Kernex Microsystems (India) Ltd. — Interim / Quarterly Report 2022

Aug 1, 2021

KERNEX MICROSYSTEMS LTD.

IAn ISO 9001:2015 Certified Company)

CIN: 130007TG1991PlC013211 Tel: .91 8414 - 667600 Fax: .918414 - 667695 email : kernex@kernex.in Website ; www.kernex.in

Relist .... d Offtc. : 'TECHNOPQUS', Plot Nos.: 38·41, Hardware Technology Park, TSIIC Layout, RavlryaJ (V), Hyderabad - 501510. Telangana. India.

KM Il/SE/Q1/21-22/36

1st August 2021

To	To
The listing / Compliance Department	The listing / Compliance Department
BSE Limited	National Stock Exchange of India ltd
Phiroze Jeejeebhoy Towers	Plot No.C/ 1, G Block,Exchange Plaza
Dalal Street	Sandra - Kurla Complex, Sandra (E),
Mumbai - 400 001----- ----- -- - -- - - -.----- ------------- _-	Mumbai - 400 OSl.•• • • -- -.-- . __ .-. __ .-_ •.__ .

Sir I Madam,

Sub: Submission of Un-Audited Financial Results of the Company as per the provisions of SEBI (LODR) Regulations, 2015.

Please find enclosed herewith the following documents in terms of Regulation 33 of SEBt (lODRl Regulations, 2015:

• 1. Un-Audited Standalone and Consolidated Financial Results of the Company for the first quarter ended 30th June, 2021.
• 1. Umited Review Report on Quarterly Standalone and Consolidated Financial Statements of the Company for the first quarter ended on 30th June, 2021 as required under Regulation 33 of SEBI (LODR) Regulations, 201S

This is for your information and necessary records.

Yours faithfully For KERNEX MICROSYSTEMS (INDIA) LIMITED

M 8 NARAYANA RAJU WHOLE-TIME DIRECTOR DIN: 07993925

PRASADA RAO KALLURI COMPANY SECRETARY

KERNEX MICROSYSTEMS (INDIA) LTD.

(An ISO 9001:2015 Certified Company)

$001$

CERTIFIED

ISO 9001

CIN: L30007TG1991PLC013211

Tel: +91 8414 - 667600

Fax: +91 8414 - 667695

email: kernex@kernex.in

Webstruex MARAGKEEMENNIA) LIMITED

Unaudited STANDALONE Statement of financial results for the quarter ended 30th Jun, 2021

(All experience in textion through account allows which are determined an analysis

Registered Office: 'TECHNOPOLIS', Plot Nos.: 38-41, Hardware Technology Park, TSIIC Layout, Raviryal (V), Hyderabad - 501 510. Telangana. India.

Particulars		Year ended
	30-Jun-21	31-Mar-21	30-Jun-20	31-Mar-21
	Unaudited	Audited	Unaudited	Audited
Income
Revenue from operations	1,45,38,230	11,52,56,407	53,54,318	15,57,55,071
Other Income	22,43,800	1,11,75,384	20,06,110	1,83,40,110
Total income	1,67,82,030	12,64,31,791	73,60,428	17,40,95,182
Expenses
Cost of materials consumed	1,59,47,423	6,68,59,658	11,08,946	9,36,67,842
Purchases of stock in trade	¥	$\sim$	۰	$\sim$
Changes in inventories of finished goods, work in progress and stock in trade	(87, 81, 039)	22,14,863	(10, 64, 000)	(5, 32, 54, 663)
Employee benefit expense	1,40,56,240	1,35,77,162	1,12,87,220	4,88,89,642
Finance cost	52,02,090	11,09,109	17,68,371	91,44,097
Depreciation and amortization expense	39,17,979	38,95,853	38,24,040	1,55,45,723
Other expenses	1,86,50,115	2,45,15,957	77,18,383	5,58,57,149
Total expenses	4,89,92,808	11,21,72,601	2,46,42,961	16,98,49,789
Profit/(loss) before extraordinary, exceptional items and tax	(3, 22, 10, 779)	1,42,59,189	(1, 72, 82, 533)	42,45,393
Exceptional items
Profit/(loss) before tax	(3, 22, 10, 779)	1,42,59,189	(1, 72, 82, 533)	42,45,393
Tax expense
(i) Current tax	$\bullet$	$\omega$	$\mu$	٠
(ii) Previous years tax	٠	÷	£.	×
(iii) Deferred tax	5,45,496	10,03,146	15, 13, 704	5,27,387
Net profit/(loss) for the year	(3, 27, 56, 275)	1,32,56,043	(1,87,96,237)	37,18,006
Other comphrensive income
Items that will not be reclassified to Statement of Profit and loss
(i) Remeasurement gains/(losses) of the defined benefit plans		3,93,895		3,93,895
(ii) Income tax effect on the above
Total comphrensive Income for the year	(3, 27, 56, 275)	1,36,49,938	(1, 87, 96, 237)	41,11,901
Earnings per equity share (EPS)
Paid up Equity Share Capital (Face value of Rs.10/- each per equity share)	12,49,96,550	12,49,96,550	12,49,96,550	12,49,96,550
and Diluted Farnings nor share of Rs 10/4 each (not annualised). Bs	(262)	1.06	11501	0.30

