Chartered Accountants · Chartered Accountants To, The Board of Directors Spray Engineering Devices...

SGCO & Co.LLP Chartered Accountants

To,

The Board of Directors

Spray Engineering Devices Limited

r•lot No. 25, Industrial area phase II

Chandigarh -160002

Subject : UDIN number for the Auditors report on Standalone financial statements for the year ended 31st March, 2019.

Dear Sir,

This is to inform you that UDIN number 19044739AAAAK06182 generated on 11th October, 2019 for Auditors report on above mentioned Standalone financial statements of the Company signed on 20th September, 2019.

For S G C 0 & Co. LLP Chartered Accountants

FRN . 11~2081VVAN100184 ~c . .:. 0

, v, -~( , . !~ •';I. ,, {'11\\

Suresh Murarka ,.,, ... -· · ;~i· Partner - "", r! /) Mem. No. 44739 - ":jj

Place: Mumbai Date: 11 th October, 2019

4A, Kaledonia, Tel. +91 22 6625 6363 2nd Floor, Sahar Road, Fax. +91 22 6625 6364

Near Andheri Station, E-mail : [email protected] Andheri (East), www.sgco.co.in Mumbai - 400 069

Mumbai Delhi

SGCO & Co.LLP Chartered Accountants

INDEPENDENT AUDITOR'S REPORT

To the Members of Spray Engineering Devices Limited

Report on the Audit of the Standalone Financial Statements

Qualified Opinion

We have audited the standalone financial statements of Spray Engineering Devices Limited ("the Company''), which comprise the balance sheet as at 31st March 2019, and the statement of Profit and Loss, statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, except for the possible effects of the matter described in the Basis of Qualified Opinion paragraph below, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31 , 2019, and loss, and its cash flows for the year ended on that date.

Basis for Qualified Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requit~lll~ttb lltal alt! tt~lt!VC:tttllu our audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics.

Attention is drawn to note 31 of the financial statements, wherein the Company has recognized Minimum Alternate Tax ("MAT") credit entitlement under Section 115JAA 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 Short-term 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.

4A, Kaledonia, 200 Floor. Sahar Road. Near Andheri Station, Andheri (East),

Mumbai - 400 069

Tel. +91 22 6625 6363 Fax. +91 22 6625 6364 E-mail: [email protected]

www.sgco.C<?.in

Mumbai • Delhi

Information Other than the Financial Statements and Auditor's Report Thereon

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 r~ppP.e~rs to be materially misstated. If, based on the work we hnvo performed, we conclude that there is a material misstatement of this othP.r informaUorJ. w~: 'Ire r~quln~d to n~nort th;:~t filr.t Wn have nothing to report in this regard.

Rt:~pom;lbllltles of Management and Those <.;h~rgcd with Governanr.P. for thn ~tamla lone

Financial Statements

The Company's Board of Directors is responsible for the matters statet.l in ~edion ·134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone financial statements thCit give Cl true and fi'lir vir.w of thP. finnnr.ir~ l rn"itinn, finr~nr:-ial r~wrform•mc~ and each flowc of the Company in accordance with the accounting principles generally accepted in India, including the accounting Standards specified under section 133 of the Act. 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 design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy ant.! (.;ornpleteness of the accounting records, relevant to the preparation and presentation of the financial statements that aive a true and fair view r~nd are free from material mb~tatcmont, whether du~ to fr.111rl or error.

In preparing the financial statements, management is 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 management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

1. Our objectives are to obtain reasonable assurance about whether the financial statements 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 financial statements.

2. As part of an audit in accordance with SAs, we exercise professional judgment and maintain profeccional ::;kr.ptir.ism throughout the audit. W8 ah;u .

Identify and assess the risks of material misstatement of the finam;ial 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 ovcrridQ of intirnal control

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 expressinQ our opinion on whr.thr.r thn compiiny h~r. .lrlnqttnh:' ittlr_>r mtl fimmclal controlc. c.y&lurrr i11 f.Jiuec und the opt::ralli ry 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 significant doubt on the Company's ability 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 financial statements 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 CfliiSP. thP. r.ompcmy to cease to continue ae a going oonocrn.

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying tr;:msr~r.tinn!5 cmd events In a manner that achieves fair presentation.

3. 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.

4. 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.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order, 2016 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of tho Companies Act, 2013, we give In the Annexure "A" a statement on thP. mCltters specified in parawaphs 3 and ~ of tho Order, to the extent applicable.

2 As required by Section 143(3) of the Act, we report 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 audit.

(b) Except for the effects I the possible effects of the matter described in the Basis for Qualified Opinion paragraph above, in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.

(c) The Standalone financial statements dealt with by this Report are in agreement with the books of account.

(d) Except for the effects I the possible effects of the matter described in the Basis for Qualified Opinion paragraph above, in our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014

(e )The Matters described in the Basis of Qualified Opinion paragraph above, in our opinion, may not have an adverse effP.r.t on the functioning of the company.

(~ On the basis of the written representations received from the directors as on 31st March, 2019 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2019 from being appointed as a director in terms of Section 164 (2) of the Act.

(g) The qualification relating to the maintenance of accounts and other matters connected therewith are stated in Basis of Qualified Opinion paragraph above.

(g) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".

(h) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements- Refer Note 27(b) and 27 (c) to the financial statements;

. ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to thP. lnVf'!!'tnr Education

and Protection Fund by the Company.

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

Place: Mumbai Date: 20-09-2019

Annexure "A" to the Independent Auditors Report

The Annexure referred to in Paragraph 1 under the heading "Report on Other Legal and

Regulatory Requirements "in our Independent Auditor's Report to the memh~r~ of the Spray

Ell~im:t• iu~: D~vh:~s Lhult~tllhl' rh~ yP:M f:nrlt>rl -1 I "t Mnrch, :LIJHl.

As required by the Companies (Auditors Report) Order, 2016 and according to the information

and explanat~ons given to us during the course of the audit and on the basis of such checks of

the books and records as were considered appropriate we report that:

(i) a) The company has maintained proper records showing full particulars including

quantitative details and situation of its fixed assets.

b) The Company has a programme for physical verification of fixed assets on a

rotational basis, which in our opinion is reasonable having regard to the size of the

Company and the nature of its assets. In pursuance of. programme, physical

verification of the certain fixed assets has been carried out by management during

the year. No Material discrepancy noticed on physical verification.

c) According to the information and explanations given to us and on the basis of our

examination of records of the Company, the title deeds of immovable properties

are held in the name of the Company.

(ii) The inventories have been physically verified by the management during the year

at reasonable intervals. Discrepancies noticed on physical verification of

inventories as compared to book records were not material and have been properly

dealt with in the books of account.

(iii) The Company has granted interest free unsecured loans to subsidiary Company without

any stipulation of repayment covered in the register maintaine~ w1der Section 189 of

lhe Act. The said ionn IS doubtful and provision fur the Sl'lme is provided by the

Company.

(iv) In our opinion and accnrdine tn thr. infnrm l'ltinn ~md expbmation givon to un, nootion

185 of the Act is not applicable, since the Company has not granted any loan and has

not provided any gua t <111(t-:t.s ur sc<:.urily to the parties covtm:u under section 185 of the

Act. With regards to investments in securities, guarantees and loans provided to other

body corporates after enforcement of section 186 of the Act, the Company has

complied with the provisions of section 186 of the Act except the Company has given

interest free loan to a wholly-owned subsidiary as referred in note no. 42(2). The said

loan il) uuubtful and provinion for the srunc is pruviutu uy Lite Cu!npany.

(v) The Company has not accepted any deposits from the public.

(vi) The Central Government has prescribed the maintenance of cost record under Section

148(1) of the Act. We have not reviewed the cost records maintained by the Company

but based on the information submitted by the Company we are of the view that such

accounts and records have been made and duly maintained.

(vii) a) According to the information and explanations given to us and on the basis of our

examination of the records of the Company, the undisputed statutory dues

including Provident Fund, Employees' State Insurance, Income Tax, Duty of

Customs, to the extent applicable to the Company have not been regularly

deposited with the appropriate authorities. There is regular delay of some days in

case of Provident Fund, Employees ' State Insurance, TDS, Profession tax and

GST.

However, according to the information and explanations given to us, there are no

undisputed amount payable in respect of such statutory dues which have remained

outstanding as at 31st March, 2019 for a period more than six months from the date

they became payable, except for Profession tax Rs 36,935/- and TDS Rs

1,011,475/-

b) According to the records of the Company no Income Tax, Duty of customs, duty of

excise, and Cess which have not been deposited on account of any dispute with the

relevant authorities

Name of Amount* Period to which Forum where

Statute (In Rs.) omount rclntcs dispute is ptHt~iuli

(Assessment year)

Income Tax Nil Nil Nil

*Paid under protest amounting toRs 11,356,788 for the assessment year 2008-09

and 2009-10

(viii) As per the information and explanations given by the management, the Company has

not ~efaulted in repayment of its dues to banks and financial institutions.

