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Swelect Energy Systems Limited Capital/Financing Update 2021
61255_rns_2021-06-14_ab24ce5e-1712-450e-983a-a37374c56bd4.pdf
Capital/Financing Update
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Stay powerful when sun shines. And thereafter ...
June 14, 2021
BSE Limited Department of Corporate Services Floor 25, P. J. Towers, Dalal Street, Mumbai-400 001.
Scrip Code: 532051
Listing Department Registered Office: "Exchange Plaza", C-1, Block G, Sandra - Kurla Complex, Sandra (E), Mumbai - 400 051.
National Stock Exchange of India Limited
Scrip Code: SWELECTES
Dear Sir / Madam,
Sub: Outcome of the Board Meeting held on June 14, 2021
1. Audited Financial Results for the year ended March 31, 2021
Pursuant to the Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 ("LODR"), the Board of Directors at their meeting held today, approved the standalone and consolidated audited financial results of the Company for the quarter and year ended on 31st March 2021.
The Board of Directors have also approved the Financial Statements (standalone and consolidated), Board's Report, Report on Corporate Governance for the financial year 2020-21 and took on record the Certificate on Corporate Governance, Secretarial Audit report for the financial year ended 31.03.2021.
We also enclose the Audit Reports of M/s. Deloitte Haskins & Sells LLP, Chartered Accountants, Chennai (Firm Registration No.117366W/W - 100018), Statutory Auditors on the Standalone and Consolidated financial results for the year ended March 31, 2021. Mis. Deloitte Haskins & Sells LLP, Chartered Accountants, have given an unmodified opinion on the Standalone and Consolidated Financial Results of the Company for the financial year ended March 31, 2021.
Pursuant to Regulation 47 of the LODR and SEBI Circular, we would be publishing an extract of the standalone and consolidated financial results in the prescribed format in English and Tamil Newspapers within the prescribed time. The details of the standalone and consolidated financial results of the Company would be available on the website of the Company www.swelectes.com as well as on the websites of the stock exchanges.
2. Annual General Meeting and Book Closure Dates
The 26th Annual General Meeting (AGM) of the shareholders of the Company is scheduled to be held on Monday, July 26, 2021 and the Register of members will be closed from Tuesday, July 20, 2021 to Monday, July 26, 2021 (Both days inclusive) and the Board of Directors have approved the Notice of the 26th Annual General Meeting.
Stay powerful when sun shines. And thereafter ...
3. Dividend
The Board of Directors have recommended a Final dividend of Rs.3/- (Rupees Three only) per equity share (Face value of Rs.10/- each) for the year ended March 31, 2021. The dividend, if approved by the shareholders at the ensuing AGM, will be paid / credited to the shareholders on August 4, 2021.
4. Re-appointment of Mr. G.S.Samuel, as an Independent Director of the Company
On the recommendation of Nomination and Remuneration Committee, the Board of Directors have considered the re-appointment of Mr. G.S. Samuel (DIN:05284689), as an Independent Director of the Company for a second term of four consecutive years with effect from 28th July 2021, subject to approval of the shareholders at the ensuing Annual General Meeting
Brief details of the above re-appointment is being furnished in Annexure- A
5. Re-appointment of Mr. S. Annadurai, as an Independent Director of the Company
On the recommendation of Nomination and Remuneration Committee, the Board of Directors have considered the re-appointment of Mr. S. Annadurai (DIN:00137561 ), as an Independent Director of the Company for a second term of five consecutive years with effect from 28th June 2022, subject to approval of the shareholders at the ensuing Annual General Meeting.
Brief details of the above re-appointment is being furnished in Annexure- A
6. Authorization to set up a Wholly Owned Subsidiary
The Board approved the setting up of the Wholly Owned Subsidiary (WOS) in the name and style 'SWELECT Renewable Energy Private Limited' (the name availability of which has been confirmed by the Ministry of Corporate Affairs, Office of the Registrar of Companies, Central Registration Centre vide letter dated 08.06.2021) for setting up of Solar Power Plant. The Board also approved the investment of Rs.10.00 Lakhs in the Equity Capital of the said WOS.
7. Nomination of Directors on the Board of SWELECT Renewable Energy Private Limited
The Board nominated Mr. R. Chellappan, Managing Director, Mr. K.V. Nachiappan and Mr. V.C. Raghunath, Whole time Directors of the Company to be the Directors on the Board of SWELECT Renewable Energy Private Limited.
Stay powerful when sun shines. And thereafter ...
8. Conversion of Loan into Equity
Based on the valuation report of the registered valuer, the Board of Directors have approved the offer for conversion of Loan into 9,20,000 equity shares of Rs.100/-each with premium of Rs.229/-per equity share made by SWELECT Power Systems Private Limited, Wholly Owned Subsidiary (WOS) of the Company for a total consideration value of Rs.30.27 Crores in respect of the outstanding Loan amount due from the WOS.