Mr. 53. Lavez-1.

Notes:

1. The above unaudited financial results were reviewed by Audit Committee and approved by the Board of Directors of the company in their respective meetings held on 111 August 2021 respectively. The Statutory auditors have ca rried a limited review of financial result s.

2. The Standalone Financial Results have been prepared in accordance with Indian Accounting Standards prescribed under section 133 of the Companies Act 2013 ("the Act") read with the relevant rules issued there under ("INDAS") and other accounting principles genera lly accepted in India and the guidelines issued by SEBI.

3. The Company operates with Single segment for Railways hence Segment information not furnished as per the Ind AS 108 'Operating Segments' notjfied under the Companies (Indian Accounting Standards) Rules, 2015 read with Accounting Standard (AS) 17 "Segment Reporting" notified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014

4. The results for the quarter ended 30th June 2021 were also available at t he website of the company (www. kernex.in) and at the websites of the Stock Exchanges where the equity shares of the company are listed : SSE limited (www.bseindia.com) and National Stock Exchange of India limited (www.nseindia.com).

5. Figures for the previous period have been regrouped/ reclassified where ever necessary to conform to the current period's presentation.

Pla ce Hyderabad

Date

By order of the Board of Directors For Kernex Microsystems (India) limited

M B Narayana Raju Whole Time Director DIN: 07993925

P R S V & Co. LLP Cha rt ered Accountant s

202, Saptaglrl Residency, ' · IO-ga/A, Chikotl Gardens. Begumpet, Hyderabad • 500 016 Phone : +91 4066106177/27766881 Telefax : -+91 4021766881 E-mai! Pfsvco@gmall.com Website : prsvllp.com

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

To The Board of Directors of KERNEX MICROSYSTEMS (INDIA) LIMITED

1. We have reviewed the accompanying Statement of unaudited standalone financial results of KERNEX MICROSYSTEMS (INDIA) LIMITED for the quarter ended June 30, 2021(the "statement"), being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 ('the Regulation') as amended, read with SEBI Circular No.CIRiCFD/CMD1I4412019 dated March 29, 2020 ('the Circular').

2. This Statement, which has been prepared in accordance with the recognition and measurement principles laid do\Vl1 in the Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued there under and other accounting principles generally accepted in India, read with the circular is the responsibility of the Company's Management and has been approved by the Board of Directors of the Company. Our responsibility is to issue a report on the Statement based on our review.

3. We conducted our review of the statement in accordance with the Standards 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 ofIndia. This Standard requires that we plan and perform the review to obtain moderate assurance as to whether the statement is free from 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.

