Usha Martin Ltd. — Interim / Quarterly Report 2020

Jul 29, 2019

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Usha Martin Limited

Regd. Office : 2A, Shakespeare Sarani, Kolkoto - 700 071, Indio CIN Phone : (00 91 33) 71006300/599, Fox : (00 91 33) 2282 9029, 71 006400/500 :·L31400WB1986PLC091621

Website : www.ushomartin.com

UML/SECT

National Stock Exchange of India Ltd Exchange Plaza, Plot No C/1, G Block Barrdra Kt1rla Complex, Bandra (E) Mumbai- 400051 Scrip Code: USHAMART

29th July, 20 I 9

BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai-400001 · Scrip Code: 517146

Societe de la Bourse de Luxembourg 35A Bouleverd Joseph II L-1840; Luxembourg [Scrip Code. US9173002042]

Dear Sir / Madam,

Sub : Financial Results - Newspaper Publication

In continuation to our letter dated 26th July, 2019, inter alia, with regard to submission of Unaudited Standalone and Consolidated Results of the Company for the quarter ended 30th June, 2019, please find enclosed the copy of the advertisement published on Sunday, 28th July, 2019 inEnglish and Regional Newspaper (Bengali).

The same has also been made available on the Company's website at the following web link www.ushamartin.com.

f ··. This is for your inormation and record.

Thanking you; .

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Yours faithfully, For Usha Martin Limited

s '.llt"'�,sh Ray any Secretary _e Encl. as above.

FINANCIALEXPRESS, SUNDAY, JULY 28, 2019

			NEWS	NEWS	NEWS
		ffl'usha martin
		Un-audited Consolidated Financial Results for the quarter ended 30th			**June, **	2019
						(� in Lakh)
	SI. Particulars No		Quarter ended 30.06.2019	Year ended 31.03.2019	Corresponding quarter ended 30.06.2018
	1	Total Income from Operations	55,973	246,952		60,106
	2	NetProfit/ (Loss) for the period (before Tax, Exceptional and/or
		Extraordinarv items|54,334	(17,816)		1,158
	3	Net Profit/ (Loss) for the period before tax (after Exceptional and/or Extraordinary items)	54,334	(17,816)		1,158
	4	Net Profit_I_(Loss) for the period after tax (after Exceptional and/or
		Extraordinaryitems)	38,277	4,930		1,142
iI	5 6 7	Total Comprehensive Income for the period [Comprising Profit/ (Loss) for the period /after tax\ and Other Comorehensive Income (after taxll Equity Share Capital Reserves (excluding Revaluation Reserve) as shown in the Audited Balance Sheet of the previous year	37,984 3,054 -	5,627 3,054 75,147		1,024 3,054 -	I
	8	Earnings Per Share (of Re.1/- each) (for continuing and discontinued
		operations)
I		1.Basic	12.56	1.57		0.39
		2. Diluted	12.56	1.57		0.39

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Notes on discontinued operation appearing in consolidated financial results:

Pursuant to the Business Transfer Agreement dated September 22. 2018 (subsequent Novation agreement on October 24, 2018) and Supplemental Business Transfer Agreement dated April 7, 2019 and July 3, 2019 respectively with Tata Sponge Iron Limited (TSIL), the Company had transferred its Steel and Bright Bar Business (SBB Business) as a going concern on slump sale basis during the quarter in accordance with the terms and conditions set out in those agreements at a consideration of Rs. 452,500 lakhs subject to net working capital adjustments and debt like items. Out of the aforesaid consideration, an amount of Rs. 16,000 lakhs is receivable as at the qu1lrter end that include Rs. 15,000 lakhs in respect of certain parcels of land for which perpetual lease and license agreements have been executed by the Company in favour of TSIL pending completion of on going formalities f[o] r registration in the name of TSIL.

Consequent to the above, property, plant and equipment aggregating Rs. 371.461 lakhs, non current liabilities (net of other non-current assets) aggregating Rs. 1,534 lakhs and current liab.ilitres (net of current assets) aggregating Rs. 1,34,396 lakhs has been transferred to TSIL.

Resultant profit of Rs. 56.620 lakhs (net of expenses pertaining to disposal of the business of Rs. 16,135 lakhs) on sale of the SBB Business has been recognised in these results under profit for the period from discontinued operations. The Company's current tax obligation arising from such sale has been adjusted against brought forward business losses and unabsorbed depreciation pertaining to prior years in accordance with the provision of the Income Tax Act, 1961.

Earnings per share from discontinued operations as disclosed in these results has been determined taking into consideration the aforesaid profit from sale of SBB Business.

