Salzer Electronics Ltd. — Interim / Quarterly Report 2020

Feb 27, 2020

February 06, 2020

TO

BSE Limited Exchange Plazar C-l, Block G, ^I Floor, New Trading Ring, BandraKuria Complex, Rotunda Building, Bandra (E),Mumbai — 400 051 P.J.Towers, Dalai Street, Tel :+91 22 26598235/36, 26598346 Fort, Mumbai — 400 001. Fax : +91 22 26598237/38

THE CORPORATE RELATIONSHIP DEPT M/s. National Stock Exchange of India Ltd.,

SCRIP CODE: 517059 Symbol: SALZERELEC

Dear Sir,

Sub : Outcome of the Board Meeting — Submission of the Financial results in compliance with Regulation 33 0f SEBI (Listing Obligations and Disciosure Requirements) Regulation 2015 ("SEBI LODR Regulations")

Ref : Our letter dated December 27, 2019

This is to inform in terms of Regulation 30 of SEBI LODR Regulation and with reference to our letter referred above that our Board of Directors of the Company at their meeting held today (February 06, 2020 ) considered and approved the following Un audited Financial Results as required under Regulation 33 of SEBI LODR Regulations:—

• a) Standalone Un—audited Financial Results for the Nine Months and Third Quarter period ending December 31, 2019 together with the Limited Review report of the Statutory Auditor M/s. JDS Associates, Chartered Accountant, Coimbatore - 641002 and
• b) Consolidated Un-audited Financial Results for the relevant period together with the Limited Review report of the Statutory Auditor M/s.JDS Associates, Chartered Accountant, Coimbatore -641002.

Enclosed herewith both Standalone and Consolidated Un-audited Financial Results along with the Limited Review Report of the statutory auditor for your records and dissemination to the stakeholders. ^A copy of the same wiil be uploaded in the Company's website www.salzergroughet.

Further, Pursuant to Regulation ⁴⁷ of SEBI LODR Regulations an extract of the aforesaid financial results in the manner prescribed under the SEBI Listing Regulations will be published in English and Tamii newspapers within time stipulated.

The Meeting commenced at 11.00 a.m and closed at ¹ ' ³⁰ (PM

May kindly be acknowledged the receipt.

Thanking you Yours faithfully For Saizer Electronics Limited

"S'Baskarasubramanian

Director (Corporate Affairs) & Company Secretary

Encl : As above

|--|--|

Statement of Standalone Un-aud'ited Financial Results for Quarter and Nine Months ended December 31,2019 Rs. in Lacs exceptfor per share data

ELECTRONICS L03210TZ1985PLCOO1535		LTD.				EEIZEI"
Un-aud'ited Standalone of Statement	Results Financial	Quarter for	and Nine	ended Months Lacs Rs. in	December exceptfor per	31,2019 data share ended Year
	31-12-2019 Un-Audfled	Quarter ended 30-09-2019 Un-Audued	31-12'2013 Un-Audfled	Months Nine 31—12-2019 Un-Audfled	ended 31—12-2018 Un-Audned	31-03-2019 Audfled
Income Revenue From Operations	13,471.38	13,778.93	14,354.10	43,464.76	40,472.77	55,976.62
: Other Income Total Income	10.20 13,481.58	25.59 13,804.52	13.35 14,367.45	103.16 43,567.92 '	43.52 40,516.29	70.7 56,047.32
SALZER CIN Particula rs 8. 1) EXPENSES II Cost of materials consumed a. Changes in inventories of finished goods,work~in-progress and stock-'In	9,640.11 -5.87	10,826.57 -651.55	11,082.15 -421.29	33,489.26 -1,028.75	31,048.92 926.42	41,933.48 -52.18
b. trade Employee benefit expenses c.	721.13	620.58	759.14	1,974.28	1752.67 1433.36	2,489.37 1,988.47
Finance Cost Depreciation and amortisation expense	500.15 368.94 1,445.16	539.99 360.21 1,232.73	489.92 336.89 1,324.53	1,572.88 1,076.26 3,940.69	974.70 3,919.80	1,215.96 5,241.38
Other expenses TOTAL EXPENSES PROFIT BEFORE EXCEPTIONAL ITEMS	12,669.62 811.96	12,928.53 875.99	13,571.34 796.11	41,024.62 2,543.30	38,293.03 2,313.26	52,816.48 3,230.84
Exceptional items PROFIT BEFORE TAX	811.96	875.99	— 796.11 183.64	— 2,543.30 508.06	2,313.26 548.06	3,230.84 743.09
Current Tax Deferred Tax PROFIT AFTER TAX	137.32 123.98 550.66	132.53 149.30 594.16	72.1 540.37	310.38 1,724.86	270.38 1,494.82	92.01 2,395.74
OTHER COMPREHENSIVE 1NCOME Items that will not be reclassified to	8.19	-36.76	—12.37	-33.17	-37.12	-18.39
d. e f ill IV V 8. b. VI VII Vlil profit or loss TOTAL COMPREHENSIVE INCOME FOR IX	558.85	557.40	528.00	1,691.69	1,457.70	2,377.35
THE PERIOD Paid up share capital - equity shares of Reserves and Surplus (Other Equity)	1,598.27 -	1,598.27 —	1,594.71 -	1,598.27	1,594.71	1,598.27 27,101.18
EARNINGS PER SHARE - Basic after exceptional items {in Rs.)	3.44	3.72	3.39 3.39	10.79	9.93 9.83	15.21 15.10
X XI XII a. b. — Diluted after exceptional items (in Rs.)	3.44	3.72		10.79		For Salzer Electronics Limited
Date : February 06, 2020 Place : Coimbatore						(' 1A0""V6311"?
						N Rangachary Chairman DIN:00054437

