SPML Infra Limited — Interim / Quarterly Report 2021

Nov 11, 2021

11th November, 2021

To, National Stock Exchange Exchange Plaza, Plot No. C/1, G Block, Bandra (E), Mumbai-400051 (NSE Scrip Code: SPMLINFRA)

BSE Limited Phiroze Jeejeebhoy Towers Dalal Street, Mumbai-400001 (BSE Scrip Code: 500402)

Sub: Outcome of Board Meeting

Dear Sirs,

With reference to the captioned subject and in terms of the Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, we would like to inform you that Board of Directors of the Company in its Meeting held on 11th November, 2021, interalia, has considered and approved the Unaudited Standalone and Consolidated Financial Results of the Company for the 2nd quarter and half year ended 30th September, 2021 along with the Limited Review Report of Statutory Auditors thereon.

Kindly take the above on record.

Thanking you,

For SPML Infra Limited

Swati Agarwal Company Secretary

SPML INFRA LIMITED Registered Office: F-27/2, Okhla Industrial Area, Phase- II, New Delhi- 110020 Tel: +91-0124-3944555; Fax- +91-0124-3983201 Website: www.spml.co.ln; Email: lnfo@spml.co.ln CIN: L40106DL 1981PLC012228

Statement of Standalone Unaudited Financial Results for the Quarter and Six months ended September 30, ²⁰²¹

						Rs. In Lakhs)
Particulars		Quarter ended		Six months	Year ended
	30/09/2021	30/0612021	30/09/2020	30/09/2021	30/09/2020	31/03/2021
	Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
1. Revenue
a. Revenue from Operations	19,349.20	18,302.46	7,296.12	37,651.66	16,222.15	61,539.17
b. Other Income (Refer note 9)	251.37	1 090.29	1 538.41	1 341.66	2 047.46	4 319.15
Total Income	19 600.57	19 392.75	8 834.53	38 993.32	18 269.61	65 858.32
2.Expenses a. Materials and other construction consumed expenses	17,223.78	16,056.55	3,304.02	33,280.33	9,199.80	48,605.07
b. Employee Benefits Expense	636.07	691.50	570.15	1,327.57	1,191.94	2,580.80
c. Finance (Refer note 5) Costs	298.71	273.52	4,979.04	572.23	9,465.10	6,840.53
d. Depreciation and Amortisation Expenses	112.17	109.67	135.67	221.84	284.15	542.98
e. Other Expenses	646.97	3,044.64	579.13	3,691.61	1,327.24	7,928.08
Total Expenses	18 917.70	20 175.88	9 568.01	39 093.58	21 468.23	66 497.46
3. Profit I (Loss) before tax from continuing operations (1 • 2)	682.87	1783.13\	(733.48)	1100.26)	13 198.62\	(639.14)
4. Tax Expense of continuing operations
a. Current Tax b. Deferred Tax			-	-	-
	51.86 51.86	1532.05\ 1532.051	1194.98) (194.98)	{480.19) (480.19)	1565.12\ 1565.12\	{598.18) {598.18)
5. Profit/(Loss) after Tax from continuing operations (3 - 4)	631.01	1251.081	(538.50)	379.93	12,633.50\	(40.96)
6. Profit I (Loss) before tax from operations discontinued			(1,010.20)	-	12,020.40)	(10,676.46)
7. Tax Expense of discontinued operations
a. Current Tax	-			-	-	-
b. Deferred Tax	-			-
8. Profit/(Loss) after Tax from discontinued operations (6 - 7)			(1,010.20)	-	12,020.40\	- (10,676.46)
I (Loss) before 9. Total Profit tax for the period (3 + 6)	682.87	(783.13)	(1,743.68)	(100.26)	(5,219.02)	(11,315.60)
Tax Expense for the 10. Total period (4 + 7) a. Current Tax		-	-	-	-
b. Deferred Tax	51.86	1532.051	1194.98)	1480.191	1565.12\	1598.18'
	51.86	(532.051	{194.98)	{480.19)	1565.12)	1598.181
Profit/(Loss) 11. Total after Tax for the period (9 - 10)	631.01	{251.081	{1,548.70)	379.93	(4,653.90)	110,717.42'
12. Other Comprehensive lncome/(Expense) Items not to be reclassified subsequently to Profit or Loss (net of tax)
- Gain/(Loss) on fair value of defined benefit plans	(35.87)	30.72	27.80	(5.15)	45.41	26.18
- Gain/(Loss) on fair value of equity instruments measured at FVOCI	-	-	-	-	-	(556.40)
Total Other Comprehensive lncome/(Expense)	(35.87)	30.72	27.80	(5.15)	45.41	(530.21)
13. Total Comprehensive lncome/(Expense) for the period (11 + 12)	595.14	1220.36\	11,520.90)	374.78	14,608.491	(11,247.63)
14. Paid-up Equity Share Capital (par value of Rs. 21- each)	819.45	819.45	819.45	819.45	819.45	819.45
15. Other Equity (excluding revaluation reserves)	-	-	-			26,576.22
16. Earnings per Equity share (i) Earnings per Equity share for continuing operations (Basic and Diluted) (in Rupees) ·(not annualized) (par value Rs. 2/- each)	1.72	(0.69) *	(1.47) *	1.04 '	(7.18) '	(0.11)
(ii) Earnings per Equity share for discontinued operations (Basic and Diluted) (in Rupees) "(not annualized) (par value Rs. 2/- each)			(2.76) *		(5.51) '	(29.13)
(iii)Earnings per Equity share for continuing and discontinued operations (Basic and Diluted) (in Rupees) "(not annualized) (par value Rs. 2/- each)	1.72	(0.69) *	(4.23) *	1.04 •	(12.69)	(29.24)

Dated: November 11, 2021

Sushil Kumar Sethi

Director & Vice Chairman DIN: 00062927

SPML INFRA LIMITED Registered Office: F-27/2, Okhla Industrial Area, Phase- II, New Delhi- 110020 Tel: +91-0124-3944555; Fax- +91-0124-3983201 Website: www.spml.co.in; Email: info@spml.co.in CIN: L40106DL 1981 PLC012228

Statement of Standalone Unaudited Assets and Liabilities as at September 30, ²⁰²¹

		(Rs. in Lakhsl
Particulars	As at	As at
	Sep 30, 2021	Mar 31, 2021
ASSETS	Unaudited	Audited
Non-Current Assets
(a) Property, Plant and Equipment	9,517.87	9,649.35
(b) Right of Use Assets	15.36	68.16
(c) Intangible Assets (d) Financial Assets	36.43	20.51
- Investments	10,290.70	10,273.65
- Trade Receivables	10,979.73	10,614.71
- Loans	10,492.24	12,531.54
- Other Financial Assets	1,335.10	2,642.99
(e) Deferred Tax Assets (f) Other Non-Current Assets	11,887.72	11,405.20
	31 369.99 85 925.14	30 909.66 88 115.77
Current Assets
(a) Inventories	6,316.52	7,123.60
(b) Financial Assets
- Trade Receivables - Cash Cash Equivalents and	1,19,423.94	1, 13,497.13
- Other Bank Balances	4,114.71 387.14	3,797.47 1,970.74
- Other Financial Assets	25,710.73	25,248.60
(c) Other Current Assets	11 965.47	11 244.05
	1,67 918.51	1,62,881.59
TOTAL ASSETS	2,53,843.65	2,50,997.36
EQUITY AND LIABILITIES
Equity
(a) Equity Share Capital	819.45	819.45
(b) Other Equity	26,951.00	26,576.22
Total Equity	27,770.45	27,395.67
Liabilities
Non-Current Liabilities
(a) Financial Liabilities
- Borrowings	62,459.38	63,055.44
Liability - Lease	4.17	-
- Trade Payables
Outstanding - Total Dues of Micro Enterprises and Small Enterprises	-	-
- Total Outstanding Dues of Creditors other than Micro Enterprises and Enterprises Small - Other Financial Liabilities	5,794.26	5,242.15
(b) Provisions	3,421.08 280.26	4,987.02
	71,959.15	297.19 73,581.80
Current Liabilities
(a) Financial Liabilities
- Borrowings	1,17,858.30	1, 17,924.19
Liability - Lease	12.02	74.48
- Trade Payables - Total Outstanding Dues of Micro Enterprises and Small Enterprises
- Total Outstanding Dues of Creditors Micro Enterprises other than and Small	56.18	58.22
Enterprises - Other Financial Liabilities	29,855.62	26,341.51
(b) Other Current Liabilities	4,555.46 1,623.61	3,267.61 2,185.09
(c) Provisions	152.86	168.80
	1,54,114.05	1 50,019.90
TOTAL
LIABILITIES EQUITY AND TOTAL LIABIL TIES	2 26 073.20 2,53,843.65	2 23 601.70
		2,50,997.36

