Pradeep Metals Ltd. - Interim / Quarterly Report 2022

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9[th] November, 2021

The Secretary BSE Limited P J Towers, Dalal Street, Mumbai- 400 001.

Dear Sir,

Sub: Outcome of Board Meeting dated 9[th] November, 2021:

Scrip Code: 513532

This is in continuation to our letter dated 30[th] October, 2021 and pursuant to Regulation 33, 30 and other applicable regulations, if any, of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the Listing Regulations).

We wish to state that the Board of Directors of the Company in its meeting held today has interalia:

Has considered and approved the Un-Audited Financial Results of the Company on Standalone and Consolidated basis for the quarter and half year ended 30[th] September, 2021 along with Limited Review Reports thereon and Cash Flow Statement for half year ended 30[th] September, 2021.
Accepted Resignation of Ms. Nivedita Nayak, Company Secretary and Compliance Officer of the Company w.e.f. 30[th] November, 2021.
Approved appointment of Mr. Abhishek Joshi (Membership Number: A64446) as Company Secretary and Compliance Officer of the Company with effect from 1st December, 2021.
The Board was updated on several initiatives being pursued by the Management in the area of defence equipment's manufacturing, along with Defence Research and Development Organization (DRDO).

A copy of the said results, notes thereto and Auditors Limited Review Report thereon, Cash Flow Statement is enclosed for your records.

The meeting of the Audit Committee/Board of Directors of the Company commenced at 4.30 p.m. and concluded at 7.45 p.m.

Please take the above information on record.

For Pradeep Metals Limited

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Nivedita Nayak Company Secretary & Compliance Officer FCS: 8479

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To The Board of Directors of Pradeep Metals Limited

We have reviewed the accompanying statement of unaudited standalone financial results Statement ) of Pradeep Metals Limited ( for the quarter and half year ended 30[th] September, 2021, 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 ( .

Management responsibility

The 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 the Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India.

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Our responsibility is to issue report on this Statement based on our review.

We conducted our review in accordance with the Standard on Review of Interim Financial Information Performed by the Independent Auditor of th , issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statements are free of material misstatement. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provides less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.

Conclusion

Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement of unaudited standalone financial results, prepared in accordance with recognition and measurement principles laid down in Ind AS 34, prescribed under Section 133 of the Companies Act, 2013, read with relevant rules issued thereunder and other recognized accounting practices and policies, has not disclosed the information required to be disclosed in terms of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement.

Emphasis of matter

Reference is invited to note 5 of the notes to financial results. In view of accumulated losses in the wholly owned subsidiary (WOS) and step down subsidiary (SDS), expected business impact of COVID 19 and provision for impairment of goodwill and tangible assets by SDS, the Company carried out impairment assessment in respect of its investment in WOS and loans granted to WOS. Based on such assessment, the Company has made additional provision for impairment of Rs. 34 lakhs in the value of its investment in WOS during the quarter ended 30[th] September 2021 (Provision for impairment made of Rs. 27 lakhs during the quarter ended 30th June 2021, Rs.85 lakhs during the quarter ended 30th September 2020, Rs.61 lakhs for the half year ended 30th September, 2021, Rs.142 lakhs for the half year ended 30th September 2020 and Rs.270 lakhs for the year ended 31st March 2021. Aggregate impairment provision made upto 30th September 2021 amounts to Rs.601 lakhs). In the view of management, considering the long term and strategic nature of investment, the balance carrying value of investment in WOS would yield the required benefits and the loan given to the WOS is considered as fully recoverable.

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Our opinion is not modified in respect of above matter. Above matter was reported in our reports on the audited / unaudited standalone financial results of the previous years and earlier quarters and our opinion was not modified.

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For N. A. Shah Associates LLP Chartered Accountants

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Milan Mody Partner Membership number: 103286 UDIN: 21103286AAAAIN3656

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Place: Mumbai Date: 09[th] November, 2021

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Limited Review Report on quarterly unaudited consolidated financial results of Pradeep Metals Limited pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended)

To The Board of Directors of Pradeep Metals Limited

1. We have reviewed the accompanying statement of unaudited consolidated financial results of Pradeep Metals Limited the ) and its Wholly Owned Subsidiary (WOS) and Step Down Subsidiary (SDS) (collectively referred , for the quarter and half year ended 30[th] September 2021 the Statement ), being submitted by the Holding Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended .

2. The Statement, which is the responsibility of the Holding Company by the Holding Company , has been prepared in accordance with the recognition accounting principles generally accepted in India.

sibility

3. Our responsibility is to issue report on the Statement based on our review.

We conducted our review in accordance with the Standard on Review Engagements (SRE) 2410 of Interim Financial Information Performed by the Independent Auditor of by the Institute of Chartered Accountants of India. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying 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 Listing Regulations, to the extent applicable.

4. These unaudited consolidated financial results include results of the following entities:

	Name of the Entity	Relationship
	Pradeep Metals Limited Inc., USA	Wholly Owned Subsidiary (WOS)
	Dimensional Machine Works LLC, USA	Step Down Subsidiary (SDS)

5. Conclusion

Based on our review conducted and procedures performed as stated in paragraph 3 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 Standard and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of the Listing Regulations (as amended), including the manner in which it is to be disclosed, or that it contains any material misstatement.

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6. Emphasis of Matters

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Reference is invited to note 9(b)(i) & (ii) of the Statement. In respect of SDS;

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a) The management has carried out impairment assessment in respect of goodwill and tangible assets considering the continuing losses and assessment of financial impact on account of Covid-19 on future cash flows. Based on such assessment, the SDS has made additional provision for impairment of Rs. 34 lakhs for goodwill and tangible assets during the quarter ended 30[th] September 2021 (Provision for impairment made of Rs.27 lakhs during the quarter ended 30th June 2021, Rs.85 lakhs during the quarter ended 30th September 2020, Rs.61 lakhs for the half year ended 30th September, 2021, Rs.142 lakhs for the half year ended 30th September 2020 and Rs.270 lakhs for the year ended 31st March 2021 and aggregate impairment provision upto 30[th] September, 2021 is Rs. 601 lakhs). Management is of the view that expected growth in by the management, will generate
sufficient cash flows to cover balance carrying value of tangible assets in the books of SDS as at 30[th] September 2021.

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b) (i) Ageing of slow/non-moving items of inventories is not available from the system. Management is of the view that there is demand for the SDS's products and these inventories have realizable value greater than cost. Based on the management estimate, provision is made wherever considered necessary. We have relied on the management for the demand estimate and expected price realization. (ii) Further, the improvement in the systems and processes of maintaining the inventory records is in process.

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Our conclusion is not modified in respect of above matters. The matters in paragraph (a) and (b) above were reported in our reports on the audited / unaudited standalone financial results of the previous years and earlier quarters and our opinion was not modified.

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For N. A. Shah Associates LLP

Chartered Accountants

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Milan Mody

Partner Membership number: 103286 UDIN: 21103286AAAAIO1252

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Place: Mumbai Date: 9[th] November, 2021

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AI assistant

Pradeep Metals Ltd. Interim / Quarterly Report 2022

62199_rns_2021-11-09_00dd8f1f-c541-4b58-94ee-5b3fee3ae656.pdf

Sub: Outcome of Board Meeting dated 9[th] November, 2021:

Scrip Code: 513532

For Pradeep Metals Limited

To The Board of Directors of Pradeep Metals Limited

Management responsibility

Conclusion

Emphasis of matter

Limited Review Report on quarterly unaudited consolidated financial results of Pradeep Metals Limited pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended)

To The Board of Directors of Pradeep Metals Limited

sibility

5. Conclusion

6. Emphasis of Matters

For N. A. Shah Associates LLP

Milan Mody

AI assistant

Pradeep Metals Ltd. — Interim / Quarterly Report 2022

62199_rns_2021-11-09_00dd8f1f-c541-4b58-94ee-5b3fee3ae656.pdf

Sub: Outcome of Board Meeting dated 9[th] November, 2021:

Scrip Code: 513532

For Pradeep Metals Limited

To The Board of Directors of Pradeep Metals Limited

Management responsibility

Conclusion

Emphasis of matter

Limited Review Report on quarterly unaudited consolidated financial results of Pradeep Metals Limited pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended)

To The Board of Directors of Pradeep Metals Limited

sibility

5. Conclusion

6. Emphasis of Matters

For N. A. Shah Associates LLP

Milan Mody

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