Salzer Electronics Ltd. — Interim / Quarterly Report 2019

Oct 27, 2018

October 27, 2018

To

THE CORPORATE RELATIONSHIP DEPT
BSE Limited
I Floor, New Trading Ring,
Rotunda Building,
P.J.Towers, Dalal Street,
Fort, Mumbai - 400 001.

M/s. National Stock Exchange of India Ltd., Exchange Plaza, C-1, Block G, BandraKurla Complex. Bandra (E).Mumbai - 400 051 Tel:+91 22 26598235/36, 26598346 Fax: +91 22 26598237/38

SCRIP CODE: 517059

Symbol: SALZERELEC

Dear Sirs,

Sub: Resubmission of financial Result for the period ended 30.09.2018.

Further to our filing of outcome of Board meeting held on 27.10.2018, we are hereby submitting the revised Financial Results for the half year / second quarter ended 30.09.2018 after rectification of errors crept in the Totals in 30.09.2017 column of Statement of Balance Sheet.

May kindly be acknowledged the receipt and take on your record.

Thanking you Yours faithfully For Salzer Electronics Limited

S Baskarasubramanian Director (Corporate Affairs) & Company Secretary (DIN: 00003152 & FCS:4605)

Samichettipalayam, Coimbatore - 641 047, India. Phone: ++91 422 4233600 Fax: ++91 422 2692170 E-mail: salzer@salzergroup.com Website: www.salzergroup.com

SALZER ELECTRONICS LTD.

CIN: L03210TZ1985PLC001535

Statement of Un-audited Financial Results for Quarter and Half year ended 30th September 2018

					Rs. In Lacs except for per share data
		Quarter ended			Half year ended		Year ended
	Particulars	30-09-2018	30-06-2018	30-09-2017	30-09-2018	30-09-2017	31-03-2018
$\overline{1}$	Income
a.	Revenue From Operations	13,471.84	12,646.83	10,074.08	26,118.67	21,588.57	45,333.17
b.	Other Income	14.54	15.63	134.47	30.17	335.40	310.24
	Total Income	13,486.38	12,662.46	10,208.55	26,148.84	21,923.97	45,643.41
$\mathbb{H}$	EXPENSES
a.	Cost of materials consumed	9,376.59	10,121.70	7,293.43	19,498.29	14,877.92	35,717.26
b.	Purchase of stock in trade	414.45	54.03	$\overline{0}$	468.48	122.76	140.77
C.	Changes in inventories of finished goods,	62.87	$-567.99$	$-13.84$	$-505.12$	89.39	$-3,512.29$
d.	work-in-progress and stock-in-tradeExcise duty on sales	0.00	$\Omega$	0.00	0.00	1,056.03	1,056.03
e.	Employee benefit expenses	666.99	593.39	514.48	1,260.38	978.46	1,985.69
f.	Finance Cost	475.84	467.60	348.09	943.44	746.45	1,491.25
g.	Depreciation and amortisation expense	327.02	310.78	228.59	637.80	495.73	1,053.61
h	Other expenses	1.280.03	1,048.39	989.48	2,328.42	2,124.13	4,617.23
	TOTAL EXPENSES	12,603.79	12,027.90	9,360.23	24,631.69	20,490.87	42,549.55
$\mathbf{III}$	PROFIT BEFORE EXCEPTIONAL ITEMS ANDTAX	882.59	634.56	848.32	1,517.15	1,433.10	3,093.86
	Exceptional items					$\bar{\omega}$
IV	PROFIT BEFORE TAX	882.59	634.56	848.32	1,517.15	1,433.10	3,093.86
	Current Tax	256.45	136.75	170.36	393.20	304.96	701.57
	Deferred Tax	64.05	43.41	96.65	107.46	140.30	390.64
$\vee$	PROFIT AFTER TAX	562.09	454.40	581.31	1,016.49	987.84	2,001.65
VI	OTHER COMPREHENSIVE INCOME
	Items that will not be reclassified to profitor loss	$-12.37$	$-12.37$	25.02	$-24.74$	22.98	$-45.07$
VIII	TOTAL COMPREHENSIVE INCOME FORTHE PERIOD	549.72	442.03	606.33	991.75	1,010.82	1,956.58
1X	Paid up share capital - equity shares ofRs.10/- each	1,594.71	1,562.37	1,449.67	1,594.71	1,449.67	1,499.67
X	Reserves and Surplus (Other Equity)	÷,	÷.	×,			25,507.42
XI	EARNINGS PER SHARE
a.	- Basic after exceptional items (in Rs.)	3.56	2.98	4.03	6.54	6.85	13.82
b.	- Diluted after exceptional items (in Rs.)	3.53	2.91	3.93	6.45	6.67	13.45

