Indo Count Industries Ltd — Interim / Quarterly Report 2021

Jan 21, 2021

January 21,2021

National Stock Exchange of India Limited Listing Department, Exchange Plaza, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051.

BSE Limited Department of Corporate Services, Floor 25, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001.

kQmpany Symbol: ICll Scrip Code No.: 521016

Dear Sir/Madam,

.s.u..bje.c.t .!lYK~g held on January 21. 2021 - Unaudited Standalone & Consolidated .Einaru:jalB.e..s_yltuUlh~y for the quarter and nine months ended .cecember...3.1...l.O.2.O.

We wish to inform you that at the Board Meeting held today i.e. on January 21, 2021,the Board of Directors ("Board") of the Company approved the Unaudited Standalone & Consolidated Financial Results of the Company for the quarter and nine months ended December 31,2020.

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

• a. Unaudited Consolidated Financial Results of the Company for the quarter and nine months ended December 31,2020;
• b. Unaudited Standalone Financial Results of the Company for the quarter and nine months ended December 31,2020;
• c. 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 and nine months ended December 31,2020.

The meeting of the Board commenced at 12.00Noon and concluded at 1.50p.m.

Kindly take note of the same.

Thanking you,

For Indo Count Industries Limited

~

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

Encl.: A/a

Indo Count Industries Ltd

Head Office: 301, Arcadia, 3rd Floor, Nariman Point, Mumbai - 400 021, Maharashtra, India;T: 02243419500, F: 02222823098 MarKetingOffice. Dosti Imperia, 2nd IIoor, Manpada, Ghodbunder Road, Thane (w) - 400 607, Maharashtra, India;T: 022 4151 1800,F: 022 2172 0121 Home Textile Division T3, Kagal- Hatkananqale Five Star, MIDC Ind. Area, Kolhapur - 416216, Maharashtra, India;T: 0231 6627900, F: 0231 6627979 Spinning Divrsion:D1, MIDC, Gokul Shirgaon, Kolhapur - 416234, Maharashtra, India;T: 0231 268 7400, F: 0231 2672161 Regd. Office' Office No.1, Plot No. 266, Village Alte, Kumbhoj Road,TalukaHatkanangale, Dist. Kolhapur - 416 109, Maharashtra, India;T: 0230 2463100 12461929 CIN: L72200PN1988PLC068972, E: info@indocount.com, W: www.indocount.com

INDO COUNT INDUSTRIES LIMITED 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 AND NINE MONTHS ENDED 31ST DECEMBER, 2020

Part - I Sr. No. Particulars					Nine Months Ended		(Rs. in Crore except EPS)
			Quarter Ended				Year Ended
		31-12-2020 Unaudited	30-09-2020 Unaudited	31-12-2019 Unaudited	31-12-2020 Unaudited	31-12-2019 Unaudited	31-03-2020 Audited
1	Income
	Revenue from Operations	782.42	709.62	608.76	1,811.06	1,621.63	1,965.07
	Other Operating Income	8.94	10.13	(0.04)	23.11	30.22	54.32
	Total Income	791.36	719.75	608.72	1,834.17	1,651.85	2,019.39
2	Expenses
	Cost of Materials Consumed Purchases of Stock-in-Trade	389.78	317.74	261.11	902.80	860.81	1,090.70
	Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade	27.32 (13.64)	2.13 46.15	1.05 80.21	33.37 (5.79)	2.78 30.59	3.47 (9.29)
	Employee Benefits Expense	34.31	32.93	32.59	97.19	92.14
	Finance Costs	6.79	4.67	9.60	16.41	29.05	124.62
	Depreciation	10.19	10.29	10.31	30.54	30.30	36.93
	Other Expenses	209.07	193.16	155.83	497.82	438.10	40.65 577.62
	Total Expenses	663.82	607.07	550.70	1,572.34	1,483.77	1,864.70
3	Profit before Exceptional Items and Tax (1-2)	127.54	112.68	58.02	261.83	168.08	154.69
4	Exceptional Items	-	-	(36.91)	-	(131.18)	(98.46)
5	Profit before Tax (3-4)	127.54	112.68	21.11	261.83	36.90	56.23
6	Tax Expenses
	Current Tax	31.78	26.54	5.61	64.47	9.11	17.40
	Deferred Tax	0.25	1.47	(1.12)	1.11	(31.35)	(34.93)
	Total Tax Expenses	32.03	28.01	4.49	65.58	(22.24)	(17.53)
7	Net Profit for the period (5-6)	95.51	84.67	16.62	196.25	59.14	73.76
8	Other Comprehensive Income (after tax)
	a) Items that will not be reclassified to Profit or Loss	(0.15)	(0.16)	-	(0.46)	0.02	(0.62)
	b) Items that will be reclassified to Profit or Loss	13.02	28.63	6.89	61.13	(12.67)	(46.49)
	Total Other Comprehensive Income (after tax)	12.87	28.47	6.89	60.67	(12.65)	(47.11)
9	Total Comprehensive Income (7+8)	108.38	113.14	23.51	256.92	46.49	26.65
10	Paid up Equity Share Capital (of Rs. 2 each)	39.48	39.48	39.48	39.48	39.48	39.48
11	Other Equity						932.89
12	Earning Per Share of Rs. 2 each (not annualised for the quarters):
	a) Basic	4.84	4.29	0.84	9.94	3.00	3.74
	b) Diluted	4.84	4.29	0.84	9.94	3.00	3.74

