Smartlink Holdings Limited — Interim / Quarterly Report 2022

Aug 12, 2021

August 12, 2021

To,

Mr. Hari K - Asst. Vice President National Stock Exchange of India Ltd "Exchange Plaza", C-1, Block Q, Bandra - Kurla Complex, Bandra (E), Mumbai - 400 051

Scrip Gode: i .,-,

To, The Manager - Corporate The Corporate Relationship Department BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai 400 001

l�SE: 532419 � . $

Sub: Outcome of the Board Meetin& :.r . . '.k 1r ,

Dear Sir,

Pursuant to Regulation 30 and 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, we would like to inform you that the Board ofDirectors of the Company at its meeting held today i.e. on August 12, 2021 have inter- alia considered and approved the Unaudited Standalone & Consolidated Financial Results of the Company for the quarter ended June 30, 2021.

The copy of the Unaudited Financial Results (Standalone & Consolidated) along with the Limited Review Report by the Auditors is enclosed herewith for your ready reference.

The Board meeting commenced at 12 :00 hours and concluded at 12 :20 hours.

Request you to kindly take note of the same and acknowledge the receipt.

Thanking You,

Yours Faithfully,

For SMARTLINK HOLDINGS LIMITED

tl1;VW'JL,��

URJIT A DAMLE COMPANY SECRETARY

Rnn,<.t .. n>ri Office: L-7, Verna Industrial Estate, Verna, Saicete, GA, 403722, IN I Land Phone: +91 832 2885400 I Fax: +91832 2783395 Corporate Office: 215 Atrium, 2nd Floor, B-Wing, Marriott Andheri-l<urla Road, Andheri (E), Mumbai - 400 093, INDIA Land Phone: +91 22 3061 6666 / 2652 6696

SMARTLINKHOLDINGS LIMITED

CIN: L67100GA1993PLC001341

Registered Office: L·7, Verna Industrial Estate, Verna, Salcete, Goa· 403722

Website: www.smartllnkholdings.com

	Statementof UnauditedStandaloneFinancialResultsfor thet QuarterendedJune30 , zoz 1
				(Rs In Lakhs
			Quart•rended			Year 1ndtd
Sr.No.		Particulars	June30,2021	March32021	Junt30,2020	March312021
			(Unaudited)			(Audited)
				Referlote 6
		Revenuefromoperations
	a)	InterestIncome	114.09	117.92	118.58	472.00
	b)	RentalIncome	27.72	27.77	47.51	140.36
	c)	Fees and commissionIncome	2.33	1.46	1.47	5.89
	d)	Net gain on fair valuechanges	118.26	(:)	422.40	875.15
		TotalRevenuefromoperations	262.40	131.82	589.96	,4
	e)	OtherIncome	0.04	0.84	12.29	38.05
		TotalIncome	262.44	132.66	102
						,,
2		Expenses
	a)	Financecosts	4.23	4.18	7.14	26.15
	b)	Employee benefitsexpense	68.75	82.58	66.56	283.50
	c)	Depreciation and amortization	27.31	27.03	38.49	137.19
	d)	Otherexpenses	102.26	129.21	73.69	393.48
		Totalexpenses	202.55	243.00	185.88
3		ProfitI (Loss) beforeExceptionalItemsand tax(1·2)
			59.89	(110.34)	416.37	691.13
4		ExceptionalItems
5		ProfitI (Loss) before(3-4)tax	59.89	(110.34)	416.37	691.13
6		Tax expense
	a)	Currenttax	45.18	(34.01)	115.62	80.48
	b)	Deferredtax charge I (credit)	(28.85)	9.69	9.60	100.77
	c)	Tax adjustmentsof earlieryears		7.93		7.93
		Totaltaxexpense	16.33	(16.39)	125.22	189.18
7		ProfitI (Loss) for theperiod(5-6)	43.56	(93.95)	291.15	501.95
8		OtherComprehensiveIncome
		A) Itemsthatwill notbe reclassifiedto profit or loss
		• Re-measurementgains I (losses) on definedbenefitplans	2.32	13.37	(1.37)	9.28
		Incometax relating to itemsthatwill not be•	(0.58)	(3.37)	0.34	(2.34)
		reclassifiedto profit or loss
		Subtotal(A)	1.74	10.00	(1.03)	6.94
		B) Itemsthatwill be reclassifiedto profit orloss
		Net fair valuegain/ (loss) on financialinstruments-	(1.13)	16.21	(5.73)	7.37
		Incometax relating to itemsthatwill be reclassified-	0.28	(4.07)	1.44	(1.85)
		to profit or loss
		Subtotal(B)	(0.85)	12.14	(4.29)	5.52
		TotalOtherComprehensiveincomefor theperiod (A+B)	0.89	22.14	(5.32)	12.46
9		TotalComprehensiveincomefor theperiod(7+8)	44.45
				(71.81)	285.83	514.41
10		Earning per share(Face valueof Rs. 2/ each)
		- Basic & Diluted(in Rs.)	0.36	(0.71)	2.19	3.77
		* Not annualised
		to the standaloneSee accompanyingfinancialnotes.Results.

