RKEC Projects Limited — Interim / Quarterly Report 2021

Feb 12, 2021

12 Feb 2021

To

The Manager – Corporate Compliance, National Stock Exchange of India Limited Exchange Plaza, Plot No: C1, G Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400051

Symbol: RKEC

OUTCOME OF THE MEETING OF THE BOARD OF DIRECTORS HELD ON 12 FEB 2021

Dear Sir/Madam,

This is to inform you that a meeting of the Board of Directors was held today i.e., 12 Feb 2020 at 11:00 A.M at the Registered Office of the Company situated at Door No. 10-12/1, Rednam Alcazar, 3rd Floor, Opp. SBI Main Branch, Rednam Gardens and the following is the outcome of the Board Meeting:

• 1. The Board of Directors of the Company has noted and/or approved the Standalone and Consolidated Un-Audited Financial Results for the Quarter ended on 31 Dec, 2020.
• 1. Reviewed business operations.
• 1. Other matters.

The meeting was commenced at 11:00 A.M. and concluded at 6:30 P.M.

On Behalf of the Board of Directors LIMIT For RKEC Projects Limited

Deepska Rath

Deepika Rathi Company Secretary & Compliance Officer

SARC & ASSOCIATES Chartered Accountants

49-28-13, Madhuranagar, Visakhapatnam, Andhra Pradesh-530016 India M: +91 988 557 6567 T: +91 891 275 4479 E: chandra@sarcmail.in

Limited Review report on unaudited quarterly Standalone financial results and Standalone year-to-date results of RKEC projects Private limited under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

To

The Board of Directors RKEC Projects Limited

• We have reviewed the accompanying statement of unaudited Standalone $1.$ results of M/s. RKEC Projects Limited (the "Company") for financial the quarter ended 31st December 2020 and year-to-date results for the period from 01st April 2020 to 31st December 2020 (the "Statement"), 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 Statement which is the responsibility of the Company's Management 2. and has been approved by the Board of Directors of the Company, had been prepared in accordance with the recognition and measurement principles as laid down under Indian Accounting Standard 34 - Interim Reporting (the "Ind AS 34") prescribed under Sec 133 of the Companies Act 2013 read with relevant rules issued there under and other accounting principles generally accepted in India. Our responsibility is to issue a report on the statement based on our review on the basis of information produced before us.
• We conducted our review of the Statement in accordance with the 3. Standard on Review Engagement (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 is limited primarily to inquiries of Company personnel and analytical procedure applied to financial data and thus provides less assurance than an audit. We had perform a Limited Review Audit and, accordingly we do not express an audit opinion.

Info@sarcmail.in

Head Office: D-191, Okhla Industrial Area Phase-I, New Delhi - 110020 INDIA Email: Branches : New Delhi . Mumbai . Ahmedabad . Surat . Nadiad . Anand . Hyderabad . Vizag . Chandigarh www.sarcassociates.com · Noida · Mandi

Based on review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement of Unaudited Financial Results prepared in accordance with applicable Ind AS specified under Sec 133 of the Companies Act 2013 as amended, read with relevant rules issued there under and other recognised accounting practices and policies has not disclosed in terms of Regulation 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 SARC & Associates Chartered Accountants

& ASSO HO* VISAKHAPATNA

(Chandra Sekhar Akula) Partner M.No. 206704

Place: Visakhapatnam Date: 12th February 2021

UDIN: 21206704AAAABY4993

$4.$

RKEC PROJECTS LIMITEDRegistered office 10-12-1,3rd floor Rednam Alcazar , Redbam Gardens opp SBI main branch ,Visakhapatnam 530002.