Notes:

1 The above results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on January 21 2021. The Statutory Auditors have carried out a Limited Review of the above financial results.

• 2 Revenue from operations for the Nine Months ended December 31, 2019 includes incentive of Rs. 32.71 Crores, accrued under Merchandise Exports from India Scheme (MEIS). Pursuant to withdrawal of the entitlement with retrospective effect from March 07, 2019 on certain products exported in the past, the Company had written off the MEIS benefit for the period from March 07, 2019 to September 30, 2019 in the financial results for the Quarter and Nine Months ended December 31, 2019, and had discontinued accruing MEIS incentive after September 30, 2019. The figures for the Nine Months ended December 31, 2019 are not comparable to the extent explained above.
• 3 Due to outbreak of Covid-19 pandemic and subsequent lockdown enforced by the Government of India, the manufacturing operations were temporarily shut down from 23rd March 2020 and after a period of ~ 30 days, restarted partially from 26th April, 2020 subject to conditions imposed by the Government. As a result of lockdown, the volumes for the month of April 2020 and May 2020 were impacted and accordingly, results of current quarter and nine months of FY 2021 are not comparable with previous quarter and corresponding nine months of FY 2020 respectively.The Company has assessed, and is continuously reviewing, its liquidity, future cash flow projections and the probability of occurrence of the forecasted transactions underlying the hedges based on orders in hand and current indicators of future economic conditions. The financial results for Q3 FY 21 takes in to consideration such assessment of 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.
• 4 The Board at its meeting held on 21st October 2020 approved scheme of amalgamation of Pranavaditya Spinning Mills Limited, the Subsidiary of the Company with the Company. The Company has submitted application to the Stock Exchanges for its No-objection to the said scheme.
• 5 Pursuant to Voluntary Deregistration of Indo Count Australia Pty Ltd., wholly owned Subsidiary Company by the Australian Securities & Investments Commission (ASIC) on October 7, 2020 as per the intimation received from ASIC, Indo Count Australia Pty Ltd has ceased to be subsidiary of the Holding Company w.e.f. October 7, 2020. Due to this event there is no material impact on the financials of the Company.
• 6 The figures for the corresponding previous period have been regrouped/reclassified wherever necessary, to make them comparable.
• 7 The Company 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 SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the results are available on the Stock Exchanges website at (www.bseindia.com and www.nseindia.com) and on the Company's website at www.indocount.com.

For and on behalf of the Board of Directors

Anil Kumar Jain Executive Chairman DIN: 00086106

INDO COUNT INDUSTRIES LIMITED 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 AND NINE MONTHS ENDED 31ST DECEMBER, 2020

