Nitco Ltd. — Interim / Quarterly Report 2023

Nov 9, 2023

NITCO/SE/2023-24/27 November 9, 2023

To,

Corporate Service Department,	The Listing Department,
BSE Limited	National Stock Exchange of India Limited
Jeejeebhoy Towers	Exchange Plaza, Bandra Kurla Complex,
Dalal Street,	Bandra (E),
Mumbai – 400 001	Mumbai – 400 051
Script code: 532722	Script code: NITCO

Sub: Outcome of the Board Meeting of NITCO Limited ("the Company") held today i.e. Thursday, November 09, 2023

Dear Sir/Madam,

Pursuant to Regulation 30 read together with Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("the Listing Regulations"), we hereby inform that the Board of Directors of the Company at their meeting held today i.e. Thursday, November 09, 2023 has considered and approved the Un-audited Standalone and Consolidated Financial Results for the quarter and half year ended September 30, 2023 (Q2).

A copy of Un-audited Financial Results along with the Limited Review Report thereon, are attached herewith.

The Meeting of Board of Directors of the Company commenced at 12:30 P.M and concluded at 13:40 P.M.

Kindly take the above information on your records.

Thanking You,

Yours faithfully,
For NITCO Limited
Vivek Talwar
	Chairperson and Managing Director

DIN: 00043180

NITCO LIMITED

Registe red Offi ce: Plot No.3 Nit co House. Kan jur Village Road, Kan jurmarg (East). Mumbai - 400042

Tel No .: 022 67521555, Fax: 022 25786484, Email : invest orgrievances@ nitco.in. Websit e : www.nitco.i n. CIN: L26920MH1966PLC016547

STATEMENT OF STANDALONE & CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2023

										(Rs. in Lakhs except ea rnings per sha&) ~
				STANDALONE						CONSOLIDATED		•
		Three Month Ended			Six Month Ended	Year ended		Three Month Ended			Six Month Ended	Year ended -
Particulars					30.09.2023 30.06.2023 30.09.2022 30.09.2023 30.09.2022 31.03.2023 30.09.2023 30.06.2023 30.09.2022 30.09.2023 30.09.2022 31.03.2023 (U naudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)					(Audited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
Revenue from Operations
Sa le of Products	7,996.89	9,120.07	7,238.79	17,116.96	16,208.91	37,824.12	7,999.24	9,173.05	7,285.64	17,172.29	16,296.91	38,026.61
Other operational revenue	53.55	70.13	132.28	123.68	220.87	342.80	53.55	70.13	132.31	123.68	220.90	342.80
Total Revenue from Operations	8,050.44	9,190.20	7,371.07	17,240.64	16,429.78	38,166.92	8,052.79	9,243.18	7,417.95	17,295.97	16,517.80	38,369.42
Other Income	183.03	171.05	137.88	354.08	311.45	450.41	183.03	171.21	138.15	354.24	313.62	454.61
Total Income	8,233.47	9,361.25	7,508.95	17,594.72	16,741.23	38,617.33	8,235.82	9,414.39	7,556.10	17,650.21	16,831.42	38,824.03
Expenses
Cost of mat erials consumed	1,265.46	819.81	990.74	2,085.27	1,804.97	4,054.81	1,265.97	865.56	1,031.78	2,131.53	1,882.85	4,230.74
Purchase of Stock in trade	4,618.56	6,019.24	5,020.86	10,637.80	11,391.92	26,062.01	4,618.56	6,019.24	5,020.86	10,637.80	11,391.92	26,062.01
Changes in inventories of fi nished goods, Stock in trade and work-in-progress	(39.97)	301.88	(70.04)	261.91	76. 00	529.10	(39.97)	301.88	(70.04)	261.91	76.00	529.10
Employee benefits expe nse	1,426.70	1,365.47	1,325.48	2,792.17	2,660.57	5,372.68	1,426.70	1,365.47	1,325.48	2,792.17	2,660.57	5,372.68
Depreciation and amortization expense	733.29	724.14	740.48	1,457.43	1,478.14	2,925.98	733.29	724.14	740.48	1,457.43	1,478.14	2,925.98
Fi na nce cost (net)	2,397.20	2,194.83	1,858.67	4,592.03	3,560.05	7,335.29	2,397.20	2,194.86	1,858.69	4,592.04	3,560. 14	7,335.29
Other expenses	996.87	1,179.24	1,252.52	2,176. 11	2,379.22	5,877.98	998.77	1,187.04	1,261.06	2,185.81	2,393.09	5,907.13
Total Expenses	11,398.11	12,604.61	11,118.71	24,002.72	23,350.87	52,157.85	11,400.52	12,658.19	11,168.31	24,058.69	23,442.71	52,362.93
Loss before tax and exc.eptional items	(3,164.64)	(3,243.36)	(3,609.76)	(6,408.00)		(6,609.64) (13,540.52)	(3,164.70)	(3,243.80)	(3,612.21)	(6,408.48)		(6,611.29) (13,538.90)
Exceptional items-gain/(loss) (Refer Note - 8)	-	-	-	-	(852.00)	(1,585.34)	-		-	-	(852.00)	(1,585.34)
Loss before tax and after exceptional items	(3,164.64)	(3,243.36)	(3,609.76)	(6,408.00)		(7,461.64) (15,125.86)	(3,164.70)	(3,243.80)	(3,612.21)	(6,408.48)		(7,463.29) (15,124.24)
Tax expense		-	-	-		-	-	-	-
Current Tax	-	-	-	-		-	-	-	-	-	-	0.90
Deferred Tax	-	-	-	-	-	-	-	-	-	-		-
(Short) I Excess provision for tax (earlier years)		(32.89)	-	(32.89)	-	-	-	(32.89)	-	(32.89)		(0. 10)
Net Profit/(Loss) for the period	(3,164.64)	(3,276.25)	(3,609.76)	(6,440.89)		{7,461.64) (15,125.86)	(3,164.70)	(3,276.69)	(3,612.21)	(6,441.37)		(7,463.29) (15,125.04)
Profit/ (Loss) attributable to Non-Controlli ng Int erest	-	-	-	-	-	-	(0.02)	(0.10)	(0.58)	(0.12)	(0.79)	(0.25)
Profit/(Loss) attri butable to the Owners of th e Pa rent	-	-	-	-	-	-	(3,164.68)	(3,276.59)	(3,611.63)	(6,441.25)		(7,462.50) (15,124.80)
Net Profit/ (Loss) after tax	(3,164.64)	(3,276.25)	(3,609.76)	(6,440.89)		{7,461.64) (15,125.86)	(3,164.70)	(3,276.69)	(3,612.21)	(6,441.37)		(7,463.29) (15,125.04)
Profit/ (Loss) attributable to Non-Controlli ng Interest	-	-	-	-	-	-	(0.02)	(0.10)	(0.58)	(0. 12)	(0.79)	(0.25)
Profit/(Loss) attri butabfe to t he Owne rs of the Pa rent	-	-	-	-	-	-	(3,164.68)	(3,276.59)	(3,611.63)	(6,441.25)		(7,462.50) (15,124.79)