(' 1A0""V6311"? N Rangachary

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

36:55.5...EEEEJRON'CS LTD- EEIZEI"

Notes forming part of above standalone results

• 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 February 05, 2020 and were taken on record and approved by the Board of Directors at their meeting held on February 06, 2020 along with the Limited Review Report issued by the Statutory Auditor on Financial Results for third quarter and Nine Months Period ending December 31, 2020.
• iii) The Company, as a Promoter, earlier had held 76.92% equity stake with voting rights in Kaycee Industries Limited ("Subsidiary Company"). During the quarter under review, it diluted 2.01% equity stake in the open market and reduced its holding to 74.91% which enabled the subsidiary company complying with the norms of minimum public shareholding of not less 25% in terms of Rule 19(2) and Rule 19A of the Securities Contracts (Regulation) Rules, 1957 and Regulation 38 of SEBI (Listing Obligations and Disclosure Requirements) 2015.
• Previous period figures have been regrouped / reclassified wherever necessary to confirm to current period's presentation.

For SALZER ELECTRONICS LIMITED

[Létth/Juj

(DIN: 00054437)

Coimbatore — 641 047. N.RANG ARV February 06, 2020 ' HAIRMAN

J D S ASSOCIATES CHARTERED ACCOUNTANTS

LIMITED REVIEW REPORT

To

The Board of Directors, Saizer Electronics Limited Coimbatore ~64]. 047

Dear Sirs,

• 1. We have reviewed the accompanying statement of standalone unaudited financial results of Saizer Electronics Limited (CIN:L03210T21985PLC001535) having its Registered Office at Samichettipalayam, Coimbatore -641047 for the quarter ended December 31, ²⁰¹⁹ and year to date results for the period from April 01, ²⁰¹⁹ to December 31, ²⁰¹⁹ being submitted by the company pursuant to the requirement of Regulation ³³ SEBI (Listing Obligations and Disclosure Requirements) Regulations ²⁰¹⁵ ("SEBI LODR Regulations") as modified by circular SEBI No.CiR/CFD/FAC/62/2016 dated July 05, 2016;
• 1. This statement which is the responsibility of the Company's Management and approved -by the Board of Directors at their meeting held on February 06, ²⁰²⁰ has been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard ³⁴ "Interim Financial Reporting" (1ND AS 34) prescribed under section ¹³³ of the Companies Act, ²⁰¹³ read with relevant Rules issued there under and other accounting principles generally accepted in India. Our responsibility is to issue a report on these financial statements based on our review;
• 1. We conducted our review of the statement in accordance with the Standard on Review Engagement (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 financial statements are free of material misstatement. ^A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provides less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.