$\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{$

UN AUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2020Statement of Profit and Statement of Profit and Loss

					Rs in lacs
			For the Quarter EndedRs in lacs		For the Nine Months Ended
SI. No.	Particulars	31-12-2020	30.09-2020	31-12-2019	31-12-2020	31-12-2019
		Un Audited	Un Audited	Un Audited	Un Audited	Un Audited
	Revenue from Contracts with Customers	5,305.85	3,734.36	3,500.56	11,672.73	17,927.81
$\overline{ }$		34.19	57.75	28.83	152.29	199.02
Π	Other Income				11,825.02	18,126.83
Ξ	Total Income $(1 + I)$	5,340.04	3,792.11	3,529.39
$\overline{\mathcal{N}}$	Expenses
	(a) Operating Expenses	3,866.22	2,695.66	1,904.53	8,339.43	11,795.29
	(b) Employee Benefit expenses	321.05	383.33	420.11	1,012.91	1,246.57
	(d) Finance Costs	364.74	213.67	604.48	685.74	1,044.01
	(e) Depreciation and amortoisation expsesn	179.50	167.98	147.20	$\frac{5}{10}$5.45	423.59
	(e) Other expenses	144.97	109.09	80.80	440.48	712.66
	Total expnses (IV)	4,876.47	3,569.73	3,157.12	10,9910.94	15,222.11
$\prec$	Profit before exceptional items (III - IV)	463.57	222.38	372.27	10188	2,904.72
$\ensuremath{\mathop{\mathbb{M}_{\vphantom{A}}}}\nolimits$	Exceptional items			322.64		754.15
ПΛ	Profit before Tax (V - VI)	463.57	222.38	49.63	10.138	2,150.56
ПІД	Tax Expenses
	Current Tax	116.67	36.51	12.78	209.15	553.62
	Deferred Tax	1.34	26.95	$-1.07$	52.09	-2.64
XI	Profit for the period ending (Vii - VIII)	345.56	158.92	37.92	569.77	1,599.58

$\ddot{t}$

$\mathbb{R}^2$

			IIX	X				×
Chartered AccountantsFRN: 006085Nfor SARC & AssociatesIn Terms of our report of even date annexed	(II) Diluted (In INR)	(I) Basic (In INR)	Earnings per share	Total comprehensive Income for the period (IX+X)	Total	Remeasurements of defined benefit plans	Items that will not be reclassified to P & L Account	Other Comprehensive Income
CHARDOSH RISOCIA$\lambda$Sś
E	1.44	1.44		345.56
	0.34	0.34		158.92
for and on behalf of board of directors ofRK FC Pojects Ltdle Mr!	0.16	0.16		37.92
	2.37	2.37		569.77
G. Poorbattiqui	6.67	6.67		1,599.58
	11.61	11.61		2,785.96

$\frac{1}{\sqrt{2}}$ $\tilde{\mathbf{X}}$ $\tilde{V}$

$\bar{z}$

Visakhapatnam Dr. 12-02-2021 Membershþ No. 206704∪DIN:21 2-O G ∓-O Ҷ+AAAAB & V 4943