(

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NITCO LIMITED

Registered Office: Plot No.3, Nitco House, Ka njur Village Road, Ka njurm arg (East!. Mum bai - 400042

Tel No.: 022 67521555, Fax: 022 25786484, Emai l: invest orgri evan ces@nitco.in, Website: www.nitco.in, CIN: L26920MH1966PLC016547 STATEMENT OF STANDALONE & CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2023 )> n

										(Rs. in Lakhs except earnings per shace)
				STANDALONE						CONSOLIDATED
		Three Month Ended			Six Month Ended	Year ended		Three Month Ended		Six Month Ended		Year ended
Particulars	30.09.2023 (Unaudited)	30.06.2023 (Unaudited)	30.09.2022 (Unaudited)	30.09.2023 (Unaudited)	30.09.2022 (Unaudited)	31.03.2023 (Audited)	30.09.2023 (Unaudited)	30.06.2023 (Unaudited) (Unaudited)	30.09.2022	30.09.2023 (Unaudited)	30.09.2022 (Unaudited)	31.03.2023 (Audited)
Other Comprehensive Income
(i) Items that will not be reclassified to profit or loss	(6.20)	(12.64)	(24.98)	(18.84)	8.44	30.30	(6.20)	(12.64)	(24.98)	(18.84)	8.44	30.30
(ii) Tax relating to items that will not be reclassified to profit or lloss		$\overline{a}$		-
Other Comprehensive Income (OCI)	(6.20)	(12.64)	(24.98)	(18.84)	8.44	30.30	(6.20)	(12.64)	(24.98)	(18.84)	8.44	30.30
OCI attributable to Non-Controlling Interest
OCI attributable to the Owners of the Parent	(6.20)	(12.64)	(24.98)	(18.84)	8.44	30.30	(6.20)	(12.64)	(24.98)	(18.84)	8.44	30.30
Total Comprehensive Income	(3, 170.84)	(3, 288.89)	(3,634.74)	(6,459.73)	(7, 453.20)	(15,095.56)	(3, 170.90)	(3, 289.33)	(3,637.19)	(6,460.21)	(7, 454.85)	(15,094.74)
Non-Controlling Interest							(0.02)	(0.10)	(0.58)	(0.12)	(0.79)	(0.25)
Net Profit/ (Loss) after taxes, Non-Controlling Interest	(3, 170.84)	(3, 288.89)	(3,634.74)	(6, 459.73)	(7,453.20)	(15,095.56)	(3, 170.88)	(3, 289.22)	(3,636.61)	(6,460.09)	(7,454.06)	(15,094.49)
Paid-up equity share capital (Face Value Rs. 10 per share)	7,185.90	7,185.90	7,185.90	7,185.90	7,185.90	7,185.90	7,185.90	7,185.90	7,185.90	7,185.90	7,185.90	7,185.90
Reserves excluding revaluation reserves as per balance sheet						(41, 756.85)						(42, 112.80)
Earnings per share (Face Value of Rs.10/- each) (not
annualized):
Basic	(4.40)	(4.56)	(5.02)	(8.96)	(10.38)	(21.05)	(4.40)	(4.56)	(5.03)	(8.96)	(10.39)	(21.05)
Diluted	(4.40)	(4.56)	(5.02)	(8.96)	(10.38)	(21.05)	(4.40)	(4.56)	(5.03)	(8.96)	(10.39)	(21.05)

