VST Industries Ltd. — Interim / Quarterly Report 2021

Apr 27, 2021

April 27, 2021

The General Manager Listing Department BSE Limited Phiroze Jeejeebhoy Towers Dalal Street, Fort Mumbai - 400 001 STOCK CODE: 509966

The Manager Listing Department National Stock Exchange of India Ltd. "Exchange Plaza" Bandra Kurla Complex, Bandra (E) Mumbai - 400051 STOCK SYMBOL: VSTIND

Dear Sir,

Sub: Audited Financial Results

Pursuant to Regulation 33(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 we enclose herewith the statement containing the audited financial results for the quarter and year ended 31st March, 2021 which was considered and approved at the Board Meeting held today. Also, we enclose herewith the following:

• 1. Audit Report issued by Statutory Auditors
• 1. Declaration (Unmodified opinion)

The above information is also available on the website of the Company www.vsthyd.com

The meeting of the Board of Directors commenced at 5.00 p.m. and concluded at 6.15 p.m.

Please take the above on record.

Yours faithfully, For VST INDUSTRIES LIMITED

PHANI Comp Secretary & Head-Legal & Secretarial

Encl : As above

VST Industries LImited Regd Office: AZlimabad, lIydcrllbad - 500 020. Phone: 91-40·1.1688000, hx: 91-40 -lJ615JJ6

	PARTICULARS	ended	3 monthsended	3 monthsended	ended	ended
		31·03-2021	31-12·2020	31·03·2020	31-03·2021
	Other O]lcrating Income
	I~;::;::::'~' from Operations (Gross)
	(1+2)I~
	Changes in inventories offinished goods,
	work·in ·progress and stock·in·trade
	Excise duty
	Employee benefits expense
	I'm" h"r,,, T" (3 ·4)
	-
	6)1~~;:r~::::':0.U not be n:classificd to profit or lossl
	tax relating to items that will not be reclassified to profit or loss
	Items that wilI be reclassified to profit or loss
	Income tax relating to items that will be reclassified to profit or loss
	I Other Comprehensive Income
	I Comprehensive Income (1+&)
	Equity Share Capital (Face Value of~ 10 per Share)
	In Re~('l ~,s
	(on 10/· eneh) (not onnuaHsed)

I. The above mentioned results were reviewed by the Audit Comminee and approved by the Board of Directors at their meeting held on 27th April, 2021.

1. The financial results oflhe Company have been prepared in accordance with Indian Aceounting St:mdards (Ind AS) notified under Section 133 oflhe Companies Act, 2013 read with relevant rules issued thereunder and in terms of Regulation 33 ofthe SED! (Listing Obligations and Disclosure Requirements) Regulations, 201 5 and SEBl cireular dated Sth July, 2016.

2. The Indian parliament has passed and approved the Code on Social Security 2020, however, the effective date of the code and complete clarity on the ru!esJinlerpretations arc still awaited. The Company will evaluate the subject rules once they are notified and recognise the consequent impact, ifany, in its financial stetements in the period in which, the Code becomes effective.

3. The members of the Company hnd approved "VST Employee Stock Option Plan· 2020" (~be Plan? on Sth february, 2021, through postal ballet. The plan envisaged grant of share options to eligible employees in nceordance with Seeurities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014. No stock options have been !;ranted under the Plan up to the period ended 31 st March, 2021.

s. The figures for the quarter ended 31st Mareh, 2021 and 31st March, 2020 arc the balancing figures between the audited figures in respect of the full Jinancial year and the published unaudited year to date figures upto the third quarter of the rcspective financial years.

	As at current	As at previous
Particulars	year end	)'carcnd
	31_03_2021	31-03-2020
I. Non - Curren! Assets
(II) Property, Plant and Equipment
(b) Capital Work.in-Progress
(e) Intangible Assets
Cd) Financial Asscls
(i) Investments
(il) u.mJ3
(iii) Other Finnncial AsseL~
(e) Deferred Tax Assets (net)
(f) Other Non-Current Assets
Sub_total. Non. Currenl Assets
2. Cnrrent Assets
(a) Inventori~s
(b) financial Assets
(i) Investments
(ii) Trade Receivables
(iii) Cash and Cash Equivalents
(iv) Other Bank Balances
(v) Loall~
(vi) Other Financial Assets
(e) Other Current Assets
Sub-tot al_ Current Asscls
TOTAL· ASSETS
EQUITY AND LIABILITIES
1. Equity
(a) Equity Share capital	1544
(b) Other Equity
Sub-tot~l- Equity
2. LIabilitIesNon - Current Liabilities
(a) Provisions
Sub-total- Non - Current LiablllUes
Current Liabilities
(a) Financial Liabilities
0) Trade Payab\cs
- Tola! outstanding dues of micro enterprises and
small enterprises
_ Tota! outstanding dues of creditors other than micro
cnlcl(lIiscs 31111 small 'IJt~Jl'ljSts
(ii) Other Financial Liabilities
(b) Other Current Liabilities
(e) CUTTont Tax Liabilities (net)
Sub-tntal- Current Liabilities

