LUDHIANA-141010, PUNJAB T: +91-161-2228943-48 F: +91-161-2601048, 2222616, 2601040 |= [email protected]

Ref. VSSL:SCY:MAY:2021-22 Dated: 13-May-2021

SUB: DISCLOSURE UNDER REGULATION 30 & 33 OF SEBI LISTII NG OF LIGATIONS

Dear Sir,

Pursuant to Regulation 30 seal with Part A of Schedule III and Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements), Regulations 2015, we are SnietaSIne herewith Audited Financial Results of the Company for the financial year ended 31° March, 2021 together with Auditors' Report as approved by Board of Directors in its meeting held on 13" May, 2021.

The Board of Directors has recommended a dividend of Rs. 1.50 per share on fully paid up equity shares of the Company. The payment of dividend is subject to approval by the Members of the Company and shall be paid/ dispatched tentatively within five days of the conclusion of the Annual General Meeting.

The Report of Auditors is with unmodified opinion with respect to the Audited Financial Results of the Company for the financial year ended 31°* March, 2021.

The meeting of the Board of Directors commenced at 10:00 a.m. and concluded at 3:35 p.m. ,

Kindly note and display the notice on your notice Board for the: information of the members of your exchange and general public.

Thanking you,

Yours faithfully, For VARDHMAN SPECIAL STEELS LIMITED

Company Secré

YARNS | FABRICS | THREADS | GARMENTS | FIBRES | STEELS

Regd.Office Vardhman Premises, Chandigarh Road, Ludhiana-141010 Corporate Identity Number (CIN): L27100PB2010PLC033930, PAN: AADCV4812B

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Regd. Office Vardhman Premises, Chandigarh Road, Ludhiana-141010 Corporate Identity Number (CIN): L27100PB2010PLC033930, PAN: AADCV4812B Website: www.vardhmansteel.com Email: [email protected]

• | The Company is eligible for incentive of Electricity Duty among other incentives under the Punjab State Government's Fiscal Incentives for Industrial Promotion Policy (R) 2015 for its expansions completed up to 31 March 2016. Further, the Company is also eligible for claiming incentives under the Industrial and Business Development Policy 2017 of the Punjab State Government. Pursuant to the necessary approvals from the competent authorities, the Company has recorded Rs. 60.33 lakhs in the current quarter, Rs. 72.09 lakhs in the preceeding quarter ended 31 December 2020 and Rs. 373.46 lakhs in the year ended 31 March 2021 as compared to Rs. 20.62 lakhs and Rs. 482.32 lakhs in the quarter ended 31 March 2020 and year ended 31 March 2020 respectively under the head "Other income" towards incentive of Electricity Duty & Infrastructure Development Cess exemption. Other incentives will be considered post sanction /assessment /approval by appropriate authority.
• 2 Punjab State Power Corporation Limited (PSPCL), vide its circular number 17/2020 dated 18 April 2020, gave a Public Notice offering its consumers of all categories to make advance payment towards their estimated electricity bills up to March 2021 to the extent they can and earn interest @ 1% per month on advance payment. The Company decided to opt for the scheme and deposited the advance with electricity department considering Company's consumption levels. Accordingly, the Company has recorded accrued interest income of Rs, 51.50 lakhs in the quarter ended 31 March 2021, Rs. 129.88 lakhs in the preceeding quarter ended 31 December 2020 and Rs, 377,90 lakhs in the year ended 31 March 2021 respectively under the head "Other income".
• 1. The Company is engaged in the single operating segment "Steel".

• 4 The Company has considered the possible effects that may result from the pandemic relating to COVID-19 in the preparation of these audited financial results including but not limited to the recoverability of carrying amounts of financial and non-financial assets, its assessment of liquidity and going concern assumption. In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of this pandemic, the Company has, at the date of approval of these audited financial results, used internal and external sources of information and expects that the carrying amount of these assets will be recovered.

• 5 Pursuant to its application to the Ministry of Environment, Forest and Climate Change (MoEFC) New Delhi, seeking permission to increase its manufacturing capacity of rolled products from 2,00,000 TPA to 2,80,000 TPA, the Company has been advised to maintain greenbelt equivalent to minimum 33% of the total land area. In order to comply this stipulation, the Company has demolished some of the buildings and accordingly, the Company has recognised loss on asset retirement of Rs. 213.36 lakhs and has also written off capital work-in-progress (building) of Rs. 122.29 lakhs in the Statement of Profit and Loss during the quarter ended 31 March 2021. Further, the Company has identified some of the additional building space for demolishing and considered these to be no longer usable. Accordingly, management has accelerated the depreciation rate and has reduced the carrying value to Rs. Nil on the related buildings resulting in accelerated depreciation of Rs. 343.88 lakhs during the quarter ended 31 March 2021. The Company is in continuous engagement with the MoEFC and expects to receive the necessary permission in the near future.

• 6 Pursuant to SEBI circular No. SEBI/HO/DDHS/DDHS/CIR/P/2019/115 dated 22 October 2019, the Company has listed secured commercial papers (CP's) on various dates on BSE limited (BSE).