For and on behalf of Board of Directors of SPML Infra Limited

Sushi! Kumar Sethi Director & Vice Chairman DIN: 00062927

SPML INFRA LIMITED Registered Office: F-27/2, Okhla Industrial Area, Phase- II, New Delhi- 110020 Tel: +91-0124-3944555; Fax- +91-0124-3983201 Website: www.spml.co.in; Email: info@spml.co.in CIN: L40106DL 1981PLC012228

Statement of Standalone Unaudited Cash flow for six months ended September 30, 2021

(Rs. in Lakhs)
Particulars	For six months ended Sep 30, 2021	For the ended year Mar 31, 2021
	Unaudited	Audited
A. CASH FLOWS FROM OPERATING ACTIVITIES
Profit before I (Loss) tax from continuing operations	(100.26)	(639.14)
Profit before I (Loss) from tax discontinued operations		(10,676.46)
I (Loss) Total Profit before tax	(100.26)	(11,315.60)
Adjustments for:
Depreciation Amortisation and expenses	221.84	542.98
Expenses Interest	121.68	4,496.33
Commission income	(117.52)	(202.09)
Sundry Balances written off	63.60	656.28
ECL on loans	1,989.34	722.69
Impairment of investment in equity shares of subsidiaries and associates		1,716.51
charge /(reversal) ECL Trade Receivable on	269.46	263.37
Profit sale of property plant and equipment on	(11.81)	(6.64)
longer required written Liabilities back no	(561.71)	(2,352.08)
Interest Income	(628.08)	(1 567.99'
Operating Profit before Working Capital changes	1,246.54	(7,046.24]
Adjustment for:
lncrease/(Decrease) in trade payables	4,131.57	(23,418.88)
lncrease/(Decrease) in provisions	(38.01)	(590.15)
lncrease/(Decrease) in other liabilities current	(173.29)	(13,278.69)
(lncrease)/Decrease in trade receivables (lncrease)/Decrease in inventories	(7,195.66)	15,444.53
(lncrease)/Decrease in loans and advances	807.08 272.27	(849.87)
(lncrease)/Decrease in other current assets		(965.58)
Cash generated/(used) from operations	(1 057.06' (2,006.56:	2,866.17
Taxes Paid (net of refunds)	919.39	(27,838.72)
Operating Net Cash from Activities		628.89
	(1,087.17:	(27,209.84)
B. CASH FLOWS FROM INVESTING ACTIVITIES
of Property, Plant Purchase and Equipment including Capital work in progress	(122.89)	175.16
Proceeds from of Property.Plant Equipment sale and	28.43	11.10
Fixed Deposits encashed/ (invested)	1,972.59	123.27
(given) I repayment Loans received	32.91	(111.26)
received Interest	454.47	1 322.63
Cash Net generated/(used) in Investing Activities	2,365.51	1,520.90
C. CASH FLOWS FROM FINANCING ACTIVITIES
in Long Term Borrowings Net movement	(506.68)	(1,131.43)
Net movement in Short Term Borrowings	(155.28)	33,555.68
paid Interest	(299.14)	(4 865.47'
Cash Net generated/(used) in Financing Activities	(961.10'	27,558.78
lncrease/(Decrease) Net in Cash & Cash Equivalents	317.24	1,869.84
Equivalents Cash & Cash at the beginning of the year	3,797.47	1,927.63
Cash & Cash Equivalents at the end of the year	4,114.71	3,797.47

Dated: November 11, 2021 Place: Kolkata

For and on behalf of Board of Directors

of SPML Infra Limited (-??)4!/,? \1.,:-_\ 1/ ? ? ·'.:,-;,-- ,. ^J SJ-- ·,?··.:·?.,- ··:. ..-:,/

Sushil Kumar Sethi Director & Vice Chairman DIN: 00062927

Notes to the Statement of Standalone Financial Results

• 1. The above unaudited results have been reviewed by the Audit Committee and subsequently approved by the Board of Directors of the Company at their respective meetings held on 11th November, 2021.
• 1. The outbreak of COVID-19 pandemic has disrupted regular business operations of the Company due to the lock down restrictions and other emergency measures imposed by the Central and State Governments from time to time, due to which the project activities, supply chain, human resource availability has been affected. The business operations have recommenced on ^a lower scale post relaxation of lockdowns as compared to pre-pandemic levels. The management has evaluated the possible impact of known events, upto the date of approval of these financial results, arising from COVID-19 pandemic on the carrying value of the assets and liabilities as at 30th September, ²⁰²¹ and has concluded that no material adjustments are required currently at this stage. However, there exists some uncertainty in relation to the future impact of COVID-19 pandemic on the Company and, accordingly, the actual impact in the future may be different from those presently estimated. The Company will continue to monitor any material change to the future economic conditions and consequential impact on the financial results.
• 1. The company has been facing financial crisis since last few financial years and with effect from the financial year 2019-20, the Company is in default relating to payment of its dues to the financial creditors (mainly to banks/financial institutions, hereinafter referred to as "Lenders") and accordingly, the borrowing facilities of the company with the Lenders are irregular as at so" September, 2021. The Company is in the process of formulating ^a resolution plan with Lenders, which is at an advanced stage of discussions after protracted negotiations and completion of various processes ('resolution plan'). The proposed resolution plan had been forwarded for the Independent Credit Evaluation (ICE) of External Credit Rating Agencies for obtaining RP4 or better rating, which is necessary and essential for the approval of the resolution plan. The Company has received the rating under the ICE and the Lenders are in the process of approval of the resolution plan. Considering the above progress in implementation of ^a sustainable resolution plan together with positive future growth outlook, the management is confident of improving the overall financials of the Company. The company's financials are further likely to improve with expected realisation of various contingent assets in the form of arbitration awards and claims which have been considered as part of the resolution plan. Accordingly, the Company's Board of Directors considers it appropriate to prepare these financial results on ^a going concern basis.

• 1. Interest on YTM basis amounting to Rs.1,503.51 lakhs and Rs.2,961.09 lakhs for the quarter and six months ended so" September,2021 respectively have not been provided on Optionally Convertible Debentures (OCDs) issued to Lenders under S4A scheme, as the same is not payable until maturity of such OCDs. However, the current resolution plan which is under consideration entails revision in the terms of these OCDs. Statutory Auditors' Limited Review Report is modified in respect of this matter by way of ^a qualification. The Audit Report for the year ended 31st March, ²⁰²¹ and the Limited Review Report for the quarter and six months ended so" September, ²⁰²¹ were similarly modified in respect of this matter.
• 1. The operations of the company have suffered in the last few years mainly due to general economic slowdown as well as various actions and inactions by various Government bodies I authorities, including factors beyond the control of the Company or its management. The major clients I customers of the Company are government bodies wherein the monies of the company are stuck since long and for which the claims of the Company are pending. The situation has been further aggravated with the non-release of sanctioned working capital credit facilities including Bank Guarantee limits, along with levy of excess margin and charges by some of the Lenders as against the agreed terms of sanction by them. Due to the mismatch in the cash flows, the Company has not been able to service its debts or meet the payment obligations to the Lenders. Hence, the accounts of the Company with the Lenders have been classified as irregular and sub standard. Consequently, w.e.f. 1st November, 2019, majority of the Lenders ceased charging interest on loans to the Company, in their books of account, as per RBl's prudential norms. In the on-going resolution with the Lenders, the Company has proposed issuance of ^a separate instrument towards the unpaid interest upto the cut off date ( 31st October, ²⁰¹⁹ has been proposed as the cut-off date for the implementation of the resolution plan), which is under active consideration. Hence, the company is not recognizing any interest liability on the fund based borrowing facilities from the Lenders, in the books of accounts, with effect from 1st November, 2019. Accordingly, based on the expectation of imminent approval and implementation of the resolution plan, interest expense of Rs.4, 786.14 lakhs and Rs.9,582.12 lakhs on the said borrowings have not been recognized for the quarter and six months ended so" September, ²⁰²¹ respectively. Effect of the resolution plan would be provided in the financial statements of the Company as and when the plan is finally approved and implemented by the Lenders. Statutory Auditors' Limited Review Report is modified in respect of the aforesaid non-recognition of interest liability, by way of ^a qualification. The Audit Report for the year ended 31st March, ²⁰²¹ was similarly modified in respect of this matter. Further, on the aforesaid grounds, in respect of other borrowings

