VA Tech Wabag Limited — Audit Report / Information 2020

Aug 30, 2020

29th August, 2020

National Stock Exchange of India Limited Exchange Plaza, Plot No. C/1, G Block, Bandra Kuria Complex, Bandra (E), Mumbai — 400 051

BSE Limited, Floor 25, P J Towers, Dalai Street, Mumbai — 400 001

NSE Symbol: WABAG

BSE Scrip Code: 533269

Dear Sir / Madam,

SUB: DISCLOSURE OF RELATED PARTY TRANSACTIONS PURSUANT TO REGULATION 23(9) OF THE SECURITIES AND EXCHANGE BOARD OF INDIA (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015 (" SEBI LODR")

In terms of Regulation 23(9) of the SEBI LODR, please find enclosed herewith disclosures of Related Party Transactions as per the Accounting Standards for the Financial Year ended March 31, 2020.

Kindly note that the Company has published its Audited Standalone and Consolidated Financial Results for the Financial Year ended March 31, 2020 on July 31, 2020.

This disclosure is also being uploaded on the website of the Company i.e. www.wabaq.com

Kindly take on record the same.

Thanking you,

For VA TECH WABAG LIMITED

, "AC wAx".0A1

S AMINATHAN COMPANY SECRETARY Membership No: A17696 Encl: as above

Sustainable solutions, for a better life

VA TECH WABAG LIMITED CIN : L45205TN1995PLC030231 A BAG "WABAG HOUSE" No.17, 200 Feet Thoraipakkam - Pallavaram Main Road, Sunnambu Kolathur, Chennai - 600 117, India.

Board : +91-44-6123 2323 Fax :+91-44-6123 2324 Email : wabag@wabag.in Web : www.wabag.com

(All amounts are in Lakhs of Indian Rupees, unless otherwise stated)

a) Names of related parties and nature of relationship

Nature of relationship	Name of related party
Associates	Windhoek Goreangab Operating Company (Pty) Limited, Namibia
	VA Tech Wabag and Roots Contracting LLC, Qatar
Joint Venture	International Water Treatment LLC, Oman
Key Management Personnel (KMP)	Mr. Rajiv Mittal - Managing Director & Group Chief Executive Officer
	Mr. S Varadarajan - Whole time Director & Chief Growth Officer
	Mr. Bhagwan Dass Narang - Independent director
	Mr. Malay Mukherjee - Independent director
	Mr. Milin Mehta - Independent director (Appointed w.e.f April 29, 2019)
	Ms. Revathi Kasturi - Independent director
	Ms. Vijaya Sampath - Additional director (Appointed w.e.f July 31, 2020)
	Mr. Anil Chandanmal Singhvi - Additional director (Appointed w.e.f July 31, 2020)
	Mr. Sumit Chandwani - Independent director (Ceased to be director w.e.f 13 August 2019)
	Mr. Sandeep Agrawal - Chief Financial Officer- Group (Appointed w.e.f April 29, 2019)
	Mr. Pankaj Sachdeva - Chief Executive Officer- India Cluster
	Mr. G Parthasarathy - Chief Financial Officer- Group (Resigned w.e.f November 09, 2018)
Other Related Party	Mr. Rohan Mittal - Graduate Engineering Trainee, Relative of Managing Director (Appointed w.e.f July 02, 2018)

b) Transactions with related parties

Particulars	March 31, 2020	For the period ended		For the period endedMarch 31, 2019
	Associates	Joint venture *	Associates	Joint venture *
Sales of goods and services	268	-	155	-
Others operating income	-	-	-	-
Other expenses	106	-	16	5
Reimbursements received/ receivable	2	-	-	-

c) Balances with related parties

Particulars		As at March 31, 2020			As at March 31, 2019
	Associates	Joint venture *	KMP and otherrelated party	Associates	Joint venture *	KMP and otherrelated party
Advances/ amount recoverable	72	491	-	209	456	-
Loan to/(from), including interest, and	(68)	(5)	(37)	-	(5)	(829)
amounts (payable)

* Does not include allowances for expected credit losses which have been recognised under trade receivables to the extent of Nil (March 31, 2019- ` 332 Lakhs)

All transactions with these related parties are priced on an arm's length basis. None of the balances are secured.

Note :

The maximum amount of loans outstanding during the year in accordance with Regulation 34(3) of the SEBI(Listing Obligations and Disclosure Requirements) Regulations 2015 are as below :

Mr. Rajiv Mittal- (765) Lakhs (31 March 2019 :(700) Lakhs)

d) Remuneration to Key Management Personnel and Other Related Party :

Particulars	Year ended31 March 2020	Year ended31 March 2019
Salaries including bonus	591	663
Post employment and termination benefits	52	49
Commission	69	65

