sj SURESH KUMAR MITTAL & CO. CHARTERED ACCOUNTANTS

60, 1st Floor, Pocket H-3, Sector-18, Rohini, DElHI- 110085. Mobile: 9871411946 E-mail: sureshkmittal@gmail.com

Independent Auditor's Review Report on Consolidated Unaudited. Quarterly and Year to Date 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 Indo Count Industries Limited

• 1. We have reviewed the accompanying Statement of Consolidated Unaudited Financial Results of Indo Count Industries Limited ("the Parent") and its subsidiaries (the Parent and its subsidiaries together referred to as "the Group"), for the quarter ended 30th June 2021 attached herewith, being submitted by the company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended ('the Regulation').
• 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 Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement basedon 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.

We also performed procedures in accordance with the circular issued by the SEBIunder Regulation 33 (8) of the SEBI(Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, to the extent applicable.

• 1. The Statement includes the results of the following entities:
• (i) Indo Count Industries Limited (Holding Company)
• (ii) Pranavaditya Spinning Mills Limited (Subsidiary)
• (iii) Indo Count Retail Ventures Private Limited (Wholly Owned Subsidiary)
• (iv) Indo Count Global Inc., USA(Wholly Owned Subsidiary)
• (v) Indo Count UKLimited (Wholly Owned Subsidiary)

(vi) Indo Count Global DMCC (Formerly known as Hometex Global DMCC) (Wholly Owned Subsidiary)

SURESH KUMAR MITTAl & co. CHARTERED ACCOUNTANTS

60, 1st Floor, Pocket H-3, Sector-18, Rohini, DELHI-110085. Mobile: 9871411946 E-mail: sureshkmittal@gmail.com

• 1. Basedon our review conducted and procedures performed asstated in paragraph 3 above and based on the consideration referred to in paragraph6 below, nothing hascome 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, hasnot disclosedthe information required to be disclosed in terms of Regulation 33 of the SEBI(Listing Obligations and Disclosure Requirements) Regulations, 2015,asamended, including the manner in which it isto bedisclosed, or that it contains any material misstatement.
• 1. The consolidated unaudited financial results include the interim financial results of four subsidiaries which have not been reviewed by their auditors, whose interim financial results reflect total revenue of Rs.118.00 crores, total net profit after tax of Rs.12.50 crores and total comprehensive income of Rs.9.73 crores for the quarter ended 30th June 2021, as considered in the consolidated unaudited financial results. According to the information and explanations given to us by the Management, these interim financial results are certified by the management and are not material to the Group.

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

1. The Statement includes the results for the quarter ended March 31, 2021 being the balancingfigures between the audited figures in respect of the full financial year ended March 31, 2021 and the published unaudited year-to-date figures up to the end of the third quarter of that financial year, which were subjected to a limited review by us,as required under the Listing Regulations.

Place:New Delhi Date: 3rd August 2021 UDIN:2.'?"~\~\;-AAf\~j)) 8'31'-'

ForSuresh Kumar Mittal & Co Chartered Accountants Firm Registration No. 500063N

~.

(Ankur Bagla) PARTNER Membership Number: 521915