Majestic Auto Ltd. — Annual Report 2021

Jul 14, 2021

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AL/SECTT/BSE/

Date: 30.06.2021

To

Bombay Stock Exchange Limited

25th Floor, Phiroze Jee Jee Bhoy Towers

Dalal Street Mumbai - 400 001

SUBJECT: OUTCOME OF BOARD MEETING DATED 30[TH] JUNE, 2021

Dear Sir's

Pursuant to Regulation 30 and any other applicable provision of SEBI (Listing Obligations & Disclosure Requirements) Regulations 2015, we wish to inform you that the Board of Directors of the Company at its meeting held today, 30.06.2021, has inter alia, taken following decisions:

1. The Audited Standalone and Consolidated financial results for the quarter and year ended 31/03/2021 as recommended by Audit Committee at its meeting held on 30/06/2021 were considered and approved.

The meeting of the Board of Directors commenced at 09:00 p.m. and concluded at 12:30 a.m.

Thanking You

Yours faithfully

For Majestic Auto Limited

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Mahesh Munjal

Director

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MAJESTIC
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June 30, 2021

To, The Secretary, BSE Limited 25 [1h ] Floor, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai-400001

Scrip Code: 500267

Sub: Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 - Declaration in respect of Audit Records with unmodified opinion for the financial year ended March 31, 2021

Dear Sir,

Pursuant to SEBI Circular no. CIR/CFD/CMD/56/2016 dated May 27, 2016, we hereby declare that the Statuary Auditors of the company, M/s. SAR & Associates, Chartered Accountants, have issued Audit Report with unmodified opinion on audited financial results of the Company (Standalone & Consolidated) for the quarter and year ended March 31, 2021.

Kindly take this declaration on your records.

Thanking You,.

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MAJESTIC AUTO LIMITED

CIN L35911DL 1973PLC353132

Corporate Office: A-110,Ground Floor.Sector 4, Noida 201301 (U.P.) . Registered Office-10, Southern Avenue, First Floor, Maharani Bagh, New Delhi-110065 Tel.:0120-4348907,Email:info@majesticauto.in,www.majesticauto.in

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Chartered Accountants SAR & Associates

INDEPENDENT AUDITORS' REPORT

To the Board of Directors of Majestic Auto Limited

Report on the audit of the Standalone Annual financial Result,

Opinion

\X'c haH audJtcd tht arcompamin)I, siandalonc •nnual tinancml results of Majestic Auto Limited Q1ercinaCtcr referred to as rhe "C.ompa1w"1 for tht )"<':Ir end,xl 31 \larch '.!O:!I ('sundalonc annual financial resuhs"), anachcd hcrc\,Lh, bemg subm1t1cd bv 1he Compa11\' pursuant 10 tl1< rcqu1rcment of ReguLuion 1> of the SJ'IIJ (I ,,tin!\ Obh1�riom and 0hclo,urc R<-quin-ments) Rei,"'lauons. :!015, as amended (l�snng Regulations').

[n our op1rdon nnns gt\·en to U.'\, the afore':i>a,uJ standalonr anm1al financial rcruh:,;:

• a. are preH111ed m accord�u1cc ,vith rhc n�<1uin·n,cnr:. of lh·, ul:11100 J'\ of the L!i.1uig R�ulations in this regard; and

• b. g1v4,.· a tt' l <: and fatr view an confonnuy with Lhc rccogottmn :11td mtasuren1e.·nt principles lru<l down in rhc applicable ln<bMt \ccounung Standard, .. md other ,Hrnunung pnnar,les grnernll) acccpcef ch� ntt profo and other cornpr<'hcn�1vc mcome ind other financul infunnauon for rht )'C:lr ended 31 March 20'.!I.

Basis for Opinion

\X'c conducted our audit ,n accurdanrc w11h ch,· St111dards on .\mlillllf( ('S,\s") specified under •ection 111 143(10} of the Companies \ct. 2013 ""the .\er"). Our r<'>pOn>1b1bucs under tho,e S,\s are furth<'r descnbed the ,.111dil•r'1 Rupo11Ji/11/ilie.r/or 1/Je /11! 1 ef the St(Jnda/o,ie �!11r.11.1/ Fi11.111.ial Hmdt., section of our «l'ort. \X'e arc independent or the Company, 11 accordancr \I.1th the Code of Educs issued by dw lmnLUte of Chnrtcrcd ,\ccountanrs of India together with the rcl,ic:1[1 ] rc,1ui.rcment, that are rdt\ ant to our audit of the 6nanaal statements under the prov1.ion, of the \ct, nnd the Rulrs ilwreundrr, and we have f11lfiUcd our other cd1icnl responsibilities in accordance wllh thc,e n,qui«'tl'lcnts and tht Code of f.thics. We beb<'\'e d1at the au<bt e-ddt'flce we ha\'c obt,11ned 1s sufficienl and ;tppropriacP to provide :i b:t'-IS for our opm.ion on tlw Standalone annual finanoal rcsulh.