Part - I	(Rs. in Crore except EPS)
	Sr. No. Particulars	Quarter Ended			Nine Months Ended		Year Ended
			31-12-2020 30-09-2020 31-12-2019 31-12-2020 31-12-2019				31-03-2020
		Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
1	Income
	Revenue from Operations	783.14	713.79	636.86	1,828.68	1,712.28	2,080.13
	Other Operating Income	9.11	10.26	0.01	23.59	30.23	54.63
	Total Income	792.25	724.05	636.87	1,852.27	1,742.51	2,134.76
2	Expenses		318.02	263.34	916.92	877.34	1,107.64
	Cost of Materials Consumed	402.32					0.37
	Purchases of Stock-in-Trade	28.26	0.02	-	28.33	-
	Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade Employee Benefits Expense	(32.34) 38.37	46.71 35.58	89.57 38.29	(17.64) 107.24	59.32 109.64	31.46 148.07
	Finance Costs	7.09	4.83	10.54	17.17	30.93	39.25
	Depreciation	10.90	11.02	11.02	32.68	32.40	43.46
	Other Expenses	212.80	196.90	164.20	508.88	461.02	609.37
	Total Expenses	667.40	613.08	576.96	1,593.58	1,570.65	1,979.62
3	Profit before Exceptional Items and Tax (1-2)	124.85	110.97	59.91	258.69	171.86	155.14
4	Exceptional Items (Refer Note 4)	(0.02)	(3.63)	(36.91)	(3.65)	(131.18)	(98.46)
5	Profit before Tax (3-4)	124.83	107.34	23.00	255.04	40.68	56.68
6	Tax Expenses
	Current Tax	31.89	26.60	5.61	64.73	9.14	18.88
	Deferred Tax	0.11	(0.09)	(2.17)	(1.06)	(33.30)	(35.30)
	Total Tax Expenses	32.00	26.51	3.44	63.67	(24.16)	(16.42)
7	Net Profit for the period (5-6)	92.83	80.83	19.56	191.37	64.84	73.10
8	Other Comprehensive Income (after tax)
	a) Items that will not be reclassified to Profit or Loss	(0.15)	(0.15)	0.02	(0.47)	0.05	(0.60)
	b) Items that will be reclassified to Profit or Loss	12.65	28.61	7.03	60.28	(12.75)	(47.99)
	Total Other Comprehensive Income (after tax)	12.50	28.46	7.05	59.81	(12.70)	(48.59)
9	Total Comprehensive Income (7+8)	105.33	109.29	26.61	251.18	52.14	24.51
10	Net Profit attributable to :
	- Owners	92.92	81.81	20.17	192.75	65.83	73.78
	- Non-controlling interests	(0.09)	(0.98)	(0.61)	(1.38)	(0.99)	(0.68)
11	Other Comprehensive Income attributable to :
	- Owners	12.50	28.46	7.03	59.81	(12.71)	(48.58)
	- Non-controlling interests	-	-	0.01	(0.00)	0.01	(0.01)
12	Total Comprehensive Income attributable to :
	- Owners	105.42	110.27	27.21	252.56	53.12	25.20
	- Non-controlling interests	(0.09)	0.98	(0.60)	(1.38)	(0.98)	(0.69)
13	Paid up Equity Share Capital (of Rs. 2 each)	39.48	39.48	39.48	39.48	39.48	39.48
14	Other Equity						946.54
15	Earning Per Share of Rs. 2 each (not annualised for the quarters):
	a) Basic	4.71	4.15	1.02	9.76	3.33	3.74
	b) Diluted	4.71	4.15	1.02	9.76	3.33	3.74

Notes:

1 The above results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on January 21, 2021. The Statutory Auditors have carried out a Limited Review of the above financial results.

• 2 Revenue from operations for the Nine Months ended December 31, 2019 includes incentive of Rs. Rs. 32.71 Crores, accrued under Merchandise Exports from India Scheme (MEIS). Pursuant to withdrawal of the entitlement with retrospective effect from March 07, 2019 on certain products exported in the past, the Group had written off the MEIS benefit for the period from March 07, 2019 to September 30, 2019 in the financial results for the Quarter and Nine Months ended December 31, 2019, and had discontinued accruing MEIS incentive after September 30, 2019. The figures for the Nine Months ended December 31, 2019 are not comparable to the extent explained above.
• 3 Due to outbreak of Covid-19 pandemic and subsequent lockdown enforced by the Government of India, the manufacturing operations were temporarily shut down from 23rd March 2020 and after a period of ~ 30 days, restarted partially from 26th April, 2020 subject to conditions imposed by the Government. As a result of lockdown, the volumes for the month of April 2020 and May 2020 were impacted and accordingly, results of current quarter and nine months of FY 2021 are not comparable with previous quarter and corresponding nine months of FY 2020 respectively. The Group has assessed, and is continuously reviewing, its liquidity, future cash flow projections and the probability of occurrence of the forecasted transactions underlying the hedges based on orders in hand and current indicators of future economic conditions. The financial results for Q3 FY 21 takes in to consideration such assessment of 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.
• 4 Exceptional Item for the Quarter ended September 30, 2020 and Quarter and Nine Months ended December 31, 2020 represents the expenditure incurred on account of VRS/Separation Scheme approved by the Board of an Indian Subsidiary on 15th July 2020.
• 5 The Board at its meeting held on 21st October 2020 approved scheme of amalgamation of the Pranavaditya Spinning Mills Limited, the Subsidiary of the Company with the Company. The Companies have submitted applications to the Stock Exchanges for its No-objection to the said scheme.
• 6 Pursuant to Voluntary Deregistration of Indo Count Australia Pty Ltd., wholly owned Subsidiary Company by the Australian Securities & Investments Commission (ASIC) on October 7, 2020 as per the intimation received from ASIC, Indo Count Australia Pty Ltd has ceased to be subsidiary of the Holding Company w.e.f. October 7, 2020. Due to this event there is no material impact on the financials of the Group.
• 7 The figures for the corresponding previous period have been regrouped/reclassified wherever necessary, to make them comparable.
• 8 The Group mainly operates only in one segment namely "Textiles" and hence segment details are not required to be published.
• 9 In line with the requirements of Regulation 47(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the results are available on the Stock Exchanges website at (www.bseindia.com and www.nseindia.com) and on the Company's website at www.indocount.com.

