Prakash Industries Ltd. — Interim / Quarterly Report 2021

Oct 25, 2021

- Prakash Industries Limited

Srivan, Bijwasan, New Delhi -110061 CIN : L27109HR1980PLC010724 Tel.: 25305800, 28062115 Fax: 91-11-28062119 E-mail : pilho@prakash.com Website : www.prakash.com

PIL/SE/UFR/02/2021-22 25th October, 2021

Listing Department BSE Ltd. Dalal Street Mumbai

Listing Department National Stock Exchange of India Ltd Bandra (E) Mumbai

Company Code : 506022

Company Symbol : PRAKASH

Sub: Outcome of Board Meeting

Dear Sir/ Madam,

We would like to inform you that the Board of Directors of the Company in its meeting held on 25th October, 2021 have approved the following:

1. Financial Results :

The Unaudited Financial Results for the quarter and half year ended 301 September, 2021 with limited review carried out by the Auditors of the Company. Copy of the said results and limited review report are enclosed and results also sent for publication in the prescribed format;

1. Press release on the financial results and key business highlights. Copy of the said press release is also enclosed.

The Board Meeting commenced at 11 :30 AM. and concluded at 12.45 P.M.

This is pursuant to Regulation 33, 52, & 30 of the SEBI (LODR), Regulations, 2015 and for your kind information and record please.

Thanking you,

Yours faithfully, For Prakash Industries Limited

Ashwini Kumar Company Secretary

Encls : as above

Prakash Industries Limited

(CIN : l 27109liR1980PLC010n4)

Regd. Office : 15 Km. Stone, Delhi Road, Hissar -125044 (Haryana) Corporate Office · SRIVAN, B11wasan. New Delt"i - 110061

Webs11ewww prakash.com

Statement of Unaudited Financial Results for the quarter/half year ended 30th September, 2021

	Statement of Unaudited Financial Results for the quarter/half year ended 30th September, 2021						(f In lakhs)
	S.No. Particulars	Quarter Ended			Half Year Ended		Year Ended
		30.09.21 Unaudited	30.06.21	30.09.20 Unaudited	30.09.21 Unaudited	30.09.20 Unaudited	31 .03.21 Audited
1	Revenue from operations		Unaudited
	Sales/ Income from operations				1 92 431	1 29285
		89 359	1,03 072	76,383			3,21 ,586
	Total Revenue from ooeratlons	89 359	1 03,072	76383	1 92 431 432	1 29 285 332	3 21 586 806
2	Other Income	149	283	183
3	Total Income (1+2)	89,508	1,03,355	76,566	1,92,863	1,29,617	3,22,392
4	Expenses
	a)Cost of matenal consumed	61 ,260	76,700	54,281	1,37,960	87,420	2,31,480
	b)Changes In inventories of finished goods
	and work-in-progress	573	170	41	743	1,354	(1809)
	c)Employee benefits expense	5,851	5,899	5,960	11,750	10,969	22,970
	d)Finance costs	1,815	1,906	1,783	3,721	3,865	7,352
	e)Depreciat1on and amort1sa11on expense	3,960	3,946	3,812	7,906	7,590	15,377
	f)Other expenses	11 742	10 659	9,774	22,401	17185	37,489
	Total Expenses	85 201	99280	75651	1,84 481	128383	3 12 859
5	Profit before Exceptional Items and Tax(3·4l	4 307	4075	915	8 382	1 234	9533
6	Exceptional items					-	10,367
	Less: Transfer from General Reserve		-			-	(10,367)
7	Profit before Tax(5·6l	4 307	4 075	915	8 382	1 234	9 533
8	Tax expenses
	-Current Tax(MAT)	769	724	154	1,493	194	8
	-MAT Credit Entitlement	(769)	(724)	(154)	(1493)	(194)	(8)
	Total Tax expense			-	-
9	Profit alter tax(7·8l	4 307	4 075	915	8382	1 234	9 533
10	Other Comprehensive Income
	a)ltems that will not be reclassified to Profit or loss
	-Remeasurement of defined benefit plans	55	55	(104)	110	(207)	890
	-Income tax relating to items that wtll not be reclass1fted to profit and loss·
							-
		55	55	(104)	110	(207)	890
11	Total Comprehensive Income for the period (9+10)	4 362	4 130	811	8 492	1 027	10,423
12	Paid up Equity Share Capital	17,908	17,908	17,158	17,908	17,158	17,908
	'Face Value '10 oer Share)
13	Earning Per Share ( Face value off 10 each)
	Before Exceptional Items
	(a)Basic'	2.40	2.28	0.53	4.68	0.72	5.55
	(b)Diluted '	2.32	2.19	0.51	4.51	0.69	5.27
	After Exceptional Items
	(a)Bas1c'	2.40	2.28	0.53	4.68	0.72	5.55
	(b)Diluted '	2.32	2.19	0.51	4.51	0.69	5.27
	(flQures for the quarter/half vear ended not annualtsedl