including those from certain related parties ( i.e. borrowing other than from 'Lenders'), the company had written back Rs.463.74 lakhs in Ql of FY 2021-22 representing liability towards interest expense upto 31st March, ²⁰²¹ and has also not recognized interest expense of Rs.183.63 lakhs and Rs.366.61 lakhs for the quarter and six months ended so" September, ²⁰²¹ respectively. Statutory Auditors' Limited Review Report is modified in respect of the aforesaid write back/non-recognition of interest liability/expense, by way of ^a qualification.

• 1. The company has given unsecured loans to certain subsidiaries, joint ventures and associates for developing various projects. However, due to the current financial difficulties being faced by the Company, as detailed in Note 3 hereinabove, it has not been able to continue providing required financial support which they have asked for subsequently for developing the projects. Consequently and coupled with various other reasons specific to each such subsidiary, joint venture and associate and the general economic conditions,, their financials have been adversely impacted over ^a period of time. Based on the assessment of financials etc. of these companies and as per the provisions of Ind AS, the Company has been providing for expected credit losses in respect of the loans given to them alongwith accrued interest. In view of the aforesaid circumstances and considering the probability that the Company will collect the interest to which it is entitled to, the Company has, with effect from 1st April, 2021, postponed recognition of income from interest on such unsecured loans given to certain subsidiaries, joint ventures and associates which are impaired fully/partially by way of expected credit losses as per the provisions of Ind AS. The amount of such interest not recognized for the quarter and six months ended so" September, ²⁰²¹ is Rs.262.81 lakhs and Rs.525.61 lakhs respectively. The interest income would be considered as revenue, as per the provisions of Ind AS, in the period in which there is certainty of it's collection/it is ultimately collected. Notwithstanding the aforesaid, the Company always has the right to recover the entire outstanding loan along with interest accrued thereon.
• 1. Clients of the Company had foreclosed certain projects/contracts which are presently under arbitration/litigation proceedings. The management, based on the facts of the cases, is confident to recover I realise the trade receivables and inventories as at so" September, ²⁰²¹ of Rs.8,042.03 lakhs and Rs. 1,042.44 lakhs respectively, related to the aforesaid projects/contracts. The Statutory Auditors have expressed their inability to comment upon the recoverability/realisability of the aforesaid amounts and their Limited Review Report is modified in respect of this matter by way of ^a qualification. The Audit Report for the year ended 31st March, ²⁰²¹ and the Limited Review Report for

r

the quarter and six months ended so" September, ²⁰²⁰ were similarly modified in respect of this matter.

• 1. The Company has certain trade and other receivables of Rs.41,219.54 lakhs as at so" September, 2021 backed by arbitration awards pronounced in its favour over the years. Further, the Company has recognised interest income of Rs.696. 76 lakhs and Rs.1,379.72 lakhs during the quarter and six months ended so" September, ²⁰²¹ respectively on such arbitration awards. Against these awards, the customers have preferred appeals in the jurisdictional courts and the legal proceedings are going on. Pending the outcome of the said legal proceedings, the above amounts are being treated as fully realisable as based on the facts of the respective case, the management is confident that the final outcome of the legal proceedings would be in its favour.
• 1. Other Income includes Rs.234.65 lakhs and Rs.515.51 lakhs for the quarter and six months ended so" September, ²⁰²¹ respectively relating to write back of certain credit balances of operational creditors, barred by the laws of limitation and not yet claimed by them.
• 1. Previous period's figures have been regrouped /rearranged wherever considered necessary, to make them comparable with those of the current period.

For and on behalf of Board of Directors of

Place: Kolkata Date: 111hNovember, ²⁰²¹

SPML Infra Limited ? s?

(/\ MAHESHWARI & ASSOCIATES

88 Middleton Street, 6A Geetanjali Kolkata 700071, India T. +91 33 2229 8936 I 6758 I 3237 I 4473 E. kolkata@maheshwariassociates.com www.maheshwariassociates.com

Chartered Accountants

LIMITED REVIEW REPORT TO THE BOARD OF DIRECTORS, SPML INFRA LIMITED

• 1. We have reviewed the accompanying Statement of Unaudited Standalone Financial Results of SPML Infra Limited ("the Company"), for the quarter and six months ended 301hSeptember, ²⁰²¹ ("the Statement"), being submitted by the Company pursuant to the requirements of Regulation ³³ of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended. including relevant circulars issued by the SEBI from time to time.
• 1. The Statement. which rs 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 measurement principles laid down in Indian Accounting Standard ³⁴ "Interim Financial Reporting", prescribed under Section ¹³³ of the Companies Act, ²⁰¹³ ("the Act") and other 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 Engagements (SRE) ^{241 O} "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 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 the Standards on Auditing specified under section 143( 10) of the Act 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

Basis for Qualified Conclusion

1. As stated in:

(i) Note no. ⁴ to the Statement. interest on YTM basis amounting to Rs. 1,503.51 lakhs and Rs.2,961.09 for the quarter and six months ended 30th September, ²⁰²¹ respectively was not provided on Optionally Convertible Debentures (OCDs) issued to lenders under S4A scheme, which is not in accordance with the requirements of Ind AS 23: Borrowing Costs read with Ind AS 109· Financial Instruments. Had such interest expense been recognized, the finance costs. profit/loss before tax, profit after tax and total comprehensive income would have been impacted to the extent of the aforesaid amounts, for the quarter and six months ended 301h September. ²⁰²¹ respectively. Further, since the issue of OCDs, the total liability not provided for rn respect of such interest on YTM basis is Rs.20,248.38 lakhs as at 301nSeptember. 2021. The Auditor's Report for the year ended 31st March, ²⁰²¹ and the Limited Review Report for the quarter and six months ended 30thSeptember, ²⁰²⁰ were also qualified in respect of this matter.

Bangalore: "Park Plaza" First Floor, No.1, Park Road (Off. Infantry Road), Tasker Town, Bangalore - 560051, India T. +91 80 ⁴¹²⁴ 2545 F. +91 80 4124 2547 E.bangalore@maheshwariassociates.com

Mumbai: 304F, ^B Wing, Sumit Samarth Arcade, Tatya Tope CHS, Aarey Road, Goregaon (West), Mumbai ⁴⁰⁰¹⁰⁴ Office Telephone: +91 9152105868, E.mumbai@maheshwariassociates.com

a\ MAHESHWARI & ASSOCIATES Chartered Accountants

88 Middleton Street, 6A Geetanjali Kolkata 700071, India T. +91 33 2229 8936 I 6758 I 3237 I 4473 E. kolkata@maheshwariassociates.com www.maheshwariassociates.com

