Vascon Engineers Limited — Interim / Quarterly Report 2021

Aug 14, 2021

Date: August 14, 2021

To, National Stock Exchange of India Limited, Listing Department, Exchange Plaza, Sandra (E), Mumbai - 400 051

Ref Symbol: VASCONEQ

To,

BSE Limited, The Department of Corporate Services Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai 400 001

Ref: Scrip Code: 533156

Subject: Financial Results for the Quarter ended June 30, 2021.

Dear Sir I Madam,

The Board of Directors of Vas con Engineers Limited, in their meeting commenced at 1120 hours and concluded at 1239 hours on August 14, 2021 have discussed and approved the following:

1. Approved and taken on record Unaudited Financial Results (Standalone and Consolidated) of the Company for the quarter ended June 30, 2021 as per the format prescribed under Regulation 33 SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('LODR') along with limited review report from Auditors. (As enclosed).

This is for your information and records.

Thanking you,

For Vascon Engineers Limited !Yr

Dr. Santosh Sundararajan Whole Time Director and Group CEO

VASCON ENGIN E ERS LTD.

Registered & Corporate Office: Vascon Welkfield Chambers, Behind Hotet Novotel, Opposite Hyatt Hotel, Pune Nagar Road, Pune Maharashtra, lndia,411 01 Tel.: +91 20 3056 2100/200/300, Fax: +91 20 3056 2600, Web: www.vascon.com

CIN:L70100PN1986PLC175750

Sharp & Tan nan Associates

Chartered Ar:countants 802, Lloyds Chambers, Dr. Ambedkar Road Opp. Ambedkar Bhavan, Pune 411011, INDIA.

• T: + 91 20 2605 0802
• f : +91 20 2605 0803

E: pune.office@sharp-tannan.com

W: www.sharp·tannan.com

Independent Auditor's Limited Review Report on Standalone Unaudited Financial results of Vascon Engineers Limited for the quarter ended 30 June 2021, Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements} Regulations, 2015

To,

The Board of Directors VASCON ENGINEERS LIMITED (CIN: l70100PN1986PLC175750) Pune 411 014.

Introduction

• 1. We have reviewed the accompanying statement of Unaudited Standalone Financial results of VASCON ENGINEERS LIMITED ("the Company") for the quarter ended June 30, 2021, together with notes thereon ("the Statement"), being submitted by t he Company pursuant to the requirement of Regulation 33 of the SEBI (listing Obligations and Disclosure Requirements) Regulations, 2015 as amended ("listing Regulations").
• 1. The Statement, which is the responsibility of the ComtJany's Management and approved by the Company's Board of Directors on August 14, 2021, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 "Interim Financial Reporting"("lnd AS 34"), prescribed under Section 133 of the Companies Act, 2013, as amended ("the Act"), read with relevant rules issued there under and other recognised accounting practices and policies generally accepted in India and Regulation 33 of the Listing Regulations in this regard. Our responsibility is to express a conclusion on the Statement based on our review.

Scope of Review

1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of India ("ICAI"}. 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 subst antially less in scope than an audit conducted in accordance with Standards on Auditing specified under section 143(10} of the Companies Act, 2013 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.

Conclusion

1. Based on our review conducted as stated 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 lnd AS 34 as prescribed under section 133 of the Act and other recognised accounting practices and policies generally accepted in India has not disclosed the information required to be disclosed in terms of Regulation 33 of the Listing Regulations in this regard, including the manner in which it is to be disclosed, or that it contains any material misstatement.

Emphasis of matter

1. We draw attention to Note 5 to the Statement, which describes the management's assessment of economic and social consequences the entity is facing as a result of outbreak of Covid-19 pandemic which is impacting operations of the Company, supply chains, personnel available for work etc.

Our conclusion is not modified in respect of this matter of emphasis.

Other matters

1. Due to the Covid-19 pandemic and the lockdown and other restrictions imposed by the Government and local administration, the review process was carried out based on the remote access and evidence shared digitally.

Our conclusion is not modified in respect of this other matters.

