KRBL Ltd. — Interim / Quarterly Report 2021

Nov 8, 2021

E:KRBL/BIBHU/STK_EX_2122/52 08 November 2021

The General ManagerDepartment of Corporate ServicesBSE LimitedFloor 25, Phiroze Jeejeebhoy TowersDalal Street, Mumbai -400 001	,/	National Stock Exchange of India Limited"Exchange Plaza", C-1, Block-GBandra-Kurla ComplexSandra (E), Mumbai-400051
Scrip Code:530813		Symbol: KRBL	Series: Eq.

Dear Sir/Madam,

Sub: Outcome of Board Meeting held on 08 November 2021

Pursuant to the provisions of Regulation 30 and 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (hereinafter "SEBI Listing Regulations") and other applicable provisions, if any, please note that the Board of Directors of the Company at its meeting held today i.e. 08 November 2021, have inter- alia considered, approved and took on record the following matters:

1. Approval of the Unaudited Financial Results (Standalone and Consolidated) for the Second Quarter (Q2) and Half Year ended 30 September 2021

Upon recommendation of the Audit Committee, the Board of Directors have approved the enclosed Unaudited Financial Results (Standalone & Consolidated) of KRBL Limited for the Second Quarter (Q2) and Half Year ended 30 September 2021.

Further as required pursuant to the provisions of Regulation 47 of SEBI Listing Regulations, the extract of Consolidated Unaudited Financial Results shall also be published in the newspapers.

2. Noting of the Limited Review Report of the Statutory Auditors on the Unaudited Financial Results (Standalone and Consolidated) for the Second Quarter (Q2) and Half Year ended 30 September 2021:

The Board of Directors took note on the enclosed Limited Review Report of the Statutory Auditors on the Unaudited Financial Results (Standalone & Consolidated) of KRBL Limited for the Second Quarter (Q2) and Half Year ended 30 September 2021.

3. Suspension of plan for restructuring of the Company's Energy Segment

This is with reference to our earlier intimation dated 11 August 2020, wherein the Board of Directors of the Company had considered and accorded the In-Principle Approval for evaluation of restructuring of the Company's Energy business including possible hive-off into a separate legal entity, in order to unlock the value of Energy Segment.

In this regard, kindly note that the Board of Directors in its meeting held on today i.e. 08 November 2021, had suspended the plan for restructuring of the Company's Energy business due to several reasons as enumerated below:

• The major challenge due to which the company suspended this plan is due to the challenges faced by the Company in dealing with several state electricity boards for amendment of the existing Power Purchase Agreements (PPAs).
• The process to transfer of land I immovable property including certain forest lands, revenue land etc. is very cumbersome and involve considerable costs.

We further wish to inform that the Board Meeting held on today commenced at 12:00 hours and concluded at 1..5 ~ SO hours.

This is for your kind information and record.

Thanking you,

Yours faithfully, For KRBL Limited

¥~

Raman Sapra Company Secretary

Encl.: As above

Walker Chandiok &.Co LLP

Walker Chandiok & Co LLP L 41, Connaught Circus, Outer Circle, New Delhi - 110 001 India

T +9 1 t 1 450022·19 F +91 11 42787G71

Independent Auditor's Review Report on Standalone Unaudited Quarterly Financial Results and Year to Date 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 KRBL Limited

• 1. We have reviewed the accompanying statement of standalone unaudited financial results ('the Statement') of KRBL Limited ('the Company') for the quarter ended 30 September 2021 and the year to date results for the period 01 April 2021 to 30 September 2021, being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended), including relevant circulars issued by the SEBI from time to time.
• 1. The Statement, which is the responsibility of the Company's Management and approved by the Company'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 ('the Act'), and other accounting principles generally accepted in India and is in compliance with the presentation and disclosure requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 201 5 (as amended), including relevant circulars issued by the SEBI from time to time. Our responsibility is to express a conclusion on the Statement based on our review.

Ch:1rtered Accountants Olncctl In Bonoolu1u, Chondlgorh, Chonnol, Gu1u9rarn. Hydmabed, Koehl. Kolkela, Mumbai, Now Dolhl. Neida and Pldl~

Wal<er Chandiok & Co _LP Is registered with llmiled lrobilily with idenfificollon n,1rrber M C·2085 and Its reglstorsd omoe nl L-4 1 Connaughl ClrcJs, New Doihl, 110001, lndla

Walker Chandiok &..Co LLP

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

• 1. We conducted our review of the Statement in accordance with the Standard 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 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 the Standards on Auditing specified under section 143(10) of the Act, 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.
• 1. As stated in Note 6(C) to the accompanying Statement, the Company's one of the Joint Managing Director had been detained and released on bail by the Enforcement Directorate ('ED') with regard to an ongoing investigation under the Prevention of Money Laundering Act, 2002, for alleged involvement in AgustaWestland case, pursuant to the order of Special Judge, Rouse Avenue Courts dated 30 January 2021 and dated 5 April 2021 , respectively. ED vide their criminal complaint dated 30 March 2021 had made certain allegations against the Company, KRBL DMCC (a subsidiary of the Company) and Mr. Anoop Kumar Gupta. The Board of Directors of the Company had appointed an independent professional firm to review the aforesaid allegations, by undertaking steps as necessary, in order to assess impact of aforesaid matter, if any, on the accompanying Statement and control environment of the Company. Pending the ongoing investigation on the above matter, we are unable to comment on any adjustment that may be required to the accompanying Statement.

Our audit report dated 29 June 2021 and review report dated 13 August 2021 on the standalone financial results of the Company for the year ended 31 March 2021 and for the quarter ended 30 June 2021 , respectively, were also qualified in respect of this matter.

• 1. Based on our review conducted as above, except for the possible effects of the matter described in previous section, 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 Ind AS 34, prescribed under Section 133 of the Act, and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in accordance with the requirements 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 draw attention to:
  • a. Note 6 (A) to the accompanying Statement which describes the details of certain income tax matters currently pending before appropriate appellate authorities as at 30 September 2021. Based on the legal assessment of the outcome of such litigations, the management is of the view that no adjustment is required in the accompanying Statement.