• (ii) Note no. ⁵ to the Statement, interest expense of Rs.4,786.14 lakhs and Rs.9,582.12 lakhs on the Company's borrowings from certain financial creditors (banks & financial institutions) has not been recognized for the quarter and six months ended 30th September, ²⁰²¹ respectively. This is not in accordance with the requirements of Ind AS 23: Borrowing Costs read with Ind AS 109 Financial Instruments. Had the aforesaid interest expense been recognised, the finance costs, profit/loss before tax, profit after tax and total comprehensive income would have been impacted to the extent of the aforesaid amounts for the quarter and six months ended so" September, 2021 respectively. The Auditor's Report for the year ended 31st March, ²⁰²¹ was also qualified in respect of this matter. Further, Rs.463.74 lakhs representing liability upto 31st March, 2021, towards interest expense on the Company's borrowings from financial creditors (other than banks and financial institutions), had been written back during the quarter ended 30th June, ²⁰²¹ and interest expense of Rs.183.63 lakhs and Rs.366.61 lakhs on such borrowings has not been recognized for the quarter and six months ended so" September, ²⁰²¹ respectively. This is not in accordance with the requirements of Ind AS 23: Borrowing Costs read with Ind AS 109: Financial Instruments. Had the aforesaid liability towards interest expense not been written back and the aforesaid interest expense been recognised, the finance costs, profiUloss before tax, profit after tax and total comprehensive income would have been impacted to the extent of the aforesaid amounts for the quarter and six months ended 30th September, ²⁰²¹ respectively
• (iii) Note no. ⁷ to the Statement, regarding the Company's trade receivables (net of ECL) and inventories as at 30th September, ²⁰²¹ of Rs.8,042.03 lakhs and Rs.1,042.44 lakhs respectively, relating to certain projects where the claims are presently under arbitration/ litigation proceedings. Pending the ultimate outcome of these matters (fate of which is presently unascertarnable) we are unable to comment on the recoverability thereof. The Auditor's Report for the year ended 31st March, ²⁰²¹ and the Limited Review Report for the quarter and six months ended 30th September, ²⁰²⁰ were also qualified in respect of this matter.
• 1. Based on our review conducted as above, except for the effects I possible effects of the matters as stated in paragraph 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 Standard 34 and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed

???ti& Asso(),· terms of Regulation ³³ of the SEBI (listing Obligations and Disclosure Requirements) ? ? ^{f 8} gulations, 2015. as amended, including the manner in which it is to be disclosed or that it ? .,. ntains any material misstatement.

Bangalore: "Park Plaza" First Floor, No.1, Park Road (Off. Infantry Road), Tasker Town, Bangalore - 560051, India T. +91 80 4124 2545 F. +91 80 4124 2547 E.bangalore@maheshwariassooates.com

Mumbai: 304F, ^B Wing, Sumit Samarth Arcade, Tatya Tope CHS, Aarey Road, Goregaon (West), Mumbai ⁴⁰⁰¹⁰⁴ Office Telephone: +91 9152105868, E.mumbai@maheshwariassociates.com

88 Middleton Street, 6A Geetanjali Kolkata 700071, India T. +91 33 2229 8936 I 6758 I 3237 I 4473 E. kolkata@maheshwariassociates.com www.maheshwariassociates.com

Chartered Accountants

Emphasis of Matters

• 1. We draw attention to:
• (i) Note no. ² to the Statement, which describes the effects of uncertainties relating to COVID-19 pandemic outbreak on the Company's operations and management's evaluation of its impact on the accompanying Statement as at the reporting date, the extent of which is significantly dependent on future developments.
• (ii) Note no. 3 to the Statement which indicates that the Company has defaulted in payment of dues to financial creditors. 1t is facing working capital constraints and its borrowal facilities are irregular with certain financial creditors as at 30th September, 2021. Based on ongoing discussion with such creditors for formulation of ^a resolution plan and other mitigating factors as mentioned in the aforesaid Note no. 3, the Company's Board of Directors is of the view that going concern basis of accounting is appropriate for preparation of the accompanying Statement.
• (iii) Note no. 6 to the Statement, regarding postponement of recognition of income from interest on unsecured loans given to certain subsidiaries, joint ventures and associates which are impaired fully/partially by way of expected credit losses.
• (iv) Note no. 8 to the Statement, regarding uncertainties relating to the recoverability of certain trade & other receivables as at so" September, ²⁰²¹ and recognition of interest income thereon, arising out of arbitration awards pronounced in favour of the Company.
• (v) Note no. 9 to the Statement, regarding write back of Rs.234.65 lakhs and Rs.515.51 lakhs in respect of certain credit balances. during the quarter and six months ended 30th September,2021 respectively.

Our report on the Statement is not modified in respect of these matters.

Other Matters

1. (i) We did not review the financial statements I financial information ^I financial results of ⁴ (four) joint operations included rn the accompanying Statement, whose financial statements I financial information /financial results reflect total revenue of Rs.312.45 lakhs and Rs.1, 110.66 lakhs, total net loss of Rs.6.98 lakhs and Rs. 7.23 lakhs and total comprehensive loss of Rs.6.98 lakhs and Rs.7.23 lakhs for the quarter and six months ended 30th September, 2021 respectively, as considered in the accompanying Statement. These financial statements I financial information/financial results are un-reviewed/unaudited and have been furnished to us by the Company's management and our conclusion on the Statement. in so far as it relates to the amounts and disclosures included in respect of these joint operations, is based solely on such management certified financial statements/financial information/financial results. According to the information and explanations given to us by the Company's management. these financial statements/financial information /financial results are not material to the Statement.

Our report on the Statement is not modified in respect of this matter.

Bangalore: "Park Plaza" First Floor, No. l, Park Road (Off. Infantry Road), Tasker Town, Bangalore - 560051, India T. +91 ^{80 4124} 2545 F. +91 ⁸⁰ 4124 2547 E.bangalore@maheshwariassociates.com

Mumbai: 304F, B Wing, Sumit Samarth Arcade, Tatya Tope CHS, Aarey Road, Goregaon (West), Mumbai 400104 Office Telephone: +91 9152105868, E.mumbai@maheshwariassociates.com

(]\ MAHESHWARI & ASSOCIATES Chartered Accountants

88 Middleton Street, 6A Geetanjali Kolkata 700071, India T. +91 33 2229 8936 I 6758 I 3237 I 4473 E. kolkata@maheshwariassociates.com www.maheshwariassociates.com

(ii) Owing to non-availability of interim financial statements/financial information/financial results of 5 (five) joint operations, the same were not included in the Statement. According to the information and explanations given to us by the Company's management, such interim financial statements/financial information/financial results are not material to the Statement.

Our report on the Statement is not modified in respect of this matter.

For Mahes ri & Associates Chartered c FRN: 31100

CA. Bijay Murmuria Partner Membership No. : 055788

UDIN: 21055788AAAACK5588

Place: Kolkata Date: 11th November, 2021

Bangalore: "Park Plaza" First Floor, No.1, Park Road (Off. Infantry Road), Tasker Town, Bangalore - 560051, India T. +91 80 4124 2545 F. +91 80 4124 2547 E.bangalore@maheshwariassociates.com

Mumbai: 304F, B Wing, Sumit Samarth Arcade, Tatya Tope CHS, Aarey Road, Goregaon (West), Mumbai 400104 Office Telephone: +91 9152105868, E.mumbai@maheshwariassociates.com

SPML INFRA LIMITED Registered Office: F-27/2, Okhla Industrial Area, Phase- II, New Delhi-110020 Tel: +91-0124-3944555; Fax- +91-0124-3983201 Website: www.spml.co.in; Email: info@spml.co.in CIN: L40106DL1981PLC012228

Statement of Consolidated Unaudited Financial Results for the Quarter and Six Months Ended September 30, 2021