Place: MUMBAI Date : 09-November-2023

Vivek Talw r Cha if n & M a nag· g Director \ (DIN : 000 180) I

SEGMENTWISE REVENUE, RESULTS FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2023

Place : MUMBAI Date : 09-November-2023

( Vivel Tal ar Chairman & Mana · g Director (DIN 0004318

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l ILl::8 MAKt:ILI:: nm	STANDALONE		CONSOLI DATED	(Rs in Lakhs)
	As at			As at
Particulars	30.09.2023	31.03.2023	30.09.2023	31.03.2023
	(Unaudited)	(Audited)	(Unaudited)	(Audited)
Assets
Non-current assets
(a) Property, plant & equipment	32,112.35	33,472.14	32,238.66	33,582.26
(b) Capital work-in-progress	244.67	244.67	423.84	423.84
(c) Right-of-use Assets	243.13	195.63	243.14	195.63
(d) Intangible Assets	30.12	34.41	30.12	34.41
(e) Goodwill On Consolidation	-	-	323.77	323.77
(f) Financial assets
(1) Investments	694.59	694.59	-	- 3,487.60
(2) Other Financial assets	3,521.19 1,534.66	3,487.60 1,522.37	3,521.19 1,534.66	1,522.37
(g) Other non-current assets Sub-total - Non-current assets	38,380.71	39,651.41	38,315.38	39,569.88
Current assets
(a) Inventories	7,170.26	6,772.64	7,171.28	6,773.98
(b) Inventories Real Estate	15,000.00	15,000.00	18,734.29	18,734.29
(c) Financial assets
(1) Trade receivables	4,812.37	7,391.54	4,819.32	7,398.94
(2) Cash and cash equivalents	1,030.60	1,055.36	1,096.99	1,122.89
(3) Loans	5,900.19	5,892.67	2,046.05	2,028.53
(4) Other Financial assets	83.86	47.57	96.96	60.67
(d) Other current assets	3,210.31	2,983.78	3,242.60	3,016.08
(e) Asset held for sale (Refer note no 11)	-	-	3,084.24	3,084.24
Sub-total - Current assets	37,207.59 75,588.30	39,143.56 78,794.97	40,291.73 78,607.11	42,219.62 81,789.50
Total - Assets Equity and liabilities
Equity
(a) Equity Share capital	7,185.90	7,185.90	7,185.90	7,185.90
(b) Other equity	(48,216.59)	(41,756.85)	(48,573. 76)	(42,112.80)
(c) Non-controlling interest	-	-	(1,724.69)	(1,724.57)
Sub-total-Equity	(41,030.69)	(34,570.95)	{43,112.55)	{36,651.47)
Liabilities
Non-current liabilities
(a) Financial liabilities
(1) Borrowings	20,000.00	20,000.00	20,000.00	20,000.00
(2) Lease Liabilities	122.66	106.40	122.66	106.40
(b) Provisions	146.71 20,269.37	160.06 20,266.46	146.71 20,269.37	160.06 20,266.46
Sub-total-Non-current liabilities Current liabilities
(a) Financial liabilities
(1) Borrowings	70,849.20	67,972.16	70,849.20	67,972.16
(2) Trade payables
a) Total outstanding dues of micro enterprises and small enterprises;	473.62	740.93	473.62	740.93
and
b) Total outstanding dues of creditors other than micro enterprises and	15,326.66	15,116.85	15,424.41	15,181.35
small enterprises
(3) Lease Liabilities	132.73	102.58	132.73	102.58
(4) Other financial.liabilities	4,287.87	2,331.35	4,306.54	2,340.15
(b) Other current liabilities	5,150.99	6,609.90	5,440.65	6,917.08
(c) Provisions	128.55	225.69 -	.131.44	228.56 4,691.70
(d) Liability/ Disposal Group held for sale (Refer note no 11) Sub-total-Current liabilities	- 96,349.62		4,691.70 93,099.46 , _ 1,01,450.29	98,174.51
	75,588.30	78, 794.97/	78,60 .11	81,789.50
		f	\

