ORIENT CERATECH LIMITED — Annual Report 2021

May 11, 2021

Ref No.: Orient/Stock Exch/Letter/257

The Dy. General Manager, Corporate Relations & Services Dept., Bombay Stock Exchange Limited Phirojsha Jeejibhoy Towers, Dalal Street, Mumbai - 400 023.

11^th May, 2021

The Dy. Gen. Manager, National Stock Exchange of India Ltd., Corporate Relations Dept., Exchange Plaza, 5th Floor, Plot No. C/1. G Block, Bandra-Kurla Complex, Mumbai - 400 051.

Scrip Code: 504879

Scrip Code: ORIENTABRA

Sub: Outcome of Board Meeting held on 11/05/2021.

Dear Sir/Madam,

We are pleased to inform you that the Board of Directors of the Company at their meeting held today i.e. 11^th May, 2021, have inter-alia transacted the following business:

• 1. Considered and adopted the Audited Financial Results/Audited Financial Statements of the Company for the quarter and year ended on 31^st March, 2021.
• 1. Recommended a dividend @15% i.e. Re. 0.15 per Equity Shares face value of Re. 1/- each of the Company for the year ended 31^st March, 2021, subject to the approval of the shareholders at the ensuing Annual General Meeting of the Company.
• 1. On the recommendation of Nomination & Remuneration Committee, the Board has approved the reappointment of Mr. Manubhai Rathod (DIN:-07618837) as a Whole Time Director & Chief Executive Officer of the Company for a further period of 3 years w.e.f. June 15, 2021, subject to approval of the shareholders at the ensuing Annual General Meeting of the Company.
• 1. On the recommendation of Nomination & Remuneration Committee, the Board has approved a payment of Commission of 5% on the net profits of the Company, for the financial year 2021-22, to one of the Key Managerial Personnel (KMP) Viz. Mr. Manan Shah-President of the Company.

Pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we enclose herewith the following:

• Audited Financial Results of the Company for the quarter and year ended on 31^st March, 2021. $\bullet$
• Auditors Report on Audited Financial Results for the quarter and year ended 31^st March, 2021. $\bullet$

We would like to inform that M/s. Sanghavi & Co., Statutory Auditors have issued audit report with unmodified opinion on Audited Financial Results for the Quarter & Year ended 31^st March, 2021.

The meeting of the Board of Directors of the Company concluded at 6.25 P.M. Kindly take the same on your record.

Thanking you, Yours faithfully, For Orient Abrasives Limited

ng. ee

Seema Sharma Company Secretary & Compliance Officer Encl: As above

Orient Abrasives Limited (Associate of Ashapura Group) Registered Office : G.I.D.C. Industrial Area, Porbandar - 360 577, Gujarat, India Tel.: +91-286 2221788 / 9, Fax: +91-286 2222719

Administrative Office : Jeevan Udyog Building, 2nd Floor, 278, D. N. Road, Fort, Mumbai - 400 001, India Tel.: +91-22 6665 1700, Fax: +01 22 2207 9395

Website: www.orientabrasives.com Email: orientabrasives@oalmail.co.in Investor@oalmail.co.in CIN: L24299GJ1971PLC093248