						(Rs. In t.akhs]
Particulars	Quarter ended			Six Months	Year ended
	30/09/2021	30/06/2021	30/09/2020	30/09/2021	30/09/2020	31/03/2021
	Unaudited	Unaudited	Unaudited	Unaudlied	Unaudited	Audited
1. Revonuo
from Operations a. Revenue	24.871.32	18,530.69	7.296.13	43.402.01	16,222.16	68.285.34
(refer note 1O) b. Other Income	403.37	1 124.88	1,468.15	1,528.25	1,87175	6,377.41
Income Total	25 274.69	19 655.57	8 764.28	44 930.26	18 093.91	74 662.75
2. Expenses
a.Materials Consumed and Other Construction Expenses	22,818.54	16.276.29	3,304.02	39.094.83	9.199.80	55,331.35
b Employee Benefits Expense	646.09	700.18	580.16	1,346.27	1,209.70	2.622.25
Cost (refer note 6) c Finance	336.41	312.40	5,078.50	648.81	9,662.41	6,695.13
d. Depreciation and Amortization Expenses	114.86	112.48	138.97	227.34	290.76	555.90
1e Other Expenses Total Expanses	676.26	2 958.77	582.31	3,635.03	1,338.29	10,566.60
	24 592.16	20360.12	9 683.96	44 952.28	21 700.96	75 771,ll.
I (Loss) before or Profit I (Loss) or Associates 3. Profit share & Joint & Tax Ventures from continuing operations (1-2)	682.53	(704.55)	(919.68)	(22.02)	(3607.05)	(1108.48)
4. Tax Expense of continuing operations
a. Current Tax						5.95
b. Deferred Tax	130.25\	(451.33)	(195.57)	(481.58)	(566.30\	(458.68
	130.25)	1451.331	[195.57)	[481.58)	(566.301	(452.73)
5. Proflt/(Loss) of Profit/(Loss) before share or Associates and Joint Ventures from continuing operations(3-4)	712.78	(253.22)	(724.11)	459.56	(3040.75)	(655.75)
Share or profit I (loss) or Associates and Joint Ventures
	(3.81)	66.93	351.68	63.12	487.19	(443.48)
Non • controlling interest	1.34	(0.91)	(7.88)	0.43	(15.46)	(54.98)
6. Profit/ (Loss) after Tax from continuing operations	707.63	1185.38)	1364.55)	522.25	(2538.10)	11044.25
7. Profit I (Loss) before tax from discontinued operations			(1010.20)		(2020.40)	(10676.46)
8. Tax Expense of discontinued operations a. Current Tax
b. Deferred Tax
operations 9. Profit/ (Loss) after Tax from discontinued (7-8)			(1010.20)		(2020.40)	(10676.46)
10. rota! Profit I (Loss) before tax	677.38	(636.71)	(1570.32)	40.67	(5124.80)	(12173.44)
Tax Expense for the period [4+81 11. Total
a Current Tax						5.95
b Deferred Tax	130.25\	1451.33!	1195.57)	(481.58)	[566.30\	(458.68:
	130.251	1451.331	1195.57)	1481.58)	(566.30\	1452.731
12. Total Net Profit/ (Loss) after Tax	707.63	(185.38)	(1374.75)	522.25	(4558.50)	(11720.71)
13. Other Comprehensive Income/ (Expense) I
jHems not to be reclassified subsequently to Profit or Loss (net of tax)
I-Gain/(Loss) on fair value of defined benefit plans	(35.87)	30.72	27.79	(5.15)	45.41	29.54
- Gain/(Loss) on fair value of equily instruments measured at FVOCI						(538.77)
Total Other Comprehensive Income I (Expense)	135.871	30.72	27.79	[5.15)	45.41	[509.22)
14. Total Comprehensive Income I (Loss) for the period (12+13)	671.76	(154.66)	11346.96)	517.10	(4513.09\	(12229.93)
15. Paid-up equity share capital (par value of Rs 2/· each)	819.45	819.45	819.45	819.45	819.45	819.45
16. Other Equity (excluding revaluation reserves)						25.385 73
17. Earnings per equity share (par value of Rs 2/- each)
18. Earnings per Equity share (1)Earnings per Equity share for continuing operat,ons (Basic and Diluted ) (in Rupees) "(not annualized) (par value Rs 2/-	1.93 •	(0.51)	(0.99) •	1.42 •	(6.93) •	(2 85)
(i1)Earnings per Equity share for orsconunueo operations (Basic and Diluted ) (in Rupees) "(not annualized) (par value Rs 2/- each)			(2.76) •		(5.51) •	(2913)
(11)Earnings per Equity share for continuing and discontinued operations (Basic and Diluted ) (in Rupees) "(not annualized) (par value Rs 2/- each)	1.93 •	(0.51) •	(3.75) •	1.42 •	(12.44) •	(31 90)

Datud: 11th November, 2021 Place: Kotkata Sushll Kumar Sethi Director & Vice Chairman DIN: ^00062927

For and on behalf of Board of Directors of SPML Infra Limited

SPML INFRA LIMITED

Registered Office; F-27/2, Okhla Industrial Area, Phase- II, New Delhi-110020 Tel: +91-0124-3944555; Fax- +91-0124-3983201 Website; www.spml.co.in; Email; info@spml.co.in CIN: L40106DL 1981 PLC012228

Statement of Consolidated Unaudited Assets and Liabilities as at September 30, 2021

		(Rs. In Lakhs)
Particulars	As at Sep 30, 2021	As at Mar 31, 2021
	Unaudited	Audited
ASSETS Non-Current Assets
(a) Property, Plant and Equipment	9,902.08	10,037.86
(b) Capital Work in Progress	5,634.72	5,634.72
(c) Right of Use Assets	15.37	68.16
(d) Intangible Assets	3,494.20	1,571.42
(e) Financial Assets
. Investments	7,064.92	6,984.74
• Trade Receivables	10,979.73	12,316.46
· Loans • Other Financial	6,930.04	9,447.19
Assets (f) Non Current Tax Assets	391.92	1,701.49
(g) Deferred Tax Assets	3,914.47 10,478.94	4,833.87 9,995.02
(h) Other Non-Current Assets	34,307.87	31,977.37
	93,114.26	94,568.30
Current Assets
(a) Inventories	6,316.52	7,123.60
(b) Financial Assets
- Investments - Trade Receivables
Equivalents • Cash and Cash	1,29,640.92 4,238.07	1,21,729.63 3,965.48
. Other Bank Balances	387.14	1,970.74
· Loans	812.12	494.07
· Other Financial Assets	25,849.24	23,875.75
(c) Current Tax Assets	459.07	432.58
(d) Other Current Assets	18,866.89	17,888.15
	1,86,569.97	1,11;400.00
TOTAL ASSETS	2,79,684.23	2,72,048.30
EQUITY AND LIABILITIES
Equity
(a) Equity Share Capital	810.45	819.45
(b) Other Equity
Equity Attributable to Owners of the Parent	26,879.60	25,385.73
Non-Controlling Interests	716.08	1,528.61
Equity Total	28,415.13	27,733.79
Liabilities
Non-Current Liabilities
(a) Financial Liabilities
• Borrowings	68,597.61	65,033.49
Liability . Lease	4.17
Payables · Trade
• Total Outstanding Dues of Micro Enterprises and Small Enterprises • Total Outstanding Dues of Creditors
other than Micro Enterprises and Small Enterprises • Other Financial liabilities	5,794.26 3,379.86	5,242.15 4,945.80
(b) Provisions	290.77	307.70
	78,066.67	75,529.14
Current Liabilities
(a) Financial Liabilities
· Borrowings	1, 19,325.52	1,16,257.26
Liability • Lease	12.02	74.48
Payables . Trade
· Total Outstanding Dues of Micro Enterprises and Small Enterprises	56.18	58.22
- Total Outstanding Dues of Creditors other than Micro Enterprises and Small Enterprises	42,411.40	38,572.94
- Other Financial Liabilities	8,758.66	11,128.53
(b) Other Current Liabilities	2,485.55	2,524.90
(c) Provisions	152.86	168.80
Tax Liability (d) Current	0.24	0.24
TOTAL LIABILITIES	1,73,202.43 2,51,269.10	1,68,785.37 2,44,314.51
TOTAL EQUITY AND LIABILITIES	2,79,684.23	2,72,048.30

For and on behalf of Board of Directors of SPML Infra Limited

SPML INFRA LIMITED Registered Office: F-27/2, Okhla Industrial Area, Phase- II, New Delhi-110020 Tel: +91-0124-3944555; Fax- +91-0124-3983201 Website: www.spml.co.ln; Email: info@spml.co.in CIN: l40106DL1981PLC0l2228

Statement of Consolidated Unaudited Cash Flows for the Six Months Ended September 30, 2021