Date : 09-November-2023 Chairman & Managing D'

Registered Office: NITCO Limited, NITCO House, Sheth Govindram Jolly Marg anjur Marg (E) Mumbai f~OO O©l'l.43180) Tel.: 91-22 -25772800 I 25772790, Fax: 91-22-25786484. CIN: L26920MH1966PLC016547. Email : investorgrievances@nitco.inWebsite: www.nitco.in

Place: MUMBAI ~ Vivek Talwar

Ca sh Flow Statement for the half yea r ended 30th September 2023

		Standalone				Con	solidated	{Rs in Lakhs)
iculars Part	30	.09.2023	30 .09	.2022	30.09.2023		3 0	.09.2022
A. CASH FLOW FROM OPERATING ACTIVITIES
Net Profit before tax (b~fore exceptional items)		(6 ,408 .00)		(6 ,609 .64)		(6,408 .48)		(6,611.29)
sted fo r: Adju
Depreciation & amortisation expense	1,457.43		1,478 .14		1,457.43		1,478.14
(Profi t)/Loss on sale of Property, plant & equipment (Net)	(0 .03)				(0.03)
Finance costs	4,592.03		3,560 .05		4,592.03		3,560 .14
Provisions against Inventory	52.21) (5		57.48		(552.21)		57.48
Provisions against credit impaired trade receivables	(299.54)		34.26		(299.54)		34.26
Provisions against other· liabilities	(0.46)	5 ,197.22		5,129 .93	(0.50)	5,197 .18		5 ,130 .02
Operating Profit/( Loss) befo re Working Capital Changes		(1 ,210.78)		(1 ,479.71)		,211.30) (1		(1,481.27)
Work ing capital adjustments:
Adjustment for (increase)/decrease :
{lncreas e)/decrease in inventories	154.59		(357.8 5)		154 .91		(357.67)
(lncrease)/decr ease in tiade receivables	2,878 .71		4,280.55		2,868.41		4,281.76
(lncr ease)/d ecrease in and other receivables	(362.92)		1,48 7 .57		(362.9 2)		1,489.70
ecrease) in tiade and other lncrease/(d paya bles	( 1,455.51)		(4,030 .83)		( 1,429.90)		(4,038 .33)
lncrease/(decre ase) in provisions	-	1,214.87	18 .00	1 ,397 .44		1,230 .50	18 .03	1 ,393 .49
sh Generated from O 'perations Ca		4.09		(82 .27)		19.20		( 8 7 .78)
Taxes paid (net of r efunds)				(3.22)				(3.22)
Net Cash generated from Ope rat ions		4.09		(85 .49)		19 .20		(91.00)
B. CASH FLOW FROM INVESTI NG ACTIVITIES
Increase/ (decrease) Property, plant & equipment (Net)	(28.85)		-		(45.10)		.26) (2
Net Cash flow (u sed in}'lnvesting Activities		(28.8S)				.10) {4S		.26) {2
CASH FLOW FROM FINANCING ACTIVITIES C.
Proceeds/ {Repayment) of Long Term Borrowings (Net)			.28) (7				{7.28)
Paym ent of lease liability			(70.22)				{70.22)
Finance co sts paid (net) .			(21.44)				(21.53)
Net Cash flow (used in) :Financing Activities				(98 .93)				(99 .03)
Net increase in Cash and Ca sh Equivalents (A+B+C)		(24.76)		(184.42)		(2S .90)		(192 .30)
Cash and Cash Equivalents at the beginning of the year		1,055.36		1,167 .08		1,12 2.89		1,244.00
Cash and Cash Equivale.nts at the end of the year		1 ,030 .60		982.66		1 ,096 .99		1 ,051.70
Components of ca sh and ca sh equiva l ents
Cash on hand		2.45		2.25		6.79		4.89
Ba lance in current account and deposits with banks		1,028.15		980.41		1,090.20		1,046.81
Cash and Cash Equ .nts at the end of the ye ivale ar		1 030 .60		982 .66		1 096 .99		1 051.70

0 ~ "'-'

Place: MUMBAI Date : 09-November-2023

(

1. The above financial results were reviewed by the audit committee and thereafter taken on record by the Board of Directors at their Meeting held on November 09, 2023 The same have also been subjected to Limited Review by the Statutory Auditors.