Samichettipalayam, Coimbatore - 641 047, India. Phone: ++91 422 4233600 Fax: ++91 422 2692170 E-mail: salzer@salzergroup.com Website: www.salzergroup.com $\frac{1}{2}$

Notes forming part of above results

• $\mathbf{i}$ The Company operates in only one segment viz., Electrical installation products.
• $ii)$ The above Un-audited financial results were duly reviewed by the Audit Committee at its meeting held on October 27, 2018 and were taken on record and approved by the Board of Directors at their meeting held on October 27, 2018 along with the Limited Review Report issued by the Statutory Auditor on Quarterly Financial Results
• $iii)$ Financial Figures for Six Months and Second quarter ending 30/09/2018 include the revenue from an undertaking as acquired from Salzer Magnet Wires Limited on March 08, 2018. Hence the Figures for Six Months and Second quarter ending 30/09/2017 are not comparable to the extent with the Figures for Six Months and Second quarter ending 30/09/2018
• $iv)$ During the First Six months period, the Company added 9,50,400 shares of Rs.10/- in its equity share capital by following means:
  • Allotment of 4,20,400 Equity Shares of Rs.10/- each to the employees on exercising the i. options by the employees under the Employees Stock Options Scheme (2012-13).
  • Allotment of 5,30,000 Equity Shares, credited as fully paid-up against conversion of5,30,000 Non Cumulative 5% Convertible preference Shares ("NCCPS") by Salzer ii. Magnet Wires Limited who subscribed NCCPS as a part sale consideration towards sale of its whole of the business undertaking to the Company on March 08, 2018 as per the business transfer Agreement.
• The revenue from the operations for first six months period September 30, 2017 and for the $V)$ year ended March 31, 2018 is inclusive of Excise Duty. Goods and Service Tax ("GST") has been implemented with effect from July 01, 2017 which replaces excise duty and other taxes. As per IND AS 115, the revenue for first quarter ended June 30, 2018 and Second Quarter and Six Months period ending September 30,2018 is reported net of GST.
• AS 115 Revenue from contracts with customers has been made mandatory with effect from $vi)$ 1-April-2018. The Company has continuing contracts with customers entered into prior to 01-April-2018 which require adjustment in accordance with transitional provisions for application of IndAS standards. The Company has accordingly opted the Modified Retrospective Approach for carrying out adjustments in respect of past periods prior to 01-April-2018 and effected a reduction of Rs310.78 Lakhs in retained earnings.
• $Vii)$ Basic Earnings per share and Diluted Earnings per Share have been prepared in accordance with IND AS 33 and presented on the expanded capital prevailing on the relevant date.
• viii) Comparative figures have been regrouped / reclassified wherever necessary to confirm to current period's presentation.

For SALZER ELECTRONICS LIMITED

Waypartory N.RANGACHARY CHAIRMAN

Coimbatore - 641 047. October 27, 2018

Samichettipalayam, Coimbatore - 641 047, India. Phone: $+ + 914224233600$ Fax: $+ + 914222692170$ E-mail: salzer@salzergroup.com Website: www.salzergroup.com

SALZER ELECTRONICS LTD.