For and on behalf of the Board of Directors

Anil Kumar Jain Executive Chairman DIN: 00086106

SURESH KUMAR MITTAL & CO. CHARTERED ACCOUNTANTS

1. 151Floor, Pocket H·3. sector- 18, Rohlnl, DELHI· 110085 Phone: 9871411946 E·mail: sureshkmittalco@gmail.com

..

Independent Auditors Limited Review Report on Unaudited Quarterly and yearto-date Standalone Financial Results of INDO COUNT INDUSTRIES UMITED under Regulation 33 of the SEBI (Listing obligations and Disclosure Requirements) Regulation 2015, as amended.

Review report to

The Boardof Directorsof INDOCOUNTINDUSTRIESLIMITED

• 1. We havereviewedthe accompanyingstatement of unauditedStandalonefinancialresults of INDO COUNTINDUSTRIESLIMITED(the "Company") for the quarter ended 31" December,20l0 and year to date from 1" April.2020 to 31" December, 2020 (the statement) attached herewfth being submitted by the company pursuant to the requirements of Regulation 33 of the SESI (listing obligations and Disclosure Requirements) Regulation2015,as amended.
• 2, This statement is the responsibility of the Company's Management which has been approved by the Board of Directors and has been prepared In accordance with the recognition and measurementprincipleslaid down in IndiaAccounting Standard 34 (Ind AS34) "Interim financial reporting" prescribedunder section 133 of the CompaniesAct, 2013 as amended read with relevant rules tssued there under and other accounting principles generally accepted In India. Our responsibility is to Issuea report on these financialstatementsbasedon our review.
• 1. We conducted our review of the StatementIn accordancewith the Standardon RevIew Engagements(SRE)2410 "RevIew of Interim FinancialInformation Performed by the IndependentAuditor of the Entity", Issuedby the Institute of CharteredAccountantsof India.This standard requires that we plan and perform the review to obtain moderate assuranceas to whether the financial statements are free of material misstatement.A review is limited primarily to inquiries of company personnel and analvtical procedures applied to financial data and thus provides less assurancethan an audit. We have not performed an audit and accordingly,we do not expressan audit opinion.
• 1. Emphasisof Matter-

We draw attention to Note 3 of the accompanyingstandalone financial results, which descrlbesthemanagement'sevaluationof Impactof uncertaintiesrelated to COVID·19and its consequentialeffects on the operationsof the Company.Our conclusionis not modified in respectof this matter.

jURESH KUMAR MITTAl & CO. CHARTERED ACCOUNTANTS 60, 1st Floor. Pocket H·~. Sector.IS. Rohinl. DaHl· ^t 10085 Phone: 9871411946 E·mall: sureshkmlltalco@gmall.com

S. 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 including the manner In which it is to be disclosed, or that it contains any material misstatement.

Firm , .., "'#'" For Suresh Kumar Mittal & Co. Chartered Accountants

(ANKUR BAGLA)

•

PARTNER Membership Number: 521915

Place: New Delhi Date: 21" January,2021 UDIN: 2.152.1'1IS AAfI!\F!.S'l.OS I SURESH KUMAR MIITAL & CO.