Chartered Accountants

Walker Chandiok &..Co LLP

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

b. Note 6 {B) to the accompanying Statement, wherein it is stated that a portion of land parcels and building thereupon owned by the Company as identified in the aforesaid note has been attached by the Directorate of Enforcement {"ED"), which is being contested by the Company. The Company had filed an appeal with the Appellate Tribunal, PMLA {Government of India), New Delhi, ("Appellate Tribunal") and vide its order dated 17 January 2020, the Appellate Tribunal had ordered to restore the possession in favor of the Company while the aforesaid attachment would continue till the conclusion of the matter. The matter is being contested in the Hon'ble High Court of Delhi ('High Court'). The High Court vide its order dated 23 October 2020 has restored the physical possession of the aforesaid land parcels and building thereupon for specified purposes against a deposit of z 1, 11 3 lacs, as an interim relief until conclusion of the aforesaid matter. Based on the legal assessment of the outcome of the aforesaid matter, the management is of the view that no adjustment is required to the accompanying Statement.

Our opinion is not modified in respect of above matters.

For Walker Chandiok & Co LLP Chartered Accountants Firm Registration No: 001076N/N500013

Rohit Arora Partner Membership No. 504774

UDIN: 21504774AAAAJZ1127

Place: New Delhi Date: 8 November 2021

·.

Regd. Office: 5190, Lahori Gate, Delhi-110006, CIN: L01111DL1993PLC052845, Email: investor@krblindia.com, website: www.krblrice.com, Tel.: +91-11-23968328, Fax: +91-11-23968327

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30 SEPTEMBER 2021

	(Rs. in lakh except as stated otherwise)
			Quarter ended			Half year ended	Year ended
S.No.	Particulars	30-09-2021	30-06-2021	30-09-2020	30-09-2021	30-09-2020	31-03-2021
		(Unaudited)	(Unaudited)	(Unaudited)		(Unaudited) (Unaudited)	(Audited)
1.	Income
(a)	Revenue from operations	1,05,369	1,01,591	1,13,320	2,06,960	1,89,722	3,99,188
(b)	Other income	547	1,491	267	2,038	1,184	2,243
	Total income	1,05,916	1,03,082	1,13,587	2,08,998	1,90,906	4,01,431
2.	Expenses
(a)	Cost of materials consumed	46,648	78,084	74,185	1,24,732	1,35,643	3,14,515
(b)	Purchase of stock-in-trade	6	209	8	215	241	681
(c)	Changes in inventories of finished goods,work-in-progress and stock-in-trade	28,349	(7,673)	5,525	20,676	(5,587)	(39,300)
(d)	Employee benefits expenses	2,572	2,317	2,146	4,889	4,157	8,847
(c)	Finance costs	169	361	315	530	1,153	2,359
(f)	Depreciation and amortisation expense	1,860	1,829	1,804	3,689	3,577	7,190
(g)	0 ther expenses	7,932	9,313	9,354	17,245	14,817	32,065
	Total expenses	87,536	84,440	93,337	1,71,976	1,54,001	3,26,357
3.	Profit before tax (1-2)	18,380	18,642	20,250	37,022	36,905	75,074
4.	Tax expense
(a)	Current tax	4,930	4,805	5,371	9,735	9,629	19,824
(b)	Deferred tax (credit)/ charge	(206)	(274)	(130)	(480)	(329)	(779)
	Tomi tax expense	4,724	4,531	5,241	9,255	9,300	19,045
5.	Profit after tax (3-4)	13,656	14,111	15,009	27,767	27,605	56,029
6.	Other comprehensive income
(a)	Items that will not be reclasified to profit or loss	(17)	(16)	(57)	(33)	(115)	(66)
(b)	Tax expense relating to items that will not bereclasified to profit or loss	5	4	15	9	30	18
(c)	Items tbat will be reclasified to profit or loss	43	(83)	108	(40)	1,048	922
(d)	Tnx expense relating to items that will be reclasified toprofit or loss	(11)	21	(31)	10	(274)	(244)
	Total other comprehensive income/(loss)	20	(74)	35	(54)	689	630
7.	Total comprehensive income (5+6)	13,676	14,037	15,044	27,713	28,294	56,659
8.	Paid-up equity share capital (face value of Re. 1 /-each)	2,354	2,354	2,354	2,354	2,354	2,354
9.	Other equity						3,66,162
10.	Earnings per equity share ("EPS") (face value ofRe.1/- each) (EPS for the quarter not annualized)
(a)	Hnsic	5.80	5.99	6.38	11.80	11 .73	23.80
(b)	Diluted	5.80	5.99	6.38	11 .80	11.73	23.80

Regd. Office: 5190, Lahori Gate, Delhi-110006, CIN: L01111DL1993PLC052845, Email: investor@krblindia.com, website: www.krblrice.com, Tel.: +91-11-23968328, Fax: +91-11-23968327

NOTES TO THE STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30 SEPTEMBER 2021

1. Operating Segments Disclosure as per Ind AS 108 'Operating Segments":

"

	(Rs. in Iakh except as stated otherwise)
			Quarter ended		Half year ended		Year ended
S.No.	Particulars	30-09-2021	30-06-2021	30-09-2020	30-09-2021	30-09-2020	31-03-2021
		(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
1.	Segment revenue
(a)	Agri	1,01,898	98,580	1,10,489	2,00,478	1,84,098	3,89,892
(b)	Energy	4,846	5,406	4,999	10,252	9,717	17,986
	Total segment revenue	1,06,744	1,03,986	1,15,488	2,10,730	1,93,815	4,07,878
	Inter segment revenue - Energy	(1,375)	(2,395)	(2,168)	(3,770)	(4,093)	(8,690)
	Net segment revenue	1,05,369	1,01,591	1,13,320	2,06,960	1,89,722	3,99,188
2.	Segment results
(a)	Agri	16,683	16,894	18,596	33,577	34,357	72,333
(b)	Energy	2,089	2,226	2,089	4,315	3,889	5,513
	Total segment results (before financecosts and tax)	18,772	19,120	20,685	37,892	38,246	77,846
	Less: Finance costs	142	329	265	471	1,043	2,167
	Less: Other unallocable expenditures
	(net of unallocable incomes)	250	149	170	399	298	605
	Total profit before tax	18,380	18,642	20,250	37,022	36,905	75,074
3.	Segment assets
(a)	Agri	3,95,531	3,84,365	3,37,462	3,95,531	3,37,462	3,99,700
(b)	Energy	62,326	62,797	66,234	62,326	66,234	62,221
	Total segment assets	4,57,857	4,47,162	4,03,696	4,57,857	4,03,696	4,61,921
4.	Segment liabilities
(a)	Agri	42,372	34,654	34,479	42,372	34,479	45,752
(b)	Energy	1,804	2,272	3,068	1,804	3,068	2,303
(c)	Unallocable	25,691	27,684	25,998	25,691	25,998	45,350
	Total segment liabilities	69,867	64,610	63,545	69,867	63,545	93,405
	Si:gmi:m i:vi:nu ~ - Gi:ogrnn hlr!tlinformation:
(a)	Agri
	India	73,443	48,337	43,535	1,21,780	79,520
	Rest of the world	28,455	50,243	66,954	78,698	1,04,578	2,00,225
	Sub-total (a)						1,89,667
	Energy	1,01,898	98,580	1,10,489	2,00,478	1,84,098	3,89,892
(b)	India	4,846	5,406	4,999	10,252
	Rest of the world	-	-	-		9,717	17,974
	Sub-total (b)				-	-	12
	Total (a)+(b)	4,8461,06,744	5,406	4,999	10,252	9,717	17,986
	Inter-segment revenue - Energy	(1 ,375)	1,03,986(2,395)	1,15,488(2, 168)	2,10,730	1,93,815	4,07,878
	Total				(3,770)	(4,093)	(8,690)
		1,05,369	1,01,591	1,13,320	2,06,960	1,89,722	3,99,188