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.

3. In 2018, the Company had received sanction from JM Financial Asset Reconstruction Company Limited ( ¹¹ JMFARC1 ) for restructuring of Company's debt vide a Restructuring Agreement dated 27th March 2018 entered between the Company and JMFARC.

In accordance with the terms of the Restructuring agreement, the Company was obligated to ensure repayment of the Restructured Facilities, along with interest thereon in the manner specified in the Restructuring Agreement. Upon failure to ensure repayment of restructured facilities, JMFARC shall have an absolute right to revoke the reliefs and concessions granted in the Restructuring agreement. Accordingly, the debts and interest are stated at the restructured values.

The Company had ~ommitted default in ensuring the repayments of the restructuring facility . On 19 September 2022, JMFARC has revoked the restructuring of existing facilities (excluding the NCO and RPS facility) and the dues amounting to Rs. 2,42,762.93 Lakhs has been reinstated, however as per books of accounts the loans are not restated and the balance as at 30th Septem~er, 2023 is Rs. 68,961.93 Lakhs

The Company is in the process of negotiating with the JMFARC for the restructuring/extension of restructuring of its facilities. Pending negotiations, no further adjustment is made.

Further, Company has received an email on 15th November 2022 from JM Financial Asset Restructuring Company Limited (acting in its capacity as trustee of JMFARC-LVB Ceramics September 2014- Trust) - Financial Creditor w .r.t. filing of Application under Section 7 of Insolvency and Bankruptcy Code, 2016 read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 with Nationa l Company Law Tribunal (NCLT) to initiate corporate insolvency resolution process. The application is numbered and the C.P. (I B) No. allotted is - C.P. (IB)/1308(MB)2022. The application is listed on the NCLT under cause list.

JMFARC also filed the CIRP against Corporate Guarantors namely Aurelia Estate and Investments Pvt. Ltd (entity having significant influence over the Company), Nitco Realities Pvt. Ltd. (Subsidiary) and Megdoot Properties Pvt. Ltd., Feel Better Housing Pvt. Ltd., Maxwealth Properties Private Limited, Silver-Sky Real Estate Pvt. Ltd. (4 step-down Subsidiaries).

The Company is taking appropriate legal advice and will take all appropriate steps to protect its interest in the aforesaid matter.

The Company has filed a reply with Hon'ble NCLT citing appropriate defence. The matter is listed for hearing on 04th December, 2023.

1. Restructuring of Company's debt (excluding debts of LIC) was approved by JMFARC on January 23, 2018. The Company is negotiating with LIC for restructuring of its facility (principal outstanding Rs. 1,887.26 Lakhs as on 30.09.2023 on terms similar to restructuring done by JMFARC. Pending negotiations with UC, no further adjustments, especially the provision of interest amounting to Rs 2¹ 745.33 Lakhs is not made.

5.The Additional Director General Foreign Trade (ADGFT) levied penalty of Rs. 17,000 Lakhs for irregular / non fulfilment of export obligation and the same has been confirmed by the Appellate Bench of DGFT, New Delhi. The Company has filed a Writ Petition in Bombay High Court as the said Order was bad in law & not in accordance to the cardinal Principles of Equity1 Law and Good Conscience . No provision has been made in the Accounts for the same.

6.Pursuant to a Scheme of Amalgamation sanctioned by the Hon'ble Bombay High Court, a land parcel held in the name of Particle Board India Limited was amalgamated with the Company. as per the HC Order dated 8th July,2011. Revenue Department raised a demand for unearned income of Rs. 6,967.03 Lakhs in this regard. The Company filed a Writ Petition before the Hon'ble Bombay High Court regarding the same. Stay was granted by Hon ¹ ble Court on 26th March ¹ 2018 & the same was confirmed as interim relief by virtue of Order dated 9th September, 2019.

1. Capital advances to Saumya Buildcon amounting to Rs. 995.99 Lakhs is expected to be recovered in FY 2024. Hence, No provision has been made in the accounts for the same.