(ix) The company did not raise money by way of initial public offer or fmiher public offer

(including debt instruments) and term loans dming the year. Accordingly, paragraph 3

(ix) of the order is not applicable.

(x) According to the information & explanations given to us, no fraud by the company or

on the company by its officers or employees has been noticed or reported during the

course of our audit.

(xi) According to the information and explanation given to us and based on our examination

of the recorde of the Company, the CompJ.ny h.1!'; pnid I pwvitkd fur managerial

remlineration which is in accordance with the requisite approvals mandate by the

provision of section 197 read with schedule V of the Act.

(xii) In uLu uv.iu.iuu alll.l at:l:onliug to the Information and explanations g1ven to us, the

Company is not a Nidhi Company. Accordingly, paragraph 3 (xii) of the Order is not

applicable.

(xiii) According to the information and explanation given to us and based on our examination

of the records of the Company, transactions with related parties ?re in compliance with

of section 177 and 188 of the Act, where applicable. The details of such related party

transactions have been diflolooed in the financial statements a.s 1 eLl ui1 ttl uudt:r

Accounting Standard (AS) 18, Related Party Disclosures specified under section 133 of

the Companies Act, '2UD read with Rule 7 ofthe Companies (Accounts) Rules, 2014.

(xiv) According to the information and explanations give to us and based on our examination

of the records of the Company, the Company has not made any preferential allotment

or private placement of shares or fully or partly convertible debentures during the year.

(xv) According to the information and explanation given to us and based on our examination

of the records of the Company, the Company has not entered into any non-cash

transactions with the directors or persons connected with him. Accordingly, paragraph

3 (x~) of the Order is not applicable.

(xvi) In our opinion and according to the information and explanation given to us, the

Company is not required to be registered tmder section 45-IA of the Reserve Bank of

India Act, 1934.

ForSGCO& Co.LLP

Chartered A ceo untants

Firm 's Registration No.112081Jf/Wl00184 ffo &~

t(C:J~ ., . \\l~~ . u(/) 'I •1).'184 ..

) MUMB"' I Suresh Murarka ~'?'~~ "I

~ Partner

Membership No. 44739

Place : Mumbai

Date : 20-09-2019

Annexure "B" to the In,dependent Auditor's Report of even date on the Standalone

financial statements of Spray Engineering Devices Limited for the year ended 3151 March

2019.

R"1:wd uu the Internal Financial Controls um.l~r < :hms~ (1) of Sub~section 3 of

Section 143 of the Companies Act, 2013 (" the Act")

We have audited the internal fmancial controls over financial reporting of Spray Engineering

Devices Limited ("the Company") as of March 31, 2019 in conjunction with our audit of the

Standalone financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internal financial

controls 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. These responsibilities include the design, implementation and

maintenance of adequate internal financial controls that were operating effectively for ensuring

the orderly and efficient conduct of its business, including adherence to company's policies, the

safeguarding of its assets, the prevention and detection of fi·auds and errors, the accuracy and

completeness of the accounting records, and the timely preparation of reliable fmancial

information, as required under the Companies Act, 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financial controls over

financial 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 ICAI and deemed to be prescribed under section

143(10) of the Companies Act, 2011, to the: c:xltml applicable to an audit of internal

financial controls, both applicable to an audit of Intcrnfll fimmci~l Contro l~ ann, hnth i RRlH~cl

by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note

require that We comply with ethical requirements and plan and pe~form the audit to obtain

reasonable assurance about whether adequate internal financial controls over financial 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 fmancial controls over financial reporting included obtaining an

understanding of internal financial controls over financial reporting, assessing the risk that a

material weakness exists, and testing and evaluating the design and operating effectiveness of

internal control based on the assessed risk. The procedures 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 evidence we have obtained is sufficient and appropriate to provide a

basis 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 ac~ounting

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)

provide 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

authorisatiOIJ.S of management and directors of the company; and (3) provide rea~unable

aanurancc regarding prevention or timely Jt:tel:tiuu uf uuauthurl~ed acquisition, 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 conh·ols, material

misstatements due to error or fraud may occur and not be detected. Also, projections of any

~v<1lu<1tion 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 procedures

may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls

system over fmancial reporting and such internal financial controls over financial reporting were

operating effectively as at March 31, 2019, based on the internal conh·ol over financial reporting

criteria established by the Company considering the essential compo.nents of internal control

stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting

issued by the Institute of Chartered Accotmtants of India.

ForSGCO& Co.LLP

Chartered Accountants

SuresilM~ Partner


Place : Murnbai

Date : 20-09-2019

Spray Engineering Devices L imited Balance Sheet As at March 31, 2019

Particulars

Equity and lia bilities Sha reholders' funds Share capital Reserves and surplus

Non-current lia bilities Long-term borrowings Lone-tem1 provisions

Cur r eut lialJllllles Short-term borrowings Trade payables Oncluding Acceptance) ForMSME Other than MSME Other current liabilit ies Short-term provisions

TOTAL

Assets Non-current assets Property, Plant and Equipments -Tangible assets - Intangible assets - Intangible assets under development

Non-current investments Deferred tax Assets (Net) Long-tem1 loans and advances Trade receivable Other non-current assets

Current assets Inventories Trade receivables Cash and bank balances Short-tem1 loans and advances Other current assets

T OTAL

Summary of significant accounti ng policies

Notes

3 4

SA 8

58 6

7 8

9

10 II 12 13 14

15 13 16 12 14

2.1

As a t Ma rch 31, 2019 As at March 31, 2018 Rs. Rs.

22 1,050,930 221,050,930 233,638,852 284,636,086 454,689,783 505,687,016

992. 11!9 2,889,507 l l ,Ob\1, 1/) 18.402,R64 11,061,364 21,292,370

209,328,465 256,448,342

36,054,9 16 5,568,527 312,728,252 435,069,938 192,265,832 72,558,469 27,580,227 76,570,020

777,957,692 846,215,296 1.254,708,838 I ,373.194,683

253,947,494 272,964,529 6,226,582 1,009,184

3,080,000

750,000 750,000

27,260,547 40,485,492 76,058,002 76,548,267

3,6 18,195 184,364 367,860,821 395,021,836

372,407,194 352,600, 123 359,529,907 444,596,218

17, 105,112 35,702,8 16 137,2M,067 142,935,675

~39.7:1R 3.33&,01 s 886.848,0 17 978,172,847

I ,254,708,838 1.373,194,683

The accompanying notes are an integral part of the financial statements.

As per our report of even date

For S GCO& Co. LLP

C ha r tered Accounta nts

Suresh Murarka Partner Membership No. 44739

Place : Mumbai Date : 20-09-20 19

For Spray Engineering Devices Limited

irKu Interim Re

Sudhir Kumar ~ain ~vency Professtonal

ar JMI!.no31W-N000131l20.17 -18111457) ~MifP}oTesstonal

Reg No: IBBIIIPA-003/TP-NOOOI3112017-20 18/11457

~ Manoj Gupta

Chief Financ ial Officer R inkal Goyal Company Secretary Membership No. A44 109

Spray Engineering Devices Limited Statement of Profit and Loss For the year ended Ma rch 31, 2019

Pa r ticulars

Income Revenue from operations (gross) Less: excise duty Revenue from operations (net) Other income Total revenue (I)

Expense~

Notes

17

18

Cost of raw material and components consumed I q

PUJdH.t:..,uflrudedgO\Xb 20 (Increase)/ decrease in inventories of finished goods, work-in- 21 progress and stock-in-trade Employee benefits expense 22 Other expenses 23

Total (ll) Earnings before inter est, tax, depreciation 11nd amortization (EBITDA) (1) - (II)

Depreciation and amortization expense Finance costs Profit before tax a nd prior period items Less : Prior Period Items Profit before tax Less : Tax expenses Provision for current tax Taxation of earlier years Profit for the year

9 24

25

Earnings per equity share (nomina l value of share Rs.10 26 (March 31,201 9: Rs.10)]

Basic Computed on the basis of total profit/(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

For the year ended March 31, 2019

Rs.

580,202,093

580,202,093 66,962,813

li47, l fi.I ,~Oil

282,629,066 14,6 15,932

(12,680,123)

171,153,966 161,120,922 6 16,839,762 616,839.762 30,325,143

22,893,117 47,100,4 15

(39,668,388) 3,701,317

(43,369,705)

7.627,529 (50,997,23-t)

Rs. -2.31

-2.26

For the year ended March 3 1,2018

Rs.