Management's dnd Board of Directors' Responsibilities for the Standalone Annual Financial Results

Thcst· sundalone annual financial result, have bcul prepared on 1hc basis of 1he standalone annual financinl statements.

1ne Company's Man.1gcmem and the Bn:ud of D1r1·ctors arc rt·,ponsabk for the preparauon au<l presl'lltaaon of these standalone annual financrnl remits rhaL 1 ve a true and (.ur vi1·w of the net profit/I<>» and other comprchcnMve mcomc and otht"r finanoal u,fonnauon 10 :\ccordancr wah the rccognloon and measurement

C':'.)[anubhav@sarassociates.in. ((} +91 9999] ?[·006S] _[7]

Regulations. This cesponsibili1y also includes mainrenanct of ad<:<juatc 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 otl1er irregularities; selection and application of appropriate accounting policies; making judgments and estimates 1hat arc reasonable al\d prudent; and the design, implcmenrncion and maintenance of adequate intea1al financial controls, that were operating effectively for ensuring accuracy and completeness of the accounting records, rele,·ant to the preparation and presentation of the standalone annual financial results that give a true and fair view and are free from material missta1ement, whether due to fraud or error.

h In preparing t e standalone annual financial results, the Jvfanagement and the Board of Directors arc responsible for assessing the Company's ability lO continue as a going concern, disclosing, as applicable, matters related ro going concern and using tl,e going concern basis of accounting unless the Board of Directors either intends to litJttidate 1he Company or ro cease operations, or has no realistic •ltemarive but co do so.

The Board of Directors is responsible for m•crseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone Annual Financial Results

Our objectives arc to obcain reasonable ;1ssui:ance about whether che st::indalon<..· annual financial results as a whole are free from material misst."lt(·meiu, whether <foe co fraud or error, and to issue ,an auditor's report that includes our opinion. Reasonable assurance is a high level of assu1-ance, but is not a guarantee chat an audit conducted in accordance with S/\s will always detect a mate1:ial missrarcment when it exists. l'vlissL,tements can atise from fraud or error and are considered material if, individually or in the aggregate, the)' could reasonably be expecred to u1 fluence the economic dcdS1ons of users taken on the basis of these standalone annual financial results.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit W/c also:

• identify and assess the risks of rn::i.terial miss-caterncnt of the standalone annual financial resu1r.s, whether due to fraud or crroL, design and perfonn autijr procedures responsive to chose risks, and obrain audit evidence mat is suffident and appropriate to provide a basis for our opui.ion. The cisk of not detecting a material misstatement resulting from fraud 1s higher than for one resulring from error, as fraud may involve collusion, fo rgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant ro clie audit in order 10 de,;ign audir procedures that arc appropria1e i ll the circumstances. Under Section 143(3) (i) of the Act, we arc also responsible for expressing our opinion through a scpara1e report on the complete set of financial statements on whemer the company bas adequate internal financ-ial coorrols witli reference ro financial srntemcnts in place and the operating effectiveness of such controls.

• Evaluate die appropnateoess of accounting Policies used and the reasonableness of accounting estimates and related disclosures in the standalone financial results made by rue Managemem and Board ofDirecmL'S.

• Conclude on the appropriateness of the tvianagemcnt and Board of Directors use of lhc going concern basis of accounting and, based on the audit evidence obtained, whelher a material \tncerrnincy exists related to events or conditions diat may cast significant doubt oo the appropriateness of this assumpllon. If w,· conclude that a material uncertainty e:cistsJ we a.re required co draw ,1ttention in our auditor's report to the related <l.isclosures in the standalone annual fioaocial resull's or, if such disclosures are inadequate, to rno<lify our opinion. Our conclusions are ba.sed on the audit evidence obtained up to the date of our audi lor's report. However, future events or conditions may cause the Company co cease to continue as a going concer:n.

• Evaluate tl,e overall presemation, stmcturc and content of the standnlone annual financial results, indudu,g che disclosures, and whetl1cr the standalone annual financial results represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with Lhose charged with governance n.-garding, nmong ocher matters, the planned scope and timing of tl,e audit and significant audit findings, including any significant deficiencies in inten,al control Lhat we identify during our audit.

We also provide !hose ch,rged with govemance with a Stttemem that we have complied with relevant ethi c-al requirements regarding independence, and to communicate with them all relationships and od1er matters that may reasonably be tl,ought to be,r oo our independence and where i>pplicable, rebted safeguards.

Other Matters

The standalone annual financial results include the results for the qu,trter ended 31 March 202'1 being the balancing figure between lhe audited figures in respect of tl,e full financial year and d,e published unaudited year to date figures up to rhe cl,ird quarter of die current financial year which were subject to limited review by us.