Basis for Qualified Conclusion

Other financial assets amounting to Rs. 6.00 crores which is outstanding for more than 4year has been subject to balance confirmation from the respective party/(s). According to the information and explanations given to us, the amount is recoverable and the company is taking steps obtaining balance confirmation. In the absence of sufficient appropriate evidence, we are tumble to comment upon the carrying value of the aforesaid receivable as at 30 June 2021 or any adjustment/impairment required to and the consequent impact if any, on the financial results. Our audit opinion on the financial statements for the year ended 31 March 2021 was also qualified in this regard.

1. Based on our review conducted as stated above, except for the effects/possible effects of qualifications as described in the previous paragraph, nothing has come to our attention that causes us to believe that the accompanying statement, prepared in accordance with the aforesaid Indian Accounting Standards prescribed under section 133 of the Companies Act, 2013 read with rule 7 of the Companies (Accounts) Rules, 2014 and other accounting principles generally accepted in India, has not disclosed

the information required to be disclosed in terms of the Regulation,read with the CirUliar, including the marmer in which it is to be disclosed, or that it contains any material misstatements.

1. We craw your attention that the statement which indicates the preparation offinancial results of the Company on going concern basis for reasons stated therein. The appropriateness of assumption of going concern is dependent upon revival of market and consequently the Company's ability to generate sustainable cash flows in future to meet its obligations.

Our report is not modified in respect of this matter.

For PRSV & Co. LLP Chartered Accountants

Firm's R~\Lr:. eswartll

Partner Membership No. 222068

Place: Hyderabad Date: August 01, 2021

1lIT)~:21222068AJ\AJ\CF9864

KERNEX MICROSYSTEMS (INDIA) LTD.

(An ISO 9001:2015 Certified Company)

UKAS

CERTIFIED

ISO 9001

CIN: L30007TG1991PLC013211 Tel: +91 8414 - 667600

Fax: +91 8414 - 667695

email: kernex@kernex.in

Websitex-MENOSY SEMBRADA) LIMITED

Unaudited CONSOLIDATED Statement of financial results for the quarter ended 30th Jun, 2021

Registered Office: 'TECHNOPOLIS', Plot Nos.: 38-41, Hardware Technology Park, TSIIC Layout, Raviryal (V), Hyderabad - 501 510. Telangana. India.

	Quarter ended			Year ended
Particulars$-14$	30-Jun-21 -	31-Mar-21	30-Jun-20	31-Mar-21
	Unaudited	Audited	Unaudited	Audited
Revenue from operations	1,63,27,448	13,96,84,785	53, 54, 318	18, 32, 34, 444
Other Income	14,50,571	55,13,305	20,06,116	1,25,86,271
Total income	1,77,78,019	14,51,98,090	73,60,434	19,58,20,715
Expenses
Cost of materials consumed	1,60,83,260	7,14,57,008	11,08,946	9,43,71,757
Purchases of stock in trade			$\overline{\phantom{a}}$
Changes in inventories of finished goods, work in progress and stock in trade	(87, 81, 039)	22,14,863	(10, 64, 000)	(5, 32, 54, 663)
Employee benefit expense	1,52,56,240	1,47,77,162	1,12,87,220	5,12,89,642
Finance cost	54,65,210	6,96,436	36,57,892	1,45,64,114
Depreciation and amortization expense	39,20,082	38,97,968	38,32,689	1,55,60,726
Other expenses	1,91,48,097	2,07,29,567	77,54,148	5, 25, 57, 153
Total expenses	5,10,91,850	11,37,73,004	2,65,76,895	17,50,88,728
Profit/(loss) before extraordinary, exceptional items and tax	(3, 33, 13, 831)	3,14,25,085	(1, 92, 16, 461)	2,07,31,987
Extraordinary items				$\tau$
Exceptional items
Profit/(loss) before tax	(3, 33, 13, 831)	3,14,25,085	(1,92,16,461)	2,07,31,987
Tax expense
(i) Current tax	$\bullet$	$\overline{a}$
(ii) Previous years tax	٠
(ii) Deferred tax	5,45,496	10,03,146	15, 13, 704	5,27,387
Net profit/(loss) for the period/year	(3, 38, 59, 327)	3,04,21,939	(2,07,30,165)	2,02,04,600
Other comphrensive income
A (i) Items that will not be reclassified to Statement of Profit and loss	$\bullet$	3,93,895.00		3,93,895
(ii) Income tax relating to items that will not be reclassified to Statement of Profit and loss	×	$\alpha$		$\overline{\mathcal{P}}$
B (i) Items that will be reclassified to Statement of Profit and loss	23,21,190	88,10,433	7,514	7,514
(ii) Income tax relating to items that will be reclassified to Statement of Profit and loss
Total comphrensive Income	(3, 15, 38, 137)	3,96,26,268	(2,07,22,651)	2,06,06,009
Attributable to
Shareholders of the Company	(3, 15, 83, 187)	3,93,35,441		2,05,75,585
Non controling interest	45,050	2,90,827		30,424
Earnings per equity share (EPS)
Paid up Equity Share Capital (Face value of Rs. 10/- each per equity share)	12,49,96,550	12,49,96,550	12,49,96,550	12,49,96,550
Basic and Diluted Earnings per share of Rs.10/- each (not annualised) Rs.	(2.71)	2.43	(1.66)	1.62

