K.C.P. LTD — Interim / Quarterly Report 2020

Sep 4, 2020

Ref: KCP: CS : SE : RB : 20-21 : 4092020

September 4, 2020

National Stock Exchange of India Limited(NSE) Scrip: KCP BandraKurla Complex, Bandra (E) Mumbai-400 051

Bombay Stock Exchange Ltd (BSE) Scrip- 590066 Floor No.25, P J Towers Dalal Street, Mumbai 400 001

Dear Sir /Madam,

Sub: Submission of Audited Standalone and Consolidated Financial Results of the Company for the quarter ended 30th June 2020.

Ref: Regulation 33 of the SEBI (LODR) Regulations, 2015.

With reference to the above, please find enclosed herewith coy of the Un-Audited Standalone and Consolidated Financial Results of the Company for the quarter ended 30th June 2020, which have been approved and taken on record by the Board of Directors at its meeting held today i.e. on 4th September 2020, along with the Limited Review Report of M/ s. K.S. Rao & Co., Chartered Accountants, Hyderabad, the Statutory Auditors of the Company on the same.

The Limited Review Reports are submitted with unmodified opinion(s) (free from any qualifications).

The above results will be available on Company's Website atwww.kcp.co.in.

The meeting of the Board of Directors commenced at 2.00 p.m and concluded at 3.30 p.m.

This is for your information and records.

Thanking You,

Yours faithfully, For THE KCP LI

Y. VIJAYA_K: MAR COMPANY SECRETARY & COMPLIANCE OFFICER.

THE KCP LIMITED Registered Office: Ramakrishna Buildings, 2, Dr. P. V. Cherian Crescent, Egmore, Chennai 600 008. INDIA Phone: + 91-44-6677 2600 Fax: + 91-44-6677 2620 E-mail: corporate@kcp.co.in www .kcp.co.in

CIN. L65891TN1941PLC001!28

		3 MONTHS ENDED			YEAR ENDED
51	PARTICULARS	30.06.2020	31.03.2020	30.06.2019	31.03.2020
No			Audited	Unaudited	Audited
1REVENUE FROM OPERATIONS		23,752.39	25,479.59	25,647.79	93,797.18
2OTHER INCOME		3,080.79	13.81	2,936.97	3,254.83
3	TOTAL INCOME	26,833.18	25,493.40	28,584.75	97,052.00
4EXPENSES
	(a COST OF RAW MATERIAL CONSUMED	3,763.76	5,074.94	5,598.47	20,757.54
(b) PURCHASE OF STOCK IN TRADE				-
	(c) CHANGE IN INVENTORIES OF FINISHED GOODS ,WORK IN PROGRESS
AND STOCK IN TRADE		2,378.83	220.29	{1,583.51)	{1,879.20)
(d) EMPLOYEE BENEFITS EXPENSE		1,743.20	1,947.65	2,387.56	8,041.37
(e) POWER & FUEL		4,754.75	6,341.27	6,625 .84	24,190.51
	(f) FREIGHT AND FORWARDING EXPENSE	4,458.19	5,763.59	5,545.30	21,787.50
(g) FINANCE COST		1,246.20	1,246.58	1,437.78	5,641.40
	(h) DEPRECIATION AND AMORTISATION EXPENSE	1,741.08	1,784.59	1,765.48	7,140.86
(I) OTHER EXPENDITURE		1,717.09	3,179.29	3.468.91	13,339.88
	TOTAL EXPENSES	21,803.11	25,558.19	25,245.84	99,019.86
5	PROFIT/(LOSS) BEFORE EXCEPTIONAL ITEMS AND TAX (3-4)	5,030.06	(64.79)	3,338.91	(1,967.85)
6EXCEPTIONAL ITEMS·			571.74	-	571.74
7PROFIT/(LOSS) BEFCJRE TAX (5-6)		5,030.06	(636.53)	3,338.91	(2,539.59)
8TAX EXPENSE
(a) CURRENTTAX		382.64	(466.56)	205.55	21.26
(b) DEFERRED TAX		859.49	{237.64)	683.84	{1,884.17)
9	PROFIT/(LOSS) FOR THE PERIOD FROM CONTINUING OPERATIONS (7·8)	3,787.94	67.67	2,449.53	(676.68)
10	PROFIT/(LOSS) FROM DISCONTINUED OPERATIONS			-
11	TAX EXPENSE OF DISCONTINUED OPERATIONS	-		-	-
12	PROFIT/(LOSS) FROM DISCONTINUED OPERATIONS (10-11)			-
13PROFIT/(LOSS) FOR THE PERIOD (9+12)
14OTHER COMPREHENSIVE INCOME		3,787.94	67.67	2,449.53	(676.68)
	(i) ITEMS THAT WILL NOT BE RECLASSIFIED TO P&L	187.32	(265.14)	22.50	(353.00)
15	TOTAL COMPREHENSIVE INCOME (13+14)	3,975.26	(197.48)	2,472.03	(1,029.68)
16	EARNINGS PER SHARE (EPS) (FOR CONTINUING OPERATIONS) (Basic and Diluted)	2.94	0.05	1.90	-0.52
17	EARNINGS PER SHARE (EPS) (FOR DISCONTINUED OPERATIONS) (Basic and Diluted)	0.00	0.00	0.00	0.00
	EARNI~GS PER SHARE (EPS) (FOR DISCONTINUED & CONTINUING OPERATIONS) (Basic				-0.52
18and Diluted)Explanatory Notes :(a)	As per Government directives to combat outbreak of Covid-19, the Company suspended operations across its facilities from the last weekof March,2020. Commencing from last week of March, manufacturing activity of Cement and Engineering goods and operation of Hotelwas Impacted severely in the first quarter ending 30th June, 2020. Resumption of operations took place in phased manner by taking allnecessary precautions as per the guidelines issued from time to time.The company has considered the possible effects that may result from the pandemic on the carrying amounts of Property, Plant andEquipment and Receivables. In assessing the recoverability of the assets, the company has considered the internal and e>sternal sources ofinformation available at the time of approval of the financial statements for the quarter ending 30th Ju,ne, 2020 and is of view that thecarrying amount of the assets will be realised. The impact of COVID-19 on the company's financial results may differ from the estimate asat the date of approval of these financial results and would be recognised prospectively.	2.94	0.05	1.90