Partner

Chandra Sekhar Akula

TEDACCO

(G. Radhakrishna) Walley

Managing Director DIN: 00073080

1

G. Poerbott Om

G.Parvathi DeviWhole Time Director DIN: 00094961

Deepi le.(L.X).rDeepia RathiCompany Secretary

$\left\langle \right\rangle$

$\langle$

R.JayachandranCFO

$\sqrt{c}$

Registered office 10-12-1,3rd floor Rednam Alcazar, Redbam Gardens oppsbi main branch, Visakhapatnam (v) Un Audited Standalone Statement of assets and liabilities for the period ended 31st December 2020 as per Regulation 33(3)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended: Rs in Lacs As at Particulars 31-12-2020 31-12-2019 30-09-2020 31-03-2020 Unaudited Unaudited Unaudited Audited ASSETS: Non-current assets Property, plant and equipment 5,205.92 3,073.90 2,834.87 3,097.12 Capital work-in-progress 9.74 2,115.63 2,337.90 2,253.29 Investment property Intangible assets 2.37 $2.80$ $2.47$ 2.68 Intangible assets under development Right of use assets Financial assets: 0.58 0.58 Investments 18.92 0.73 Loans Other financial assets Deferred tax assets(net) 73.37 101.97 74.72 124.31 Other non-current assets Sub-total - Non-current assets 5,291.99 5,313.22 5,250.54 5,478.12 Current assets 12,655.90 6,725.36 8,083.39 Inventories 7,198.67 Financial assets: Investments Trade receivables 6,055.04 7,461.34 9,368.15 10,652.74 Cash and cash equivalents 679.63 46.62 271.88 302.70 Other bank balances 3,630.94 3,729.91 3,621.16 4,140.67 Loans 3,438.18 3,931.41 4,644.72 3,623.21 Other financial assets Other current assets 259.84 258.67 226.05 336.35 27,293.06 22,293.10 Sub-total - Current assets 25,193.83 26,562.54 Group(s) of assets classified as held for sale TOTAL ASSETS 32.585.05 27.606.32 30.444.37 32,040.66

EQUITY AND LIABILITIES:
EQUITY
Equity share capital	2,399.06	2,399.06	2,399.06	2,399.06
Other equity	9,975.73	8,219.57	9,630.17	9,405.96
Sub-total - Equity	12,374.79	10,618.63	12,029.23	11,805.02
LIABILITIES
Non-current liabilities
Financial liabilities:
Borrowings	655.74	385.13	845.68	392.03
Lease liability
Other financial liabilities
Provisions	104.90	72.59	104.90	70.83
Other non-current liabilities
Sub-total - Non-current liabilities	760.64	457.72	950.58	462.86
Current liabilities
Financial liabilities:
Borrowings	9,648.73	5,705.95	8,664.53	6,145.03
Current maturities of long term	316.81	502.33	228.66	419.85
borrowings
Lease liability
Trade payables:	4,303.54	5,130.13	5,749.02	9,380.33
Due to micro enterprises and
small enterprises
Due to others
Other financial liabilities	2,567.77	3,346.17	2,047.87	2,391.48
Other current liabilities	1,913.60	1,117.36	336.10	473.58
Provisions	477.62	177.05	124.36	740.96
Current tax liabilities(net)	221.55	550.98	314.02	221.55
Sub-total - Current liabilities	19,449.62	16,529.97	17,464.56	19,772.78
Liabilities associated with the
group(s) of assets classified as held				$\overline{\phantom{a}}$
for sale
TOTAL EQUITY AND LIABILITIES	32,585.05	27,606.33	30,444.37	32,040.66

In Terms of our report of even date annexed

& ASSO OLOR on hehalf of board of directors of for SARC & Associates Chartered Accountants Ltd RKE oie G. Pargotti Devi PROJECTS FRN:006085N HAPATNAN Parvathi Devi 199 (G. Radhakrishna) Chandra Sekhar Akula $\overline{O}$ Partner. Managing Director ★ Whole Time Director المالي Membership No. 206704UDIN: 21206704 ABBABY4995 DIN: 00073080 DIN: 00094961 hapatnum Deepika Raths R.Jayachandran Deepika Rathi Dt: 12-02-2021 Visakhapatnam CFO Company Secretary

Notes:
The above Unaudited Financial statements for the 3rd Qtr ended December 31st 2020 have been reviewed and
recommended by the Audit committee at its meeting held on Febraury 12, 2021. The Statutory Auditor has given
their Limited review report on the Un Audited Financial results for the 3rd Qtr ended December 31st 2021 which
lwas reviewed by the audit committee and the board on February 12, 2021.

There is a common CODM assesses the internal reports of all the projects that the company is undertaking and accordingly the resource allocation and the key decisions are being handled. Also that there is a commonality involved in all the projects that the company is undertaking with respect to the nature of the work, technicality $\overline{2}$ involved, expertise etc., In view of the same, no separate reportable segments are identified by the Management for the purpose of reporting in the Financial statements.

The mandatory requirement of implantation of Ind AS is made applicable to company from the Financial year 2020-3 21 since the Company is upgraded to Main board in NSE and the exemption from application Ind AS is no longer available. In view of this, this is to state that the unaudited results for the Quarter ending 31st Dec 2019 are given as comparatives.

