Nitco Ltd. — Interim / Quarterly Report 2022

Aug 11, 2021

NITCO TILES MARBLE MOSAIC O

August 11, 2021

To,

The Listing Department,
National Stock Exchange of India Limited
Exchange Plaza, Bandra Kurla Complex,
Bandra (E),
Mumbai -400051
Script code: NITCO

Dear Sir /Madam,

Sub: Outcome of the Board Meeting held today i.e. August 11, 2021

Pursuant to Regulation 30 & 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations"), we hereby inform that the Board of directors of the Company at their meeting held on August 11, 2021, has noted/ approved the following:-

• 1. Limited Review Report for the quarter ended June 30, 2021;
• 1. Unaudited Financial Results (Standalone & Consolidated) of the Company for the quarter ended June 30, 2021.

The Meeting of Board of Director's commenced at 12:00 noon and concluded at p.m.

Kindly treat this as a disclosure under Regulation 30(6) of the Listing Regulations, read with Para A of Part A of Schedule III of the said regulations.

Thanking you.

Corporate Office: NITCO Limited, NITCO House, Sheth Govindram Jolly Marg, Kanjur Marg (East), Mumbai- 400 042. Tel.: 91-22-67302500 J 67521555, Fax: 91-22-25786484. CIN: L26920MH1966PLC016547. Email: investorgrievances@nitco.in, Website:www.nitco.in

INDEPENDENT AUDITOR'S LIMITED REVIEW REPORT ON STANDALONE UNAUDITED QUARTERLY FINANCIAL RESULTS OF NITCO LIMITED PURSUANT TO THE REGULATION 33 OF THE SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS} REGULATIONS, 2015 (AS AMENDED}

TO THE BOARD OF DIRECTORS OF NITCO LIMITED

• 1. We have reviewed the accompanying Statement of unaudited standalone financial results ("the Statement") of NITCO Limited ("the Company") for the quarter ended June 30, 2021.
• 1. This statement is the responsibility of the Company's Management and has been approved by the Board of Directors. Our responsibility is to issue a report on these financial statements based on our review.
• 1. We conducted our review of the Statement in accordance with the Standard on Review Engagement (SRE) 2410, "Review of Interim Financial Information Performed by the Independent Auditors of the Entity'" issued by the Institute of Chartered Accountants of India. This Standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statements are free of material misstatement. A review is limited primarily to enquiries of company personnel and analytical procedures applied to financial data and thus provide less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.
• 1. Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying statement of unaudited financial results prepared in accordance with applicable accounting standards and other recognized accounting practices and policies has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 including the manner in which it is to be disclosed, or that it contains any material misstatement.

5. Material Uncertainty Related to Going Concern:

1 We draw attention to following Points due to which material uncertainty exist that may cast significant doubt on the company's ability to continue as a going concern. However the accounts of the company have been prepared as a going concern:

Mum ba; Offi<e, A Wing , 201/202 2nd Floor.Planet Ind ustria I Estate, 5 u b hash Road, (r" J.J Vile Parle (East) Mumbai - 400057 . V <\ Tel. No:. +9122 26119080/ 2611 9081 Email:.nayakrane@gmail.com

• i. There is a default in repayment of term loan from JMFARC of Rs 200.78 crore as on 30th June, 2021. JMFARC is also having a right to revoke the waiver of Rs 546 er already given in case of default.
• ii. Company is continuously making operating cash losses. As on 301 h June 2021 there is·a negative net worth of Rs 100.99 crore.
• iii. COVID -19 Pandemic will impact the Company's results which depend on the future developments t hat are highly uncertain.
• 1. Lockout was declared in one of the main Tile Manufacturing unit of Company situated in Alibag in January 2020.

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

6 We draw attention to Note no 3 of the statement, regarding borrowing. "Restructuring of company's debt was approved by JMFARC on January 23, 2018. The company has requested UC & DBS Bank Limited _for restructuring of its facility (principal outstanding Rs. 19.75 Crs.) on terms similar to restructuring done by JMFARC. Pending sanction from UC no further adjustments in respect of UC & DBS facility has been made.

