Servotech Renewable Power System Limited — Annual Report 2021

Jul 6, 2021

6th July, 2021

To,

National Stock Exchange of India Limited Exchange Plaza, NSE Building, Bandra Kurla Complex, Bandra East, Mumbai-400 051

Trading Symbol: SERVOTECH

Sub.: Re.: Clarification for Financial results – SERVOTECH

Dear Sir,

We write in response to the clarification received as per captioned subject, in this connection, we would like to inform you that we enclose the revised Audited Standalone Financial Results of the Company for the halfyear and year ended 31st March, 2021 along with statement of Assets and Liabilities and Cash Flow Statement of the Company in the prescribed format.

Kindly take the above information on record and oblige.

Thanking You,

FOR SERVOTECH POWER SYSTEMS LIMITED

RAMAN BHATIA MANAGING DIRECTOR DIN.: 00153827 RAMAN BHATIA Digitally signed by RAMAN BHATIA Date: 2021.07.06 10:23:30 +05'30'

Servotech Power Systems Limited

CIN : L31200DL2004PLC129379

REGISTERED OFFICE: 806, 8 thFloor, Crown Heights, Hotel Crown Plaza,Sector-10, Rohini, New Delhi-110085 PLANTAND R&D :76A,Sector-57, Kundli IndustrialArea, Sonepat, Haryana-131028 Tel No : 011-41183117,• Sales: +91 9717691800,• Email :servotech@servotechindia.com ,•Website: www.servotech.in

30th June, 2021

To,

National Stock Exchange of India Limited Exchange Plaza, NSE Building, Bandra Kurla Complex, Bandra East, Mumbai-400 051

Trading Symbol: SERVOTECH

Sub.: Outcome of Board Meeting

The Board of Directors of Servotech Power Systems Limited, upon recommendation of its Committees, at its meeting held on 30th June 2021, which commenced at 11.00 a.m. and concluded at 11:30 p.m., interalia considered and approved the following:

• 1. Audited Standalone Financial Results of the Company for the half-year and year ended 31st March, 2021 along with statement of Assets and Liabilities and Cash Flow Statement of the Company in the prescribed format.
• 1. Auditors' Auditors' Report issued by M/s. Gupta Jalan & Associates., Chartered Accountants on Standalone financial Results of the Company for the half-year and financial year ended 31" March, 2021;
• 1. Statement in the form of declaration Regulation 33(3)(d) of SEBI (LODR) Regulations, 2015that the report of Auditors is with unmodified opinion with respect to Audited Financial Results of the Company for the half-year and financial year ended 31st March, 2021.

Kindly take the above information on record and oblige.

Thanking You,

FOR SERVOTECH POWER SYSTEMS LIMITED

RAMAN BHATIA Digitally signed by RAMAN BHATIA Date: 2021.07.06 10:12:22 +05'30'

RAMAN BHATIA MANAGING DIRECTOR DIN.: 00153827

Encl.: as above

Servotech Power Systems Limited

CIN : L31200DL2004PLC129379

REGISTERED OFFICE: 806, 8 thFloor, Crown Heights, Hotel Crown Plaza,Sector-10, Rohini, New Delhi-110085 PLANTAND R&D :76A,Sector-57, Kundli IndustrialArea, Sonepat, Haryana-131028 Tel No : 011-41183117,• Sales: +91 9717691800,• Email :servotech@servotechindia.com ,•Website: www.servotech.in

SERVOTECH POWER SYSTEMS LIMITED Registered Office: 806, 8th Floor, Crown Heights, Crown Plaza, Sector-10, Rohini, New Delhi-110085 CIN:- L31200DL2004PLC129379, Email: investor.relations@servotechindia.com