8.Exceptional items pertains to provision for litigation settlement amounting to Rs. 852 11khs for the six month ended 30th September1 2022 and Rs. 1,585.34 Lakhs for the year ended 31st! March, 2023

On 27th January, 20201 lock out was declared in tiles manufacturing unit situated at Alibaug. The Lockout at the Alibaug plant continues. The Management has reached a settlement with the Alibaug Union representing the 250 workmen of the plant. 240 workers have accepted the settlement agreement. Under the settlement agreement the workers have been offered a VRS scheme and paid Exgratia and an additional compensation of Rs. 1,496.01 Lakhs along with their legal dues and Gratuity. Accordingly the case filed by the Union in the labour court and conciliation meeting in the Labour Commissioner ¹ s office post the settlement agreement stands dismissed. The company has also offered Rs. 89.33 lakhs under settlement agreement to employees on a contractual basis at Alibaug Plant.

1. Management will perform testing of impairment w.r.t. the carrying value of Property, Plant and Equipment at the year end.

2. The Balance with respect to certain bank balances, borrowings from financial institutions, other current asset and liabilities are subject to confirmation and the balances are currently reported in the result as per the books of accounts.

3. New Vardhman Vitrified Pvt. Ltd. (NWPL) was subsidiary of the Company till 10th December, 2020. NVVPL ceased to be subsidiary with effect from this date. However, the share transfer has not been effected pending NOC from some of the lenders. Accordingly, the assets and liabilities of NVVPL has been classified as assets held for Sale in the Statement of Asset and Liabilities.

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

5. The Company had advanced money in the past to Nitco Realties Private Limited ( ¹¹NRPL"), a wholly owned subsidiary of the company in the form of Equity Investment of Rs. 694.59 lakhs and Loans of Rs. 5,885.10 lakhs, who along with its subsidiaries have acquired land from the money. Due to conditions of Real Estate market and financial crunch in company the proposed reai e'state prOject d.id. nOt . m'aleriai°ise. There ·is n~ specific. agree·men·t entel-ed into ·with NRPL. a~d· hence the're al-e no te;ms and conditions with respect to repaynient 'or c·harging tnlerest. Management has done a detailed evaluation on the recoverability of these equity investments/ loans given. The Valuation of Land in NRPL along with its subsidiaries has been conducted by an independent valuer. On the basis of such valuation done, management believes that the loans given are recoverable and accordingly no prov(s1 1s required to be recorded m respect of these balances The management expects this amount to be recovered 1n current year l 14 The previous quarter/ year figures are regrouped/ restated/ reclass1f1ed/ rearranged, wherever necessary, to make them co

1 ""''"'• Place : MUMBAI Date : 09-November-2023 Chairman & Ma

(DIN: 000 Registered Office: NITCO Limited, NITCO House, Sheth Govindram Jolly Marg, Kanjur Marg (E) Mumbai - 400 042. Tel.: 91-22 -25772800 I 25772790, Fax: 91-22-25786484. CIN: L26920MH1966PLC016547. Email : investorgrievances@nitco.inWebsite:www.nitco.in

Barodawala Mansion, B-Wing, 3rd Floor, 81, Dr. Annie Besant Road, Worli, Mumbai - 400 018. Tel.: +91 22 2496 9900 Fax : +91 22 2496 9995 Email : mail@mmnissim.com Website : www.mmnissim.com

Independent Auditors' Limited Review Report on the Unaudited Standalone Financial Results of the Company for the Quarter and Half year ended on 301h September 2023 pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.

Review Report to The Board of Directors of Nitco Limited

• 1. We have reviewed the accompanying Statement of Unaudited Standalone Financial Results of Nitco Limited (the 'Company') for the quarter and half year ended on 30U1 September 2023 ("the Statement") attached herewith, being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the "Listing Regulations").
• 1. This 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 the IND AS 34 'Interim Financial Reporting', prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued there under and other accounting principles generally accepted in India. Our responsibility is to issue a report on these financial results 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. This Standard requires that we plan and perform the review to obtain moderate assurance as to whether the financial results are free of material misstatement. 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 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.

4. Qualified Opinion

Basis of Qualified Opinion

Material Uncertainty Related to Going Concern

We draw your attention to Note 3 of the financial results as regards revocation of the restructuring of existing facilities (excluding the NCO and RPS facility) by JM Financial Asset Resb·ucturing Company Limited (acting in its capacity as b·ustee of JMFARC-LVB Ceramics September 2014 - Trust). - (Financial Creditor), vide letter dated 19 September 2022, whereby dues amounting to Rs. 2,42,762.93 Lakhs has been restated (the amount appearing in books as on 30th June 2023 is Rs. 68,961.93 Lakhs).