Sharp & Tannan Associates Chartered Accountants Firm's Reg. No. 0109983W Digitally signed by

TIRTHARAJ :r•dby ANNASAHEB ANOIASAHEIIICHOT KHOT ~-:/::;;

Tirtharaj Khot Partner Membership no.(F) 037457 UDIN: 21037457AAAABU5521

Sharp & Tan nan Associates

Chartered Accountants

802, Uoyds Chambers, Dr. Ambedkar Road Opp. Ambedka,· Bhavan, Pune 411011, INDIA.

~ +91 20 2605 0802

F: + 91 20 2605 0803

E: pune.offlce@sharp-tannan.com

Independent Auditor's Umlted Review report on Collla1ifO'RaCIJIWnanclal results of Vascon Engineers limited for the ended June 30, 2021 pursuant to the Regulation 33 of the SEBI (listing Obligations and Disclosure Requirements) Regulations, 2015

To,

The Board of Directors VASCON ENGINEERS LIMITED (CIN: L70100PN1986PLC175750) Pune411 014

Introduction

• 1. We have reviewed the accompanying st atement of Consolidated Unaudited Financial results of the VASCON ENGINEERS LIMITED ( "the Holding Company'') and its subsidiaries (the Holding Company and it s subsidiaries together referred to as "the Group"), which includes Group's share of profit/ (loss) in its associates and joint ventures for the quarter ended June 30, 2021, together with notes thereon ("the Statement" ), being submitted by the Company pursuant t o the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("Listing Regulations").
• 1. The Statement, which is the responsibility of the Parent's Management and approved by the Parent's Board of Directors on August 14, 2021, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, "Interim Financial Reporting" ("lnd AS 34"), prescribed 1.1nder Section 133 of the Companies Act, 2013,("the Act") as amended, read with rules issued there under and other recognised accounting practices and policies generally accepted in India and Regulation 33 of the listing Regulations in this regard. Our responsibility is to express a conclusion on the Statement based on our review.

Scope of review

1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE)2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity'', issued by the Institute of Chartered Accountants of India. This st andard requires that we plan and perform the review to obtain moderate assurance as to whether t he 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 Standards on Auditing specified under section 143(10) of the Companies Act, 2013 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.

2. 'The Statement' Includes the results of the entities mentioned in Annexure A.

Conclusion

1. Based on our review conducted and procedures performed as stated in "Scope of review" paragraph above and based on the consideration of the review report of the other auditor referred in the "other Matters" paragraph below, nothing has come to our attention that causes us to believe that the accompanying statement, prepared in accordance with recognition and measurement principles laid down in lnd AS 34 as prescribed under section 133 of the Act and other recognised accounting practice and principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the Listing Regulations in this regard, including the manner in which it is to be disclosed, or that it contains any material misstatement.

Emphasis of matter

1. We draw attention to Note 5 to the Statement, which describes the management's assessment of economic and social consequences the Group is facing as a result of outbreak of Covid-1~ pandemic which is impacting operations of the Group (including its associate and joint ventures), supply chains, personnel available for work etc.

Our conclusion is not modified in respect of this matter of emphasis.

Other matters

1. We did not review the lnd AS financial statements of five domestic subsidiaries & one foreign step-down subsidiary included in the Statement, whose lnd AS financial statements reflect total revenues of Rs. 85.29 lakhs, total net loss after tax of Rs 0.88 lakhs, total other comprehensive income of Rs 0.88 lakhs for the quarter ended 30 June 2021, as considered in the Statement. The consolidated financial results also include the Group's share of loss after tax of Rs. 75.73 lakhs and total comprehensive loss of Rs. 160.66 lakhs for the quarter ended 30 June 2021, as considered in the Statement, in respect of five joint ventures whose financial statements have not been reviewed by us.

These financial statements I information are not reviewed and have been furnished to us by the Holding company's management and our opinion on the Statement, in so far as it relates to the amounts and disclosures included in respect of these five joint ventures, five subsidiary & one foreign step-down subsidiary, are based solely on such unaudited financial information as certified by management. In our opinion and according to the information and explanations given to us by the Holding company's management, these components are not material to the Group.