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

For Nayak & Rane Chartered Accountants Firm Registration No. 117249W

Partner M.No. 100788

Place: Mumbai Date: August 11, 2021

UDIN No '.2 \ I 001 8 ~A A A A J l, I I S-6

INDEPENDENT AUDITOR'S LIMITED REVIEW REPORT ON CONSOLIDATED UNAUDITED QUARTERLY FINANCIAL RESULTS OF NITCO LIMITED PURSUANT TO THE REGULATION 33 OF THE SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015 (AS AMENDED)

TO THE BOARD OF DIRECTORS OF NITCO LIMITED

• 1. We have reviewed the accompanying statement of consolidated unaudited financial results ("the Statement'') of Nitco Limited (hereinafter referred to as the "the Parent") and its subsidiaries (the Parent and its subsidiaries together referred to as the "Group"), (refer annexure "A" for the list of subsidiaries included in the statement), for the quarter ended 30th June 2021 ,being submitted by the Parent pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the "Listing Regulations, 2015") (as amended) including relevant circulars issued by the SEBI from time to time .
• 1. The Statement, which is the responsibility of the Parent's Management and approved by its Board of Directorst has been prepared in accordance with the recognition 13nd 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. Our responsibility is to express a conclusion on t he Statement based on our review.
• 1. We conducted our review of the statement in accordance with the Standard on Review Engagement (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 analytica l and other review with standards on auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

We have also performed procedures inaccordance with the circular issued by the SEBI under regulation 33(8) of the SEBI (Listing Obligations and Diclosure Requirements ) Regulation 2015, as amended, to the extent possible.

1. Based on our review conducted and procedures performed as stated in paragraph 3 above and based on the consideration of the review reports of the other auditors referred to in paragraph 6 below, nothing has come to our attention that causes us to ;.,clieve that the accompanying Statemen.i..::::::~:::::,.... :{~K & prepared in accordance with the recognition and measurement principles laid down in the afar t' ~"1'-i. ~ f"'". Indian Accounting Standard and other accounting principles generally accepted in India, ha ~ t

Mumbai Office: A Wing, 201/2022nd Floor, Plan et Indu strial Estate, Subhash Road , Vi l e Parle (East) M um bai - 400057 . Tel. No:. +9 1 22 26119080/ 261 l 9081 Ema il :.nayakrane@gmail.com disclosed the information required to be disclosed in terms regulation 33 of the SEBI ( Listing Obligations and Disclousre Requirements) Regulation , 2015, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement.

5. Material Uncertainty Related to Going Concern:

• 5.1 We draw attention to following Points due to which material uncertainty exist that m~y cast significant . doubt on the company's ability to continue as a going concern. However the accounts of the company have been prepared as a goi.ng concern:
  • I. There is a default in repayment of term loan from JMFARC of Rs 200.78 crore as on 30th June, 2021. JMFARC is also having a right to revoke the waiver of Rs 546 er already given in case of default.
  • II. Company is continuously making operating cash losses. As on 30th June 2021 there is a negative net worth of Rs 121.70 crore of the group.
  • Ill. COVID -19 Pandemic will impact the Company's results which depend on the future developments that are highly uncertain.
• 5.2. Lockout was declared in one of the main Tile Manufacturing unit 'of Company situated in Alibag in January 2020.

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

6. Other Matter

We did not review the interim financial statements/financial information/ · financial results of 1 subsidiary and 13 fellow subsidiaries included in the consolidated unaudited financial results, whose interim financial statements/ financial information/financial results -reflect total assets of Rs. 6,465.74 Lacs as at June 30, 2021 and total revenue of Rs. 39.31 lacs and total net loss after tax of Rs.17.07 lacs and total comprehensive loss ~f Rs. 17.07 Lacs, for the quarter ended June 30, 2021, as considered in the Statement. These interim financial statements/ financial information/financial results have been reviewed by other auditors whose reports have been furnished to us by the management and our conclusion on the Statement , in so far as it relates to the amounts and disclosures included in respect of these subsidiaries is based solely on the report of such other auditors and the procedures performed by us as stated in paragraph 3 above.

Our conculsions on the statements is not modified in respect of the above matters.

9

For Nayak & Rane Chartered Accountants Firm Registration No. 117249W

Partner

M.J\Jo. 100788

Place: Mumbai Date: August 11, 2021

UDIN!'Jo: 211 OOl~'bAA AA "JM \£)CJ'?::.

