SGCO & Co.LLP Chartered Accountants To , The Board of Direc tors Spray Engineering Devi ces Limi t ed . Plot No. 25 , Industrial men phnsc II Chandigarh - 160002 Subject : - UDIN num ber for the A uditor s report on Consolidated financial statements for the year ended 31 st March , 2019 . Dear Sir , This is to inform you that UDIN number 19044739AAAAKQ5805 generated on 11th October , 2019 for A uditors report on above mentioned Consoli dated financial statements of the Company signed on 20 th S eptember , 2019 . For S G C 0 & Co. LLP C hartered A ccount ants Place : Mumbai D3te : 11 1 h October, 2019 4A, Kaledonia , 2 nd Floor , Sahar Road . Near Andheri Stati on , Andheri (East), Mumbai - 400 069 Tel. +91 22 6625 6363 Fax. +91 22 6625 6364 E-mail : info@sgco. co.in www.sgco.co.in Mumbai • Delhi
Transcript
SGCO & Co.LLP Chartered Accountants
To,
The Board of Directors
Spray Engineering Devices Limited .
Plot No. 25, Industrial men phnsc II
Chandigarh - 160002
Subject : - UDIN number for the Auditors report on Consolidated financial statements for the year ended 31st March, 2019.
Dear Sir,
This is to inform you that UDIN number 19044739AAAAKQ5805 generated on 11th October, 2019 for Auditors report on above mentioned Consolidated financial statements of the Company signed on 20th September, 2019.
For S G C 0 & Co. LLP Chartered Accountants
Place: Mumbai D3te: 111h October, 2019
4A, Kaledonia, 2nd Floor, Sahar Road. Near Andheri Station,
To the Members of Spray Engineering Devices Limited
Report on the Audit of the Consolidated Financial Statements
Qualified Opinion
We have audited the accompanying consolidated financial statements of Spray Engineering Devices Limitod (horoinaftor referred to on tho 'Holding Company") and itg gub~idiarie5 (llolding Company d iiU ib subsidiaries together referred to as "the Group"), its associates and jointly controlled entities, which comprise the consolidated Balance Sheet as at March 31, 2019, and the consolidated statement of Profit and Loss, the consolidated cash flows Statement for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies (hereinafter referred to as "the consolidated financial statements").
In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the reports of the other auditors on separate financial statements I consolidated financial statements and on the other financial information of the subsidiaries, associates and joint ventures, the aforesaid consolidated financial statements give the information required by the Companies Act, 2013 ('Act') in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India specified under Section 133 of the Act, of the consolidated state of affairs (consolidated financial position) of the Group and its associates and joint ventures as at 31 March 2019, and its consolidated profit (consolidated financial performance), its consolidated cash flows and the consolidated changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143( 1 0) of the Companies act, 2013. Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the Code of Ethics issued by ICAI together with the ethical requirements that are relevant to our audit of the Consolidated Financial Statements under the provisions of the Act and the rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with the provisions of the Companies Act, 2013. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Attention is drawn to note 31 of the financial statements, wherein the Company has recognized Minimum Alternate Tax ("MAT") credit entitlement under Section 115JM of the Income-tax Act, 1961 and classified the same as short term. Total amount of the MAT credit is Rs. 8,66,39,956 as at March 31, 2019 (Rs 8,66,39,956 as at March 31, 2018). Considering the absence of appropriateness of audit evidence for the utilization of MAT credit entitlement in the upcoming years, we are unable to comment that the management assessment of the recoverability. Accordingly, MAT credit entitlement shown under Shortterm loans and advances would have been lower by Rs 8,66,39,956 and shareholders' funds would have been lower by Rs 8,66,39,956.
lntormat1on Other than the Fin~ncial Statements and Auditor's; Report Thorcon
The Company's Board of Directors is responsible for the other information. The other information comprises the information included Board's Report.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
The Holding Company's Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation and presentation of these consolidated financial statements in term of the requirements of the Companies Act, 2013 that give a true and fair view of the consolidated state of affairs (consolidated financial position), consolidated profit or loss (Consolidated financial performance), and consolidated cash flow~ of the Group including its Associates and Jointly controlled entities in accordance with the accounling principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act. The respective Board of Directors of the companies included in the Group and of its associates and jointly controlled entities are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Group and for preventing and detecting frauds and other irregularities; the 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 financial statements that give a true and fair view and are free from material misstatement, whether due to frau~ or error, which have been used for the purpose of preparation of the consolidated financial statements by the Directors of the Holding Company, as aforesaid.
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In preparing the consolidated financial statements, the respective Board of Directors of the companies included in the Group and of its associates and jointly controlled entities are responsible for assessing the ability of the Group and of its associates and jointly controlled entities to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
The respective Board of Directors of the companies included in the Group and of its associates and jointly controlled entities are responsible for ovr.n;P.P.ina th8 fimmcial reporting procass of the Group QmJ uf ito associates and jointly controlled entities.
Auditor's Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from matarial misstatement, whether due to fraud or error, and to issue an auditor's repot t lltnllra:hllfP.l'i n11r nrlnlnn Reasonable a<J<Juranci ti a high laval of accuranoo, but io 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 consolidated financial statements.
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 consolidated financial statements, 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 intet ttal Guntrul.
• 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 Companies Act, 2013, we are also responsible for expressing our opinion on whether the Group has adequate internal financial controls system 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 made by management.
• Conclude on the appropriateness of management's 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 signif:cant doubt on the ability of the Group and its associates and jointly controlled entities to continue as a going concern. 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 consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
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obtained up to the date of our auditor's report. However, future events or conditions may cause the Group and its associates and jointly controlled entities to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group and its associates and jointly controlled entities to express an opinion on the consolidated finandal slal~lllijlll~. We are responsible for the direction, sup~rvisinn rmrl r P.rfnrmAnce or li te ClUdlt ot the tinancir:~ l ::;tr~tP.mAnt::; nf fillr.h r ntitipc; inrl11rled in thP. coniolid~tid financial nln lomnnlll or whinh we are the independent auditors. For the other entities included in the consolidated financial statements, which have been audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.
We communicate with those charged with governance of the Holding Company and such other entities included in the consolidated financial statements of which we are the independent auditors 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
(a) We did not audit the financial statements I financial information of two subsidiaries, , whosg financial statements I financial information refJP.r.t total assets of Rs. 5,153,429 as at 31st March, 2019, total revenues of Rs. 3,353,868 and net cash flows amounting to Rs. (218,837) for the year ended on that date, as considered in the consolidated financial statements. The consolidated financial statements also include the Group's share of net profit of Rs. 2,679 for the year ended 31st March, 2019, as considered in the consolidated financial statements, . in respect of one associates, whose financial statements I financial information have not been audited by us. These financial statements I financial information have been audited by othe·r auditors whose reports have been furnished to us by the Management and our opinion on the consolidated financial statements, in so far as it relates to the amounts and disclosures included in respect .of these subsidiaries, jointly controlled entities and associates, and our report in terms of subsections (3) and (11) of Section 143 of the Act, in so far as it relates to the aforesaid subsidiaries, jointly controlled entities and associates, is based solely on the reports of the other auditors.
Our opinion on the consolidated financial statements, and our report on Other Legal and Regulatory Requirements below, is not modified in respect of the above matters with respect to our reliance on the
SGCO & Co. LLP Chartered Accounltnts
work done and the reports of the other auditors and the financial statements I financial information certified by the Management.
Report on Other Legal and Regulatory Requirements
1 As required by Section 143(3) of the Act, we report, to the extent applicable, that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our a.udit of the aforesaid consolidated financial statements.
(b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid ~.;utt~vllt.lulu t.l nnwwll:ll statements hr!VP. hP.P.n kr.pt ~o lctr ft-; rl e~ppl:'e~r~ lrurn our examination of thoco bool<c and the reports of the other auditors.
(c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss, and the Consolidated Cash Flow Statement dealt with by this Report are in agreement with the relevant books of account maintained for the purpose of preparation of the consolidated financial statements.