Regd. Office: 5190, Lahori Gate, Delhi-110006, CIN: L01111DL1993PLC052845, Email: investor@krblindia.com, website: www.krblrice.com, Tel.: +91-11-23968328, Fax: +91-11-23968327 NOTES TO THE STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30 SEPTEMBER 2021

2 Unaudited Standalone Statement of Assets and Liabilities

·.

		(Rs. in lakh except as stated otherwise)
	Particulars	30-09-2021	31-03-2021
A.	ASSETS	(Unaudited)	(Audited)
1.	Non-current assets
	(a) Property, plant and equipment	85,013	86,862
	(b) Capital work-in-progress	1,416	891
	(c) Right of use assets	6,119	6,469
	(d) Other intangible assets	137	143
	(e) Intangible Assets under development	32	16
	(t) Financial assets
	(i) Investments	427	427
	(ii) Loans	7	23
	(iii) Other financial assets	1,159	1,060
	(g) Other non-current assets	22,467	25,562
	Sub total non-current assets	1,16,777	1,21,453
2.	Current assets
	(a) Inventories	2,01,598	2,96,421
	(b) Financial assets
	(i) Investments	88,320	1,889
	(ii) Trade receivables	38,137	20,129
	(iii) Cash and cash equivalents	3,586	15,873
	(iv) Bank balances other than (iii) above	1,450	233
	(v) Loans	24	30
	(vi) Other financial assets	2,283	2,900
	( c) Other current assets	5,682	2,993
	Sub total current assets	3,41,080	3,40,468
	TOTAL ASSETS	4,57,857	4,61,921
B.	EQUITY AND LIABILITIES
1.	Equity
	(a) Equity share capital	2,354	2,354
	(b) Other equity	3,85,636	3,66,162
	Sub total shareholder's fund	3,87,990	3,68,516
	Liabilities
2.	Non-current liabilities
	(a) Financial liabilities
	(i) Borrowings	-	597
	(ii) Lease liabilities	5,204	5,324
	(b) Provisions	943	874
	(c) Deferred tax liabilities (net)	13,329	13,809
	Sub total non-current liabilities	19,476	20,604
3.	Current liabilities
	(a) Financial liabilities
	(i) Borrowings	9,820	30,181
	(ii) Trade payables
	- Total outstanding due to micro enterprises and small	568	698
	enterprises
	- Total outstanding dues of creditors other than micro	7,577	21,238
	enterprises and small enterprises
	(iii) Lease liabilities	742	828
	(iv) Other financial liabilities	25,981	15,445
	(b) Other current liabilities	2,672	2,688
	(c) Provisions	562	419
	(d) Current tax liabilities (net)	2,469	1,304
	Sub total current liabilities	50,391	72,801
	TOTAL EQUITY AND LIABILITIES	4,57,857	4,61,921

Regd. Office: 5190, Lahori Gate, Delhi-110006, CIN: L01111DL1993PLC052845, Email: investor@krblindia.com, website: www.krblrice.com, Tel.: +91-11-23968328, Fax: +91-11-23968327 NOTES TO THE STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30 SEPTEMBER 2021

3. Unaudited Standalone Statement of Cash Flow

(Rs. in lakh except as stated otherwise)

	Particulars	30 September 2021	For the period ended For the period ended30 September 2020
A	Cash flow from operating activities
	Profit before tax	37,022	36,905
	Adjustment for :
	Depreciation and amortisation expenses	3,689	3,577
	(Profit)/loss on sale of property, plant and equipment	2	(2)
	Net unrealised foreign exchange loss	(15)	134
	(Profit)/loss on sale of investments	(469)	(132)
	Balance credit impaired	1	1
	Liabilities/provisions no longer required written back	(12)	(5)
	Gain on modification/termination of Lease	(6)	(82)
	Finance costs	530	1,153
	Interest income	(120)	(259)
	Dividend income	(3)	(6)
	Operating profit before working capital changes	40,619	41,284
	Adjustments for working capital changes :
	Decrease in financial and other assets	1,010	870
	Decrease in inventories	94,823	83,191
	Increase in trade receivables	(18,025)	(15,500)
	Decrease in trade payables	(13,780)	(29,617)
	Increase in liabilities and provisions	1,319	3,297
	Cash generated from operations	1,05,966	83,525
	Income tax paid (net)	(8,551)	(8,524)
	Net cash flow from operating activities (A)	97,415	75,001
B	Cash flow from investing activities
	Purchase of property, plant and equipment and intangible assets 1	(1,855)	. (1,865)
	Sale of property, plant and equipment	9	25
	Sale proceeds from investments	13,999	12,000
	Purchase of investments	(13,494)	(12,500)
	Movement from deposits (net)	6	(510)
	Interest received	73	202
	Dividend income	3	6
	Net cash used in investing activities (B)	(1,259)	(2,642)
	c Cash flow from financing activities
	Qlcpaymcnt) of non current borrowings	(682)	(673)
	Payment of lease liabilities	(412)	(358)
	Repayment of current borrowings (net)	(20,276)	(36,419)
		(606)	(2,075)
	Finance cost paidDividend paid	-	(761)
	Dividend distribution tax paid	-	-
	Net cash used in financing activities (C)	(21,976)	(40,286)
D	Net increase in cash and cash equivalents during the period (A+ B+C)	74,180	32,073
	Cash and cash equivalents-opening balance	15,873	1,345
	Cash and cash equivalents-closing balance	90,053	33,418

Notes

1. Net of movement in capital work-in-progress and capital advances.

2. The above cash flow statement has been prepared under the ' indirect method' as set our in Ind AS 7, 'Statement of cash flows'.

