Kilburn Engineering Ltd — Annual Report 2021

Jun 29, 2021

KILBURN ENGINEERING LIMITED

Registered Office : Four Mangoe Lane, Surendra Mohan Ghosh Sarani, Kolkata - 700 001

CIN: L24232WB1987PLC042956, Tel No: 033 22313337, Fax No: 033-22314768, Website: www.kilburnengg.com STATEMENT OF AUDITED RESULTS FOR THE QUARTER AND YEAR ENDED 31 MARCH 2021

						₹ in Lakhs
Sr. no.	PARTICULARS	QUARTER ENDED (AUDITED)	QUARTER ENDED (UNAUDITED)	QUARTER ENDED (AUDITED)	YEAR ENDED (AUDITED)	YEAR ENDED (AUDITED)
		31.03.2021	31.12.2020	31.03.2020	31.03.2021	31.03.2020
1	Income
	a. Revenue from Operations	3,566	2,822	2,943	8,841	13,114
	b. Other Income	101	271	334	949	1,917
	Total Income	3,667	3,093	3,277	9,790	15,031
2	Expenses
	a. Cost of Materials Consumed	1,611	1,428	1,277	4,280	6,641
	b. Subcontracting Charges	375	263	483	831	1,559
	c. Changes in Inventories of Finished Goods and Work in
	Progress	109	53	34	47	295
	d. Employee Benefits Expense	391	401	430	1,561	1,751
	e. Finance Costs	142	325	351	1,133	1,722
	f. Depreciation and Amortisation Expenses	101	100	103	402	414
	g. Other Expenses	564	395	449	1,428	1,960
	Total Expenses	3,293	2,965	3,127	9,682	14,342
3	Profit / (Loss) before Exceptional Loss and Tax (1-2)	374	128	150	108	689
4	Exceptional Loss (Refer Note 3)	12,689	-	-	12,689	-
5	Profit / (Loss) before Tax (3-4)	(12,315)	128	150	(12,581)	689
6	Tax Expense
	i) Current Tax	-	-	34	-	184
	ii) Deferred Tax	(3,439)	(4)	24	(3,411)	(12)
	Total Tax Expenses	(3,439)	(4)	58	(3,411)	172
7	Net Profit / (Loss) for the Period/ Year (5-6)	(8,876)	132	92	(9,170)	517
8	Other Comprehensive Income / (Loss)
a.	Items that will not be reclassified to Profit or Loss	177	183	(49)	650	(490)
b.	Items that will be reclassified to Profit or Loss	-	-	-	-	577
	Other Comprehensive Income / (Loss), net of tax	177	183	(49)	650	87
9	Total Comprehensive Income / (Loss) for the Period/Year (7+8)	(8,699)	315	43	(8,520)	604
	10 Paid-up Equity Share Capital (Face Value ₹ 10 each)	2,821	1,326	1,326	2,821	1,326
	11 Reserves excluding Revaluation Reserve				1,952	9,016
	12 Earnings Per Share (EPS) (in ₹) (not annualised for the quarters) Basic and Diluted EPS (in ₹)	(66.55)	1.00	0.70	(68.75)	3.90

Also refer accompanying notes to the Financial Results.

TARUN GANESHI LAL JAIN Digitally signed by TARUN GANESHI LAL JAIN Date: 2021.06.29 17:12:36 +05'30'

SUBIR CHAKI Digitally signed by SUBIR CHAKI Date: 2021.06.29 16:56:51 +05'30'

NOTES:

• 1 The above results have been reviewed and recommended by the Audit Committee and approved by the Board of Directors at its meeting held on 29th June, 2021.
• 2 a) The Board of Directors of the Company in its meeting held on 4th March, 2021 has considered and approved sanction letter dated 23rd February, 2021 for restructuring of debt ("the Resolution Plan") from RBL Bank Limited under the Guidelines of the Reserve Bank of India (Prudential Framework for Resolution of Stressed Assets) Directions, 2019 dated 7th June, 2019. In terms of the Resolution Plan, the outstanding principal loan and interest due to RBL Bank Limited of Rs. 9,500 Lakhs and Rs. 900 Lakhs respectively aggregating to Rs. 10,400 lakhs have been restructured by way of a) allotment of 67,50,000 Equity Shares of Rs. 10 each at a premium of Rs. 10 per share amounting to Rs. 1,350 lakhs, b) allotment of 2,55,00,000 0.01% Cumulative Redeemable Preference Shares ("CRPS") of Rs. 10 each issued at par amounting to Rs. 2,550 Lakhs c) converting balance amount into term loan of Rs. 6,500 lakhs. Out of the above allotted CRPS as a part of the Resolution Plan, the Company has redeemed of Rs. 1,000 Lakhs on 31st March, 2021. Further, as a part of the Resolution Plan, the Company has allotted 82,00,000 Equity Shares of Rs. 10 each at a premium of Rs. 10 per share to Firstview Trading Private Limited under Promoter Category with consequential change in the Management/Board of Directors of the Company.