Annexue-A

List of entities consolidated:

Sr.No.	Name of the Company
	Subsidiaries
1	Nitco Realties Private Limited
	Fellow Subsidiaries
1	Maxwealth Properties Pvt. Ltd.
2	Meghdoot Properties Pvt. Ltd.
3	Roaring - Lion Properties Pvt. Ltd.
4	Feel Better Housing Pvt. Ltd.
5	Quick-Solution Properties Pvt. Ltd
6	Silver-Sky Real Estates Pvt. Ltd.
7	Opera Properties Pvt. Ltd.
8	Ferocity Properties Pvt. Ltd.
9	Glamorous Properties Pvt. Ltd.
. 10	Nitco IT Parks Pvt. Ltd .
11	Nitco Aviation Pvt. Ltd.
12	Aileen Properties Pvt. Ltd.
13	Quick Innovation lab Pvt ltd

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N ITCO LIMITED Registered Office: Plot No.3. Nitco House. Ka njur Village Road, Kan jurmarg (East!. Mumbai - 400042 Tel No.: 022 67521555, Fax: 022 67521500, ~m : investorgrievances@nitco.in, Website: www.nitco.in, CIN: L26920MH1966PLC016547

STANDALONE							(Rs. in Lakh except earnings per share)CONSOLIDATED		0
Quarter EndedYear ended							Year ended
30.06.2021(Unaudited)		31.03.2021(Refer Note# 7)	30.06.2020(Unaudited)	31.03.2021(Audited)	Particulars	30.06.2021(Unaudited)	31.03.2021(Refer Note# 7)	30.06.2020(Unaudited)	31.03.2021(Audited)
					CONTINUING OPERATIONS
					Revenue from Operations
	7,870.35	11,775.75	2,304.64		32,323.30 Sale of Products	7,909.47	11,826.28	2,349.74	32,511.50
	70.86	94.44	3.18		184.45 Other operational revenue	70.86	94.44	3.18	184.45
	7,941.21	11,870.19	2,307.82		32,507.75 Total Revenue from Operations	7,980.33	11,920.72	2,352.92	32,695.95
	102.54	71.16	92.63		259.67 Other Income	102.73	122.49	92.86	312.43
	8,043.75	11,941.35	2,400.45		32,767.42 Total IncomeExpenses	8,083.06	12,043.21	2,445.78	33,008.38
	486.95	789.83	130.87		2,173.26 Cost of materials consumed	521.63	826.05	169.22	2,329.76
	5,785.98	8,095.66	2,091.55		22,204.07 Purchase of Stock in trade	5,785.98	8,095.66	2,091.55	22,204.07
	17.68	327.56	(193.27)	700.97	Changes in inventories of finished goods, Stock in tradeand work-in-progress	17.68	327.55	(193.27)	700.97
	1,278.16	1,324.95	1,204.87		5,097.08 Employee benefits expense	1,278.16	1,320.52	1,204.87	5,097.08
	750.50	861.37	743.84		3,074.97 Depreciation and amortization expense	750.50	861.37	743.84	3,074.97
	1,541.90	1,452.21	1,263.43		5,362.07 Finance cost (net)	1,541.90	1,452.02	1,263.46	5,362.07
	1,321.63	2,732.98	581.64		6,291.08 Other expenses	1,343.29	3,617.55	593.84	7,231.16
	11,182.80	15,584.56	5,822.93		44,903.50 Total Expenses	11,239.14	16,500.72	5,873.51	46,000.08
	(3,139.05)	(3,643.21)	(3,422.48)	(12,136.08) Profit	/ (Loss) from Continuing Operations before taxTax expenseCurrent Tax (current year)	(3,156.08)	(4,457.51)	(3,427.73)	(12,991.70)
		376.51			376.51 Current Tax (earlier years)		376.51		376.51
					Deferred Tax
	(3,139.05)	(4,019.72)	(3,422.48)		(12,512.59) Net Profit for the period from Continuing Operations	(3,156.08)	(4,834.02)	(3,427.73)	(13,368.21)
					Profit/ (Loss) attributable to Non-Controlling Interest	(0.33)	0.59	(0.32)	(0.83)
					Profit attributable to the Owners of the Parent	(3,155.75)	(4,834.61)	(3,427.41)	(13,367.38)
					Discontinued Operations
					Profit/ (Loss) before tax from discontinued operations			(218.43)	(626.23)
					Tax expense of discontinued operations
					Net Profit/ (loss) for the period from Discontinued			(218.43)	(626.23)
					Operations
					Profit/ (Loss) attributable to Non-Controlling Interest			(107.02)	(306.85)
					Profit attributable to the Owners of the Parent			(111.41)	(319.38)