		30 September 2021	For the period ended For the period ended30 September 2020
3.	Cash and cash equivalents comprises of
	Cash in hand	44	64
	Balances with banks	3,542	5,214
	Cash and cash equivalents	3,586	5,278
	Add: Investment in liquid mutual funds	86,467	28,140
	Cash and cash equivalents in cash flow statement	90,053	33;418

Regd. Office: 5190, Lahori Gate, Delhi-110006, CIN: L01111DL1993PLC052845, Email: investor@krblindia.com, website: www.krblrice.com,

Tel.: +91-11-23968328, Fax: +91-11-23968327

·.

NOTES TO THE STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30 SEPTEMBER 2021

• 4 The above standalone unaudited financial results of KRBL Limited ("the Company") have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meeting held on 8 November 2021. The statutory auditors have carried out a limited review of standalone unaudited financial results of the Company for the quarter ended 30 September 2021, in accordance with Regulation 33, of the Securities and Exchange Board of India (Listing and Other Disclosure Re(1uircments) Regulation, 2015.
• 5 Tbe financial results have been prepared in accordance with the Indian Accounting Standards ('Ind AS') notified under the Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time, specified in Section 133 of the Companies Act, 2013.
• 6 (A) During the financial year 2018-19, the Company had received Income-tax demand notices w.r.t. Assessment year(s) 2010-11 to 2016-17, which were contested before the Commissioner (Appeals) l'CTT(A)'I, New Delhi and against which CIT(A) had granted partial relief on certain issues in favour of the Company.

The Company filed further appeals before I-Ion'ble Income-tax Appellate Tribunal ('!TAT'), New Delhi on 18 June 2020, for remaining issues smtaincd by CIT(A) in respect of income-tax demand of Rs. 6, 132 lacs and interest of Rs. 3,752 lacs.

The Income-tax Department ('ITD') also filed appeals with the 1-Ion'ble ITAT, New Delhi in respect of the issues allowed by CIT(A) in favour of the Company.

Further, the Company received penalty orders for A Y 2010-11 to 2016-17 on the issues sustained by CIT(t) to the tune of Rs.11,896 lacs. T n respect of the same, the Company filed appeals before C:IT(A), New Delhi. The Company also filed stay applications with Hon'ble ITAT, New Delhi against recovery of demand arising of such penalty orders and l-lon'ble JTAT vidc its order dated 22 July 2021, directed the !TD to not enforce the recovery of penalty demand till the disposal of Company's quantum appeals by the ITAT.

All the quantum appeals, filed by Company and ITD, have been duly and extensively heard by the 1-Ion'ble ITAT, and the order on these appeals has been reserved.

Since, the Company had already deposited an amount of Rs. 21,900 lacs, under protest, in respect of tax demand raised by the ITD, during the quarter ended 30 September 2021, the Company received an amount of Rs. 3,154 lacs, as part realization of the above amount paid under protest.

The.: management, based on legal assessment, is confident that it has a favourable case and the remaining income-tax demand, to the extent sustained by CIT(A) shall also be deleted by the l-Ion'ble ITAT.

The auditors of the Company have invited attention to the aforementioned issue in their review report for the quarter and half year ended 30 September 2021.

6 (B) A portion of land parcels and building thereupon, situated at Dhuri, Punjab was attached by the Directorate of Enforcement ('ED') to the extent of value of Rs. 1,532 lacs in connection with a money laundering investigation. The Appellate Tribunal, PMLA, New Delhi, ("Appellate Tribunal") had restored the possession of the attached land on interim basis in favour of the Company. However, aforesaid attachment would continue till conclusion of the matter. Against the order of the Appellate Tribunal, ED had filed an appeal before the 1-Ion'ble High Court of Delhi, which is pending for hearing The Company filed an application before the 1-lon'ble High Court of Delhi for restoration of possession of the land in favour of the Company and High court allowed the Company to take physical possession of the said land parcels and building thereupon for specified purpose against the deposit of Rs. 1, 113 lacs, (deposited on 5 November 2020), as an interim relief until conclusion of the aforesaid matter, without prejudice to the rights and contentions of the parties to be decided in the appeal. The management based upon the legal assessments, is confident that it bas a favourable case and the said attachment shall be vacated.

The auditors of the Company have invited attention to the aforementioned issue in their review report for the quarter and and half year ended 30 Sentcmbcr 2021.

6 (C) The Company's Mr.Anoop Kumar Gupta, Joint Managing Director ('JMD') had been detained and released on bail by the Directorate of Enforcement ('ED') pursuant to certain allegations against tbe Company, KRBL DMCC (a subsidiary of KRBL Limited) and JMD. J\s per criminal complaint filed it is alleged that M/s Rawasi Al Khaleej General Trading LLC ('Rt\KGT') had received proceeds of crime of USD 24.62 million in J\gustaWestland case during the period 2008-2010 which in turn had been transfcned to KRBL Limited through KRBL DMCC. Hasis the affidavit filed by Balsharaf Group (one of the Customer of the Company) in the l-Ion'ble High Court of Delhi in the said matter, the amount of USD 24.62 million had been received by Balsharaf Group from Rt\KGT. Pursuant to this, ED had attached 1,43,33,221 shares of Balsharaf Group held in KRBL Limited. Based on the opinion taken from the independent legal counsel, the management is of the view that since the investigation is still ongoing no adverse opinion can be drawn. The Company has already appointed an independent professional firm to review the aforesaid allegations, by undertaking steps as necessary, in order to assess impact of aforesaid matter, if any, on the financial results and control environment of the Company. Pending the ongoing investigation on the above matter, no adjustment has been made in the unaudited standalone financial results. The management of the Company is confident that the above stated matter will be resolved soon.

The auditors of the Company have gualified to the aforementioned issue in their review report for the quarter and and half year ended 30 September 2021.

7 During the period, the Company received directions from Punjab Pollution Control Hoard ('Punjab PCB') for restraining the operations of its unit situated at Dhuri, Distt. Sangrur, Punjab, in compliance to the orders dated 02July 2021 passed by the 1-Jon'ble National Green Tribunal (NGl). In this rq,>ard, the Company had filed an appeal before the I lon'ble Supreme.: Court and the I Ion'ble Supreme Court vidc its order dated 13 July 2021 had passed an order stating that the parties arc directed to maintain the status CJUO as it exists today. Thcrcforc, the o · , in the unit continues as usual since then till date. The management of the Company is confident that the above stated matter · ~ <m as the Company's unit is fully compliant with all environmental norms and permits.