b) The restructured term loan of Rs. 6,500 Lakhs is repayable over a period of 12.5 years in 46 stepped up quarterly instalments after a moratorium of 12 months with certain mandatory payments in the first three years adjustable pro rata against the term Loan.

c) The 0.01% CRPS allotted during the year is repayable in 2 equal annual instalments at the end of the 14th year and 15th year and recognised as Financial Liabilities in accordance with the requirements of Ind AS 109 "Financial Instruments".

• 3 In earlier years, the Company had advanced Inter-Corporate Deposits ('ICDs') to certain group companies. The Company has recovered part of the said ICDs and the aggregate outstanding amount of ICDs and accrued interest thereon as of 31st March, 2021, is Rs. 9,950 lakhs and Rs. 2,739 lakhs (including interest accured up to the third quarter of the current financial year amounting to Rs. 788 lakhs presented in Other Income) respectively. The Company is putting in best efforts to recover the outstanding amounts, however, considering the current financial position of these group companies and the perceived uncertainties of recovery, the management has considered it prudent to recognise a provision for the entire outstanding amount of ICDs and to write-off the entire amount of interest accrued on such ICDs without prejudice to any of the legal rights and remedies available to recover the outstanding amounts. The effect of the same has been disclosed as an exceptional loss aggregating to Rs. 12,689 lakhs in the Statement of Profit and Loss for the quarter and year ended 31st March, 2021. The above adjustments would have no impact on the operations of the Company.
• 4 The Company has recognised deferred tax assets amounting to Rs. 3,427 Lakhs as on 31st March, 2021. The Management of the Company believes that there will be adequate future taxable profits available against which the deferred tax assets can be utilised.
• 5 The Company has taken into account all the possible impacts of COVID-19 in preparation for these financial results. The Company has evaluated its liquidity position, recoverability and carrying value of its Non-current and Current assets and has concluded that no material adjustments are required currently at this stage. The Company will continue to monitor future economic conditions and their consequent impact on the business operations, given the uncertain nature of the pandemic.
• 6 The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the Company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on 13th November, 2020 and has invited suggestions from the stakeholders which are under active consideration by the Ministry. The Company will assess the impact, once the subject rules are notified and will give appropriate impact in its financial results in the period in which, the Code become effective.
• 7 In line with the provisions of Ind AS 108 - Operating Segments, Chief Operating Decision Maker (CODM) reviews the operations of the Company as the manufacturer of Engineering Products, which is considered to be the only reportable segment by the management. Accordingly, no separate disclosure of segment information has been made.
• 8 The Company's operations and its results vary from period to period, depending on the delivery schedule of the customers.
• 9 Figures for the quarter ended 31st March, 2021 are the balancing figures between unaudited figures for the nine months ended 31 December, 2020 and audited figures for the financial year ended 31st March, 2021.
• 10 Previous period figures have been regrouped / rearranged wherever necessary, to correspond with those of the current period classification.

		By Order of the Board
	TARUN Digitally signed	SUBIR	Digitally signed by SUBIR CHAKI
	by TARUN GANES GANESHI LAL	CHAKI	Date: 2021.06.29 16:57:30 +05'30'
	JAIN HI LAL Date:		Subir Chaki
Date : 29 June 2021 Place : Kolkata	2021.06.29 JAIN 17:14:24 +05'30'		Whole Time Director (DIN 05174555)