3,177,745,3 12 20,524,683

3,1 57,220,629 10,928,221

J,1W, I49,850

N0,1..1K,744 I ,485, 164,268

18,701 ,033

217,63 8,030 514,045,642

3,025,787,717 3.025,787,717

142,361,133

23,638,498 58,843,937 59,878,698

2,282,454 57,596,244

2,338,000

55,258,24-t

Rs. 2.50

2.45

For SGC O& Co. LLP Chartered Accountant~ For Spr ay Engineering Devices Limited

Suresfl Murarka Partner Membership No. 44739

Place : Mumbai Date : 20-09-20 19

dh·r Kumar Jain ~S~lve~cy Professional

Su . Kum r J a in /nS 31\P-N000131i20H-181H457) Interim Resol io~1l~i>&~ Reg No : lBBI/I.PA-003/JP-N000 13112017-2018/ 11457

~ ~

Manoj G upta Chief Financial Officer

Rinkal Goyal Company Secretary

Membership No. A44109

p~~ce ! c-'-"'OJ.r]c};~h D~ : ~ ~ <9Cf ... ?-tJ19

Spr2y Eneinee1ine Devices Umited

Cash flow statement For the year ended M arch 31, 2019

Par1iculars

Cash now from operatin: acti,ities

- Profit before tax

Non-cash :adjustment to reconcile profit befo1'f: tax to net cash flows

- Depreciation/amortization - Bad debts wrinen off

- Balance wrinen off - Advances to Supplier written off(nec of Provision)

-Reversal of provision foe ESOP -Provision on doubtful debts & Advances (net) - Lossl(profit) on sale of fiXed assets

-Unrealized foreign exchange gain

- Interest expense - Interest income Opera tin& profit before workin: capiUI c.han&es

1\Jo\'t ments ir~: workinc capital :

-Increase/( decrease) in trade p3yables

-Increase /(decrease) in long-term provisions - Increase /(de<:rease) in shan-term pro,isions - lnarc~(decreue) h1 ull1cJ \:Wit:nt liabilities

- Uecreasei(U1Cre3Se) in trade receiV3bles - Ocu....:J\hoct"""'J In rn,..,lones -Decrease /(increase) in long-term loons 1Uld adv:u1c~ -Decrease /(inere3Se) in shon-term loans and advances

- Decreasel(increase) in other current assets

Cash cemrated from /(used in) oper.uions

- Dir..:traxes p3id (net of refunds)

-Prior Period hems (net)

·Taxation of earlier years • l?.xtpdonl11lv111U (net)

Net eash now ra-ornl (wed in) opcnuinc activities

Cash flows (rom inve.Uin2: activi tits

- Pureh3se of fiXed 3SS<IS, including intang>ble 3SSets and CWlP

(A)

- Investments in bank deposits (h3ving orisin.al maturity of more than three months)

• Profit on Sale of Fixed Asset • Interest received Net eash now from/(ust:d in ) inl'e.stin& activities

Cash Rows fi'Om rinnuc.inl activities

- Proee<ds/(Rep~vment) nflno~·lrrm hnrrn••""ll'

- Pouco:<:dsi(Rep3yment) of short-term borro"in!;S

- tmerest p:ud Net cash now (rom/( used in) in tinantin: 3Cli\•ities

-Net incrwe/(deerease) in e3Sh and =h equivulenrs (A+ 8 +C) - C3Sh and e3Sh equivalents 3t the beginning of the yur Cash and cash equivalenU: at the end or the ytn r

Components or ash and c.ash equivalents

- C3Sh on hand • on current account Total cash and tash equivalents (note 16)

Summary of significant accounting policies

(8)

For the year ended March 31,2019

Its .

(39,668,388)

22,893,117

ll,S29,815

0

(113,053)

47,100,415

(1,346,773)

-'O,.lQS,Il-'

(103,385,113)

2,666,311

(48,989.794)

11 ~,lG 1,073

R\''~.n~ (19,807,071)

(l,<lli4,WUJ

5,669,608

( 1,635,554)

2.1

78,429,400

14,588,183

(3,701,)17)

7,bl/.~2Y

113,0Sl

81,801,791

895,935

12,382,634

1,346,773

14,625,34 1

(l,!>!>4,247)

(47,119,117)

(47,100,415)

(95,774,539)

652,592

1,399,209

2,051,80 1

86,122

1,965,679

2,051.801

For the year ended Morch 31,2018

Its.

59,878,698

23,638,498

36,716,339

249,774

891,157

(3,910)

258,558

(4,588)

(6,936,564)

58,843,937

(3,987,069)

169,5-1~,830

(37,454,868)

5,345,967

11,354,725

(!li,VJ <,b•UJ

(li,IGI.~IG)

(74,416,033)

(2,Bn,OOO)

62,336,862

76,lS9,4)4

(21,025,180)

(3.596,537)

(2.282,454)

6,936,564

(19,967,607)

56,272,039

(17.~4.683)

4,588

3,987,069

43.219,013

(28,63~.183)

64.~3.272

(58,843,937)

(23,43~,8H)

(183,442)

1,582,651

1,399,209

77,899

1,321 ,310

l .J!I9,l09

For Spray En~:;ineerine Orvices Limited

Partner


Place : Mumbai Date : 20-09-20 I 9

Rinkol Goyal Chief Financial Officer Company Secretary

Membership No. A44 I 09

c.h~~~a-tk ?-0 ~ 0 o/ - ?.-€119

Spray Engineering Devices Limited Notes to fmancial 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 Financial Statements have been prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis and in compliance with all the mandatory accounting standards as prescribed under Section 133 of the Companies Act 20 13 ('Act') read with Rule 7 ofthe Companies (Accounts) rules, 20 14.

2.1 Summary of Significant Accounting Policies

(a) Use of estimates

The preparation of 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 reported 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.

(b) Property, Plant & Equipments

Tangible Assets are stated at cost (or revalued amounts, as the case may be), tess accumu lated 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 intenclecl u:;~. Burrowing costs relating to acquisition or lixcd asst!ts which takes substantial period of time to get ready for its intended use are also incl uded to the extent they relate to the period till such assets are ready to be put to use.

(c) Depreciation on Property, Plant & Equiprnents

Depreciation on the Assets acquired at the time of acquisition is provided using the Straight Line Method based on useful life of assets and in the manner specified in the Schedule 11 of the Companies Act, 2013 except in case of Mobile Handset where the useful in considered 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.

Dra1ring~ 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

Spray Engineering Devices Limited Notes to financial statements for the year ended 31 March 2019

The carrying amount of assets is reviewed at each balance sheet date for any indication of impairment based on internal/external 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 selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

(f) Borrowing Costs

Borrowing costs that are attributable to the acquisition 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 oftime to get ready for its intended use. 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 cost 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 which they wi II be incorporated are expected to be sold at or above cost. Cost is determined on a weighted average basis.

Work-in-progress and finished Lower of cost and net realizable value. Cost includes direct materials and goods labour and a propottion of manufacturing overheads based on normal

operating capacity. 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 a·ecognition

Revenue is rl!cognized to the extent that it is probable that the economic benefits 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 buyer. Sales are stated net of sales returns. Revenue is shown Sales net of Goods and Service Tax(GST).

Revenue in case of erection & commissioning jobs carried out is recognised on stage of completion as per the tenns of related agreem~nts I job orders.

Insurance Claims, export incentives, escalation, etc. are accounted for as and when the estimated amounts recoverable can be reasonably determi'ned as being acceptable to the concerned authorities I parties.

Interest Income

Spray Engineering Devices Limited Notes to fmancial statements for the year ended 31 March 2019

Revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

(j) Foreign currency transactions

(i) Initial Recognition

Foreign currency transactions are recorded in the reporting 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 rep01ting 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 tr:msaction. Non-monetary items. which are mens t;red ::It f~ir

value or other similar valuation denominated in a foreign currency, are translated usin~ the exchnnP.e rntr: nt the rl:m~ whP.n such value was determined.

(iii) Exchange Differences

Exchan!Je differencer. nrir.ine on thn 'JCttlcmcnt of monetary itctllb ut u11 ttjpurliug Com puny's monetary items nt mtc.'\ rliffr:rr:nt frnm thmf" M whirh lht:y wwri initinlly roool'dod duPing the ycnr, ut l'-J..iutl~.-u ii t j.Jt~v iuu~ fimmrial statementi, ~r~ recogniGed QIJ inoomo or a~ CJ(pcn:~c:J in the yc111 iu wltidllltty at b~.

(k) Income ta~es

Tax expense comprises of current and deferred tax. Current income tax is measL:recl at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. Deferred income taxes re flects 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 cettainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. If the Company has carry forward of unabsorbed depreciation and tax losses, deferred tax assets are recognised only if there is virtual certainty that such cieferrerl t~x l'tc;c;r:tc: r~n be realii~:d againGt fu ture ta)(ablo profit9. Unrecogniseci deferred tax assets of earlier years are re-assessed and recognised to the exkul lltal il has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realised.

