Usha Martin Ltd. — Regulatory Filings 2021

Jul 28, 2021

Usha Martin Limited 2A, Shakespeare Sarani, Kolkata (formerly Calcutta) - 700 071 , Indio Phone • (00 91 33) 39800300, Fox• (00 91 33) 2282 9029, 39800400/500 CIN • L3 l 400WB l 986PLC09 l 62 l Website • www.ushomortin.com

Date: 28th July 2021

The Secretary National Stock Exchange of India Ltd Exchange Plaza, 5th Floor, Plot No.C/1 , G Block, Bandra Kurla Complex, Bandra (E) Mumbai -400 051 [Scrip Code: USHAMART]

The Secretary The BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street Mumbai - 400 001 [Scrip Code:517146]

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

Sub: Board Meeting Outcome

Dear Sir(s),

The Board of Directors of the Company at their meeting held today has approved and taken on record unaudited financial results on standalone and consolidated basis for the quarter ended 30th June 2021 .

As required under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a copy of above unaudited results and Report of the Auditors on "Limited Review" of said financial results are enclosed for your ready reference and record.

The Board Meeting commenced at 12:30 P.M and concluded at 2:15 P.M (1ST).

Thanking you,

Yours faithfully, For Usha Martin Limited

~hoshRay Company Secretary

Encl : as above

S.R. BATLIBOI & Co. LLP Chartered Accountants

2'.: Carnac S tr eel '.\rd Floor Block B Ko!kc1ta - 700 016 !n(iia Tel. +81 33 6134 4000

Independent Auditor's Review Report on the Quarterly and Year to Date Unaudited Standalone Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

Review Report to The Board of Directors Usha Martin Limited

• I. We have reviewed the accompanying statement of unaudited standalone financial results of Usha Martin Limited (the "Company") for the quaiter ended June 30, 202 1 (the "Statement") attached he rewith, being submitted by the Company pursuant to the requirements of Regulation 33 of the SEB I (Listing Obligations and Disclosure Requ irements) Regulations, 201 5, as ame nded (the "Listing Regu lations").
• 1. This Statement, w hi ch is the responsi bility of the Company 's Management and approved by the Company 's Board of Directors, has been prepared in accordance wi th the recognition and measurement principl es laid down in Indian Accounting Standard 34, (Ind AS 34) " Interim Financia l Reporting" presc ribed under Section 133 of the Compani es Act, 20 I 3 as amended, read with relevant rul es issued thereunder and other accounting principles generall y accepted in India. Our responsibility is to express a co nclusion on the Statement based on our review.
• 1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 24 10, "Review of Interim Financial Informatio n Performed by the Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of India. Th is standard requires that we plan and perform the review to obtain moderate ass urance as to whether the Statement is free of materi a l misstatement. A review of interim financial info rmation consists of making inquiries, primarily of persons responsibl e for financial and accounting matters, and ap ply ing analytical and other review procedures. A review is substanti ally less in scope than an audit conducted in accordance with Standards on A uditing and consequently does not enabl e us to obtain ass urance that we would become aware of all significant matters that might be identified in an a udit. Accordi ng ly, we do not express an audit opinion.
• 1. Based on our review cond ucted as above, nothing has come to our attention that causes us to believe that the accompany ing Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standards (' Ind AS') specified under Section 133 of the Compan ies Act, 20 I 3 as amended, read with relevant rul es issued thereunder and other accounting principles generall y accepted in India, has not disclosed the information req uired to be disclosed in terms of the Listing Regul ations, including the manner in wh ich it is to be disclosed, or that it contai ns any material misstatement.

5. Emphasis of Matter

We draw attention to Note 4(a) regarding attachment of certai n parcels of land at Ranchi used by the Company 's wire ro pe business under Prevention of Money Laundering Act, 2002 (PMLA) in connection with expo1t and domestic sale of iron ore fines in prior years aggregati ng Rs 19,037 lakhs alleged ly in contravention of terms of the mining lease granted to the Company for the iron ore mines. Pending final outcome of the appea l filed by the Company before the Appe ll ate Tribunal, PMLA and of the ongoing proceedings on complaint fi led by the Directorate of Enforcement (ED) before the District and Sessions Judge cum Special Judge (CBI), Ranchi as mentioned in the said note, no adjustment to these standalone financia l resu lts in th is regard have been considered necessary by the management.