KILBURN ENGINEERING LIMITED

STATEMENT OF ASSETS AND LIABILITIES AS ON 31 MARCH 2021

	₹ in Lakhs
		AS AT	AS AT
Sr. No.	PARTICULARS	31 MARCH 2021	31 MARCH 2020
		Audited	Audited
A	ASSETS
	1. Non-Current Assets
	(a) Property, Plant and Equipment	4,464	4,839
	(b) Intangible Assets	11	19
	(c) Financial Assets
	- Investments	813	158
	- Loans	14	31
	- Other Financial Assets	6	35
	(d) Income Tax Assets (Net) (e) Deferred Tax Assets (Net)	280 3,427	272 16
	(f) Other Non-Current Assets	49	49
	Total Non-Current Assets	9,064	5,419
	2. Current Assets
	(a) Inventories	818	998
	(b) Financial Assets
	- Loans	11	10,831
	- Trade Receivables	4,191	3,233
	- Cash and Cash Equivalents - Bank Balance other than included in Cash and	937	399
	Cash Equivalents above	364	289
	- Other Financial Assets	23	1,963
	(c) Contract Assets	4,019	3,714
	(d) Other Current Assets	701	803
	Total Current Assets	11,064	22,230
	TOTAL ASSETS	20,128	27,649
B	EQUITY AND LIABILITIES
	1. Equity
	(a) Equity Share Capital	2,821	1,326
	(b) Other Equity	1,952	9,016
	Total Equity	4,773	10,342
	2. Non-Current Liabilities
	(a) Financial Liabilities
	- Borrowings	6,527	-
	- Other Financial Liabilities	1,211	-
	Total Non-Current Liabilities	7,738	-
	3. Current Liabilities
	(a) Financial Liabilities - Borrowings	1,858	12,156
	- Trade Payables
	a) total outstanding dues of micro enterprises and small enterprises	71	90
	b) total outstanding dues of creditors other than micro enterprises
	and small enterprises	2,191	2,211
	- Other Financial Liabilities	219	209
	(b) Provisions	76	47
	(c) Contract Liabilities	3,169	2,569
	(d) Other Current Liabilities	33	25
	Total Current Liabilities	7,617	17,307
	TOTAL - EQUITY AND LIABILITIES	20,128	27,649
			By Order of the Board
		Digitally signed TARUN by TARUN GANESHI LAL GANESHI JAIN	SUBIR Digitally signed by SUBIR CHAKI CHAKI Date: 2021.06.29 16:57:52 +05'30'
	Date : 29th June, 2021	Date: 2021.06.29 LAL JAIN 17:15:10 +05'30'	Subir Chaki Whole Time Director

Place : Kolkata (DIN 05174555)

		₹ in Lakhs
	For the Year ended	For the Year ended
	31 March 2021 Audited	31 March 2020 Audited
Cash Flows from Operating Activities :
Profit /(loss) before Tax and after Exceptional Loss	(12,581)	689
Adjustments to reconcile profit/(loss) before tax to net cash flows: Depreciation and Amortisation Expense	402	414
Foreign Exchange (Gain)/Loss (net)	9	(23)
Loss /(Profit) on disposal of Property, Plant and Equipment	-	(20)
Finance Costs	1,133	1,722
Bad debts written off	66	90
Provision for loss allowance	23	-
Provision against Inter Corporate Deposits given	9,950	-
Accured Interest written off Liabilities / Provisions no longer required written back	2,739 (131)	- (217)
Interest Income	(817)	(1,625)
Operating Profit/(Loss) before Working Capital changes	793	1,030
Working capital adjustments:
(Increase)/decrease in Contract Assets and Other Financial Assets	(262)	(114)
(Increase)/decrease in Trade Receivables	(1,057)	844
(Increase)/decrease in Inventories (Increase)/decrease in Other Assets	291 102	515 174
(Increase)/decrease in Loans	22	(31)
Increase /(decrease) in Trade Payables	(17)	(827)
Increase /(decrease) in Provisions	21	264
Increase /(decrease) in Other Financial Liabilities	0	(428)
Increase /(decrease) in Contract Liabilities and Other Liabilities Cash Generated from / (used in) Operations	606 500	(312) 1,116
Income Tax Paid (net of refunds)	(6)	(137)
Net Cash Flows from / (used in) Operating Activities (A)	494	979
Cash Flows from Investing Activities :
Proceeds from sale of Property, Plant and Equipment Purchase of Property, Plant and Equipment (including Intangible Assets)	0 (19)	122 (18)
Net Bank Balances not considered as Cash and Cash equivalents	(75)	88
Inter-Corporate Deposit Received Back	841	10
Interest Income Received	30	210
Net Cash Flows from / (used in) Investing Activities (B)	777	414
Cash Flows from Financing Activities :
Finance Costs Paid	(386)	(1,971)
Proceeds from Issue of Equity Shares	1,640	-
Payment for Cumulative Redeemable Preference Shares Expenses Incurred on Restructuring	(1,000) (152)	- -
Repayment of Long Term Borrowings	(37)	(41)
Proceeds from Short Term Borrowings	-	662
Repayment of Short Term Borrowings	(807)	(193)
Increase / (decrease) in Working Capital Borrowings (net)	(100 )	427
Payment of Dividend on Equity Shares	-	(131)
Payment of Dividend Distribution Tax Net cash flows from / (used in) Financing Activities (C)	- (842 )	(29) (1,275)
Net increase / (decrease) in Cash and Cash Equivalents (A+B+C)	429	119
Cash and Cash Equivalents at the beginning of the year	344	225
Cash and Cash Equivalents at the end of the year	773	344
Components of Cash and Cash Equivalents :
Balances with banks
- On Current Accounts	935	399
- Cash on hand Less : Bank Overdraft	2 164	0 55
Total Cash and Cash Equivalents at the end of the year	773	344
The Statement of Cash Flows has been prepared under the indirect method as set out in Indian Accounting Standard (Ind AS 7) Statement of Cash Flows.		By Order of the Board
		Digitally signed
	TARUN Digitally signed by TARUN GANESHI GANESHI LAL JAIN Date: 2021.06.29 LAL JAIN 17:16:09 +05'30'	SUBIR by SUBIR CHAKI Date: 2021.06.29 CHAKI 16:58:15 +05'30'