The Company, to the extent possible, has considered the risks that may result from the uncertainity relating to COVlD-19 pandemic and its impact on the carrying nmOUn!S oftrnde receivables, investments, financial instruments and effectiveness of its hedges. Based on the Company's analysis of the current indicators ofthe future economic condition on its business and the estimates used in its financial statements, the Company docs not foresee any material impact in the rceovcrability of the carrying value of the assets. The risk assessment is a continuous process and the Company will continue to monitor the impact oClbe changes in future economic conditions on its business.

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	Statement of Cash Flows		(₹in Lakhs)
		For the current	For the previous
		vear ended	year ended
		31-03-2021	31-03-2020
		(Audited)	(Audited)
	A Cash Flow from Operating Activities
	Profit Before Tax	41730	42025
	Adjustments:
	Depreciation and Amortisation Expense	3507	4176
	Gain on sale of Property, Plant and Equipment (Net)	(1)	(24)
	Unrealised (Gain) / Loss on Exchange (Net)	23	(47)
	Provision no Longer Required Written Back	(529)
	Interest on Loans and Deposits, etc.	(4)	(13)
	Dividend Income	(4)	(4)
	Net gain arising on Investments measured at fair value	(3551)	(4485)
	through profit and loss
	Operating Profit before Working Capital Changes	41171	41628
	Adjustments for Movement in Working Capital:
	Inventories	56	(1589)
	Trade Receivables	(17)	(52)
	Advances and Other Assets	2954	(1262)
	Trade Payables	(1137)	5981
	Other Liabilities and Provisions	(3665)	(1021)
	Cash generated from Operations	39362	43685
	Income Taxes Paid (Net)	(10745)	(10541)
	Net cash from Operating Activities	28617	33144
в	Cash Flow from Investing Activities
	Purchase of Property, Plant and Equipment, Intangibles.etc.	(4637)	(2192)
	Sale of Property, Plant and Equipment		27
	Purchase of Current Investments	(250250)	(344964)
	Sale/Redemption of Current Investments	240479	331635
	Dividend Income from Non-Current Investments
	Interest on Loans and Deposits, etc.		13
	Loans realised
	Net cash from /(used) in Investing Activities	(14397)	(15476)
	C Cash Flow from Financing Activities
	Dividends (including tax thereon) paid on equity shares	(15905)	(17685)
	Net cash used in Financing Activities	(15905)	(17685)
	Net change in eash and eash equivalents	(1685)	(17)
	Opening cash and cash equivalents	2622	2639
	Closing cash and cash equivalents	937	2622

The above Smtement orCash Flow has been prepared under the'

S. The above results ofth~ Company have been audited by the Statutory Auditors, who have issued un unqualified audit report.

1. The Company has a single operuting segment viz. "tobacco and related products", and accordingly, reviews business perfonnance at an overall Company leveL Therefore, tile disclosure as per Ind AS lOS - 'Operating Segmcnt.~' is not applicable.

2. Tile Board of Directors recommend dividend for the financial year 2020-21 _ ~ 114/- (2019-20 _ l: 103/-) per Equity Shure of~ 10 each. The payment is subject to approval of the shareholders althe ensuing Annual General Meeting of the Company.

BY ORDER OF THE BOARD VST INDUSTRIES LIMITED

Place: Hydembad Date: 27th April, 2021

Adityadeb Gooptu;-=_':::"-:::::''':, :::." ..... ADITYA DEB GOOPTU MANAGING DIRECTOR DIN: 07S491O~

B S R & Associates LLP

Chartered Accountants

Salarpuria Knowledge City, Orwell, 8 Wing, 6th Floor, Unitw 3, Sy No. 83/1, Plot No. 02, Raldurg, Hyderabad - 500 081 -India

INDEPENDENT AUDITORS' REPORT

To the Board of Directors ofVST Industries Limited

Report on the audit of the Annual Financial Results

Opinion

We have audited the accompanying annual financial results ("the Statement") of VST Industries Limited (hereinafter refened to as the "Company") for the year ended 31 March 2021, attached herewith, being submitted by the Compauy pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ('Listing Regulations ').

