Onward Technologies Ltd. - Interim / Quarterly Report 2020

Date: July 16, 2020

==> picture [164 x 48] intentionally omitted <==

To,

BSE Ltd. Corporate Relations Department P J Towers, Dalal Street Mumbai 400 001	National Stock Exchange of India Ltd. ‘Exchange Plaza’, C-1, Block G Bandra Kurla Complex Bandra (E), Mumbai 400 051

Ref: Scrip Code - BSE: 517536 NSE: ONWARDTEC

Subject: Unaudited Financial Results (Standalone & Consolidated) for the first quarter ended 30[th]

June,

Dear Sir,

Pursuant to Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’), the Board of Directors of the Company have approved and taken on record, inter alia, unaudited financial results (Standalone and Consolidated) of the Company for the quarter ended 30th June, 2020.

The Board Meeting commenced at 11:15 A.M. and the above matters were concluded at 01:30 PM.

A copy of the Results along with Limited Review Report of the auditors of the Company, as required under Regulation 33 of the Listing Regulations, is enclosed herewith.

Kindly acknowledge the receipt of the same.

For Onward Technologies Limited

Sd/-

Dimple Chauhan Company Secretary

Encl: As above

2nd floor, Sterling Centre, Dr. A.B. Road, Worli, Mumbai 400018. Tel: +91 22 24926570 CIN: L28920MH1991PLC062542 | www.onwardgroup.com

==> picture [423 x 23] intentionally omitted <==

To, The Board of Directors Onward Technologies Limited 2nd Floor, Sterling Centre, Dr. Annie Besant Road, Opposite Atria Mall, Worli, Mumbai — 400018

We have reviewed the unaudited consolidated financial results of Onward Technologies Limited (the “Parent”), its subsidiaries (the parent and its subsidiaries hereinafter referred to as the “Group”), for the quarter ended June 30, 2020 which are included in the accompanying ‘Statement of Consolidated Unaudited Financial Results for Quarter ended June 30, 2020’ (the “Statement”). The Statement is being submitted by the Parent pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (“the Listing Regulations”).
This Statement, which is the responsibility of the Parent’s Management and approved by the Parent’s Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 “Interim Financial Reporting” (“Ind AS 34”), prescribed under Section 133 of the Companies Act, 2013, and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” , issued by the Institute of Chartered Accountants of India. This Standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement.Areviewofinterimfinancialinformationconsistsofmakinginquiries,primarilyofpersons 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 issued by the SEBI under Regulation 33 (8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, to the extent applicable.
The Statement includes the results of the following entities:

Sr. No.	Name of Entity	Relationship
1	OnwardTechnologiesLimited	Parent
2	OnwardTechnologiesInc.	Subsidiary
3	OnwardTechnologies GmBH	Subsidiary
4	Onward eServicesLimited	Subsidiary
5	Onward Properties Private Limited	Subsidiary

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 auditor referred to in paragraph 7 below, nothing has come to our attention that causes us to believe that the accompanying Statement has not been prepared in all material respects in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India and has not disclosed the information required to be disclosed in terms of Regulation 33 of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement.

Price Waterhouse Chartered Accountants LLP, 7th Floor, Tower A – Wing 1, Business Bay, Airport Road Yerwada, Pune – 411 006 T: +91 (020) 41004444, F: +91 (020) 41006161

Registered office and Head Office: Sucheta Bhawan, 11A Vishnu Digambar Marg, New Delhi – 110002 Price Waterhouse (a Partnership Firm) Converted into Price Waterhouse Chartered Accountants LLP (a Limited Liability Partnership with LLP identity no: LLPIN AAC-5001) with effect from July 25, 2014. Post its conversion to Price Waterhouse Chartered Accountants LLP, its ICAI registration number is 012754N/N500016 (ICAI registration number before conversion was 012754N)

==> picture [423 x 23] intentionally omitted <==

Onward Technologies Limited Limited Review for the Quarter ended June 30, 2020 Page 2 of 2

