LAVA International Limited Unlisted Shares

Annual Report Summary

The 13th Annual Report of Lava International Ltd. for the year ended March 31, 2022, presents both standalone and consolidated financial results.

1. Financial Performance (Rs. in Millions)

• Standalone: Revenue from operations increased by 12.7% to Rs. 18,222.36 Million. Profit before tax stood at Rs. 564.06 Million.
• Consolidated: Revenue increased by 6.6% to Rs. 58,776.45 Million. Profit before tax stood at Rs. 2,031.11 Million. | Particulars | 2021-22 | 2020-21 | 2021-22 | 2020-21 | | :------------------------ | :------- | :------- | :------- | :------- | | | Standalone | Standalone | Consolidated | Consolidated | | Revenue from Operations | 18,222.36 | 16,166.82 | 58,776.45 | 55,128.74 | | Other Income | 201.17 | 98.47 | 203.68 | 108.04 | | Total Revenue | 18,423.53 | 16,265.29 | 58,980.13 | 55,236.78 | | Total Expense | 17,356.47 | 15,234.87 | 55,539.75 | 52,724.63 | | Earnings before interest, tax, depreciation and amortization (EBIDTA) | 1,067.06 | 1,030.42 | 3,440.38 | 2,512.15 | | Less: Depreciation and amortization expenses | 194.83 | 226.51 | 967.14 | 390.37 | | Less: Finance Cost | 308.17 | 285.09 | 441.17 | 285.76 | | Profit before Tax (PBT) | 564.06 | 518.82 | 2,031.11 | 1,834.29 | | Less: Current Tax | 261.30 | 332.56 | 265.13 | 332.67 | | Profit for the year (PAT) | 405.49 | 414.40 | 1,868.66 | 1,726.08 | | Total Comprehensive income (net of tax) | 405.44 | 413.17 | 2,130.12 | 1,560.21 |

2. Business Operations & Performance:

• Lava International deals in mobile phones, tablets, and communication equipment.
• The company purchased 15,000 equity shares aggregating to 100% of the issued and paid-up share capital of China Bird Centroamerica S.A. from Clipper Global S.A. for a consideration of USD 50.54 million.
• On September 16, 2021, the company issued 27,888,492 equity shares to Clipper Global S.A. for the China Bird Centroamerica S.A. acquisition.

3. Changes in Business and Dividend:

• There were no changes in the nature of the company's business.
• The Board does not recommend any dividend for the financial year 2021-22, as the company intends to utilize funds for operations and projects.

4. Reserves and Share Capital:

• Rs. 25 Million were transferred to Debenture Redemption Reserve.
• The authorized share capital was increased to Rs. 3,961,000,000.
• A stock split of one equity share of Rs. 10 into two shares of Rs. 5 each occurred.
• Several allotments of equity shares were made, including rights issues, an allotment to UNIC Memory Technology Limited, and a bonus issue.

5. Non-Convertible Debentures (NCDs):

• The Company issued 250 NCDs with a face value of Rs. 10,00,000 each, totaling Rs. 25,00,00,000, on a private placement basis on September 27, 2021.
• Axis Trustee Services Limited serves as the Debenture Trustee.

6. Subsidiary Companies:

• The company had 9 direct subsidiaries with 26 further direct/indirect subsidiaries, 1 joint venture, and 1 associate company as of March 31, 2022.
• Details regarding subsidiaries' financial performance are available in Form AOC-1 (Annexure "A") and on the company website.

7. Directors and Key Personnel:

• The Board comprised Hari Om Rai, Shailendra Nath Rai, Sunil Bhalla, Vishal Sehgal, Vinod Rai, Rahul Kansal, Chitra Gouri Lal, and Vinod Shrama.
• Vinod Sharma was appointed as an Additional Director.
• Mr. Shailendra Rai and Mr. Sunil Bhalla retired by rotation.
• Naveen Kumar was appointed as Company Secretary & Compliance Officer.
• Asitava Bose resigned as Chief Financial Officer, succeeded by Nirav Girishbhai Raval, who later ceased to be CFO, and Asitava Bose was re-appointed.

8. Board Meetings and Committees:

• Thirteen Board meetings were held during the year, ensuring compliance with the Companies Act, 2013.
• The company constituted Audit Committee, Nomination, Remuneration and Compensation Committee, Corporate Social Responsibility Committee, IPO Committee, Risk Management Committee and Operational Committee.

9. Other Key Points:

• The Annual Return will be available on the company website.
• The company did not accept any public deposits.
• The company has complied with applicable Secretarial Standards issued by the Institute of the Company Secretaries of India.
• Board Evaluation was carried out as mandated.
• M/s ASA & Associates LLP were appointed as Statutory Auditors for 5 years.
• M/s Kumar Wadhwa & Company were appointed as Secretarial Auditors.
• Cost Audit is applicable. M/s. MM & Associates, Cost Accountants were appointed as Cost Auditors.
• The company has a Corporate Social Responsibility (CSR) Committee. A total amount of Rs. 81,00,000 was spent towards the CSR.
• The company's properties are adequately insured.
• The company has adequate internal financial controls.
• There were no material changes and commitments affecting the financial position.
• The company has a Prevention of Sexual Harassment policy in place and a Vigil Mechanism policy.
• The company has a Risk Management Policy.
• Details of outstanding stock options under ESOP Plans are detailed in Annexure-E.

The report is signed by Hari Om Rai (Chairman) and includes annexures detailing subsidiary financials, audit reports, and CSR activities. The Independent Auditors' Report by ASA & Associates LLP expresses an unqualified opinion on the standalone financial statements, subject to considerations about internal financial controls and compliance with accounting standards.