Fu1ther, as explained in Note 4(b), a First lnfonn ation Report (FIR) has been filed by Central Bureau of Investigation (CBI) against the Company, its Managing Director and certain 0th~· =:::--...

S.R. BATLIBOI & Co. LLP

Chartered Accountants

Officers under the Prevention of Corruption Act, 1988 and the Indi an Pena l Code, 1860 fo r all egedly try ing to influence ongo ing CBI investi gation pertaining to the proceedings mentioned in note 4(a). The matter is currently pending investigation and the Company intends to take such legal measures as necessary based on the outcome of the ongoing investigation .

Our con cl us ion is not modifi ed in respect of these matters.

For S.R. BATLIBOI & Co. LLP Chartered Accountants ICAI Firm registration number: 30 I 003 E/E300005

per Bhaswar Sarkar Partner

UDIN : 2 105 5596AAAADF4693

Place : Kolkata Date: Ju ly 28, 202 1

e usha martin

Usha Martin Limited

Statement of Unaudited Standalone Financial Results for the quarter ended 30th June, 2021

Particulars	' Quarter ended 30th June, 2021	Quarter ended 31st March, 2021	Quarter ended 30th June, 2020	Year ended 31st March, 2021
	Unaudited	Audited (Refer note 9)	Unaudited	Audited
Continuing Operations
Income
Revenue from operations	40,266	44,052	22,792	1,34,560
Other income	832	484	647	1,876
Total income	41,_098	44,5!6	23,43_9~	l ,_3 6,436
Expenses
Cost of materials consumed	25,172	25,887	11,773	76,610
Purchases of stock-in-trade	2,531	800	426	2,631
(lncrease)/decrease in inventories of finished goods, work-in
progress and stock-in-trade	(3,375) "	199	1,092	2,381
Employee benefits expense	2,98_2	3,211	2,681	11,742
Finance costs	890	1,085	1,206	4,452
Depreciation and amortisation expens_e	789	752	752	3,064
0th~ e!penses	7,370 _	7,221	4.4R _	- ~.520
Total expenses	36,359	39,155	22,352	1,23,400
Profit before tax for the period from co!:!tinuing~e._e_r:a_tions	4,73~ ,	381 _?0	1,087	13,036
Tax expense
Current tax				30
I Deferred tax	1,287	591	286	~.510
ITax expense of continuing operations	1,287	591	286	2,540
Profit for the period from continuing operations after tax (a)	3,452	4,790	801	10,496
Discontinued operations (R':!er not~ 31 _
Profit/ (loss) for the period from discontinued operations before tax		J179)	21	(444)
Tax expense of discontinued operations Profit/ (loss) for the period from discontinued operations after tax ( b)		(179)	21
				1~~4)
Pr_ofit for the period [{c) =(a)+ (b)]	3,_452	4,~11	822	___ 1(),052
Other comprehensive income
(a) Items that will not be reclassified to profit or los~	(4)	(28)	(203)
(b) Tax benefit on items that will not be classified to profit or loss		7	51	53
Total other comprehensive income for the period, net of tax (d)	(3)	(21)	(152)	(157)
Total comprehensive income for the period [(c) + (d)]	3,449	4,590	670	9,895
Paid-up equity share capital (face value of Re 1_/- e~ch)	3,954	~.Q54	3~054	3,_054
Other equity as per balance sheet				68,382
Earnings per share (Rs .) Earnings per equity share (for continuing operations)
Basic and Di luted (!3.s.)	1.13 *	1.58 *	0.26 *	3.45
Earnings per equity share (for disconti~ued operations)
Basic and Diluted (Rs.) Earnings per equity share (for continuing and discontinued operations)	,*	(0.07) *	0.01 *	(0.15)
Basic and Diluted (Rs.)	1.13 *	1.51 *	0.27 *	3.30

