Suprajit Engineering Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2021
Auditor and Management Disclosures and Notes for the annual results dated 31 Mar 2021
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 May 29, 2021.
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 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.
4 The full impact of COVID-19 still remains uncertain and could be different from the estimates considered while preparing these standalone financial results. The Company will continue to closely monitor any material changes to future economic conditions.
5 Exceptional items for the quarter and year ended March 31, 2020 includes the following:
(a) The Company carried out annual impairment exercise during the quarter and year ended March 31, 2020 in respect of investment in subsidiaries and basis valuation carried out by an external specialist, the Company 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. The Company carried out annual impairment exercise for the year ended March 31, 2021 in respect of investment in subsidiaries and carrying value is considered to be appropriate.
(b) Provision of Rs. 97.95 million in respect of investment in Franklin Templeton Mutual Fund schemes which have been wound up. The Company has realised significant portion of investments during the year 2020-21 and aforesaid provision is considered to be adequate.
6 The Code on Social Security, 2020 which received the President's assent on September 28, 2020 subsumes nine laws relating to Social security, retirement and employee benefits, including the Provident Fund and Gratuity. The effective date of the Code and rules thereunder are yet to be notified. The impact of the changes, if any, will be assessed and recognised post notification of the relevant provisions.
7 On February 10, 2021, the Board of Directors approved a proposal to Buy-back up to 1,500,000 fully paid equity shares of Rs. 1 each (representing 1.07% of paid-up equity share capital) from the shareholders of the Company on a proportionate basis through tender offer, at a price of Rs. 320 per fully paid-up equity share for an aggregate amount not exceeding Rs. 480 million in accordance with the provisions contained in the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018, as amended and the Companies Act, 2013 and rules made thereunder. Subsequently, the proposed buy-back has been completed on May 12, 2021.
8 The Board of Directors have recommended final dividend of Re.l/- (100%) per equity share (face value: Re. 1/- each) for the financial year 2020-21 in addition to an interim dividend of Re. 0.75 (75%) per share declared and paid during the year 2020-21. The Company had paid two Interim dividends of Re.0.75 (75%) per share and Re.l/- (100%) per share, aggregating to Rs.1.75 (175%) per share for the financial year 2019-20.
9 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.