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

under section 133 of The Companies Act 2013 read with the Companies (Indian Accounting Stadard) Rules 2015 (as amended).

(c) The figures of Fourth Quarter are the balancing figures between audited figures In respect of full financial year upto 31st March,2020 and unaudited year-to-date figures upto the third quarter ended 31st December, 2019.

(d) Other income for the quarter ended 30.06.2020 includes dividend receipts of Rs.30.28 crores (corresponding period in the Previous Year: Rs.27.92 crores) from the Subsidiary and Rs.Nil (corresponding period in the Previous Year: Rs.0.80 crores) from Joint Venture company.

(e) The above results have been reviewed by the Audit Committee and approved by the Board of Directors at their meetings held on 4th September 2020.

(f) Figures for the previous period have been regrouped/reclassified wherever necessary to conform to the current periods presentation.

THE KCP LIMITED

SEGMENT WISE REVENUE, RESULTS, ASSETS AND LIABILITIES - STANDALONE

		3 MONTHS ENDED	YEAR ENDED
		30.06.2020	31.03.2020	30.06.2019	31.03.2020
51 No	PARTICULARS	Unaudited	Audited	Unaudited	Audited
	1 Segment Revenue (Net Sale I Income
	from each segment )
a	Engineering	640.77	1,647.02	1,765.06	7,287.58
b	Cement	23,035.62	23,333.60	23,401.81	84,411.37
c	Power	1,395.61	1,689.16	1,910.02	7,242.69
d	Hotel	26.47	412.14	435.74	1,801.85
e	Others I Unallocated	42.35	49.04	33.51	193.03
	Total	25,140.82	27,130.96	27,546.13	1,00,936.52
	Less: Inter segment Revenue	1,388.43	1,651.37	1,898.34	7,139.35
	Net Sales I Income from Operations	23,752.39	25,479.59	25,647.79	93,797.18
	2 Segment Results
	(Profit(+) I Loss(-) before tax and
	Interest from each segment
a	Engineering	(613.67)	(497.39)	(629.66)	(2,352.41)
b	Cement	4,282.41	1,691.00	2,717.36	2,644.88
c	Power	(167.59)	(388.07)	159.81	176.72
d	Hotel	(319.17)	(126.69)	(119.60)	(415.65)
e	Others	(6.34)	2.15	(0.90)	(5.38)
f	Other unallocable expenditure(-) net of	3,029.38	(127.20)	2,588.14	2,805.66
	unallocable Income(+)
	Total	6,205.02	553.80	4,715.16	2,853.81
	Less:
	Interest expenses	1,246.20	1,246.58	1,427.07	5,641.40
	Interest income	(71.25)	(56.23)	(50.82)	(248.00)
	Total Profit Before Tax	5,030.06	{636.55)	3,338.91	(2,539.59)
	3 Segment Assets
a	Engineering	12,916.37	13,378.69	16,360.53	13,378.69
b	Cement	85,276.10	86,947.93	89,695.67	86,947.93
c	Power	12,975.57	12,478.34	13,449.37	12,478.34
d	Hotel	8,633.77	8,770.01	9,402.17	8,770.01
e	Unallocated	10,861.27	8,311.29	10,199.87	8,311.29
	Total	1,30,663.08	1,29,886.26	1,39,107.61	1,29,886.26
	4 Segment Liabilities
a	Engineering	9,750.95	9,868.77	10,999.52	9,868.77
b	Cement	46,716.08	50,236.20	51,574.36	50,236.20
c	Power	4,697.98	4,171.41	4,078.68	4,171.41
d	Hotel	1,937.34	2,065.85	2,761.61	2,065.85
e	Unallocated	16,885.17	16,843.71	18,202.20	16,843 .71
	Total	79,987.52	83,185.94	87,616.38	83,185.94