e usha martin

Usha Martin Limited

Notes to Financial Results

• 1. The above results of Usha Martin Limited ("the Company") for t he quarter ended June 30, 2021 have been reviewed by the Audit Com mittee and approved by the Board of Directors at t heir respective meetings held on July 28, 2021.
• 1. The unaudited standa lon e financial results have been prepared in accordance with the recogn ition and measurement principles provided in Indian Accounting Standard (Ind AS) 34 on 'Interim Financial Reporting', th e provisions of the Compan ies Act, 2013, as applicable and guid elin es issued by the Securities and Exchange Board of India (SEBI) under SEBI (Listing Obligations and Di sclosure Requirements) Regulation 2015, as amended.
• 1. Pursuant to the Business Transfer Agreement dated September 22, 2018 (Novation agreement on October 24, 2018) and Supplemental Busin ess Transfer Agreement dated Apri l 7, 2019 and July 3, 2019 respective ly with Tata Steel Long Produ cts Limited (TSLPL) [fo rmerly known as Tata Sponge Iron Limited], the Company had transferred its Steel and Bright Bar Business (SBB Business) as a going concern on slump sa le basis during the quarter ended June 30, 2019 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. Out of the aforesaid consideration, an amount of Rs. 16,000 lakhs are receivable as at the quarter-end that includ e Rs . 15,000 lakhs in respect of certain parcels of land for which perpetu al lea se and license agreements have been executed by the Company in favour of TSLPL pending completion of ongoing formalities for registration in the name of TSLPL. During th e quarter ended June 30, 2021, the Company and TSLPL ha s entered into a final settlement of net working capital, resultant impact of which is recognised in these financial results and shall be adjusted at the time of re lease of above hold back amount.

Th e details of discontinued operations for preceding and corresponding (period) quarters and for the year ended March 31, 2021 are as fo llows:

_ _ _JAm~nts in Rs. Lakh~ __
Particulars	Quarter ended 31st March, 2021		Year ended 31st March, 2021
	Audited (Refer n~!e_.2)_	Unaudited	Audited
Total income@	1,287 I	1,575	3,222
r Total expenses#	1,466	1,554	3,666
Total profit/ (loss) for the period from discontinued operations • before tax	- - -; (179) 1	21	(444)

@ Primarily includes liabilities/ provisions no longer required written back pertaining to discontinued business

Primarily includes expenses incurred during the period/yea r in connection with recovery of dues / settlement of obligations pertaining to the assets / liabilities of the discontinued business and transfer of remaining assets to TSLPL, as mentioned above. - -

4 (a) The Directorate of Enforcement, Patna ("ED") had issued an order dated August 9, 2019 under the provisions of Prevention of Money Laundering Act, 2002 (PMLA) to provisionally attach certa in parcels of land at Ranch i, State of Jharkhand being used by the Company for its business for a period of 180 days in connection with export and domestic sa le of iron ore fines in prior years aggregating Rs. 19,037 lakhs al legedly in contrave ntion of terms of the min ing lease granted to the Company for the iron ore mines situated at Ghatkuri, Jharkhand. The Hon'ble High Court of Jharkhand at Ranchi had, vide order dated February 14, 2012, held that the Company has the right to sell the iron ore including fines as per the terms of the mining lease which was in place at that point in time. The Company had paid applicable royalty and had made necessary disclosures in its returns and reports submitted to mining authorities. In response to the provisional attachment order, the Company had submitted its reply before the Adjudicating Authority (AA). Subsequently, AA had issued an order by way of which the provisiona l attachment was confirmed under Section 8(3) of PMLA. Thereafter, the Company filed an appeal before the Appellate Tribuna l, New De lhi and successfully obtained a status quo order from the Tribunal on the confirmed attachment order ti ll th e next date of hearing which is now fi xed on September 7, 2021. Subsequent to the setting aside of the proceedings before the District and Sessions Court cum Specia l Judge (ED), Patn a by the Hon'ble High Court of Patna durin g the quarter for wa nt of proper jurisdiction, the ED has filed a complaint before the District and Sessions Judge Cum Special Judge (CBI), Ranchi against the Company and one of its Officers. In response to the said complaint and summons received by the Company and its Officer on June 7, 2021, the Company has filed a quashing petition before the Hon' ble Jharkhand High Court. The ongoing operations of the Company have not been affected by the aforesaid proceedings. Supported by a lega l opinion obtained, management believes that the Company has a strong case in its favour on merit and law. Accordingly, no adjustment to these financial results in this regard have been considered necessa ry by the management.