SMARTLINKHOLDINGS LIMITED

NOTES TO THE UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTERENDED JUNE 30, 2021

• The above standalone financial results have been reviewed by the Audit Committee and approved by the Board of Directors at their r111,1c1t1ve on August 12, 2021. The Statutory Auditors have carried out a limited review of the standalone financial results and have thereon.
• 2 The Company operates in one primary segment only, t.e Investment activity and therefore Ind AS 108 Operatln1 S11ment not applicable.
• 3 Pursuant to the requisite approvals by the Board of Directors, the Shareholders and the Securities arid Board of India (SEBI),the Company 33,25,000 Equity Shares (aggregating up to 25% of the paid-up equfty share capital of the Company) at Rs. per to Rs. 3,159 the corresponding shares have been extinguished on May 27, 2021. Subsequent to the buy back the paid up equity shtm, of the Company has from Rs. 266.00 lakhs to Rs. 199. 50 lakhs.

4 The World Health Organization announced a global health emergency because of a new strain of ceronavtrus (°COVID·19")and classified Its outbreak pandemic on March 11, 2020. On March 24, 2020, the Indian government announced a strict 21·day lockdown across the country to contain the spread of tho virus. This pandemic and response thereon have impacted most of the industries. Consequent to the nationwide lock down on March 24, 2020, the Companyts operations were scaled down in compliance with applicable regulatory orders. Subsequenlty, durtna the year, the Company's operations have been sealed up tn a phased manner taking into account directives from various Government authorities. The impact on future operations would, to I lar1e extent, depend on how the pandemic further develops and it's resultant impact on the operations of the Company. The Company continues to monitor the sltuattcn and take appropriate action, as considered necessary in due compliance with the applicable regulations. The management has made an assessment of the impact of COVID·19 on the Company's operations, financial performance and position as at and for the Quarter ended June 30, 2021 and has concluded that there ts no impact which is required to be recognised in the financial results. Accordlnsly, no adjustments have been made to the financial results.

5 The Code on Social Security 2020 ('the Code') relating to employee benefits, during the employment and post-employment, has received Presidential assent on September 28, 2020. The Code has been publfshed in the Gazette of India. Further, the Ministry of Labour and Employment has released draft rules for the Code on November 13, 2020. However, the effective date from which the changes are applicable is yet to be notified and rules for quantifying the financial impact are also not yet issued.

The Company will assess the impact of the Code and will give appropriate fmpact fn the financial statements in the period In whtch, the Code becomes effective and the related rules to determine the financial impact are published.

• 6 The Figures for the quarter ended March 31, 2021 are balancing figures between the audited figures fn respect of the full financial year and the published unaudited year to date figures upto the third quarter of the financial year ended March 31, 2021.
• 7 The figures for the previous year/ periods have been reclassified/ regrouped wherever necessary to conform to current period presentation.

Place : Verna-Goa

Executive Chaf rman DIN : 00002013

Independent Auditor's Review Report on unaudited quarterly standalone financial results pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

The Board of Directors SMARTLINK HOLDINGS LIMITED

• 1. We have reviewed the accompanying statement of unaudited standalone financial results of Smartlink Holdings Limited ('the Company') for the quarter ended June 30, 2021 ('the Statement') attached herewith, being submitted by the Company pursuant to the requirements of Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended ('the Regulations').
• 1. This 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 Ind AS 34 'Interim Financial Reporting', prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other recognized accounting principles generally accepted in India. Our responsibility is to 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. This standard requires that we plan and perform the review to obtain moderate assurance as to whether standalone financial results are free of material misstatements. A review consists of making in qui rf es, 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. Based on our review conducted as 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 Ind AS 34, prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other recognized accounting principles generally accepted in India

Mumbai 400063, INDIA, Tel: +91 22 6831 1600 I Mumbai I Pune Head Office: 602, Floor 6, Raheja Titanium, Western Regd. No. 105047W I Ah I Bengaluru I

has not disclosed the information required to be disclosed in terms of the Regulations including manner in which it is to be disclosed, or that it contains any material misstatement.