Notes on segm<:nt information:-

1. Operating segment is business activity for which operationg results are regularly reviewed by the Chief operationg decision

:

THE KCP LIMITED

Registered office: 'Ramakrishna Buildings', No.2, Dr Cherian Crescent, Egmore, Chennai-600 008 CIN: L65991 TN 1941 PLC001128

51No	PARTICULARS	30-06.2020	3 MONTHS ENDED31.03.2020	30.06.2019	YEAR ENDED31.03.2020
		Unaudited	Audhod	Unaudited	Audited
1	REVENUE FROM OPERATIONS	34,615.86	35,168.70	38,522.08	1,42,358.65
2	OlliE~ INCOME	55.78	40.01	65.66	412.37
3	TOTAL INCOME	34,671.64	35,208.71	38,587.74	1,42, 771.01
4	EXPENSES
	(a COST OF RAW MATERIAL CONSUMED	13,920.86	16,746.82	19,447.90	46,852.21-
	(b) PURCHASE OF STOCK IN TRADE	--			-
	(c) CHANGE IN INVENTORIES OF FINISHED GOODS ,WORK IN PROGRESSAND STOCK IN TRADE	(3,018.14)	(7,135.54)	(8,538.77)	1,712.51
	(d) EMPLOYEE BENEFITS EXPENSE	2,297.41	2,504.05	2,954.80	10,290.46
	(e) POWER & FUEL	6,061.42	6,354.54	6,632.47	24,245.62
	(f) FREIGHT AND FORWARDING EXPENSE	4,911.37	6,008.07	6,398.44	23,550.11
	(g) FINANCE COST	1,388.89	1,312.32	1,524.89	5,939.80
	(h) DEPRECIATION AND AMORTISATION EXPENSE	2,304.75	2,387.15	2,371.33	9,609.07
	(I) OTHER EXPENDITURE	2,141.37	3,725.64	4,216.27	16,061.57
	TOTAL EXPENSES	30,007.93	31,903.04	35,007.33	1,38,261.35
5	PROFIT/(LOSS) BEFORE EXCEPTIONAL ITEMS AND TAX (3-4)	4,663.71	3,305.67	3,580.41	4,509.67
6	EXCEPTIONAL ITEMS'		571.74	-	571.74
7	PROFIT/(LOSS) BEFORE TAX (S-6)	4,663.71	2,733.93	3,580.41	3,937.93
8	TAX EXPENSE
	(a) CURRENTTAX	382.64	(466.56)	205.55	21.26
	(b) DEFERRED TAX	859.49	(237.64)	683.84	(1,884.17)
9	PROFIT/(LOSS) FOR THE PERIOD FROM CONTINUING OPERATIONS (7-8)	3,421.58	3,438.13	2,691.02	5,800.84
10	PROFIT/(LOSS) FROM DISCONTINUED OPERATIONS	-	-	-	-
11	TAX EXPENSE OF DISCONTINUED OPERATIONS	-			-
12	PROPIT/(LOSS) FROM DISCONTINUED OPERATIONS (10-11)	-		-	-
13	PROFIT /(LOSS) FOR THE PERIOD (9+ 12)	3,421.58	3,438.13	2,691.02	5,800.84
14	SHARE OF PROFIT FROM JOINT VENTURE	(54.77)	34.40	27.64	29.11
15	PROFIT/(LOSS) AFTER TAX AND SHARE OF JOINT VENTURE	3,366.81	3,472.53	2,718.66	5,829.94
	NON-CONTROLLING INTEREST	887.22	1,123.49	1,037.83	3,116.51
	OWNERS OF THE COMPANY	2,479.59	2,349.04	1,680.83	2,713.43
16	OTHER COMPREHENSIVE INCOME
	(I) ITEMS THAT WILL NOT BE RECLASSIFIED TO P&L	935.82	1,164.95	(202.86)	2,321.78
	(II) SHARE OF OCI FROM JOINT VENTURE	20.25	(4.49)	(7.44)	(0.02)
	(IIi) LESS : NON CONTROLLING SHARE OF OCI	253.64	513.55	(84.69)	955.28
	OCI AFTER NON COTROLLING INTEREST	702.44	646.91	(125.61)	1,366.48
17	TOTAL COMPREHENSIVE INCOME (15+16)	4,322.89	4,632.99	2,508.36	8,151.70
	NON-CONTROLLING INTEREST	1,140.86	1,637.04	953.14	4,071.79
	OWNERS OF THE COMPANY	3,182.03	2,995.95	1,555.21	4,079.91
18	EARNINGS PER SHARE (EPS) (FOR CONTINUING OPERATIONS) (Basic and Dll~ted)	1.92	1.82	1.30	2.10
19	EARNINGS PER SHARE (EPS) (FOR DISCONTINUED OPERATIONS) (Basic and Diluted)	0.00	0.00	0.00	0.00