(3,139.05)	(4,019.72)	(3,422.48)		(12,512.59) Net Profit/ (Loss) after tax	(3,156.08}	(4,834.02)	(3,646.16)	(13,994.44)
				Profit/ (Loss) attributable to Non-Controlling Interest	(0.33)	0.59	(107.34)	(307.68)
				Profit attributable to the Owners of the Parent	(3,155.75)	(4,834.61)	(3,538.82)	(13,686.76)
				other Comprehensive Income
(32.56)	46.88	58.78		54.50 (i) Items that will not be reclassified to profit or loss	(32.56)	46.88	58.78	54.50
				(ii) Tax relating to items that will not be reclassified to
				profit or loss
(32.56}	46.88	58.78		54.50 other Comprehensive Income (OCI)	(32.56}	46.88	58.78	54.50
				OCI attributable to Non-Controlling Interest
(32.56)	46.88	58.78		54.50 OCI attributable to the Owners of the Parent	(32.56)	46.88	58.78	54.50
(3,171.61}	(3,972.84)	(3,363.70}		(12,458.09) Total Comprehensive Income	(3,188.64)	(4,787.14)	(3,587.38)	(13,939.94}
				- Non-Controlling Interest	(0.33)	0.59	(107.34)	(307.68)
(3,171.61}	(3,972.84)	(3,363.70}		(12,458.09) Net Profit/ (l oss) after taxes, Non-Controlling Interest	(3,188.31}	{4,787.73)	(3,480.04)	(13,632.26)
7,185.90	7,185.90	7,185.90		7,185.90 Paid-up equity share capital (Face Value Rs. 10 per share)	7,185.90	7,185.90	7,185.90	7,185.90
			(	) Reserves excluding revaluation reserves as per balance				(14,443.26)
			14,112.93 sheet
				Earnings per share (before extraordinary items) (of Rs. 10/ -
				each) (not annualized):
(4.41)	(5.53)	(4.68)		(17 .34} Basic - Continuing Operations	(4.44)	(6.66)	(4.69)	(18.53)
(4.41)	(5.53)	(4.68)		(17.34} Diluted - Continuing Operations	(4.44)	(6.66)	(4.69)	(18.53)
				- Basic - Discontinuing Operations			(0.15)	(0.44)
				- Diluted - Discontinuing Operations			(0.15)	(0.44)
(4.41)	(5.53)	(4.68)		(17.34) Basic - Continuing & Discontinuing Operations	(4.44)	(6.66)	(4.84)	(18.97)
(4.41)	(5.53)	(4.68)		(17.34) Diluted - Continuing & Discontinuing Operations	(4.44)	(6.66)	(4.84)	(18.97)

