Suprajit Engineering Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2020

1. The above results have been reviewed by the Audit Committee and approved by the Board of Directors of the Company at their respective meetings held on June 12, 2020.

2. The standalone financial results have been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard (Ind AS) prescribed under Section 133 of the Companies Act, 2013 read with relevant rules thereunder and in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.

3. With effect from April 1, 2019, the Company has adopted IND AS-116 using the modified retrospective approach and accordingly previous period information has not been restated. Under this approach, the Company has recognised lease liabilities and corresponding equivalent right-of-use assets. The application of IND AS-116 did not have any significant impact in the standalone financial results of the Company.

4. The Company is engaged in the business of manufacturing and selling of automotive and other components, which are monitored as a single segment by the chief operating decision maker, accordingly, these, in the context of Ind AS 108 on operating segments reporting are considered to constitute one segment and hence the Company has not made any additional segment disclosure.

5. The outbreak of COVID-19 pandemic and the resulting lockdown enforced from March 23, 2020 have effected Company's regular operations. The Company has made an assessment of its liquidity position for the next year and has assessed the carrying value of property, plant and equipment, investments, inventories, receivables and other current assets. In developing the assumptions relating to the possible future impact on the operations, the Company as on the date of approval of these financial results has used internal and external information which are relevant in determining the expected future performance of the Company. Based on the evaluation of liquidity position and recoverability of assets and other such estimates, the Company expects the carrying amount of Assets will be recovered. The impact of COVID-19 on the Company's financial results may differ from that estimated as on the date of approval of these financial results.

(a) The Company has carried out the annual impairment exercise for the year ended March 31, 2020 in respect of investment in its subsidiaries and basis valuation carried out by an external specialist, the Company has made impairment provision of Rs. 107.97 million towards investment in Luxlite Lamp SARL and Rs. 54.00 million towards investment in Trifa Lamps Germany GmbH.

(b) As on March 31, 2020, the Company has an investment of Rs. 979.49 million in Franklin Templeton Mutual Fund (FTMF), valued at Net Asset Value (NAV) as on said date. FTMF has voluntarily decided to wind up six of its fixed-income debt schemes effective April 23, 2020 and FTMF has communicated that NAV per unit will continue to be computed and declared as per the same accounting and valuation principles as done prior to April 23, 2020 without any change. In preparing the accompanying standalone financial results, the Company has made an assessment and made a provision of Rs.97.95 million on a best estimate basis, factoring regular updates given by FTMF, maturity profile of schemes and other factors such as historical yield, expected future returns from the underlying investments made by the funds etc.

7. The Board of Directors, at its meeting held on February 01, 2020, has declared interim dividend of Re. 0.75 (75%) per equity share (face value: Re 1/- each) and also, at the Board Meeting held on March 03, 2020, the Board has declared a second interim dividend of Re. 1 (100%) per equity share (face value: Re 1/- each) for the year. Board after careful assessment has confirmed the interim dividend as final. Total dividend paid during the year is thus, Rs. 363.66 million as against Rs. 209.81 million during the year 2018-19.

8. The employee benefits expense for the quarter ended March 31, 2020, is net of reversal of Rs. 46.97 million pertaining to share based payments recognised as a cost in previous period and reversed in quarter ended March 31, 2020 since no longer required.

9. On September 20, 2019, the Government of India vide the Taxation Laws (Amendment) Ordinance 2019, inserted Section 115BAA in the Income Tax Act, 1961, which provides domestic companies an option to pay Income tax at reduced rate effective April 1, 2019 subject to certain conditions. The tax expenses for the quarter and year ended March 31, 2020 have been provided for at reduced tax rate.

10. The figures of last quarter of current year and previous year are the balancing figures between the audited figures in respect of the full financial year and the published unaudited year to date figures for nine months of the respective year