		(Rs In Lakhs)
Particulars	For the Six Months Ended Sep 30, 2021	For the Year Ended Mar 31, 2021
	Unaudited	Audited
A. CASH FLOWS FROM OPERATING ACTIVITIES Profit before share of Profit I (Loss) of Associates & Joint Ventures & Tax from
continuing operations Profit	{22.02)	(1,108.48)
I (Loss) before tax from discontinued operations Profit before	-	(10,676.46)
share of Profit I (Loss) of Associates & Joint Ventures & Tax Adjustments for:	(22.03)	(11,784.94)
Depreciation and Amortisation expenses	227.34	555.90
Expenses Interest	646.09	6,673.75
Sundry Balances written off	66.84	11,240.75
Provision for doubtful debts	470.42	5,693.64
Profit on sale of property plant and equipment Liabilities back	(11.81)
no longer required written Interest Income	(595.27)	(4,400.42)
Operating Working Capital changes Profit before	1673.64\	(1,092.77\
Adjustment for:	107.94	6,885.91
lncrease/(decrease) in trade payables	4,983.80	(24,262.62)
lncreasel(decrease) in provisions	(37.59)	(629.12)
lncrease/(decrease) liabilities in other current	(871.86)	(16,936.51)
(lncrease)/decrease in trade receivables	(7,797.78)	3,587.24
(lncrease)/decrease in inventories in loans and advances	807.08	(849.87)
(lncrease)/decrease (lncrease)/decrease in other current assets	112.28	1,109.66
Cash generated from operations	13,585.92)	424.50
Taxes Paid (net of refunds)	(6,282.05) 890.57	(30,670.81)
Net Cash from Operating Activities		438.13
	(5,391.48)	(30,232.68)
B. CASH FLOWS FROM INVESTING ACTIVITIES
Purchase including capital work in progress of PPE	(54.72)	(33.32)
Proceeds from sale of PPE	(2,845.80)	256.55
Fixed Deposits encashed I (invested)	2,660.88	2,445.58
Sale I (purchase) of non-current investments:	(80. 17)	4,932.01
Loans (given) I repayment received	2,201.01	353.92
Interest received Net Cash used Activities	731.67	1,127.87
in Investing	2,612.87	9,082.61
C. CASH FLOWS FROM FINANCING ACTIVITIES
Movement in Minority Interest	226.51	(384.99)
Net movement in Long Term Borrowings	668.77	(2,684.31)
Net movement in Short Term Borrowings	2,970.38	34,172.59
Interest paid	(814.46)	(8 015. 72\
Net Cash used in Financing Activities	3,051.20	23,087.57
Exchange differences D. on translation of foreign subsidiaries
Net lncrease/(Decrease) in Cash & Cash Equivalents	272.59	1,937.50
Cash & Cash Equivalents at the beginning of the year	3,965.48	2,027.98
Cash & Cash Equivalents at the end of the year	4,238.07	3,965.48

Dated: 11th November, 2021

Sushll Kumar Sethi Director & Vice Chairman DIN No.: 00062927

.vA

SPML INFRA LIMITED Registered Office: F-27/2, Okhla Industrial Area, Phase- II, New Delhl-110020 Tel: +91-0124-3944555; Fax- +91-0124-3983201 Website: www.spml.co.ln; Email: info@spml.co.ln CIN: L401060L 1981 PLC012228

Statement of Consolidated Unaudited Segment wise Revenue, Results, Assets and Liabilities for the Quarter and Six Months Ended 30th September, ²⁰²¹

							(Rs In Lakhs)
SL.		Quarter ended			Six months ended		Year ended
No.	PARTICULARS	30/09/2021	30/06/2021	30/09/2020	30/09/2021	30/09/2020	31/03/2021
		Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
1	Segment Revenue (Gross)
	a) Construction	24,829.93	18,302.47	7,296.13	43,132.40	16,222.16	68,097.72
	b) Hydro Power Generation
	c) Waste Management
	d) Trading e) Others
	from Operations Rovenuo	41.39	228.22		269.61		187.62
		24,871.32	18,530.69	7,296.13	43,402.01	16,222.16	68,285.34
2	Segment Results (Profit/ (Loss) Before Tax and Interest)
	a) Construction	952.29	(397.58)	3,095.11	554.71
	b) Hydro Power Generation			(12.29)		3,961.51	6,168.39
	c) Waste Management	47.88	16.36	15.51	64.24	31.28
	d) Trading						(843.38) (10,676.46)
	e)Others	18.77	(10.93)	50.29	7.84	42.17	261.64
	Total	1,018.94	(392.15)	3,148.62	626.79	4,034.96	(5,089.81)
	i. Finance Costs	(336.41)	(312.40)	(5,078.50)	(648.81)	(9,662.41)	(6,695.13)
	ii Unallocable Expenditure Net of Unallocable Income
	ProfltJ(Loss) before of ProfltJ(loss) of Associates Total share and Joint Ventures and Tax	662.53	(704.55)	(1,929.88)	(22.02)	(5,627.45)	(11,784.94)
3	Segment Assets
	a) Construclion	2,50,224.23	2,57,035.33	2,46,369.61	2,50,224.23	2,46,369.61	2,45,189.93
	b) Hydro Power Generation	7,008.82	7,008.82	7,008.82	7,008.82	7,008.82	7,008.82
	c) Waste Management	6,177.66	6,159.88	9.036.28	6,177.66	9,036.28	6.080.03
	d) Trading			13,848.28		13,848.28
	e) Others	16,335.31	14,067.56	16,00328	16,335.31	16,003.28	13,76952
	0 Unallocated
	Total Segment Assets	2,79,746.02	2,84,271.59	2,92,266.27	2,79,746.02	2,92,266.27	2, 72,048.30
4	Segment Liabilities
	a) Construction	2,24.942.04	2,35,092.12	2.15, 759.49	2,24,942.04	2,15,759.49	2,23,028.27
	b) Hydro Power Generation	3,429.37	3,429 37	3,429.37	3,429.37	3,42937	3,429.37
	c) Waste Management	2,329.88	2,333.70	4,624.24	2.329.88	4,624.24	2,332 03
	d) Trading			14,923.04		14,923.04
	e) Others	20,629.60	15,838.18	18,043.50	20,629.60	18,043.50	15,524.84
	0 Unallocated
	Total secmcnt Liabilities	2,51,330.89	2,56,693.37	2,56,779.64	2,51,330.89	2,56,779.64	2,44,314.51

Dated: 11th November, 2021

Sushll Kumar Sethi Director & Vice Chairman DIN No.: 00062927

Notes to the Statement of Consolidated Financial Results

• 1. SPML Infra Ltd. (the 'Parent Company') and its subsidiaries are together referred to as 'the Group' in the following notes.
• 1. The above unaudited consolidated results of the Company have been reviewed by the Audit Committee and subsequently approved by the Board of Directors of the Company at their respective meetings held on n" November, 2021.
• 1. The outbreak of COVID-19 pandemic has disrupted regular business operations of the Group due to the lock down restrictions and other emergency measures imposed by the Central and State Governments from time to time, due to which the project activities, supply chain, human resource availability has been affected. The business operations have recommenced on ^a lower scale post relaxation of lockdowns as compared to prepandemic levels. The management of the Parent Company has evaluated the possible impact of known events, upto the date of approval of these consolidated financial results, arising from COVID-19 pandemic on the carrying value of the assets and liabilities as at 30th September, ²⁰²¹ and has concluded that no material adjustments are required currently at this stage. However, there exists some uncertainty in relation to the future impact of COVID-19 pandemic on the Group and, accordingly, the actual impact in the future may be different from those presently estimated. The Parent Company will continue to monitor any material change to the future economic conditions and consequential impact on the consolidated financial results.
• 1. The Parent Company has been facing financial crisis since last few financial years and with effect from the financial year 2019-20, the Parent Company is in default relating to payment of its dues to the financial creditors (mainly to banks/financial institutions, hereinafter referred to as "Lenders") and accordingly, the borrowing facilities of the Parent Company with the Lenders are irregular as on so" September, 2021. The Parent Company is in the process of formulating ^a resolution plan with Lenders, which is at an advanced stage of discussions after protracted negotiations and completion of various processes ('resolution plan'). The proposed resolution plan had been forwarded for the Independent Credit Evaluation {ICE)of External Credit Rating Agencies for obtaining RP4 or better rating, which is necessary and essential for the approval of the resolution plan. The Company has received the rating under the ICE and the Lenders are in the process of approval of the resolution plan. Considering the above progress in implementation of ^a sustainable resolution plan together with positive future growth outlook, the

management is confident of improving the overall financials of the Parent Company. The Parent's financials are further likely to improve with expected realization of various contingent assets in the form of arbitration awards and claims which have been considered as part of the resolution plan. Accordingly, the Parent Company's Board of Directors considers it appropriate to prepare these consolidated financial results on ^a going concern basis.