• 8 The Board of Directors of the Company in their meeting 29 June 2021, have recommended a final dividend of Rs 3.50 (350%) per paid up equity share of Re 1/- each, aggregating to Rs 8,239 lacs for the financial year ended 31 March 2021, which has been approved by the shareholders in the Annual General Meeting held on 30 September 2021. .
• 9 The figures for the corresponding previous periods/year have been regrouped/ reclassified, wherever necessary, to make them comparable.

For and on behalf of Board of Directors of KRBL Limited

Place: N oida Date: 08 November 2021

Walker Chandiok &.Co LLP

Walker Chandiok & Co LLP L 4·1, Connaught ctrcus, Outer Circle, New Delhi - 110 OCH India

T +91 11 450G22"19 F +9111 42787071

Independent Auditor's Review Report on Consolidated Unaudited Quarterly Financial Results and Year to Date 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 KRBL Limited

• 1. We have reviewed the accompanying statement of unaudited consolidated financial results ('the Statement') of KRBL Limited ('the Holding Company') and its subsidiaries (the Holding Company and its subsidiaries together referred to as 'the Group'), (refer Annexure I for the list of subsidiaries included in the Statement) for the quarter ended 30 September 2021 and the consolidated year to date results for the period 01 April 2021 to 30 September 2021, being submitted by the Holding Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended), including relevant circulars issued by the SEBI from time to time.
• 1. This Statement, which is the responsibility of the Holding Company's management and approved by the Holding Company'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 ('the Act'), and other accounting principles generally accepted in India and is in compliance with the presentation and disclosure requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended), including relevant circulars issued by the SEBI from time to time. 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) 2410, 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 the Standards on Auditing specified under section 143(10) of the Act, 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 SEBI Circular CIR/CFD/CMD1 /44/2019 dated 29 March 2019 issued by the SEBI under Regulation 33 (8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended), to the extent applicable.

1Gurugram. Hyderabad, Kochl, l<olkala, Mumbai, New Delhi, NoitJa i1nd Pum>

Ch:u1ered Accounlanls Of!'lceG In Bonooluru, Ch:mdig.uh. Chennal Wal<er Chandklk & Co -LP Is rogiatorcd with lirni od lr(lbility wilt\ identifiQntion number AAC-2()85 ood its registetOd omco :JI L...S 1 Coonaughl ClccJS, New OO:ltil, 11000 1, lndla

Walker Chandiok &..Co LLP

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

1. As stated in Note 6 (C) to the accompanying Statement, the Holding Company's one of the Joint Managing Director had been detained and released on bail by the Enforcement Directorate ('ED') with regard to an ongoing investigation under the Prevention of Money Laundering Act, 2002, for alleged involvement in AgustaWestland case, pursuant to the order of Special Judge, Rouse Avenue Courts dated 30 January 2021 and dated 5 April 2021, respectively. ED vide their criminal complaint dated 30 March 2021 had made certain allegations against the Holding Company, KRBL DMCC (a subsidiary of the Holding Company) and Mr. Anoop Kumar Gupta. The Board of Directors of the Holding Company had appointed an independent professional firm to review the aforesaid allegations, by undertaking steps as necessary, in order to assess impact of aforesaid matter, if any, on the accompanying Statement and control environment of the Holding Company. Pending the ongoing investigation on the above matter, we are unable to comment on any adjustment that may be required to the accompanying Statement.

Our audit report dated 29 June 2021 and review report dated 13 August 2021 on the consolidated financial results of the Group for the year ended 31 March 2021 and for the quarter ended 30 June 2021, respectively, were also qualified in respect of this matter.

• 1. Based on our review conducted and procedures performed as stated in paragraph 3 above, except for the possible effects of the matter described in previous section, 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 Ind AS 34, prescribed under Section 133 of the Act, and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in accordance with the requirements 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 draw attention to:
• a. Note 6 (A) to the accompanying Statement which describes the details of certain income tax matters currently pending before appropriate appellate authorities as at 30 September 2021. Based on the legal assessment of the outcome of such litigations, the management is of the view that no adjustment is required in the accompanying Statement.
• b. Note 6 (B) to the accompanying Statement, wherein it is stated that a portion of land parcels and building thereupon owned by the Holding Company as identified in the aforesaid note has been attached by the Directorate of Enforcement ("ED"), which is being contested by the Holding Company. The Holding Company had filed an appeal with the Appellate Tribunal, PMLA (Government of India), New Delhi, ("Appellate Tribunal") and vide its order dated 17 January 2020, the Appellate Tribunal had ordered to restore the possession in favor of the Holding Company while the aforesaid attachment would continue till the conclusion of the matter. The matter is being contested in the Hon'ble High Court of Delhi ('High Court'). The High Court vide its order dated 23 October 2020 has restored the physical possession of the aforesaid land parcels and building thereupon for specified purposes against a deposit of ~ 1, 11 3 lacs, as an interim relief until conclusion of the aforesaid matter. Based on the legal assessment of the outcome of the aforesaid matter, the management is of the view that no adjustment is required to the accompanying Statement.

Our conclusion is not modified in respect of above matters.

Chartered Accountants

Walker Chandiok &.Co LLP

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

1. The Statement includes the interim financial results of three subsidiaries, which have not been reviewed by their auditors, whose interim financial results reflect total assets of~ 1,284 lacs as at 30 September 2021, and total revenues of ~ 57 lacs and ~ 135 lacs, net loss after tax (including total comprehensive loss) of ~ 34 lacs and 34 lacs for the quarter and six-months period ended 30 September 2021 respectively, net cash flow of~ 14 lacs for the half year ended 30 September 2021 as considered in the Statement. Our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries are based solely on such unreviewed interim financial results. According to the information and explanations given to us by the management, these interim financial results are not material to the Group.

Our conclusion is not modified in respect of this matter with respect to our reliance on the financial results certified by the Board of Directors.