Page 2 of4

• 1. One domestic associate is non-operative entities and its financial information as of June 30, 2021 is unaudited. This financial information is provided by the Holding Company's management in whose opinion it is not material to the group.
• 1. Due to the Covid-19 pandemic and the lockdown and other restrictions imposed by the Government and local administration, the review process was carried out based on the remote access and evidence shared digitally

Our conclusion is not modified in respect of these other matters.

Sharp & Tannan Associates Chartered Accountants Firm's Reg. No.: 0109983W Digitally signed by

TIRTHARAJ ANNASAHEB KHOT

Ooglt ... ''~~""'by ~ANHASAHEII I<><OT ~201 01..1• U9.:01 .oncr

TlrtharaJ khot Partner Membership No.: (F) 037457 UDIN: 21037457AAAABV7201

Pune, August 14, 2021

Annexure A to the Independent Auditors' Limited Review Report on consolidated unaudited financial results of Vascon Engineers Limited for quarter ended June 30, 2021

Sr. No.	Name of the related party	Nature of relationship
1.	Vascon Engineers Limited	Parent Company
2.	GMP Technical Solutions Private Limited	Subsidiary Company
3.	Marvel Housing Private Limited	Subsidiary Company
4.	Almet Corporation Limited	Subsidiary Company
5.	Marathwada Realtors Private Limited	Subsidiary Company
6.	Vascon Value Homes Private Limited	Subsidiary Company
7.	Vascon EPC limited (strike of w.e.f. 01/04/2021)	Subsidiary Com an
8.	GMP Technical SoiL•tions Middle East (FZE)(In process of Winding-up)	Step Down Subsidiary
9.	Phoenix Venture	Joint Venture
10.	Cosmos Premises Private Limited	Joint Venture
11.	Ajanta EnterprisE's	Joint Venture
12.	Vascon Saga Construction LLP	Joint Venture
13.	Vascon Qatar WLL	Joint Venture
14.	Mumbai Estates Private Limited	Associat e

Vascon Engineers Limited

CIN: l70100PN1986PLC175750

Registered Office: Vascon Weikfleld chambers . 8ehlnd Novate! Hotel , Opposite Hyatt Hotel, Pune Nagar Road, Pune • 411014 Tel. No. + 91 20 30562100 Fax no. + 91 20 30562600 Website www.vascon.com Email: compllance@vascon.com STATEMENT OF UNAUDITED CONSOLIDATED AND STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE. 2021