MAT 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 tax (MAT) credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in Guidance Note issu\!d by the Institute of Chartered 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 tlie 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 pet· Share


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 pruticipate in dividends relative to a fully paid equity share during the re!Jorting period. The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue, bonus element in a rights issue, share split, and reverse shari! split (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or Joss for the period attributable to equity shareholders and the weighted r.verage number of shares outstanding during-the period are adjusted fo~r--~ the effects of all dilutive potential equity shares.

(m) Provisions & Contingent liabilities

(i) A provision 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 will be requi red 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 ru·e determined based on the best estimate required to settle the obi igation at the reporting date. ThesP. P.stim;:~tP<: are reviewed llt each reporting dote nnd ndju!tcd to tcOc:~.:l tile l:UI"I'I:!Itl best esthhates.

(ii) A contingent liability is a possible obligation that arises fi·or.l 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 iris nor prob<.ble that an outflow of resources will be required to settle the obligation. A contingent liability also arises 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 financ ial stntements.

tnJ Leases

Where the Company is the lessee

Finance Lease A leased asset is depreciated on a straight-line basis over the useful life of the asset or the useful life envisaged in Schedule II to the Companies Act, 20 13, whichever is lower. However, if there is no reasonable certainty that the Company wi ll 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 lite envisaged in Schedule II to the Companies Act, 20 13.

Operating Lease T .r.11<tn, whtre lhti ltltitiur ~n"t!utivoly l'omin!.l 3Ub!tnnttally all Ute: t bits a11d beueflts of ownershtp ot 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 substantial ly al l 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 apport ions lease rentals between the principal repayment and interest income so as to achieve a constant periodic rate of return on the net inve!'tment outstanding in respect of the finance lease. T he interest income is recognized 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 ar.d Joss.

Spray Engineering Devices Limited ' Notes to financial statements for the year ended 31 March 2019

income on an operating lease is recognized in the statement of profi t 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 recognized immediately in the statement of profit and loss.

(o) Retirement Benefits

Retirement benefit in tht! form of provident fund is a defined contribution scheme. The Company has no obligation, other thnn the cuutduutiuJt ~ayaiJI~: lu "tilt )JI'UVItleut fund. The Company recogntzes contri bution payable to the provident fund scheme as an t:xpenditure, 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 payablt: to the scheme is recognized as a l iability after cledtt~ti ne the: contribution already paid. If the contribution already paid exceeds the contribution due for services received before the bnlnncc shc.::t Jatc:, tltc:u c:xc~:ss is rtcugnlzetl 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 benefit plan for its employee' s viz. gratuity. The costs of providing benefits under the plan is detennint:d on the basis of at.:luarial valuation nt en~h y~n r-~nd. Actuarial valuation is carritlu 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 immediately taken to the statement of profit and loss and are not deferred.

(p) Cash 11 nd cash equiva lents in the cash llow c·omprise ca~h nt hnnk nncl in hand and short-term in v~!:>ltn~nt~ with an original maturity of three months vr less.

(q) Employee Stocl< Compensation Cost

Measurement and disclosure of the emp!oyee share-based payment plans is done in accordance wi th the Guidance Note on Accounting for Employee Share-based Payments, issued oy the Institute of Chartered Accountants oflndia. The Company measures compensation cost relating to employee stock options using the fair value method. Compensation expense is amort ized over the vesting period of the option on a straight line La:; is.

(t·) Segment Reporting Policies

(i) Identification of segments:

The Company's operating businesses are organized and managed accordi r:g 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 permitted by the Guidance Note on thl! Sch\!dule lli to th~ Companies Act, 2013, 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 EBITDA on the basis of profi t/ (loss) fi·om


continuing operations. In its measurement, the Company does not include depreciation and amortization expense, finance costs and tax expense.

Sorav Eneineerine Devices Limited

Notes to financial statements for the year ended March 31,2019

3. Share caoital .

Authorized shares 24,050,000 (31 March 20 18: 24,050,000) equity shares of Rs. IO each Issued shar es 22,586,781 (31 March 2018: 22,586,781) equity shares ofRs. IO each Subscribed and fully paid-up shar es 22,586,781 (31 March 2018: 22,586,781) equity shares ofRs. IO each Less: Amount Recoverable from Employee W elfare Trust 48 1,688 (31 March 2018: 48 1,688) equity shares ofRs. lO each (refer note 30) Total Subscribed and fully paid-up shares

a. Reconciliation of the shares outstandine at the beeinnine and a t the end of the renortine ncriod EQuitv share~ :

At the beginning of the period Issued during the period Vested back during the period O utstandine at the end of the oeriod

b. Ttrms/ riehts a ttached to enuitv shares

J\' ot March 31.2012

Nu. Rs. 22,105,093 22 1,050,930

22 105 093 22 1 oso 930

As a t Marrh 31 201 9

240.500.000

225.867.810

225,867,810

( 4,81 6,880) 22 1,050,930

(Amounts in Rs.)

As at Marrh 31.201 8

240,500.000

225.867.81 0

225,867,810

( 4,8 16,880) 221 ,050,930

Aont M;mh 31.2018

No. f{s.

22, 105,484 22 1,054,840

391 3.910 22 JOS 093 ?? 1 oso 210

The Company has only one class of equity shares having par value of Rs. l 0 per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, afier distribution of all preferential amounts.The distribution will be in proportion to the number of equity shares held by the shareholders.

d. Details of shareholders boldine more than 5% shares in the Comoanv

Enuitv shares ofRs.IO each fullv oaid Mr. Vivek Verma (Chairman cum Managing Director) Mr. Prateek Verma (Director) New Vernon Pvt. Equity Ltd. Klondike Investments Ltd.

As a t March 31 201?

No. % hold in!! in th r rlass

9,983,3 13 44.20% 5,989,987 26.52% 2,823,348 12.50% 2,823,348 12.50%

As at March 3 1 2018

No. %holding in the class

9,983,3 13 44.20% 5,989,987 26.52% 2,823,348 12.50% 2,823,348 12.50%

As per records of the Company, including its register of shareholders/members and other declarations rece ived from shareholders regarding benefi cial interest, the

above shareholdinA represents both lcl:\~1 ~rJd benclicinl nwn~r~hins nf.~ IW(~

4. Reserves and surolus

Securities oremium account Closing Balance Surpl usl(<l rfirit) in th• <lqt•mcnt of profit and lou Balance as per last financial statements Profit for the year · Net surplus/( deficit) iu tht s latt mcnt of profit and loss

Total reserves and suqllus

As at i' l arrh 3 1 2012

566,657,869

(282,02 1,783) (50.997.234)

(333,0 19.0 17)

233,638,852

As at l\1arrh 3 1 2018

566,657,869

(337,280,027) 55.258.244

(282.021 ,783)

284.636,086

Spray En~ineeria~ Devices Limited Notes to r..nandal s tatements for the year endtd Marth 31.2019

SA. Long Trrm Borrowings

Finance lease obligation (secured) Amount disclosed under the head .. other current liabilities .. (note 7)

As a1

~Iorch 3 1.1019

1,889.497 (1,897.308)

99l. IH9

(Amounts in Rs.)

As nr Morch 3 1. lOIS

4,443,744 ( 1,554,237)

1.889.507

i) Finance lease obljgation ofRs. 28,89,497 ( PY 44,43,744) i~ in re,ii:pecf ofvt~rious \'thides which are srcured by hypothecation of the vchiciCJ finanad. All the loans are rtpayal.ll~ 'In 48 equal instalments and carry mterest rate ~nging from 8.41% to 9.4c>-/e.