STATEMENT OF AUDITED FINANCIAL RESULTS FOR THE HALF‐YEAR AND YEAR ENDED 31ST MARCH, 2021

Sl. No.	PARTICULARS	Half Year Ended			Financial Year ended
		31 March 2021	30 September 2020	31 March 2020		31 March 2021 31 March 2020
		Audited	Un‐Audited	Audited	Audited	Audited
I.	Revenue from operations		7,091.61 1,708.32 7,136.98 8,799.93 8,744.16
II.	Other income		35.49 54.68 35.67 90.17 53.14
III.	Total Revenue (I + II)		7,127.10 1,763.00 7,172.65 8,890.10 8,797.30
	Expenses:	‐
IV.	Cost of materials consumed		6,329.78 1,437.22 5,931.96 7,767.00 7,044.77
	Purchase of Stock‐in‐Trade		‐ ‐	‐		‐
	Changes in inventories of finished goods		‐300.76 ‐34.00 201.77 ‐334.76 ‐98.85
	Employee benefits expense		233.56 166.98 142.09 400.54 461.36
	Finance costs		124.31 152.72 162.90 277.03 277.36
	Depreciation and amortisation expense		54.89 41.25 46.79 96.14 89.15
	Other expenses		355.99 182.71 583.82 538.70 900.92
	Total expenses		6,797.77 1,946.88 7,069.33 8,744.65 8,674.71
V.	Profit before exceptional and extraordinary		329.33 ‐183.88 103.32 145.45 122.59
VI.	Exceptional items	23.25	‐ ‐ 23.25 8.35
VII.	Profit before extraordinary items and tax (V ‐		306.08 ‐183.88 103.32 122.20 114.24
VIII.	Extraordinary items		‐ ‐ ‐			‐
IX.	Profit before tax (VII‐ VIII)		183.88 ‐183.88 103.32			114.24
X.	Tax expense:	‐
	(1) Current tax		30.75 ‐ 24.70 30.75 29.70
	(2) Deferred tax		‐ ‐ 0.44			0.44
	(3) CSR Expenses		‐ ‐
	(4) Income Tax of Earlier Years		‐0.76 ‐		‐0.76
XI.	Profit (Loss) for the period from continuing	92.21	‐ 78.18 92.21 81.38
XII.	Profit/(loss) from discontinuing operations		‐ ‐ ‐			‐
XIII.	Tax expense of discontinuing operations		‐ ‐ ‐			‐
XIV.	Profit/(loss) from Discontinuing operations		‐ ‐ ‐			‐
XV.	Profit (Loss) for the period (XI + XIV)		276.09 ‐183.88 78.18 92.21 81.38
	Share of Profit /(Loss) of associates		‐ ‐ ‐			‐
	Minority Interest		‐ ‐ ‐			‐
	Net Profit/ (Loss) for the Period		276.09 ‐183.88 78.18 92.21 81.38
XVI.	Details of Equity Share Capital	‐
	Paid‐up Equity Share Capital		1,831.04 1,831.04 1,831.04 1,831.04 1,831.04
	Face Value		10.00 10.00 10.00 10.00 10.00
	Reserves excluding Revaluation Reserves as		‐ ‐ ‐			‐
	Earnings per equity share:	‐
XVI.	(1) Basic		1.50 ‐1.00 0.43 0.50 0.44
	(2) Diluted		1.50 ‐1.00 0.43 0.50 0.44

For and on behalf of board of Directors Servotech power Systems limited

Raman Bhatia Managing Director DIN: '00153827 RAMAN BHATIA Digitally signed by RAMAN BHATIA Date: 2021.07.06 10:14:42 +05'30'

Date: 30.06.2021 Place: New Delhi

NOTES

• 1. The above financial results were reviewed by the Audit Committee and approved by the Board of Directors i n their respective Meeting held on 30th June, 2021. The Statutory Auditors have conducted "Audit" of these results in terms of Regulation 33 f the Securities and Exchange Board of India (Listing Obligations & Disclosure Requirements) Regulations, 2015.
• 1. The Company has received Nil requests/grievance s from the shareholders during the qua r te r ended 31st March, 2021 and all of them have been resolved and there are no pending requests/grievances.
• 1. Liability for deferred tax is recognized while deferred tax assets are not recognized in accordance with Para 17 of Accounting Standard-22.
• 1. Depreciation is calculated as per Companies Act, 2013 for the said period.
• 1. Diluted EPS is ignored as it is anti-dilutive.
• 1. These standalone financial results are available at the Company's website viz. www.servotechi ndia.com and on the websites of NSE (www.nseindia.com).
• 1. The Company operates in the single segment an there are no reportable segments as required under Accounting Standard 17 issued by Institute of Chartered Accountants of India. Therefore, segmented disclosures are not applicable.
• 1. The financial results for the year ended 31st March, 2021 have been audited by statutory auditor of the Company. The statutory auditor have given an unmodified opinion.
• 1. Previous year/half-year figures have been r egrouped/rearranged/reclassified wherever found necessary.
• 1. The Figures of the half year ended on 31st March 2021 are the balancing figures between Audited figures for the year ended on 31st March 2021 year to date figures upto half year ended on September 2020,