Telephone: Fax:

+914071822000 +914071822399

In our opinion and to the best of our infonnation and according to the explanations given to us, the aforesaid annual financial results:

• a. are presented in accordance with the requirements of Regulation 33 of the Listing Regulations in this regard; and
• b. give a trne and fair view in confonnity with the recognition and measurement principles laid down in the applicable Indian Accounting Standards, and other accounting principles generally accepted in India, of the net profit and other comprehensive income and othe! financial information for the year ended 31 March 2021.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing ("SAs") specified under section 143(10) of the Companies Act, 2013 ("the Act"). Our responsibilities under those SAs are further described in the Auditor's Responsibilities for the Audit of the Annual Financial Results section of our report. We are independent of the Company, in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act, and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained, is sufficient and appropriate to provide a basis for our opinion on the annual financial results.

Management's and Board of Directors' Responsibilities for the Annual Financial Results

These annual financial results have been prepared on the basis of the annual financial statements.

The Company's management and the Board of Directors are responsible for the preparation and presentation of these annual financial results that give a trne and fair view of the net profit and other comprehensive income and other financial infonnation in accordance with the recognition and measurement principles laid down in Indian Accounting Standards prescribed under Section 133 of the

B S R & Associates LLP

INDEPENDENT AUDITORS' REPORT (continued)

Management's and Board of Directors' Responsibilities for the Annual Financial Results (continued)

Act and other acconntitlg principles generally accepted in India and in compliance with Regulation 33 of lhe Li;liug Regulalions. This responsibility also includes maintcnance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring accuracy and completeness of the accounting records, relevant to the preparation and presentation of the annual financial results that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the annual financial results, the Management and the Board of Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, malters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors is responsible for overseeing the Company's financial reporting process

Auditor's Responsibilities for the Audit of the Aunual Financial Results

Our objectives are to obtain reasonable assurance about whether the annual financial results as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAg will always detect a mate.rial miSRtatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these annual financial results.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the annual financial results, whether due to fraud or error, design and perfoffil audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3) (i) of the Act, we are also responsible for expressing our opinion through a separate report on the complete set of financial statements on whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures in the financial results made by the Management and Board of Directors.

B S R & Associates LLP

INDEPENDENT AUDITORS' REPORT (continned)

Auditor's Responsibilities for the Audit of the Annual Financial Results (continued)

• Conclude on the appropriateness of the Management and Board of Directors use of the going concem basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant douht on the appropriateness of this assumption. Ifwe conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the annual financial results or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content ofthe annual financial results, including the disclosures, and whether the annual financial results represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Other Matters

The annual financial results include the results [or the 'lual tel euded 31 MaJch 2021 heing the balancing figure between the audited figures in respect of the full financial year and the published unaudited year to date figures up to the third quarter of the current financial year which were subject to limited review by us.

for B S R & Associates LLP Chartered Accountants Firm's Registration Number: 116231W/w-l00024

SRIRAM Digitally signed by SRI RAM MAHALINGAM MAHALINGAM 0",,2021.04.27 18:03:55 +05'30'

Sriram Mahalingam Partner Membership Number: 049642 UDIN: 21049642AAAABC6391

Place: Hyderabad Date: 27 April 2021

April 27, 2021

To

BSELIMITED NATIONAL STOCK EXCHANGE OF INDIA LIMITED

Dear SirlMadam,

Sub: Declaration pursuant to Regulation 33(3)(d) ofthe Securities & Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015

DECLARATION

I, Anish Gupta, Chief Financial Officer of VST Industries Limited (CIN:L29150TG1930PLC000576) having its Registered Office at Azamabad, Hyderabad 500 020, India, hereby declare that, the Statutory Auditors of the Company, Messrs. BSR & Associates LLP (lCAI Firm Registration No: 116231 W IW -100024) have issued an Audit Report with unmodified opinion on Audited Financial Results of the Company (Standalone) for the quarter and year ended on March 31, 2021.

This Declaration is given in compliance to Regulation 33(3)( d) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended by the SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2016, vide Notification No.SEBI/LAD-NRO/GN/2016-17/001 dated May 25, 2016.

Request you to take this on record.

Yours faithfully VST INDUSTRIES LIMITED

AN~A Chief Financial Officer