In the unaudited consolidated financial results, the net results of SBB business has been determined taking into consideration directly attributable and appropriately allocated income and expenditure including interest costs, till April 8, 2019 and June 30, 2019 for Steel business and Iron ore mine / Coal block respectively, being the dates on which these businesses were transferred and has been disclosed separately as discontinued operation as required by Indian Accounting Standard (Ind AS) 105 Asset Held for Sale and Discontinued Operations and Schedule Ill to the Companies Act, 2013. Consequently, the Group's results for the periods presented pertains to its continuing operations only and for that purpose the results for the quarter ended June 30, 2018 had to be restated accordingly.

The impact of the transaction in the unaudited consolidated financial results is as follows:

(Amounts in Rs. Lakhs unless otherwise stated) Particulars Quarter ended 30th June, 2019 Consideration from TSIL (net of acceptances Rs. 98,013 lakhs paid by TSIL directly and net working capital adjustment etc. Rs. 46,201 lakhs) [A] 308,286 Book value of fixed assets sold [BJ 371,461 Net book value of non-current liabilities (net of other non-current assets) sold [ C ] 1,534 Net book value of current liabilities (net of current assets) sold [ D ] 134,396 Expenses pertaining to the disposal of the business [E] 16,135 Profit on disposal of SBB business (discontinued operation) [FJ=[A-B+C+D-EJ 56,620 I Loss before tax for the period from discontinued operations [G] (6,184) Total profit for the period from discontinued operations before tax [HJ=[F+GJ 50,436 The details of discontinued operations are as follows: (Amounts in Rs Lakhs unless otherwise stated) Quarter ended Year ended Quarter ended[1][1 ] Particulars 30th June, 2019 31st March, 2019 30th June, 2018 Unaudited Audited Unaudited Total income 7,386 400,911 105,481 Total expense 13,570 435,182 109,749 Loss before tax for the period from discontinued operation (6,184) (34,271) (4,268) Profit on disposal of SBB business (discontinued operation) 56,620 - . Loss before tax from discontinued operation 50,436 (34,271) (4,268) I I I I

I

During the quarter ended March 31, 2019. the Company had recognised net deferred tax assets (OTA) of Rs. 23,846 lakhs as part of continuing business arising mainly on unabsorbed depreciation and brought forward business losses that was then expected to be utilised against long- term caoltal oain (LTCG.. arisina. from JU;I A nf �AA ht.u::,ina..�c:: :::iinrl R,�r.u::.t fut11r'-'1 b1v.:1.hl,o:1.. ;nr,� ,..f th.a �j,,. ,i.rv,. h, ,.,,_ .... _c:. o .. -, ·--· ....... ool- .,..

u ,ness uring e current quarter, t e ompany has utilised such deferred tax assets to the extent of �s. 15,838 lakhs against LTCG arising from sale of SBB business. Management believes that balance OTA will be recovered against future taxable income aris·ng ft:om the continuing business

The earnings per share of continuing operations for the quarter ended June 30, 2019 and March 31, 2019 are hence not comparable with the earnings per share of the previous periods reported.

Un-audited Standalone Financial Results for the quarter ended 30th June, 2019

					� in Lakh)	� in Lakh)
	SI. No	Particulars	Quarter ended 30.06.2019	Year ended 31.03.2019	Quarter ended **30.06.2018 **
	1	Turnover	35,665	169,048	41,709
	2	Profit before tax	52,980	(17,568)	1,927	1,
	3	Profit after tax	37,112	5,900	1,927
'	4	Total comprehensive income/(loss) for the year	37,197	5,740	1,932

Notes on discontinued operation appearing In standalone financial results:

Pursuant to the Business Transfer Agreement dated September 22, 2018 (subsequent Novation agreement on October 24, 2018) and Supplemental Business Transfer Agreement dated April 7, 2019 and July 3, 2019 respectively with Tata Sponge Iron Limited (TSIL}, the Company had transferred Its Steel and Bright Bar Business (SBB Business) as a going concern on slump sale basis during the quarter in accordance with the terms and conditions set out in those agreements at a consideration of Rs. 452,500 lakhs subject to net working capital ad1ustments and debt like items. Out of the aforesaid consideration, an amount of Rs 16,000 lakhs 1s receivable as at the quarter end that Include Rs. 15,000 lakhs in respect of certain parcels of land for which perpetual lease and license agreements have been executed by the Company in favour of TSIL pending completion of on going formalities for registration in the name of TSIL Consequent to the above, property, plant and equipment aggregating Rs. 371,461 lakhs, non current liabilities (net of other non-current assets) aggregating Rs. 1,534 lakhs and current liabilities (net of current assets) aggregating Rs. 1,34,396 lakhs has been transferred to TSIL. Resultant profit of Rs. 56,620 lakhs (net of expenses pertaining to disposal of the business of Rs. 16,135 lakhs} on sale of the SBB Business has been recognised in these results under profit for the period from discontinued operations. The Company's current tax obligation arising from such sale has been adjusted against brought forward business losses and unabsorbed depreciation pertaining to prior years in accordance with the provision of the Income Tax Act, 1961.

