Va Tech Wabag Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2021

1. The above results were reviewed by the Audit Committee and were approved and taken on record by the Board at its meeting held on June 05, 2021 and has been audited by the Statutory Auditors of the Company.



2. The Company has reported segment information as per Indian Accounting Standard 108 "Operating Segments" (IND AS 108) read with SEBI’s circular CIR/CFD/FAC/62/2016 dated July 05, 2016. Accordingly, the Company has identified the geographical components as its operating segments for reporting and is consistent with performance assessment and resource allocation by the management. Segment revenue comprises sales and operational income allocable specifically to a segment. Un-allocable expenditure mainly includes employee expense, depreciation, foreign exchange loss and other expenses. Un-allocable income primarily includes other operating income and foreign exchange gain.



3. Figures for the previous periods have been regrouped/reclassified to conform to the figures presented in the current period.
4. The Company has been executing certain projects for Andhra Pradesh Power Generation Corporation Limited (APGENCO) and Telangana State Power Generation Corporation Limited (TSGENCO) as part of a consortium. With financial difficulties faced by other two partners, the Company took over as consortium leader for these projects in 2014-15. Corporate insolvency resolution process was ordered against the erstwhile consortium leader Tecpro Systems Limited ('Tecpro') in 2017-18. The receivables from these projects, net of provision for expected credit losses are as follows:

a) The Company is pursuing legal action to recover an amount of Rs. 6,953 lakhs from Tecpro held under trust. The Company expects to recover these dues through National Company Law Tribunal post the ruling in National Company Law Appellate Tribunal.

b) The Company has completed the project for TSGENCO and is in the process of recovering the receivables and retentions of Rs. 13,697 lakhs. Tecpro is endeavouring to initiate arbitration with TSGENCO. The Company and TSGENCO have challenged the same legally and obtained an interim injunction order against the arbitration proceedings.

c) The receivables and retentions pertaining to APGENCO project of Rs. 22,120 lakhs, are recoverable progressively upon satisfactory completion of the contractual milestones.

d) The COVID-19 pandemic and the Lockdown imposed by the Government, resulted in delays in NCLT & legal proceedings and also impacted the project (c above) progress and collection.