Walchandnagar Industries Ltd — Interim / Quarterly Report 2022

Aug 14, 2021

WALCHANDNAGAR INDUSTRIES LIMITED Walchandnagar: 413 114, Dis! Pune, Maharashtra, India Tel: 02118-307100 I 252 235 Fax: 02118-252 358 Website: www.walchand.com Email: wil@walchand.com

Ref. No. : WIL: SEC: 2021 Date August 14,2021

National Stock Exchange of India Ltd. Corporate Action Department Exchange Plaza, 5th floor, Plot No. C/1, G Block, Bandra Kurla Complex, Bandra (East) Mumbai 400 051. Fax:26598237/38,66418126/25/24 SCRIP CODE: WALCHANNAG

BSE Ltd. Corporate Relations Department 1st floor, New Trading Ring, Rotunda Bldg P.J. Tower, M umbai 400 001. Fax:: 22723121/2039/2037 SCRIP CODE : 507410

Dear Sir(s),

Sub: Un-audited (Reviewed) Financial Results for the Quarter ended June 30, 2021 along with Limited Review Report as on the date issued by Statutory Auditors of the Company.

Ref: Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

We are pleased to inform you that the Board of Directors at its meeting held today i.e. August 14, 2021, approved the Un-audited (Reviewed) Financial Results for the Quarter ended June 30, 2021. A copy of the same along with Limited Review Report of the Un-audited Financial Results for the Quarter ended June 30, 2021 issued by M/ s. Jayesh Sanghrajka & Co. LLP (Statutory Auditors of the Company) are enclosed for your information and record.

The Board Meeting conunenced at 02.00 p.m. and concluded at 03.50 p.m.

This is for your information and record.

Thanking you,

Yours faithfully,

For Walchandnagar Industries Ltd.,

./~~-, J ( ' •,~

G. S. Agrawal Vice President (Legal & Taxation) & Company Secretary

End: As above

WALCHANDNAGAR INDUSTRIES LTD.

Regd. Office: 3, Walchand Terraces, Tardeo Road, Mumbai - 400 034. CIN : L74999MH1908PLC000291

Tel No. : (022) 23612195/96/97 Fax : (022) 23634527, E - mail : investors@walchand.com, Website: www.walchand.com

Unaudited Financial Results for the Quarter ended 30th June, 2021

				(Rs. in Lakhs)
	Quarter ended			Year ended
Particulars	30.06.2021	31.03.2021	30.06.2020	31.03.2021
	1	2	3	4
	(Unaudited)	(Audited)	(Unaudited)	(Audited)
1 Revenue from Operations	5,083	8,131	4,783	32,564
2 Other Income	299	760	134	2,503
3 Total Revenue (1+2)	5,382	8,890	4,917	35,067
Expenditure :
4 Cost of Materials Consumed	2,223	2,401	1,291	9,681
5 Sub-contracting Expenses, Processing Charges and Other Direct Costs	411	563	181	1,535
6 Changes in inventories of finished goods and work-in-progress	(300)	1,405	258	6,648
7 Employees Benefits Expenses	1,930	2,020	2,012	8,139
8 Finance Costs	1,667	1,936	1,903	7,905
9 Depreciation and Amortisation Expenses	570	577	540	2,297
10 Other Expenses	1,075	1,537	984	4,586
11 Total Expenses (4+5+6+7+8+9+10)	7,576	10,439	7,169	40,791
12 Profit/ (Loss) before exceptional items and tax (3-11)	(2,194)	(1,548)	(2,252)	(5,724)
13 Exceptional Items (net)	-	-	-	-
14 Profit/ (Loss) before tax (12-13)	(2,194)	(1,548)	(2,252)	(5,724)
15 Tax expense:
(1) Current tax	-	-	-	-
(2) Deferred tax (asset)/ liability	-	-	-	-
16 Profit/ (Loss) after Tax (14-15)	(2,194)	(1,548)	(2,252)	(5,724)
17 Other Comprehensive Income	125	49	(123)	(13)
18 Total Comprehensive Income for the period	(2,069)	(1,500)	(2,375)	(5,737)
19 Earnings per equity share of face value of ` 2 each
(1) Basic	(5.76)	(4.07)	(5.91)	(15.04)
(2) Diluted	(5.76)	(4.07)	(5.91)	(15.04)

1. The above financial results have been prepared in accordance with Indian Accounting Standard as prescribed under Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standard) Rules, 2015 and the Companies (Indian Accounting Standard) Amendment Rules, 2016.