• iii) Debt service coverage ratio (DSCR) = (EBIDTA)/(finance costs+Scheduled principal repayment of long term debts)
• iv) Interest service coverage ratio (ISCR) = (EBIDTA)/finance costs

Regd.Office Vardhman Premises, Chandigarh Road, Ludhiana-141010 Corporate Identity Number (CIN): L27100PB2010PLC033930, PAN: AADCV4812B Website: www.vardhmansteel.com Email: [email protected]

⁷The Indian Parliament has approved the Code on Social Security, 2020 in the Official Gazette on 29 September 2020. The effective date from which the changes are applicable is yet to be notified and the final rules are yet to be framed. The Company will carry out an evaluation of the impact and record the same in the financial statements in the period in which the Code becomes effective and the related rules are published.

Annexure BI

The Company will take the requisite measures as stipulated within the timelines prescribed in the SEBI Circular SEBI/HO/DDHS/CIR/P/2018/144,

The Board has recommended a dividend of Rs. 1.50 per equity share of Rs. 10 each fully paid up amounting to Rs. 607.61 lakhs, subject to approval in the Annual General Meeting.

The figures for the last quarter ended 31 March 2021 and the corresponding quarter ended in the previous year, as reported in these Annual Financial Results, are the balancing figures between audited figures in respect of the full financial year and the published year to date figures upto the end of third quarter of the relevant financial year. Also, the figures upto the end of the third quarter had only been reviewed and not subject to audit.

The above Audited Financial Results as reviewed by the Audit Committee have been approved at the meeting of the Board of Directors held on 13 May 2021. The Audit Report of the Statutory Auditors is being filed with the BSE Limited and the National Stock Exchange of India Limited, For more details, visit the Investor Service section under the Media section of the Company's website at www.vardhmansteel.com and Financial Results at corporate section of www.bseindia.com and www.nseindia.com.

For and on behalf of the Board of Directors of

Vardhman Special Steels Limited Forte <| Sachit Jain

Vice Chairman & Managing Director

Date : 13 May 2021 Place: Ludhiana

BSR&Co. LLP

Chartered Accountants

Unit No. A505 (A), Telephone: + 91 172 664 4000 sth Floor, Plot No.178-179A, Fax: + 91 172 664 4004 Industrial & Business Park, Phase -1, Chandigarh-i60002

INDEPENDENT AUDITORS' REPORT

TO THE BOARD OF DIRECTORS OF VARDHMAN SPECIAL STEELS LIMITED

Report on the audit of the Annual Financial Results

Opinion

(hereinafter We have audited referred the accompanying annual financial results of Vardhman Special Steels Limited submitted by the Company to as the ""Company") for the year ended 31 March 2021, attached herewith, being (Listing Obligations pursuant to the requirement of Regulation 33 and Regulation 52 of the SEBI Regulations'). and Disclosure Requirements) Regulations, 2015, as amended (Listing

aforesaid In our opinion annual and financial to the best of our information and according to the explanations given to us, the results:

• a. Regulations are presented in accordance with the requirements of Regulation 33 and Regulation 52 of the Listing in this regard: and

Basis for Opinion

We 143(10) conducted of the our Companies audit in accordance with the Standards on Auditing ("SAs") specified under section described in the Auditor's Act, 2013 ("the Act"). Our responsibilities under those SAs are further report. We are independent Responsibilities for the Audit of the Annual Financial Results section of our Institute of Chartered Accountants of the Company, in accordance with the Code of Ethics issued by the our audit of the financial of India together with the ethical requirements that are relevant to have fulfilled our other ethical statements under the provisions of the Act, and the Rules thereunder, and we Ethics. We believe that the responsibilities in accordance with these requirements and the Code of basis for our opinion on the audit annual evidence we have obtained, is sufficient and appropriate to provide a financial results.

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Principal Office: BS R & Co. (a partnership firm with Registration No. BA61223) converted into B SR &Co. LLP 14th Floor, Central B Wing and North C Wing, Nesco IT Park 4, Nesco

Management's and Board of Directors' Responsibilities for the Annual Financial Results

These annual financial results have been prepared on the basis of the annual financial statements.

The Company's Management and the Board of Directors are responsible for the preparation and presentation of these annual financial results that give a true and fair view of the net profit and other comprehensive income and other financial information in accordance with the recognition and measurement principles laid down in Indian Accounting Standards prescribed under Section 133 of the Act and other accounting principles generally accepted in India and in compliance with Regulation 33 and Regulation 52 of the Listing Regulations. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring accuracy and completeness of the accounting records, relevant to the preparation and presentation of the annual financial results that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the annual financial results, the Management and the Board of Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do SO,

The Board of Directors is responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Annual Financial Results

Our objectives are to obtain reasonable assurance about whether the annual financial results as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these annual financial results.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

= Identify and assess the risks of material misstatement of the annual financial results, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

BSR&Co. LLP

• * Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3) (i) of the Act, we are also responsible for expressing our opinion through a separate report on the complete set of financial statements on whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
• " Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures in the financial results made by the Management and Board of Directors.
• ⁼Conclude on the appropriateness of the Management and Board of Directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the appropriateness of this assumption. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the annual financial results or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• " Evaluate the overall presentation, structure and content of the annual financial results, including the disclosures, and whether the annual financial results represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Other Matters

The annual financial results include the results for the quarter ended 31 March 2021 being the balancing to figure between the audited figures in respect of the full financial year and the published unaudited year date figures up to the third quarter of the current financial year which were subject to limited review by us.

For BS R & Co. LLP Chartered Accountants Firm Registration No.: 101248W/W-100022

¢ Belay

Gaurav Mahajan Partner Place: Chandigarh Membership No.: 507857 Date: 13 May 2021 ICAI UDIN : 21507857AAAAAP5618