Permanent Magnets Ltd. — Interim / Quarterly Report 2021

Jun 8, 2021

PERMANENT MAGNETS LIMITED

B-3, MIDC, Village Mira, Mira Road East, Thane - 401104, Maharashtra, India

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Phone : +91-22-68285454 Facsimile : +91-22-29452128 Email : sales@pmlindia.com Website : www.pmlindia.com

Date : 8[th] June, 2021

To, Corporate Relation Department The Bombay Stock Exchange Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001

Security Code : 504132 Security ID : PERMAGN

Sub: Discrepancy: Auditors Report not submitted for Standalone Financial Result

Ref : BSE email dated June 08, 2021

Dear Sir/Madam,

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

1. Audited Standalone financial results of the company for the quarter and year ended March 31, 2021.

2. Statutory Auditor’s Report of M/s. Ramanand & Associates, Chartered Accountant on the Standalone Financial Results for the quarter and year ended March 31, 2021.

3. Declaration as required under Regulation 33 (3) (d) of the SEBI (Listing Obligations & Disclosure Requirements) (Amendment) Regulations, 2016 and SEBI circular no. CIR/CFD/CMD/56/2016 dated May 27, 2016.

Kindly take the same on record.

Thanking you,

Yours Faithfully,

FOR PERMANENT MAGNETS LIMITED

RACHANA RANE COMPANY SECRETARY

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RegdOffice: Harsh Avenue, 302, 3[rd] Floor, opp. Silvassa Police Station, SilvassaVapi Main Road, Silvassa- 396 230. Dadra and Nagar Haveli (U.T.) (All correspondence has to be made at our Mira Road address only) CIN-L27100DN1960PLC000371

Permanent Magnets Limited

Regd Office : Harsh Avenue, 302, 3rd Floor, Opp. Silvasa Police Station, Silvassa - 396230, D & NH (UT) CIN - L27100DN1960PLC000371, Email: investors@pmlindia.com, Phone : +91 22 68285454 Website: www.pmlindia.com Statement of audited Financial Results for the Quarter and year ended 31st March, 2021

Sr. Particulars 1 (a) Gross Sales/Income from Operations (b) Other Income Total Income 2 Expenditure (a) Consumption of Raw Material (b) Purchase of stock-in-trade (c) Changes in inventories of Finished Goods, work-in- progress and stock-in-trade (d) Employee cost (e) Finance Cost (f) Depreciation & Amortisation Expenses (g) Other Expenditure Total Expenditures 3 Profit / (Loss) from Operations before Exceptional and Tax (1-2) 4 Exceptional Items 5 Profit before tax (3+4) 6 Tax expenses Current Tax Deferred Tax 7 Profit/(Loss) for the period from Continuing Operations ( after tax ) (5-6) 8 Profit/(Loss) from Discontinuing Operation 9 Tax Expenses of Discontinuing Operation 10 Profit/(Loss) from Discontinuing Operations ( after tax ) (8-9) 11 Profit/(Loss) for the period (7+10) 12 Other Comprehensive Income (OCI) 13 Net Profit/(Loss) ( Including Comprehensive Income )( 11+12) 14 Paid-up Equity Share Capital (Face Value of Rs. 10/- each) Total Reserves ( excluding revaluation reserve) 15 (i) Earning Per Share (before and after Extra Ordinary Items) - Basic - Diluted

(Rs. In lakh) 31.03.2021 (Audited) 31.12.2020 (Unaudited) 31.03.2020 (Audited) 31.03.2021 (Audited) 31.03.2020 (Audited) 3,721.62 3,211.46 2,299.17 11,667.93 10,656.05 43.52 16.73 132.25 88.58 270.24 3,765.15 3,228.19 2,431.42 11,756.51 10,926.29 1,686.92 1,522.50 1,101.98 5,387.94 5,166.77 - - - - - 107.35 (11.28) (52.03) 208.11 (104.85) 174.56 206.23 174.27 744.64 762.82 48.77 21.03 81.33 102.10 132.88 87.06 96.25 175.32 329.29 298.71 867.76 767.51 457.06 2,802.35 2,776.50 2,972.42 2,602.24 1,937.94 9,574.43 9,032.83 792.73 625.95 493.48 2,182.09 1,893.46 792.73 625.95 493.48 2,182.09 1,893.46 150.63 170.48 99.77 568.30 461.49 198.35 161.85 128.55 574.75 485.31 (47.72) 8.62 (28.77) (6.46) (23.81) 642.10 455.47 393.72 1,613.79 1,431.97 ---- - ---- - - - - - - 642.10 455.47 393.72 1,613.79 1,431.97 1.59 - (3.51) 1.59 (3.51) 643.68 455.47 390.21 1,615.38 1,428.46 859.85 859.85 859.85 859.85 859.85 7.49 5.30 4.54 18.79 16.61 7.49 5.30 4.54 18.79 16.61 Year Ended Quarter Ended on