For Walker Chandiok & Co LLP Chartered Accountants Firm Registration No: 001076N/N500013

Rohit Arora Partner Membership No. 504774

UDIN: 21504774AAAAKA1452

Place: New Delhi Date: 8 November 2021

Chartered Accountants

Walker Chandiok &.Co LLP

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

Annexure I

List of subsidiaries and step-down subsidiary included In the Statement

1. KRBL DMCC;

2. KRBL LLC, a subsidiary of KRBL DMCC; and,

3. KB Exports Private Limited.

Regd. Office: 5190, Lahori Gate, Delhi-110006, CIN: L01111DL1993PLC052845, Email: investor@krblindia.com, website: www.krblrice.com, Tel.: +91-11-23968328, Fax: +91-11-23968327

STATEMENT OF CONSOLIDATED UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30 SEPTEMBER 2021

	(Rs. in lakh except as stated otherwise)
		Half year endedQuarter ended					Year ended
S.No.	Particulars	30-09-2021	30-06-2021	30-09-2020	30-09-2021	30-09-2020	31-03-2021
		(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited) (Unaudited)		(Audited)
	Income
1.			1,01 ,591	1,13,320	2,06,960	1,89,722	3,99,188
(a)	Revenue from operations	1,05,369
(b)	Other income	553	1,497	274	2,050	1,198	2,268
	Total income	1,05,922	1,03,088	1,13,594	2,09,010	1,90,920	4,01,456
2.	Expenses
(a)	Cost of materials consumed	46,648	78,084	74,185	1,24,732	1,35,643	3,14,515
(b)	Purchase of stock-in-trade	6	209	8	215	241	681
(c)	Changes in inventories of finished goods,work-in-progress and stock-in-trade	28,349	(7,673)	5,525	20,676	(5,587)	(39,300)
(d)	Employee benefits expenses	2,658	2,421	2,234	5,079	4,317	9,221
(e)	Finance costs	169	361	315	530	1,153	2,359
(t)	Depreciation and amortisation expense	1,861	1,830	1,806	3,691	3,580	7,195
(g)	Other expenses	7,885	9,249	9,299	17,134	14,718	31,849
	Total expenses	87,576	84,481	93,372	1,72,057	1,54,065	3,26,520
3.	Profit before tax (1-2)	18,346	18,607	20,222	36,953	36,855	74,936
4.	Tax expense			5,371	9,735	9,629	19,824
(a)	Current tax	4,930	4,805
(b)	Deferred tax (credit)/ charge	(206)	(274)	(130)	(480)	(329)	(779)
	Total tax expense	4,724	4,531	5,241	9,255	9,300	19,045
5.	Profit after tax (3-4)	13,622	14,076	14,981	27,698	27,555	55,891
6.	Other comprehensive income
(a)	I terns that will not be reclasified to profit orloss	(17)	(16)	(57)	(33)	(115)	(66)
(b)	Income tax relating to items that will not be	5	4	15	9	30	18
(c)	reclasified to pro fit or lossI terns that will be reclasified to profit or loss	41	(66)	83	(25)	1,022	888
(d)	Income tax relating to items that will be	(11)	21	(31)	10	(274)	(244)
	reclasified to profit or lossothercomprehensiveTotal	18	(57)	10	(39)	663	596
	income/(loss)
7.	Total comprehensive income (5+6)	13,640	14,019	14,991	27,659	28,218	56,487
(a)	Net profit attributed to :
	Owner of the Holding Company	13,622	14,076	14,981	27,698	27,555	55,891
	Non controlling interest*	0	0	0	0	0	0
(b)	Other comprehensive income
	attributed to:
	Owner of the Holding CompanyNon controlling interest	18-	(57)0	10-	(39)-	663-	5960
8.	Paid-up equity share capital (face value ofIle. 1 /- each)	2,354	2,354	2,354	2,354	2,354	2,354
9.	Other equity	-	-	-	-	-	3,66,897
	Earnings per equity share ("EPS") (face
10.	~value of Re.1/-each) rEPS for theL I ~quarter not annu
(a)	CLla	5.79	5.98	6.36	11.77	11.71	23.74
(b)	~~ .)I/'(1\ IDilutedIO:~	5.79	5.98	6.36	11.77	11.71	23.74
	~\Jv-·

--*

Regd. Office: 5190, Lahori Gate, Delhi-110006, CIN: L01111DL1993PLC052845, Email: investor@krblindia.com, website: www.krblrice.com, Tel.: +91-11-23968328, Fax: +91-11-23968327

NOTES TO THE STATEMENT OF CONSOLIDATED UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30 SEPTEMBER 2021

1. Operating Segments Disclosure as per Ind AS 108 'Operating Segments":

	(Rs. in lakh except as stated otherwise)
		Half year endedQuarter ended					Year ended
S.No.	Particulars	30-09-2021	30-06-2021	30-09-2020	30-09-2021	30-09-2020	31-03-2021
		(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
1.	Segment revenue
(a)	Agri	1,01,898	98,580	1,10,489	2,00,478	1,84,098	3,89,892
(b)	Energy	4,846	5,406	4,999	10,252	9,717	17,986
	Total segment revenue	1,06,744	1,03,986	1,15,488	2,10,730	1,93,815	4,07,878
	Inter segment revenue - Energy	(1,375)	(2,395)	(2,168)	(3,770)	(4,093)	(8,690)
	Net segment revenue	1,05,369	1,01,591	1,13,320	2,06,960	1,89,722	3,99,188
2.	Segment results
(a)	Agri	16,649	16,859	18,568	33,508	34,307	72,195
(b)	Energy	2,089	2,226	2,089	4,315	3,889	5,513
	Total segment results (before finance	18,738	19,085	20,657	37,823	38,196	77,708
	costs and tax)
	Less: Finance costs	142	329	265	471	1,043	2,167
	Less: Other unallocable expenditures	250	149	170	399	298	605
	(net of unallocable incomes)
	Total profit before tax	18,346	18,607	20,222	36,953	36,855	74,936
3.	Segment assets
(a)	Agri	3,96,391	3,85,225	3,38,405	3,96,391	3,38,405	4,00,562
(b)	Energy	62,326	62,797	66,234	62,326	66,234	62,221
	Total segment assets	4,58,717	4,48,022	4,04,639	4,58,717	4,04,639	4,62,783
4.	Segment liabilities
(a)	Agri	42,461	34,707	34,503	42,461	34,503	45,789
(b)	Energy	1,804	2,272	3,068	1,804	3,068	2,303
(c)	Unallocable	25,692	27,685	25,999	25,692	25,999	45,352
	Total segment liabilities	69,957	64,664	63,570	69,957	63,570	93,444
	S~i:nt ri;:vcnui: - G1:1lgrnp
	information:
(a)	Agci
	India	73,443	48,337	43,535	1,21,780	79,520	2,00,225
	Rest of the world	28,455	50,243	66,954	78,698	1,04,578	1,89,667
	Sub-total (a)	1,01,898	98,580	1,10,489	2,00,478	1,84,098	3,89,892
(b)	Energy
	India	4,846	5,406	4,999	10,252	9,717	17,974
	Rest of the world	-	-	-	-	-	12
	Sub-total (b)	4,846	5,406	4,999	10,252	9,717	17,986
	Total (a)+(b)	1,06,744	1,03,986	1,15,488	2,10,730	1,93,815	4,07,878
	Inter-segment revenue - Energy	(1,375)	(2,395)	(2,168)	(3,770)	(4,093)	(8,690)
	Total	1,05,369	1,01,591	1,13,320	2,06,960	1,89,722	3,99,188