		ORIENT ABRASIVES LIMITED
	Regd. Office: G.I.D.C. Industrial Area, Porbandar - 360577, Gujarat (India)
		Phone No. 0286-2221788-9
	CIN No. L24299GJ1971PLC093248 Website: www.orientabrasives.com
						[Rs. in Lacs]
Part 1	Statement of Audited Financial Results for the Quarter and Year ended March 31, 2021
		Quarter Ended			Year Ended
SI.No.	Particulars	March 31, 2021	December 31, 2020	March 31, 2020	March 31, 2021	March 31, 2020
		Audited		Audited		Audited
		(Refer Note 3)	Unaudited	(Refer Note 3)	Audited
	1 Income from Operations
	(a) Revenue from operations	8,436.75	8,871.31	8,991.89	30,216.78	34.584.77
	(b) Other income	109.73	42.41	80.81	197.74	200.07
	Total Income from Operations	8,546.48	8,913.72	9,072.70	30,414.52	34,784.84
	2 Expenses
	(a) Cost of materials consumed	1.939.77	2.413.48	2.162.39	7.455.20	8,492.67
	(b) Purchase of traded goods	2,065.24	1,371.81	1.079.43	4,813.20	6,475.71
	(c) Change in inventories of finished goods, work in progress and	(185.66)	802.58	762.19	1,188.90	38.88
	stock in trade
	(d) Employee benefit expenses	750.44	744.23	843.63	2.997.82	3,256.49
	(e) Depreciation and amortisation expense	271.13	282.35	267.20	1,110.32	1,027.86
	(f) Power and fuel	1,176.31	1.177.63	1.472.38	4,532.78	5,585.35
	(g) Other expenses	1,890.20	1,512.76	1,815.98	6,171.81	6,522.11
	(h) Foreign exchange (gain)/loss (net)	(12.71)	(20.70)	(142.85)	(33.73)	(237.82)
	(i) Finance costs	126.05	132.57	176.95	581.75	863.50
	Total Expenses	8,020.78	8,416.71	8,437.30	28,818.05	32,024.76
	3 Profit before exceptional items and tax	525.70	497.01	635.40	1,596.47	2,760.08
4	Exceptional items (Refer note 5)			(139.73)		(139.73)
5	Profit before tax (3-4)	525.70	497.01	495.67	1,596.47	2.620.35
6	Tax expenses
	Current tax charge	145.31	69.00	69.00	318.31	623.00
	Deferred tax charge / (credit), Net of adjustment for earlier periods	121.98	(2.64)	(8.74)	141.17	(58.56)
	Total Tax Expenses	267.29	66.36	60.26	459.48	564.44
$\overline{\phantom{a}}$	Net Profit for the period (5-6)	258.41	430.65	435.41	1,136.99	2,055.91
8	Other Comprehensive Income (net of tax)
	Items that will not be reclassified to profit or loss	27.24	(5.85)	(72.23)	9.69	(63.92)
9	Total Comprehensive Income for the period (7+8)	285.65	424.80	363.18	1,146.68	1.991.99
10	Paid-up Equity Share Capital (Face Value Re. 1/- per share) (including	1.196.52	1.196.52	1,196.52	1,196.52	1,196.52
	forfeited amount of Rs. 0.13 lacs)
11	Other equity				23,022.63	22.055.41
	Earning Per Share (EPS) (of Re. 1/- each) (Rs.)					1.72
	Basic EPS (Rs.)	0.22	0.36	0.36	0.95	1.72
	Diluted EPS (Rs.)	0.22	0.36	0.36	0.95
	(See accompanying notes to the Financial Results)
	* Figures being nullified on conversion to Rs. In lacs

Notes:

The above results have been reviewed by the Audit Committee and approved by the Board of Directors of Orient Abrasives Limited ("the Company") at their respective $\mathbf{1}$ meetings held on May 11, 2021, in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended. The Statutory Auditor have issued an unqualified Audit opinion on these results.

The Board of Directors has recommended a dividend of Rs. 0.15 per equity share of Rs. 1 each (i.e 15%) for the year ended March 31, 2021, subject to the approval of $\overline{a}$ shareholders in ensuing Annual General Meeting.

These financial results of the Company have been prepared in accordance with the Companies (Indian Accounting Standard) Rules, 2015 (Ind AS) (as amended) prescribed 3 under section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.

The figures for the last quarters are the balancing figures between the audited figures in respect of the full financial year ended March 31, 2021 and March 31, 2020 and the $\overline{A}$ published unaudited year to date figures upto December 31, 2020 and December 31, 2019, respectively, being the end of the third quarter of the respective financial years which were subjected to review by the statutory auditors.

Impact assessment - COVID-19 5

The Company has assessed the possible impact of COVID-19 on its financial statements based on the internal and external information available up to the date of approval of these financial results and concluded that no adjustment is required in these results (including carrying value of assets and liabilities). The Company continues to monitor the future economic conditions which may have impact on Company's financial performance.

The complaints from investors / shareholders for the quarter ended on March 31, 2021: Received - 1; Disposed - 1; Closing Balance - Nil. 6

For Orient Abrasives Ltd.

Place: Porbandar Date: May 11, 2021

Manubhai Rathod Whole Time Director & CEO (DIN 07618837)

		Segment Wise Revenue, Results, Segment Assets and Liabilities are given below:
			(Rs. in Lacs)
				March 31,
				2020
Audited (Refer Note 3)	Unaudited	Audited (Refer Note 3)	Audited	Audited
				33,901.62
				5,600.04
				39,501.66
				4,916.89
				34,584.77
756.05	349.08	319.71	1,424.32	2,U2.63
124.O4	440.74	377 .71	1,479.06	1,607.30
880.13	789.82	697.42	2,903.38	4,149.93
125.26	115.21	159.43	528.81	795.23
229.17	177.60	-97.41	778.10	594.62
525.70	497.0'l	635.40	1,596.47	2,760.08
		139.73		't39.73
525.70	497.O1	495.67	1,596.47	2,620.35
				27,148.78
				5,999.07
				1,633.77
				34,781.62
				4,354.09
				544.67
				6,630.93
				11,529.69
	March 31, 2021 8,328.60 1,145.65 9,474 ?,5 1,037.50 8,436.75 27,210.38 5,487.70 1,28s.17 33,983.25 4,7 44.74 545 63 4,473.73 9,764.10	Quarter Ended December 31, 2020 8,789.41 1,471.69 10,261.10 1,389.79 8,871.31 25,611.17 6,190.21 2,345.55 34,146.93 4,212.90 1,185.14 4,815.39 10,213.43	March 31, 2020 8,886.61 't,275.24 10,161.85 1,169.96 8,99r.89 27,148.78 1,633.77 34,781.62 4,354.09 544.67 6,630.93 11,529.69	Year Ended March 3'l, 2021 29,598.38 5,410.40 35,008.78 4,792.O0 30,216.78 27,210.38 5,487.70 1,285.17 33,983.2s 4,744.7 4 545.63 4,473.73 9,764.10