4 Impact of COVID,

The company had a Target of achieving a turnover of Rs 220 Cr for 3rd Qtr ended 31-12-2020, however due to unprecedented attack of pandemic since Mar-2020, and the resultants impediments on account of sourcing of materials, labour turnover etc., the Company has suffered a reduction to the tune of Rs 50 Cr. A further reduction in Turnover to the Tune of Rs 50 Cr was suffered on the account for want of credit limits .The company is taking all out efforts to partly compensate the above short falls.

5 Resumption of work of Rural Electrification at Puvnnl

The company had taken up a work of Rural Electrification as a part of its diversification in the year 2015. After completion of the work to the tune of Rs 95 cr out of total Rs 120 cr, the work got terminated for reasons beyond the control of the company. The matter went for litigations and Arbitration in the year 2018. Subsequently conciliation proceedings were initiated during 2019.As a part of conciliation the company had with drawn the written petition it is filed before the honourable high court Allahabad, Lucknow bench and so was the arbitration. The above were done with out prejudice to the companies rights interms of contract. The process of conciliation reached to a conclusion during Jul 2020 and the client had issued orders to the following effects. The contracts which were terminated were re-validated vide order dt:06-08-2020. Accordingly necessary reclassification of Assets were done.

a. Revalidated the contract which was terminated vide there order dt: 10-04-2018.

b. Extention of time on the contract was granted upto 31-12-2020.

c. The work was resumed and has been successfully completed.

6 Other Income

Other Income Consist of Interest on FDR's

(vi) Condensed statement of cash flows as per Regulation 33(3)(g) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended:

	Rs In lacs	Rs In lacs
Particulars	For the 3rd OtrEndedDec 31, 2020[Un Audited]	For the 3rd Qtr EndedDec 31, 2019[Un Audited]
Cash flows from Operating activities
Profit before tax	831.01	1,745.89
Non-cash adjustment to reconcile profit before tax to net cash flows
Depreciation	515.45	373.10
Loss/(Profit) on sale of fixed assets
Loss/(Profit) from Joint Venture	0.58	0.31
Interest expense	685.74	693.04
Interest income	$-144.71$	$-129.28$
Operating profit before working capital changes	1,888.07	2,675.94
Changes in working capital:
Adjustments for (increase) / decrease in operating liabilities:
Increase/(Decrease) in Trade payables	$-826.59$	4,172.41
Increase/(Decrease) in Long-term Provisions	32.31	$-1.41$
Increase/(Decrease) in Short-term Provisions	300.57	436.62
Increase/(Decrease) in /Other current liabilities	3,427.82	919.82
Adjustments for (increase) / decrease in operating assets:
Decrease/(Increase) in Trade receivables	1,406.30	$-3,379.03$
Decrease/(Increase) in Inventories	$-5,930.54$	$-1,146.73$
Decrease/(Increase) in Short-term loans and advances	$-1,206.54$	$-692.73$
Decrease/(Increase) in Other current assets	27.43	$-133.03$
Cash generated from / (used in) operations	$-881.16$	2,851.84
Less: Income tax paid	118.01	521.59
Net cash flow from (used in) operating activities (A)	$-999.18$	2,330.26
Cash flows from Investing activities
Purchase of fixed assets, including intangible assets, CWIP	$-2,131.60$
and capital advances		$-820.92$
CWIP	2,105.89	$-392.01$
Profit/(Loss) from Joint Venture		$-0.31$
Investment in Joint Venture	18.34	18.19
Proceeds from sale of fixed assets
Bank balances not considered as cash and cash equivalents	98.97	42.18
Interest received	144.71	129.28
Net cash used in investing activities (B)	236.17	$-1,023.73$
Cash flows from Financing activities
Proceeds from (repayment of) long term borrowings	270.61	$-443.29$
Proceeds from (repayment of) short term borrowings	17.85	468.12
Dividend(Interim) Paid during the year (Incl Dividend dist tax)	527.28
Interest paid	$-685.74$	$-693.04$
Net cash flow from financing activities (C)	130.00	$-668.21$
Net increase/(decrease) in Cash and Cash Equivalents $(A + B + C)$	$-633.01$	638.32
Cash and cash equivalents at the beginning of the year	679.63	41.31
Cash and cash equivalents at the end of the year	46.62	679.63

Note: The figures have been regrouped / rearranged, wherever considered necessary, for comparision purposes.