For and on behalf of Servotech Power Systems Limited

RAMAN BHATIA Digitally signed by RAMAN BHATIA Date: 2021.07.06 10:13:01 +05'30'

Raman Bhatia Managing Director DIN: 00153827

Date: 30.06.2021 Place New Delhi

		Asat	Asat
Sl.No.	Particulars	31March2021	31March2020
		Audited	Audited
I	EQUITYANDLIABILITIES
	Shareholders'funds
1	(a)Sharecapital	1,831.04	1,831.04
	(b)Reservesandsurplus	1,944.68	1,852.47
	(c)Moneyreceivedagainstsharewarrants		‐
	TotalShareholder'sFund	3,775.72	3,683.52
2	Shareapplicationmoneypendingallotment		‐
	DefferedGovernmentGrants		‐
	MinorityInterest		‐
	Non‐currentliabilities
	(a)Long‐termborrowings	503.11	482.97
	(b)Deferredtaxliabilities(Net)	11.07	11.07
3	(c)ForeignCurrencyMonitoryitemtransaction
	DiffrenceLiabilityAccount		‐
	(d)OtherLongtermliabilities	1.00	0.80
	(e)Long‐termprovisions		227.47
	TotalNonCurrentLiabilities	515.18	722.31
	Currentliabilities
	(a)Short‐termborrowings	2,011.66	1,387.35
	(b)Tradepayables		1,722.78
	(A)Totaloutstandingduesofmicroenterprisesand		175.31
4	smallenterprises;	56.49
	(B)totaloutstandingduesofcreditorsotherthan		1,547.47
	microenterprisesandsmallenterprises.	2,287.24
	(c)Othercurrentliabilities	813.67	374.22
	(d)Short‐termprovisions	30.75	29.70
	TotalCurrentLiabilities	5,199.81	3,514.05
	TotalEquityandLiability	9,490.71	7,919.87

STATEMENT OF AUDITED ASSETS AND LIABILITIES

II.	ASSETS
	Non‐currentassets
	(a)Fixedassets
	(i)Tangibleassets	739.45	842.70
	ProducingProperties		‐
	(ii)Intangibleassets		‐
	PreproducingProperties		‐
	(iii)TangibleAssetCapitalwork‐in‐progress		‐
	(iv)Intangibleassetsunderdevelopmentorwork‐in‐
1	progress		‐
	TotalFixedAssets	739.45	842.70
	(a)Non‐currentinvestments		‐
	(b)Deferredtaxassets(net)		‐
	(c)ForeignCurrencyMonitoryitemtransaction
	DiffrenceLiabilityAccount		‐
	(d)Long‐termloansandadvances	46.14	106.91
	(e)Othernon‐currentassets	1,088.93	855.88
	TotalNonCurrentAsset	1,135.07	1,805.49
	Currentassets
	(a)Currentinvestments		‐
	(b)Inventories	1,525.88	909.34
2	(c)Tradereceivables	5,057.76	4,325.86
	(d)Cashandcashequivalents	339.34	314.37
	(e)BankBalanceandOtherthanCash		‐
	(f)Short‐termloansandadvances	693.21	564.79
	(e)Othercurrentassets		‐
	TotalCurrentAssets	7,616.19	6,114.37
	TotalAsset	9,490.71	7,919.87

For and on behalf of board of Directors ‐ Servotech power Systems limited

RAMAN BHATIA Digitally signed by RAMAN BHATIA Date: 2021.07.06 10:14:10 +05'30'