880., F'C'A" ¹⁵¹ Floor, Jewel Complex 3'36: LRG L319". 51h \$11991 7-A. Sri Nagar. Behind Sungam 254, Gandhiji Road ⁶⁴² {Old # 324) Rafa Street ABT Road, Karuvampalayam Ramanathapuram ERODE - ⁰³³ 001. COIMBATORE - ⁰⁴¹ 001. TIRUPUR - ^{641 604} COIMBATORE- ^{041 045} Tel : 0424-2269599 Tel : ⁰⁴²² - 2304731, ^2390882 Tel : ^{0421 4322843} Tel : ⁰⁴²² - ^2312899 Ceil : ^{90427 27344} Cell : ^{99444 57928} Cell : ⁹⁸⁹⁴² 8880? Cell : ^{90430 00753} E-mail : casaminalhan@yahoo.co.in E-mall : biayaramca@yahoo.oo.in E-mail ³ kplaiha1995@gmail.com E-mail :jfrankca@gmail.oom

.0 T. SAMINATHAN B. JAYARAM K-P- LATHA J. FRANKLIN DAVID B.Com., F.C.A.. 915,0" M.Com., F.C.A., 0.1.S.A.. M.Com.. 50A,,

¹ ".1.

J D S ASSOCIATES CHARTERED ACCOUNTANTS

1. Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying statement of unaudited financial results prepared in accordance with the aforesaid Indian accounting standards and other accounting principles generally accepted in India 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.ClR/CFD/FAC/62/2016 dated July 05, ²⁰¹⁶ including the manner in which it is to be disclosed or that it contains any material Misstatement.

,..9.'

For JDS ASSOCIATES Chartered Accountants FRN : 0087355

(BJAYARAM) Partner Memb.No : 028346

Date : February 06,2020

Place : Coimbatore

UDIN:9?@0J,532{é H1109 BC/glé)

/

T. SAMINATHAN 13. JAYARAM K-P- LATHA J. FRANKLIN DAVID 3,001", F,C.A., D.I.S.A., M.Com., F.C.A., D.I.S.A., M.Com.. F.C.A.. B'SC" F'C'A" 1st Floor, Jewel Compiex 3'33. LRG Lay-oui, 5Eh 31193! T-A, Sri Nagar, Behind Sungam 254, Gandhiji Road ⁶⁴² (Old ¹¹ 324) Rafa Street ABT Road. Karuvampaiaram Ramanaihapuram ERODE - ⁵³⁰ 001. COIMBATORE - ⁵⁴¹ 001. TIRUPUR - ^{541 604} COIMBATORE - ^{041 045} Tel : ^04242299599 Tel : ⁰⁴²² - 2304731, ^2390002 Tel : ^{0421 4322843} Tel : ⁰⁴²² - ^2312099 Cell : ^{98427 27344} Cell : ^{99444 57929} Cell :98942 8880? Cell : ^{90430 00753} E-maii : casaminaihan@yahoo.oo.in E—mail : bjayaramca@yahoo.co.in E-mail ^I kplama1995@gmail.com E-maii :jfrankca@gmail.oom

Statement of Consolidated Un—audi'ted Financial Resuits for Third Quarter and Nine Months ended December 31,

ELECTRONICS LTD. L03210TZ'1985PLCOO1535 and Months ended December Statement Nine of Consolidated for Quarter Un—audi'ted Financial Resuits Third 2019 per except share Rs. in Lacs for ended ended Quarter Quarter 31-12-2019 311-119-2019 Un-Audited Un-Audited Incume From Revenue Operations 14,037.34 14,388.98 3. Income Other 12.97 30.55 b Total income 14,419.53 14,050.31 EXPENSES ll Cast of materials consumed 9,873.55 10,478.88 a. Changes in inventories of finished goods,work-in-progress 34.24 -29.32 b. nnrl Rtnrk-ln-tmdp Employee benefit expenses 836.45 737.20 c. Finance Cost 501.69 543.47 11. Depreciation and amortisation expense 370.66 379.40 e. Other expenses 1,579.47 1,361.44 f. TOTAL EXPENSES 13,204.80 13,462.33 3.	AND BEFORE TAX EXCEPTIONAL ITEMS PROFIT 957.20 845.51 Ill Exceptional items IV V BEFORE TAX PROFIT 957.20 845.51	Expenses Tax 313.25 264.02 VI AFTER TAX PROFIT 643.95 581.49 VII	of the Company Attributable to Owners 632.45 (Holding Co.) 573.85 21.	attributable to Non 7.64 11.50 Controlling Interest b.	INCOME OTHER COMPREHENSIVE Vlll	be Items that will not reclassified to profit or loss 6.06 -38.74 a. COMPREHENSIVE INCOME TOTAL FOR THE PERIOD 605.21 587.55 IX	Company Attributable to Owners X of the 580.44 594.17 (Holding Co.)	attributable to Non 7.11 11.04 Controlling Interest XI
SALZER : Particulars								Ealzer' 31, Period ended (year to date) 31-12-2019 Un-Audited 44,640.77 110.89 44,751.66 33,375.01 866.41 2,206.22 1,577.90 1,097.17 4,203.71 42,093.60 2,658.06 2,658.06 852.58 1,805.48 1,786.36 19.14 -37.28 1,768.20 1,750.05 18.15
EARNINGS SHARE PER XII - Basic after exceptional items (in Rs.) 11.18 3.59 ' 3.96 3.
3.96 - Diluted after exceptional items (in Rs.) 3.59 11.18 b.
Date : February 06, 2020 For Salzer Electronics Limited Place : Coimbatore A&KN'I