We draw your attention to Note 8 to the Statement, which describes the management’s assessment of the impact of the outbreak of Coronavirus (COVID-19) on the business operations of the Group. In view of the uncertain economic environment, a definitive assessment of the impact on the subsequent periods is highly dependent upon circumstances as they evolve. Our opinion is not modified in respect of this matter.
We did not review the interim financial results of one subsidiary included in the consolidated unaudited financial results, whose interim financial results reflect total revenues of Rs. 1,317.25 lakhs and, total net loss after tax of Rs. 46.99 lakhs and total comprehensive loss of Rs. 46.99 lakhs for the quarter ended June 30, 2020, as considered in the consolidated unaudited financial results. These interim financial results have been reviewed by other auditors in accordance with SRE 2410, Review of Interim Financial Information Performed by the Independent Auditor and their report dated July 14, 2020, vide which they have issued an unmodified conclusion, 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 this subsidiary, is based solely on the report of the other auditors and the procedures performed by us as stated in paragraph 3 above. Our conclusion on the Statement is not modified in respect of the above matter.
The consolidated unaudited financial results includes the interim financial results of two subsidiaries which have not been reviewed by their auditors, whose interim financial results reflects total revenue of Rs. 209.30 lakh and total net loss after tax of Rs. 15.08 lakhs and total comprehensive loss of Rs. 17.44 lakhs for the quarter ended June 30, 2020, as considered in the consolidated unaudited financial results. According to the information and explanations given to us by the Management, these interim financial results are not material to the Group. Our conclusion on the Statement is not modified in respect of the above matter.

For Price Waterhouse Chartered Accountants LLP Firm Registration Number: 012754N/N500016

NEERAJ Digitally signed by NEERAJ BALKRISHAN BALKRISHAN SHARMA Date: 2020.07.16 SHARMA 14:09:12 +05'30'

Neeraj Sharma Partner Membership Number: 108391 UDIN: 20108391AAAAEP1314 Pune July 16, 2020

==> picture [555 x 662] intentionally omitted <==

Notes:

1 The statement has been reviewed by Members of the Audit Committee and approved by the Board of Directors at its meeting held on July 16, 2020.
2 The consolidated financial results include the results of Onward Technologies Limited's subsidiaries in India, USA and Germany (together referred as "Group").
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 The Group has only one operating segment which is Engineering Design and IT services. Accordingly, separate segment information is not required to be disclosed.
5 During the quarter ended as on June 30, 2020, the Company has issued 74,600 equity shares following the exercise of stock options by certain employees under the ESOP scheme, 2009.
6 The figures for the quarter ended March 31, 2020 are the derived figures between the audited figures for the year ended March 31, 2020 and published reviewed figures of December 31, 2019.
7 Revenue from Operations for the quarter ended March 31, 2020 includes export incentives amounting to Rs. 203.82 lakhs under Service Exports from India Scheme, 2015 (SEIS Scheme) for services exported upto March 31, 2020. Such incentives were accounted at the time of application till December 31, 2019.

Further pending certain clarifications regarding applicability and extent of such benefits for the current year, management has not recognised any such benefits for services exported during the quarter ended June 30, 2020.

8 Outbreak of COVID - 19 has significantly affected the social and economic activities worldwide and is continuously evolving, as a result, has affected the operations and results of the Company.
The Group has taken into consideration the impact of the known internal and external events arising from COVID-19 pandemic while preparing the financial information. As a part of such assessment, the Group has considered the recoverability of outstanding trade receivables, contract assets, impact of lease modifications, accounting for benefits received from governments and future cash flow position upto the date of approval of these financial results. The Group is confident of recovery of outstanding assets as on June 30, 2020.
However, the impact assessment of COVID-19 is an ongoing process, given the uncertainties associated with its nature and duration. The impact of global health pandemic might be different from that estimated as at the date of approval of these financial results and the Group will continue to closely monitor any significant impact on the group's financial position.
9 Previous year/period figures have been regrouped/rearranged wherever considered necessary.