20	EARNINGS PER SHARE (EPS) (FOR DISCONTINUED & CONTINUING OPERATIONS) (Basicand Diluted)	1.92	1.82	1.30	2.10
	Explanatory Notes :
(a)	As per Government directives to combat outbreak of Covid-19, the Company suspended operations across its facilities from the last week ofMarch,2020. Commencing from last week of March, manufacturing activity of Cement and Engineering goods and operation of Hotel wasimpacted severely in the first quarter ending 30th June, 2020. Resumption of operations took place in phased manner by taking all necessaryprecautions as per the guidelines issued from time to time. The operations of the subsidiary company in Vietnam were not significantlyaffected.The company has considered the possible effects that may result from the pandemic on the carrying amounts of Property, Plant andEquipment and Receivables. 11'1 assessing the recoverability of the assets, the company has considered the internal and external sources ofinformation available 111 the time of approval of the financial statements for the quarter ending 30th June, 2020 and Is of view that the carryingamount of the assets will be realised. The impact of COVID-19 on the company's financial results may differ from theestimate as at the date of
	approval of these financial results and would be recognised prospectively.The financial results of the Company have been prepared in accordance with the Indian Accounting standards (I NO AS) as prescribed undersection 133 ofThe Companies Act 2013 read with the Companies (Indian Accounting Stadard) Rules 2015 (as amended).
	The figures of Fourth Quarter are the balancing figures between audited figures in respect of full financial year upto 31st March,2020 andunaudited year-to-date figures upto the third quarter ended 31st December, 2019.
	The above results have been reviewed by the Audit Committee and approved by the Board of Directors at their meetings held on 4thSeptember 2020.
	The consolidated financial results includes the results of (i) KCP Vietnam Industries Limited (subsidiary company) in vietnam and (ii) FivesCail KCP Limited (Joint Venture company). Subsidiary is engaged in manufacturing sugar which is seasonal in nature and season normallytakes place in Januory-May pe.riod in vietnom. Hence financials from quarter to quarter m1y not be comparable.
	Figures for the previous period have been regrouped/reclassified wherever necessary to con firm to the current periods presentation.
			(BY ORDER OF THE BOAR 'toK .P Lim ited *for Th	-G .,,C.P	,I.,.'0· *
			'	(•,.,.	'i <br>EGMORE
(b)(c)(d)e)f)	Place: Chennai - 600 008		PR, V.L. INDIRA DUTI ~(Chairperson & Managing Olra ore	~ CHENNAI-8	mif/c.,

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

The KCP limited

SEGMENT WISE REVENUE, RESULTS, ASSETS AND LIABILITIES - CONSOLIDATED

The Group has reported segment information as per IND AS 108 "Operating segments" Read with regulation 33 of the SEBI (Listing Obligations and Disclosure requirements) regulations 2015 as amended.