Date : 29th June, 2021	Whole Time Director
Place : Kolkata	DIN 05174555

(Subir Chaki)

V. SINGHI & ASSOCIATES Chartered Accountants 61, 6th Floor, Sakhar Bhavan 230, Nariman Point, Mumbai 400 021 Phone: +91 22 6250 1800 E-Mail: mumbai@vsinghi.com

Independent Auditor's Report on the Financial Results of Kilburn Engineering Limited pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

The Board of Directors Kilburn Engineering Limited Four Mangoe Lane Surendra Mohan Ghosh Sarani Kolkata- 700001

Report on the Audit of the Financial Results

Opinion

the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("the Listing Regulations").

We have audited the accompanying Financial Results ("the Statement") of Kilburn Engineering Limited ("the Company"), for the quarter and year ended on 31st March, 2021, being submitted by

In our opinion and to the best of our information and according to the explanations given to us, the Statement:

• a. is presented in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended; and
• b. gives a true and fair view in conformity with the recognition and measurement principles laid down in the applicable Accounting Standards, and other accounting principles generally accepted in India, of the net loss and other financial information of the Company for the quarter and the year ended on 31st March, 2021.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing ("SAs") specified under section 143(10) of the Companies Act, 2013 (the Act). Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Financial Results section of our report.

We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India ("ICAI") together with the ethical requirements that are relevant to our audit of the Financial Results under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our opinion.

TARUN GANESHI LAL JAIN Digitally signed by TARUN GANESHI LAL JAIN Date: 2021.06.29 17:30:45 +05'30'

Bengaluru | Delhi | Guwahati | Hyderabad | Jaipur | Kolkata | Mumbai

Emphasis of Matter

Management's assessment of impact of COVID-19

We draw attention to Note 5 of the Statement which describes the management's assessment of impact of COVID-19, a global pandemic, on the financial position/matters of the Company.

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

Management's Responsibilities for the Financial Results

The Statement, which is the responsibility of the Company's Management and approved by the Board of Directors, has been prepared on the basis of annual financial statements of the Company. The Company's Board of Directors are responsible for the preparation and presentation of these Financial Results that give a true and fair view of the net profit/(loss) and other financial information of the Company in accordance with the recognition and measurement principles laid down in Accounting Standards prescribed under section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Financial Results that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the Financial Results, the Board of Directors of Company are also responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors of Company either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Results

Our objectives are to obtain reasonable assurance about whether the Financial Results as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Results.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

x Identify and assess the risks of material misstatement of the Financial Results, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.

• x Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of such controls.
• x Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Management.
• x Conclude on the appropriateness of the Board of Director's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Company to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditor's Report to the related disclosures in the Financial Results or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditor's Report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• x Evaluate the overall presentation, structure and content of the Financial Results, including the disclosures, and whether the Financial Results represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal controls that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

For V. Singhi & Associates Chartered Accountants Firm Registration No.: 311017E

TARUN GANESHI LAL JAIN Digitally signed by TARUN GANESHI LAL JAIN Date: 2021.06.29 17:19:13 +05'30'

(Tarun Jain) Place: Mumbai Partner Date: 29th June, 2021 Membership No.: 130109 UDIN: 21130109AAAAEB7072