e usha martin

Usha Martin Limited

Notes to Financial Results

• 4 (b) On October 2, 2020, Central Bureau of Investigation (CBI) has filed a First Information Report (FIR) against the Company, its Managing Director and certain Other Officers under the Prevention of Corruption Act, 1988 and the Indian Penal Code, 1860 for allegedly trying to influence ongoing CBI investigation pertaining to the above proceedings. The Company strongly refutes the aforesaid allegations made by the CBI. The matter is under investigation and the designated CBI Court has not taken cognizance of the interim charge sheet filed by the CBI due to lack of sanction which is awaited. The Company has been providing information sought by the CBI in this regard. The Company intends to take such legal mea sures as may be considered necessary based on the outcome of the ongoing investigation. Supported by a legal opinion obtained, management believes that the Company has a strong case in its favour on merit and law.
• 1. During the quarter, the Company has re-evaluated the nature and financial effects of the business activities in which it engages and the economic environment in which it operates. Based on how the chief operating decision maker reviews and assesses the Company's financial performance, the Company is engaged solely in the business of manufacture and sa le of wire, wire ropes and allied products. Accordingly, the Company has only one reportable segment, i.e., "Wire & Wire Ropes". Hitherto, the Company was reporting three segments, Steel (discontinued), Wire & Wire ropes and Others.
• 1. The outbreak of Corona virus (COVID-19) pandemic globally and in India is causing significant disruption and slowdown of economic activity. The Company's operations and revenue during the period were also impacted due to COVID-19. The Company has taken into account the possible impact of COVID-19 in preparation of the standa lone financial results, including its assessment of recoverability of the carrying value of property, plant and equipment and investments based on internal and external information upto the date of approval of these standa lone financial resu lts and current indicators of future economic conditions. Further, management has assessed its liquidity position as on June 30, 2021 and does not anticipate any challenge in the Company's ability to continue as a going concern. The impact of the pandemic may be different from that as estimated as at the date of approval of these results and the management continues to closely monitor any material changes to future economic conditions.
• 1. The Board of Directors of the Company at its meeting held on May 20, 2021, has approved the scheme of arrangement for capital reduction and reorganisation pursuant to the provisions of Section 230 and other applicable provisions of the Companies Act, 2013. The scheme wi ll be given effect to on receipt of requisite approvals.
• 1. The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules have not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.
• 1. The figures for the quarter ended March 31, 2021 are the balancing figures between the audited figures for the full financial year and unaudited year to date figures up to the th ird quarter of the relevant financial year which was subjected to limited review.
• lO. Previous period figures have been regrouped/ rearranged wherever necessary, to conform to current period presentation.

Place : Kolkata Dated : July 28, 2021

S.R. BATLIBOI & Co. LLP Chartered Accountants

2::: Cam;;ic Street 3rd Floor Block B Kolk21ta - 700 016 1m1,a Tel +91 33 6134 4000

Independent Auditor's Review Report on the Quarterly and Year to Date Unaudited Consolidated Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

Review Report to The Board of Directors Usha Martin Limited

• I. We have reviewed the accompanyi ng Statement of Unaudited Consolidated Financial Results of Usha Martin Limited (the "Holding Company") and its subsidiaries (the Holding Company and its subsidiaries together referred to as "the Group") and its joint ventures for the qua,ter ended June 30, 202 1 (the "Statement") attached herewith, being submitted by the Holding Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 20 15, as amended (the "Listing 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, (Ind AS 34) " Interim Financial Reporting" prescribed under Section 133 of the Companies Act, 20 13 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
• 1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 24 10, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of Indi a. 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 analytica l and other review procedures. A review is substantially less in scope than an audit cond ucted in accordance with Standards on Auditing and conseq uently does not enab le 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 aud it opinion.

We also performed procedures in accordance with the Circular No. CIR/CFD/CMD I /44/2019 dated March 29, 2019 issued by the Securities and Exchange Board of India under Regulation 33(8) of the Listing Regulations, to the extent applicable.

• 1. The Statement includes the results of the entities as mentioned in Annexure I
• 1. Based on our review conducted and procedures performed as stated in paragraph 3 above and based on the consideration of the rev iew reports of other aud itors referred to in paragraph 7 below, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accord ance with recognition and measurement principles laid down in the aforesaid Indian Accounti ng Standards (' Ind AS') specified under Section 133 of the Companies Act, 20 13, as amended, read with relevant rules issued thereunder and other accounting principles generall y accepted in India, has not disclosed the information required to be disclosed in terms of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement.

