Shanthi Gears Ltd. — Interim / Quarterly Report 2022

Jul 21, 2021

Regd. Office: Phone: +91-422-4545745 muruga a 304-A, Trichy Road, Fax : +91-422-4545700 g PP Singanallur E-mail : info@shanthigears.murugappa.com Coimbatore - 641 005 Website : www.shanthigears.com CIN : L29130TZ1972PLC000649 GST : 33AADCS0692L1Z7

July 21, 2021

National Stock Exchange of India Ltd, BSE Ltd, Exchange Plaza, Sth Floor, 1st Floor, oe Plot No. C/1, G Block, New Trading Ring, Rotunda Building, Bandra-Kurla Complex, P J Towers, Dalal Street, Bandra (E) Fort, Mumbai-400 051. Mumbai- 400 001.

Stock Code: SHANTIGEAR Stock Code: 522034

Through NEAPS / Through BSE Listing Centre

Total 4 pages (including coveringletter)

Sub: Outcomeof Board Meeting

Further to ourletter dated 12July, 2021, we write to inform that at the meeting held today (21st July, 2021), the Board of Directors inter alia have approved the unaudited financial results of the Company for the first quarter ended 30th June, 2021 in the detailed format under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations") and Limited Review report of M/s. Deloitte Haskins & Sells, Chartered Accountant & Statutory Auditor of the Company. The sameis enclosed for your records and uploading in your website. A copy of the same will be uploaded in the Company's website www.shanthigears.com. An extract of the aforesaid financial results in the manner prescribed under the SEBI Listing Regulations will be published in English and Tamil newspapers within the time stipulated.

A copy of the press release made with regard to the un-audited financial results for the first quarter ended 30June,2021 is further enclosed.

For your information, the Board Meeting commenced at 11.30 A.M. and concluded at 1.25 P.M.

Please take the above on yourrecord.

Thanking you,

Yours faithfully, For SHANTHI GEARS LIMITED

C. Subramaniam

CompanySecretary

IRISS— Works: "C" Unit, Avinashi Road, Muthugounden Pudur Post, Coimbatore - 641 402, India. oo Tel : +91 422 4545745 / Fax : +91 422 4545700 / Mobile : +91 96262 60500 (8 Lines) OCTETCLE

DearSir,

Shanthi Gears Limited CIN: L29130T21972PLC000649 Regd. Office: 304-A, Trichy Road, Singanallur, Coimbatore-641005 | Tel: +91-422-4545745 | Fax: +91-422-4545700 Email: cs@shanthigears.murugappa.com | Website:www.shanthigears.com Statement of Unaudited Financial Results for the Quarter ended 30 June 2021

	GearsShanthiCIN: L29130T21972PLC000649	Limited
	Regd.Singanallur, Coimbatore-641005Office: 304-A, Trichy Road,Email: cs@shanthigears.murugappa.com		Tel: +91-422-4545745 Website:www.shanthigears.com	Fax: +91-422-4545700
	Statementof UnauditedFinancial Results	for the Quarter	endedJune30	2021
	Financial Information				% Crores
SI No	Particulars	30.06.2021	rter ended31.03.2021	30.06.2020	endedYear31.03.2021
1	{Income	Unaudited	Refer Note4	Unaudited	Audited
	Revenuefrom	66.97	71.87	25.13	215.53
	ncomee	2.1069.07	74.74	1.8026.93	223.81
		30.14	41.85	12.91	107.65
	progress	0.03	(8.16)	(1.10)	(4.12
		13,24	2.30	11,28
	expense	2.5911.57	414.	2.086.30	8,38.43
		67.5711.60	62.4912.25	31.474,54	197.7426.07
		2.70	1.67		4.17
		0,22	1.16		1.73
	expenseotaafter taxProfit / (Loss) for the	2.928.58	2.839.42		5.9020.17
	not toor lossto
	on
	obligation
	Incometax relating to item that will not beprofit or loss
	Lossota
	ShareaceValueof &1 eachPaid
	eserveseSharePerof FaceEarnings=value
	annualisedfor the

Notes

1. The above Financial Results were reviewed by the Audit Committee and approved by the Board of Directors of the Companyat the meeting held on 21 July 2021.

