KNR Constructions Limited — Interim / Quarterly Report 2020

Aug 14, 2019

Dated 14th August2079

Ref: KNRCL / SD / 2079 / 727 &'1 28

To B S E Limited PI Towers, Dalal Street, Fort, MUMBAI - 400001 To National Stock Exchange of India Limited "Exchange Plaza", Bandra Kurla Complex, Bandra (E), MUMBAI - 400051

BSE Code: 532942 Sir,

NSE Symbol: KNRCON

Sub: - Proceedings of the Board Meeting Ref:-KNR Constructions Limited, BSE Code: 532942, NSE Symbol: KNRCON

With reference to the above, we wish to inform you that in the just concluded Meeting of the Board of Directors of the Company, inter-aliea following items were resolved:-

• 1. Considered and approved the Un-audited Financial Results (Standalone & Consolidated) for the Quarter ended 30th June 2019.
• 1. Limited Review report on Standalone & Consolidated financials for the Quarter ended 30th June 2019 issued by the Statutory Auditors.
• 1. Decided to Call for 24rh Annual General Meeting on Monday, the 30t1. September 2019.
• 1. Book Closure was decided from 24th September 2019 to 30th September 201.9 (both days inclusive) for the purpose of AGM and Dividend.

We hereby declare that the Limited Review Report in respect of Standalone & Consolidated Financial Statements for Quarter Ended 30th June 2079 are unmodified

This is for your information and records Yours sincerely, for KNR Constructions

M.V'Verrrata-M. V. VENKATA Company Secretary l.i J

Regd.Office : 'KNR House',3rd & 4th Floor,Plot No.114,Phase-l,Kavuri Hills, Hyderabad -S0O 033 Phone.:+91 -4040268759 ,402687611 62, Fax : 040- 40268760,E-mail : info@knrcl.com,Web : www.knrcl.com CIN : 17421 0TG1995P1C130199