6. Emphasis of Matter

We draw attention to Note 4(a) regarding attachment of certain parcels of land at Ranchi used by the Company 's wire rope business under Prevention of Money La undering Act, 2002 (PMLA) in connection with export and domestic sale of iron ore fines in prior years aggregating Rs 19,037 lakhs allegedly in contravention of terms of the mining lease granted to the Company for the iron ore mines .

S.R. BATLIBOI & Co. LLP

Chartered Accountants

Pending final outcome of the appeal filed by the Company before the Appellate Tribunal, PMLA and of the ongoing proceedings on complaint filed by the Directorate of Enforcement (ED) before the District and Sessions Judge cum Special Judge (CBI), Ranchi as mentioned in the said note, no adjustment to these standalone financial results in this regard have been considered necessary by the management.

Fu1ther, as explai ned in Note 4(b), a First Info rmation Repo1t (FIR) has been filed by Central Bureau of Investigation (CBI) against the Company, its Managing Director and certain Other Officers under the Prevention of Corruption Act, I 988 and the Indian Penal Code, 1860 for allegedly trying to influence ongoing CBI investigation pe1taining to the proceedings mentioned in note 4(a). The matter is currently pending investi gation and the Company intends to take such legal measures as necessary based on the outcome of the ongoing investigation.

Our conclusion is not modifi ed in respect of these matters.

• 1. The accompanying Statement includes the unaudited interim fin ancial results and other finan cial information, in respect of:
• nineteen subsidiaries, whose unaudited interim financial results include total revenues of Rs 37,46 1 lakhs, total net profit after tax of Rs. 2,579 lakhs and total comprehensive income of Rs. 2,489 lakhs, for the quarter ended June 30, 202 1, as considered in the Statement which have been reviewed by their respective independent auditors.
• three joint ventures, whose unaudited interim finan cial results include Group's share of net profit of Rs. 189 lakhs and Group 's share of tota l comprehensive income of Rs. 189 lakhs for the quaiter ended June 30, 202 1, as considered in the Statement whose interim financial results, other financial information have been reviewed by their respective independ ent auditors.

The independent auditor's reports on interim financial information/ financial results of these entiti es 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 in respect of these subsidiaries and joint ventures is based solely on the repo1t of such auditors and proced ures performed by us as stated in paragraph 3 above.

Our conclusion on the Statement in respect of matters stated in paragraph 7 above is not modified with respect to our reli ance on the work done and the repo1ts of the other auditors.

For S.R. BATLIBOI & Co. LLP Chartered Accountants ICAI Firm registration number: 30l003E/E300005

per Bhaswar Sa rkar

Partner Membership No.: 055596

UDIN: 21055596AAAADG 1795

Place: Kolkata Date: July 28, 202 1

S.R. BATLIBOI & Co. LLP

Chartered Accountants

Annexure I

List of subsidiaries/joint ventures

Subsidiaries

S. No.	Name
I	UM Cables Limited
2	Usha Martin Power and Resources Limited
,., .)	Bharat Minex Private Limited
4	Gustav Wolf Speciality Cords Limited
5	Usha Martin International Limited
6	Usha Mattin UK Limited @
7	European Management and Marine Corporation Limited @
8	Brunton Shaw UK Limited @
9	De Ru iter Staalkabel B.V. @
10	Usha Martin Europe B.V.@
11	Usha Martin Itali a S.R.L. @
12	Brunton Wire Ropes FZCO.
13	Usha Martin Americas Inc.
14	Usha Siam Steel Industries Public Company Limited
15	Usha Martin Singapore Pte. Limited
16	Usha Martin Australia Pty Limited @
17	Usha Martin Vietnam Company Limited @
18	PT Usha Martin Indonesia @
19	Usha Martin China Company Limited @

@ Represents step-down subsidiaries

Joint ventures

S. No.	Name
I	Pengg Usha Martin Wires Private Limited
2	CCL Usha Martin Stressing Systems Limited
,., .)	Tesac Usha Wirerope Company Limited*