ASS $Q_1$

In Terms of our report of even date annexed

for SARC & Associates Chartered Accountants FRN: 006085N

Chandra Sekhar Akula DACCOU Partner Membership No 206704UDIN: 2 206704 AA AA BY4993

for $RK$

PROJEC

Datnam-

(G. Radhakrishna) Managing Director DIN: 00073080

R.Jayachandran CFO

half of board of directors ofLtd GRandaft: Devi

G.Parvathi Devi Whole Time Director DIN: 00094961

DeepikaRathy Company Secretary

SARC & ASSOCIATES Chartered Accountants

49-28-13, Madhuranagar, Visakhapatnam, Andhra Pradesh-530016 India M: +91 988 557 6567 $T: +918912754479$ E: chandra@sarcmail.in

Limited Review report on unaudited quarterly consolidated financial results and consolidated year-to-date results of RKEC projects Private limited under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

To

The Board of Directors RKEC Projects Limited

• We have reviewed the accompanying statement of unaudited consolidated 1. financial results of M/s. RKEC Projects Limited (the "Company") for the quarter ended 31st December 2020 (the "Statement") and year-to-date results for the period from 01st April 2020 to 31st December 2020 being submitted by the company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended (Listing Regulations)
• The Statement which is the responsibility of the Company's Management 2. and has been approved by the Board of Directors of the Company, had been prepared in accordance with the recognition and measurement principles as laid down under Indian Accounting Standard 34 - Interim Financial Reporting (the "Ind AS 34") prescribed under Sec 133 of the Companies Act 2013 read with relevant rules issued there under and other accounting principles generally accepted in India and compliance with Regulation 33 of the Listing Regulations Our responsibility express a conclusion on the statement based on our review.
• 1. We conducted our review of the Statement in accordance with the Standard on Review Engagement (SRE) 2410, "Review of Interim Financial Information performed by the Independent Auditor of the Entity", issued by the Institute of Chartered Accountants of India. A review of interim financial information consists of making enquires, primarily 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 accordingly Standards on Auditing and consequently does not enable us to obtain assurance that we would became aware of all significant matters that might be identified in an audit. Accordingly we don't express an audit opinion

Info@sarcmail.in

Head Office : D-191, Okhla Industrial Area Phase-I, New Delhi - 110020 INDIA Email: Branches : New Delhi . Mumbai . Ahmedabad . Surat . Nadiad . Anand . Hyderabad . Vizag . Chandigarh www.sarcassociates.com · Noida · Mandi

Based on review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement of Unaudited Financial Results prepared in accordance with applicable Ind AS specified under Sec 133 of the Companies Act 2013 as amended, read with relevant rules issued there under and other recognised accounting practices and policies has not disclosed in terms of Regulation 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 SARC & Associates Chartered Accountants

(Chandra Sekhar Akula) Partner M.No. 206704

Place: Visakhapatnam Date: 12th February 2021

$4.$

UDIN: 21206704AAAABX4540

Registered office 10-12-1 ,3rd floor Rednam Alcazar , Rednam Gardens opp sbi main branch , Visakhapatnam 530002.