			STATEMENT OF UNAUDITED STANDALONE AND CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2019				(Rupees In Lakhs, except share data)
		STANDALONE				CONSOLIDATED
PARTICULARS	June 30	Quarter ended	June 30	Year ended	June 30	Quarter endedMarch 31	June 30	Year endedMarch 31
	2019	March 312019	2018	$\frac{\text{March 31}}{2019}$	2019	2019	2018	2019
	UnAudited	Audited71.571.40	UnAudited	Audited$\frac{\text{Audited}}{213,725.62}$	UnAudited	Audited76,535.69	UnAudited59, 188.02	$\frac{Audited}{229,150.32}$
Revenue from OperationsOther Income	46,460.281,677.57	1,514.30	1,776.3355,635.89	6,338.58	1,873.8053,071.57	2,132.69	2,144.25	7,434.40
Total income (1+2)	48,137.85	73,085.70	57,412.22	220,064.20	54,945.37	78,668.38	61,332.27	236,584.72
$\mathcal{L}^{\prime}$Cost of materials consumedExpenses	$18,598.63$4, 143.27	19,296.64	13,698.47	64,320.14	18,598.64	19,348.54	13,703.05	64,378.29
Sub contract Expenses		5,097.57	3,987.25	17,550.87	3,381.754,143.27	4,937.09446.59	4,335.97	446.5918,401.27
Spreading & Assortment ExpensesConstruction cost	7,790.16	24, 227. 74	18,166.22	56,938.65	7,811.20	24,433.58	18,207.11	57,418.23
Changes in inventories of finished goods and work in progressEmployee benefits expense	2,714.02	2,477.20	1,959.23	9,285.73	2,754.11	(170.74)2,525.68	40.002.004.42	(130.75)9,477.35
Finance Costs	903.82	748.55	717.97	2,910.25	2,367.80	2,151.70	2,304.52	8,906.55
Depreciation and amortization expense	3,887.404,212.08	4,784.006,062.02	3,600.246,840.38	16,810.6522,933.77	5,443.624,800.27	6,958.246,530.21	5,085.787,381.64	23,013.2325,491.77
Total Expenses (a to i)Other expenses	42,249.38	62,693.72	48,969.76	190,750.06	49,300.66	67,160.89	53,062.49	207,402.53
Profit / (loss) before exceptional items and tax (3 - 4)	5,888.47	10,391.98	8,442.46	29,314.14	5,644.71	11,507.49	8,269.78	29,182.19
Exceptional ltems (refer note: 9)		254.96		254.96				254.96
Profit / (loss) before tax (5 - 6)	5,888.47	10,137.02	8,442.46	29,059.18	5,644.71	254.96	8,269.78	28,927.23
Current TaxTax Expense	1,400.59	2,023.12	1,778.40	6,046.55	1,405.74	2,027.75	1,785.06	6,067.59
Tax relating to earlier years		13.98		49.58	(3.39)	3.24		52.38
MAT credit entitlementDeferred Tax	(283.87)	(365.38)(749.87)	(200.71)(535.52)	(591.11)(2,772.34)	(283.88)	(416.36)(708.80)	(200.71)(535.52)	(591.11)(2, 782.25)
Total Tax Expense	1,116.72	921.85	1,042.17	2,732.68	1,118.47	905.83	1,048.83	2,746.61
Net Profit/(Loss) after tax (7 - 8)	4,771.75	9,215.17	7,400.29	26,326.50	4,526.24	10,346.70	7,220,95	26,180.62
Share of profit / (loss) of associates and joint Controlled Entity					(72.09)	424.59	15.85	308.60
Net Profit/(Loss) after tax and share of profit / (loss) of associates andjoint controlled entity (9 + 10)	4,771.75	9,215.17	7,400.29	26,326.50	4,454.15	10,771.29	7,236.80	26,489.22
Shareholders of the CompanyNon-Controlling InterestAttributable to:	$\mathcal{A}$				4,289.42164.73	(115.23)10,886.52	(3.07)7,239.87	HELENGALDEE A(561,90)27,051.12
Other Comprehensive Income (OCI) [Net of tax]	(0.20)	94.14	(31.64)	(0.77)	0.03	94.08	(31.36)	0.16
Total Comprehensive Income (11+12)	4,771.55	9,309.31	7,368.65	26,325.73	4,454.18	10,865.37	7,205.44	26,489.38
Shareholders of the CompanyNon-Controlling InterestAttributable to:	$\bullet$				4,289.45164.73	(115.23)10,980.60	(3.07)7,208.51	(561.90)27.051.28
Paid up equity share capital (Face Value Rs.2/- per share)Other Equity	2,812.35	2,812.35	2,812.35	2,812.35138,618.54	2,812.35	2,812.35	2,812.35	2.812.35127420.26iSci
Earnings Per Share (EPS)b. Diluted EPS Rsa. Basic EPS Rs.	3.39*3.39*	$6.55*$$6.55*$	$5.26*$$5.26*$	$18.72$18.72	$3.05*$$3.05*$	$7.74*$$7.74*$	Ġ,Š	Á994۶