(d) In our opinion, the aforesaid consolidated financial statements comply with the Accounting Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors of the Holding Company as on 31st March, 2019 taken on record by the Board of Directors of the Holding Company and the reports of the
' statutory auditors of its subsidiary companies, associate companies and lointly controlled companies incorporated in India, none of the directors of the Group companies, its associate companies and jointly controlled companies incorporated in India is disqualified as on 31st March, 2019 from being appointed as a director in terms of Section 164 (2) of the Act.
(~ With respect to the adequacy of internal financial controls over financial reporting of the Group and the operating effectiveness of such controls, refer to our separate report in Annexure( B) to the auditor's report
(g) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and /\uditor'c) Rulco, 2014, in our opinion and to the best of out ittfu11rrctliu11 ctrtt.l according to the explanations given to us:
i. The consolidated financial statements disclose the impact of pending litigations on its financial position in its financial statements- Refer Note 28(b) and 28 (c) to the financial statements;
ii. The consolidated financial statements did not have any long-term contracts including derivative contracts for which there were any material foreseeable
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Holding Company, and its subsidiary companies, associate companies and jointly controlled companies incorporated in India.
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Ch3rter~d Atcount~nts
iv. With respect to the matter to be included in the Auditors' Report under section 197(16): In our opinion and according to the information and explanations given to us, the remuneration paid by the Company to its directors during the current year is in accordance with the provisions of Section 197 of the Act. The remuneration paid to any director is not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) which are required to be commented upon by us.
For S G C 0 & Co. LLP
Chartered Accountants
Place : Mumbai
Date : 20-09-2019
SGCO & Co. LLP Chattered Accountant~
Annexure "A" to to the Auditors' Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of
the Companies Act, 2013 ("the Act")
In conjunction with our audit of the consolidated financial statements of the Company as of and for the year
ended Jl Mr~rr.h ?01R, WP. hr~vA ~ttr1i1Pr.1 the int~;;>rn~l financial controls over financial reporting of Spray
Engineering Devices Limited (hereinafter referred to as "the Holding Company") , its subsidiaries and its
associate (the Holding Company, its subsidiaries and associates together referred to as "the Group"), as of
that date.
Management's Responsibility for Internal Financial Controls
The Respective Board of Directors of the Group which are incorporated in India are responsible for
establiEJhinQ and maintaining internal financial controlg b~~~rl nn thP. inlt=!rnaltAtlllt ul uvC~t nmutdal ref.>Orllng
criteria established by the Company considering the essential components of internal control stated in the
Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of
Chartered Accountants of India. These responsibilities include the design, implementation and
maintenance of adequate internal financial controls that were operating effectively for ensuring thP. nrclerly
and efficient conduct of its business, including adherence to company's policies, the safeguarding of its
assets, the prevention and detection of frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation of reliable financial information, as required under the
Companies Act, 2013.
Auditors' Responsibility
Our roaponsibility is to expre5s .:m opiniur1 ur1 llle Currt!Jarty'!> Internal financial cont(ols over trnancral
reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing,
issued by I CAl and deemed to be prescribed under section 143(1 0) of the Companies Act, 2013, to
the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal
Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards
and the Guidance Note require that We comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether adequate internal financial controls over financial
SGCO & Co. LLP Chartered Aeeountants
reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal
financial controls system over financial reporting and their operating effectiveness. Our audit of internal
financial controls over financi~l reporting induu~:~u ulilailliily all urH.JerslcJndlng of Internal financial controls
over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating
thi diiign and operating urfoutivonooo of Internal control based on the ~~~et>sed 1bk Tilt~ piUt.:t~LlUJes
selected depend on the auditor's judgement, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error.
We believe that the audit ividince we have obtained ic ouffioicnt and appropriate to provide ~ b~sis for our
audit opinion on the Company's internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles. A company's internal
financial control over financial reporting includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of. the assets of the company; (2) provitle reasonable assurance that transactions are recorded
as necessary to permit preparation of financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures of the company are being made only in
accordance with authorizations of management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorized acq uisiti~n. use, or disposition of the
company's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the
possibility of collusion or improper management override of controls, material misstatements due to error or
SGCO&Co.LLP Chartered Aceounl~t,
fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls
over financial reporting to future periods are subject to the risk that the internal financial control over
financial reporting may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or p1u~o;~Li u~t:~~ I !lay LleletluralE:l.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system
over financial reporting and such internal financial controls over financial reporting were operating
effectively as at March 31, 2019, based on the internal control over financial reporting criteria established
by the Company considering the essential components of internal control stated in the Guidance Note on
Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India.
For S G C 0 & Co. LLP
Chartered Accountants
Date : 20-09-2019
Spray Engineering Devices L imited CIN - UOOOOOCH2004PLC027625 Consolidated Balance Sheet As at March 31, 2019
Particulars Notes As at Ma r ch 3 1,2019 As at Ma r ch 31,2018 Rs. Rs.
Equity and liabilities S hareholders' funds Share capital 3 221,050,930 22 1,050,930 Reserves and surplus 4 2 16.625,074 270;180,920
The accompanying notes are an integral part of the financial s tatements.
As per our report of even date
For SGCO & Co. LLP
Chartered Accounta nts
S"'uh& Partner Membership No. 44739
Place : Mumba i Date : 20-09-2019
For S pray Engineer ing Devices Limited
~dhir Kumar Jain tr K r JJfJSOivency Professional
rim R 10lli't\SI?IMlre1YI6n~¥'lC0131/"017-18/11457
.. J~ Chief Financial Officer
~ Rinkal Goyal Company Secretary Membership No. A44 109
c~l~h '?.0- OC/ .... ')..0 / q
Spray Engineering Devices Limited CIN- UOOOOOCH2004PLC027625 Consolidated Statement of P rofit and Loss For tbe year ended March 31, 2019
Particulars Notes For the year ended Ma rch For the year ended !II arch
Income Revenue from operations (gross) 17
Less: excise duty . Revenue from operations (net) Other income 18 Total revenue (I}
EXI)CIISC.~
Cost of r.IW matenal and components conswned 19 Purchase of traded goods 20 (lncreaseY decrease in inventories of finished goods, work-in- 2 1 progress and stock-in-trade Employee benefits expense 22 Other expenses 23
Total (II)
Earnings before interest, tax, depreciation and amortization (EBITDA) (I)- (II) Depreciation and amortization expense Finance costs Profit before tax a nd pr ior period items Less : Prior Period Items Less : MAT credit W/off Profit before tax Less : Tax expenses Provision for current tax Taxation of earlier years· Profit for the year
Profit afler Tax before share in profit of associate & Minority Interest
Less Minority Interest Add/Less:- Current year Profit/(Loss) share of Associate Profit for the year
9 24
25
Earnings per equity sha re [nomina l value of s hare Rs.I O 26 (March 31, 2019: Rs. IO))
Basic Computed on the basis of total profitl(loss) for the year Diluted Computed on the basis of total profit/(loss) for the year
Summary of significant accounting policies 2. 1 The accompanying notes are an integral part of the financial statements
As per our report of even date
31, 2019 31, 2018
n.. ns.