Sr.	PARTICULARS		STANDALONE				CONSOLIDATED
No			QuEndedartYeEndeerar				QuEndedarter	YeEndedar
		30thJune,2021	31st Mh,arc2021	30thJune,2020	31st Mh,arc2021	thJu30ne,2021	31st Mh,arc2021	30thJune,2020	t Mh,31sarc2021
		(Unaudit.cl)	(Audited}	(Unaudited)	(Audited)	(Unaudited)	(Audited}	(UnaudHed)	(Audited)
1	Income
	o)Ree fOionratvenurompes	7,506	13.379	3.234	35.723	11.162	18.941	4,335	50688,
	b)Other Income	316	146	319	1.123	340	220	257	1,241
	TotalIncome	7,822	13,525	3,553	36.846	11,502	19,161	4,592	51929,
2	ExpensesI Ca)Coofnsttion Eosta terialsedinc ludinrucxpensesmconsumgoflandstcob)f stPurchk- itradease oocn-	6.937	10.2831	3.283	28.0771	9.286	13.8491	4,025	37.5581
	)Chs ininviesoffinishedodorkindtorcangeengos. wprogressan	(720)	1,123	(379)	2.780	(740)	1.268	()485	2.690
	stockin trade
	d)Emloybenefitspeeexpenses	1.328	869	908	3.390	2.102	1.395	1.512	5.857
	e)CoFinstance	585	524	685	2.451	636	546	765	2.680
	f)Deciationdisatioortpren aa mn expenses	116	197	181	722	248	329	301	1,208
	I g)Other expenses	294	374	1.769	3,112	582	1.571	2. 150	5.811
	TotalExpenses	8,540	13,371	6.447	40.533	12,114	18,959	8,268	80555,
3	I (fits)froOpProlostiomerans	(8)71	154	(4)2,89	(87)3.6	()612	202	()3,676	()3.876
4	I (I AShof ProfitLoss)froJointVeciantutesreomresso					()75	16	(58)	(111)
5	I (fits)for(4)Prolosbee t3+ax	()718	154	(4)2,89	()3,687	(7)68	218	()3,734	()3,987
6	Tax Expenses
	Cu(n)nttaxincludrlier tatiorreesear yeaxa					16
	DeferredTax						(37)		41
7	rofit/ (s)aft()Net Plostax5-6er	(8)71	154	(4)2,89	()3,687	(3)70	255	()3,734	()4.028
8	othCorehsive Ie (OCI)ermpenncom									('Ct
	ssifofiss (f lox)Itethatwill notbclaiedtot or loNet omserepr	65	(I )	(37)	(1)1 1	65	63	()37	(47)
9	Totalrehsive ie (8)7+compenncom1 h	(653)	153	(2. 931)	(3.798)	(638)	318	(3.771)	(4,075)
10	e falffyeTotalrehsive Itheartcompenncomorqueryeararribbleattutato:									'?'e,1'&<1.-·
	Owf the Cners oom	()653	153	(31)2.9	(3.798	()645	286		()4,138	-
	panyNollinintetrotsn congres					7	32	(55)	63
11	ShCal (re)Paid-EquityitoFaValueRs. 101- pshouporepceer	18,214	18.21 4	17.814	18,214	18.214	18,214	17.814	18.214
12	EarniPer Sh(EPS) •ore
	ngsSBasicEPin RNolize			1.6	2.0	0.3
	a)(s.)(d)t annua	(0.40)	0.11	(2)	(5)	(9)	0.15	(2.07)	(2.27)
	b)Dild EPS(in Rs.)(Nolized)utet annua	(9)0.3	0.10	(2)1.6	(5)2.0	(8)0.3	0.14	(7)2.0	(7)2.2
	• Basinddild EPSforall periodt for thndedutec as excepe year eMarch31.2021t olisedorenonnuo

( Rs In lakhs)

Vascon Engineers Limited CIN: l70100PN1986PLC175750

Particulars		STAN	LODANE		CONSOLIDATED
	QuEndedarter				QuEndedarter			YeEndedar
	30thJune2021	31stMarch,2021	30thJune,2020	31stMarch,2021	30thJune2021	31stMarch2021	30thJune2020	31stMarch2021
	(Unaudl!ed)	(Audl!ed)	(Unaudited)	(Audited)	(Unaudited)	(Audl!ed)	(Unaudl!ed)	(Audited)
1. SRentegmevenue
C (Con)EPEnineeriProt andnsttiogngcuremenruc,	7,488	11,183	3,189	29733,	7,488	11.183	3.189	29.733
RealEse Delotattevpmen	18	2,196	45	9905,	61	2.270	74	6,101
fac&S (Sym)MaturingBMBuildiMantstenungnageme	-	-	-	-	3,621	5,688	1,072	15,054
Total	7,506	13,379	3,234	35723,	11 ,170	19,141	4,335	50888,
SelesIntt Rs:er-gmenevenue	-	-	-	-	(8)	()200	-	(200)
Net Sales/Infrotiocomemoperans	7,506	13,379	3,234	35723,	11 '162	18,941	4,335	50688,
	-	-	-	-	-	-	-	-
Set Rlts2.gmenesu
EPC (EnineeriProndCotion)t anstgngcuremenruc,	855	1,619	(1.441)	2,056	855	1.619	(1,402)	2,056
RealEslote Delotevpmen	()114	()310	(65)	()473	()117	()415	()327	(08)1.0
&MafacingBMS (BuildiMaSym)turntstenungnageme	-	-	-	-583	118	144348	(291)	638
Subtotal	741	1,309	(06)1.5	1,	856	1,	(20)2.0	1.686
Less: Finae Costnc	()585	()524	(685)	(1)2,45	(636)	()546	()765	(80)2.6
Othelloblendituff ullobleint or unacaexperenenacacome	(874)	(631)	(703)	(2.819)	(907)	(584)	(949)	(2,993)
TotalProfit befoTarex	(8)71	154	()2,894	(7)3,68	(7)68	218	()3,734	()3,987
	-	-	-	-	-	-	-	-
Set Andliabilitie3.ts agmensses
Sets Atsgmensse
EPC (Enineeri. PndCotion)nt anstgngrocuremeruc	42.085	41.096	34606,	41.096	41360,	40653,	34.063	40653,
RealEse Delotattevpmen	64.250	63.831	68,481	63,831	67216,	66.794	71668,	66794,
Mafacing&BMS (BuildiMaSym)turntstenungnageme	-	-	-	-	14,171	13,479	12,595	13.479
Unallableoc	20279,	19,475	21,681	19.475	11.745	11.071	13.390	11.071
Total	126.614	124402,	124768,	124402,	134492,	131997,	131716,	131.997
SeLiabilitietsgmensEPC (EnineeriProndCotion)t anstcuremenruc	19.356	18.227	17,993	18.227	19,356	18.227	16.340	18.227
gng,RealEse Delotatteven	28532	26702	27914	26.702	28.642	26912	27857	26912
pmMafacing&BMS (BuildiMaSym)turntstenungnageme	,	,-	,-	-	5,481	,5,329	,5,434	,5.329
Unallableoc	-9.801	10.051	9,107	10,051	11,584	11.613	12,283	11,613
Total	57689,	54980,	55014,	54980,	65063,	62081,	61914,	62081,