Notes:
	1. The above results have been reviewed by the Audit Committee and approved by the Board of Directors of the Company at its meeting held on August 14, 2019.
$\mathbf{r}$	ed under the section 133 of the Companies Act, 2013 read with SEBI circular No.CIR/CFD/FAC/62/2016 dated July 5, 2016 & amendments theretoThe above results are in compliance with the Indian Accounting Standards (IND AS) specifi-and were subjected to limited review by the statutory Auditor of the company
بب	The Statutory Auditors have earned out limited review of the unaudited standalone and consolidate for quarter ended June 30, 2019, and the unaudited consolidated figures for the Quarter ended March 31, 2019 and June30, 2018 are not subjected to limited review by Statutory Auditor.
₹	een the audited figures in respect of the full financial year ended March 31, 2019 and unaudited published year to date standalone figures up to NineThe Standalone figures for the quarter ended March 31, 2019 are the balancing figures betwmonths ended December 31, 2018.
n	The Consolidated figures for the quarter ended March March 131, 2019 are the balancing figures the audited singspect of the full financial year ended March 31, 2019 and unaudited year to date Consolidated figures up to Ninmonths ended December 31, 2018.
Ö	transitioning to Ind AS116 with right-of-use asset recognized at an amount equal to the lease itability. Accordingly, comparatives for the year ended March 31, 2019 have not been retrospectively adjusted, and the impact ofto all lease contracts existing on the date of initial application i.e. April 1, 2019. The Company has used the modified retrospective approach forThe Company has adpoted lnd AS 116 'Leases' from April 1, 2019 and applied the standardstatement of profit or loss for the quarter is not material.
Ľ,	The company is primarily engaged in "Construction and Engineering activities" and there are no other reportable segments under Ind As 108 "Operating Segments".
œ	Infra Private Limited on 28-01-2019, 2) KNR Chidambaram Infra Private Limited on 11-02-2019, Findala Infra Private Limited on 11-02-2019. Pursuant to SPAs, the Company will, in a phased manner, sell to the Investor its entThe Company has entered into Share Purchase Agreements (the "SPAs") with Cube Highways and Infrastructure III Ptc. Ld. (the "Investor") for the following 3 wholly owned subsidiaries (the 'SPVs") of HAM Projects - 1) KNR Srshareholding in the SPVs, subject to the shareholding transfer restrictions set out in the concession agreement (s) executed between National Highway Authority of India and the respective SPVs and subject to various regulaapprovals.
$\overline{\phantom{a}}$o,	During the previous year and quarte ended March 31, 2019, the company has written off its investments in two foreign subsidiary companies which is amounting to Rs. 234.96 lakhs, which is reflected as exceptional items in tFigures for the previous year/period have been regrouped/re-classified to confirm to the figures of the current period.Profit and Loss.
	Ŏ∾āĿΩ$\hat{\mathbb{I}}$SKNKedFor KNR Constructions Ltd
	WESTERCHARTK. Narsimha ReddyManaging DirectorDate: 14-08-2019Place: Hyderabad

K. P. RAO K, VISWANATH K.P. SIDDHARTH DESMONDJ. REBELLO V. NARAYANAN H.N. ANIL S. PRASHANTH MOHAN R LAVI P. RAVINDRANATH

Ph.: M0-23322310 E Mail : info.hyderabad@kprao.co.in

Limited review report on Standalone Unaudited Quarterly Financial Results of KNR Constructions Limited pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

TO THE BOARD OF DIRECTORS OF KNR CONSTRUCTIONS LIMITED

1. We have reviewed the accompanying Statement of standalone unaudited financial results ("the Statement'') of KNR Constructions Limited (the 'Company') for the quarter ended June 30, 2019 being submitted by the Company pursuant to the requirements of Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.

The preparation of the Statement in accordance with the recognition and measurement principles laid down in Indian Accounting Standard for Interim Financial Reporting Ind AS 34, prescribed under section 133 of Companies Act, 2013 read with relevant rules issued thereunder, other accounting principles generally accepted in India and SEBI (Listing Obligations and Disclosure Requirements) Regulations,2O1.5, as amended, is the responsibility of the Company's management and has been approved by the Board of Directors of the Company. Our responsibility to is to express a conclusion on the Statement based on our review.

1. We conducted our review in accordance with Standard on Review Engagements (SRE) 241.0, "Reaieru of [nteim Financial Inforumtion Perforrued 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 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, wc do not express ern audit opinion.