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STATEMENT OF ASSETS AND LIABILITIES
As at As at
Particulars
31.03.2021 31.03.2020
ASSET
(1) Non Current Assets
(a) Property, Plant and Equipment 512.80 503.03
(b) Capital Work-in-progress
(c) Investment Property
(d) Goodwill
(b) Other Intangible assets 20.31 10.40
(c) Right-of-use Assets 273.21 416.22
-
(d) Financial Assets
(i) Loans 77.64 66.28
(e) Deferred Tax Assets (Net) 156.59 150.13
(f) Other Non-Current Assets 95.78 57.03
1,136.33 1,203.08
(2) Current Assets
(a) Inventories 2,100.54 1,924.77
(b) Financial Assets
(i) Trade Receivables 3,286.97 2,729.69
(ii) Cash and Cash Equivalents 343.17 198.23
(iii) Bank Balances 1,934.36 615.75
(iv) Loans 79.31 56.78
(c) Other Current Assets 518.52 582.64
8,262.86 6,107.86
Total Assets 9,399.19 7,310.94
EQUITY AND LIABILITIES
(1) Equity
(a) Equity Share Capital 859.85 859.85
(b) Other Equity 5,542.85 3,927.47
6,402.70 4,787.32
Liabilities
(2) Non Current Liabilities
(a) Financial Liabilities
(i) Borrowings 180.75 185.24
(ii) Other Financial Liabilities 187.40 304.02
(b) Provisions 76.24 83.94
444.40 573.20
(3) Current Liabilities
(a) Financial Liabilities
(i) Borrowings - 10.74
(ii) Trade Payables (Current) 2,215.34 1,498.31
(iii) Other Financial Liabilities 236.41 317.85
(b) Other Current Liabilities 46.43 84.82
(c) Provisions 4.04 1.78
(d) Current Tax Liabilities 49.87 36.94
2,552.09 1,950.42
Total Equity and Liabilities 9,399.19 7,310.94
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STATEMENT OF CASHFLOW
Particulars 31.03.2021 31.03.2020
INR INR
CASH FLOW FROM OPERATING ACTIVITIES
Profit before tax and extraordinary items (PAT) 2,183.67 1,889.95
Adjustment for :
Depreciation & Amortization
Depreciation for PPE 186.28 154.99
Depreciation for Leased assets 143.01 143.72
Impairement - 2.55
Loss/(Profit) on Sale of Assets (0.45) (1.38)
Finance Charges 45.61 69.71
Financial Charges under lease agreement 56.49 63.17
-
Interest income on security deposit (11.37)
Misc balance w/off (0.35) 1.60
Lease liability on transition of lease as per IND AS 116 (Profit/(loss) on - 13.49
lease modification & Others)
Short /Excess provision of earlier years (13.69) (0.52)
Unrealised Foreign Exchange Gain (7.64) (103.38)
Operating Profit before working Capital Changes 2,581.58 2,233.92
Adjustment for:
Inventories (175.76) (170.02)
Trade Receivables (543.29) 553.59
Other Assets (1,315.77) (887.84)
Trade Payables 716.86 (462.17)
Other Liabilities (59.76) 367.04
1,203.85 1,634.51
Direct Taxes Paid 511.19 484.79
Net cash flow from Operating Activities 692.66 1,149.72
CASH FLOW FROM INVESTMENT ACTIVITIES
Sale of/ (Additions to) Fixed Assets (205.51) (153.99)
Sale of/ (Additions to) investments (net)
Net cash used in investing activities (205.51) (153.99)
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from Long Term Borrowings (Net) (4.49) (38.89)
Proceeds from Short Term Borrowings (Net) (16.56) (572.81)
Finance Charges paid (Net) (45.61) (132.88)
Payment of Lease liabilities (275.54) (133.50)
Net cash from Financing Activities (342.20) (878.08)
NET INCREASE IN CASH AND CASH EQUIVALENTS 144.94 117.65
Opening Cash and Cash Equivalents 198.23 80.58
Closing Cash and Cash Equivalents 343.17 198.23
Notes :
1. The above statement has been prepared in indirect method as described in Ind AS -7 issued by ICAI.
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Notes:

• 1 The above results for the quarter and year ended 31 March, 2021, have been reviewed and recommended by the Audit Committee, approved by the Board of Directors at their Meeting held on 28/05/2021. The Statutory Auditors have expressed an unqualified audit opinion.

• 2 This statement has been prepared in accordance with the Companies (Indian Accounting Standards) Rule ,2015 (Ind AS) prescribed under Section 133 of Companies Act ,2013, read with rule 3 of the Companies (Indian Accounting Standards) Rules,2015 and Companies (Indian Accounting Standards) Rule ,2016.