580,477,484
580,477,484 63,978,813
644,45Ci,297
282,629,066 14,615,932
( I 2,680, 123)
171,153,966 161,252,663 616,971,503 616,971,503
27,484,793
22,893,117 47,118,546
(42,526,870) 3,701,317
(46,228,187)
2,810 7 627.529
(53,858,526)
(53,858,526)
2,679 (53,855,846)
Rs. -2.44
-2.38
3,179,122,704 20,524,683
3,158,598,021 10,970,125
3,169,568,14b
790,238,744 1,485,164,268
18,70 1,033
217,638,030 515 176,060
3,026.918, 135 3,026,918, 135
142,650,0 I I
23,638,498 58,873,927 60,137,586
2,282,454
57,855,132
2,338,000
55,517,1 32
55,517,132
(37,548) 55,479,584
Rs. 2.51
ForSGCO& Co. LLP Chartered Accountants For Spray Engineering Devices Limited
s.~,,& Partner l\'lembersbip No. 44739
Place : Mumbai Date : 20-09-2019
~AS\rtthir Kumar ~a in Sudhir u ar J n Insolvency ProfeSSIOnal Interim Resolution 'I@"C's\NO"?tal 0 '"1"'=' ~111'\01 ?11?1'17 -1 R/11<1'>""~ )
Chief Financial Officer Rinlml Goyal Company Secretary Membership No. A44109
C.hOJI)ql~ '")_.()- 9- r")...o}q
Spray Encine~ainc Devices Umited C IN- UOOOOOCH200 4P LC027625 Consolidated Cash flow stat~ment For the ye:a.r ended Marc.h 31, 2019
Particulan
Cash now rrom opentin' acthitie:s · Profit before tax
· Non-<asb adjustment to rttoncil~ profic btfore tax to net ush nows · Depreciation/amortization - Bad debts wrinen off · Balance wrinen off - Advances to Suwlier wrinen off (net of Provision) • Provisioo wrinen back oo doubtful debts (net) - Re,.ersal of provision for ESOP -Provision oo doubtful debts & Advances (net) ·'Balances wrinen back - Loss/(profit) on sale or foxed assets • Unrealized foreign exebange gain . Interest expenw.:
· Interest income ()~n~linc, profit before l\"OI"kiuc, ea.ple:tl chan2es
Monments in workioc capital : · lnrr.-'lc,.f(~r .. ·u·e) in ltldl J&yabi CJ
·Increase /(decrease) in long·tenn provisions
·Increase /(deerease) in shon·term provisions · Increase!( decrease) in other current liabilities - D=easel(mcreasc) in trade reeeiwbles · Decrease/(inc.rease) in in\'entories -Decrease /(increase) in long·tenn loans ond advances - D=ease /(increase) in shon·term loans and advances
· Decre3Se/(inc.re3Se) in other current assets Cash tener.ued ft-om /(used in) operations - OirKitonoo paid (n<l uf O<fon.b)
·-Prior Ptriod homo (net) -Taxation of earlier years - Exeptional Items (net) Net cash now from/ (usrd in) opet-:Uinc activities
Cash nows from investio: acth·icies . rucJI4.)-C ur nx~ assetS.lncludang miangable 3SStts :md CWIP
(A)
lm"t.ltmwu ;,, l.uoL llcvu>hs (ba\'lng ongmal matunty of more than three mooths) • Profit oo Sale of Fixed Asset · Interest received Net cash now from/(used in) im•eslin: acti,•ities
l:ash tlOWI from fin.aa~c.iu' a.dh•ltles - Proceeds/(Repayment) of long· term borrowings • Proceeds/(Rep•yment) ofshon·tem> borrowings · Interest paid Net cash Oow fronl/(used in) Ut financ.inc 3cth•ities
·Net inerease/(deerease) in t>sh and t>sh equivalents (A+ B +C)
• Cash and t>sh equivalents at the begiMi~g of the year
Cash and c.ash equh•alents al che end of the year
Compooents of cash and cash equivalents • Cash 00 band
· uu currc!f\t account To cal cash and cash tquivalents (nott 16)
As per our repon of even date For SGCO & Co. UP
(U)
(C)
For lhe year ended March 3 1, 10 19
Rs.
(42,526,870)
22,893,117
71,491
11 ,529,815
0
(113,053)
47,118,547 (1 ,391 ,61?)
.!7,581,436
(103,341,364)
2,666,311
(48,989,792)
119,174,795
88,848,715
( 19)07,071) (1 ,404,990)
5,257,764
(1,655,996)
7fl-129,SOR
14.504.120
(3,701,317)
7,627,529
113,053
81,618,135
S~S.PJS
12,320,745
1,391,612
14,608,292
( 1,554,247)
(47,119,877) (47,118,547)
(95,791,671)
433,755 1,027,670
2,461,415
9G,I7' 2,365,250
2,461,415
2.1
For Spray Engineering Devices Limited
Partner M embersh ip No. 44739
Place : Mumbai Date : 20-09·2019
Chief Financial Officer
pJq c.e D~e
cJ'\O}J)cH ~ ').O - oq ~ 9-0ict
Foa· the year ended March 31,2018
Rs.
60,137,586
23,638,498
36.941,244
249,774
1.960,334
(3,910)
(4,588) (~.Q1~.~6't)
58,873,927 (4,020,973)
170,817,328
(37,126,882)
5,345,967
31,348,708
(224,216,411)
(30,566,887)
(74,416,033) (2,877,000)
64,415,718
76,343,428
(lO,nl,OGJ)
(3,656,118)
(2,282,454)
6,936,564
(19,914,071)
,G,l71.0l9 (17,044,683)
4,588
4,028,973
43,260,917
(28,634,183)
64,052,945 (58,873,927)
(13,455,165)
(118,319)
2,145,989
2,021,610
~7.963
1,939,707
1,017,670
Rinknl Goyal Company Secretary
Membership No. A44109
Spray Engineering Devices Limited Notes to consolidated financial statements for the year ended 31 March 2019
1. Corporate information
Spray Engineering Devices Limited ("SEDL" or "the Company") is a Public Limited Company incorporated on 8th November, 2004. The Company is engaged in the business of manufacturing of Cooling & Condensing System and Specifically Energy Efficient Equipments for the Sugar Industry.
2. Basis of preparation
The Consolidated Financial Statements comprises of the financial statements of Spray Engineering Devices Limited, which are consolidated in accordance with Accounting Standard 21 on \.onsolidflted Finflncifll Statements & Accounting Standard 23 on accounting for Investments in Associates in Consolidated Financial Statements respectively.
The Consolidated Financial Statements relate to Spray Engineering Devices Limited ('The Company') and its
Subsidiaries and Associates have been prepared on the following basis:
i) The financial statements of the Company and its subsidiaries have been combined on a line-by-line
bnJi.5 b. llddine to~cthcr the Lul cu11.~.~ \Jf lik~ i L~ 1 1 1.~ 11f tt.\.~~.-L .~. li ttlJilili~.~ . ,iiiL\1111\, 1111l l I<A II\~IIdilllll< 11fl'' ' fully eliminating the intra-group balances and intra-group transactions resulting in unrealized profit
or loss.
ii) The financial statements of the Company and its associate has ueell aCI..UU IItcJ uuJcJ lllc equity
method as per Accounting standard 23 on accounting for Investments in Associates in Consolidated
Financial Statements
iii) The Consolidated financial Statements have been prepared using uniform accounting policies for like transactions and other events in similar circumstances and are presented to the extent possible, in the
same manner as the Company's separate financial statements.
iv) The excess of cost to the Company of its investments in the subsidiaries over its portion of equity of subsidiaries at the dates they become subsidiaries is recognized in the financial statements as
goodwill.
v) The excess of Company's portion of equity of the subsidiaries over the cost to the Company of its investments at the dates they become subsidiaries is recognized in the financial statements as capital
reserve.
2.1 Summary of Significant Accounting Policies
(a) Use of estimates
The preparation of consolidated financial statements in conformity with Generally Accepted Accounting Principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the financial statements and the rep01ted amounts of revenues and expenses during the reporting period. ·
Difference between actual results and estimates are recognized in the periods in which the results are known/ materialize.
Spray Engineering Devices Limited Notes to consolidated financial statements for the year ended 31 March 2019
(b) Tangible Fixed Assets
Fixed assets are stated at cost (or revalued amounts, as the case may be), less accumulated depreciation and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. BmTowing costs relating to acquisition of fixed assets which takes substantial period of time to get ready for its intended use are also included to the extent they relate to the period till such assets are ready to be put to use.
(c) Depreciation on tangible fixed assets
Depreciation on the Assets acquired at the time of acquisition is provided using the Straight Line Method based on u!:eful life of n~~ct!'l nnrl in the mnnncr spcc.ificd in the Schedule II of the Companies Ad, 2013 tx.l:tpl iu t;a~t uf Muuilt Hamlstl w!ttrt Lltt us~ful In <.:Onsldered as 2 years.
(d) Intangible Assets
Cost of Software
Costs of Software are capitalized and amortized on a straight-line basis over its useful life of three years.