A&KN'I , Ra nga ary

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

J D S ASSOCIATES CHARTERED ACCOUNTANTS

LIMITED REVIEW REPORT

To

The Board of Directors, Salzer Electronics Limited Coimbatore -641 047

Dear Sirs,

• 1. We have reviewed the accompanying Statement Results of Salzer Electronics Limited ("the Parent" subsidiary together referred to as "the Group"), ²⁰¹⁹ and for the period between July 01,2019 to being submitted by the Parent pursuant to the req (Listing Obligations and Disclosure Requirements) of Consolidated Unaudited Financial ) and its subsidiary1the Parent and its for the quarter ended December 31, December 31,2019 ("the Statement") uirement of Regulation ³³ ofthe SEBI Regulations, 2015, as amended;
• 1. Initially the parent acquired 72.32% Kaycee Industries Limited under Sh dated May 24, ²⁰¹⁹ from its erstwhile Promoters and subsequently another 4.60% the Company as ^a fulfilment of (Substantial Acquisition and Takeo as at September 30,2019, the aggregate shareholdin at 76.92%. are Purchase ver) Regulation 2011 equity shares with voting rights on July 11,2019 in and Transfer of Control Agreement - Universal Trustees Private Limited acquired from the Public in the Open offer made by obligations arising under Regulation ^{3 81 4 o} SE81 ("SE81 (SAST) Regulations") and ^g of Parent in the Subsidiary stood
• 1. in order to enable the subsidiary to achieve the Mini 25% as required under Regulation ³⁸ of SEBI ( Requirements) Regulation 2015 ( 19A of the Securities Contracts (Regulation) stake in the open market under permissib Subsidiary to the level of 74.91% mum Public shareholding norm of Listing Obligation and Disclosure "SEBI LODR Regulations")read with Rule 1912) and Rule Rules, 1957, the parent diluted 2.01% equity le mode and reduced its shareholding in the as at December 31,2019

T. SAMINATHAN B.Sc., F.C.A.. 254, Gandhiji Road ERODE - 638 001. Tel : 0424-2269599 Cell : 98427 27344 Email : casaminaihan@yahoo.oo.in

B. JAYARAM B.Com., F.C.A., 0.1.9.4., 191 Floor, Jewel Complex 642 (Old ¹¹ 324) Raja Street COIMBATORE - 641 001. Tel : 0422 - 2304731, 2390882 Cell : 99444 57928 . E-maii : bjayaramca@yahoo.co.in

/

K.P. LATHA M.Com., F.C.A., 0.1.8.4., 8136, LRG Layout, ⁵⁰¹ Street ABT Road. Karuvampalayam TIRUPUR 4541 604 Tel : 0421 4322643 Ceil : 98942 88807 E-mail : kpiaiha1995@gmail.com

J. FRANKLIN DAVID

M.Com., EC.A., 7—A, Sri Nagar, Behind Sungam Ramanalhapuram COIMBATORE - B41 045 Tel ² 0422 - 2312699 Cell : 98430 80753 E-mail : j1rankca@gmail.oom