For and on Behalf of the Board of Directors Onward Technologies Limited JIGAR Digitally signed by JIGAR HARISH HARISH MEHTA MEHTA Date: 2020.07.16 13:49:38 +05'30' Place : Mumbai Jigar Mehta Date : July 16, 2020 Managing Director

==> picture [424 x 22] intentionally omitted <==

To, The Board of Directors Onward Technologies Limited 2[nd] Floor, Sterling Centre, Dr. Annie Besant Road, Opposite Atria Mall, Worli, Mumbai – 400018

We have reviewed the unaudited financial results of Onward Technologies Limited (the “Company”) for the quarter ended June 30, 2020, which are included in the accompanying ‘Statement of Standalone Unaudited Financial Results for Quarter ended June 30, 2020’ (the “Statement”). The Statement has been prepared by the Company pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the “Listing Regulations, 2015”).
This Statement, which is the responsibility of the Company’s Management and approved by the Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 “Interim Financial Reporting” (“Ind AS 34”), prescribed under Section 133 of the Companies Act, 2013, and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”, issued by the Institute of Chartered Accountants of India. This Standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is 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.
Based on our review conducted as above, nothing has come to our attention that causes us to believe that the Statement has not been prepared in all material respects in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India, and has not disclosed the information required to be disclosed in terms of Regulation 33 of the Listing Regulations, 2015 including the manner in which it is to be disclosed, or that it contains any material misstatement.
We draw your attention to Note 8 to the Statement, which describes the management’s assessment of the impact of the outbreak of Coronavirus (COVID-19) on the business operations of the Company. In view of the uncertain economic environment, a definitive assessment of the impact on the subsequent periods is highly dependent upon circumstances as they evolve. Our opinion is not modified in respect of this matter.

For Price Waterhouse Chartered Accountants LLP Firm Registration Number: 012754N/N500016

NEERAJ Digitally signed by NEERAJ BALKRISHAN BALKRISHAN SHARMA Date: 2020.07.16 14:08:22 SHARMA +05'30' Neeraj Sharma Partner Membership Number: 108391 UDIN: 20108391AAAAEO9118 Pune July 16, 2020

Price Waterhouse Chartered Accountants LLP, 7th Floor, Tower A – Wing 1, Business Bay, Airport Road Yerwada, Pune – 411 006 T: +91 (020) 41004444, F: +91 (020) 41006161

==> picture [495 x 702] intentionally omitted <==

----- Start of picture text -----

Onward Technologies Limited
Corporate Identity Number: L28920MH1991PLC062542
Registered Office: Sterling Centre, 2nd Floor, Dr. A. B. Road, Worli, Mumbai - 400 018, India.
Tel: +91 22 2492 6570
E-mail: [email protected] Website: www.onwardgroup.com
STATEMENT OF STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2020
(Rs. In lakhs)
Sr. Particulars Quarter ended Year ended
No. June 30, 2020 March 31, 2020 June 30, 2019 March 31, 2020
(Unaudited) (Unaudited (Unaudited) (Audited)
Refer Note 5)
1 Revenue from operations (Refer note 6) 2,506.52 3,061.34 2,966.93 12,205.35
2 Other income 39.43 78.88 371.50 673.59
3 Total Income (1+2) 2,545.95 3,140.22 3,338.43 12,878.94
4 Expenses
a) Purchase of software licences - - 13.02 18.30
b) Employee benefits expense 1,726.31 2,268.33 1,980.39 8,412.75
c) Finance costs 55.95 68.65 84.51 317.65
d) Depreciation and amortisation expense 234.79 220.76 232.05 908.69
e) Other expenses 378.98 585.56 571.93 2,111.34
Total Expenses 2,396.03 3,143.30 2,881.90 11,768.73
5 Profit before tax (3-4) 149.92 (3.08) 456.53 1,110.21
6 Tax expense
a) Current tax 57.14 30.04 167.20 365.42
b) Deferred tax (20.25) (15.19) (81.44) (74.21)
Total tax expense 36.89 14.85 85.76 291.21
7 Net profit/ (Loss) for the period (5 - 6) 113.03 (17.93) 370.77 819.00
8 Other comprehensive income, net of income tax
i) items that will not be reclassified to profit or loss 0.43 18.73 (2.40) 1.72
ii) income tax relating to items that will not be reclassified (0.11) (4.71) 0.70 (0.43)
to profit or loss
Total other comprehensive income, net of income tax 0.32 14.02 (1.70) 1.29
9 Total comprehensive income for the period (7+8) 113.35 (3.91) 369.07 820.29
10 Paid-up equity share capital : (Face value Rs. 10 each) 1,611.72 1,604.26 1,590.28 1,604.26
11 Earnings per share (of Rs. 10 each) (not annualised)
Basic: (in Rs.) 0.70 (0.11) 2.33 5.12
Diluted: (in Rs.) 0.68 (0.11) 2.24 4.93
Notes:
1 The statement has been reviewed by Members of the Audit Committee and approved by the Board of Directors at its meeting held on July 16,
2020.
2 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.
3 The Company has only one operating segment which is Engineering Design and IT services. Accordingly, separate segment information is not
required to be disclosed.
4 During the quarter ended as on June 30, 2020, the Company has issued 74,600 equity shares following the exercise of stock options by certain
employees under the ESOP scheme, 2009.
5 The figures for the quarter ended March 31, 2020 are the derived figures between the audited figures for the year ended March 31, 2020 and
published reviewed figures of December 31, 2019.
6 Revenue from Operations for the quarter ended March 31, 2020 includes export incentives amounting to Rs. 203.82 lakhs under Service Exports
from India Scheme, 2015 (SEIS Scheme) for services exported upto March 31, 2020. Such incentives were accounted at the time of application till
December 31, 2019.
Further pending certain clarifications regarding applicability and extent of such benefits for the current year, management has not recognised
any such benefits for services exported during the quarter ended June 30, 2020.
7 The Company has applied for strike off u/s 248 of the Companies Act, 2013 for it's wholly owned subsidiary, Onward Properties Private Limited
and is awaiting approval from Registrar of Companies, Mumbai.
----- End of picture text -----