On 15th November 2022, the Financial Creditor has made an Application under Section 7 of Insolvency and Bankruptcy Code, 2016 read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 with National Company Law Tribunal (NCLT) to initiate corporate insolvency resolution process. We are informed that the Company is seeking appropriate legal advice and will take all appropriate steps to protect its interest in the aforesaid matter. Accordingly, no adjustments have been made to the carrying values of the liabilities and their presentation and classifications in the results and are accounted on going concern basis.

Based on our review conducted, we have concluded that a material uncertainty exists relating to events or conditions that may cast significant doubt on the entity's ability to continue as a going concern and to that extent, the limited review report is qualified.

5. Emphasis of Matters

We draw attention to certain other matters and its consequential impact, if any, on the results including their presentation / disclosure:

• i. Refer Note 4 to the financial results, Company has not provided for interest on the ou tstanding loan of LIC of Rs. 1,887.26 lakhs (Principal outstanding), as they are hopeful of its restructuring same in line of JMF ARC.
• ii. Refer Note S to the financial results, Additional Director General Foreign Trade (ADGFT) had levied penalty of Rs. 17,000.00 lakhs which is confirmed by the Appellate bench of DGFT, New Delhi. No provision for the demand is made in the books. Management has received legal opinion that the order is bad in law.
• iii. Refer Note 6 to the financial results, Revenue Department has raised a demand of Rs 6967.03 lakhs. No provision for the demand is made in the books as company has received interim relief against the order from Bombay High Court.
• iv. Refer Note 7 to the financial results, Management has not done provision for impairment of Rs. 995.99 lakhs w.r.t. capital advance given to Saumya Buildcon Pvt Ltd.
• v. Refer Note 9 to the financial results, Management has not done provision for impairment w.r.t. carrying value of Property, Plant and Equipment, which shall be done at the year end.

• vi. Refer Note 10 to the financial results, the balance with respect to certain bank balances, borrowings from banks and financial institutions, other current assets and liabilities are subject to confirmations and the balances are currently reported in the results as per the books of accounts.
• 1. Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance wit11 the recognition and measurement principles laid down in the aforesaid Indian Accounting Standards ('Ind AS') specified under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of the Listing Regulation, including the manner in which it is to be disclosed, or that it contains any material misstatement.

For M M NISSIM & CO LLP Chartered Accountants (Firm Regn. No. 107122W /W100672)

~' \r-·O?rc v-7 (N. Kashinath)

Partner Mem. No.: 036490 UDIN:2.3o.3(; ¹⁹ o'B~ S!=°Ni210

Place: Mumbai Date: 9 November 2023

M M NISSIM & CO LLP CHARTERED ACCOUNTANTS

Regd. Office : Barodawala Mansion, B-Wing, 3rd Floor, 81, Dr. Annie Besant Road, Worli, Mumbai - 400 018. Tel. +91 22 2496 9900 Fax LLPIN Website +91 22 2496 9995 AAT - 7548 www.mmnissim.com

Independent Auditors' Limited Review Report on the Unaudited Consolidated Financial Results of the Company for the Quarter and half year ended on 301h September 2023 Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.

Review Report to The Board of Directors of Nitco Limited

• 1. We have reviewed the accompanying Statement of Unaudited Consolidated Financial Results of Nitco Limited (the ' Holding Company') and its subsidiaries ("the Holding Company and its Subsidiary together referred to as the 'Group') for the quarter and half year ended 30th September 2023 ("Statement"), being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('the Regulation') as amended (the "Listing Regulations").
• 1. This statement, which is the responsibility of the 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 the IND AS 34 'Interim Financial Reporting', prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued there under and other accounting principles generally accepted in India. Our responsibility is to issue a report on the financial results 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. This Standard requires that we plan and perform the review to obtain moderate assurance as to whether the financial results are free of material misstatement. 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 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 also performed procedures in accordance with the circular No CIR/CFD/CMDl/44/2019 issued by the Securities and Exchange Board of India under Regulation 33(8) of the Listing regulations, to the extent applicable.

M M NISSIM & CO LLP Continuation Sheet ....... .

• CHARTERED ACCOUNTANTS
• 1. The Statement includes the results of the following:

A) Subsidiaries:

i) Nitco Realities Private Limited

B) Fellow Subsidiaries:

• i) Maxwealth Properties Private Limited
• ii) Meghdoot Properties Private Limited
• iii) Roaring Lion Properties Private Limited
• iv) Feel Better Housing Private Limited
• v) Quick Solutions Properties Private Limited
• vi) Silver Sky Real Estates Private Limited
• vii) Opera Properties Private Limited
• viii) Ferocity Properties Private Limited
• ix) Glamorous Properties Private Limited
• x) Nitco IT Parks Private Limited
• xi) Nitco Aviation Private Limited
• xii) Aileen Properties Private Limited
• xiii) Quick Innovation Lab Private Limited
• 1. Qualified Opinion

Basis of Qualified Opinion

Material Uncertainty Related to Going Concern

The Parent Company continues to incur losses resulting in an erosion of its net worth and its current liabilities exceeds current assets as of 30th September 2023.