Drawings and Licenses
Drawings and licenses are capitalized and amortized on a straight-line basis over its estimated useful life or three years whichever is lower.
(e) Impairment of tangible and intangible assets
The carrying amount of assets is reviewed at each balance sheet date for any indication of impairment based on internaVexternal factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets net sel ling price and value in use. In assessing value in use, the estiml'ltecl tiJtme: c::~c;h flows Clr~ discounted to their present value at the weighted average cost of capital.
(f) Borrowing Costs
Borrowing costs that a.rt allributablt: lu lht: a<.:quisition of or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended usc. All other borrowing costs are charged to revenue.
(g) Investments
Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognise a decline other than temporary in the value of the investments.
(h) Inventories
Inventories are valued as follows: Raw materials, components, Lower of cosi· and net realizable value. However, materials and other items stores and spares held for use in the production of inventories are not written down below
cost if the finished products in whjch they will be incorrorated are expected to be sold at or above cost. Cost is determined on a weighted average basis. --
Spray Engineering Devices Limited Notes to consolidated financial statements for the year ended 31 March 2019
Work-in-progress and finished Lower of cost and net realizable value. Cost includes direct materials and goods labour and a proportion of manufacturing overheads based on normal
operating capacity. Cost of finished goods includes excise duty. Cost is determined on weighted average basis.
Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and to make the sale.
(i) Revenue recognition
Revenue is recognized to the extent that it is j.JtuLaLit: that tht: t:l:ouumic bt:nefits will flow to the Company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized:
Sale of Goods I scrap
Revenue is recognised in case of traded & manufactured products on dispatch of goods from the factory I other locations when substantial risks & rewards of ownership are transferred to the huyer. Sales are stated net of sales returns. Revenue is shown gross of excise duty and net of sales tax.
Revenue in case of erection & commissioning jobs carried out is recognised on stage of completion as per the terms of related agreements I job orders.
Insurance Claims, export incentives, escalation, etc. are accounted for as and when the estimated amounts recoverable can be reasonably determined as being acceptable to the concerned authorities I patties.
Interest Income
Revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.
G) Foreign currency transactions
(i) l11iliul Rt:cugnitiun
Foreign currency transactions are recorded in the rep01ting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.
(ii) Conversion
Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting date. Non-monetary items, which are measured in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the date of the transaction. Non-monetary items, which are measured at fair value or other similar valuation denominated in a foreign currency, are translated using the exchange rate at the date when such value was determined.
(iii) Exchange Differences
Exchange differences arising on the settlement of monetary items or on reporting Company's monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognised as income or as expenses in the year in which they arise.
Spray Engineering Devices Limited Notes to consolidated financial statements for the year ended 31 March 2019
(k) Income taxes
Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. Defe'rrect income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.
Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future tox.nblc income will be available against which such deferred tax assets can be realist:J. If lht:: Company has carry forward of unabsorbed depreciation and tax losses, deferred tax assets are recognised only if there is virtual certainty that such deferred tax assets can be realised against future taxable profits. 1 lnm:o!!,ni~t:d dt fl·rred tax assetli of earlier years are re-assesseJ a11J rt~uugutt.itld to lht~ mdont that tt ho.'l become reasonably certain that future taxable income will be available against which such deferred tax assets can be realised.
lv1AT credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which the Minimum Alternative ta.x (MAT) credit becomes eligible to be recognized a:s uu usscl iu accordance with the reconunendations contained in GuiJanct:: Note issued by the Institute of Chattered Accountants of India, the said asset is created by way of a credit to the profit and loss account and shown as MAT Credit Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period.
(I) Earnings per Share
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they are entitled to participate in dividends relative to a fully paid equity share during the 1 ciJut tiug .IJCt iuJ. Tltt: wt:iglttt::J a vt::ragt:: uuutbt:r of t:qully shares outstanding during the period is adj usted for events such as bonus issue, bonus element in a rights issue, share split, and reverse shore split (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding change m resources.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.
(m) Provisions & Contingent liabilities
(i) A provisiqn is recognized when the Company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits wi ll be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the report ing date. These estimates are reviewed at each reporting date and adj usted to reflect the current best estimates.
(ii) A contingent liability is a possible obligation !hat arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also ar:ses in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.
~ ~ C'£1- rr~ ~ ~~'.. ~-- I )oSJ'l ~~
Spray Engineering Devices Limited Notes to consolidated financial statements for the year ended 31 March 2019
(n) Leases
Where the Company is the lessee
Finance Lease A leased asset is depreciated on a straight-line basis over the useful li fe of the asset or the useful li fe envisaged in Schedule II to the Companies Act, 2013, whichever is lower. However, if there is no reasonable certainty that the Company will obtain the ownership by the end of the lease term, the capitalized asset is depreciated on a straight-line basis over the shorter of the estimated useful life of the asset, the lease term or the useful life envi~nged i 11 S~Vht:dult: II lu !Itt Curnpunics Act, 20 13.
Operating Lease Leases, wh.ere the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as operating leases. Operating lease payments are recognized as an expense in the statement of profit and loss on a straight-line basis over the lease term.
Where the Company is the lessor
Finance Lease Leases in which the Company transfers substantially all the risks and benefits of ownership of the asset are classified as finance leases. Assets given under finance lease are recognized as a receivable at an amount equal to the net investment in the lease. After initial recognition, the Company apportions lease rentals between the principal repayment and interest income so as to achieve a constant periodic rate of return on the net investment outstanding in respect of the finance lease. The interest income is recogn ized in the statement of profit and loss. Initial direct costs such as legal costs, brokerage costs, etc. are recognized immediately in the statement of profit and loss.
Operating Lease Leases in which the Company does not transfer substantially all the risks and benefits of ownership of the asset are classified as operating leases. Assets subject to operating leases are included in fixed assets. Lease income on an operating lease is recognized in the statement of profit and loss on a straight-line basis over the lease term.· Costs, including depreciation, are recognized as an expense in the statement of profit and loss. Initial direct costs such as legal costs, brokerage costs, etc. are recogn ized immed iately in the statement of profit and IO!;!;.
(o) Retirement Benefits
Retirement benefit in the form of provident fund is a defined contribution scheme. The Company has no obligation, other than the contribution payable to the provident fund. The Company recognizes contribution payable to the provident fund scheme as an expenditure, when an employee renders the related service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognized as a liability after deducting the contribution already paid. If the contribution already paid exceeds the contribution due for services received before the balance sheet date, then excess is recognized as an asset to the extent that the pre payment will lead to, for example, a reduction in future payment or a cash refund.
The Company operates defined benefi t plan for its employee's viz. gratuity. The costs of providing benefits under the plan is determined on the basis of actuarial valuation at each year-end. Actuarial valuation is carried out using the projected unit credit method. Actuarial gains and losses are recognized in full in the period in which they occur in the statement of profit and loss.
Measurement of costs of accumulated leave are provided for based on the actuarial valuation using the projected unit credit method at the year-end. Actuarial gains/losses are immedi ately taken to the statement of profit and loss and are not deferred.
Spray Engineering Devices Limited Notes to consolidated financial statements for the year ended 31 March 2019
(p) Cash and cash equivalents in the cash flow comprise cash at bank and in hand and shott-tenn investments with an original maturity of three months or less.
(q) Employee Stock Compensation Cost
Me.l'lsllrement and disr.losure of the employee share-hased payment plan!: i!: done in nccordnncc with the Guidance Note on Accounting for Employee Share-based Payment<;, iss11ecl hy the Tn.,titnte of Chattered Accountants oflndia. The Company measures compensation cost relating to employee stock options using the fair value method. Compensation expense is amortized over the vesting period of the option on a straight line basis.
(r) Segment Reporting Policies
(i) Identification of segments:
The Company's operating businesses are organized and managed according to the nature of products and predominant source of the risk for the Company is business product, therefore business segment has been considered as primary segment. The analysis of geographical segments is based on the areas in which the Company operates.
(ii) Segment Policies:
The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.