SD. Short Tc.mt Don·owi•l&$

Secured - Cash eredit from banla - lluyds Credh · Loan from ban\.: ag3inst Fixed deposits Unsecured Loans Total

As :at I•IKt<li 01, I DIJ

"'

109.328.46~

As :H him 11 .11 . 1111"

R•

101.flnV,ll1 31,5 16,544 14,000.000 8 923.465

2%.4~8.3H

i) Cash ereditlimiu ofRJ. 209,328,465 ()I Mm:h 2018 : 20!,008,332) and Duy<r's Credit (in forcign currency) of RJ Nil ( 3 I March, 2018 3 1,516.5~~) is secured by firn p;>oi passu charge on current assets (existing and future) oft11e company. Second p.1ri p:~.ssu charge on entire fixed ilssets (e.'<isting ;~nd future) including Land and Building at Plot no. 76, Ind . oreo, 2250 sq. notrs. Doddi, HP (Unit· I) and land ond Building at Plot no. 245-246, Ind. orea, 1800 sq. mtrs. B>ddi, HP (Unit-2)ond EMT of Lon~ ~11~ D~ildin~ QfNQ. J9$·

JY• nw \.oca 1.-0ia 1-octory, Vollage. IJollonwalo,lladdo, Uost.· Solon, HP (Unlt-l) and BIT of4 Fbts >13nding in t he naone of the Compony >ituated at Doddi (HP) fre>lo security of the Company in favour of Bank of india and Canara Bank.

ii)Sccured loans are funher secured by personal guarantee of oromoters !Uondv Mr. Vivek Verma. Mr p,.,.,~ Vmm

iii) Lo3n from bank a~oinst Fixed deposits cnrrics intc:rClt@ 14.9o-A. The loan i~ M:lll~'l Hg;tiu"t fixNI clt"rosh In Junr lOIS at (imc ofm:uurity of fixed dcpo:;.it.

iv) Unsecured Loans obligation Rs Nil (PY - Rs 8,923."'6SI)- token from \'3rious fin:~.nci31 institutions and other panies . 'n1e S3me in rep;aid in 1he current yar

Spray En~inccrin~:; Devices Limittd Notes ro fina uri.11 l sra te.ments for the ye.:ar endt.d March 31, 2019

6. Tr.ade Payables Trade p.>yables ... Due to Micro, Small and Medium Enterprises • -Other tlun ~ficro, Small and Medium Enterprises

The Com5»JlY fud sought confinnatlon from the vendors \\1tether 1hey f:allln the ategory of Micro .Snull and Medium Enterprises. Based on the information available, the requirt'd disclosure for Micro. Sm311 and ~fedium Enterprises under the :above Act is gjven below:

' Disclosures required under Sec 22 ofMSMED Act, 2006 (i) the principal amount and the interest due thereon rcrrullning unpaid 10 any supplier

Principal An'KIW\t -Interest thereon (Disclosed in otht.r eurr~nt liAbility)

(ii) the amount of interest paid by the buyer in terms of section 16, along with I he amounts of the p3)11ltnl

(iii) the .,uut.ml uriuu:lt:)t due and p:~yable ror the year of del.ly in nuking payment (which lu\·e been p3id but beyond the appointed day during the year) but without adding the interest specified under this Act

(iv) the amount oflnteresl accrued and remaining unp3id

(v) The amount offunhcr interest remaining du¢ and pa)'lble C\"CU in 1he succeeding years. until such d3tt ~-ben the interest dues abo\•e are actually pa'id to the small enterprise for 1he purpose ofdisallo.,..'1lnte as a deductible ex-penditure under seclion 23 of this ACT

7. O tbtr curTent liab iJitirs

Current maturities oflong-tenn borrowings (note SA) Interest accrued but not due on borrowings AdV3.1lCe from customers Salary and reimbursement payable to employees Duties & ta.'es poyable Interest Payable lo MSME Others

PrO\'isiou for e1uployee btnelits Provision for gratuity (refer note 3.&) Pro\ision for leave benefits Provision for ESOP expense

Ocht.r provisions Prorision for warranties (rerer note 35)

Provision for Performance (refer note 35)

Totai(A+ B )

(A)

(II)

Lon~·ltrm

As at As:u M:'l rch 3 1.2019 March 31.2018

15,956,142 15,125,053 3,325,956 3,277,811 I 787.077

21.069.175 18.402.864

21 069.175 18 402164

(Amounls in Rs.)

Asnt As :H

Morch 31. 2019 Morch 31. 2018

36,054,916 5,568,527 312 728.252 435 069.938 348 783 168 440 638.465

36,054.9 16 5,339,367

5,339,367

As:tt M ordt 31.2019

1,897,308 1,603,399

40,781,691 84,201,331 13,264,054 5.339,367

45 178.682 192.265.832

1,555,865 3 10,999

1.866.864

5,800,034

19,913,279

25.713.363 27.580.227

5,568.521 2,010,662

2,010,662

As at ~lor<h 3 1. 2018

1,554,237 351,147

10,667,963 48,113,401 9,861.059 2,010,662

1,482,692 357,085

1,839,777

8,739,871

65,990,)7)

74.730.243 76.570.020

Spray Engineering Devices Limited Notes to financial statements for the year ended March 31, 2019

9. Property, Plant and EquiJlmcnts

Tan!!ible Assets "

(Amount;; in Rs.) ·- Cro•~ Block .. - ~ \ ccumulatcd Depreciation - :~U Ulock

Particulars .\s ut Additions Adju~lmcnts/

As nt ~larcb A~:tl Depreciation Adjustments/

As ~r March As at Mar~: As at Murch Apr il I, 2018

during the Disposals of 31,2019 April I, 2018

charge for the Disposuls of 3 .2019 31, 201!' 31.2018

Year Assets \Car Assets .. Land 25 378,71 9 - - 25,378,719 .. - - - 25,378,7 11 25,378.719 Factory Building 21 9,780,639 - - 2 1 9,780,63~ 69,209,877 6,248.278 - T>.458,154 144,322.45.5 150.570,762 Plant & Machinery 238,553,184 2,495,037 - 24 1,048,221 157,517,302 12,144,627 - 16).66 1,929 71 ,386,2; 2 81 ,•)35,882 Furniture & Fixture 15 276 489 - - 1 5,276,48~ 13,369.170 187 723 - 1:; 556,893 I ,719~5·::0 1.'>07,319 Computers and related hardware's 11 ,030,367 - - 11.030,367 6,566.291 1.330,633 - - 816.924 3.133,4+4 4,464.077 Office Equipments 14,047,368 - - 14,047.36~ 10 769.534 736.069 - I .5•)5.603 2.54 1,765 3.::!77.834 Motor Vehicles 19,640.438 - - 19 640,438 13,3 10,502 864,742 - lc., J75,244 5.465,L9:. 6.J29.936 Leasehold Improvements 595.236 - - 595,236 595 236 - - 595,236 - -TOTAL 544,302,439 2,495,037 - 546,797,476 271 ,337,910 2 1,512,072 - 294,.849,982 253,947,-194 272,~64,529

~iousYcar 517,875,330 31,452,529 5,025,419 544,302,439 253,972,590 22,387,827 5,022,507 27[,337,910 272,964,5< ~ I 263,$02.739

'b -·--·-·· ---- . ----·-Package & software 48 794.129 5,347 772 - 54,141,900 46 534.273 1,381 .045 - 479 15.318 6,226,5~ 2.25=>.855 Drawing & Copyrights 10,974.947 - - 10,974,947 10,974 947 - - 10974 947 - -TOTAL 59,769,076 5,347,772 - 65,116,847 57,509,221 1,381,045 - 58:190,265 6,226,58:2 2,259,855

Previous Year 59,769,076 - - 59,769,076 --- 57,509,221 1,250,671 - 58-:"59.891 I,009,18£L _ _ 2,259,855

Previous Y car

~

Sprav En!!ineerinl! Devices Limited Notes to financia l statements for the vcar ended March 31.2019

10. Non-current investments

Trade investments (valued at cost unless stated otherwise) Unauoted enuitv instruments Investment in subsidiaries 10,000 (31 March 2018: 10,000) Equity shares ofRs.lO each fully paid-up in SED Engineers & Fabricators Private Limited 50,000 (31 March 2018: 50,000) Equity shares ofRs.lO each fully paid-up in Sustainable Environment Developers Limited

Investment in associates 25,000 (31 March 2018: 25,000) Equity shares ofRs.IO each fully paid-up inlPROSugut Eugim:c:riug Private Limited

O thers 300,000 (31 March 2018: 300,000) Equity shares ofRs.IOO each fully paid-up in Sri Saibaba Sugar Limited

Less : Provisions for diminution in value Unquoted Equity Instruments - SED Engineers & Fabricators Private Limited - Sri Saibaba Sugar Limited A~regatc provision for diminution in value of investments Non-current investments (net) (A- B)

II. Deferred tax (assets)niabilitv (net)

Deferred tax liability Fixed assets: Impact of difference between tax depreciation and depreciation/ amortization charged for the fmancial reporting 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 purposes on payment basis Provision for doubtful debts and advances Brought forward depreciation Gross deferred tax asset Net deferred tax (assets)/ liability ( A - B )*

(A)

(B)

As a t 1\Jarrh 31 "012

100.000

500,000

250,000

30,000,000

30 850 OQO

100,000 30.000.000 30.100,000

750.000

As at Mmb l l. 2!!12

(886,998)

(Amou nts in Rs.)