STATEMENT OF CONSOLIDATED UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31st, 2020

			For the Qtr Ended			For the Nine Months Ended	For the year ended
Ńo.si.	Particulars	audited31-12-2020	audited$[Un]$ 30-09-2020	$\Xi$audited$[Un]$ 31-12-2019	$\mathbb{U}$ naudited)31-12-2020	(Unaudited)31-12-2019	31-03-2020(Audited)
	Revenue from Contracts with Customers	5,312.87	4,259.82	3,500.56	12,205.21	18,836.88	30,398.25
$\equiv$	Other Income	34.19	57.98	28.83	152.53	193.51	294.71
$\mathbb{H}$	Total Income (I + II)	5,347.06	4,317.81	3,529.39	12,357.74	19,030.39	30,692.96
IV	Expenses
	(a) Operating Expenses	3,846.50	3,220.93	1,904.53	8,844.98	12,653.46	20,808.42
	(b) Employee Benefit expenses	321.05	383.45	420.11	1,013.03	1,246.57	1,834.91
	(d) Finance Costs	389.71	213.68	604.48	710.72	1,024.22	1,132.56
	(e) Depreciation and amortoisation expenses	179.50	167.98	147.20	515.45		649.49
	(e) Other expenses	146.87	109.40	80.80	442.69	423.59713.04	1,250.04
	Total expenses (IV)	4,883.62	4,095.44	3,157.12	11,526.88	16,060.88	25,675.43
$\triangledown$	Profit before exceptional items (III - IV)	463.44	222.37	372.27	830.86	2,969.51	5,017.53
$\overline{v}$	Exceptional items			322.64		754.15	1,332.89
VЦ	Profit before Tax (V - VI)	463.44	222.37	49.63	830.86	2,215.36	3,684.65
VIII	Tax Expenses
	Current Tax	116.64	55.97	12.77	209.11	569.92	1,130.19
	Deferred Tax	1.34	23.80	$-1.07$	52.09	$-2.64$	$-26.68$
×	Profit for the period ending (Vii - VIII)	345.46	142.60	37.93	569.67	1,648.07	2,581.14
×	Other Comprehensive Income
	Items that will not be reclassified to P & LAccount
	Remeasurements of defined benefit plans						¥,
	Total

Registered office 10-12-1,3rd floor Rednam Alcazar, Rednam Gardens opp sbi main branch, Visakhapatnam 530002.

(v) Consolidated Statement of assets and liabilities for the period ended as per Regulation 33(3)(f) of the SEBI (Listing Obligations and Disclosure requirements) Regulations, 2015 as amended:

				(INR Lakhs)
				As at
Particulars	31-12-2020(Unaudited)	31-12-2019(Unaudited)	30-09-2020(Unaudited)	31-03-2020 (Audited)
ASSETS:
Non-current assets
Property, plant and equipment	5,205.92	3,073.90	2,834.87	3,097.12
Capital work-in-progress	9.74	2,115.63	2,337.90	2,253.29
Investment property
Intangible assets	2.37	2.80	2.47	2.68
Intangible assets under development
Right of use assets
Financial assets:
Investments
Loans
Other financial assets
Deferred tax assets(net)	73.37	101.97	74.72	124.31
Other non-current assets
Sub-total - Non-current assets	5,291.41	5,294.30	5,249.96	5,477.40
Current assets
Inventories	12,655.90	6,725.36	8,083.39	9,127.21
Financial assets:
Investments
Trade receivables	6,346.99	7,461.34	10,555.66	8,464.80
Cash and cash equivalents	47.00	679.63	327.51	424.39
Other bank balances	3,667.24	3,729.91	3,621.16	4,140.67
Loans	4,717.83	3,438.18	3,636.29	4,625.23
Other financial assets
Other current assets	281.16	258.67	306.88	694.23
Sub-total - Current assets	27,716.12	22,293.10	26,530.88	27,476.53
Group(s) of assets classified as held
for sale
TOTAL ASSETS	33,007.52	27,586.40	31,780.84	32,953.93
EQUITY AND LIABILITIES:
EQUITY
Equity share capital	2,399.06	2,399.06	2,399.06	2,399.06
Other equity	9,975.00	8,219.57	9,425.33	9,030.98
Sub-total - Equity	12,374.06	10,618.63	11,824.39	11,430.04

