Walchandnagar Industries Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2022

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 30th May, 2022.



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.



4. 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 March 31, 2022 as this stock will be either liquidated or diverted to other projects.



5. Loan instalment due towards KKR India Financial Services Private Limited (Corporate Loan) Rs. 4,064.52 Lacs and KKR India Debt Opportunity Fund II (NCD) Rs. 1,300.00 Lacs totalling to Rs. 5,364.52 Lacs remain unpaid as on 31st March 2022. Interest on KKR India Financial Services Private Limited (Corporate Loan) and KKR India Debt Opportunity Fund II (NCD) for the year ended on 31st March, 2022 is due but not paid amounting to Rs. 666.54 Lakhs for Q4 of FY 2021-22. Total default of loan and interest as on 31st March, 2022 is Rs. 6,031.05 Lakhs.



6. During the year, KKR had invoked 95,09,918 equity shares of promoters group shareholders for total sale consideration of Rs. 5419 Lakhs and the proceeds were adjusted against its loan balances. The Company has treated these invoked amounts of promoter group shareholders as long-term unsecured Loan. These loans will be settled in future either by way of repayment or by way of issue of equity shares/warrants with necessary approvals from shareholders and in compliance with the provisions of the Companies Act & SEBI regulations.



7. KKRIFSL has assigned entire debts (including loans and NCDs) due from the company along with underlying financial documents together with the lenders rights, benefits and obligations to Assets Care and Reconstruction Enterprise Limited (ACRE) vide assignment agreements dated 13.04.2022 and 18.04.2022, as per the intimation received from ACRE.



8. The COVID-19 outspread and lockdown due to it, have materially and adversely affected the supply chain, Production and logistics during lockdown period in Q-1, as a result, the Company’s operating results have been negatively impacted with sales deferral of Rs 1816 lacs and operating loss of Rs 637 lacs. There is no financial impact due to Covid-19 in Q-2, Q-3 & Q-4. 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.



9. The figures for the quarter ended March 31, 2022 and March 31, 2021 are balancing figures between the audited figures in respect of the full financial year and the published year to date figures up to the third quarter of the relevant financial year.



10. Profit Before Tax (PBT) of F.Y. 2021-22 includes Rs.1589 lakh towards profit on Sale of property situated at Walchand House, Karve Road Pune.



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