As at !\'larch 3 1. '?0!8

100,000

500,000

?'iO,OOO

30,000,000

3Q 850 OQQ

100,000 30.000.000 30.100.000

750.000

As at !Harrh l l . 2018

453,841

(A) ________ ~~~~----~~~ (886.998) 453,841

6,535.029 6,254,976

13,597.883 10.72 1,005 32.150.775 32. 150.775 52,2113.688 49,126.757 (B) _____ ~==--~=~

• 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

Canitalndvances Unsecured. considered ~ood

Security deposit (Unsecured, considered good) - With rclarcd nartic5 -Others

(A)

Loan and advances to wholly-owned Subsidiary Unsecured, considered good Unsecured, considered doubtful

Less : Provision for doubtful Loans & advances

Advances recoverable in cash or kind Advances to Suppliers Unsecured, considered good Unsecured, considered doubtful

Less : Provision for doubtful advances

Other loans and advances Advance Tax/ Tax Deducted at Source (net of provision for taxation) Income tax paid under protest MAT credit entitlement (refer note 3 1) Export Incentive License Duty Drawback Recievable Balances wit11 statutory/Government aut11orities

Total (A+ B + C+ D)

(B)

(Cl

Non-Current As at As at

!\larch ll. 2!!12 Marrh Jl "!l iB

3.858.990

50.000 4 408 242 8.317.932

7,585,827

11.356.788

2.800.000

50.000 4 062 242 6.912.9-12

22,215,762

11.356.788

Current As at As at

1\lardoll. 70 ) 2 1\ larrh Jl, 2!!18

69.960.242 69.960.242 69 960 242

2 1,270,87 1

2 1.270.87 1

21.270.871

86.639.956 4,073,949

670,605 23.377.864

73.035.905 73.035.905 73 o>s 905

20,078,949

20.078.949

20.078.9-19

86.639.956 10,074,409 3,049,693

21.211.712

Spray Engineering Devices Limited Notes to finan~ial statements fo r the year ended March 3 1, 2019

13. T rade receivables

Unsecured, considered good unless stated othenvise Outstanding for a oeriod exceeding six months from the date thev are due for pavment Unsecured, considered good Doubtful

Less : Provision for douhtli•l rr.rriva\llo:i

Othqr rm jynblo-. llo.<ecured, considered good

Totai(A + D)

I~ Other assel~

Unsecured, considered good unless stated othen vise Non-curreut bank balances (refer note 16) O thers Interest accrued on Margin Money Total

(A)

Non- Current As at As at

March 31. 2018 March 31, 2019

76,0SR,002 76,548,267

7G.0~.0.002 7ft,!i~0,2ft7

76,058,002 76,548,267

76,058,002 76,5~8.267

Non-current As at As at

March 3 1,201 9 March 31,2018

3,618,195 184364

3,618 195 18436~

IS. In,·entories (valued at lower of cost and net realizable value)

Raw material; and components (includes in transit Rs. 1,21,04,610 (31 March 2018: Rs. 1,32,15,172)

Work-in-progress Finished goods Stor~s and spares Total

16. Cash an~ bank balances

Cash and cash equivalents

Balances with banks: -On current accounts -On unpaid dividend account Cash on hand Other bank balances

Current As at

Morch 3 1, 20 19

285,105,015 44,006,09'i

'7Q,JII,IIO +! 00~ O?l

285,105,015

74.424 &90 74.424.890

359,529,905

Current As at

March 31, 2019

539.738 539 738

As at March 31,2019

202,41 0,733

1~2.698,992 16,298,721 10 998.749

372.407 1%

As a t 1\lnrch 31,10 111

1,?65,679

86,122

(Amounts in Rs.)

As:ll March 31,2018

32,962,728 'ld ,h<l'i .~ l l

u·l,ll~¥,hJY

}d li~~ 811 32,962,728

411,633,49~ 411.633.490 4~~-596,21 8

As at March 31.2018

2.338.015 2.338,015

As at March 3 11 2018

206,610,173

139,266,562 7,051,028

12.887.532 379.030.~67

As at March Jt, 2UIM

1,321,3 10

77,899

-Margin money deposit• 18,67 1,506 34,487,970 Less: Amount disclosed under Non-Current Assets 3.618.195 184.364 Total 17,105,112 35,702,816 • Margin money deposits \vith a carrying amount ofRs. 18,671,506 (March 3 1, 2018: Rs. 34,487,970) given as security against Loan an~ non-fund limits sanctioned by banks

Spray Engineering Devices Limited Notes to fmancial statements for the year e.nded ~larch 31,2019

17. Revenue f rom operations

Revenue from ope.rations Sale of p roducts Finished goods Sale of services Other operating revenue Income From Export Incentives Scrnp sales Re\"enue from operations (gross)

18. Other 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) Provision for loan to wholly-omted Subsidiary wrinen back Gain on Foreign Exchange Fluctuation (net)

Total

19. Cos t of raw material and components consumed

Inventory at !he beginning of 1he year Add: Purchases

Less: invenlory at the ~nd of the year Cost of raw material and components consumed

Details of raw ma ter ial and components consumed

- Plate.Pack - Gear Box, Motors,Pumps,PHE and Others - SS and MS·Pipes and Tubes

Details of inventory at the beginning and end of the year R •o. li!Atrol•h oiJlllUUIIJOU~nh

- Plate Packs - Gear Box, Motors,Pumps,PHE and Ollters - SS and M$-Pipcs and Tubes

20. Puo·chase of traded goods

Purchases of traded goods

For the year ended March 31 2019

518,707,910 34,071,634

3,947,340 23.475.210

580 202.093 560 1Q1 031

Foo· the yea r ended ~1 .tllh Jl, "JII I IJ

1,321,4 13 2,491 ,193

25,360

618,214

59,317.917 3,075,663

113,053

66.962.813

For the year e nded March 3 1, 201 9

193,395,001 291.644.798 485,039,799 202.4 10.733 282.629.066

For· I he year ended ~larch 31, 2019

15,354,852 93,675,565

173.598.649 282.629.066

l•or the yur c11JcJ ~Iorch 31,2019

36,900,577 64,1 17,677

101.392.479 202.410.733

Foo· the ye:11· ended March 3 1 2019

14,615,932

14.615.932

(Amounts in Rs.)

For the yeao· ended l\larch 31. 2018

2,993,397,487 134,402,363

27,899,201 U.U46.~()1

3 177 745312 11JJ J4'jl!1

For the year ended I.Iutd• 0 1. ~II I II

3,077,212

882,297 27,560

4,588

6,936,564

10 928.221

{Amounls in Rs.) For the year ended

March 31 2018

162,691,396 820 942 H9 983,633,7~5

193 395.001 790 238 7~4

Foo· thc yenr ended ~ la rch 31, 2018

51,595,322 272,978,631 465.66V92 790 238.744

J.'u• lfu: )Cltl cuJcJ !\larch 31, 2018

25,893,750 124,003,735 43.497.515

193 395.001

For the year ended March 3 1 2018

1,485,164,268

1.485 164 268

21. (hicrease)/decrease in inventories

Inventories at the end of the year Work-in-progress Finished goods

luvcutorl<.S at the beginning or the year Traded goods Work-in-progress AtH lnv•ntnries in~dvertcntly c~pitalized in earlier year

Finished goods

Deta ils of inventories at the beginning and end of the year

Work-in-progress Cooling and Condensing system Fal ling Fihn Evaporator & Pans PTFFE & Titeir Parts Spray Continuous Pan Sugar Refinery Jaggery machine MVR

Finished 20ods

Cooling and Condensing system Falling Film Evaporator & Parts Miscellaneous Spray Continuous Pan Sugar Refmery MVR

For the year ended ~ larch 3 1, 20 19

142,698,992 16.298.721

158 997 713

139,266,562

139.266.562 7.051.028

146 3 17 590 (11 .680,llJ)

For the year ended M:trch 3 1 20 19

5,636.836 13.470.377 3,942,713 5,396,239 7,518,473

74,237.139 32.497.214

142.698.991

Fot· the ye:11· ended 1\l:trch 3 1. 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 March 3 1, 2018

139,266,562 7.05 1.028

146 3 17 590

103,425,002 5G,143,005

160,168,007 4,850.616

165 0 18 623 li,70t,Oll

For the yc:tr ended i\larch 31 2018

11,744,816 8,024,0 15 9,2 12,459 7,666,346

28,381,787 74,237,139

139 266%2

For the year ended March 3 1,2018

3,9 16,724 943,225

96,018 833,338

1,261,723

7 051 028

Spray En~ineerin~ Devices Limited Notes to financia l s ta tements for the year ended March 31 , 2019

22. Employee benefit expense

Salaries, wages and bonus Director Remunerations Contn buhon to provident and other fund Gratuity expense (note 34) Staff welfare expenses ESOP acturial expense

23. O ther expenses

Other 1\lanufatturin~ Expenses Consumption of stores and spares Power and Electricity Charges (Net)

Project Site Expenses Repair & Maintenance -- Plant & Machinery -Building Others

Administration, Sellin~ and other expenses

Freight, Cartage and Octroi (Net) Commission on sales Pre-operative expenses written-off CSR Expenditure Travel & Conveyance Rent Rates and Taxes Insurance Payment to auditor (Refer detai l below) Warranty Expenses Bad debts written off Less :- Reversal of Provision created on the same Advance to suppliers written off Less :- Reversal of Provision created on the same Provision for loan to wholly-owned Subsidiary

Othe(s

l'avmrnl In nnrlitnt' illt' ltuk • ·•

As a uditor: Audit fee Other Matters

For the year ended 1\la rch 31,2019

11,529,815

For the year ended March 31. 2019

6,944,773 7,476,342

23,6 15,811

2,918,783 432,058

4,976,331

14,268,445

154,666

1,249,966 23,018,344 19,243,401 1,368,730 1,602,087 1,500,000

964.823

11 ,529,815

34,880,215 161.120,922

(Amounts in Rs.)