The meeting commenced at 2.30 p.m. and ended at 6.45 p.m.
We request you to kindly take on record the above intimation.
Thanking you, Yt�!�t t fully, ECT Ene,gy Systems um;ted
F V
R. Chellappan Managing Director
Enc.: as above
ANNEXURE A
Details under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read along with SEBI Circular CIR/CFD/CMD/4/2015 dated September 9, 2015
1. Brief details of Mr. G.S. Samuel
| S.No | Particulars | Details | |
|---|---|---|---|
| 1. | Reason for change viz. Appointmentresignation, removal, death orotherwise; | Re-appointment | |
| 2. | Date of appointment / cessation (asapplicable) & term of appointment; | Re-appointed as an Independent Directorfor a period of 4 years with effect from July28, 2021. | |
| 3. | Disclosure of relationships betweendirectors (in case of appointment of aDirector | NIL | |
| 4. | Brief profile of Mr. G.S. Samuel | ||
| Age & Date of Birth | 70 years & 31.5.1951 | ||
| Educational Qualification | PG RESEARCH IN ECONOMICSMaster of Business Administration (Finance) | ||
| N.A | |||
| Professional MembershipsProfessional Experience | 18 years, he worked in the State$\bullet$Bank of India Group in seniorpositions at their Regional Office,Head Office and Central Office.1993-1999, he held the position of$\bullet$Chief Executive Officer/ManagingDirector in Apple Credit CorporationLimited, a Non-Banking FinanceCompany, specializing in areas ofdeposits, retail lending, hire purchasefinance,MerchantleasingandBanking,CorporateFinance,Financial services etc.2000-2007, he was an Executive٠Director of a London based PrivateBanking Group Meghraj FinanceServices (P) Ltd specializing inFinancial Advisory Services, PrivateEquity Placement, Capital MarketServices, Mergers and Acquisitions,Debts restructuring, etc. and laterwithIndiaFinancialanbased |
| Advisory Outfit having varied clientsfrom MNCs and Blue Chip IndianCorporates to large infrastructureprojects, resources raisingloanventure capital funds to MicroFinance Organizations and NGOs.• He was a member of the Taxationand Economic Affairs Committee ofConfederation of Indian Industry (CII)and Convener of the Committee forthe Southern Chapter of CII. He wasalso a Member of the ManagementCommittee of Equipment Leasing |
|---|
| Association of India (ELAI). |
2. Brief details of Mr.S.Annadurai
| S. | Particulars | Details | |||
|---|---|---|---|---|---|
| No | |||||
| 1. | Reason for change viz. Appointmentresignation, removal, death orotherwise; | Re-appointment | |||
| 2. | Date of appointment / cessation (asapplicable) & term of appointment; | Re-appointed as an Independent Directorfor a period of 5 years with effect from June28, 2022. | |||
| 3. | Disclosure of relationships betweendirectors (in case of appointment of aDirector | NIL | |||
| 4. | Brief profile of Mr. S.Annadurai | ||||
| Age & Date of Birth | 71 years & 31.7.1949 | ||||
| Educational Qualification | B.Sc (Agri), B.GL, C.A.I.I.B, D.B.M | ||||
| Professional Memberships | N.A | ||||
| Professional Experience | After a small stint in Agriculture$\bullet$Department of the Government ofTamil Nadu, joined as a ProbationaryOfficer of Indian Bank in the year1970. Since then, held variouspositions in the Bank in differentcentres / offices.Post Nationalization,hadbeen٠fewinstrumentalalong withasettingcolleagues,inofupAgriculture Finance Dept in the HeadOffice of the Bank- by formulatingguidelines on priority sector lending, |
identifying centres for rural lending, identifying officers for being posted as rural branch managers, imparting training for them in priority sector lending, monitoring their performance in rural lending and recovery thereof.
- Had been the Head of Credit Dept in Zonal Office, Bombay and as Regional Head of Pune Region of the Bank. During the tenure in Bombay, held additional charge as the Head of Merchant Banking Division, and handled a large number of Public / Rights Issues under the regime of Controller of Capital Issues.
- As Head of Credit Dept in Bombay, dealt with a large number of high profile Corporate Accounts and a large number of Consortium accounts including many such accounts as the Leader of the Consortium. As head of a corporate branch in Chennai, dedicated contribution was one of the factors for the bank's turn-around
- As the President and Whole-Time Director of Indbank Merchant Banking Services Ltd, turned around the Company and declared dividend after a gap of more than a decade. As Managing Director of Indbank Housing Ltd, recovered huge amounts of NPAs.