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For SAR & Associates
Chartered Accountants
Pim, Registration No
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Majestic Auto Limited Regd. Office: 10, Southern Avenue, First Floor, Maharani Bagh, New Delhi-110065 Statement of Financial Results for the quarter and year ended 31 March 2021

1 a) Revenue from operations b) Other income 2 a) Cost of Product and services b) Employee benefits expense c) Finance costs d) Depreciation and amortisation expense e) Other expenses 3 4 Exceptional Items 5 6 a) Current tax Less: MAT Credit Entitlement b) Deferred tax Total tax expense/(credit) 7 8 (i) Items that will not be reclassified to profit or loss (ii) Income tax relating to items that will not be reclassified to profit or loss 9 10 11 12 Other equity Total expenses Total comprehensive Income/(Loss) ( 7 + 8 ) Paid-up equity share capital (Face value of Rs 10 per equity share) Earnings per share (a) Basic (in ₹) (b) Diluted (in ₹) Expenses Profit/(loss) before exceptional items and tax ( 1 - 2 ) Other comprehensive Income/(Loss) Tax expense Profit/ (loss) after tax ( 5 - 6 ) Other comprehensive income Profit before tax ( 3 + 4 ) Total income Income Particulars

(₹ in lakhs) (Refer note 1) Unaudited (Refer note 1) Unaudited Unaudited 481.14 491.95 760.64 2,025.35 3,266.76 691.97 48.94 638.13 1,063.13 1,113.72 1,173.11 540.89 1,398.77 3,088.48 4,380.48 291.80 281.34 416.52 1,229.36 1,790.83 59.32 55.52 76.45 226.93 232.36 72.69 83.08 116.12 320.02 504.97 51.57 51.63 53.40 207.69 212.30 42.68 33.94 47.00 145.72 273.67 518.06 505.51 709.49 2,129.72 3,014.13 655.05 35.38 689.28 958.76 1,366.35 - - - - - 655.05 35.38 689.28 958.76 1,366.35 90.55 8.10 15.13 160.04 78.95 (112.66) (5.52) (13.25) (160.04) (72.90) 113.88 11.23 1,104.02 180.84 1,142.59 91.77 13.81 1,105.90 180.84 1,148.64 563.28 21.57 (416.62) 777.92 217.71 (1,783.03) (343.53) (7,806.91) 12,156.77 (8,832.90) 297.62 57.34 1,263.17 (2,029.21) 1,474.39 (1,485.41) (286.19) (6,543.74) 10,127.56 (7,358.51) (922.13) (264.62) (6,960.36) 10,905.48 (7,140.80) 1,039.82 1,039.82 1,039.82 1,039.82 1,039.82 40,669.55 29,685.42 5.42 0.21 (4.01) 7.48 2.09 5.42 0.21 (4.01) 7.48 2.09 Quarter ended Year ended Standalone 31 March 2020 31 December 2020 31 March 2020 31 March 2021 31 March 2021

Notes to standalone financial results:

• 1 The above results have been reviewed by the Audit Committee at their meeting held on 30 June 2021 and thereafter approved by the Board of Directors at their meeting held on 30 June 2021 and have been reviewed by the Statutory Auditors. Figures for the quarters ended 31 March 2021 and 2020 represents the balancing figures between the audited figures for the full financial year and the published year to date reviewed figures upto the third quarter of the respective financial year.

• 2 The National Company Law Tribunal, Mumbai Bench, has approved the terms of the Resolution Plan submitted by the Company, to acquire Sharan Hospitality Private Limited ("SHPL") pursuant to a Corporate Insolvency Resolution process implemented under the Insolvency and Bankruptcy Code 2016, and the terms of the Resolution Plan are now binding.

Pursuant to the Resolution Plan, the Company will infuse an amount aggregating to a maximum of Rs. 8,184.11 Lakhs in a combination of equity share capital and debt.

Upon implementation of the Resolution plan, the Company will hold 100% of the paid up share capital of SHPL.

• 3 This statement has been prepared in accordance with the Companies (Indian Accounting Standard) Rules, 2015 (Ind AS) prescribed under section 133 of the Companies Act, 2013 and other recognised accounting practices and policies to the extent applicable.

• 4 Based on guiding principles given in Ind AS-108 on "Operating segments", the Company's business activity fall within a single operating segment namely real estate and management services. Accordingly, the disclosure requirements of Ind AS-108 are not applicable.

• 5 The Company has assessed the possible effects that may result from pandemic relating to Covid-19 on the carrying amount of Receivables, Inventories, Investments, and other assets / Liabilities, contractual obligations and it’s overall liquidity position. The Company, as on the date of approval of these financial results has used external and internal sources of information and application of reasonable estimates. As on the current data, the Company has concluded that the impact of Covid – 19 is not material based on these estimates . Due the nature of pandemic, the Company will continue to monitor developments to identify significant uncertainties in future period, if any.