Notes:

I. The above financial results hove been reviewed by the Audit Committee and approved by the Boord of Directors of the Company at its meeting held on August 14,2021. The Statutory Auditors of the Company hove carried out a Limited Review and expt'essed on unqualified opinion for the quarter ended June 30, 2021.

1. These results hove been prepared in accordance with the Indian Accounting Standards (lnd AS) prescribed under Section 133 of the Companies Act. 2013 and other recognised accounting practices and policies to the extent applicable.

2. The Group has reported segment information as per Indian Accounling Standard 108 "Operating Segments" (lnd AS 108) read with SEBt circular dated 5th July, 2016. The identification of operating segments is consistent with performance assessment and resource allocation by the Chief Operating Decision Maker (CODM). The Company's Chief Operating Decision Maker (CODM) is CEO and Managing Director. Primary reporting business segments ore os follows:

a) Engineering. Procurement and Construction (EPC)

b) Real Estate Development

c ) Manufacturing and BMS (Building Management System)

1. The Group has considered the possible effects that may result from the pandemic relating to COVID-19 on the carrying amounts of receivables. unbilled revenues. goodwill and intangible assets. tn developing the o.ssumptions relating to the possible future uncertainties in the global economic conditions because of this pandemic, the Group. os a t the dole of approval of these financial statements has used internal and extemal sources of information including credit reports and related information. economic forecasts and consensus estimates from mort:et sovrces on the expected future performance of the Group. The Group has performed sensitivity analysis on the assumptions used and based on current estimates expects the carrying amount of these assets will be recovered. The impact of COVID-19 on the Group's financial statements may differ from that eshmoted as at the date of approval of these consoidoted f1t10ncial statements.

2. The Company renegotiated the terms with debenture holders of Zero coupon, rupee denominated unrated unlisted secured non-convertible debentures and agreed for payment off 1641okhs on September 2021 instead of June 2021. During the quarter Company has repaid f 1200 lokhs to the debebture holders.

3. The figures for the preceding quarter ended 31st March. 2021 with respect to financial results ore the balancing figures between audited figures in respect of the full previous financial year 2020-21 and the published year-to-dote figures up to nine months ended 31 sl December. 2020

4. The figures for the corresponding period I year hove been regrouped and rearranged wherever necessary to make them comparable.

Place : Pune

Dote: August 14, 2021

By Order of the Board of D~rectors

Siddharth VoU:- ~ Monag1ng [1irector