• 1. Interest on YTM basis amounting to Rs.1,503.51 lakhs and Rs.2,961.09 lakhs for the quarter and six months ended so" September,2021 respectively has not been provided on Optionally Convertible Debentures (OCDs) issued to Lenders under S4A scheme by the Parent Company, as the same is not payable until maturity of such OCDs. However, the current resolution plan which is under consideration entails revision in the terms of these OCDs. Statutory Auditors' Limited Review Report is modified in respect of this matter by way of ^a qualification. The Audit Report for the year ended 31st March, ²⁰²¹ and the Limited Review Report for the quarter and six months ended so" September, 2020 were similarly modified in respect of this matter.
• 1. The operations of the Group have suffered in the last few years mainly due to general economic slowdown as well as various actions and inactions by various Government bodies I authorities, including factors beyond the control of the Group or its management. The major clients / customers of the Group are government bodies wherein the monies of the Group are stuck since long and for which the claims of the Group are pending. The situation has been further aggravated with the non-release of sanctioned working capital credit facilities including Bank Guarantee limits, along with levy of excess margin and charges by some of the Lenders as against the agreed terms of sanction by them. Due to the mismatch in the cash flows, the Parent Company has not been able to service its debts or meet the payment obligations to the Lenders. Hence, the accounts of the Parent Company with the Lenders have been classified as irregular and sub - standard. Consequently, w.e.f 1st November, 2019, majority of the Lenders ceased charging interest on loans to the Parent Company, in their books of account, as per RBl's prudential norms. In the on-going resolution with the Lenders, the Parent Company has proposed issuance of ^a separate instrument towards the unpaid interest up to the cut-off date ( 31st October, ²⁰¹⁹ has been proposed as the cut-off date for the implementation of the resolution plan), which is under active consideration. Hence, the Parent Company is not recognizing any interest liability on the fund based borrowing facilities from the Lenders, in the books of accounts, with effect from 1st November, 2019. Accordingly, based on the expectation of imminent approval and implementation

of the resolution plan, interest expense of Rs.4,786.14 lakhs and Rs.9,582.12 lakhs on the said borrowings has not been recognized for the quarter and six months ended so" September, ²⁰²¹ respectively. Effect of the resolution plan would be provided in the financial statements of the Parent Company as and when the plan is finally approved and implemented by the Lenders. Statutory Auditors' Limited Review Report is modified in respect of the aforesaid non-recognition of interest liability, by way of ^a qualification. The Audit Report for the year ended 31st March, ²⁰²¹ was similarly modified in respect of this matter.

• 1. Clients of the Parent Company had foreclosed certain projects/contracts which are presently under arbitration/litigation proceedings. The management, based on the facts of the cases, is confident to recover /realise the trade receivables and inventories as at so" September, ²⁰²¹ of Rs.8,042.03 lakhs and Rs.1,042.44 lakhs respectively, related to the aforesaid projects/contracts. The Statutory Auditors have expressed their inability to comment upon the recoverability/realisability of the aforesaid amounts and their Limited Review Report is modified in respect of this matter by way of ^a qualification. The Audit Report for the year ended 31st March, ²⁰²¹ and the Limited Review Report for the quarter and six months ended so" September, ²⁰²⁰ were similarly modified in respect of this matter.
• 1. The Parent Company made all the efforts to obtain the requisite financial statements/ financial information I financial results of ² (two) Subsidiaries, ³ (three) Joint Ventures and ¹ (one) Associate Company for the quarter and six months ended so" September, 2021. However, in their absence, the consolidated financial results for the quarter and six months ended so" September, ²⁰²¹ have been prepared without considering the financial impact of such unavailable financial statements I financial information/financial results. Further, the management has assessed that such financial statements/financial information/financial results are not material to the overall consolidated financial results for quarter and six months ended 30th September, 2021.
• 1. The Parent Company has certain trade and other receivables of Rs.41,219.54 lakhs as at so" September, ²⁰²¹ backed by arbitration awards pronounced in its favour over the years. Further, the Parent Company has recognised interest income of Rs.696.76 lakhs and Rs. 1,379.72 lakhs during the quarter and six months ended so" September, ²⁰²¹ respectively on such arbitration awards. Against these awards, the customers have preferred appeals in the jurisdictional courts and the legal proceedings are going on. Pending the outcome of the said legal proceedings, the above amounts are being

treated as fully realisable as based on the facts of the respective case, the management is confident that the final outcome of the legal proceedings would be in its favour.

• 1. Other Income includes Rs.234.65 lakhs and Rs.515.51 lakhs for the quarter and six months ended 301hSeptember, ²⁰²¹ respectively relating to write back of certain credit balances of operational creditors by the Parent Company, barred by the laws of limitation and not yet claimed by them.
• 1. Previous period's figures have been regrouped /rearranged wherever considered necessary, to make them comparable with those of the current period.

For and on behalf of Board of Directors of SPML Infra Limited

Sushi! Kumar Sethi Director & Vice Chairman DIN : 00062927

Place: Kolkata

Date : 11th November, 2021

C/\ MAHESHWARI & ASSOCIATES Chartered Accountants

88 Middleton Street, 6A Geetanjali Kolkata 700071, India T. +91 33 2229 8936 I 6758 I 3237 I 4473 E. kolkata@maheshwariassociates.com www.maheshwariassociates.com

LIMITED REVIEW REPORT TO THE BOARD OF DIRECTORS, SPML INFRA LIMITED

• 1. We have reviewed the accompanying Statement of Unaudited Consolidated Financial Results of SPML Infra Limited ("the Parent") and its subsidiaries (the Parent and its subsidiaries together referred to as "the Group") its associates and Joint ventures for the quarter and six months ended so" September, 2021 ("the Statement"), being submitted by the Parent pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations. 2015, as amended, including relevant circulars issued by the SEBI from time to time.
• 1. This Statement, which is the responsibility of the Parent's Management (the 'Management') and approved by the Parent'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", prescribed under Section 133 of the Companies Act. 2013 ("the Act") and other 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 Engagements (SRE) 2410. "Review of lntenm 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 of interim financial information consists of making inquiries, primarily of persons responsible for fmancral and accounting matters. and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the Standards on Auditing specmec under section 143(10) of the Act. 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. The Statement includes the results of the entities as given in the Annexure to this report.

Basis for Qualified Conclusion

1. As stated in

a) Note 5 to the Statement. interest on YTM basis amounting to Rs.1,503.51 lakhs and Rs.2,961.09 lakhs for the quarter and six months ended so" September, ²⁰²¹ respectively was not provided on Optionally Convertible Debentures (OCDs) issued to lenders under S4A scheme by the Parent, which is not in accordance with the requirements of Ind AS 23: Borrowing Costs read with Ind AS 109: Financial Instruments Had such interest expense been recognized, the finance costs, profit before tax, profit after tax and total comprehensive income would have been impacted to the extent of the aforesaid amounts. for the quarter and six months ended so" September. ²⁰²¹ respectively Further, since the issue of OCDs, the total liability not provided for in respect of such interest on YTM basis is Rs 20,248.38 lakhs as at 301hSeptember. ²⁰²¹ The Auditor's Report for the year ended 31st March, ²⁰²¹ and the l.rrruted Review Report for the quarter and six months ended 301hSeptember, ²⁰²⁰ were also qualified in respect of this matter.