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FOR AND ON BEHALF OF BOARD OF DIRECTORS
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Mahesh Munjal Chairman and Managing Director

Place : Ludhiana Date : 30 June 2021

6 Standalone Statement of Assets and Liabilities as at 31 March 2021

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(₹ in lakhs)
As at As at
Particulars 31 March 2021 31 March 2020
Audited Audited
ASSETS
Non-current assets
Property, plant and equipment 2,264.13 2,327.99
Right of use assets 89.69 105.06
Intangible assets 4.60 6.86
Investments property 4,761.44 4,878.05
Financial assets
Investments 35,866.18 23,720.95
Loans 1,613.21 1,438.51
Other financial assets 77.63 89.98
Deferred tax assets (net) 747.73 2,719.42
Non - current tax assets (net) 47.29 142.06
Other non-current assets 3.28 4.24
Total non-current assets 45,475.18 35,433.12
Current assets
Inventories 211.87 221.71
Financial assets
Investments 0.11 -
Trade receivables 225.05 187.34
Cash and cash equivalents 332.25 18.13
Other bank balances 63.54 60.29
Loans 30.11 43.62
Other financial assets 68.67 285.16
Other current assets 26.35 48.65
Total current assets 957.95 864.90
Total Assets 46,433.13 36,298.02
EQUITY AND LIABILITIES
Equity
Equity share capital 1,039.82 1,039.82
Other equity 40,669.55 29,685.42
Total equity 41,709.37 30,725.24
Liabilities
Non-current liabilities
Financial liabilities
Borrowings 3,429.98 3,565.76
Other financial liabilities 326.08 326.24
Other non-current liabilities 83.42 96.76
Provisions 16.96 25.08
Total non-current liabilities 3,856.44 4,013.84
Current liabilities
Financial liabilities
Borrowings 27.31 -
Trade payables
- Outstanding dues of micro and small enterprises - 1.23
- Outstanding dues of creditors other than micro and small enterprises 80.79 122.13
Other financial liabilities 543.49 1,293.17
Other current liabilities 211.69 141.42
Provisions 4.04 0.99
Total current liabilities 867.32 1,558.94
Total equity and liabilities 46,433.13 36,298.02
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FOR AND ON BEHALF OF BOARD OF DIRECTORS

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Place : Ludhiana Date : 30 June 2021

Mahesh Munjal Chairman and Managing Director

7 Standalone statement of Cash flow for the year ended 31 March 2021

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(₹ in lakhs)
Year ended on Year ended on
Particulars 31 March 2021 31 March 2020
Audited Audited
A CASH FLOW FROM OPERATING ACTIVITIES
Profit/(loss) before tax 958.76 1,366.35
Adjustments for:
Depreciation on property, plant and equipment 207.69 212.30
Loss/(gain) on disposal of property, plant and equipment (3.50) 6.63
Interest income (174.64) (171.14)
Dividend income (874.95) (893.37)
Allowance for doubtful debts/balances write back 1.45 -
Provision written back (0.23) -
Gain on investment classified as FVTPL - (11.13)
Finance costs 320.02 504.97
Liability written back (0.73) -
Operating loss before working capital changes 433.87 1,014.61
Movement in working capital
Decrease/(increase) in inventories 9.84 (14.46)
Decrease/(increase) in other financial assets 232.32 (213.48)
Decrease/(increase) in trade receivables (37.71) 121.50
Decrease other non-current assets 0.96 0.72
Decrease in other current assets 20.85 43.81
Decrease in other financial liabilities (2.63) 206.93
Increase in other current liability 70.27 (126.66)
Increase in other non-current liability (13.34) 96.76
(Decrease)/increase in provisions 4.00 3.69
(Decrease)/increase in trade and other payables (41.84) (211.42)
Cash flow from operating activities post working capital changes 676.59 922.00
Income tax paid (net) (62.24) (102.46)
Net cash flow from operating activities (A) 614.35 819.54
B CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment and intangible assets (12.46) (16.53)
Purchase investments property - (113.62)
Proceeds from disposal of property, plant and equipment, capital 6.37 8.35
work-in-progress and intangible assets (net of advance)
Proceeds from sale of investments - 213.16
Purchases of short-term investments (0.11) (100.00)
Redemption in margin money (3.25) (3.06)
Cash loans and advances (161.19) 540.96
Dividend received 874.95 893.37
Interest received 171.16 170.34
Net cash flow from investing activities (B) 875.47 1,592.97
C CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings - -
Repayment of borrowings (849.95) (1,903.27)
Payment of lease liabilities (20.41) (20.16)
Interest paid (305.34) (477.39)
Net cash used in financing activities (C) (1,175.70) (2,400.82)
Increase in cash and cash equivalents (A+B+C) 314.12 11.69
Cash and cash equivalents at the beginning of the year 18.13 6.44
Cash and cash equivalents at the end of the year 332.25 18.13
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SAR & Associates Chartered Accountants

INDEPENDENT AUDITORS' REPORT

To the Board of Directors of Majestic Auto Limited

Report Oil the audit of the Consolidated Annual Financial Results

Opin.ion

\Xie have audited the accompan}fog consolidated annual financial results of Majestic Auto Limited c (hereinafter referred ro as rhe " Holding Company") and its subsidianes (Hol ling {',0mp:iny and its u:11 subsidiaries together referred to as "the Group"). for rhe year ended 31 March 2021 ("consolidated ann financial results"). •uached hercwitl1, being submitted by rhe Jlolcling Company pursuant to the requirement of Rcgulatjon 33 of the SEBJ (Listing Obhganons and Disclosure Requirements) Regula lions, 2015, as amended ("Lisung H.e1,>1.1larjons").