* Represents step-down joint venture

S usha martin

Usha Martin Limited

Statement of Unaudited Consolidated Financial Results for the quarter ended 30th June, 2021

			(Amounts in Rs. Lakhs unless otherwise stated)
Particulars	Quarter ended	Quarter ended	Quarter ended	Year ended
	30th June, 2021 - -- ~-~	31st March, 2021	30th June, 2020	31st March, 2021
	Unaudited	Audited	Unaudited	Audited - ,
		I (Refer note 8)	j
Continuing Operations
Revenue
Revenue from operations	61,530	65,293	37,618	2,09,728
Other income	636	755	795	3,331
Total income	62,166	66,048	38,413	2,13,059
Expenses
Cost of materials consumed	36,537	35,772	20,292	1,15,294
Purchases of stock-in-trade	427	276	85	819
[(lncrease; dec:ea: e in inventories o~_fin~shed goo_d~ work-in-pr~g~ss and st~:-in-~ra~	(3,487)	(26)	(414)	963
Employee benefits expense	8,095	8,127	6,824	29,801
Finance costs	1,170	1,356	1,563	5,690
Depreciation and amortisation expense	1,752	1,680	1,675	6,787
Other expenses	10,820	10,843	7,094	34,926
Total expenses	55,314	58,028	37,119	1,94,280
Profit before tax for the period from continuing operations	6,852	8,020	1,294	18,779
Tax expense:
Current tax	266	494	159	941
Adjustment of tax relating to earlier periods	(26)		(1)	(1)
Deferred tax	994	837	292	2,704
Tax expense of continuing operations	1,234	1,331	450	3,644
Profit for the period before share of profit of joint ventures from continuing
operations	5,618	6,689	844	15,135
Share of profit /(loss) of joint ventu res	189	278	8	459
Profit for the period after share of profit of joint ventures from continuing
operations (a)	5,807	6,967	852	15,594
Discontinued operations (Refer note~)
Profit/ (loss) for the period from discontinued operations before tax		(179)	21	(444)
Tax expense of discontinued operations
Profit /(loss) for the period from-discontinued operations after tax {b)				(444)
Profit for the period [(c) =(a)+ {b)]		(179)	21
	5,807	6,788	873	15,150
Other comprehensive income
Items that will not be reclassified to profit or loss, net of tax
Re-measurements loss on defined benefit plans	(47)	(174)	(161)	(341)
Items that will be reclassified to profit or loss, net of tax
Exchange difference on translation of financial statements of foreign operations	1,109	(756)	937	2,231
Tota l other comprehensive income for the period, net of tax (d)	1,062	(930)	776	1,890
Total comprehensive income for the period [(c) + (d))	6,869	5,858	1,649	17,040
Profit for the period attributable to :
Eq uity shareholders of the Company	5,803	6,783	822	14,959
Non controll ing Interest	4	5	51	191
Other comprehensive income attributable to :
Equity shareholders of the Company	1,062	(930)	780	1,898
Non controlling Interest			(4)	(8)
Total comprehensive income for the period attributable to:
Equity shareholders of the Company	6,865	5,853	1,602	16,857
Non controll ing Interest	4	5	47	183
Paid-up equity share capital (face value of Re 1/- each)	3,054	3,054	3,054	3,054
Other equity as per balance sheet				1,37,296
Earnin!s per share {Rs.)
Earnings per equity share (for continuing operations)
Basic and Di luted (Rs.)	1.90 • ~	2.29 •	0.26 •	5.06
Earnings per equity share (for discontinued operations)
Basic and Diluted (Rs.) - -		• (0.06) *	0.01 •	(0.15)
Earnings per equity share (for continuing an~iscontinued operations)
Basic and Diluted (Rs.)	1.90 •	2.23 •	0.27 •	4.91
I• Not annualised