(s) Measurement of EBITDA
As petmitted by the Guidance Note on the Schedule Ill to the Companies Act, 20 13, the Company has elected to present earnings before interest, tax, depreciation and amortization (EBITDA) as a separate line item on the face of the statement of profit and loss. The Company measures EB ITDA on the basis of profit/ (loss) from continuing operations. In its measurement, the Company does not include depreciation and am01tization expense, finance costs and tax expense.
$prav Eneineerine Devices Limited CIN - UOOOOOCH2004PLC027625 Notes to Consolidated fi nancial s tatements for the year ended March 3 1,2019 (Amounts in Rs.)
3. Share capital
Authorized shares 24,050,000 (31 March 2018: 24,050,000) equity shares ofRs.10 each
Issued shares
22,586,781 (31 March 20 18: 22,586,781) equity shares of Rs. l 0 each
Subscribed nod fully paid-up shares 22,586,781 (3 1 March 2018: 22,586,78 1) equity shares of Rs. IO each
I en: A mount Raaovorohlc from Employee WdfAI't T1 u. t 481.688 (31 March 20 I R· 4R l ,nRR ) ".!JIIity shares of!U.10 each (rcfor note 3 1)
Total S ubscribed a nd fullr pa id-up shar~s
As at I\ la rch 31.201 9
240,500,000
225,867,810
225,867,810
{4,8 16,880) 111,050,11JO
As at Ma rch 31 ,20 18
240,500,000
225,867,810
225,867,81 0
l4,!1 16,!1!1U) :ni ,050,9JO
a. Reconciliation of the sha res oul~tanrli ne 111 the be2innin1! a nd at the end of the rcportine ncriod Equity shares :
At the beginning of the period Issued during the period Vu~ttJd buck during the period
Oulslandin!! a t the end of the period
b. Terms/ rieh ls attached to equitv shares
As at March 31.2019
No. Rs. 22, 105,093 221 ,050,930
22 JO; 023 221 .0:10.930
As nt Ma rch 3 1, 201R No.
22, 105,484
Jr)l 22 !0 '\ 023
Rs. 221,054,840
J,9 10 221 o;o 230
The Com!Jlllly ' "" vuly vm: d<~.>> urc::4ulty ;,lialt:S liavlrlg pur V!IIUe 01 l<.s.IU per share. l:ach holder of equity shares is entitled to one vote per sh~rc.
In thr event of l iq~iJo~tivu vf tit~ Cuutpuuy, thu huldcr3 oi equity ~h<111;; wtll lie c::ultllt:d tu rt:cclve remaining assets ot the Company, alter distribution of all preferential amounts. The distribution w ill be in orooortion to the number ofequitv shares held bv the shareholders.
d. Details of shareholders holdine more tha n 5% shares in the ComPa nv
Ea uitv shares ofRs. lO each fullv paid Mo. Vivo:k. Vc::uua {Chairman cum Managing Director) Mr. Prateek Verma (Director) New Vemon Pvt. Equity Ltd. Klondikt: Investments Ltd.
As at As at Ma rch 3 1. 20 19 _ _ ____ ......._1\l.._.l a .... r.._..rh 1 1.7018
As per records of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.
4. Rcsenres nnd sur olus
Secul'i tics premium account Closing Balance
Surpln~/{dcficit) in tho statement of profit ond loss Balance a~ per last financial statements Profit for the year ·
Net surplus/{ deficit) in the statement of profit a nd loss
Total reserves a nd sur plus
As at Ma•·ch 31, 20 12
566,657,869
(296, 176,949) (53,855,846)
(350,032,795)
2 I 6,625,07.t
As at Mnrch 3 1, 2018
566,657,869
(351,656,533) 55,479,584
{296,176,9.t9)
270,480,920
Spruy Engineering Devices Limited CIN - UOOOOOCH2004PLC027625 Notes to Consolidated financial s tatements for the year ended ~ larch 31 , 2019
i) Finance lease obligation ofRs. 28,89,497 ( PY 44,43,744) is in respect of various vehicles which are secured by hypothecation of the vehicles fi nanced. All the loans are repayable in 48 equal instalments and carry interest rate ranging from 8.4 1% to 9.40%.
!>U. l>hort l erm Horrowmgs
Secured - Cash credit from banks - Buyer's Credit - Loan from bank against Fixed deposits Unsecured Loans Total
As at ~larch 31,2019
Rs.
209.328,465
58,002 209,386,467
As at 1\larch 31,2018
Rs.
202,008,332 31,516,544 14,000,000 8,981,467
256,506,3H
i) Cash credit limits of Rs. 209,328,465 (31 March 2018 : 202,008,332) and Buyer's Credit (in foreign currency) of Rs Nil ( 31 March, 20 18 31,5 16,544) is secured by first pari passu charge on current assets (existing and future) of the company. Second pari passu charge on entire fixed assets (existing and future) including Land and Building at Plot no. 76, Ind. area, 2250 sq. mtrs. Baddi, HP (Unit- I) and Land and Building at Plot no. 245-246, Ind. area, 1800 sq. mtrs. Baddi, HP (Unit-2) and EMT of Land and Building of No. 395-398 near Coca Cola Factory, Village- Oillanwali, Baddi, Dist.- Solan, HP (Unit-3) and EMT of 4 Flats standing in U1e name of the Company situated at Baddi (HP) fresh security of the Company in favour of Bank of India and Canara Bank.
ii)Securcd loans are further secured by personal guarantee of promoters namely Mr. Vivek Venna, Mr. Prateek Venna.
ii i) Loan from bank against Fixed deposits carries interest @ 14.90%.11le loan is settled against fixed deposit in June 2018 at time of maturity of fixed deposit.
iv) Unsecured Loans obligation Rs 58,002 (PY - Rs 8,981,467/)- taken from various financial institutions and other pa11ies. ·n,e same iu r~payl>le \\ithiu 12 months and carries interest rate ranging from I G % to 17.5%
Spray Engineering Devices Limited CJN • UOOOOOCH2004PLC027625 Notes to Consolidated financial statements for the year ended ~larch 31, 201 9
6. Trade Payables Trade payables - Due to Micro, Small and Medium Enterprises • - Other than Micro, Small and Medium Enterprises
Tite Company had sought confinnation from the vendors whether they fall in the category of Micro ,Small and Medium Enterprises. Based on the infonnation available, the required disclosure f~r Micro, Small and Medium Enterprises under the above Act is given below :
•Disclosures required wtder Sec 22 ofMSMED Act, 2006 (i) the principal amount and the interest due thereon remaining unpaid to any supplier - Principal amount ·Interest ~tereon (Disclosed in other current liability)
(ii) the amowu of interest paid by the buyer in tenns of section 16, along with the amounts of the payment
(iii) the amount of interest due and payable for the year of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under this Act
(iv) the amount of interest accrued and remaining unpaid
(v) The amount of further interest remaining due and payable even in ~te succeeding years, until such date when the interest dues above are actually paid to the small enterprise for the purpose of disallowance as a deductible expenditure tmder section 23 of this ACT
7. Other current liabilities
Current maturities oflong·tenn borrowings (note SA) hucrest accrued but not due on borrowings Advance from customers Salary and reimbursement payable to employees Duties & taxes payable Interest Payable to MSME Others
8. l'rovi5imu
Provision for employee benefits Provision for gratuity (refer note 35) Provision for leave benefits Provision for ESOP expense
Long-term
As at ~larch 31, 2019
15,956,142 3,325,956 1,787,077
As at March 31,2018
15,125,053 3,277,811
As at March 31, 2019
36,054,916 33 1,759,638 .567,1! 14,553
36,054,916 5,339,367
5,339,367
As at March 31,2019
1,897,308 1,603.399
40,839,0 1~
84,201,331 13,269,054 5,339,367
45,223,682 192,373,155
Short-term
As at March 31,2019
1,555,865 310,999
(Amounts in Rs.)
