KERNEX MICROSYSTEMS LTD. (An ISO 9001:2015 Certified Company)

Tel : +91 90300 17501 +91 90300 17502

e-mail: kernex@kernex.ln website: www,kernexoin

KM IUSE/Q3/19-20/179

~ UICAS -­_ ..

CIN: L30007TG1991PLC013211

Registered Office ; 'TECHNOPOLlS', Plot No. 38(Part) to 41, Hardware Technology Park, TSIIC Layout, Imarath Kanch, Raviryal (V), Maheswaram (M), R.R. (Dist.), Hyderabad • 501510. Telangana. India.

oath February'20.

-;-0 --------------------_. ------------------------------ --- -;-0 ------------ ------------------------- ---------------------: The Listing I Compliance Department The BSE Limiled Phiroze Jeejeebhoy Towers Dalal Sireel Mumbai - 400 001

The Listing I Compliance Department National Stock Exchange of India Ltd Plot No_C/l , G Block,Exchange Plaza Bandra - Kurla Complex, Bandra (E) Mumbai - 400051

EiSE ~~rip: ~~~e:)j~if8~ : ::::::: : : : :: : : -------- :_N.SE ~x,;;b~i:: KE@E~ ::: : : : ::::: _:::::::::: _::_:: : Sir I Madam,

Sub: Submission of Un-Audited Financial Results of the Company as per the provisions of SEBI (LODR) Regulations, 2015_

Please find enclosed herewith the following documents in terms of Regulation 33 of SEBI (LODR) Regulations, 2015:

i) Approved the Un-Audited Standalone and Consolidated Financial Results of the Company for the third quarter and nine months ended 31 st December, 2019,

ii) Taken note of the Auditor"s Report on Quarterly Standalone and Consolidated Financial Statements of the Company for the period ended 31 st December, 20 19 as required under Regulation 33 of SEBI (LODR) Regulations, 2015.

Th e meeting of the Board of Directors commence d at 12.00 P. M. and ended on 6 ' () 0 P. M, ~ t1 I. Kindly take the above information on record and acknowledge. {'iIJ· / (J,.7 'I I

Prasada

Compan

KERNEX MICROSYSTEMS LTD. (An ISO 9001:2015 Certified Company)

Tel: +91 90300 17501 +91 90300 17502

e-mail: kernex@kernex.in website: www.kernex.in

KERNEl( MICROSVSTEMS (INDIA) LIMITED

CIN: L30007TGl991PlC013211

Registered OffIce : 'TECHNOP01l5', Plot No. 381Part) to 41, Hardware Technology Park, TSlie layout, Imarath Kanch, Raviryal (V), Maheswaram (M), R.R. 10ist.), Hyderabad - 501510. Telangana. India.

U .... udited STANDALONE Statement of financial results for 1M quarter and 9 months ended l1s1 DK, 2019

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KERNEX MICROSYSTEMS LTD.

Tel: +9190300 17501 +919030017502

e-mail: kernex@kernex.in website: www.kernex.in

Notes:-

(An ISO 9001:2015 Certified Company) CIN: L30007TG1991PLC013211

Registered Office; 'TECHNOPOLlS', Plot No. 38(Part) to 41, Hardware Technology Park, TSIIC Layout. Imarath Kanch. Raviryal (V),

Maheswaram 1M), R.R. (Dist.), Hyderabad - 501 510. Telangana. India.

1. The above un-audited Standalone Financial Results were reviewed and recommended by the Audit Committee and taken on record by the Board of Directors in their meeting held on OSlhFebruary' 2020. The Statutory Auditor of the Company has carried out a limited Review on the above results in terms of Regulation 33 of SEBI (listing Obligations and Disclosure Requirements) Regulations, 2015 as modified by Circular No. CIR/CFD/CMD1/44/2019 dated March 29, 2019.

2. The Company operates in one reportable segment i.e. "Safety Systems for Railways" and hence segment reporting as per Ind AS-lOB is not applicable.

3. These un-audited financial results have been prepared in accordance with the Indian Accounting Standards ("Ind AS") notified under Section 133 of the Companies Act, 2013 read with the Companies (Ind ian Accounting Standards) Rules 2015 as amended and other Accounting Principles generally accepted in India.

4 . Figures for the previous periods have been regrouped/rearranged, wherever considered necessary.