J D S ASSOCIATES CHARTERED ACCOUNTANTS

• Since the Parent has effectively started exercising control over the affairs of the Subsidiary from July 11, 2019 as stated in Para 2, the year to date consolidated financial results represent nine months financials of parent and financials of the subsidiary company only from the date of acquisition of its Controlling interest i.e July 11, 2019.
• The given figures are not strictly comparable to any of the relevant corresponding period of the last year in view of reasons stated above and accordingly figures for respective period of previous years not furnished.
• This Statement, which is the responsibility of the Parent's Management and approved by the Parent's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in lndian Accounting Standard 34 "Interim Financial Reporting" ("IND AS 34" ), prescribed under Section 133 of the Companies Act, 2013, and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review;
• 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. A review of interim financial information consists of making inquiries,_ primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion;
• We also performed procedures in accordance with the Circular issued by the SEBJ under Regulation 33(8) ofSEBI LODR Regulations as amended to the extent applicable;
• The Statement includes the results of the following entity:
• a) Kaycee Industries Limited

T. SAMINATHAN 9.80., 60.4.

1. Gandhiji Road ERODE - 638 001. Tel : 0424-2269599 E-maii : casamina1han@yahoo.co.in

fl.JAYARAM B.Com.. F.C.A., D.|.S.A.,

191 Floor. Jewel Compiex 642 (010 # 324) Raja Street COIMBATORE - 641 001. Tel : 0422 - 2304731, 2390082 E—mail : bjayaramca@airteimaii.in

K.P. LATHA M.Com., F.C.A.. D.I.S.A., 8136. LRG Layout 51h Street ABT Road, Karuvampalayam TIRUPUR - 641 ¹⁵⁰⁴ Tel : 0421 - 4322843 E-mail : kplaiha1995@siiy.com

J. FRANKLIN DAVID M.Com., F.C.A., 7-A, Sri Nagar, Behind Sungam Ramanalhapuram COIMBATORE - 641 045 Tel : 0422 - 2312899 E-mail :jfranklin@yahoo.oom

J D S ASSOCIATES CHARTERED ACCOUNTANTS

• 1. Based on our review conducted and procedures performed as stated in paragraph 6 above and based on the consideration of the review reports of the other auditors referred to in paragraph 10 below, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India, 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 amended, including the manner in which it is to be disclosed, or that it contains any material misstatement and
• 1. We did not review the interim financial statements/ financial information/ financial results of the subsidiary Kaycee industries Limited included in the consolidated unaudited financial results, whose interim financial statements / financial information/ financial results reflect total revenues of Rs. 1184.42 lakhs, total net profit after tax of Rs. 80.27 Lakhs and total comprehensive income / loss of Rs. 76.17 Lakhs for the period from the date of initial acquisition —July 11,2019 to December 31, 2019, as considered in the consolidated unaudited financial statements. These interim financial statements/ financial information / financial results have been reviewed by other auditors whose reports have been furnished to us by the- Management and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of this subsidiary, is based solely on the reports of the other auditors and the procedures performed by us as stated in paragraph 6 above.

Our conclusion on the Statement is not modified in respect ofthe above matters.

For JDS ASSOCIATES Chartered Accountants FRN :0087355

(BJAYARAM) Partner Memb.No : 028346

Date : February 06, 2020 Place ; Coimbatore -641001

UDJN: 02900275134 61/414 19148136543

E-mail : casaminalhan©yahoo.oo.in E—mail : bjayaramca@airtelmail.in E-mail : kplalha1995@siiy.com E.mail :j1ranklin@yahoo.com

B. JAYARAM K-P- LATHA J. FRANKLIN DAVID T- SAMINATHAN B.Com.. 90.4.. 0.1.9.4.. M.Com.. E04. 01.64. M.Com., 7.0.4.. B.Sc., F'C'A" ¹⁵¹ Fioor, Jewel Complex 3135- LRG LEY'OUL 51" ³¹¹⁹⁶¹ M. ⁸¹¹ Nagar. Behind Sungam 254, Gandhiji Road ⁶⁴² (Old ¹¹¹ 324) Raja ^{511991 451} Road, Karuvampalayam Ramanaihapuram £12005 - ⁶³⁸ 001. COIMBATORE - ⁵⁴¹ 001. TIRUPUR - ^{641 604} COIMBATORE - ^{041 045} Tel : 0424—2259599 Tel : ⁰⁴²² - 2304731, ^2390032 Tel : ⁰⁴²¹ - ^4322843 Tel : ⁰⁴²² .2312099