In our opinion and lo dle best of om· in fonnarion and according to tJ1e explanations given ro us the :lforcsaid consolidated annual financial results:

• a. include tl,e annu.:,I financial results of the foUowing entities Subsidiaries

• Majestic IT Services Jjmited

• Emirates Technologjes l'civ:1te f jmitcd

• b. are presented in accordance with tlic requirements of Regulation 33 of the Lisring Regulations in this regard; :Ind

• c. give a rn1e and fair view in confom1jty wjd1 the recognition and mtasurerr1;ent principles }aid down in the applicable [ndian Accounting Srnndards, and other acrnuntjng principles generally accepted in India, of consolidated ne1 profii :lnd other comprehensive income and other financial infoanation of rhe Group for c l1e vear ended 31 March 2021.

Basis for Opinion

We conducted our audit in accordance w1d1 tl,c Srnndards on J\udiring ("SAs") specified ,mder section l 43(10) of the Companies Act, 2013 (" the Act"). Our responsibilities under those SAs arc further described in the A"ditor'., Respq11Ji/ti/itie.s(or the A11di1 q( //,t Co1110/idoted. ·1n11m1/ Fir.,111d"I Re.rt1/t., section of ot11· report \X'e are h independent of the Group in accordauce "itli the Code of Ethics issued by t e lnscitutc of Chartered Accountants of India togetl1er with the ecl1ical requiremet1ts tl1ar are relevant to 01,1r audit of d,e financial statements under the provisions of rhe _1\c� and the Rules thereunder, and we have fol6Jkd our other ethic:,] responsibilities in accordance wicl1 these reqrnrerncnts :uid the Code of Ethics. We believe dial the audit evidence obr:uncd by us is sufficient and appropriate to provide a basis for our opinion on d,e consolidated annual financial rcsul rs.

Management's and Board of Directors' Responsibilities for the Consolidated Annual Financial Rcsuhs

Tiiese consolidated annual financial resolts have been prepared on the basis of che consolidated annual financial statements.

TI,e Holding Company's Management and the Board of Direccors arc responsible for cl1e preparation and presentation of ihesc consolidated annual financial results that give a true and fair view of the consolidated net profit/loss and other comprehensive income and ocl1er fmancial infonnation of the Group in accordance with the recognition and measurement principles hid down in Indian Acco,mting Standards prescribed under Section 133 of the Act and oilier accounting principles generally accepted in India and in compliance with Regulation 33 of rhe Listing Regulations. The respective l!anagcment and Board of Directors of the companies included in the Group are responsible for maintenance of adequate accounting records in accordance with the pro,,isions of the Act for safeguarding of the assets of each company and for preventing and detecting frauds and other irregularities: selection and application of appropriate accounting policies; making jlldgments and estimates li1at are reasonable and p1udent; and the design, implementation and maintenance of adequate internal financial controls, that were operating cffecti>'ely for ensuring accu.racy and completeness of the accounting records, relevant to the prcpar.ttion �nd pte�entacion of the consolidMed annual financial results that give a r.rue and fair view and are free from material misstatement, wherhcr due to fraud or error, which have been used for the purpose of preparation of the consolidated annual financial results by the !vlanagement and the Directors of d1e Holding Company, as aforesaid.

In preparing the consolidated annual financial results, cl1e lv!anagemem and the respective Board of Direcrors of the companies included in cl1e Group Me responsible for assessing rhe ability of each company to continue as a going concern, disclosing, as applicab1c, matt<�rs related to going concen-. and using the going concern basis of accollnting unless the respective Board of Directors either mtends to Liquidate die company or to cease operations, 01· has: no realistic alcernaove but to do so.

1ne respective lk,ard of Directors of the companies included in the Group is responsible for o,•erseeing die financial reporting process of each company.

Auditor's Responsibilities for the Audit of the Consolidated Annual Financial Results

Our objectives are to obtain reasonable assurance about whether the consolidated annual financial results as a whole :t e free from material m.isstacemenc. whether due to fraud or error) and to issue :11n auditor's report tha, lllcludes our opinion. Reasonable assurance is a high level of asstirance, 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, individuaUy or in tJ1e aggr<:g.1te., they could reasonably be expected to influence cl,c economic decisions of users rnken on the basis of these consolidated annual financial ccsults.

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

• Identify aod assess the risks of material misstarement of the cons0Lida1ed annual financial results, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evtdence that is sufficient and appropriate LO provide a basis for our opinion. 111e risk of not detecting a material misstatement resulcing from fraud is higher than for one resulting from error, as fraud may involve collusion. forgery, inrentional omissions. misrepresentations, or the ove ide of inrernal control.