Place Hyderabad

Date osth February 2020

By order of the Board of Directors t ForK.rnex Mlcrosystems (Inala) umue~

~~ (. nll:;~~:~ajU Whole Time dC~~lor

DIN - 07993925

P R S V & Co. LLP Chartered Accountants

202, Saptagiri Residency, 1·1 D-9S/A, Chikoti Gardens. Begumpet, Hyderabad· 500 016 Phone : +91 4066108177/27766881 Telefax : +91 4027766881 E·mail prsvco@gmail.com Website : prsvUp.com

Independent Auditor'S Review Report on the Qua..-terly Unaudited Standa lone and Year to Date Financial Res ults of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regula tions, 2015, 35 amended.

To The Board of Directors of KERN EX MICROSYSTEMS (INDIA) LIMITED

l. We have reviewed the accompanying Statement of unaudited standalone financial results of KERNEX MICROSYSTEMS (INDIA) LlM.ITED for the quarter ended December 3 1. 20 19 (the "statement"), be'ing submined by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing O bl igat ion and Disclosure Requirements) Regulations, 20 15 (' the Regulation ' ) as amended, read with SEBI Circular No.CIRlCFD/CMDI/44flO I9 dated March 29, 20 19 (' the Ci rcular ').

2. This Statement, which has been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34 " Interim Financial Reporting" (" Ind AS 34"), prescribed under Section 133 of the Companies Act, 20 13 read with relevant rules issued there under and othcr accounting principles generally accepted in India, read with the circular is the responsibi li ty of the Company's Management and has been approved by the Board of Directors of the Company. Our responsibility is to issue a report on the Statement based on our review.

3. We conducted our review of the statement in accordance with the Standards on Review Engagements (SRE) 2410 ' Review of Interim Financial Information Performed by the Independent Auditor of the Entity' , issued by tbe Institute of Chartered Accountants of Ind ia. This Standard requires that we plan and perform the review to obtain moderate assurance as to whether the statement is free from material misstatement. A review is limited primarily to inquiries of Company personnel and analytical procedures applied to financial data and thus provides less assurance than an audit. We have not performed an aud it and accordingly, we do not express an audit opinion .

4. Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying statement, prepared in accordance with the aforesaid Indian Accounting Standards prescribed under section 133 of the Companies Act, 2013 read with rule 7 of the Companies (Accounts) Rules, 2014 and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in lerms of the Re ulalion, read with the Circular includin the manner in which it is to be disclosed or that it contains any material misstatements.

s. We draw your attention that the statement whieh indicates the preparation of financial results of the Company on going concern basis for reasons stated therein. The appropriateness of assumption of going concern is dcpcndcOl upon revival of market and consequently the Company's ability to generate sustainable cash flows in future to meet its obligations.

Our report is not modi fi ed in respect of this maner.

For PRSV & Co.LL. P Chartered Accountants -irm Registration No: S20 16

Y.V, k: t'::l~ Partner Membership No: 222068

Place: Hyderabad Date: February 08 , 2020

KERNEX MICROSYSTEMS LTD. (An ISO 9001:2015 Certified Company)

Tel: +91 90300 17501 +91 90300 17502

e-mail : kernex@kernex.in website: www.kernex-in

kERNEX MlCllosvmMS ' INDIA) UMIT£O

lhYudiled CONSOUOATEO SUtem~nt 01 fi .... ncl.' .. s ... 1u fo r 1M qUi rte •• 1Id ') months ended lh! ~ 2019

Q".rw. ended

"rtku~rs 31· Dec·19 3()-Sep-19

U .... udiled Un.udiled

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~el,om~fl""" '.'"'''' r 336_66 928

~~ '*0 ~.lS2 &! 25.667

Total Income 15S9U09 1 4 189l5!W I ---- -- I

!!!~ -- - -Cost of mlte.;.ls consUI'I'I<!d -- - U . 55595 19a !8,!!4

Pur~s 01 stock in I'~ ------ .-~

«in m enlori« 01 fInished loods. ~tk on ~ess ¥ld_sloc. in tt~ 23.54.712 6141.771

,- benefit eo.penw: 1.14.12.501 1.05.89 l 66 , fit\¥OCe COSI l3.lU4I J9.99.~ 1

DeprKYtlon iol'ld iomOttlliolion ~nu 44.47802 4313.443 -Other e. ~H 1.19.24 382 1 2207,200

~P!- - U7 94 947 1 5 Jt),69 209 1

~f P,ofll/IIDIII g l Joint venlure 149,93<1)

~I""S) before ultilOtdinary, eo.cepllonai Items and 11_ 11,82.01.4]7) (1,52 26 ~9)