1. We draw attention to Note 4 to the accompanying Statement, which describes the management's assessment of the impact of COVID-19 pandemic on the company's operations, financial performance and position as at and for the quarter ended June 30, 2021 and has concluded that there is no impact which is required to be recognized in the financial results. Accordingly, no adjustments have been made to financial results.

Our conclusion is not modified in respect of this matter.

For MSKA & Associates Chartered Accountants ICAI Firm Registration No.105047W

Darryl Frank Partner Membership No.: 104096 UDIN: 21104096AAAAKW9460

Place: Verna - Goa Date: August 12, 2021

SMARTLINK HOLDINGS LIMITED

CIN: L67100GA1993PLC001341

Registered Off ice

Website

	of ConsolidatedUnauditedFinancialResultsfor the Quarteranded30 , 2021JunestatemenrIn Lakhs except
Sr. No.		Particulars	June30,2021	March31,2021	June30,2020	March31,2021
			(Unaudited)	(Audited)	(Unaudited)	(Audited)
				Ref1rNote 7
		Revenuefrom
	a)	operationsInterestIncome
	b)	RentalIncome	122.6814.52	123.9614.57	127.3413.97	502.6756.53
	c)	Net gain on fair valuechanges	118.26	(15.32)	422.40	875.15
	d)	from contractsRevenuewithcustomer	1,317.92	1,167.86	1,083.99	5,592.56
		TotalRevenuefromoperations	1,573.38	1,291.07	1,647.70	7,0U,.91
	e)	OtherIncome	3.50	180.52	12.71	261.59
		TotalIncome	1,576.88	1,471.59	1,660.41	7,288.50
2		Expenses
	a)	Financecosts	13.87	14.80	53.08	122.70
		b) Cost of materialconsumed	351.24	113.09	138.47	673.59
	c)	Purchaseof Stock-in-trade	605.33	479.23	438.84	2,682.75
	d)	Decrease/(lncrease)in inventoriesof finishedgoods, work-in-progress
		and tradedgoods	(2.24)	118.50	154.04	374.76
	e)	Employee benefitsexpense	311.81	306.31	320.65	1,270.65
	f)	Depreciationand amortization	57.27	55.86	77.04	277.99
		g) Otherexpenses	220.31	261.55	182.15	976.73
		Totalexpenses	1,557.59	1,349.34	1,364.27	6,379.17
3		ProfitI (Loss) beforeExceptionalitemsand(1-2)tax	19.29	122.25	296.14	909.33
4		ExceptionalItems
5		ProfitI (Loss) before(3-4)tax	19.29	122.25	296.14	909.33
6		Tax expense
	a)	Currenttax	45.18	(34.01)	115.62	80.48
	b)	Deferredtax charge I (credit)	(50.40)	(172.92)	(3.18)	(201.97)
	c)	Tax adjustmentsof earlieryears		7.93		7.93
		Totaltaxexpense	(5.2.2.)	(199.00)	112.44	(113.56)
7		Profit
		I (Loss) for theperiod(5-6)	24.51	321.25	183.70	1,022.89
8		OtherComprehensiveIncome
		A) Itemsthatwill notbe reclassifiedto profit orloss
		Re-measurementgains I (losses) on defined-plansbenefit	2.32	31.46	(5.08)	16.21
		Incomerelating to itemsthatwill not betax-	(0.58)	(6.07)	0.34	(3.53)
		reclassifiedto profit or loss
		Subtotal(A)	1.74	25.39	(4.74)	12.68
		B) Itemsthatwill be reclassifiedto profit or loss
		gain/ (loss) on financial- Net fair valueinstruments	(1.13)	16.21	(5.73)	7.37
		relating to items- Incomethatwill be reclassifiedtax	0.28	(4.08)	1.44	(1.86)
		to profit or loss
		Subtotal(B)	(0.85)	12.13	(4.29)	5.51
		TotalOtherComprehensiveincomefor theperiod(A+B)	0.89	37.52	(9.03)	18.19
9			25.40	358.77	174.67	1,041.08

?