Usha Martin Limited

Consolidated segment information

(Amounts in Rs . Lakhs unless otherwise stated)
Particulars	Quarter ended 30th June, 2021	Quarter ended 31st March, 2021	Quarter ended 30th June, 2020	Year ended 31st March, 2021
	Unaudited	---- - Audited (Refer note 8) I	Unaudited	Audited
Segment Revenue
Wire & Wire Ropes	59,014	62,726	36,267	2,00,408
Others	2,516	2,567	1,351	9,320
Revenue from Continuing operations	61,530	65,293	37,618	2,09,728
Segment Results
Profit for the period before tax and finance costs from Continuing operations
Wire & Wire Ropes	9,085	10,646	3,279	27,374
Others	252	210	30	730
Total	9,337	10,856	3,309	28,104
Less:
Finance costs	1,170	1,356	1,563	5,690
Other Uni llocab le Expen~iture /Jlncom~ ) (r:!_et)	1,315	1,480	452	3,635
~rofi~ b~fo~e ta~ for_!he period from continuin~ ope@~n_s	6,852	8,020	1,294	18,779
Discontinued operations (Refer note 3) Profit /(loss) for the period from discontinued operations before tax		(179)	21	(444)
Total Profit before tax and share of Joint Venture	6,852	7,841	1,315	18,335
Segment Assets
Wire & Wire Ropes	2,26, 184	2,17,179	2,02,662	2,17,179
Others	7,066	7,318	6,607	7,318
Unallocated	35,423	36,033	43,095	36,033
Tota I Assets	2,68,673	2,60,530	2,52,364	2,60,530
Segment Liabilities
Wire & Wire Ropes	49,958	52,639	42,136	52,639
Others	2,915	3,525	2,445	3,525
Unallocat ed	68,228	63,658	80,010	63,658
Total Liabi lities	1,21,101	1,19,822	1,24,591	1,19,822

Note:

The Group has been organised into business units based on its products and services and has two reportable segments, as follows:

(a) Wire & Wire Ropes segment which manufactures and sells steel wires, strands, wire ropes, cord, related accessories, etc

\$ usha martin

Usha Martin Limited

Notes to Financial Results

• 1. The above consolidated results of Usha Martin Limited ("the Company") and its nineteen subsidiaries (including ten step-down subsidiaries) (together referred as 'the Group') and three joint ventures (including one step-down joint venture) for the quarter ended June 30, 2021 have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on July 28, 2021.
• 1. The unaudited consolidated financial results have been prepared in accordance with the recognition and measurement principles provided in Indian Accounting Standard (Ind AS) 34 on 'Interim Financial Reporting', the provisions of the Companies Act, 2013 (the Act), as appl icable and guidelines issued by the Securities and Exchange Boa rd of India (SEBI) under SEBI (Listing Obligations and Disclosu re Requirements) Regulation 2015, as amended.
• 1. Pursuant to the Business Transfer Agreement dated September 22, 2018 (Novation agreement on October 24, 2018) and Supplemental Business Transfer Agreement dated April 7, 2019 and July 3, 2019 respectively with Tata Steel Long Prod ucts Limit ed (TSLPL) [formerly known as Tata Sponge Iron Limited], the Company had transferred its Steel and Bright Bar Busi ness (SBB Business) as a going concern on slump sa le basis during the quarter ended June 30, 2019 in accordance with the terms and conditions set out in those agreements at a consideration of Rs . 452,500 lakhs subject to net working capita l adjustments. Out of the aforesaid consid eration, an amount of Rs . 16,000 lakhs are 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 TSLPL pending completion of ongoing formalities for registration in the name of TSLPL. During the quarter ended June 30, 2021, the Company and TSLPL has ente red into a final settlement of net working ca pital, resultant impact of which is recognised in these financial results and sha ll be adjusted at the time of release of above hold back amount.

The details of discontinued operations for preceding and correspond ing (period) quarters and for the year ended March 31, 2021 are as follows :

(Amounts in Rs. Lakhs)
------------------------	--

Particulars	Quarter ended 31st March, 2021	Quarter ended 30th June, 2020	Year ended 31st March, 2021
	Audited __ (~ef_e r note Bl _	Unaudited	Audited
Total income @	1,287	1,575	3,222
Tota I expenses #	1,~6 +;--	_ 1,5~4- _	~ 66
Total p-rofit l (loss) for the periocHrom aiscontinued ooeratio_ns ~ fore tax	(179)	21	(444)

@ Primarily includes liabilities / provisions no longer required written back pertaining to discontinued business

Prima rily includes expenses incurred during the period/year in connection with recovery of dues / settlement of obligations pertaining to the assets / liabilities of the discontinued business and transfer of remaining assets to TSLPL, as mentioned above.