Mr. D. Lairy-1.

1. The above unaudited financial results were reviewed by Audit Committee and approved by the Board of Directors of the company in their respective meetings held on 1 51August 2021 respectively. The Statutory auditors have carried a limited review of financial results.

2. Th e Consolidated Financial Results have been prepared in accordance with Indian Accounting Standards prescribed under section 133 of the Companies Act 2013 (lithe Act") read with the relevant rules issued there under ("INDAS") and other accounting principles generally accepted in India and the guidelines issued by SEBI.

3. The Company operates with Single segment, hence Segment information not furnished as per the Ind AS 108 'Operating Segments' notified under the Companies (Indian Accounting Standards) Rules, 2015 read with Accounting Standard (AS) 17 "Segment Reporting" notified under Section 133 of the Companies Act, 2013, read with' Rule 7 of the Companies (Accounts) Ru les, 2014

4. Th e results for the quarter ended 30th June2021 were also available at the website of the company (www.kernex.in) and at the websites of the Stock Exchanges where the equity shares of the company are listed: BSE limited (www.bseindia.comJ and National Stock Exchange of India Limited VlJVJy:!'.nsej~djJ ~Q!!!).

S. Figures for the previous period have been regrouped/ reclassified where ever necessary to con form to the current period's presentation.

Place Hyderabad

Date l " August 2021

By order of the Board of Directors For Kernex Microsystems (India) Limited

M B Narayana Raju Whole Time Director DIN: 07993925

P R S V & Co. LLP Chartered Accountants

202, Saptaglrl Residency, · IO-ga/A, Chikotl Gardens. Begumpet, Hyderabad - 500 016 Phone : +91 4066106177/27766881 Tetefax : +91 4021766881 E-mail prsvco@gmall.com Website : prsvllp.com

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

To The Board of Directors of KERNEX MICROSYSTEMS (INDIA) LIMITED

1. We have reviewed the accompanying Statement of Consolidated unaudited financial results of KERNEX MICROSYSTEMS (INDIA) LIMITED ('the Parent") and its subsidiaries (the Parent and its subsidiaries together referred to as "the Group") and its share of the net profit after tax and total comprehensive loss of its joint ventures for the quarter ended June 30, 2021(the "statement"), being submitted by the Parent pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 ('the Regulation') as amended, read with SEBI CirUllar No. CIRlCFD/CMD1I4412021 dated March 29, 2019 ('the Circular').

2. This Statement, which has been prepared in accordance with the recognition and measurement principles laid do\Vl1 in the Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued there under and other accounting principles generally accepted in India, read with the cirUllar is the responsibility of the Parent's Management and has been approved by the Board of Directors of the Company. Our responsibility is to issue a report on the Statement based on our revie\V.

3. We conducted our revie\V of the statement in accordance with the Standards on Review Engagements (SRE) 2410 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity', issued by the Institute of Otartered AccOlmtants 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 revie\V proceclires. A revie\V 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. The Statement includes the results of the following entities.