8 Outbreak of COVID - 19 has significantly affected the social and economic activities worldwide and is continuously evolving, as a result, has affected the operations and results of the Company.
The Company has taken into consideration the impact of the known internal and external events arising from COVID-19 pandemic while preparing the financial information. As a part of such assessment, the Company has considered the recoverability of outstanding trade receivables, contract assets, impact of lease modifications, accounting for benefits received from governments and future cash flow position upto the date of approval of these financial results. The Company is confident of recovery of outstanding assets as on June 30, 2020. However, the impact assessment of COVID-19 is an ongoing process, given the uncertainties associated with its nature and duration. The impact of global health pandemic might be different from that estimated as at the date of approval of these financial results and the Company will continue to closely monitor any significant impact on the company's financial position.
9 One of the subsidiaries of the Company, namely Onward Technologies GmBh, has incurred recurring losses and has negative net worth. Basis the management's assessment for impairment under IND AS 36, the Company had recognised an impairment loss of Rs 54 lakhs in quarter ended March 31, 2020 under Other expenses.
10 The Board of Directors in its meeting held on May 15, 2020, has approved a scheme of merger of Onward E Services Limited (a wholly owned subsidiary) with the Company. The scheme of merger has been filed with the National Company Law tribunal (NCLT) on June 30, 2020 and the impact of this merger will be given once this Scheme is approved by the NCLT.
11 Previous year/period figures have been regrouped / rearranged wherever considered necessary.

For and on Behalf of the Board of Directors Onward Technologies Limited JIGAR HARISH Digitally signed by JIGAR HARISH MEHTA MEHTA Date: 2020.07.16 13:50:59 +05'30' Place: Mumbai Jigar Mehta Date: July 16, 2020 Managing Director

AI assistant

Onward Technologies Ltd. Interim / Quarterly Report 2020

60726_rns_2020-07-16_9af7257f-983b-4e56-8ba7-888ebe90b294.pdf

To,

For Onward Technologies Limited

Notes:

AI assistant

Onward Technologies Ltd. — Interim / Quarterly Report 2020

60726_rns_2020-07-16_9af7257f-983b-4e56-8ba7-888ebe90b294.pdf

To,

For Onward Technologies Limited

Notes:

More from Onward Technologies Ltd.

Onward Technologies Ltd. Interim / Quarterly Report 2020