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Earnings per share from discontinued operations as disclosed in these results has been determined taking into consideration the aforesaid profit from sale of SBB Business.

In the unaudited standalone financial results, the net results of SBB business has been determined taking into consideration directly attributable and appropriately allocated income and expenditure including interest costs, till April 8, 2019 and June 30, 2019 for Steel business and Iron ore mine I Coal block respectively, being the dates on which these businesses were transferred and has been disclosed separately as discontinued operation as required by Indian Accounting Standard (Ind AS) 105 Asset Held for Sale and Discontinued Operations and Schedule Ill to the Companies Act, 2013. Consequently, the Company's results for the periods presented pertains to its continuing operations only and for that purpose the results for the quarter ended June 30, 2018 had to be restated accordingly.

The impact of the transaction in the standalone unaudited financial results is-as follows:

(Amounts in Rs. Lakhs unless otherwise stated) Particulars Quarter ended I 30th June, 2019 I Consideration from TSIL (net of acceptances Rs. 98,013 lakhs paid by TSIL directly and net working capital adjustment etc. Rs. 46,201 lakhs) [A] 308,286 Book value of fixed assets sold [BJ 371,461 Net book value of non-current liabilities /net of other non-current assets) sold r Cl 1,534 Net book value of current liabilities (net of current assets) sold [ D] 134,396 Expenses pertaining to the disposal of the business [E] 16,135 Profit on disposal of SBB business (discontinued operation) [F]=[A-B+C+D-E] 56,620 Loss before tax for the period from discontinued operations [G] (6,184) Total profit for the perjod from discontinued operations before tax [H]=(F+G] 50,436 II The details of discontinued operations are as follows: (Amounts in Rs. Lakhs unless 0°therwise stated) Quarter ended Year ended 31st Quarter ended Particulars 30th June, 2019 March, 2019 30th June, 2018 Unaudited Audited Unaudited Total income 7,386 400,911 105,481 Total expenses 13,570 434,879 108,704 Loss before tax for the period from discontinued operation (6,184) (33,968) (3,223) Profit on disoosal of SBB business I discontinued ooeration\ 56 620 - - Total profit/ (loss) for the period from discontinued operations before tax 50,436 (33,968) (3,223)

,,

I Consideration from TSIL (net of acceptances Rs. 98,013 lakhs paid by TSIL directly and net working capital adjustment etc. Rs. 46,201 lakhs) [A]

I Expenses pertaining to the disposal of the business [E] I

The details of discontinued operations are as follows:

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During the quarter ended March 31, 2019, the Company had recognised net deferred tax assets (DTA) of Rs. 23,846 Lakhs as part of continuing business arising mainly on unabsorbed depreciation and brought forward business losses that was then expected to be utilised against long­ term capital gain (LTCG) arising from sale of SBB business and against future taxable income of the continuing business. Pursuant to sale of SBB business during the current quarter, the Company has utilised such deferred tax assets to the extent of Rs. 15,838 lakhs against LTCG arising from sale of SBB business. Management believes that balance OTA will be recovered against future taxable income arising from the continuing business.

The earnings per share of continuing operations for the quarter ended June 30, 2019 and March 31, 2019 are hence not comparable with the earnings per share of the previous periods reported.

Note:

The above is an extract of the detailed format of quarterly financial results filed with the Stock Exchanges under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The full.format of the quarterly financial results are available on the www.nsemdia.com and www.bselndia.com i.e. websites of the Stock Exchanges where the equity shares of the Company are listed and also on www.ushamartin.com.

Rajeev Jhawar Managing Director

Place : Kolkata

Date: 26 July, 2019

Usha Martin Limited

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Registered Office: 2A Shakespeare Sarani, Kolkata-700 071

CIN: L31400WB1986PLC091621

Ph.: (033) 71006300, Fax: (033) 22829029; Website: www.ushamartin.com, email: investor@ushamartin.co.in

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