LIABILITIES
Non-current liabilities
Financial liabilities:
Borrowings	655.74	385.13	845.68	392.03
Lease liability
Other financial liabilities
Provisions	104.90	72.59	104.90	70.83
Other non-current liabilities
Sub-total - Non-current liabilities
	760.64	457.72	950.58	462.86
Current liabilities
Financial liabilities:
Borrowings	9,648.73	5,705.95	8,664.53	6,145.03
Current maturities of long term
borrowings	316.81	502.33	228.66	419.85
Lease liability
Trade payables:	4,726.74	5,110.13	7,071.18	9,718.61
Due to others
Other financial liabilities	2,047.87	3,346.17	2,047.87	2,391.48
Other current liabilities	2,693.28	1,117.36	554.70	1,423.01
Provisions	124.91	177.05	124.91	741.51
Current tax liabilities(net)	314.02	550.98	314.02	221.55
Sub-total - Current liabilities	19,872.36	16,509.97	19,005.86	21,061.02
				Liabilities associated with the group(s) of assets classified as held for sale
TOTAL EQUITY AND LIABILITIES	33,007.52	27,586.33	31,780.84	32,953.93

In Terms of our report of even date annexed

NDJECTS for SARC & Associates Fr. Parvathi Deni & ASSO Chartered Accountants FRN: 006085N VISACRAPATNAH OHA Chandra Sekhar Akula (G. Radhakrishna) G.Parvathi Devi ္တ Partner Managing DirectorDIN: 00073080 Whole Time Director lapatna Membership No. 206704UDIN: 21206 784 AAAAB ASAO ACC DIN: 00094961 Deepita Rates $\epsilon$ Dt: 12-02-2021 Deepika Rathi R.JAYACHANDRAN Visakhapatnam CFO Company Secretary

Notes: The above Unaudited Financial statements for the 3rd Qtr ended December 31st 2020 have been reviewed and recommended by the Audit committee at its meeting held on Febraury 12, 2021. The Statutory Auditor has given $\mathbf{1}$ their Limited review report on the Un Audited Financial results for the 3rd Qtr ended December 31st 2021 which was reviewed by the audit committee and the board on February 12, 2021.

There is a common CODM assesses the internal reports of all the projects that the company is undertaking and accordingly the resource allocation and the key decisions are being handled. Also that there is a commonality involved in all the projects that the company is undertaking with respect to the nature of the work, technicality $\overline{\phantom{a}}$ involved, expertise etc., In view of the same, no separate reportable segments are identified by the Management for the purpose of reporting in the Financial statements.

3 The mandatory requirement of implantation of Ind AS is made applicable to company from the Financial year 2020-21 since the Company is upgraded to Main board in NSE and the exemption from application Ind AS is no longer available. In view of this, this is to state that the unaudited results for the Quarter ending 31st Dec 2019 are given as comparatives.

4 Impact of COVID,

The company had a Target of achieving a turnover of Rs 220 Cr for 3rd Qtr ended 31-12-2020, however due to unprecedented attack of pandemic since Mar-2020, and the resultants impediments on account of sourcing of materials, labour turnover etc., the Company has suffered a reduction to the tune of Rs 50 Cr. A further reduction in Turnover to the Tune of Rs 50 Cr was suffered on the account for want of credit limits. The company is taking all out efforts to partly compensate the above short falls.

5 Resumption of work of Rural Electrification at Puynnl

The company had taken up a work of Rural Electrification as a part of its diversification in the year 2015. After completion of the work to the tune of Rs 95 cr out of total Rs 120 cr, the work got terminated for reasons beyond the control of the company. The matter went for litigations and Arbitration in the year 2018. Subsequently conciliation proceedings were initiated during 2019.As a part of conciliation the company had with drawn the written petition it is filed before the honourable high court Allahabad, Lucknow bench and so was the arbitration The above were done with out prejudice to the companies rights interms of contract. The process of conciliation reached to a conclusion during Jul 2020 and the client had issued orders to the following effects. The contracts which were terminated were re-validated vide order dt:06-08-2020. Accordingly necessary reclassification of Assets were done.

a. Revalidated the contract which was terminated vide there order dt: 10-04-2018.

b. Extention of time on the contract was granted upto 31-12-2020.

c. The work was resumed and has been successfully completed.