• Obiain an undcrsianding of inrenul control relevant LO the aucbc in order co design at,dil procedures thac ore appropriate in ll1e circ'\JmSLanccs. Cndcr Secnon 143(3) (i) of the Act, we .re also responsible for expressing our opinion ll1rough a separate report on rhe complete se1 of financial statements on whether the company bas adequate imernal financial c(mtrols with reference to financial siatements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the 1-e.1sonablcncss of accow1ting estimates and related disclosures in the consolidated financial results made by die 1.fanagemcnt and Board of Directors.

• Conclude on d1e appropriateness of the Management and Board of Directors use of d1e going concern basis of accounang and, based on cl,e audit evidence obtained, whether a material uncertainty exists related to e\'ents or conditions cl1at may cast significam doub1 on the appropriateness of ll1is assumption. Ji we conclude that a rnate,ial uncertainty exists, we arc required ro draw auenLion in our auditor's reporr to the related Ulsdosurc� i.n the consolidated annual financia.J resulr.s or, if such disclosures are inadequate, to modjfy our opimon. Our conclusions a.re based on tJ1e audit evidence oblained up lO the date of our auditor's report. However, furure evencs or condiuons may cause the Group to cease to continue as a going concern.

• Evaluate the overall presentation, structure and con lent of tl1c consolidated annual financial rcsuln** including the disclosures, and whethec the consolidated annual fin•ncial results represent the underlying transactions and <.·vents in n m;inner d1at achieves f�ut presentation.**

• Obtain sufficient appropriate audit �-vidence regarding the financial results/financial infomiation of the entities within the Group to express an opinion on the consolidated annual financiaJ results. \Y./e ru:e responsible for cl1e direcrion, supervision and perfoonance of the audit of financial information of sut'h entities included in rhe consolidated Gnancial results of which we arc the independent auclitors. for the other entities included 111 d,e consolidated annual financial results, which have been audited by other au(litors, such other auditors remain responsible for the direction, supervision and performance of the audits carried ouc by rhem. We remain solely responsible for our audit opinion.

We communicate with those charged widi goveniance of the I Jolcling Company and such other entities included in the consolidated annual financial results of which we arc the independent auclitms regarding, among other matters, the planned scope and timing of 11,c audit and significant audit findings; including any significant deficiencies in internal control that we identify during our audit.

\'e also provide those charged u-uh �,vcmancc u1th a ;mcement that we have comphl'd "1th relevant ethu:al requirements rega.rc.hng utdcpcndencc, and 10 conununicate with 1hnn nil relationstup.s and other matters that nuy fl'asonably be thought to bc,ar on our 111dependeocc, and where applicable, related safeguard,.

W'e al,o rcrfon11ed procedures m accordance "'th the cu"<'Ular No CIR/Cffi/C�U) 1/44/2019 tSSucd by the SES! uodcr R,·gulauon 33(8) of �,c Li,ang Regulations, as amended, to d1e extent applicable.

Other Matters

h 11,e con,.,,bdated annual linantul results tndude the rcsuh, for t e <Juartcr end,·d 31 March 2021 bn g the balancing figure between the audited ligurcs m respect of the full financial year and the published unaudited rear to date figure, ur, to the third quancr of the current linanoal year which were sub1cc1 to !muted review byus.

Chartered Accoun1anc I •inn R<gistration N k.. ll..== Partner Mcmber<hip No. 123328 UDIN 2U2.3328AAAABS6094 Place: Drllu Date: 30 June 2021

Majestic Auto Limited

Regd. Office: 10, Southern Avenue, First Floor, Maharani Bagh, New Delhi-110065

Statement of Consolidated Financial Results for the quarter and year ended on 31 March 2021

1 a) Revenue from operations b) Other income 2 a) Cost of Product and services b) Employee benefits expense c) Finance costs d) Depreciation and amortisation expense e) Other expenses 3 4 Exceptional Items 5 6 a) Current tax (including minimum alternate tax earlier years) Less: MAT credit entitlement b) Deferred tax (credit)/ charge c) Earlier years tax adjustments (net) Total tax expense/(credit) 7 8 (i) Items that will not be reclassified to profit or loss (ii) Income tax relating to items that will not be reclassified to profit or loss 9 10 11 12 13 14 15 Other comprehensive income attributable to : Equity shareholders of the Company Non-controlling interest Other equity Paid-up equity share capital (Face value of ₹ 10 per equity share) Earnings per share (a) Basic (in ₹) Equity shareholders of the Company Non-controlling interest Profit/(loss) before exceptional items and tax ( 1 - 2 ) Profit before tax ( 3 + 4 ) Equity shareholders of the Company Non-controlling interest Expenses Net profit/(loss) attributable to : Other comprehensive income Total comprehensive income ( 7 + 8 ) Total comprehensive income attributable to : Income (b) Diluted (in ₹) Other comprehensive income Total income Total expenses Particulars Tax expense Net profit after tax ( 5 - 6 )