4(a) The Directorate of Enforcement, Patna ("ED") had issued an order dated August 9, 2019 under the provisions of Prevention of Money Laundering Act, 2002 (PMLA) to provisiona lly attach certain parcels of land at Ra nchi, State of Jha rkhand being used by the Company for its business for a period of 180 days in conn ection with export and domestic sale of iron ore fi nes in prior yea rs aggregating Rs . 19,037 lakhs allegedly in contravention of terms of the mining lease granted to the Company for the iron ore mines situated at Ghatkuri, Jharkhand. The Hon'ble High Court of Jharkhand at Ranchi had, vide orde r dated February 14, 2012, held that the Company has the right to sell the iron ore including fines as per the terms of the mining lease which was in place at that point in time. The Company had paid applicable roya lty and had made necessary disclosures in its returns and reports subm itted to mining authorities. In response to the provisional attachment order, the Company had submitted its reply before the Adjudicating Authority (AA). Subsequently, AA had issued an order by way of which the provisional attachment was confirmed under Section 8(3) of PMLA. Thereafter, the Company filed an appeal before the Appellate Tribunal, New Delhi and successfully obtained a status quo order from the Tribunal on the confirmed attachment order til l the next date of hearing which is now fixed on September 7, 2021. Subsequent to the setting aside of the proceedings before the District and Sessions Court cum Specia l Judge (ED), Patna by the Hon'ble High Court of Patna during the quarter for wa nt of proper jurisdiction, the ED has filed a compla int before t he District and Sessions Judge Cum Special Judge (CBI), Ranchi against the Company and one of its Officers. In response to the said complaint and summons received by the Company and its Officer on June 7, 2021, the Company has filed a quashing petition befo re the Hon'ble Jharkhand High Court. The ongoing ope rations of the Company have not been affected by the aforesaid proceedings. Supported by a legal opinion obtained, management believes that the Company has a strong case in its favour on merit and law. Accordingly, no adjustment to these financial resu lts in this rega rd have been considered necessary by the ma nagement.

\$ usha martin

Usha Martin Limited

Notes to Financial Resu lts

• 4(b) On October 2, 2020, Central Bureau of Investigation (CBI) has filed a First Information Report (FIR) against the Company, its Managing Director and certain Other Officers under the Prevention of Corruption Act, 1988 and the Indian Penal Code, 1860 for allegedly trying to influence ongoing CBI investigation pertaining to the above proceedings. The Company strongly refutes the aforesaid allegations made by the CBI. The matter is under investigation and the designated CBI Court has not taken cognizance of the interim charge sheet filed by the CBI due to lack of sanction which is awaited. The Company has been providing information sought by the CBI in this regard. The Company intends to take such legal measures as may be considered necessary based on the outcome of the ongoing investigation. Supported by a legal opinion obtained, management believes that the Company has a strong case in its favour on merit and law.
• 1. The outbreak of Corona virus (COVID-19) pandemic globally and in India is causing significant disruption and slowdown of economic activity. The Group's operations and revenue during the period were also impacted due to COVID-19. The Group has taken into account the possible impact of COVID-19 in preparation of the consolidated financial results, including its assessment of recoverabi lity of the carrying value of property, plant and equipment and investments based on internal and external information upto the date of approval of these consolidated financial results and current indicators of future economic conditions . Further, management has assessed its liquidity position as on June 30, 2021 and does not anticipate any chal lenge in the Group's ability to continue as a going concern. The impact of the pandemic may be different from that as estimated as at the date of approval of these results and the management continues to closely monitor any material changes to future economic conditions.
• 6 The Board of Directors of the Company at its meeting held on May 20, 2021, has approved the scheme of arrangement for capital reduction and reorganisation pursuant to the provisions of Section 230 and other applicable provisions of the Companies Act, 2013 . The scheme will be given effect to on receipt of requisite approvals.
• 7 The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and postemployment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules have not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.
• 1. The figures for the quarter ended March 31, 2021 are the balancing figures between the audited figures for the full financial year and unaudited year to date figures up to the third quarter of the relevant financial year which was subjected to limited review.
• 9 Previous period figures have been regrouped / rearranged wherever necessary, to conform to current period presentation.

Place : Kol kata Dated : July 28, 2021