Head Office Bangalore:'Poornima', llnd Floor, 25, State Bank Road, Bangalore - 560 OO1. Ph.:080-25587385/25586814 Branches Mysore :74, Znd Main, First Stage, Vijayanagar, Mysore - 57O 017. Ph.: 0821-2517971 Chennai : Flat 2-A, Second Floor, Shruthi 3/7,81h Cross Street, Shastrinagar, Adayar, Chennai - 5OO 020. Ph.:044-24903137 I 45511564

K. P. RAO & CO. Conhnuation Sheet CHARTERED ACCOUNTANTS

1. Based on our review, nothing has come to our attention that causes us to believe that the accompanying Statements prepared in accordance with the applicable Indian Accounting Standards and the 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, read with SEBI Circular no CIR/CFD/FAC/62/201,6 dated July 5, 2016, including the manner in which it is to be disclosed, or that it contains any material misstatement.

For K.P. & Co., Number:0031355 s

Place: Hyderabad Date: August1,4,2019

P .\ Membership Number : 029340 UDIN : 79029340 AA AAAP5887

K. P. RAO K. VISWANATH K.P. SIDDHARTH DESMOND J. REBELLO V, NARAYANAN H.N. ANIL S. PRASHANTH MOHAN RLAVI P. RAVINDRANATH

Ph; 040-23322310 E Mail : info.hyderabad@kprao.co.in

Limited review report on Consolidated Unaudited Quarterly Financial Results of KNR Constructions Limited pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

TO THE BOARD OF DIRECTORS OF KNR CONSTRUCTIONS LIMITED

1. We have reviewed the accompanying Statement of Consolidated Unaudited Financial Results of KNR Constructions Limited (the "Parent") and its subsidiaries (the Parent and its subsidiaries together referred to as the "Group"), and its share of the net profit/(loss) after tax and total comprehensive income / loss of its associates and joint venfure for the quarter ended ]une 30, 2019 (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. Attention is drawn to the fact that the consolidated figures for the quarters ended 30 ]une 2018 and 31 March 201,9, as reported in these financial results have been approved by the Parent's Board of Directors, but have not been subjected to review since the requirement of submission of quarterly consolidated financial results has become mandatory only from 1 April 20-t9.

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 the Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Comparries Act,2013 read with relevant rules issued thereunder 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 in accordance with Standard on Review Engagements (SRE) 2410, " Reaiew of lnteint Financtal lnfonnatiort Perfornrcd 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 rnoderate assurance as to whether the 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.

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

Head Office Bangalore : 'Poornima', llnd Floor, 25, State Bank Road, Bangalore - 560 001. Ph.:080-25587385/ 25586814 Branches

Mysore ;74,2nd Main, First Stage, Vijayanagar, Mysore - 57O 017.Ph.: 0821-2517971 Chennai : Flat 2-A, Second Floor, Shruthi 3/7,8th Cross Street, Shastrinagar, Adayar, Chennai - 600 020' Ph.:044'24903137 145511564

K. P. RAO & CO. Continuation Sheet C] HARTE RED ACCOUNT,TNTS

• 1. The Staternent includes the results of the entities listed in the attached Annexure A.
• 1. Based on our review conducted and procedures performed as stated in paragraph 2 above and based on the consideration of the review reports of other auditors as referred in paragraph 5 below, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognihion and measurement principles laid down in the aforesaid Indian Accounting Standard and other accountilrg principles generally accepted in lndia, has not disclosed the information required to be disclosed in terms of Regulation .33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2075, 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 information of 10 joint operations included in the Standalone unaudited interim financial results whose financial information reflect the total revenue of 7 7552.19lakhs, total profit after tax (net) of T 259.24 lakhs and total comprehensive income(net) of ( nil for the quarter ended June 30, 2019, as considered in the respechve standalone unaudited interim results. The interim financial information of these joint operations have been reviewed by the other auditors whose reports have been furnished to us, and our conclusion in so far as it relates to the amounts and disclosures included in respect of these joint operations, is based solely on the report of such other auditors and the procedures performed by us as stated in paragraph 2 above.