SMARTLINK HOLDINGS LIMITED

		Quaended
Sr. No.	Particulars	30,June2021	March31,2021	June, 30,2020	2021
		(Unaudited)		(Unaudfted)	(Aud•)
10	Profit/(Loss) for theperiodattributableto
	Equity holdersof the parent	28.83	322.36	188.12	1,037.22
	Non-controlling interest	(4.32)	(1.11)	(4.42)	(14.33)
	Othercomprehensiveincomeperiod attributablefor theto
	Equity holdersof the parent	0.89	37.31	(8.98)	18.11
	Non-controlling interest		0.21	(0.05)	0.08
	Totalcomprehensiveperiod attributableincomefor theto
	Equity holdersof the parent	29.72	359.67	179.14	1,055.33
	Non-controlling interest	(4.32)	(0.90)	(4.47)	(14.25)
11	Earning per share(Face valueof Rs. 2/ each)
	- Basic & Diluted(in Rs.)	0.24	2.42	1.41	7.80
	* Not annualised

See accompanying notes to the consolidated financial Results.

NOTES TO THE CONSOLIDATED AUDITED FINANCIAL RESULTS FOR THE QUARTERENDED JUNE 30, 2021

1 The Consolidated Financial results include results of the following companies:

of theNameCompany	% shareholdingand voting powerofSmartltnkHoldings Limited	Consolidatedas
SmartlinkHoldings Limited		Holding Company
Di gisol Systems Limited	100%	Subsidiary
Synegra EMS Limited	100%	Subsidiary
TelesmartSCS Limited	80%	Subsidiary

Smartlink Holdings Limited along with subsidiaries is together known as "the Group"

• 2 The above Consolidated financial results have been reviewed by the Audit Committee and approved by the Board of Directors at their meetings held on August 12, 2021. The Statutory Auditors have carried out a limited review of the consolidated financial results and have expressed an unmodified opinion thereon.
• 3 Pursuant to the requisite approvals by the Board of Directors of the Holding company, the Shareholders of the Holding company and the Securities & Exchange Board of India (SEBI), the Holding Company bought back 33,25,000 Equity Shares (aggregating up to 25% of the paid-up equity share capital of the Holding Company) at Rs. 95/· per share, aggregating to Rs. 3,159 lakhs, and the corresponding shares have been extinguished on May 27, 2021. Subsequent to the buy back the paid up equity share capital of the Holding Company reduced from Rs. 266.00 lakhs to Rs. 199.50 lakhs.
• 4 The World Health Organization announced a global health emergency because of a new strain of coronavirus ("COVID-19") and classified its outbreak as a pandemic on March 11, 2020. On March 24, 2020, the Indian government announced a strict 21-day lockdown across the country to contain the spread of the virus. This pandemic and response thereon have impacted most of the industries. Consequent to the nationwide lock down on March 24, 2020, the Group's operations were scaled down in compliance with applicable regulatory orders. Subsequenlty, during the year, the Group's operations have been scaled up in a phased manner taking into account directives from various Government authorities. The impact on future operations would, to a large extent, depend on how the pandemic further develops and it's resultant impact on the operations of the Group. The Group continues to monitor the situation and take appropriate action, as considered necessary in due compliance with the applicable regulations.

The management has made an assessment of the impact of COVID-19 on the Group's operations, financial performance and position as at and for the Quarter ended June 30, 2021 and has concluded that there is no impact which is required to be recognised in the financial results. Accordingly, no adjustments have been made to the financial results.

5 The Code on Social Security 2020 ('the Code') relating to employee benefits, during the employment and post-employment, has received Presidential assent on September 28, 2020. The Code has been published in the Gazette of India. Further, the Ministry of Labour and Employment has released draft rules for the Code on November 13, 2020. However, the effective date from which the changes are applicable is yet to be notified and rules for quantifying the financial impact are also not yet issued.

The Group will assess the impact of the Code and will give appropriate impact in the financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.

SMARTLINK HOLDINGS LIMITED

NOTES TO THE CONSOLIDATED AUDITED FINANCIAL RESULTS FOR THE QUARTERENDED JUNE 30, 2021

6 Segment-wise Revenue, Results and Capital Employed for Consolidated financial results as required under Regulation of the SEBI (Listing Obltgattons and D1sclosure Requtrements) Regulations, 2015

The group has two business segments

(i) Investment: Investment in various securities.

(ii) Networking products : Developing, manufacturing, marketf ng, dfstrfbutfng and servicing of various IT products.