"Deterred tax l1abi 1ty is ad,usted against Secunbes Premium Account in 1erms ol an order ol Hon'bte High Coon

\

Prakash Industries Limited

(CIN:L27109HR1980PLC010724)

Regd. Office : 15 Km. Stone, Delhi Road, Hissar -125044 (Haryana) Corporate Office : SRIVAN, Bijwasan, New Delhi - 110061 Website:www.prakash.com

Statement of Assets and Liabilities		('{'In lakhs)
PARTICULARS	As at	As at
	Sept30,2021	March 31, 2021
	Unaudited	Audited
ASSETS
Non Current Assets
(a)Property, Plant and Equipment	2,80,906	2,87,866
(b)Capitai Work-in-progress	15,013	12,218
(c )Intangible Assets	9,605	9,705
(d)Financial Assets
(i)Other Financial Assets	4,676	6,622
(e)Non Current Tax Assets(Net)	117	117
(f)Other Non Current Assets	1,198	1,946
Total Non-current Assets	3,11,515	3,18,474
Current Assets
(a) Inventories	39,433	29,398
(b)Financiai Assets
(i)Trade Receivable	17,854	14,288
(ii)Cash and Cash Equivalents	517	1,653
(iii)Bank Balances other than (ii) above	6,672	2,826
(iv)Other Financial Assets	7,333	7,501
(c)Other Current Assets	19,539	14,273
Total Current Assets	91,348	69,939
TOTAL ASSETS	4,02,863	3,88,413
EQUITY AND LIABILITIES
Equity
(a)Equity Share Capital	17,908	17,908
(b)Other Equity	2,72,963	2,72,016
Total Eauity	2,90,871	2,89,924
LIABILITIES
Non Current Liabilities
(a)Financial Liabilities
(i)Borrowings	32,735	35,296
(ii)Lease liabilities	162	161
(b)Provisions	4,383	4,266
(c)Deferred Tax Liabilities	11,061	5,009
Total Non Current-Liabilities	48,341	44,732
Current Liabilities
(a)Financial Liabilities
		20,242
(i)Borrowings	18,904
(ii)Lease liabilities	12	12
(iii)Trade Payables
(a) total outstanding dues of micro and small enterprises	964
(b} total outstanding dues other than (ii) (a) above	14,901	1,ili 14,7
(iii)Other Financial Liabilities	18,470	8,93
(b)Other current Liabilities	6,527	6,023
(c)Provisions	2,360	2,328
(d)Current tax Liabilities	1,513	499
		53,757
otal Current Liabilities	63,651
OTAL EQUITY AND LIABILITIES	4,02,863	3,88,413 i

Prakash Industries Limited

(CIN:L27109HR1980PLC010724)

Regd. Office : 15 Km. Stone, Delhi Road, Hossar -125044 (Haryana) Corporate Office : SRIVAN, Najafgarh-Bljwasan Road,Bljwasan, New Delhi - 110061

Website:www.prakash.com

s	. d d d I' In lakhs) tatement of Cash Flow for the peno en e 301 h September'2021
PARTICULARS		For the period ended 30th September,2021		For the period ended 30th September,2020
A.	Cash Flow From Operating Activities :
	Profit before tax
	Adjustments for		8,382		1,234
	Provision for employee benefit	213		248
	Allowance for doubtful debts and advances	15
	Depreciation and amortisation expenses	7,906		32 7,590
	Interest & Other Income	(257)		(294)
	(Profit)/Loss on sale of fixed assets	(123)		-
	Financial Costs	3,721	11,475	3,865	11,441
	Operating Profit before working Capital changes		19,857		12,675
	Adjustments for
	Trade receivables	(3,566)		1,983
	Other financial assets	640		445
	Other current assets	(5,281)		(2,282)
	Inventories	{10,035)		(153)
	Trade payable and other financial liabilities	9,471		154
	Other current liabilities	334	(8,437)	2,483	2,630
	Cash flow generated from operations before exceptional items		11,420		15,305
	Direct Taxes Paid(Net of refund)		20		(66)
	Net Cash from operating activities		11,400		15,371
B.	Cash Flow From Investing Activities:
	Sale proceeds of fixed assets		148
	Purchases of fixed assets including CWIP and capital advances		(2,980)		(10,856)
	Interest and other income received		374		317
	Changes in Term deposits with banks		(2,489)		(1,112)
	Net cash used in investing activities		(4,947)		(11 ,651)
	c. Cash Flow From Financing Activities :
	(Repayments)/Proceeds from borrowings (Net)		(3,982)		{1,066)
	Dividend Distribution Tax		(499)		-
	Finance expenses paid		(3,108)		(1 ,979)
	Net Cash from financing activities		(7,589)		(3,045)
	Net Changes In Cash & Cash equivalents (A+B+C)		(1,136)		675
	Opening balance of Cash & Cash equivalents		1,653		2,968
	Closing balance of Cash & Cash equivalents Balance with Current Accounts				3,542
	Cheque, Drafts on hands		491		66
	Cash on hands		26		35
			517		3,643