Raman Bhatia Managing Director DIN: '00153827

Date: 30.06.2021 Place: New Delhi

SERVOTECH POWER SYSTEMS LIMITED

CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2021

PARTICULARS‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐	FOR THE YEARENDED31st MARCH 2021‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐	FOR THE YEAR ENDED31st MARCH 2020‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
A. CASH FLOW FROM OPERATING ACTIVITIES
Net Profit before tax	12,219,989	11,424,219
Adjustments For :
Depreciation and amortisation expense	9,614,353	8,914,793
Interest expense	27,703,233	27,736,456
Interest income	(1,310,603)	(1,679,601)
Loss/ (profit) on sale of fixed assets	(222,324)	51,420
Corporate Social responsibility	‐	(51,000)
Operating Profit before working capital Changes	48,004,648	46,396,288
Adjustments For :
(Increase)/ Decrease in sundry debtors	(73,189,435)	(32,755,130)
(Increase)/ Decrease in inventories	(61,653,521)	25,179,029
(Increase)/Decrease in loans & advances and other current assets	(12,841,119)	(15,205,356)
Increase/ (Decrease) in sundry creditors and other liabilities	87,394,911	7,004,969
Cash generated From operating activities	(12,284,516)	30,619,800
Less: Direct Tax Paid	2,999,192	3,191,068
Net cash generated from/ (used in) operating activities	(15,283,707)	27,428,732
B. CASH FLOW FROM INVESTING ACTIVITIES
Purchase of fixed assets	(1,508,533)	(11,773,125)
Proceeds from sales of fixed assets	2,441,519	100,000
Interest received	1,310,603	1,679,601
Decrease/ (Increase) in Long Term Loan & Advances	6,076,705	(5,710,244)
Decrease/ (Increase) in Other non current assets	(23,305,722)	(3,084,273)
Net Cash Generated from (used in) investing activities	(14,985,428)	(18,788,041)
C. CASH FLOW FROM FINANCING ACTIVITIES
Issue of Share Capital / Share Application Money	‐	‐
Share Premium Account including reserves	‐	‐
Proceeds from Secured & Unsecured loans	62,431,061	46,881,547
Interest / Financial Charges	(27,703,233)	(27,736,456)
Increase/(Decrease) in Long Term Liabilities	(1,962,069)	(25,416,528)
Net Cash Generated from (used in) Financing Activities	32,765,759	(6,271,437)
I Total increase (decrease) in cash and cash equivalents during the year(A+B+C)	2,496,624	2,369,254
II Cash and cash equivalents at beginning of year	31,437,424	29,068,170
III Cash and cash equivalents as at end of the year (I+II)	33,934,048	31,437,424

As per our report annexed for and on behalf of the Board

Raman Bhatia (Managing Director) DIN‐00153827 RAMAN BHATIA Digitally signed by RAMAN BHATIA Date: 2021.07.06 10:15:21 +05'30'

GUPTA JALAN & ASSOCIATES

CHARTERED ACCOUNTANTS

INDEPENDENT AUDITORS REPORT ON HALF YEAR AND YEAR ENDED FINANCIAL RESULTS OF SERVOTECH POWER SYSTEMS LIMITED AS ON 31ST MARCH, 2021 PURSUANT TO THE REGULATION 33 OF THE SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015

To Board of Directors Servotech Power Systems Limited

Report on audit of the Standalone Financial Results

OPINION

We have audited the accompanying standalone Financial results of Servotech Power Systems Limited. (hereinafter referred to as the 'Company') for the half year and year ended 31st March, 2021, attached herewith, being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI ( Listing obligations and Disclosure Requirement) Regulations, 2015 as amended ("Listing Regulations").

In our opinion and to the best of our information and according to the explanations given to us this financial results:

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 recognition and measurement principles laid down in the applicable accounting standards and other accounting principles generally accepted in India, of the Net profit and other financial information for the half year and the finacial year ended 31st March, 2021.

BASIS FOR OPINION

We conducted our audit in accordance with the Standard 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 together with the ethical requirements that are relevant to our audit of the Financial results under the provisions of the Companies Act, 2013 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 we have obtained is sufficient and appropriate to provide a basis for our opinion.

The statement includes the results of the half year ended March 31, 2021 being the balancing figure between audited figures in respect of the full financial year.

405, Crown Heights (Hotel Crowne Plaza Complex), Plot No. 3B/1, Twin District Centre, Sector-10, Rohini, Delhi-110 085 epsite: 22 Searnaialan.com Ph.: 011-27043878, 27053878, E-mail: mjalan@gmail.comp

GUPTA JALAN & ASSOCIATES

CHARTERED ACCOUNTANTS

MANAGEMENT RESPONSIBILITIES FOR THE STANDALONE FINANCIAL RESULTS

These half yearly financial results as well as the year to date financial results have been prepared on the basis of standalone annual financial statements. The Board of Directors of the Company are responsible for the preparation and presentation of the statements that give a true and fair view of the Net profit of the Company and other financial information in accordance with the applicable accounting \standards prescribed under Section 133 of the Act read with the relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with the Regulation 33 of the Listing Regulations.