(₹ in Lakhs) (Refer note 1) Unaudited (Refer note 1) Audited Audited 1,332.59 1,376.19 1,700.54 5,683.63 6,916.21 738.40 132.34 608.97 1,313.44 998.58 2,070.99 1,508.53 2,309.51 6,997.07 7,914.79 141.80 131.34 266.52 629.36 1,190.83 120.07 110.23 132.75 453.68 449.78 404.40 423.85 486.59 1,692.00 2,009.32 224.22 212.88 233.03 895.35 924.69 119.71 177.57 292.22 601.88 976.84 1,010.20 1,055.87 1,411.11 4,272.27 5,551.46 1,060.79 452.66 898.40 2,724.80 2,363.33 - - - - - 1,060.79 452.66 898.40 2,724.80 2,363.33 167.81 83.53 (21.94) 482.30 234.33 (69.68) (22.22) (48.30) (160.54) (107.95) 145.80 48.58 4,320.22 300.83 4,327.10 (78.65) - - (78.65) - 165.28 109.89 4,249.98 543.94 4,453.48 895.51 342.77 (3,351.58) 2,180.86 (2,090.15) (1,771.81) (343.53) (7,809.09) 12,167.99 (8,835.08) 294.50 57.34 1,263.17 (2,032.33) 1,474.39 (1,477.31) (286.19) (6,545.92) 10,135.66 (7,360.69) (581.80) 56.58 (9,897.50) 12,316.52 (9,450.84) 850.71 299.94 (2,776.62) 1,992.72 (1,602.52) 44.80 42.83 (574.96) 188.14 (487.63) 895.51 342.77 (3,351.58) 2,180.86 (2,090.15) (1,477.31) (286.19) (6,545.92) 10,135.66 (7,360.69) - - - - - (1,477.31) (286.19) (6,545.92) 10,135.66 (7,360.69) (626.60) 13.75 (9,322.54) 12,128.38 (8,963.21) 44.80 42.83 (574.96) 188.14 (487.63) (581.80) 56.58 (9,897.50) 12,316.52 (9,450.84) 1,039.82 1,039.82 1,039.82 1,039.82 1,039.82 41,046.99 28,918.61 8.61 3.30 (32.23) 20.97 (20.10) 8.61 3.30 (32.23) 20.97 (20.10) Consolidated Year ended on Quarter ended on 31 March 2020 31 March 2020 31 March 2021 31 March 2021 31 December 2020

Notes to consolidated financial results:

• 1 The above results have been reviewed by the Audit Committee at their meeting held on 30 June 2021 and thereafter approved by the Board of Directors at their meeting held on 30 June 2021 and have been reviewed by the Statutory Auditors. Figures for the quarters ended 31 March 2021 and 2020 represents the balancing figures between the audited figures for the full financial year and the published year to date reviewed figures upto the third quarter of the respective financial year.

• 2 The National Company Law Tribunal, Mumbai Bench, has approved the terms of the Resolution Plan submitted by the Group, to acquire Sharan Hospitality Private Limited ("SHPL") pursuant to a Corporate Insolvency Resolution process implemented under the Insolvency and Bankruptcy Code 2016, and the terms of the Resolution Plan are now binding.

Pursuant to the Resolution Plan, the Company will infuse an amount aggregating to a maximum of Rs. 8,184.11 Lakhs in a combination of equity share capital and debt.

Upon implementation of the Resolution plan, the Group will hold 100% of the paid up share capital of SHPL.

• 3 This statement has been prepared in accordance with the Companies (Indian Accounting Standard) Rules, 2015 (Ind AS) prescribed under section 133 of the Companies Act, 2013 and other recognised accounting practices and policies to the extent applicable.

• 4 Based on guiding principles given in Ind AS-108 on "Operating segments", the Group's business activity fall within a single operating segment namely real estate and management services. Accordingly, the disclosure requirements of Ind AS-108 are not applicable.

• 5 The Group has assessed the possible effects that may result from pandemic relating to Covid-19 on the carrying amount of Receivables, Inventories, Investments, and other assets / Liabilities, contractual obligations and it’s overall liquidity position. The Group, as on the date of approval of these financial results has used external and internal sources of information and application of reasonable estimates. As on the current data, the Group has concluded that the impact of Covid – 19 is not material based on these estimates . Due the nature of pandemic, the Group will continue to monitor developments to identify significant uncertainties in future period, if any.