a) Names of related parties and nature of relationship

Nature of relationship	Name of related party
Subsidiary companies	VA Tech Wabag (Singapore) Pte Ltd, Singapore
	VA Tech Wabag GmbH, Austria
	Wabag Wassertechnik AG, Switzerland
	VA Tech Wabag Deutschland GmbH, Germany
	VA Tech Wabag Brno spol S.R.O, Czech Republic
	Wabag Water Services (Macao) Limited, Macao (Liquidated effective 29 July 2019)
	Wabag Water Services s.r.l., Romania
	VA Tech Wabag Tunisie s.a.r.l, Tunisia
	Ujams Wastewater Treatment Company (Pty) Ltd, Namibia (Disinvested effective 31
	March 2020)
	VA Tech Wabag Su Tecknolojisi Ve Tic A.S, Turkey
	VA Tech Wabag Muscat LLC, Oman
	VA Tech Wabag (Philippines) Inc, Philippines
	VA Tech Wabag Limited Pratibha Industries Limited JV, Nepal
	Wabag Limited, Thailand
	Wabag Operation and Maintenance WLL, Bahrain
	Wabag Muhibbah JV Sdn Bhd, Malaysia
	Wabag Belhasa JV WLL, Bahrain
	VA Tech Wabag and Roots Contracting LLC, Qatar
	VA Tech Wabag Brazil Servicos De Agua E Saneamento LTDA (Incorporated
	effective 08 March 2018)
	Ganga STP Project Private Limited (Incorporated effective 05 April 2019)
	DK Sewage Project Private Limited (Incorporated effective 26 September 2019)
Associate	Windhoek Goreangab Operating Company (Pty) Limited, Namibia
	VA Tech Wabag and Roots Contracting LLC, Qatar
	Thoothukudi Renew Waters Private Limited
Joint Venture	International Water Treatment LLC, Oman
Key Managerial Personnel (KMP)	Mr. Rajiv Mittal - Managing Director & Group Chief Executive Officer
	Mr. S Varadarajan - Whole Time Director & Chief Growth Officer
	Mr. Bhagwan Dass Narang - Independent director, Chairman
	Mr. Malay Mukherjee - Independent director
	Mr. Milin Mehta - Independent director (Appointed w.e.f April 29, 2019)
	Ms. Revathi Kasturi - Independent director
	Ms. Vijaya Sampath - Additional director (Appointed w.e.f July 31, 2020)
	Mr. Anil Chandanmal Singhvi - Additional director (Appointed w.e.f July 31, 2020)
	Mr. Sumit Chandwani - Independent director (Ceased to be director w.e.f 13 August
	2019)
	Mr. Sandeep Agrawal - Chief Financial Officer (Appointed w.e.f April 29, 2019)
	Mr. Pankaj Sachdeva - Chief Executive Officer
	Mr. G Parthasarathy - Chief Financial Officer- Group (Resigned w.e.f November 09,
	2018)
Other Related Party	Mr. Rohan Mittal-Graduate Engineering Trainee, Relative of Managing Director
	(Appointed w.e.f July 02, 2018)

VA Tech Wabag Limited

For the year ended 31 March 2020 Related party disclosure-Standalone basis

(All amounts are in Lakhs of Indian Rupees)

b) Transactions with related parties		Year ended 31 March 2020					Year ended 31 March 2019
Particulars	Subsidiaries	Associates	Joint venture	KMP and otherrelated party	Subsidiaries	Associates	Joint venture	KMP and otherrelated party
Sale of goods/services	10,562	187	-	-	3,851	84	-	-
Purchase of goods/services	9,802	-	-	-	19,199	-	(332)	-
Others operating income#	(319)	-	-	-	1,031	-	-	-
Other expenses*	1,449	106	-	-	2,121	16	337	-
Reimbursements received/receivable	288	2	-	-	208	-	-	-

Includes * bad and doubtful debts, net and # reversals amounting to 1,707 lakhs (31 March 2019 1,483 Lakhs) towards subsidiaries and * bad and doubtful debts, net towards Joint venture amounting to Nil (31 March 2019 ` 332 Lakhs)

c) Balances with related parties		As at 31 March 2020					As at 31 March 2019
Particulars	Subsidiaries	Associates	Joint venture	KMP and otherrelated party	Subsidiaries	Associates	Joint venture	KMP and otherrelated party
Advances/ amount recoverable	14,288	-	168	-	11,267	-	124	-
Loan to/(from) including interest and amounts payable	298	-	-	(37)	274	-	-	(829)
Creditors/payables	9,376	68	5	-	6,689	-	5	-

All transactions with these related parties are priced on an arm's length basis. None of the balances are secured.

Note:

The maximum amount of Loans and advances in the nature of Loans outstanding during the year in accordance with Regulation 34(3) of the SEBI(Listing Obligations and Disclosure Requirements) Regulations 2015 is as below:

i) Wabag Limited, Thailand - 271 Lakhs (31 March 2019 260 Lakhs) ii) Mr. Rajiv Mittal - (765 Lakhs) (31 March 2019 : (700 Lakhs))

d) List of guarantees

		As at 31 March 2020					As at 31 March 2019
Purpose of Guarantee	Subsidiaries	Associates	Joint venture	KMP and otherrelated party	Subsidiaries	Associates	Joint venture	KMP and otherrelated party
Corporate guarantee for securing banking lines*	10,174	-	-	-	20,916	-	-	-
Bank guarantee for contract performance#	11,972	590	-	-	11,421	1,011	-	-
Bank guarantee for warranty#	-	-	1,310	-	-	-	1,216	-

*As at 31 March 2020, underlying borrowings in the books of subsidiaries amounts to 4,145 Lakhs (31 March 2019: 12,802 Lakhs)

Subsequent to the year ended 31 March 2020, Bank guarantees issued for subsidiaries and joint venture towards contract performance and warranty amounting to 5,902 Lakhs and 1,310 Lakhs respectively, have been released.

e) Remuneration to Key Managerial Personnel and Other Related Parties

Particulars	Year ended 31March 2020	Year ended 31March 2019
Salaries including bonus	591	663
Post employment and termination benefits	52	49
Commission	69	65