ORIENT ABRASIVES LIMITED

Place: Porbandar

Manubhai Fhthod

Date: Mav 11. 2021 Whole Time Director & CEO (DlN 0761

ORIENT ABRASIVES LIMITED
STATEMENT OF ASSETS & LIABILITIES
		(Rs. in Lacs)
Particulars	As at March 31, 2021	As at March 31, 2020
	Audited	Audited
ASSETS
l. Non-current assets (a) Properly, plant and equipment		'12,733.11
(b) Capital work-in-progress	12,O76.73 36.18	77.09
(c) Right-of-use assets	8'r.04	83.87
(d) lntangible assets	52.12	80.19
(e) Financialassets
(i) Other financial assets	131.24	214.32
(0 Other non-current assets	36.06	65.06
(g)Tax assets (net)	386.48	394.30
Total non-current assets	12,799.84	13,647.94
ll.Current assets
(a) lnventories	7,680.80	8,318.64
(b) Financialassels
(i) Trade receivables	'1o,387.22	9,309.68
(ii) Cash and cash equivalents (iii) Bank balance other than (iii) above	341.21	100.38
(iv) Others financial assets	441.62 't14.69	923.81
(c) Other current assets	2.217 A7	195.58 2.285.59
Total current assets	21,183.41	2l,'133.68
TotalAssets	33.983.25	34,78'1.62
Y AND LIABILITIES
Equity
Equity share capital	1,196.52	1,196.52
Other equity Totalequity	23.022.63	22.O55.41
	24,219.15	23,25'1.93
LIABILITIES
l. Non-current liabilities
(a) Financial liabilities
(i) Borrowings		732.95
(ii) Other financial liabilities	126.19	49.52
(b) Provisions	211 .43	'19'1.05
(c) Deferred tax liabilities (net)	1.024.A7	9'r9.43
Total non.current liabilities	1,525.76	1,892.95
ll.Current liabilities
(a) Financial liabilities
(i) Borrowings	2,515.92	4,275.48
(ii)Trade payables
- Total outstanding dues of micro and small enterpflses	14.41	22.23
- Total outstanding dues of creditors other than micro and small enterprises	3,673.96	3,335.83
(iii) Other tinancial liabilities	516.4'1	594.16
(b) Other current liabilities	1,150.47	1,'146.60
(c) Provisions	102.09	'103.42
(d) Current tax liabilities	26't.08	't 5s 02
Total current liabilities	4,238.34	9,636.74
Total eouitv and liabilities	33,983.25	34,7A1.62

For OrientAbrasives Ltd.

Manubh?i Whole Time Director & o (DrN 07618837)