2. The above Financial Results have been reviewed by the Audit Committee and thereafter approved and taken on record by the Board of Directors at its meeting held on 14 August, 2021.

3.The company is engaged in segments namely Heavy Engineering, Foundry and Machine shop and Others. These segments have been reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker.

1. Inventory includes work in progress of Rs. 2194.21 Lakhs in respect of orders which have been cancelled / put on hold. The Company is of the opinion that no provision is required to be made as on June 30, 2021 as this stock will be either liquidated or diverted to other projects.

5.The COVID-19 lockdown imposed by the Government has materially and adversely affected the supply chain, Production and logistics. The operations during the quarter gathered momentum on account of various relaxations though the recovery has been gradual and partial. Inspite of such relaxations, the results of the company have been negatively impacted. The management has made impact analysis of the lockdown on company's performance during the quarter ended 30th June 2021. Details of the said estimate are as follows:

Sales deferral : Rs. 1816 Lakhs (For F.Y. 2020-21 - Rs. 5646 Lakhs)

Operating Loss Incurred: Rs. 637 Lakhs (For F.Y. 2020-21 Rs. 1694 Lakhs)

The Management has made detailed assessment of Company's liquidity position for the next one year and of the recoverability and carrying values of its assets comprising Property, Plant and Equipment, Intangible assets, Trade receivables and Inventory as at the reporting period and has concluded that there are no material adjustments required in the financial results. Management believes that it has taken into account all the possible impact of known events arising from COVID-19 pandemic in the preparation of the financial results.

6.Figures for the previous periods have been regrouped/reclassified where necessary, to confirm to the current period classification.

For Walchandnagar Industries Limited

Chirag Chakor Doshi Digitally signed by Chirag Chakor Doshi DN: c=IN, o=Personal, title=3696, pseudonym=78ff1eb655a6b9370718acc23940c96feee2e502979ab9 16fe165be951e1b277, postalCode=400026, st=Maharashtra, serialNumber=a1be829b708a90e727ada23f0436694a4191c30bd11 703c2280a9d3c86917447, cn=Chirag Chakor Doshi

Chirag C. Doshi Place: Mumbai Managing Director & CEO Date:August 14, 2021 DIN- 00181291

A TRADITION OF ENGINEERING EXCELLENCE

WALCHANDNAGAR INDUSTRIES LTD.

Regd. Office: 3, Walchand Terraces, Tardeo Road, Mumbai - 400 034.

Tel No. : (022) 23612195/96/97 Fax : (022) 23634527, E - mail : investors@walchand.com, Website: www.walchand.com