We draw your attention to Note 3 to the financial results as regards revocation of the restructuring of existing facilities (excluding the NCD and RPS facility) by JM Financial Asset Restructuring Company Limited (acting in its capacity as trustee of JMFARC-LVB Ceramics September 2014 - Trust). - (Financial Creditor), vide letter dated 19th September 2022, whereby dues amoun~g to Rs. 2,42,762.93 Lakhs has been restated (the amount appearing in books as on 3Qth June 2023 is Rs. 68,961.93 Lakhs).

On 151h November 2022, the Financial Creditor has made an Application under Section 7 of Insolvency and Bankruptcy Code, 2016 read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 with National Company Law Tribunal (NCLT) to initiate corporate insolvency resolution process. We are informed that the Parent Company is seeking appropriate legal advice and will take all appropriate steps to protect its interest in the aforesaid matter. Accordingly, no adjustments have been made to the carrying values of the liabilities and their presentation and classifications in the results and are accounted on going concern basis.

Based on our review conducted, we have concluded that a material uncert inw11~l..c!t to events or conditions that may cast significant doubt on the parent entity's a as a going concern and to that extent, the limited review report is qualified.

6. Emphasis of Matters

We draw attention to certain other matters and its consequential impact, if any, on the results including their presentation/ disclosure:

• i. Refer Note 4 to the financial results, Parent Company has not provided for interest on the outstanding loan of UC of Rs. 1,887.26 lakhs (Principal outstanding), as they are hopeful of its restructuring same in line of JMF ARC.
• ii. Refer Note 5 to the financial results, Additional Director General Foreign Trade (ADGFT) had levied penalty of Rs. 17,000.00 lakhs which is confirmed by the Appellate bench of DGFT, New Delhi. No provision for the demand is made in the books. Management of parent company has received legal opinion that the order is bad in law.
• iii. Refer Note 6 to the financial results, Revenue Department has raised a demand of Rs 6967.03 lakhs. No provision for the demand is made in the books as parent company has received interim relief against the order from Bombay High Court.
• iv. Refer Note 7 to the financial results, Management of parent company has not done provision for impairment of Rs. 995.99 lakhs w.r.t. capital advance given to Saumya Buildcon Pvt. Ltd.
• v. Refer Note 9 to the financial results, Management has not done provision for impairment w.r.t. carrying value of Property, Plant and Equipment, which shall be done at the year end.
• vi. Refer Note 10 to the financial results, the balance with respect to certain bank balances, borrowings from banks and financial institutions, other current assets and lia bflities a re subject to confirmations and the balances are currently reported in the results as per the books of accounts.
• vii. Refer Note 11, New Vardhman Vitrified Pvt. Ltd. (NWPL) was subsidiary of the Parent Company till 101h December, 2020. NWPL ceased to be subsidiary with effect from this date. 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 the Statement of Asset and Liabilities and profits/ losses which have been reported as operations discontinued in the Statement.

7. Other Matter

a) The Statement includes the unaudited interim financial results and other financial information in respect of one subsidiary and thirteen fellow subsidiaries, whose interim financial results/ information reflects total revenue of Rs. 2.35 lakhs and Rs. ~5.33 Lakhs, total net loss after tax of Rs. 0.06 Lakhs and Rs. 0.48 Lakhs and total comprehensive income of Rs. 0.06 Lakhs and Rs. 0.48 Lakhs for the quarter and half year ended 30th September, 2023, respectively.

The unaudited interim financial results/ statements and other unau~· ::::1:~1n information of its subsidiary and thirteen fellow subsidiaries have not bem._{<:J;~~ auditor and has been approved and furnished to us by the Managemen on the Statement, in so far as it relates to the affairs of one subsidiary subsidiaries is based solely on such unaudited interim financial stateme and other financial information. According to the information and expl

by the management, these interim financial statements/ financial results are not material to the Group.

Our opinion is not modified in respect of this matter.

1. Based on our review conducted as above, 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 the aforesaid Indian Accounting Standards ('Ind AS') specified under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of the Listing Regulation, including the manner in which it is to be disclosed, or that it contains any material misstatement.

For M M Nissim & CO LLP Chartered Accountants Firm Registration No. 107122W /W100672

Place: Mumbai Date: 9 November 2023