CHARTERED ACCOUNTANTS

50, lat Floor. Podtel H.J, Sector-IS, Rohlnl,DElHI-l10085. Mobile: 9871411946 E-maU • aureahkmittal@gmall.com

Independent Auditor's Review Report On consolidated unaudited quarterly and year to date financial results of Indo Count Industries Limited Pursuantto the Regulation33 of theSEBI(Listing Obligationsand DisclosureRequirements)Regulations,2015

TOTHEBOARDOFDIRECTORSOF INDOCOUNTINDUSTRIEliSMITED

• 1. We have reviewed the accornpanvmgStatement of Consolidated Unaud,ted RnanClalResultsof Indo Count mdustnes urruted ("the Parent") and its subsrdranes(the Parent and Its subsidiaries together referred to as'the Group·), for the quarter ended 31" December,2020and for the period from 1" April,2020 to 31" December,2020 ("the Statement") attached herewith. being submitted by the Parent pursuant to the requirement of Regulation 33 of the SEBI(LlStingObligations and o.sclosureRequirements)Regulations.2015.asamended ('the RegulatIon')
• 1. Thrs Statement, which ISthe respOnSlbilotyof the Parent's Management and apPfoved by the Parent's Board of Directors, has been prepared in accordance with the recognition and measurementprinciples laid down in IndianAccountingStandard34 'Interlm FinancialReporting" rind AS34'). prescribed under Section 133of the CompanoesAct, 2013 as amended. read With relevant rules issuedthereunder. and other accounting pnnciples generallyaccepted 10 IndIa read Withthe Circular abovementioned Our reSpOnsibilityISto expressa 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 InteromFinanoal InformatIon Performed by the Independent Auditor of the Entity', Issued by the Inslltute of Chartered Accountants of India. The standard requires that we plan and perform the review to obtain moderate assuranceas to whether the statement is free of matenal misstatement. A review of Interim financial Information consistsof making inquirIes, promarily of persons responsible for financial and accounting mailers, and applYinganalytical and other review procedures. A review ISsubstantIally less in scope than an audit conducted in accordanceWIth Standardson Audlltng and consequently does not enable us to obtain assurancethat we would becomeaware of all significantmatters that might be Identified In an audit. Accordingly,we do not expressan audit opinion.

We alsoperformed procedures in accordancewith the circular Issuedby the SEBIunder Regulation 33 (8) of the SEBI (LIsting Obligations and Disclosure Requl(ements) Regulations. 201S, as amended,to the extent applicable.

SURESH KUMAR MITTAL & CO. CHARTEREOACCOUNTANTS 50, III F1oot, Pocket H..a, Sector·la, Rahinl, DElHI· 110085. ~ 9871411948 E-mail au~com

• 4, TheStatement Includes\he results of the following entities:
• I. Indo Count Industries umued (Holding company)
• II, PranavadltyaSpinningMil s umued (Subsidiary)
• iii, Indo Count RetailVentures Pvt. Ud (SubSidiary)
• IV, IndoCount GlobalInc" USA(WhollyOwned Subsidiary)
• v, Indo Count UK Limited (WhollyOwned Subsidiary)
• vi. IndoCount Australia Ply Ltd (upto 06.10.2020)
• Vii. Indo CountGlobal DMCC(Formerly known asHometeltGlobalDMCq (Wholly OwnedSubSidiary)
• ~. Basedon our review conducted and procedures performed as stated In paragraph 3 above and basedon the consideration referred to in paragraph7 below, nothing has come to our attention that causesus 10 believe thai the accompanYlllgStatement, prepared In accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting pnnciples generally accepted In India, has not drsdosed the Information reqUired10 be disclosed In terms of Regulation33 of the SEal(listing Obligationsand Disclosure Requirements)Regulations,2015, asamended, including the manner In which it Isto be disclosed, or that it contains any matenal misstatement.
• 1. EmphasiSof Matter-

We draw attention to Note 3 of the accompanyingconsolidated financial results,whiChdescribes the management'sevaluation of impact of uncertainties related to COVID19and Itsconsequential effects on [he operations of the Group. Our conduson ISnot modified In respect of thiSmatter

7 lhe consolidated unaudited financial results mdudes the interim flnantial results of five subsidiarieswhich havenot been reviewed by their auditors, whoseinterim financial resultsrenect total revenue of Rs 49.53 crores and Rs 80.35 crores, total net profit/(loss) after ta~ of Rs 3.08 crores and Rs 1.03 crores and total comprehensiveIncomeI (loss)of Rs2.71 crores and Rs0.19 crores for the quarter ended 31" December ,2020 and for the period from 1" April,2020 to 31" December,2020, respectively, as considered in the consolidated unaudited finanCial results. According to the information and explanations given to us by the Management, these interim flnancralresults ascerrtfled ev the management are not matenal to the Group.

Our conclusion on the Statement is not modified In respect of the abovematter

Place:New Deihl

For SureshKumarMlttal & Co. Chartered Accountants Firm RegistrationNo. 500063N

~.

(ANKU R BAGLA) PARTNER Membership Number: 521915