As at March 31, 2018
5,568,527 454,057,515 459,626, 102
5,568,527 2,010,662
2,010,662
As at ~larch 31,20 18
1,554,237 351,147
10,735,169 48,113,401 10,042,660 2,010,662
48,014 72,855,290
As at March 31,2018
1,482,692 357,085
1,866,864 1,839,777 (A)_·------~21~,0~6~9,~1~75~----~1~8~,4~02~,8~6~4----------~~~~----~~~~ Other provisions Provision for warranties (refer note 36)
Sorav Eneineerine Devices Limited CIN- UOOOOOCU2004PLC027625 Notes to Consolidated financia l statements for the vear ended March 31. 201 9
10. Non-current investQlents
Trade investments (valued at cost unless stated othenvise) Unauoted eauitv instruments Investment in associates 25,000 (31 March 2018: 25,000) Equity shares ofRs. lO each fully paid-up in IPROSugar Engineering Private Limited Add: Share of Accumulated Reserves/Profits Add: Share of Current Year Profi t/(Loss)
Others 300,000 (31 March 2018: 300,000) Equity shares of Rs.l 00 each fully paid-up in Sri Saibaba Sugar Limited
Less : Provisions for diminution in value Unquoted Equity Instruments
- S1i Saiboba E:ugnr LilllilcJ
Aggregate [lrovision for diminution in value of investments Non-current investments (net) (A- B)
11. Deferred tax (assets)/liabilitv (net)
l.lderred tax liability
31-Mar-19
250000 1,179.035
2679
Fixed assets: lmpac1 of djfT~rf:nfJ> h!'ll\lf'f"n ,,, doproointicm uuJ J~jJltddl(UIV U111Urt12ahon charged ror the financial re[lOrting Gross deferred tax liability Deferred tax asset Impact of expenditure charged to the statement of profit and loss in the current year but allowed for tax pur(lOses on payment basis Provision fo r doubtful debts and advances Brought forward depreciation Gross deferred tax asset Net deferred tax (assets}/ liability (A - B)*
31-Mar-18
250000 1216583 (37548)
As at March 31.2019
1,431 ,714
30,000,000
(Amounts in Rs.)
As at March 3 1.2018
1,429,035
30,000,000
CAl ________ ~3u1~4~3~1~7~14L---~3~1~.4~29~.~03~5~
• The Company follows Accounting Standard (AS-22) "Accounting for taxes on Income". In view of virtual certainty as laid down by the Standard not being established, the Company has recognized deferred tax assets only to the extent of deferred tax liability as on the balance sheet date.
12. Loans and advances Non-Current Current As at As at As at As at
Mmb~J,,OJ2 Mar~h~J,,OI!l !Harth 3), 2019 IHart h ~ I, 201 !!
Caoital advances Unsecured. considered good 3.858.990 2.800.000
Unsecured, considered good unless s ta ted othet-wise
Non-current bank balances (refer note 16)
Others
Unamortized Expenditure Interest accrued on Margin Money
Interest Accrued But Not Received
Total
IS. Inventories (valued a t lower of cost and net realizable value)
Raw materials and components (includes in transit Rs. 1,21,04,610 (31 March 2018: Rs. 1,32,15,172)
Work-in-progress
Finished goods
Stores and spares Total
16. Cash and bank balances
Cash and cash equivalents
Balances with banks:
-On current accounts
-On unpaid dividend account
Cash on hand
Other bank balances -l\largin money deposit•
Less : Atnowtt disclosed under Non-Current Assets
Total
76,058,002 76,548,267 358,310,662
Non-current Current
As at
March 31,2019
4,331,014
18,853
4,349,867
As a t
March 31, 2018
866239
19,9 13
9,442
895,594
As a t
!\larch 31,2019
539,738
539,738
As at l\larch 31, 2019
202,410,733
142,698,992
16,298,721 10,998,749
372,407,195
Asut March 3 1,2019
2,365,250
96,175
19,384,325
4,331,014
17,514,735
446,740,605
As at
!\'la rch 31,2018
2,338,015
2,338,015
As at !\ larch 3 1,2018
193,395,00 I
139,266,562
7,051,028
12,887,532
352,600,123
As at l\lnrch 3 1, 2018
1,939,708
87,963
35,169,845
866,239
36,331,277
• Margin money deposits with a canying amount ofRs. 19,384,325 (March 31,2018: Rs. 35,169,845) given as security against Loan and nou-fuud limits
sanctioned by banks
Spray Engineering Devices Limited CIN- UOOOOOCH2004PLC027625 Notes to Consolidated financial statements for the year ended March 31 , 2019
17. Revenue from operations
Revenue from operations Sale of products Finished goods Sale of services Other operating revenue Income From Export Incentives Scrap sales
Revenue from UJltratloos (gross)
10. Otltd Income
Interest income on Bank deposits Income tax refund Interest on claim Security Deposit Other non-operating income Insurance income Profit on Sale of Fixed Assets Balances written back (Net) Gain on Foreign Exchange Fluctuation (net)
Total
19. Cost of raw material and components consumed
Inventory at the beginning oflhe year Add: Purchases
Less: inventory at the end of the year Cost of raw material and components consumed
Details of raw ma terial and comJlOnents consumed
- Plate Pack - Gear Box, Motors,Pumps,PHE and Others - SS and MS-Pipes and Tubes
Details of inventory a t the beginning and end of the year Raw materials and components
- Plate Packs - Gear Box, Motors,Pumps,PHE and Others - SS and MS-Pipes and Tubes
20. Purchase of traded goods
Purchases .or traded goods
For the yea r ended lllarch 31, 2019
515,72 1,096 37.333,839
3,947,340 23,475,210
S80,477d8i 5~0.477,48~
Fur the year ended 1\-Jnrch 31 , 2019
1,366,252 2,491 ,193
25,360
639,744
59,343,2 11 113,053
63,978,8 t3
For the year ended March 31,2019
193,395,00 I 291,644,798 485,039,799 202,4 I 0, 733 282,629,066
For the yea r ended March 3 1,2019
15,354,852 93,675,565
173,598,649 282,629,066
For the year ended March 31,2019
36,900,577 64,117,677
101,392,479 202,410,733
For the yea r ended !\lurch 31, 2019
14,615,932
14,615,932
(Amounts in Rs.)