For the year ended For the year ended 1\larch 31.2019 March 31.2018

149,554,843 187,609,480 R,4uO,uuu X,dOil,OM 7,152.440 8,243,8 11 l ,<i7!J,4!l~ 7,484,797 2,584,122 5,899,942 1.787.077

171,153.966 217.638.030

For the yea r ended For the year ended ~la rch 3 1,2018 March 3 1.201 8

37,6 14,824 11 ,002,097

152,394,404

12, 11 9,731 1,629,933

11 ,109,900

76,139,686

29,362,243 32,258,651

1,202,082 33,808,869 23,410,2 18

1,149,145 3,313,199 2,750,000 7.819.500

36.716,339 36,716,339

10,143,769 9.252.612 891,157

258,558

39,095,106 514.045.642

)lui th~ ~~ill ~llll~ll t•ur ttl~ y~:1r ~IIIWII

I\ larch 31, 2019 March 31.2018

1.500.000 2,250.000 500.000

1.500.000 2.750.000

Spray Engineering Devices Limited Notes to financial statem ents for the year ended March 31, 2019

24. Finance costs

Interest expense - on Term Loan - on Cash Credit Loan - on Foreign Currency Loan (Buyers credit) - on Vehicle loan

Other borrowing co&tD

25. Prior Period Items

Prior Period Expense Various Other expenses of earlier years Prior Period Expensd(lncome)(net)

The following reflects the profit/( loss) and share data used in the basic and diluted EPS computations: Nrt prnfit/(ln<<) fnr rq l rnl~ tinn nf rl ihot.,l Ji'l''>

Weoghted ~v~m~e nnmhrr of rrJIIity ~h~w• in r~lr11l~ting h~vir FP5 Effect of dilution: Weighted average number of equity share issued to Employee Welfare Trust. Weighted average number of equity shares in ealculatin!! diluted EPS

Voluted I:.I'S

(Amounts in Rs.)

For the year ended For the yea r ended 1\lnrch 31,20 19 March 31 , 2018

9 14,766 30,09 1,438

114,242 343,073

15.636,896 47. 1UU,4 1S

2,882,373 27,621,693

745,686 396,223

17.1YI.Ybl 58.843.937

For the year ended For the yea r· ended 1\larch 31,20 19 March 31,2018

3.701.317 2,282.454 3.70 1.317 2.282.454

For the ycnr utdtd F.:u lito .Y"·" cull<ll 1\larch 31,2019 Mar·ch 31, 2018

(50,')?7,2) I) !i!i,2!i0,2-l-1 No. No. JJ,IOS,837 22,1 05,0)7

48 1.688 48 I .297 12,:iR7,:'i2S 7?,'iR7,114

-2.) I 2.50

-2.26 2.45


1.1

27. Contingent Liability

a. Gu.arantees given by banks on behalfofthe Company Rs. 39,279,182 (P.Y. Rs. 10,340,000).

b. Disputed Income Tax Liability where department is in appeal amounting to Rs. Nil (P.Y. Rs. 49,575,232)

G. Thrr~ Ftrr: r.r:rtF! in r.l11imc; til t>rl neaimt th~ t:ompany by wm~t portioo whioh o••o pending with vnriuu~ jurisdictional authorities. The management has reviewed the same and esti111nte that these claims are IIUlleuable l:ln<.l l:lt the tltne of outcome ot these proceedings there wi ll be no material liability occur to the company.

d. Claims not acknowledge as debts amounting toRs 90,086 (P.Y. Rs. 4,426,000).

28. 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)

29. Corporate Social Responsibility As per provisions of section 135 of the Companies Act, 20 13, the Company has to incm 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 VIr of the Companies Act, 20 13

Details of CSR Expenditure:

a. Gross amount required to be spent by the Company durine the year

Amount in Rs Particulars As at 31st Ma1·ch

2019 Amount required to be spent by the Company 1,249,966

Total 1,249,966

b. Amount spent during the year Amount in Rs.

Particulars 31st 1\tarch 2019 Amount Amount yet Total Spent to be Spent

Construction I acquisition of any - - -assets On purpose other than I above - 1,249,966 1,249,966

-Total 1,249,966 1,249,966


30. During the year 420,45 1 Equity Shares were transferred 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 forfeitecl ~net vested back to the employee welfare trust and shares so forfeited will be issued to the cmpluyl.l-~ 1 iu fulu1~ vu 4dti ~;v"'lll~llll lfPP-1' 0lrlriHiit~l-\ l~rlrt>rli~

Purs1,1ant to the share distribution scheme the book value is considered as intrinsic value for the valuation of shares distributed to the employees. The face value of equity shares amounting to Rs. 4,816,880 (previous year Rs. 4,816,880) is deducted from the share capital account as per Guidance Note on Accounting for Employee Share-based Payments, issued by the Institute of Chartered Accountants of India).

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 Pa rticula rs No. of shares

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

31. The Company has recop,ni1.ed Miuimum Alternate Tax ("MAT") r.rr:rlit nnrl f' r Sf'rti(ln li5JAA of the Income-tax Act, 196 J 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 Company is making profits from past 5 years and also has a sizeable order in hand to be executed in FY 20 19 -20. In view of the management the company would be able to generate sufficient profits and be able to uti lize the MAT Credit Entitlement.

32. a) Disclosut·es in respect of operating leases a re given as fo llows:

S. No. Particula rs 2018-1 9 2017-18

(Rs.) (Rs.) O perating Lease (Cancellable)

A Lease payments recognized in the 19,243,401 23,4 10,2 18 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 Company has taken land on non-cancellable Lease and License Agreements with one party. An amount of 40,00,000 Rs. is debited to Profit and Loss Account for lht: year ended 31st March 20 I 9 (P. Y. fu. 4, 19J,500 i~ dcuilcu lu Pwfil ami Luss Aetuunr). The disclosure required to be madt: In accordnncc with Accounting ::>lanJcuLll~ uu "Lt:ast:s · is as under; ·

Future minimum lease payments payable under non-cancellable operating leases in aggregate for the following periods:

s. Particulars 2018- 19 2017-18 No.

A - Less than one year B - Later than one year but not later

than five years

c - Later than five years

TOTAL

33. Related Party disclosures

a. List of related parties

1. Key Management Personnel

_.Y!vek Verma Prateek Verma Lalit Handa

NehaChopra

2. Relative of Key Management Personnel N.K. Verma upto 7lh Febru<UJ:, 2019

Prabha Verma from I 51 March 2019

3. Subsidiary Companies

SED Engineers & Fabricators Private Limited

Sustainable Environment Developers Limited

4. Associa tes

IPRO Sugar Engineering Private Limited

(Rs.) (Rs.) Nil 1,000,000

Ni l Nil

- -N il 1,000,000

Managin2 Director Director- TP.~hni~~l Chief Finance Oflic~.:r (From September 14111

,

2017) Company Secretary (Upto June, 6111

, 20 I 9)


b. Transactions with Related Parties -(Amount ( In Rs

Nomo of Porty Na tun: ufTt·tiUSHCUUil ..lU1~-1Y 1017-1S

Vivek Verma Director's Remuneration '1,200,000 4,200,000

Prateek Verma Director's Remuneration 4,200,000 4,200,000

Lalit Handa Employee Benefit Expense 3,312,000 2,727,937

NehaChopra Employee Benefit Expense 7,34, 172 677,937

N.K.Venna Rent paid 3,85,000 420,000

Prabha Verma Rent paid 35,000

SED Engineers & Fabricators Reimbursement of expenses N il Nil Private Limited recovered

Reimbursement of expenses Nil Nil Paid

Sales during the year 2,986,8 14 Nil

Trade receivables 2,986,814 Ni l

Loan Given 5,82,875 258,558

Loan Repaid 3,658,538 N il

c. Balance Outstanding of Related Parties:

Name of Party Receivable I Payable 2018-2019 2017-18

VivekVerma Salary Payable 2,416,927 873,348 Prateek Verma Salary Payable 2,390,401 1,166,798 Lalit Handa Salary Payable 1,649,591 690,679 Neha Chopra Salary Payable 3,65,772 178,13 1 N.K.Verma Deposit Receivables Ni l 50,000 Prabha Verma Deposit Receivables 50,000 Nil

SED Engineers & Fabricators Private Limited Investments 100,000 100,000

Less : Provision for diminution in value 100,000 100,000

- -Sustainable Environment Developers Limited Investments 500,000 500,000

IPROSUGAR Engineering Private Limited Investments 250,000 250,000

SED Engineers & Fabricators Private Limited Loan Receivables 69,960,242 73,035,905


Less : Provision for doubtful advances 69,960,2112 73,035,905

- -

34. The 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 departur~ at 15 days salary (last drawn salary) for each completed yt;ar () r !'it:rvic:l".