~dlnary items -~e!.""'l lt.fM 1541416H I

I ~( .. n ! belot.~. _. 13,59,40. 192 11,52,26,50) 1

~nse ~~Iax -(ii) Pfellious yun lio.

liiJ Deferred tax 11,55,900 111,54,83-6 -Net ptDfot/lI .... 1 for tIM! petiod/yeat ll,10, !16 09 2 !1,40,71,711! i

~comph" ... ive in<;ome _______

~ Uems INi I WIll nol be ted<lssili ed 10 Snlernenl 01 Ptoflt ~ lou Iii) In(e>me In telallnlto Items t hat will no'( be teclau,f~IO Stille .... nt 01

~~IO$$ - - . S Iii ft"",s INI WIll be rKlauif~ to !)tateme-nt 01 Pfor~ n .... s

[iii IMome , .. telati", t o il ems ,lIiIl wiI be tKIMS.fied \0 !)tal~nl 01 Profit MId loss

Total cornJ'h.e~ Income - 1)1096092 11,40,71,7131

~'~I.!fI!!..!.ljuitysNit. [£PS) I Patd up [Quity SIlII,e Cip"al Ihee value of R •. IO/· eatll per eqUIty sNi.el I 12,49,96,SSO 124996550

hilt and [);Iuted Ea,,,lo e, ,hare of R"Hl . elKlI _ oru'luolist:d ". 10.97 1-13

CIN:L30007TGl991PlC013211 Re.I5tertd OffIce : 'TECHNOPOLlS', Plot No. 38(Part) to 41,

Hardware Technology Park, TSIIC Layout, Imarath Kanch, Raviryal (V), Maheswaram (M), R.R. (0;$1.), Hyderabad - 501510. Telangana. India.

, ............... Yurended

31·[)«·18 31·0«·19 31-OK-IB n·Ma.·l' UnllUdiled Unaudited Unaudited Audi1ed

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1.08.84.939 , ).27,SO,9oI7 ) ,SO,!1 935 4,9 1 69.232

19042411 22903.429J 64.85679 I,ll I J..Sl9

!)o.65,43O l .ll.97,J.4I I 15111263 210n SW;

4,so.)9.914 1 611J6~6 9.26 .• 7.013 33 8S J7 $61

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/5.68 9,2S1 111.59 11.02

d(;siSTE~ {? .. ~ . -J

KERNEX MICROSYSTEMS LTD.

Tel: +91 90300 17501 +919030017502

e-mail: kernex@kernex.in website: www.kernex.in

Notes:-

(An ISO 9001:2015 Certified Company) CIN: 130007TG1991PlC013211

Registered Office : 'T£CHNOPOll5', Plot No. 38(Part) to 41, Hardware Technology Park, TSIIC Layout, Imarath Kanch, Raviryal (V), Maheswaram (M), R.R. (Oist.), Hyderabad - 501 510. Telangana. India.

1. The above un-audited Consolidated Financial Resu lts were reviewed and recommended by the Audit Committee and taken on record by the Board of . Directors in their meet ing held on OSlkFebruary' 2020. The Statutory Auditor of the Company has carried out a limited Review on the above results in terms of Regulation 33 of seal (listing Obligations and Disc losure Requirements) Regulations, 2015 as mod ified by Circular No. CIR/ CFD/ CMD1/44/ 2019 dated March 29,2019.

2. The Company operates in one reportable segment Le. "Safety Systems for Railways" and hence segment report ing as per lnd AS-lOS is not applicable.

3. These un-audited financial results have been prepared in accordance with the Indian Accounting Standards (" Ind AS" ) notified under Section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Ru les 2015 as amended and other Accounting Principles generally accepted in India.

4. Figures for the previous periods have been regrouped/rearranged, wherever considered necessary.

Place _ Hyderabad __ _

Date osth February 2020

By order of the-Board of-Directors

ForKernex MicrosY:~ms (It: ;:~ /1 '-M.~.frayan/~ju

Whole Time Director

DIN - 07993925

P R 5 V & Co. LLP Chartered Accountants

202, Saptagiri Residency, 1-1 0-9B/A , Chikoti Gardens, Begumpet, Hyderabad - 500 016 Phone : +91 4066108177/27766881 TeJefax : +91 4027766881 E-mait : prsvco@gmaiLcom Website : prsvllp.com

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

To The Board of Directors of KERNEX MJCROSYSTEMS (INDIA) LIMITED

1. We have reviewed the accompanying Statement of Consol idated unaudited financial results of KERNEX MICROSYSTEMS (INDIA) LIMJTED ("the Parent") and its subsidiaries (the Parent and its together referred to as " the Group") for the quarter'ended December 31, 2019 and its share of the net profit after tax and total comprehensive loss of its joint ventures for the quarter (the "statement"), being submitted by the Parent pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 ('the Regulation') as amended, read with SEBI Circu lar No.CrR/CFD/CMDII44120t9 dated March 29, 2019 ('the Circular' ).

