Siemens Ltd. - Quarterly/Annual Result Disclosures and Notes dated 30 Sep 2020

1. The Company has adopted Ind AS 116 'Leases' (Ind AS 116) as at 1 October 2019, using modified retrospective approach.

The above approach has resulted in a recognition of Lease liability of Rs.2,029 million and Right-of-Use asset amounting to Rs.1,976 million on the date of initial application.

Right-of-use assets includes:

a)Reclassification of finance lease assets under erstwhile lease standard, amounting to Rs.167 million earlier reported under property, plant and equipment,

b)Reduction relating to accrued lease payments amounting to Rs.124 million,

c)Reduction in respect of certain Right-of-Use assets where IND AS 116 has been applied since the lease commencement date and the difference between Right-of-Use assets and Lease liability amounting to Rs.72 million (net of deferred tax asset Rs.24 million) has been reduced from retained earnings.



2.The Company's operations and financial results have been adversely impacted by the lockdown imposed to contain the spread of Coronavirus (COVID-19) since last week of March 2020.The operations gradually resumed with requisite precautions during the quarter ended 30 June 2020 with limited availability of workforce and disrupted supply chain. Consequently, the results for the year were affected.

The expenses incurred during shutdown and partial shutdown in respect of factories and project sites for continuing operations were as under:

For the Quarter ended 30th June 2020, Total expenses Rs. 2,076 million comprised of Employee benefits expense Rs. 1,248 million, Depreciation and amortisation expense Rs. 423 million, Other expenses Rs. 405 million.

For the Year ended 30th September 2020, Total expenses Rs. 2,847 million comprised of Employee benefits expense Rs. 1,689 million, Depreciation and amortisation expense Rs. 609 million, Other expenses Rs. 549 million.

The expenses incurred during shutdown and partial shutdown in respect of factories and project sites for discontinued operations were as under:

For the Quarter ended 30th June 2020, Total expenses Rs. 232 million comprised of Employee benefits expense Rs. 114 million, Depreciation and amortisation expense Rs. 55 million, Other expenses Rs. 63 million.

For the Year ended 30th September 2020, Total expenses Rs. 335 million comprised of Employee benefits expense Rs. 153 million, Depreciation and amortisation expense Rs. 81 million, Other expenses Rs. 101 million.



3.The Board of Directors at its meeting held on 26 August 2020, approved the sale and transfer of the Company's Mechanical Drives (MD) business (included in Portfolio Companies Segment of the Company) to Flender Drives Private Limited, a subsidiary of Flender GmbH, which in turn is a subsidiary of Siemens AG, Germany as a going concern on a slump sale basis, with effect from 1 January 2021, for a consideration of Rs.4,400 million, subject to adjustment for the change in net current assets and capital expenditure, subsequent to 30 June 2020 upto the date of actual transfer of the MD business. This is subject to receipt of requisite statutory and regulatory approvals, as applicable and fulfilment of conditions precedent as agreed between the parties. The results of the MD business included in the above financial results and segment are as follows:



For the Quarter ended 30th September 2020, Total Income Rs.2,136 million, Total Expenses Rs. 2,221 million, Loss before tax from discontinued operations Rs.75 million, Tax Credit Rs.20 million and resulting Loss after tax from discontinued operations is Rs.55 million;

For the Quarter ended 30th June 2020, Total Income Rs.1,121 million, Total Expenses Rs. 1,266 million, Loss before tax from discontinued operations Rs.145 million, Tax Expense Rs.2 million and resulting Loss after tax from discontinued operations is Rs.147 million;

For the Quarter ended 30th September 2019, Total Income Rs.2,530 million, Total Expenses Rs. 2,808 million, Loss before tax from discontinued operations Rs.278 million, Tax Credit Rs.88 million and resulting Loss after tax from discontinued operations is Rs.190 million;

For the Year ended 30th September 2020, Total Income Rs.6,715 million, Total Expenses Rs. 6,728 million, Loss before tax from discontinued operations Rs.13 million, Tax Credit Rs.4 million and resulting Loss after tax from discontinued operations is Rs.9 million;

For the Year ended 30th September 2019, Total Income Rs.6,840 million, Total Expenses Rs. 7,387 million, Loss before tax from discontinued operations Rs.547 million, Tax Credit Rs.185 million and resulting Loss after tax from discontinued operations is Rs.362 million.

for complete breakup and disclosure refer quick results published.



4.The Company has entered into definitive agreements for the acquisition of 99.22% (approximately) of the paid-up equity share capital of C&S Electric Limited from its promoters for an estimated value of Rs.21,200 million subject to adjustments and receipt of requisite regulatory approvals and fulfilment of conditions precedent as agreed between the parties.



5.Pursuant to rationalisation of operations in Digital Industries and Portfolio Companies segments of the Company, Employee benefits expense for year ended 30 September 2019 include a charge of Rs.753 million.



6.During the year ended 30 September 2019, the Company had transferred and assigned its leasehold interest in the property located at Halol Industrial Area, Phase III (Plot I-B and Plot I-C), Gujarat for a consideration of Rs.1,935 million to LM Wind Power Blades (India) Private Limited. Accordingly, profit on the transaction amounting to Rs.473 million is included under "Other income" for the quarter and year ended 30 September 2019.



7.The Company had opted for lower corporate tax rate available under section 115BAA of the Income-tax Act,1961 as introduced by Taxation Laws (Amendment) Ordinance, 2019. Accordingly, the Company had re-measured its deferred tax assets and a charge of Rs.741 million had been provided during the quarter and year ended 30 September 2019.



8.The Board of Directors have recommended a dividend of Rs.7 per share for the year ended 30 September 2020 amounting to Rs.2,493 million.



9.The figures for the quarter ended 30 September 2020 and 30 September 2019 are the balancing figures between the audited figures in respect of the full financial year and the unaudited nine months figures as reported by the Company.



10.The above Standalone financial results were reviewed and approved by the Audit Committee and Board of Directors at their meeting held on 25 November 2020.



11.Previous period figures have been regrouped / reclassified wherever necessary, to conform to current period classification.
1. Published results are for the annual year ended 30 September 2020, hence Cash flow statement given is for 12 months ended 30 September 2020.



2. In cash flow statement, aggregate movement of current and non-current balance sheet items are shown under current tabs as the cash flow statement published with financial results is having total movements. Please refer published quick results for complete disclosure.





3. Loss before tax from discontinued operation for the year ended 30 September 2020 is Rs.13 million, In cash flow statement that adjustment is shown under “Other adjustment to reconcile profit (loss)”. Please refer published quick results for complete disclosure.