$: c 3 0- . ' .j>. 0 0 0 ~

Vivek Talwar Chairman & Managing Director

Place : MUMBAI Date : August 11, 2021

									(Rs. in Lakh)
mited,		STANDALONE				CONSOLIDATED
	Quarter Ended			Year ended	Particulars		Quarter Ended		Year ended
	30.06.2021	31.03.2021	30.06.2020	31.03.2021		30.06.2021	31.03.2021	30.06.2020	31.03.2021
NITCO	(Unaudited)	(Refer Note #7)	(Unaudited)	(Audited)		(Unaudited)	(Refer Note #7)	(Unaudited)	(Audited)
					Net Sales/ Income from Operations
House,	7,941.21	11,870.19	2,307.82	32,495.67	- Tiles and other related products	7,941.21	11,870.19	2,295.48	32,495.67
				12.08	- Real estate	39.12	50.53	57.44	200.28
	7,941.21	11,870.19	2,307.82		32,507.75 Total Revenue	7,980.33	11,920.72	2,352.92	32,695.95
Sheth					Segment results
	(1,559.07)	(2, 159.72)	(2, 122.28)		$(6,659.42)$ - Tiles and other related products	(1,559.07)	(2, 159.72)	(2,498.95)	(7, 285.65)
	(38.08)	(31.28)	(36.77)		$(114.59)$ - Real estate	(55.11)	(845.59)	116.25	(970.21)
	(1,597.15)	(2, 191.00)	(2, 159.05)		(6,774.01) Total Segment Profit Before Finance Cost and Tax	(1,614.18)	(3,005.31)	(2,382.70)	(8, 255.86)
	1,541.90	1,452.21	1,263.43		5,362.07 Interest and other financial cost	1,541.90	1,452.02	1,263.46	5,362.07
Govindram	(3, 139.05)	(3,643.21)	(3, 422.48)		(12,136.08) Profit Before Tax	(3, 156.08)	(4,457.33)	(3,646.16)	(13,617.93)
Jolly Marg,					Capital Employed
					Segmental Assets
	63,900.08	65,978.67	71,015.23	65,978.67	- Tiles and other related products	66,984.30	69,062.88	74,528.54	69,062.88
	22,968.40	22,997.91	23,142.59	22,997.91	- Real estate	22,818.20	22,909.08	23,802.28	22,909.08
	366.69	330.18	668.92	330.18	- Unallocated/ Corporate	366.69	330.18	668.92	330.18
	87,235.17	89,306.76	94,826.74	89,306.76	Total Segmental Assets	90,169.19	92,302.14	98,999.74	92,302.14
					Segment Liabilities
Kanjur Marg	19,786.08	20,135.91	20,043.03		20,135.91 Tiles and other related products	24,477.79	24,827.61	22,547.11	24,827.61
	138.10	104.21	146.44		104.21 Real Estate	451.31	461.74	402.13	461.74
$\widehat{\mathbf{C}}$	19,924.18	20,240.12	20,189.47		20,240.12 Total Segment Liabilities	24,929.10	25,289.35	22,949.24	25,289.35

SEGMENTWISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER ENDED JUNE 30, 2021

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Place : MUMBAI Date : August 11, 2021

~l ' VivekTalwa Chairma & Managing

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V> ,... 0\ 0 '..J 0 w 3l ~ 0 ,., ~ N ID 1. The above financia l results were reviewed by the audit committee and thereaftertaken on record by the Board of Directors at their Meeting held on August 11, 2021. The Statutory auditors of the Company have conducted a 11Limited Review" of the above Unaudited Flnancial Results for th.e period ended June 30, 2021.

2. The above results have been prepared in accordance with the principles and procedures of the Indian Accounting Standards ('Ind AS') as notified under the Companies (Indian Accounting Standards) Rules, 2015 as specified under section 133 of the Companies Act, 2013 and other accounting principles generally accepted in India.

1. Restructuring of company's debt was approved by JMFARC on January 23, 2018. The company is negotiating with UC & DSS Sank limited for restructuring of Its facility (princ ipal outstanding Rs. 19.75 Crs as on 30.06.2021) on t erms similar to restructuring done by JMFARC. Pending negotiations with UC & DBS, no further adjustments In respect of UC fa clllty has been made.

4. On 27th January, 2020 lock out was declared at tiles manufacturing unit at Alibaug for a temporary period. The lock out was necessitated due to non·co·operation, coercive and threatening tactics by workmen at the factory premises and with a view to safeguard the interest of the organisation, the safety and security of the personnel and the property of the Company.

S. New Vardhman Vitrified Pvt. Ltd. (NWPL) was subsidiary of NITCO limited till 10th December, 2020. NWPL ceased to be subsidiary with effect from this da te. However, the share transfer has not been effected pending NOC from some of the lenders. Accordingly, the assets and liabilities of NWPL has been classified as Held for Sale in t he Statement of Asset and liabilities and profit/loss have been reported as discontinued operations in the Statement of Profit and loss.

6. In view of the accumulated losses, no provision for Tax has been made for the current year.

1. The figures for the quarter ended March 31, 2021 are balancing figures between the audited figures in respect of the full financial year ended on March 31, 2021 and the unaudited published year to da te figures upto third quarter ended on December 31, 2020. Figures up to third quarter ended December 31, 2020 were subjected to "limited review" by the Statutory Auditors.

8. The previous quarter/ year figures are regrouped/ restated/ reclassified/ rearranged, wherever necessary, to make them comparable.