Regd. Office: 5190, Lahori Gate, Delhi-110006, CIN: L01111DL1993PLCOS2845, Email: investor@krblindia.com, website: www.krblrice.com, Tel.: +91-11-23968328, Fax: +91-11-23968327 NOTES TO THE STATEMENT OF CONSOLIDATED UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND. HALF YEAR ENDED 30 SEPTEMBER 2021

2 Unaudited Consolidated Statement of Assets and Liabilities

		(Rs. in lakh xcept as stated otherwise)
	Particulars	30-09-2021	31-03-2021
A.	ASSETS	(Unaudited)	(Audited)
1.	Non-current assets
	(a) Property, plant and equipment	85,317	87,169
	(b) Capital work-in-progress	1,416	891
	(c) Right of use assets	6,119	6,469
	(d) Investment property	891	877
	(e) Goodwill	16	16
	(f) Other intangible assets	137	143
	(g) Intangible Assets under development	32	16
	(h) Financial assets
	(i) Loans	7	23
	(ii) 0th er financial assets	1,159	1,060
	(h) Other non-current assets	22,467	25,562
	Sub total non-current assets	1,17,561	1,22,226
2.	Current assets
	(a) Inventories	2,01,598	2,96,421
	(b) Financial assets
	Investments(i)	88,320	1,889
	(ii) Trade receivables	38,137	20,129
	(iii) Cash and cash equivalents	3,641	15,942
	(iv) Bank balances other than (iii) above	1,462	244
	(v) Loans	24
	(vi) Other financial assets		30
	(c) Other current assets	2,286	2,903
		5,688	2,999
	Sub total current assets	3,41,156	3,40,557
	TOTAL ASSETS	4,58,717	4,62,783
B.	EQUITY AND LIABILITIES
1.	Equity
	(a) Equity share capital	2,354	2,354
	(b) Other equity	3,86,318	3,66,897
	Equity attributable to the owners of the Holding Company	3,88,672	3,69,251
	Non-controlling interest	89	88
	Sub total shareholder's fund	3,88,761	3,69,339
	Liabilities
2.	Non-current liabilities
	(a) Financial liabilities
	(i) Borrowings	-	597
	(ii) Lease liabilities	5,204	5,324
	(b) Provisions	943	874
	( c) Deferred tax liabilities (net)	13,329	13,809
	Sub total non-current liabilities	19,476	20,604
3.	Current liabilities
	(a) Financial liabilities
	(i) Borrowings	9,821	30,183
	(ii) Trade payables
	- Total outstanding due to micro enterprises and small
	enterprises	568	698
	- Total outstanding dues of creditors other than micro
	enterprises and small enterprises	7,577	21,208
	(iii) Lease liabilities	742	828
	(iv) Other financial liabilities	26,069	15,512
	(b) Other current liabilities	2,672	2,688
	(c) Provisions	562	419
	(d) Current tax liabilities (net)	2,469	1,304
	Sub total current liabilities	50,480	72,840
	TOTAL EQUITY AND LIABILITIES	4,58,717	4,62,783

Regd. Office: 5190, Lahori Gate, Delhi-110006, CIN: L01111DL1993PLC052845, Email: investor@krblindia.com, website: www.krblrice.com, Tel.: +91-11-23968328, Fax: +91-11-23968327 NOTES TO THE STATEMENT OF CONSOLIDATED UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30 SEPTEMBER 2021

3. Unaudited Consolidated Statement of Cash Flow

"

	(Us. in Jakh "XCC H as Stated Otherwise)
Particulars30 September 2021	For the period ended For the period ended30 September 2020
Cash flow from operating activitiesA
36,953Profit before tax	36,855
Adjustment for:
3,691Depreciation and amortisation expenses	3,580
2(Profit)/loss on sale of property, plant and equipment	(2)
(15)Net unrealised foreign exchange loss	134
Effect of exchange rate difference on operating cash flows-	(3)
(469)(Profit) on sale ofinvestments	(133)
1Balance credit impaired	1
(12)Liabilities/provisions no longer required written back	(5)
Gain on modification/termination of Lease(6)	(82)
530Finance costs	1,153
(120)Interest income	(260)
(3)Dividend income	(6)
40,552Operating profit before working capital changes	41,232
Adjustments for working capital changes :
1,010Decrease in financial and other assets	885
94,823Decrease in inventories	83,191
(18,025)Increase in trade receivables	(15,500)
(13,750)Decrease in trade payables	(29,487)
1,342Increase in liabilities and provisions	3,239
1,05,952Cash generated from operations	83,560
(8,551)Income tax paid (net)	(8,524)
97,401Net cash flow from operating activities (A)	75,036
Cash flow from investing activitiesB
Purchase of property, plant and equipment and intangible assets 1(1,855)	(1,865)
9Sale of property, plant and equipment	25
13,999Sale proceeds from investments	12,000
(13,494)Purchase of investments	(12,500)
6Movement from deposits (net)	(510)
73Interest received	202
3Dividend income	6
Net cash used in investing activities (B)(1,259)	(2,642)
c Cash flow from financing activities(682)
(Repayment) of non current borrowings	(673)
Payment of lease liabilities(412)	(358)
(20,276)Repaymcn t of current borrowings (net)	(36,418)
(606)Finance cost paid	(2,075)
-Dividend paid	(761)
-Dividend dimibution tax paid	-
(21,976)Net cash used in financing activities (C)	(40,285)
74,166Net increase in cash and cash equivalents during the period (A+B+C)D	32,109
15,942Cash and cash equivalents-opening balance	1,443
90,108Cash and cash equivalents-closing balance	33,552

Notes:

1. Net of movement in capital work-in-progress and capital advances.

2. The above cash flow statement has been prepared under the 'indirect method' as set our in Ind AS 7, 'Statement of cash flows' .