Notes:

• 1. The above Unaudited Financial Results for the quarter and half year ended 30¹ September, 2021 have been reviewed by the Audit Committee and approved by the Board of Directors of the Company at their respective meetings held on 25th October, 2021. The Statutory Auditors have reviewed these financial results pursuant to Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.
• 1. This statement has been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 (Ind AS) prescribed under Section 133 of the Companies Act, 2013 as amended and other recognised accounting practices and policies to the extent applicable.
• 1. The Company operates in one segment only i.e. "Iron & Steel" and therefore, has only one reportable segment in accordance with IND AS 108 "operating segments".
• 1. The figures for the quarter ended 30th September, 2021 are the balancing figures between figures in respect of the unaudited year to date published figures up to the second quarter ended 30th September, 2021 and quarter ended 30th June, 2021 .
• 1. Previous period's figures have been regrouped I reclassified, wherever considered necessary to make them comparable.

Place: New Delhi Date: 25th October, 2021

CHATURVEDI & CO.

Chartered Accountants 406 KUSAL BAZAR, 32-33 NEHRU PLACE, NEW DELHl-110019 Phone: 011-41048438 E-mail: delhi@choturvedico.com * Website: www.choturvedico.com

Independent Auditor's Review Report on the Quarterly and Year to Date Unaudited Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

Review Report to The Board of Directors PRAKASH INDUSTRIES LIMITED

• 1. We have reviewed the accompanying statement of unaudited financial results of Prakash Industries Limited (the Company) for the quarter and half year ended September 30, 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 Regulation").
• 1. This statement, which is the responsibility of the Company's Management and has been approved by the Company's Board of Directors has been prepared in accordance with the recognition and measurement principle laid down in Indian Accounting Standard 34, (Ind AS 34) "Interim Financial Reporting" prescribed under section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to issue a report on these financial statements based on our review.
• 1. 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 financial statements 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
• 1. Deferred tax liability of Rs.403 and Rs. 7545 lakhs for the quarter and half year ended on September 30, 2021 has been adjusted against Securities Premium Account by the Company in terms of a court order. Had the deferred tax liability been accounted for pursuant to Ind AS -12 'Income Taxes', net profit and total comprehensive income after tax for the quarter and half year ended on September 30, 2021 would have been lower by Rs.403 and Rs. 7545 lakhs respectively.
• 1. Based on our review conducted as above, except for the effect of our observation stated in para 4 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 Regulations 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, including the manner in which it is to be disclosed, or that it contains any material misstatement.

For CHATURVEDI & CO. Chartered Accountant

Firm Registration No. 302137E 4- "1.

PANKAJ CHATURVEDI Partner Membership No. 091239 Vt>ll'I.!- ~' o<\la3~Af\AACT ]'Ji.\~

New Delhi October 25, 2021

Date: 25"' October, 2021

PRAKASH INDUSTRIES LIMITED

FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30TH SEPTEMBER, 2021

Q2FY2022 vs Q2FY2021 <t in Crores)

During the quarter, the Company has achieved Net Sales of ~ 894 Crores and EBITDA of ^~101 Crores, reflecting growth of 17% and 55% respectively over the corresponding quarter of last financial year. Profit after Tax for the quarter also grew by 371% on YoY basis to ^~43 Crores.

During the Half year ended 30th September, 2021 , the Company has achieved Net Sales of ^~1924 Crores and EBITDA of ~ 200 Crores, reflecting growth of 49% and 58% respectively over the corresponding period of last financial year. Profit after Tax for the half year ended 30th September, 2021 also grew by 579% on YoY basis tot 84 Crores.

• Iron Ore Mining

The Company has mined -1 .8 lakh tonnes of Iron Ore from its Sirkaguttu mine, Odisha during the quarter, up by 112% over corresponding quarter of last financial year. The Company plans to further enhance the production capacity in the following quarters which shall also contribute significantly to the margins of the Company.

• Commercial Coal Mine

The Company has been declared as the "Successful Bidder'' in respect of Bhaskarpara Coal Mine in the 12th tranche of auction of Coal Mines under Coal Mines (Special Provisions) Act, 2015 for commercial mining. The coal extracted from this mine could be used for captive consumption as well as for commercial sale. The timely opening of the mine shall come as a great respite in the current scenario marked by global. . ... -··:..~.. ~ge an~ spiralling prices, thereby resulting in uninterrupted supplies of coal ^~a sig~~ ·: ~t gains to the Company. ·.\·.r. NL '.rfn~ ~w,o-v •;,_-J-. ~ (>?: ·:-t· - ():

Disclaimer: This release contains forward-looking statements based on the currently held beliefs and assumptions of the management of Prakash lnd~;t 1~L -fr; rf>i~;. which ore expressed in good faith and, in their opinion, reasonable. Forward looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or industry results, to differ materially from the results or performance implied by such forward-looking statements. Given these risks, uncertainties and other factors, recipients of this document ore cautioned not to place undue reliance on these f orward-looklng statements.