CIN: L03210TZ1985PLC001535

		STATEMENT OF BALANCE SHEET AS AT SEPTEMBER 30, 2018
	Particulars	30/09/2018	30/09/2017
I ASSETS		Rs. In Lacs	Rs. In Lacs
$\mathbf{1}$	Non-current Assets
(a)	Property, Plant and Equipment	16,928.05	14,063.15
(b)	Capital Work in progress	167.76	849.24
(c)	Investment Property	0.77	0.77
(d)	Intangible Assets	451.81	169.57
(e)	Financial Assets
	i. Investments	67.19	139.60
	ii. Trade Receivables	1,862.49	3,125.34
	iii. Others	1,545.82	139.10
(f)	Other Non-Current Assets	314.89	294.76
	Total Non-Current Assets	21,338.78	18,781.53
$\overline{2}$	Current Assets
(a)	Inventories	13,973.03	9,475.81
(b)	Financial Assets
	i. Investments	253.58	200.13
	ii. Trade Receivables	12,233.96	11,451.24
	iii. Cash and Cash equivalents	906.62	1,054.34
	iv. Other Bank balances	941.18	521.64
	v. Loans	3,891.94	4,032.28
	vi. Others	289.99	293.66
(c)	Other Current Assets	2,105.33	1,767.34
	Total Current Assets	34,595.66	28,796.44
	TOTAL ASSETS	55,934.41	47,577.97
	EQUITY AND LIABILITIES
EQUITY
(a)	Equity Share Capital	1,594.71	1,449.67
(b)	Other Equity	25,968.09	22,910.57
	Total Equity	27,562.79	24,360.24
	LIABILITIES
1	Non-current Liabilities
(a)	Financial Liabilities
	i. Borrowings	401.18	941.91
(b)	Provisions	40.00	32.72
(c)	Deferred tax liabilites (net)	2,283.79	1,926.58
	Total Non-current Liabilities	2,724.95	2,901.21
$\overline{2}$	Current Liabilities
(a)	Financial Liabilities
	i. Borrowings	11,773.45
	ii. Trade Payables	6,395.88	10,239.192,932.63
	iii. Others	1,180.03
(b)	Other Current Liabilities		1,113.18
		5,847.00	5,698.48
(c)	ProvisionsCurrent Tax Liabilities (Net)	57.08	28.08
(d)	Total Current Liabilities	393.20	304.96
	TOTAL EQUITY AND LIABILITIES	25,646.6955.934.41	20,316.5247.577.97

$\overline{a}$

Samichettipalayam, Coimbatore - 641 047, India. Phone: ++91 422 4233600 Fax: ++91 422 2692170 E-mail: salzer@salzergroup.com Website: www.salzergroup.com

Swamy & Ravi CHARTERED ACCOUNTANTS 90 Co-Operative "A" Colony, K.K. Pudur, Coimbatore - 641 038. Ph: 0422 - 2446537, 4384536 F-mail: sr cas2004@yahoo.co.in

Ref. No.:

Date:

LIMITED REVIEW REPORT ON THE UN-AUDITED STANDALONE FINANCIAL RESULTS FOR THE SECOND QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2018

THE BOARD OF DIRECTORS. SALZER ELECTRONICS LIMITED. COIMBATORE -641047

• 1. We have reviewed the Un-audited Standalone Financial Results of SALZER ELECTRONICS LIMITED ("the Company") for the Second Quarter and Half year ended September 30,2018 ("the Statement"), being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as modified by Circular No. CIR/CFD/FAC/62/2016 dated July 5, 2016.
• 1. This Statement which is the responsibility of the Company's Management and approved by the Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34 "Interim Financial Reporting" ("IND AS 34"), prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India, and has been approved by the Board of Directors at their Meeting held on October 27,2018. Our responsibility is to issue a report on the Statement based on our review.
• 1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity', issued by the Institute of Chartered Accountants of India. This Standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review is limited primarily to inquiries of Company personnel and analytical procedures applied to financial data and thus provide less assurance than an audit. We have not performed an audit and, accordingly, we do not express an audit opinion.
• 1. Based on our review conducted as stated above, nothing has come to our attention that causes us to believe that the Statement has not been prepared in all material aspects in accordance with applicable Indian Accounting Standards prescribed under Section 133 of the Companies Act 2013 and other recognized accounting practices and principles generally accepted in India and has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as modified by Circular No. CIR/CFD/FAC/62/2016 dated July 5, 2016, including the manner in which it is to be disclosed, or that it contains any material misstatement.

For Swamy & Ravi Chartered Accountant (Firm's Registration No. 004317S)

S.Alamelu PARTNER Membership No. 223555

Date: October 27,2018 Place: Coimbatore -641038