2. Th is Statement, which has been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34 "Interim Financial Reporting" ("lnd AS 34"), prescribed under Section 133 of the Companies Act, 20 13 read with relevant rules issued there under and other accounting principles genera lly accepted in India, read with the circular is the responsibility of the Parent's Management and has been approved by the Board of Directors of the Company. Our responsibility is to issue a report on the Statement based on ou r review.

3. We conducted our review of the statement in accordance with the Standards on Review Engagements (SRE) 24\ 0 ' Review of Interim Financial Information Performed by the Independent Auditor of the Entity' , issued by the Institute of Chartered Accountants of India . A

---------rereview-of-intef'im-financia-i-inrormation--eons-ists--of-mak-ing-inquiries-;-primarily-of--personlSs~----­

responsible for financial and accounting matteI's, and applying analytical and other rev iew 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 sign ificant matters that might be identi fied in an audit. Accordingly, we do not express an audit opinion.

We also performed procedures Ln accordance with the circu lar issued by the SEBI under Regulation 33 (8) of the SEB I (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, to the extent applicable.

4. The Statement includes the results of the entities as mentioned in An nexure I.

5. Based on our review conducted and procedures performed as stated in paragraph 3 above and based on the consideration of the review reports of other auditors referred to in paragraph 7 and 8 below, nothi ng has come to our attention that causes us to believe that the accompanyiRg Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standards prescribed under section 133 of the Companies Act, 2013 read with rule 7 of the Companies (Accounts) Rules, 2014 and other accounting principles generally accepted in India, has not disclosed the infonnation required to be disclosed in terms of the Regulation, read with the Circular, including the manner in which it is to be disclosed, or that it contains any material misstatements.

6. Since subsidiary is following Cash basis of accounting, no provision is made toward~ interest of Rs 18.13 lakhs on unsecured loan for the quarter ended December 31 , 2019. The loss of the subsidiary is short reported by Rs 18.13 lakhs for the quarter ended December 3 1, 2019.

7. We did not review the interim financial resu lts and other financial information of 1 whotlyowned subsidiary, included in the consolidated unaud ited financial results, whose interim financia l resuhs and other financial infonnation reflects total revenues of Rs.727.. 13, and t,"aLnet profit after tax of Rs. 4, 01 , 115/~, and total comprehens ive income of Rs . Ni l, for the quarter ended December 31, 2019 as considered in the conso lidated unaudited findllciai results . These interim financial resu lts and other financial infonnation of wholly owned subsidiary have been reviewed by other auditors whose reports have been furnished to us by the management and OUT conclusion on the statement, in so far as it relates to the amou nts and disclosures included in respect of the subsidiary, is based solely on the reports of the other auditors and procedures performed by us as stated in paragraph 3 above. Our conclus ion on the Statement is not modified in respect of the above matter.

8. The consolidated unaudited financial results also includes the Group.'s..~share. of net. profit/(loss) after tax of Rs. Nil and total comprehens ive income/(loss) of Rs. Ni l, for the quarter ended December 31, 20 19, as considered in the conso lidated unaudited financial resu lts, in respect of I Joint venture, based on the ir interim financial resu lts and financial information which have not been reviewed by their auditors_ These finan cials have been approved by the management and furnished to us. According to the infonnation and exp lanation given to us by the Management, these mtenm financial results are not material to the Group_ Our cOllclusron on the Statement is not modified in respect of the above matter.

9. We draw your attention that the statement which indicates the preparation of financial resu lts of the Company on going concern basis for reasons stated there in. The appropriateness of assumption of going concern is dependent upon revival of market and consequently the Company' s ability to generate sustainable cash flows in future to meet its obl igat ions. Our conclusion on the Statement is not modified in respect o f the above matter.

For PRSV & Co.LLP Chartered Accountants

Finn Registmtion No'r

).n~":{~ Partner Membership No: 222068

Place: Hyderabad Date: February 08, 2020

•