			YEAR ENDED
		30.06.2020	3 MONTHS ENDED31.03.2020	30.06.2019	31.03.2020
51 No	PARTICULARS	Unaudited	Audited	Unaudited	Audited
	1 Segment Revenue (Net Sale I Income
	from each segment )
a	Engineering	640.77	1,647.02	1,765.06	7,287.58
b	Cement	23,035.62	23,333 .60	23,401.81	84,411.37
c	Power	3,215.95	3,194.21	3,596.31	11,033.21
d	Hotel	26.47	412.14	435.74	1,801.85
e	Sugar	9,524.03	9,545.67	12,626.88	48,030.28
f	Others I Unallocated	42.35	49.04	33.51	193.03
	Total	36,485.19	38,181.68	41,859.30	1,52,757.32
	Less: Inter segment Revenue	1,869.33	3,012.98	3,337.22	10,398.68
	Net Sales I Income from Operations	34,615.86	35,168.70	38,522.08	1,42,358.65
	2 Segment Results
	(Profit(+) I Loss(-) before tax and
	Interest from each segment
a	Engineering	(613.67)	(497.39)	(629.66)	(2,352.41)
b	Cement	4,282.41	1,691.00	2,717.36	2,644.88
c	Power	(480.48)	(374.44)	180.80	(466.59)
d	Hotel	(319.17)	(126.69)	(119.60)	(415.65)
e	Sugar	2,717.15	3,422.57	3,019.62	9,632.21
e	Others	(6.34)	2.15	(0.90)	(5.38)
f	Other unallocable expenditure(-) net of	1.38	(127.20)	(283.86)	(66.34)
	unallocable Income(+)
	Total	5,581.28	3,990.00	4,883.77	8,970.71
	Less:
	Interest expenses	1,388.89	1,312.32	1,514.17	5,939.80
	Interest income	(471.32)	(56.23)	(210.81)	(907.02)
	Total Profit Before Tax	4,663.71	2,733.91	3,580.41	3,937.93
	3 Segment Assets
a	Engineering	12,916.37	13,378.69	16,360.53	13,378.69
b	Cement	85,276.10	86,947.93	89,695.67	86,947.93
c	Power	23,690.09	23,343.99	24,562.13	23,343.99
d	Hotel	8,633.77	8,770.01	9,402.17	8,770.01
e	Sugar	64,037.52	57,976.56	51,159.83	57,976.56
f	Unallocated	9,419.94	6,904.49	8,784.18	6,904.49
	Total	2,03,973.79	1,97,321.66	1,99,964.51	1,97,321.66
	4 Segment Liabilities
a	Engineering	9,750.95	9,868.77	10,999.52	9,868.77
b	Cement	46,716.08	50,236.20	51,574.36	50,236.20
c	Power	4,891.75	4,186.87	4,112.46	4,186.87
d	Hotel	1,937 .34	2,065 .85	2,761 .61	2,065 .85
e	Sugar	36,778.60	30,288.39	29,717.96	30,288.39
f	Unallocated	16,885.17	16,843.71	18,202.20	16,843.71
	Total	1,16,959.89	1,13,4.89.79	1,17,368.12	1,13,489. 79

Notes on segment information:-

ma ker to make decisions about resou rce all ocation and perfo rmance measurement.

CHARTERED ACCOUNTANTS

·'·'~'~lr.n • ~ t) • 0 ~'?ABP..0

IndcJ)Codcnt Auditor's Review Report on the Quarterly Unaudited Standalone Financial Results of The KCP Limited Pursuant to the Regulation 33 of the SEBI

(Listing Obligations and Di closure Requirements) Regulations, 2015, as amended)

To The Board of Directors The KCP Limited

• I. We have reviewed the accompanying statement of Standalone Unaudited Financial Results of The KCP Limited("the Company") for the quarter ended June 30, 2020("the Statement") being submitted by the company pursuant to requirements of Regulation 33 of the SEBI (listing Obligations and Disclosure Requirements) Regulations,2015 read with SEBI Circular No.CIR/CFD/FAC/62/2016 dated July 5,2016.
• 1. This statement is the responsibility of the Company's Management and has been approved by the Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Ind AS - 34 "Interim Financial Reporting", prescribed under Section 13 3 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with the Regulation 33 of Securities and Exchange Board of India (Listing Obligations and disclosure Requirements) Regulations, 2015, as amended, ("Listing Regulations"). Our responsibility is to issue a report on these financial statements based on our review.
• 1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 241 0 "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 provides less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.
• 1. Attention is drawn to the fact that the figures for the 3 months ended 31 March 2020 as reported in these financial results are the balancing figures between audited figures in respect of the full previous financial year and the published year to date figures up to the third quarter of the previous financial year. The figures up to the end of the third quarter of previous financial year had only been reviewed and not subjected te -. audit. ~ 'h"''· ''(; • A· ~-I It'f '