6 Other Income

Other Income Consist of Interest on FDR's

(vi) Condensed statement of Consolidated cash flows as per Regulation 33(3)(g) of the SEBI (Listing Obligations and

Particulars	For the 3rd QtrEndedDec 31, 2020[Un Audited]	For the 3rd QtrEndedDec 31, 2019[Un Audited]
Cash flows from Operating activities
Profit before tax	831.01	1,518.92
Non-cash adjustment to reconcile profit before tax to net cash flows
Depreciation	515.45	373.11
Provision/(reversal) for retirement benefits (net)
Loss/(Profit) on sale of fixed assets
Loss/(Profit) from Joint Venture		$-7.11$
Interest expense	685.74	712.83
Interest income	$-144.71$	$-129.66$
Operating profit before working capital changes	1,887.49	2,468.09
Changes in working capital:
Adjustments for (increase) / decrease in operating liabilities:
Increase/(Decrease) in Trade payables	$-826.59$	4,336.56
Increase/(Decrease) in Long-term Provisions	32.31	$-1.41$
Increase/(Decrease) in Short -term Provisions	300.57	411.85
Increase/(Decrease) in /Other current liabilities	3,427.82	$-81.63$
Adjustments for (increase) / decrease in operating assets:
Decrease/(Increase) in Trade receivables	1,406.30	$-1,645.40$
Decrease/(Increase) in Inventories	$-5,930.54$	$-1,552.60$
Decrease/(Increase) in Short-term loans and advances	$-1,206.54$	$-742.87$
Decrease/(Increase) in Other current assets	46.58	$-656.44$
Cash generated from / (used in) operations	$-862.59$	2,536.16
Less: Income tax paid	118.01	547.41
Net cash flow from (used in) operating activities (A)	$-980.60$	1,988.75
Cash flows from Investing activities
Purchase of fixed assets, including intangible assets, CWIP and
capital advances	$-2,131.60$	$-820.92$
CWIP	2,105.89	$-392.01$
Profit/(Loss) from Joint Venture
Investment in Joint Venture
Proceeds from sale of fixed assets
Bank balances not considered as cash and cash equivalents	98.97	405.14
Interest received	144.71	129.66
Net cash used in investing activities (B)	217.98	$-678.13$
Cash flows from Financing activities
Proceeds from (repayment of) long term borrowings	270.61	$-443.30$
Proceeds from (repayment of) short term borrowings	17.85	468.12
Dividend(Interim) Paid during the year (Incl Dividend dist tax)	527.28
Interest paid	$-685.74$	$-712.83$
Net cash flow from financing activities (C)	129.99	$-688.02$
Net increase/(decrease) in Cash and Cash Equivalents $(A + B + C)$	$-632.63$	622.60
Cash and cash equivalents at the beginning of the year	679.63	57.03
Cash and cash equivalents at the end of the year	47.00	679.63

Note: The figures have been regrouped / rearranged, wherever considered necessary, for comparision purposes.

In Terms of our report of even date annexed

for SARC & Associates Chartered Accountants FRN: 006085N

$\lambda$

Chandra Sekhar Akula Partner Membership No. 206704UDIN: 2120 67 04 AAAA GX 4540

Dt: 12-02-2021 Visakhanatnam

. Radhakrishna) maging Director DIN: 00073080

for and on behalf of board of directors of

RKEC Projects Ltd

ADJECTS

Sakliapatnan

ē

G. Paristi Den

G.Parvathi Devi Whole Time Director DIN: 00094961

Deepika Rathi

Deenika Rathi

R Iavachandran