Place: Porbandar Date: May ll, ²⁰²¹ Orient Abrasives Limited

	Statement of cash flowa for the year ended March 31, 2021		([ in Lacs)
	Profit before tax as perstatement of profit and loss	1,596.47	2,620.35
	Adjustments for
	Depreciation and Amortisation Expenses of Property, Plant & Equipment, lntangible assets and right-of-use assets	1,'t10.32	1,027.86
	Loss on sale/discard of property, plant and equipment
	Unrealised foreign exchange (gain)/loss (net)	6.10	8.85
	Amortisation of government grants	(31.37)	(114.19)
	lnterest expenses	(29.60)	(31.8s)
	lnterest income	464.'10 (47.71)	776.34
	Liabilities/provisions no longer required, written back	(88.71)	(52 01)
	Bad debts and other receivables written off
	Allowances for Doubtful receivables, deposits and advances (net)	236.47	24.03
	Operating Profit before Working Capital Changes	46.98	373.56
	Worki ng Capital Ch ange s:
	lncrease / (Decrease) in trade payables, provisions and other liabilities
	(lncrease) in trade receivables	400.15 (1,175.43)	(862.e8) (1,352.24)
	Decrease in inventories
	Decrease / (lncrease) in other assets	637.84	2,U9.25
	Cash Generated from Operations
	Pirgc] TqxgsJaid]Net of lncoTe T.ax felynd)	(248.j s)	4,797.61 (716.49)
	Net Cash inflow from Operating Activities	@
	Cash Flow from lnvesting Activities
	Purchase of property, plant and equipment (including CWIP and capital advances)	(408.01)	(887.95)
	Proceeds from sale of property, plant and equipment	55.06	25.35
	Margin Money / Fixed Deposits made with bank	(4,196.01)	(1,339.46)
	Proceeds from redemption of Margin Money / Fixed Deposits with bank	4,753.35	1,038.41
	lnterest received	58.16	46.88
	Net cash flow from	262.55
	Cash Flow from Financing Activities
	Repayment of long ierm borrowings	(569.68)	(403.10)
	Changes in working capital loans (net)	(1,759.56)	(1,378.21)
	Repayment of bill discounting		(8.s1)
	Repayment of loan from body corporate		(425.00)
	paid (including dividend distribution tax) Dividend		(360.s8)
lnterest
	Net Cash
	Net foreign exchange difference
	Cash & Cash
	of Cash and Cash
	Cash on Hand	6.97	5.42
	Balances with Banks	3U.24	94.96

Notes:

¹. The Cash flow statement has been prepared under the indirect method as set out in lnd AS 7 on Cash flow statement notiried under section 133 of the Companies Act 2013, read logether with paragraph 7 of the Companies (lndian Accounting Standard) Rules, 201S (as amended).

1. lnd AS 7 requires to provide disclosure of changes in liabilities arising from financing activities, includes both changes arising from cash flows and non-cash changes. During the current year as well as previous year, there has been no other changes in liabilities;rising from financing activities apart from changes arising from cash flow statement as mentioned.

2. Cash flow from operating activities includes payment for short-term lease and lease of low value assets not included in the measurement of lease liability amounts to [ 42.53 lacs.

Whole Time Director & (DrN 07618837) For Ltd.

Placei Porbandar Datei May 11 , 2021

Independent Auditor's Report on the quarterly and year to date audited financial results of the company pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

To The Board of Directors ORIENT ABRASIVES LIMITED

Report on the audit of the Financial Results

Opinion

We have audited the accompanying statement of quarterly and year to date financial results of Orient Abrasives Limited (the "Company") for the quarter ended March 31, 2021 and for the year ended March 31, 2021 ("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, as amended (the "Listing Regulations").

In our opinion and to the best of our information and according to the explanations given to us, the Statement:

• i. is presented in accordance with the requirements of the Listing Regulations in this regard; and
• ii. gives a true and fair view in conformity with the applicable accounting standards and other accounting principles generally accepted in India, of the net profit and other comprehensive loss and other financial information of the Company for the quarter ended March 31, 2021 and for the year ended March 31, 2021.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013, as amended ("the Act"). Our responsibilities under those Standards are further described in the "Auditor's Responsibilities for the Audit of the Financial Results" section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India ("the ICAI") together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI's Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our opinion.

Management's Responsibilities for the Financial Results

The Statement has been prepared on the basis of the annual financial statements. The Board of Directors of the Company are responsible for the preparation and presentation of the Statement that gives a true and fair view of the net profit and other comprehensive loss of the Company and other financial information in accordance with the applicable accounting standards prescribed under Section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. This responsibility also includes maintenance of adequate 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 other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the Statement, the Board of Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Results

Our objectives are to obtain reasonable assurance about whether the Statement as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance 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, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Statement.

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

• Identify and assess the risks of material misstatement of the Statement, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.
• Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial results or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the Statement, including the disclosures, and whether the Statement represents the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Other Matter

The Statement includes the results for the quarter ended March 31, 2021 being the balancing figure between the audited figures in respect of the full financial year ended March 31, 2021 and the published unaudited year-to-date figures up to the third quarter of the current financial year, which were subjected to a limited review by us, as required under the Listing Regulations.

For SANGHAVI & COMPANY Chartered Accountants FRN: 109099W

Ganatra Manoj Chimanbhai Digitally signed by Ganatra Manoj Chimanbhai DN: c=IN, o=Personal, 2.5.4.20=9484a1f8369274a878c3c7d35a086a303efe067a4e21abd 4b96f22e6fbeefad8, postalCode=364002, st=Gujarat, serialNumber=f1261b65c6497f3fbe3044d4f71669e741f6e8837cf9 Date: 2021.05.11 15:18:17 +05'30'

Bhavnagar MANOJ GANATRA Membership No. 043485 UDIN: 21043485AAAAJQ6911

11th May, 2021 Partner