Flat No. 601A, Golden Green Apartments. lrrum Manzil Colony, Hyderabad- 500 082. Phone : (040) - 2337 3399, Email : ksraoandcompany@gmail.com I hydksrao@ksrao.in

• 1. Based on our review conducted as stated in Para 3 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 o Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Reg11lations, 2015 including the manner in which it is to be disclosed, or that it contains any material misstatement.
• 1. We draw attention to Explanatory Note (a) to the statement, which explains the uncertainties and the impact of Covid-19 pandemic on the c-ompany's operations and results as assessed by the management. Our conclusion on the unaudited Financial Results is not modified in respect of this matter.

for K.S RAO & Co., Chartered Accountants Firm Registration No.003109S U Digitally signed by Perugu Perugu c;ovardhnna Reddy Govardhana Reddy oatcr. 2020.09.041S:1s:os +05'30' (P.GOV ARDHANAREDDY) Partner • ,~ co,l < Membership No: 029193 1 ,., ~: UDIN 20029193AAAAHL209 ~~o~>.Q

--

Place: Hyderabad Date: 04.09.2020

•

I

lnd pendent Auditor's Review Report On Consolidated Unaudited Omn·terly Financial results of The KCP Limited Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended

CHARTERED ACCOUNTANTS

• !' '•c p c ·- :. < ~.~~ /

To The Board of Directors The KCP Limited

• 1. We have reviewed the accompanying Statement of Consolidated Unaudited Financial Results of The KCP Limited ("the Parent") and its subsidiary (the Parent and its subsidiary together referred to as "the Group"), and its share of the net profit after tax and total comprehensive income of its Joint venture for the quarter ended June 30, 2020 ("the Statement"), being submitted by the Parent pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.
• 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, and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
• 1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 241 0 "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 SEBI under Regulation 33 (8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, to the extent applicable .

1. Attention is drawn to the fact that the figures for the 3 months ended 31 March 2020 as reported in these financial results are the balancing figures between audited figures in respect of the full previous financial year and the published year to date figures up to the third quarter of the previous financial year. The figures up to the end of the third quarter of previous financial year had only been reviewed and not sub' eo audit. c;[\· _ '.__ 0~.\r.~

• 1. The Statement includes the results ofthe following entities:
  • a. KCP Vietnam Industries Limited (Foreign Subsidiary)
  • b. FIVESCAIL KCP Limited(Joint venture)
• 1. Based on our review conducted and procedures performed as stated in paragraph 3 above and based on the consideration of the review reports of other auditors referred to in paragraph 7 below, 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.
• 1. We did not review the interim financial statements of the subsidiary included in the consolidated unaudited financial results, whose interim financial statements reflect total assets of Rs. 74,752 lakhs as at 301 h June 2020 and total revenues of Rs.l 0, 866.46 lakhs and total net profit of Rs.2, 661.65 lakhs and total comprehensive income of Rs.3,422.55 lakhs for the quarter ended June 30, 2020 as considered in the consolidated unaudited financial results. The consolidated unaudited financial results also include the Group's share of net loss after tax of Rs.54.77 lakhs, other comprehensive income of Rs.20.25 lakhs for the quarter ended June 30, 2020 as considered in the consolidated unaudited financial results, in respect of a Joint Venture whose interim financial statements have not been reviewed by us. These interim financial statements have been reviewed by other auditors whose reports have been furnished to us by the Management and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of the subsidiary and joint venture, is based solely on the reports of the other auditors and the procedures performed by us as stated in paragraph 3 above. Our Conclusion on the Statement is not modified in respect of the above matters.

for K.S RAO & Co., Chartered Accountants Firm Registration No.0031 09S P Digitally signed by Perugu erUgU Govardhana Reddy Govardhana Reddy ~~~~~~.o2o.o9.o4 15:21:56 (P.GOVARDHANA REDDY) Partner Membership No: 029193 UD IN20029193 AAAAHM3415

Place: Hyderabad Date: 04.09.2020