June30,March31June30,March31,2021202120212020Particulars(Unaudited)(Unaudited)(Audited)ReferNote71 Segment Revenue(net):602(a) Investment262.409 575,623.64(b) Networking Products1,326.521,186.581,080.4917.051,682.717Total1,588.921,306.15(90.14)(15.54)(15.08)(35.01)Less: Inter-segmentRevenue7,026.91TotalIncomefromOperations(net)1,573.381,29.071,647.70Profit/each(Loss) beforeand financefromtaxcostssegment390.80658.24(a) Investment80.84(87.11)220.52(b) Networking Products(37.81)(10.52)111.99878.76Total70.3224.88352.99Less:(i) Finance(net)Costs14.8053.08122.7013.87(if) Otherun-allocableexpenditurenet-off(153.27)(112.17)3.77un-allocableincome37.16122.25296.14909.33TotalProfitI (Loss) before19.29tax19,707.3619,555.8019,707.36(a) Investment15,834.253,145.812,631.84(b) Networking Products3,035.152,631.84638.57621.46638.57(c) Un-allocated919.7822,977.7723,323.0722,977.7719,789.18TotalAssetsSegment LiabilitiesLess:360.47324.49360.47414.77(a) Investment3,163.853,163.854,036.96(b) Networking Products3,898.72112.80112.80397.10(c) Un-allocated63.253,637.123,637.124,848.83TotalLiabilities4,286.4619,340.6518,474.2419,340.65Capital employed15,502.72Total		Q.uart,rended			Year ended
	2 Segment Results:
	3 Segment Assets

7 The figures for the quarter ended March 31, 2021 are balancing figures between the audited figures in respect of the full financial year and the published unaudited year to date figures upto the third quarter of the financial year ended March 31, 2021.

8 The figures for the previous year/ periods have been reclassified/ regrouped wherever necessary to conform to current period presentation.

Place: Verna-Goa Date : August 12, 2021

ofSMARUDINGS LIMITED ?.Naik

Executive Chairman DIN : 00002013

For and on behalf of the Board of Directors

Independent Auditor's Review Report on Consolidated Unaudited Quarterly financial results of the Group pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

The Board of Directors Smartlink Holdings Limited

• 1. We have reviewed the accompanying statement of consolidated unaudited financial results of Smartlink Holdings Limited ('the Holding Company'), its subsidiaries, (the Holding Company and its subsidiaries together referred to as the 'Group') for the quarter ended June 30, 2021 ('the Statement'), being submitted by the Holding Company pursuant to the requirements of Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended ('the Regulations').
• 1. This Statement, which is the responsibility of the Holding Company's Management and approved by the Holding Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in 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 recognized accounting principles generally accepted in India. Our responsibility is to 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. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the financial results are free of material misstatement. A review 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 Securities and Exchange Board of India under Regulation 33 (8) of the Regulations, as amended, to the extent applicable.

Sr.No	CompanyNameofthe	HoldingRelationshipwiththeCompany
1	Digisol SystemsLimited	SubsidiaryWholly Owned
2	SynegraEMS Limited	Wholly OwnedSubsidiary
3	TelesmartSCS Limited	Subsidiary

1. This Statement includes the results of the following entities:

2. 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

Colony, Ram Goregaon (E), Mumbai 400063, INDIA, Tel: +91 22 6831 1600 Hyderabad I I Kolkata I Mumbai I Pune Head Office: 602, Floor 6, Raheja Titanium, Western Express Highway, ueet,:mJcm Regd. No. 105047W I Ahmedaba Bengaluru i Chennat I Goa I

with the recognition and measurement principles laid down in Ind AS 34, prescribed under the Companies Act, 2013 read with relevant rules issued thereunder and other recognized principles generally accepted in India has not disclosed the information required to be disclosed in terms of the Regulations including the manner in which it is to be disclosed, or that it contains any misstatement.

1. We draw attention to Note 4 to the accompanying Statement, which the assessment of the impact of COVID-19 pandemic on the company's operations, financial performance position as at and for the quarter ended June 30, 2021 and has concluded that there is no impact which is required to be recognized in the financial results. Accordingly, no adjustments have been made to financial results.

Our conclusion is not modified in respect of this matter.

For MSKA 8: Associates Chartered Accountants ICAI Firm Registration No.105047W

Darryl Frank Partner Membership No.: 104096 UDIN: 21104096AAAAKX6946

Place: Verna, Goa Date: August 12, 2021