For the year ended March 31, 2018
2,993,397,487 135,779,755
27,899,201 22,041\,261
1, I 1ll111J170 1 3, t79,122,704 -
For the year ended March 3 1,2018
3,119, 11 6
882,297 27,560
4,588
6,936,564
10,970,125
(Amount in Rs.) For the year ended
March 3 1, 2018
162,69 1,396 820,942,349 983,633,745 193,395,00 I 790,238,7~4
For t he yea r ended I\! arch 3 1,2018
5 1,595,322 272,978,631 465,664,792 790,238,744
For the year ended I\! arch 31, 2018
25,893,750 124,003,735 43,497,515
193,395,001
For the year ended 1\larch 3 1,2018
1,485, 164,268
1,485,164,268
21. (lncrease)/decrease in inventories
Inventories a t the end of the year Work-in-progress Finished goods
Inventories a t the beginning of the year Traded goods Work-in-progress Add: Inventories inadvertently capitalized in earlier year
Finished goods
Details of inventories at the beginning and end of the yenr
Work-in-progress Cooline ontl Cunderu;lng ny:Jtcm
Falling 1'1lm Evaporator & Parts PTFFfi Rr Th, ir l'BI'IR
Spray Continuous Pan Sugar Refinery Jaggery machine MVR
Finished goods
Cooling and Condensing system Falling Film Evaporator & Parts Miscellaneous Spray Continuous Pan Sugar Refinery
MVR
For the year ended 1\larch 31,2019
142,698,992 16,298,721
158,997,7 13
139,266,562
139,266,562
7,051,028 146,317,590 (12,680,123)
For the year ended March 3 1,2019
5,636,836
I J,170,1?7 3,942,713 5,396,239 7,5 18,473
74,237,139 32,497,214
1-12,698,991
F01·the year ended March 31,2019
2,760,670 7,847,281
399,032 2,755,137
1,372,778 1,163,824
16,298,722
For the year ended !\larch 31, 2018
139,266,562 7,051,028
146,317,590
103,425,002
56,743,005 160,168,007
4,850,6 16 165,018,623 18,701 ,033
For the year ended March 31, 201.!_
11 ,744,816
!. ,II~~.U I ~
9,212,459 7,666,346
28,38 1,787 74,237,139
139,266,562
For the year ended March 31, 2018
3,916,724 943,225
96,018 833,338
1,261,723
7,051,028
Spray Engineer ing Devices U mited Cf N • UOOOOOC H2004PLC027625 Notes to Consolidated financial sta tements for the y<ar ended March 3 1, 2019
22. Employee benefit expense
Salaries, wages and bonus Director Remunerations Contribution to provident and other fund Gratuity expense (note 35)
Staff welfare expenses ESOI' uctunal expense
23. Other expenses
Other M anufacturing Expenses Consumption of stores and spares Power and Electricity Charges (Net)
Project Site Expenses
R epair & Maintenance-
- Plant & Machinery -Building Others Administration, Selling and o ther expenses
Freight, Cartage and Octroi (Net) Commission on sales Pre-operative expenses written-off CSR Expenditure Travel & Conveyance Rent Rates nnd Taxes Insurance Payment to auditor (Refer detail below) Warranty Expenses Bad debts written off Less :- Reversal of Provision crtated on the same Advance to suppliers written off Less :- Reversal of Provision created on the same Provision for loan to wholly-owned Subsidiary
Other's
Payment to auditor includes : •
As auditor: Audit fee Other Matters
For the year ended March 3 1,2019
11.529,815
For the year ended March 31,2019
6,944,773 7,476,342
23,615,811
2,918,783 432,058
4,976,33 1
14,268,445
154,666
1,249,966 23,018,344 19,243,401
1,373,980 1,602,087 1,555,000
964t823
11,529,815
34,951.706 161,252,663
For the year ended l\Jarch 3 1,2019
149,554,843 8,400,000 7, 152,440 1,675,484 2,5~Q, I :Z2
1.787,077
For the yenr ended ll lnrch 3 1, 2018
36,941,244
11,2 12,946
9.252.612
For tho year ended March 31,2019
1,555,000
1,555,000
(Amounts in Rs.)
For the year ended March 31,2018
I 87,609,480 8.400,000 8,243,811 7,4R4,797 5,899,942
For the ycnr ended Mnrch 31,2018
37,614,824 11,002,097
152,394,4().1
12,11 9,731 1.629.933
11,109,900
76,139,686
29,362,243 32,258,651
1,202,082 33,821,363 23,4 10,2 18
1,168,545 3,313,199 2,805,000
7,819,500
36,941,244
1,960,334
1Q,J03,106 515,176,060
For the year ended I\ larch 31,2018
2,305,000 500,000
2,805,000
Spray Engineering Devices Limited CIN- UOOOOOCH2004PLC027625 Notes to Consolidated financia l statements fo r the year ended March 31,2019
24. Finance costs
Interest expense -on Tern1 Luau - on Cash Credit I .oan -on Foreign Currency Loan (Buyers credit) - on Vehicle loan
Other borrowing costs
25. Prior Period Items
Prior Period Expense Various Other expenses of earlier years Prior Period Expense/(lncome)(net)
26. Earnings per share (EPS)
The following reflects the profit/( loss) and share data used in the basic and diluted EPS computations:
Net profit/(loss) for calcula tion of diluted EPS
Weighted average number of equity shares in calculating basic EPS Effect of dilution: Weighted average number of equity share issued to Employee Welfare Trust. Weighted average number of equity shares in calculating diluted EPS
Basic EPS
Diluted EPS
(Amounts in Rs.)
For the yea r ended For the ycnr ended March 31,2019 i\'lnrch 31,2018
914,766 30,091,438
114,242 343,073
15,655,028 47,118,547
2,882.373 27,62 1,693
745,686 396,223
27,227,952 58,873,927
For the yenr ended For the year ended March 31,2019 i\1arc h 31 , 2018
3,701 ,3 17 2,282,454 3,701,317 2,282,454
For the year ended For the year ended March 31, 2019 March 31,2018
(53,858,526) 55,5 17,132
No. No. 22,105,837 22, 105,837
48 1,688 481,297 22,587,525 22,587,134
-2.44 2.5 1
-2.38 2.46
Spray Engineering Devices Limited Notes to consolidated financial statements for the year ended 31 March 2019
27. Accompanying notes to accounts:-
A. Companies considered in the consolidated financial statements are: a) Subsidiaries:
Name of the Held Date of Countt-y of Company Through Becoming Inco•·poration
Subsidiary
SED Engineers & I 6-Sep-06 India F::~bricators
Private Limited ~ll<;tl'linahle 1 I 0-McU-08 ll'td ta Environment Developers Limited
b) Associate:
Name of the Company Held CountJ·y of Th•·ough Incorporation
%Voting %Voting Powe•· held Power as on held as on 31.03.2019 31.03.2018
100% 100%
100% 100%
%Voting %Voting Power Power held held as on as on 31.03.2019 31.03.2018
49.994% 49.994%
a Guarantees given by banks on behalf of Holding Company Rs. 39,279, I 82 (P.Y. Rs. I 0,340,000).
b. Disputed Income Tax Liability where department is in appeal amounting lo Rs. Nil (P.Y. Rs. '19,575,232)
c. There are certain claims filed against the company by some parties which are pending with variou~ jnrisnir.tir:mnl nuthoritioo. The managcJHl:lll lias revh:~wed the same and estimate that these claims are not tenable and at the time of outcome of these proceedings there w ill be no material liabi lity occur to the company.
d. Claims not acknowledged as debts amounting toRs 90,086 (P.Y. Rs. 4,426,000).
29. Capital Commitments Estimated amount of contracts remaining to be executed on capital account (net of advances already made) and not provided for is Rs. 3, 148,250 (PY:Rs. 4, 198,250)
30. Corporate Social Responsibility As per provisions of section 135 of the Companies Act 2013, the Holding Company has to incur at least 2% of average net profits of the preceeding three financial years towards Corporate Social Responsibility ("CSR"). Accordingly, a CSR committee has been formed for carrying out CSR activities as per the Schedule VIf of the Companies Act, 201 3
Spray Engineering Devices Limited Notes to consolidated financial statements for the year ended 31 March 2019
Details of CSR Expenditure:
a. Gross amount required to be spent by the Holding Company during the year
Amount in Rs. Particulars As at 31st March
2019 Amount required to be spent by the Holding Company 12,49,966
Total 12,49,966
h. /\mount spent dttt i 11~ lh,. Y~"ll l' Amount in Rs.
Particulars 31st Ma•·ch 2019 Amount Amount yet Total Spent to be Spent
Construction I acquisition of any - - -n~RP.t o:
On purpose other than I above 12,49,966 12,49,966
Total 12,49,966 12,49,966
31. During the year 420,451 Equity Shares were transfen·ed by the SEDL trust to the SEDL Employees under Share Distribution Scheme 2017 and 3668 shares have been issues to employees in the earlier scheme. These shares have a Lock-in-period of 3 years. In case employees leaves the Company before the completion of Lock-in-Period of 3 years, the shares allotted/transferred under the scheme will be forfeited and vested back to the employee welfare trust and shares so forfeited will be issued to the employees' in future on achievement of Performance criteria.
Pursuant to the share distribution scheme the book value is considered as intri nsic value for the valuation of shares distributed to thl;:) employees. Th~ lace value of equity shares amounting to Rs. 4,8 16,880 (previous year Rs. 4,816,880) is deducted from the share capital account as per Guidance Note on Accounting for Em~Jluyee Sharc-hase:d Payment&, i33ucd by lltt.: Institute of Chartered Accountants oflndia).
During the period some of employees left the organization and their shares vested back to the employee welfare trust i.e. 8,388 Equity Shares.