Holding Company Kemex Microsystems (India) Limited

"Wholly owned subsidiary Avant-Garde Infosystems Inc

Jointly controlled entity KemexTCASN

P R S V & Co. LLP Chartered Accountants

202, Saptaglrl Residency, · IO-ga/A, Chikotl Gardens. Begumpet, Hyderabad - 500 016 Phone : +91 4066106177/27766881 Tetefax : +91 4021766881 E-mail prsvco@gmall.com Website : prsvllp.com

Basis for Qualified Conclusion

Other financial assets amounting to Rs. 6.00 crores which is outstanding for more than 4 year has been subject to balance confirmation from the respective party/(s). According to the information and explanations given to us, the amount is recoverable and the company is taking steps obtaining balance confirmation. In the absence of sufficient appropriate evidence, we are tumble to comment upon the carrying value of the aforesaid receivable as at 30 June 2021 or any adjustment/impairment required to and the consequent impact if any, on the financial results. Our audit opinion on the financial statements for the year ended 31 March 2021 was also qualified in this regard.

1. Based on our revie\V conducted and procewres performed as stated in paragraph 3 above, except for the effects/possible effects of qualifications as described in the previous paragraph and based on the consideration of the review reports of other auditors referred to in paragraph 6,7 and 8 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 Standards prescribed llllder section 133 of the Companies Act, 2013 read with rule 70fthe Companies (Accounts) Rules, 2014 and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of the Regulation, read with the Circular, including the manner in which it is to be disclosed, or that it contains any material misstatements.

2. The accompanying statement includes the llllaudited interim financial results and other financial information of 1 wholly owned subsidiary whose llllaudited interim financial results include total revenues of Rs.2,18,428.39and total net loss after tax of Rs.3,38,59,327/- and total comprehensive income of Rs. (3 ,15,83,187/-), for the cp..1arter ended June 30, 2021as considered in the consolidated unaudited financial results. These interim financial results and other financial information of wholly owned subsidiary 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, is based solely on the reports of the other auditors and procedures performed by us as stated in paragraph 3 above. Our conclusion on the Statement is not modified in respect of the above matter.

3. The accompanying statement includes the llllaudited interim financial results and other financial information of 1 Joint Venture whose unaudited interim financial results include total revenues of Rs. 1,59,78,7311-and total profit after tax of Rs. 2,25,252/-and other comprehensive income of Rs. Nil for the quarter ended 30 Jlllle 2021as considered in the consolidated financial statements. These interim financial results and other financial information are unaudited and have been furnished to us by the management and our opinion on the Statement, in so far as it relates to the amounts and disclosures included in respect of this Joint Venture, is based solely on those unaudited financial statement/financial information furnished by the Management.

4. The wholly O\vned subsidiary is located outside India i.e USA whose financial results and other financial information have been compiled by a CPA in accordance with accounting principles generally accepted in USA. The Holding Company's management has converted the financial results of wholly owned subsidiary located in USA from accounting principles generally accepted in USA to accounting

202, Saptaglrl Residency, · IO-ga/A, Chikotl Gardens. Begumpet, Hyderabad - 500 016 Phone : +91 4066106177/2776688 1 Tetefax : +91 4021766881 E-mail prsvco@gmall.com Website : prsvllp.com

principles generally accepted in India. Our opinion in so far as it relates to the balances and affairs of such subsidiary located in USA is based on the report of the Certified Public Accountant and conversion adjustments prepared by the management of the Holding Company.

1. We crw.v your attention that the statement which indicates the preparation offinancial results of the Company on going concern basis for reasons stated therein. The appropriateness of asslllllption of going concern is dependent upon revival of market and consequently the Company's ability to generate sustainable cash flO\Vs in future to meet its obligations. Our conclusion on the Statement is not modified in respect ofthe above matter.

For PRSV & Co. LLP

Chartered Accountants

Firm's ~\L r:.

eswa rtll Partner Membership No. 222068

Place: Hyderabad Date: August 01, 2021

I UDIN: 21222068AAAACGl547