		30 September 2021	For the period ended For the period ended30 September 2020
3.	Cash and cash equivalents comprises of
	Cash in hand	43	64
	Balances with banks	3,598	5,348
	Cash and cash equivalents	3,641	5,412
	Add: Investment in liquid mutual funds	86,467	28,140
	Cash and cash equivalents in cash flow statement	90,108	33,552

Regd. Office: 5190, Lahori Gate, Delhi-110006, CIN: L01111DL1993PLC052845, Email: investor@krblindia.com, website: www.krblrice.com, Tel.: +91-11-23968328, Fax: +91-11-23968327

NOTES TO THE STATEMENT OF CONSOLIDATED UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30 SEPTEMBER 2021

• 4 The above consolidated unaudited financial results of KRBJ, Limited ("the Company") have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meeting held on 8 November 2021. The statutory auditors have carried out a limited review of consolidated unaudited financial results of the Company for the guarter ended 30 September 2021, in accordance with Regulation 33, of the Securities and Exchange Board of India (Listing and Other Disclosure Reguirements) Regulation, 2015.
• 5 The financial results have been prepared in accordance with the Indian Accounting Standards ('Ind AS') notified under the Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time, specified in Section 133 of the Companies Act, 2013.
• 6 (A) During the financial year 2018-19, the Company had received Income-tax demand notices w.r.t. Assessment year(s) 2010-11 to 2016-17, which were contested before the Commissioner (Appeals) ['CIT(A)'], New Delhi and against which CIT(A) had granted partial relief on certain issues in favour of the Company.

The Company filed further appeals before Hon'ble Income-tax Appellate Tribunal ('ITAT'), New Delhi on 18 June 2020, for remaining issues sustained by CIT(A) in respect of income-tax demand of Rs. 6,132 lacs and interest of Rs. 3,752 lacs.

The Income-tax Department ('!TD') also filed appeals with the Hon'ble ITAT, New Delhi in respect of the issues allowed by CIT(A) in favour of the Company. ·

Further, the Company received penalty orders for A Y 2010-11 to 2016-17 on the issues sustained by CIT(A) to the tune of Rs.11,896 lacs. In respect of the same, the Company filed appeals before CIT(A), New Delhi. The Company also filed stay applications with Hon'ble ITAT, New Delhi against recovery of demand arising of such penalty orders and 1-Ion'ble ITAT vide its order dated 22 July 2021, directed the ITD to not enforce the recovery of penalty demand till the disposal of Company's guantum appeals by the IT AT.

All the guantum appeals, filed by Company and ITD, have been duly and extensively heard by the 1-Ion'ble ITAT, and the order on these appeals has been reserved.

Since, the Company had already deposited an amount of Rs. 21,900 lacs, under protest, in respect of tax demand raised by the ITD, during the guarter ended 30 September 2021, the Company received an amount of Rs. 3, 154 lacs, as part realization of the above amount paid under protest.

The management, based on legal assessment, is confident that it has a favourable case and the remaining income-tax demand, to the extent sustained by CIT(A) shall also be deleted by the 1-Ion'ble ITAT.

The auditors of the Company have invited attention to the aforementioned issue in their review report for the guarter and and half year ended 30 September 2021.

6 (B) A portion of land parcels and building thereupon, situated at Dhuri, Punjab was attached by the Directorate of Enforcement ('ED') to the extent of value ofl~s. 1,532 lacs in connection with a money laundering investigation. The Appellate Tribunal, PMLA, New Delhi, ("Appellate Tribunal") had restored the possession of the attached land on interim basis in favour of the Company. However, aforesaid attachment would continue till conclusion of the matter. Against the order of the Appellate Tribunal, ED had filed an appeal before the I-Ion'blc High Court of Delhi, which is pending for hearing The Company filed an application before the I-Ion'ble High Court of Delhi for restoration of possession of the land in favour of the Company and High court allowed the Company to take physical possession of the said land parcels and building thereupon for specified purpose against the deposit of Rs. 1, 113 lacs, (deposited on 5 November 2020), as an interim relief until conclusion of the aforesaid matter, without prejudice to the rights and contentions of the parties to be decided in the appeal. The management based upon the legal assessments, is confident that it has a favourable case and the said attachment shall be vacated.

The auditors of the Company have invited attention to the aforementioned issue in their review report for the guarter and and half year ended 30 September 2021.

6 (C) The Company's Mr.Anoop Kumar Gupta, Joint Managing Director (']MD') had been detained and released on bail by the Directorate of Enforcement ('ED') pursuant to certain allegations against the Company, KRBL DMCC (a subsidiary of KRBL Limited) and JMD. As per criminal complaint filed it is alleged that M/s Rawasi Al Khalcej General Trading LLC ('RAKGT') had received proceeds of crime of USD 24.62 million in AgustaWestland case during the period 2008-2010 which in tum had been transferred to KRBL Limited through KRBL DMCC. Basis the affidavit filed by Balsharaf Group (one of the Customer of the Company) in the 1-Ion'ble High Court of Delhi in the said matter, the amount of USD 24.62 million had been received by Balsharaf Group from RAKGT. Pursuant to this, ED had attached 1,43,33,221 shares of Balsharaf Group held in I<RBL Limited. Based on the opinion taken from the independent legal counsel, the management is of the view that since the investigation is still ongoing no adverse opinion can be drawn. The Company has already appointed an independent professional firm to review the aforesaid allegations, by undertaking steps as necessary, in order to assess impact of aforesaid matter, if any, on the financial results and control environment of the Company. Pending the ongoing investigation on the above matter, no adjustment has been made in the unaudited consolidated financial results. The management of the Company is confident that the above stated matter will be resolved soon.

The auditors of the Company have gualified to the aforementioned issue in their review report for the quarter and and half year ended 30 September 2021.

7 During the period, the Company received directions from Punjab Pollution Control Board ('Punjab PCB') for restraining 11l111...,.;e!il'lil;w situated at Dhuri, Distt. Sangrur, Punjab, in compliance to the orders dated 02 July 2021 passed by the 1-Ion'blc National ~ 11!:11Wiali"I this regard, the Company had filed an appeal before the Hon'ble Supreme Court and the 1-Ion'ble Supreme Court vidc• l';b: tlcu claret had passed an order stating that the parties are directed to maintain the status guo as it exists today. Therefore, the ~ · unit continues as usual since then till date. The management of the Company is confident that the above stated matter ~ Company's unit is fully compliant with all environmental norms and permits.

• 8 The Board of Directors of the Company in their meeting 29 June 2021, have recommended a final dividend of Rs 3.50 (350%) per paid up equity share of Re 1/- each, aggregating to Rs 8,239 lacs for the financial year ended 31 March 2021, which has been approved by the shareholders iri the Annual General Meeting held on 30 September 2021.
• 9 The figures for the corresponding previous periods/year have been regrouped/reclassified, wherever necessary, to make them comparable.

Place: Noida Date : 08 November 2021