Sr Particulars No. of shm·es
No. 2018-19 2017-18
1 No. of Shares allotted/Transfer to Trust
326,838 326,838
2 No. of shares vested-back and transferred to trust
166,906 158,5 18
493,744 485,356 Out of the above shares already issued/transferred to employees 3,668 3,668 Out of the above share issued/transferred to Employees in the current financial year 420,451
69,625 481,688
-o& co
Jv ~ ~ v (<
f ~ f;·V~'~I-:
* 1P C', •v• $ ·, ... /',. f
·t~fj r:J..." ..... ~A -_y -
Spray Engineering £?evices Limited Notes to consolidated financial statements for the year ended 31 March 2019
32. The Company has recognized Minimum Alternate Tax ("MAT") credit under Section 11 5JAA of the Income-tax Act, 1961 aggregating to Rs. 86,639,956 (PY Rs. 86,639,956 ) in earlier years and the corresponding MAT credit entitlement is outstanding in the financial statements. Being the Holding Company is making profits from past 5 years and also has a s izeable order in hand to be executed in FY 2019-20. In view of the management the Holding Company would be able to generate sufficient profits and be able to utilize the MAT Credit Entitlement.
~~. fl) n~._donmli in I'DOpoct of Olh.l aUug l~:tS~ Ul'e given as follows:
S. No. Particulars 2018-1 9 2017-18
(Rs.) (Rs.) Operating Lease (Cancellable)
A Lease payments recognized in the 19,243,401 23,410,218 statement of profit and loss for the year
B A general description of the lessee's significant leasing arrangements:
- lease rent agreements are for offices and guest houses
-there are no restrictions imposed by lease arrangements
- there are no subleases
b) The Holding Company has taken land on non-cancellable Lease and License Agreements with one party. An amount of Rs. 40,00,000 is debited to Profit and Loss Account for the year ended 3 1st March, 20 19 (P.Y. Rs. 4 1,93,500 is debited to Prulil and Loss Account). The disclosure required to be made in accordance with Accounting Standard 19 on "Leases" is as unrler:
Future minimum lease payments payable under non-cancellable operating leases in aggregate for the following perioas:
s. Particulars 2018-19 2017-18 No.
-~J (Rs.} A - Less than one year Nil 1,000,000 B - Later than one year but not later
than five years Nil Nil
c - Later than five years - -TOTAL Nil 1,000,000
34. Related Party disclosures
a. List of related parties
J. Key Management Personnel
VivekVem1a Manaoin Director Prateek Verma Director - Technical Lalit Handa Chief Finance Officer (From September
14111,2017)
Spray Engineering Devices Limited Notes to consolidated financial statements for the year ended 31 March 2019
I Neha Chopra I Company Secretary (Upto June, 6'", 20 19)
Spray Engineering Devices Limited Notes to consolidated financial statements for the year ended 31 March 2019
35. The Holding Company has defined benefit plans for gratuity and leave encashment. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed yt:ar of service.
The following tables summarize the components of net benefit expense recognized in the statement of Profit and Loss Account and the amounts recognized in the balance sheet Statement of Profit & Loss
Net employee benefit expenst-s (reco~:nizcd in F.ntploye" Cost)
l 'al"tluuJUrll Ula lully Leave E ncashm cnt
2018-19 201 7-1 ~ 2018-19 201 7-18
(Rs.) (Rs.) (R s.) (Rs.)
Current service cost 2,045,819 2,2 15,420 2,358,645 2,607,933
Interest cost on benefit 1,245,58 1 990,685 272,6 17 149,642 obligation Net actuarial (gain)/ loss (2,023,328) 1,205,0 12 (2,223,850) 316,105 recognized in the period
Net benefit expenses 1,268,072· 4,4 11,117 407,412 3,073,680 recognized in the Profit and Loss ale
Balance Sheet
Details of Provision for gratuity
Particula rs Grutuiry Leave E ncashment
201 R-19 2017-18 lO I ~-19 201 7-18
(Rs.) (Rs.) . (Rs.) (Rs.)
Present v::t lue of Defined benefit 17,5 12,007 16,607,745 3,636,955 3,634,896 obligation
Less: Unrecognized past service - - - -cost
Net asset/ (liability) recognized in the balance sheet Long term: 15,956, 142 15,125,053 3,325,956 3,277,811
Short term : 1,555,865 1,482,692 3,10,999 357,085
Note: The above plans are non-funded.
. I
Spray Engineering Devices Limited Notes to consolidated financial statements for the year ended 31 March 2019
36. Disclosures in respect of movement in provision account as per the requirements of Accounting Standard 29- Provisions, Contingent Liabilities and Contingent Assets.
Provision for warranties
A provision is recognized based on management's estimate for expeGted warranty claims on products sold. It is expected that most of this cost will be incurrecl over the warrnnty periotl as per warranty terms. Assumption used to calculate the provision for warrantie!> were bast:tl on current year sales lt:vd and the expected failure in respect of defectives.
r- p .. W~rranty rov•sJon 2018-19 1017 10
(Rs.) (Rs.)
Opening DalatlCt: 8,739,871 3,3l:S6,00~
AJJitium; l1Url11g the year 6,865,459 7,819,500
Lt::ss: - Artiounts ust:d during the Yt!l11' 9,805,245 2,465,G37
Closing Balance 5,800,084 8,739,871
Provision for performance
A provision is recoenized h~sP.d on mCJn;Jgcnl~.:nl' ~; O!JliniUlc lu1 t:xpeded pertormance claims on products sold. It is expected that most of this cost will be incurred over the performance period given as per performance terms. Assumption used to calculate the provision for performances were based on current year sales level and the expected fail ure in respect of defectives.
Performance Provision 2018-19 2017-18
(Rs.) (Rs.)
Opening Balance 65,990,373 40,632,095
Additions during the year 15,882,737 102,396, 149
Less: - Amounts used during the yeru· 6 1,959,830 77,037,87 1
Closing Balance 19,913,279 65,99(},373
37. Foreign Currency exposure that are not hedged by derivative instruments as at Balance Sheet date: -
2018-19 20 17-18
Particulars Currency Amount in Amount in Foreign Exchange Rs. Foreign Exchange currency Rate CUJTency R ate
Spray Engineering Devices Limited Notes to consolidated financial statements for the year ended 31 March 2019
38. Segmental Reporting
Identification of Segments
Primary Segments - Business Segment
The Holding Company and its subsidiaries' Operations predominantly comprise of only one segment i.e. Engineering Equipment. In view of the same, separate segmental inforrnRtion is not required to be given as per the requireme:nt<> of Accounting ~tnndard 17 - Segment reportiug.
Revenue as per Cle:ographical Location~
Particulars 2018-19 4017- lR .(Rs.} (Rs.)
Within India 473,945,597 2,495,020,697 Outside India 106,531 ,887 663,577,324
Total 580,477,484 3,158,598,021
D bt e ors as per G h. I L f eogra£1 tea oca tons Particulars 2018-19 2017-18
(Rs.) (Rs.)
Within India 411 ,897,147 483, 11 8,896
Outside India 22,47 1,5 18 40, 169,976
Total 434,368,665 523,288,872
Property, Plant & Equipment as per Geographical Locations:-
The Holding Company and its subsidiaries has common Property, Plant & ·Equipment for producing goods for domestic as well as overseas market. Hence, segment-wise information for Prope1ty, Plant & Equipment I additions to Property, Plant & Equipment cannot be furnished .
39. Aggregate Consumption of Raw Material & Components (Impo rted & Indigenous)
2018-19 2017-1 8
%of Total Value (Rs.) %of Tota l Value (Rs.) Raw Material Imported 2.82 79,82,097 9.74 76,997,707
Spray Engineering Devices Limited Notes to consolidated financial statements for the year ended 31 March 2019
44. Figures of the previous year have been regrouped, reclassified and/or rearranged wherever necessary, to conform with the current year's presentation.
As per report of even date
For S G C 0 & Co. LLP Chartered Accountants
Suresh Murarl<a Partner Membership No.: 44739
Pl::~ce: : Mnrnbai Date : 20-09-20 19
For Spray Engineering Devices Limited .
\\Cv.+ \0 ~ Manoj~ ChiefFinancial Officier
(hMI~~~J,_ '2--() - () 9 - ?-0 1 q
Rinl<al Goyal Company Secretary McmG~..t .:. IJt!J Nu. J\q4l 0!>