Bangalore: "Park Plaza" First Floor, No.1, Park Road (Off. Infantry Road), Tasker Town, Bangalore - 560051, India T. +91 80 4124 2545 F. +91 80 4124 2547 E.bangalore@maheshwariassociates.com

Mumbai: 304F, B Wing, Sumit Samarth Arcade, Tatya Tope CHS, Aarey Road, Goregaon (West), Mumbai 400104 Office Telephone: +91 9152105868, E.mumbai@maheshwariassociates.com

G\ MAHESHWARI & ASSOCIATES

88 Middleton Street, 6A Geetanjali Kolkata 700071, India T. +91 33 2229 8936 I 6758 I 3237 I 4473 E. kolkata@maheshwariassociates.com www.maheshwariassociates.com

Chartered Accountants

• b) Note 6 to the Statement, interest expense of Rs.4, 786.14 lakhs and Rs.9,582.12 lakhs on the Parent's borrowings from certain financial creditors (banks & financial institutions) has not been recognized for the quarter and six months ended so" September, ²⁰²¹ respectively. This is not in accordance with the requirements of Ind AS 23: Borrowing Costs read with Ind AS 109: Financial Instruments. Had the aforesaid interest expense been recognised, the finance costs, profit before tax, profit after tax and total comprehensive income would have been impacted to the extent of the aforesaid amounts for the quarter and six months ended ao" September, ²⁰²¹ respectively. The Auditor's Report for the year ended 31st March, 2021 was also qualified in respect of this matter.
• c) Note 7 to the Statement, regarding the Parent's trade receivables (net of ECL) and inventories as at so" September ²⁰²¹ of Rs ^{8 042 03} lakhs and Rs 1,042.44 lakhs respectively, relating to certain projects where the claims are presently under arbitration/ litigation proceedings. Pending the ultimate outcome of these matters (fate of which ts presently unascertainable), we are unable to comment on the recoverability thereof. The Auditor's Report for the year ended 31st March, 2021 and the Limited Review Report for the quarter and six months ended 301hSeptember, ²⁰²⁰ were also qualified in respect of this matter.
• 1. Based on our review conducted as above, except for the effects I possible effects of the matters as stated in paragraph 5 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 Standard 34 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 which it is to be disclosed or that rt contains any material misstatement.

Emphasis of Matters

• 7 We draw attention to
• a) Note 3 to the Statement, which describes the effects of uncertainties relating to COVID-19 pandemic outbreak on the Group's operations and the evaluation by the Parent's management of its impact on the accompanying Statement as at the reporting date, the extent of which is significantly dependent on future developments.
• b) Note ⁴ to the Statement. which indicates that the Parent has defaulted in payment of dues to tts financial creditors. rt is facing working capital constraints and its borrowal facilities are irregular with certain financial creditors as at so" September. 2021. Based on ongoing discussion with such creditors for formulation of ^a resolution plan and other mitigating factors as mentioned in the aforesaid Note 4, the Parent's Board of Directors is of the view that going concern basis of accounting is appropriate for preparation of the accompanying Statement.

Note 8 to the Statement. regarding unavarlability of financial statements/ financial information/financial results of 2(two) subsidiaries 3 (three) joint ventures and 1 (one) associate company for the quarter and six months ended 30" September. 2021. According to the information and explanations given to us by the management such unavailable fmancial statements/financial information/financial results are not material to the Statement

Bangalore: "Park Plaza" First Floor, No. l, Park Road (Off. Infantry Road), Tasker Town, Bangalore - 560051, India T. +91 80 4124 2545 F. +91 80 4124 2547 E.bangalore@maheshwariassociates.com

Mumbai: 304F, B Wing, Sumit Samarth Arcade, Tatya Tope CHS, Aarey Road, Goregaon (West), Mumbai 400104 Office Telephone: +91 9152105868, E.mumbai@maheshwariassociates.com

• d) Note 9 to the Statement, regarding uncertainties relating to the recoverability of certain trade & other receivables as at so" September, ²⁰²¹ and recognition of interest income thereon, arising out of arbitration awards pronounced in favour of the Parent.
• e) Note 10 to the Statement, regarding write back of Rs. 234.65 lakhs and Rs.515.51 lakhs by the Parent in respect of certain credit balances. during the quarter and six months ended so" September, ²⁰²¹ respectively.

Our report on the Statement is not modified in respect of these matters.

Other Matters

1. We did not review the fmancral statements ^I financial information/ financial results of 8 (eight) subsidiaries for the quarter ended 30th September. 2021. included in the Statement, whose financial statements I fmancial mforrnatron/ftnancial results reflect total revenues of Rs.148.84 lakhs and Rs.377.04 lakhs total net loss after tax of Rs 8.02 lakhs and Rs.33.96 lakhs. and total comprehensive expense of Rs.8 02 lakhs and Rs.33 96 lakhs. for the quarter and six months ended 30th September, 2021 respectively The Statement also includes the Group's share of net loss after tax of Rs.27.31 lakhs and net profit after tax of Rs. 47 87 lakhs and total comprehensive income of Rs. 23.49 lakhs and total comprehensive income of Rs.52 ³⁷ lakhs for the quarter and six months ended so" September, ²⁰²¹ respectively in respect of 9(nine) associates and 2(two) joint ventures , whose financial statements/financial mforrnauon/tinanclal results have not been reviewed by us. These financial statements I financial rnforrnatron I financial results are unreviewed I unaudited and have been furnished to us by the Management and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries. associates and joint ventures is based solely on such unreviewed ^I unaudited, management certified financial statements I financial information /financial results In our opinion and according to the information and explanations given to us by the Parent's Board of Directors these unaudited and management certified financial statements I financial information /financral results are not material to the Statement.

Our report on the Statement is not rnodmed in respect of this matter.

For Ma Charter FRN: 31

CA. Bijay Murmuria Partner Membership No. 055788

UDIN : 21055788AAAACL2128

Place . Kolkata Date : 11thNovember 2021

Bangalore: "Park Plaza" First Floor, No. l, Park Road (Off. Infantry Road), Tasker Town, Bangalore - 560051, India T. +91 80 4124 2545 F. +91 80 4124 2547 E.bangalore@maheshwariassoc1ates.com

Mumbai: 304F, B Wing, Sumit Samarth Arcade, Tatya Tope CHS, Aarey Road, Goregaon (West), Mumbai 400104 Office Telephone: +91 9152105868, E.mumbai@maheshwariassociates.com

o. MAHESHWARI & ASSOCIATES

Chartered Accountants

Annexure to the Limited Review Report on the Consolidated Financial Results

List of entities whose financial results are included in the Statement

Subsidiaries

• 1. Allahabad Waste Processing Co Ltd.
• 1. Doon Valley Waste Management Private Ltd
• 1. Madurai Municipal Waste Processing Co Pvt Ltd
• 1. Mathura Nagar Waste Processing Co Ltd
• 1. SPML Infrastructure Ltd
• 1. SPML Utilities Ltd
• 1. SPMLIL-Amrutha Constructions Pvt Ltd
• 1. Sanmati Infra Developers (P) ltd (w.e.f. 41hAugust, 2021)
• 1. Pondicherry Special Economic Zone Company Limited (w.e.f. 4thAugust, 2021)

Associates

• 1. Awa Power Company Pvt Ltd.
• 1. Binwa Power Company Pvt ltd.
• 1. Delhi Waste Management Ltd.
• 1. IQU Power Company Pvt Ltd
• 1. Neogal Power Company Pvt ltd
• 1. Sanmati Infra Developers (P} Ltd (ceased to be an associate w.e.f. 41hAugust, 2021)
• 7 SPML Bhiwand1 Water Supply Infra Ltd
• 1. SPML Bhiwand1 Water Supply Management ltd
• 9 Subhash Kabrm Power Corporation Ltd

Joint Ventures

• 1. Hydro-Comp Enterprises (India) ltd
• 2 MW Water Utility Pvt Ltd

Bangalore: "Park Plaza" First Floor, No. l, Park Road (Off. Infantry Road), Tasker Town, Bangalore - 560051, India T. +91 80 4124 2545 F. +91 80 4124 2547 E. bangalore@maheshwariassociates.com

Mumbai: 304F, B Wing, Sumit Samarth Arcade, Tatya Tope CHS, Aarey Road, Goregaon (West), Mumbai 400104 Office Telephone: +91 9152105868, E.mumbai@maheshwariassociates.com