We did not review the interim financial information of 11 subsidiaries (including one consolidated subsidiary) included in the consolidated unaudited financial information, whose interim financial information reflect total revenues of { 27239.721akhs, total profit after tax (net) of ? 1.035.27 lakhs and total comprehensive income (net) of T 0.23 lakhs, for the quarter ended June 30, 2019, as considered in the consolidated unaudited financial results. The consolidated unaudited financial results also includes the Group's share of total profit after tax (net) of 7 72.09 for the quarter ended ]une 30, 2019, as considered in the consolidated unaudited financial results, in respect of 2 associates, whose interim financial information have not been reviewed by us. These interim financial information 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 these subsidiaries, associates is based solely on the reports of the other auditors and the procedures performed by us as stated in paragraph 2 above.

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

1. We did not review the interim financial information of 4 joint operations included in the Standalone unaudited interim financial resulis whose financial information reflect total revenue of { nil, profit after tax (net) of t (0.6,8) lakhs and total comprehensive income (net) of { nil for the quarter ended June 30, 20'19, as considered in the Standalone unaudited interim financial results. The interim financial information of these joint operations have not been reviewed by their auditors whose financial information have been furnished to us by the Management of the

K. P. RAO & CO. Continuation Sheet CHARTERED ACCOUNTANTS

Company, and our conclusion in so far as it relates to the arnounts and disclosures included in respect of these joint operations, is based solely on such interim financial information certified by the Management of the Company. According to the information and explanations given to us by the Management, these interim financial information are not material to the Company.

Our conclusion on the Statement is not modified in respect of our reliance on the interim financial information certified by the Managernent.

1. The consolidated unaudited financial results also includes the Group's share of net profit after tax (net) of { nil and total net comprehensive income (net) of { nil for the quarter ended }une 30, 2019, as considered in the consolidated unaudited financial results, in respect of one joint venture located in outside L'rdia, based on their interim financial information which have not been reviewed by us and whose financial information has been fumished to us by the Parent's Management. According to the information and explanations given to us by the Management, these interim financial information are not material to the Group. Our conclusion on the Statement is not modified in respect of our reliance on the interim financial information certified by the management.

Our conclusion on the Statement is not modified in respect of our reliance on the interim financial information certified by the Management

K.P Rao & Co., Number:0031355

Mohan R

Partner Membership Number: 029340 UDIN :'t9029340 A AA AAQ4530

Place: Hyderabad Date: August1.4,2079

*

K. P. RAO & CO. CHARTERED ACCOUNTANTS

Annexure A

Subsidiaries

Sl No.	Company Name
1	KNR Agrotech And Beverages Private Limited
2	KNR Infrastructure Projects Private Limited
3	KNR Energy Limited
4	KNR Walayar Tollways Private Limited
5	KNRC Holdings and Investments Private Limited
6	KNR Chidambaram Infra Private Limited
7	KNR Srirangam Infla Private Lirnited
8	KNR Somwarpet Infra Prolects Private Limited
9	KNR Palani Infra Private Limited
10	KNR Tirumala Infra Private Limited
11	KNR Shankarampet Projects Private Limited

Associates

1	Patel KNR Heavy Infrastructures Limited
2	Patel KNR Infrastructures Limited

Joint

Sr. No.	Name of the ]oint Operations
1	KNR - Patel ]V
2	Patel - KNRIV
3	KNR - SLEC IV
4	KNR - BPLJV
5	KNR - GVR IV
6	KNR - ]KM JV
7	KNR . SLMI ]V
8	KNR -TBCPL.JV
9	KNR - PBEPL.JV
10	KNR-SEW-GVR-JV
11	PSK - KNR - GVR -JV
't2	BSCPL - KNR -JV
13	KNR -HES- ACPL -JV
1.4	KNR - IKM . KAMAL. JV

foint Venhrre

SEL - KNR - JV (Bangladesh)1
	4