The: fo llowing tables summariz~ the componentr. of not bonofit expense recognized in lite :;laltll tblll

of Profit and Loss Account and the amounts recognized in the balance sheet fitl\ t t:m t:n l .-.r 1'nJ111 & Lv:a~

Net employee ber.efit expenses (recognized in Employee Cost)

Particulars G ratuity Leave Encashment

2018-19 2017-18 2018-19 2017-18

(Rs.) (Rs.) (Rs.) (Rs.)

Current service cost 2,045,819 2,215,420 2,358,645 2,607,933

Interest cost on benefit 1,245,58 1 990,685 272,617 149,642 obligation Net actuarial (gain)/ loss (2,023,328) 1,205,012 (2,223,850) 316,105 recognized in the period

Net benefit expenses 1,268,072 4,411, 117 407,4 12 3,073,680 recognized in the Profit and Loss ale

Balance Sheet

Details of Provision fo•· gratuily

Particulars G 1·atuity Leiwe Encashment

2018-19 2017-18 2018-1 9 2017-18

(Rs.) (Rs.) (Rs.) (Rs.)

Present .value of Defined benefit 17,512,007 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 3,277,8 11

Short term : 1,555,865 1,482,692 3,10,999 357,085

Note: The above plans are non-funded.


Changes in present value of the defin ed benefit obligation are as follows:

-

Note:

l-art•culflrS ~rlltnity Lonvo Enonohmont

1018-19 'lUl'/- 1~ 20 l H-19 2017-18

(Rs.) (Rs.) (Rs.) (Rs.)

Opening defined benefit 16,607,745 12,383,564 3,634,895 1,870,525 obligation

Interest cost 1,245,581 990,685 272,617 149,642

Current service cost 2,045,8 19 2,2 15,420 2,358,645 2,607,933

Benefit paid (363,810) (186,936) (405,353) ( I ,309,309)

Actuarial (gains)/ losses on (2,023,328) 1,205,0 12 (2,223,850) 316,105 obligation

Closing defined benefit 17,512,007 16,607,745 3,636,955 3,634,895 obligation

T he principal assumptions used in determining gratuity obligations fo•· the Company's plans are shown below:

Particulars 2018-19 2017-18

(%) (%)

Discount rate 7.5 8

Expected Increase in 7 7 Compensation cost

Attrition 10 10

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

Amounts of G1·a tuity for the cu.-rent and previous four year a r e as follows: Particulars Gratuit,r

2018-19 2017-1 8 2016- 17 20 15-16 2014-15 (Rs.) (Rs.) (Rs.) (Rs.) (Rs.)

Defined benefit obligation 17,512,007 16,607,745 12,383,564 10,515,433 7,609,504

Plan assets - - - -Surplus!( deficit) (17,51 ~,007) (16,607,745) (12,383,564) ( 10,5 15,433) (7 ;609 ,504)

Actuarial gainl(loss) on 2,023,328 1,205,012 (2 18,459) 997,181 1,792,865 Defined benefit obligation

Actuarial gain/ (loss) on plan - - - - -assets


35. 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 expected warranty claims on products sold. It is expected that most of this cost will be incurred over the warranty period as per warranty terms. Assumption used to calculate the provision for warranties were based on current year sales level and the expected fai lure in respect of defectives.

Warranty Provision 2018-19 2017-18

(Rs.) (Rs.)

Opening Balance 8,739,871 3,386,008

Additions during the year 6,865,459 7,8 19,500

Less: -Amounts used during the year 9,805,245 2,465 ,637

Closing Balance 5,800,084 8,739,871

Provision for P~'•·fnrm:mce

/\ provioion io rooogniz:cd bn.5c.u u11 lllrtll..t~t:lllettl's ~slliiHHI:! fot' expected pertonmmcc Glll ims on j)l'oducts suld. II rs (:': X p~ded that most of this cost will be incurred over the jJt:lfunuam:t:: period given as per performance terms. Assumption used to calculate the provision for performances were based on current ye~r sales level and the expected failure 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 I 02,396,149

Less: -Amounts used during the year 61,959,830 77,037,871

Closing Balance 19,913,279 65,990,373


36. Foreign Currency exposure that are not hedged by derivative instnummts as at Balance Sheet date: -

2018-19 2017-18

Particulars Currency Amount in Amount in Foreign Exchange Rs. For·eign Exchange Rs.

currency Rate currency Rate

Trade USD 3,26,219 68 .35 22,297,068 3 18,741 65.0441 20,732, 195

receivables EURO 2,264 77.05 1,74,449 24 1,097 80.6222 19,437,780

Trade USD 120,000 68.35 8,202,000 122,000 oS .0441 7,935,380 -

Payables EURO Nil Nil Nil 6,635 80.6222

37. Segmental Reporting

Identification of Segments

Primary Segments- Business Segment

The Company's Operations predominantly comprise of only one segment i.e. Engineering Equipment. In view of the same, separate segmental information is not re·quired to be given as per the requirements of Accounting Standard 17- Segment reporting.

Information pertaining to Secondary Segment

Revenue as per Oeugraphical Locations

Particulars 2018-19 2017-18 (Rs.) (Rs.)

Within India 473,670,206 2,493,643,305 Outside India I 06,531 ,887 663,577,324

Total 580,202,093 3,157,220,629

Debtors as per Geographical Locations


(Rs.) (Rs.)

Within India 413, 116,390 480,974,5 10

Outside India 22,471 ,5 18 40, 169,976

Total 435,587,908 521,144,485

Property, plant & equipment's as per Geographical Locations: -

534,928


The Company has common Property, plant & equipment' s for producing goods for domestic as well as overseas market. Hence, segment-wise information for Property, plant & equipment's! additions to Property, plant & equipment's cannot be furnished.

38. Aggrcgntc Consumption uf Ruw Material & r.omponeuts ( lmpm·t<>d & Indigenous)

1,()1 R 1 C) 2017-16 % ofTotal Value (Rs.) % ofTota l Value (Rs.)

Raw Material Imported 2.82 7,982,097 9.74 76,997,707 Indigenous 97.18 274,646,969 90.26 7 13,24 1,037

Total 100 282,629,066 100 790,238,744 Stores & Spares Imported 22.90 1,590,303 4.62 1,738,344 Indigenous 77.10 5,354,470 95.38 35,876,480

Total 100 6,944,773 100 37,614,824

39. Value of Imports Calculated on CIF basis

Particulars 2018-19 2017~ 18 (k!~ . ) (R~.)

Ruw Material& Componeuls 76,79,910 87,31 7,8~4

Plant & Machinery - 10,245,140

Software - -Total 76,79,910 97,563,024

40. Ear~ing in Foreign Exchange (on accJ"Ual basis):


(Rs.) (Rs.)

Export of Goods (FOB 95,218,663 660,831,565. Value basis)

Export of Services 9,718,840 2,745,759

Total 104,937,503 663,577,324

41. Expenditure in Foreign Currency (on accrual basis):


(Rs.) (Rs.)

Foreign Travel 2,606,148 365,035

Commission - 23,545,143

Professional Fees - 545,234


Bank Charges 335,006 209,756

Others 30,885 -Total 5,128,110 24,665,168

42. Disclosures with regards to section 186 of the Companies Act, 2013 I) For Investments, refer Notlj-1 0 2) For Loan given-

The Company has granted interest free Unsecured loan to a wholly owned Subsidiary for General Corporate Purpose. Details of the same is as below-

Particulars 2018-19 2017-18 Rs. Rs.

SED Engineers & Fabricators Private Limited 69,960,242 73,035,905 Less: Provision for doubtful advances 69,960,242 73,035,905

- -

43. 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

Place: Mumbai Date : 20-09-20 19

For Spray Engineering Devices Limited

Sudhir Kumar ·~ain, ~ protess1ona J

. lnsolvenoocy0"'31120H-1611~467) I 3J.l! P_A-0031\P·N I

olutio"~M\ressional

t~CYf\0 M~ Chief Financial Officier

CM CfvV) ol i jJ- d4 t, ~- oC( ,_ ?-0 IC/

Rinl<al Goyal Company Secretary Membership No. A44109

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