SEGMENT-WISE REVENUE, RESULTS & CAPITAL EMPLOYED

					(Rs. in Lakhs)
		Quarter ended			Year ended
Particulars		30.06.2021	31.03.2021	30.06.2020	31.03.2021
		1	2	3	4
		(Unaudited)	(Audited)	(Unaudited)	(Audited)
	1 Segment Revenue
	(a) Heavy Engineering	3,864	6,624	4,437	28,116
	(b) Foundry and Machine Shop	827	1,241	219	3,575
	(c) Others	397	355	160	1,042
	Total	5,089	8,221	4,815	32,734
	Less : Inter segment Revenue	6	90	32	170
	Net Sales/Income from Operations	5,083	8,131	4,783	32,564
	# Segment Results
	Profit/(Loss) before Interest and Tax
	(a) Heavy Engineering	(238)	439	(49)	3,028
	(b) Foundry and Machine Shop	(255)	(2)	(228)	(496)
	(c) Others	71	69	(13)	76
	Total	(421)	506	(290)	2,608
	Add: Exceptional Item
	Less : Finance Cost	1,667	1,936	1,903	7,905
	Less - Other unallocable expenditure net of unallocable Income	106	118	60	427
	Less - Exceptional Item	-	-	-	-
	Profit/(Loss) Before Tax	(2,194)	(1,548)	(2,252)	(5,724)
	# Capital Employed
	Segment Assets
	(a) Heavy Engineering	84,505	85,440	92,488	85,440
	(b) Foundry and Machine Shop	4,752	4,940	4,875	4,940
	(c) Others	4,303	4,193	4,411	4,193
	(d) Unallocated	1,293	1,230	1,095	1,230
	(A)	94,853	95,803	1,02,869	95,803
	Less : Liabilities
	(a) Heavy Engineering	71,183	70,299	73,801	70,299
	(b) Foundry and Machine Shop	2,394	2,159	2,085	2,159
	(c) Others	490	411	634	411
	(d) Unallocated	1,686	1,763	1,819	1,763
	(B)	75,752	74,632	78,339	74,632
	Total (A-B)	19,101	21,171	24,530	21,171
	For Walchandnagar Industries Limited

Chirag Digitally signed by Chirag Chakor Doshi DN: c=IN, o=Personal, title=3696,

Chakor Doshi serialNumber=a1be829b708a90e727ada23f0436694a4191c30b Date: 2021.08.14 15:57:02 +05'30'

Chirag C. Doshi

Place: Mumbai Managing Director & CEO Date:August 14, 2021 DIN- 00181291

A TRADITION OF ENGINEERING EXCELLENCE

Chartered Accountants

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

To, The Board of Directors Walchandnagar Industries Limited

• 1. We have reviewed the accompanying statement of unaudited financial results of Walchandnagar Industries Limited (the "Company") for the quarter ended June 30, 2021 (the "Statement") attached herewith, being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulation").
• 1. This Statement, which is the responsibility of the Company's Management and approved by the Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, (lnd AS 34) "Interim Financial Reporting" prescribed under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued there-under 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 Engagement (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 standard requires that we plan and perform the review to obtain moderate assurance as to whether the financial statements are free of material misstatement. A review of interim financial information consists of making inquiries, primarily of persons responsible for the 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 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.
• 1. Based on our review conducted as above and subject to the possible effects of the matter described in Emphasis of Matter paragraph, 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 the aforesaid Indian Accounting Standards ("Ind AS") specified under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued there-under and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of the r l

Head Office : WWW.JSandCO.In

Affiliates Offices : Ahmedabad, Bangalore, Chennai, Delhi, Guwahati, Hyderabad, Indore, Jaipur, Koehl, Kolkata, Delhi, Patna, Silchar, Sillguri and Thiruvananthapuram.

Jayesh Sanghrajka & Co LLP

Chartered Accountants

Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement

Emphasis of Matter Paragraph

Attention is invited to Note No. 4 of the published results regarding non-moving inventory of work in progress amounting to ~ 2194.21 Lakhs on account of orders which have been cancelled/ put on hold. The company contends that this inventory will either be liquidated or diverted to other projects without any loss arising there from.

Our conclusion on the statement is not modified in respect of the above matter.

For Jayesh Sanghrajka & Co. LLP Chartered Accountants ICAI Firm Registration Number: 104184W /W100075

c)P~

Ash ish Sheth Designated Partner Membership No.: 107162

UDIN:21107162AAAABL1453

Place: Mumbai Date: August 14, 2021

Head Office : 405 - 408, Hind Rajasthan Building, · Dadasaheb Phalke Road, Dadar (E), Mumbai - 400 014. Branch Offices at Vashl and Kanjurmarg +91 22 40774602 infO@jsandco.in www.jsandco.in

Affiliates Offices : Ahmedabad, Bangalore, Chennai, Delhi, Guwahat1, Hyderabad, Indore, Jaipur, Koehl, Kolkata, Delhi, Patna, Silchar, Siliguri and Thiruvananthapuram.