This responsibilities 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 the appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial control that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial results that give a true and fair view and free from material misstatement, whether due to fraud or error.

In preparing the standalone financial results, 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 or cease operations or has no realistic alternative but to do so.

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

AUDITORS RESPONSIBILITY FOR THE AUDIT OF THE STANDALONE FINANCIAL RESULTS

Our objectives are to obtain reasonable assurance about whether the financial results 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of standalone financial results.

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

Identify and assess the risk of material misstatement of the standalone financial results, 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, misrepresentation, or the override of internal control.

405, Crown Heights (Hotel Crowne Plaza Complex), Plot No. 3B/1, Twin District Centre, Sector-10, Rohini, Delhi-110 085 Ph.: 011-27043878, 27053878, E-mail : mjalan@gma

GUPTA JALAN & ASSOCIATES

• Obtain an understanding JART-ERED AGGOUNTANTS udit in order to design audit $\bullet$ procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors.
• Evaluate the appropriateness and reasonableness of disclosures made by the Board of Directors in terms of the requirement specified under Regulation 33 of the Listing Regulations.
• Conclude on the appropriateness of the Board of Directors use of going concern basis of accounting and based on the audit evidence obtained whether a material uncertainty exists related to 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 statement 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 our future events or conditions may cause the company to cease or continue as a going concern.
• Evaluate the overall presentation, structure and content of the standalone financial results including the disclosure and whether the Standalone financial results represent 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 be reasonably be thought to bear on our independence and where applicable related safeguards.

Other Matter

The statement includes the results of the half year ended March 31, 2021 being the balancing figure between audited figures in respect of the full financial year 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.

Our opinion on above matter is not modified.

For Gupta Jalan and Associates Chartered Accountants FRN.: 003721N

CA Ram Niwas Jalan Membership No.- 082389 UDIN: - 21082389AAAAEI1312 Place: Delhi The 30th Day of JY M 2021

405, Crown Heights (Hotel Crowne Plaza Complex), Plot No. 3B/1, Twin District Centre, Sector-10, Rohini, Delhi-110 085 Ph.: 011-27043878, 27053878, E-mail: mjalay@ganaih@m. Bebsite development

30th June, 2021

To. National Stock Exchange of India Limited Exchange Plaza, NSE Building, BandraKurla Complex, Bandra East, Mumbai-400 051

Trading Symbol: SERVOTECH

Sub.: Declaration pursuant to Regulation 33(3){d) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Dear Sir,

It is hereby declared and confirmed that, the Statutory Auditors of the Company i.e. Gupta Jalan& Associates, Chartered Accountants (Firm Registration No.003721N) have issued Audit Reports with unmodified opinion in respect of the Audit Financial Results of the Company for the half-year and year ended 31stMarch, 2021.

This declaration is given in compliance to Regulation 33(3)(d) of the SEBI (Listing Obligations and disclosures Requirements) Regulations, 2015, as amended by SEBI (Listing Obligations and disclosures Requirements)(Amendment) Regulations, 2016, vide notification No. SEBI/LAD-NRO/GN/2016-17/001 dated May 25, 2016 and Circular No. CIR/CFD/CMD/56/2016 dated May 27, 2016.

Kindly take the same on record and oblige.

Kindly take the above information on record and oblige.

Thanking You,

FOR SERVOTECH POWER SYSTEMS LIMITED

Servotech Power Systems Limited

CIN: L31200DL2004PLC129379

REGISTERED OFFICE: 806, 8th Floor, Crown Heights Buildings, Near Hotel Crown Plaza, Sector-10, Rohini, New Delhi - 110085 PLANT AND R&D: 76A, Sector-57, Kundli Industrial Area, Sonepat, Haryana- 131028 Tel No: 011-41183117, Sales: +91 9717691800, CEmail: servotech@servotechindia.com, Website: www.servotech.in