FOR AND ON BEHALF OF BOARD OF DIRECTORS

Place : Ludhiana Date : 30 June 2021

Mahesh Munjal Chairman and Managing Director

6 Consolidated Statement of Assets and Liabilities as at 31 March 2021

(₹ in Lakhs)

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As at As at
Particulars 31 March 2021 31 March 2020
Unaudited Audited
ASSETS
Non-current assets
Property, plant and equipment 2,340.01 2,396.29
Right-of-use assets 121.37 168.41
Investment properties 27,770.75 28,440.91
Goodwill 4,087.37 4,087.37
Other intangible assets 133.13 205.49
Financial assets
Investments 26,848.53 14,703.30
Loans 280.09 247.35
Other financial assets 829.55 429.81
Deferred tax assets (net) 747.73 2,732.26
Non - current tax assets (net) 414.08 716.59
Other non-current assets 3.28 5.57
Total non-current assets 63,575.89 54,133.35
Current assets
Inventories 211.87 221.71
Financial assets
Investments 331.80 184.79
Loans 30.11 43.62
Trade receivables 283.29 284.35
Cash and cash equivalents 1,647.38 26.67
Other bank balances 63.54 60.29
Other financial assets 501.77 913.89
Other current assets 81.23 151.37
Total current assets 3,150.99 1,886.69
Total Assets 66,726.88 56,020.04
EQUITY AND LIABILITIES
Equity
Equity share capital 1,039.82 1,039.82
Other equity 41,046.99 28,918.61
Equity attributable to the owners of the parent 42,086.81 29,958.43
Non controlling interest 875.75 687.61
Total equity 42,962.56 30,646.04
Liabilities
Non-current liabilities
Financial liabilities
Borrowings 16,153.95 17,328.50
Other financial liabilities 1,147.34 1,120.92
Deferred tax liabilities (net) 3,162.17 3,021.84
Provisions 31.16 47.87
Other non-current liabilities 354.87 449.43
Total non-current liabilities 20,849.49 21,968.56
Current liabilities
Financial liabilities
Borrowings 54.11 27.40
Trade payables
- Outstanding dues of micro and small enterprises - 1.23
- Outstanding dues of creditors other than micro and small enterprises 85.68 145.67
Other financial liabilities 2,337.57 2,895.91
Other current liabilities 396.13 322.34
Provisions 41.34 12.89
Total current liabilities 2,914.83 3,405.44
Total of equity and liabilities 66,726.88 56,020.04
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FOR AND ON BEHALF OF BOARD OF DIRECTORS

Place : Ludhiana Date : 30 June 2021

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Mahesh Munjal Chairman and Managing Director

7 Consolidated statement of cash flow for the year ended 31 March 2021

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(₹ in lakhs)
Year ended on Year ended on
Particulars 31 March 2021 31 March 2020
Audited Audited
A CASH FLOW FROM OPERATING ACTIVITIES
Profit/(loss) before tax 2,724.80 2,363.33
Adjustments for:
Depreciation on property, plant and equipment 895.35 924.69
Loss/(gain) on disposal of fixed assets (net) (3.50) 6.63
(Gain)/Loss on investment classified as FVTPL (182.59) 74.37
Interest income (191.58) (28.99)
Dividend income (874.95) (893.37)
Dividend on investment classified as FVTPL (0.18) (0.76)
Balances written off 15.49 -
Liability write back (5.17) (3.87)
Provision write back (0.23)
Finance costs 1,692.00 2,009.32
Operating profit before working capital changes 4,069.44 4,451.35
Movement in working capital
Decrease/(Increase) in inventories 9.84 (14.46)
Decrease/(Increase) in other financial assets 255.81 (148.87)
Decrease/(Increase) in trade receivables 1.06 68.75
Decrease/(Increase) other non-current assets 2.29 2.31
Decrease/(Increase) in other current assets 53.07 5.72
Increase/(Decrease) in other financial liabilities (85.96) 197.78
Increase/(Decrease) in other non-current liability (94.56) 84.64
Increase/(Decrease) in other current liability 73.79 (111.26)
Increase/(Decrease) in provisions 6.65 8.70
Increase/(Decrease) in trade and other payables (56.04) (103.95)
Cash flow from operating activities post working capital changes 4,235.39 4,440.71
Income tax paid (net) (120.82) (428.86)
Net cash flow from operating activities (A) 4,114.57 4,011.85
B CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment and intangible assets (38.83) (29.75)
Payments for investment properties (13.55) (167.89)
Purchases of investments (0.11) (650.00)
Proceeds from disposal of property, plant and equipment, capital work-in- 6.37 8.35
progress and intangible assets (net of advance)
Proceeds from sale of investments 67.70 813.42
Fixed bank deposits having original maturity more than 3 months (215.00) (780.00)
Redemption in margin money (3.25) (3.06)
Cash loans and advances 32.59 (86.12)
Dividend received 874.95 893.37
Interest received 88.42 32.34
Net cash flow from investing activities (B) 799.29 30.66
C CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings 23.15 13.05
Repayment of borrowings (1,695.11) (2,430.70)
Repayment of finance lease (28.86) (28.85)
Payment of lease liabilities (57.66) (57.41)
Interest paid (1,534.67) (1,841.30)
Net cash used in financing activities (C) (3,293.15) (4,345.21)
Decrease in cash and cash equivalents (A+B+C) 1,620.71 (302.69)
Cash and cash equivalents at the beginning of the year 26.67 329.36
Cash and cash equivalents at the end of the year 1,647.38 26.67
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