• 3 As the Company operates mainly in one Business Segment i.e Engineering and Current Sensing applications hence are considered to be a single primary business segment, therefore the disclosure requirement of IND AS 108, Operating Segment is not applicable.

• 4 The figures for the current quarter ended March 31, 2021 and quater ended March 31,2020 are the balancing figures between audited figures in respect of full financial year ended March 31, 2021 and March 31,2020 respectively and published year to date figures upto to third quarter ended December 31,2020 and December 31,2019, respectively, which were subjected to Limited Review.

• 5 Honourable Bombay High Court has given interim stay order against the winding up order passed against the Company dated 15/04/2015. Next hearing in this matter shall come up as per listing of the court. Company has deposited Rs. 19,05,179/- Lac with interest as per direction of honourable Bombay High Court.

• 6 The Board of Directors recommend a final dividend of Re. 1/- per share (10%) on equity shares of Rs. 10/- each, for the financial year 2020-2021. Payment of final dividend is subject to approval of the shareholders.

• 7 COVID-19 pandemic had impacted the operations of the Company for the quarter ended June 30 , 2020, however, demand for the products continued and capacity utilization increased substantially during the quarter ended March 31 , 2021. The Company will continue to evaluate the pandemic related uncertainity on business and economic condition and update its assessment.

• 8 The figures for the previous period / year have been regrouped wherever necessary to confirm to the current year's classification.

For Permanent Magnets Limited Place : Thane Sharad Taparia Date: 28.05.2021 Managing Director

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Independent Auditor’s Report on the Statement of Audited Standalone Financial Results for the quarter and year ended March 31, 2021 of Permanent Magnets Limited Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

To

The Board of Directors of Permanent Magnets Limited,

Report on the audit of the Standalone Financial Results

Opinion

We have audited the accompanying Statement of Audited Standalone Financial Results of Permanent Magnets Limited (the “Company”) for the quarter and 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 income and other financial information of the Company for the quarter and 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 Standalone 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 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 Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter

We draw attention to Note no.5 of Financial Result which states that Honourable Bombay High Court had given interim stay order against winding up order and hearing in this matter shall come up as per listing of the court.

Management’s Responsibilities for the Standalone Financial Results

The Statement has been prepared on the basis of the standalone 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 income 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 Standalone 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 appropri a teness of accounting policies used and the rea s onableness of accounting estimates and related disclosures made by the Board of Direct o rs.

• Conclude on the appr o priateness of the Board of Directors’ use of the going concern basis of accounting a n d, based on the audit evidence obtained, whet h er a material uncertainty exists rela t ed to events or conditions that may cast significan t doubt on the Company’s ability to continue as a going concern. If we conclude t h at 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. O u r conclusions are based on the audit evidence obt a ined up to the date of our auditor’s report. However, future events or conditions m ay cause the Company to cease to c o ntinue as a going concern.

• Evaluate the overall pr e sentation, structure and content of the Statemen t , including the disclosures, and whether the Statement represents the underlying tr a nsactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matte r s, 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 w ith governance with a statement that we have complied with relevant ethical requirements r e garding independence, and to communicate w ith them all relationships and other matters th a t may reasonably be thought to bear on our inde p endence, and where applicable, related safeguar d s.

Other Matter

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

For Ramanand & Associates Chartered Accountants ICAI Firm Reg. No. 117776W

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CA Karan Verma Partner M. No. 161335 UDIN: 21161335AAAABQ9503

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Place: Thane. Date: 28[th] May, 2021

PERMANENT MAGNETS LIMITED

B-3, MIDC, Village Mira, Mira Road East, Thane - 401104, Maharashtra, India

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Phone : +91-22-68285454 Facsimile : +91-22-29452128 Email : sales@pmlindia.com Website : www.pmlindia.com

Declaration

Date : 28[th] May, 2021

To,

Corporate Relation Department The Bombay Stock Exchange Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001

Sub: Declaration pursuant to Regulation 33(3) (d) of the SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2016 ["LODR"]

Dear Sir/Madam,

In compliance with Regulation 33(3) (d) of LODR as amended by the SEBI Circular No. CIR/CFD/CMD/56/2016 we hereby declare that, Statutory Auditors of the Company M/s. Ramanand & Associates, Chartered Accountants (FRN: 117776W) have issued an Audit Report with unmodified opinion on the Audited (Standalone) Financial Results of the Company for the year ended March 31, 2021.

You are requested to take the same on record & oblige.

Thanking you,

Yours Faithfully,

FOR PERMANENT MAGNETS LIMITED

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SUKHMAL JAIN CHIEF FINANCIAL OFFICER

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Regd Office: Harsh Avenue, 302, 3[rd] Floor, opp. Silvassa Police Station, Silvassa Vapi Main Road, Silvassa- 396 230. Dadra and Nagar Haveli (U.T.) (All correspondence has to be made at our Mira Road address only) CIN-L27100DN1960PLC000371