2. The above results have been subjected to Limited Review by Statutory Auditors.

3. The Company's main business is manufacture of Gears and Gear Products.There are no separate reportable segments as per Ind AS 108 - Operating Segments

4. The figures of the quarter ended 31 March 2021 are the balancing figures between the audited figures ofthefull financial year ended 31 March 2021 and the published year to date figures upto third quarter ended 31 December 2020.

5. The outbreak of COVID-19 pandemic has affected the Company's regular operations. Accordingly, the Company has considered the possible effects that may result from the pandemic on the carrying amountsof property, plant and equipment, investments, inventories, receivables and other current assets. In developing the assumptions relating to the possible future uncertainties in the global economic conditions becauseof this pandemic, the Company,as at the date of approval of these financial results has used internal and external information which are relevant in determining the expected future performance of the Company. The Company has evaluatedits liquidity position, recoverability of such assets and based on current estimates expects the carrying amount of these assets will be recovered. The impact of COVID-19 on the Company's financial results may differ from that estimates as at the date of approval of these financial results.

6. The above financial results are also available on our website www.shanthigears.com

7. Previous period figures have been regrouped wherever necessary.

==> For Shanthi Gears Limited

DIN: 08004843

D Z Chartered Accountants e Ol e Time Square, 7th Floor Haskins & Sells Coimbatore - 641 018

Door No. 62, ATT. Colony Road Tamil Nadu, India

Tel: +91 422 664 6500

INDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEW OF INTERIM FINANCIAL RESULTS

TO THE BOARDOF DIRECTORS OF SHANTHI GEARS LIMITED

• 1. We have reviewed the accompanying Statement of Unaudited Financial Results of SHANTHI GEARS LIMITED ("the Company") for the quarter ended June 30, 2021 ("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.
• This Statement, which is the responsibility of the Company's Management and approved by the Company's Board of Directors, has been prepared in accordance with the recognition and measurementprinciples 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. Our responsibility is to express a conclusion on the Statement based on our review.
• 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. A review of interim financial information consists of making inquiries, primarily of the Company's personnel 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 specified under section 143(10) of the Companies Act, 2013 and consequently does not enable us to obtain assurance that we would become awareofall significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
• Based on our review conducted 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 Standards and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, including the manner in whichit is to be disclosed, or that it contains any material misstatement.

For Deloitte Haskins & Sells Chartered Accountants (Firm's Registration No. 008072S)

Cin 641 018

COIMBATORE 5, Hirano

Krishna Prakash E Partner (Membership No. 216015) UDIN: 21216015AAAABO7169

Place : Coimbatore Date : July 21, 2021

Financial Results of Shanthi Gears Limited

Revenue at ₹ 67 Crs and PBT at ₹ 11.5 Crs in Q1

The Board of Directors of Shanthi Gears Limited (SGL) a subsidiary of Tube Investments of India Limited (TII), met today and approved the financial results for the quarter ended 30th June 2021.

Highlights

The key business and financial metrics remained strong during the quarter despite disruptions in operations due to 2nd wave of COVID 19 pandemic.

• Revenue of ₹ 67 Crs in the quarter as against ₹ 25.1 Crs in Q1 of previous year.
• The Profit before tax for the quarter was ₹ 11.5 Crs as against (₹ 4.5 Crs) in Q1 of previous year.
• Focus on cost optimisation enabled to sustain the Return on average Invested Capital (ROIC) at 29% during Q1.

During the quarter the Company booked orders for ₹ 84 Crores and Pending order book as on 30th June 2021 was ₹ 235 Crores as against ₹ 164 Crores in corresponding quarter of the previous year.

In view of the widespread resurgence of the COVID -19, the Government of Tamil Nadu had enforced a total lockdown in the State from 10th May, 2021. Consequent thereto, there was a disruption in our operations due to shortage of manpower and receipt of Raw Materials during the aforesaid period.