| Corporate Identity Number: L93090TN1994PLC028578 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Registered & Corporate Office: 'SWELECT HOUSE' 5, Sir P.S. Sivasamy Salal, Mylapore, Chennal - 600 004. | |||||||||
| Email: [email protected], Website: www.swelectes.com, Tel: +91 44 2499 3266, Fax: +91 44 2499 5179 | |||||||||
| STATEMENT OF AUDITED STANDALONE FINANCIAL RESULTS FOR THE YEAR ENDED 31 MARCH 2021 | |||||||||
| (Rs. In Lakhs except EPS) | |||||||||
| ouarter ended | Year ended | ||||||||
| S.No | PARTICULARS | ||||||||
| 31 March 2021 31 December 2020 | 31 March 2020 | 31 March 2021 | 31 March 2020 | ||||||
| Refer Note 2 | Unaudited | Refer Note 2 | Audited | Audited | |||||
| Income | |||||||||
| Revenue from operations | 8,670.27 | 3,034.29 | ?,371.53 | 18,453.22 | 14,204.04 | ||||
| Other income | 531.14 | 891.40 | 766.76 | 3,279.04 | 3,170.98 | ||||
| 1 | Total Income | 9,201.41 | 3,925.69 | 4,138.29 | 21,732.26 | 17,375.02 | |||
| Expenses | |||||||||
| a. Cost of Materials Consumed | 2,748.40 | 1,830.14 | 1,712.71 | 6,397.44 | 9,839.85 | ||||
| b. Purchase of Stock-In· Trade | 3,460.44 | 384.78 | 15.32 | 3,882.10 | 111.66 | ||||
| c. Changes In Inventories of Finished goods, Work-in-progress | 341.70 | (646.01) | (181.45) | 1,200.48 | (1,948.73) | ||||
| and Stock-In •Trade | |||||||||
| d. Employee Benefits Expense | 451.39 | 290.70 | 297.54 | 1,217.53 | 1,194.66 | ||||
| e. Depredation and Amortisation Expense | 407.56 | 396.42 | 381.20 | 1,547.79 | 1,659.43 | ||||
| f. Finance Costsg. Other Expenses | 363.06 | 324.49 | 228.67 | 1,249.12 | 981.154 481.64 | ||||
| 2 | Total Expenses | 819.81 | 795.62 | 1 355.88 | 3 115.65 | ||||
| 8,592,36 | 3,376.14 | 3,809.87 | 18,610.11 | 16,319.66 | |||||
| Profit / (Loss) before Exceptional Item and Tax | 609.05 | 549.55 | 328.42 | 3,122.15 | 1,055.36 | ||||
| 3 | (1- 2) | ||||||||
| 4 | Exceptional Item (Refer Note 3) | (691.00) | - | (2,471.99) | (691.00) | (2,471.99) | |||
| 5 | Proflt/(Loss) before Tax Expense (3+4) | (81.95) | 549.55 | (2,143.57) | 2,431,15 | (1,416.63) | |||
| 6 | Tax expense: | ||||||||
| (I) Current Tax | 71.73 | 256.53 | |||||||
| (Ii) Deferred Tax | |||||||||
| Total Tax Expense | - | - | 71.73 | - | 256.53 | ||||
| 78 | Net Proflt/(Loss) after Tax Expense (5-6) | (81,95) | 549.55 | (2,215.30) | 2,431.15 | (1,673.16) | |||
| Other Comprehensive IncomeA I) Items that will not be reclassified to profit or loss | 54.88 | 54.88 | |||||||
| II) Income tax relating to items that will not be reclassified | (0.40) | (0.40) | |||||||
| to profit or loss | (9.59) | (9.59) | |||||||
| B I) Items that will be reclassified to profit or loss | |||||||||
| ii) Income tax relating to items that will be | |||||||||
| reclassified to profit or loss | |||||||||
| Total Other Comprehensive Income/(Loss) for the | (0.40) | - | 45.29 | (0.40) | 45.29 | ||||
| period | |||||||||
| Total Comprehensive Income/(Loss) for the period | (82.35) | 549.55 | (2,170.01) | 2,430.75 | (1,627.87) | ||||
| 9 | (7+8) | ||||||||
| 10 Paid up Equity share Capital (Face value of Rs.10/· each) | 1,515.88 | 1,515.88 | 1,515.88 | 1,515.88 | 1,515.88 | ||||
| 11 | Reserves (Other Equity) | 66,580.11 | 64,263.04 | ||||||
| 12 Earnings/(Loss) Per Share (EPS) of Rs.10/- each | |||||||||
| (a) Basic | (0.54) | 3.63 | (14.61) | 16.04 | (11.04) | ||||
| (bl Diluted | (0.541 | 3.63 | 114.611 | 16.04 | 111.04 \ |
SWELECT ENERGY SYSTEMS LIMITED
1. The above Standalone Financial Results of the Company for the quarter and year ended 31 March 2021 are prepared In accordance with the Indian Accounting Standards ("Ind AS") as prescribed under Section 133 of the Companies Act, 2013 ("the Act") read with relevant rules Issued thereunder and In terms of Regulation 33 of the SEB! (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The above results have been audited and recommended by the Audit Committee and approved by the Board of Directors in their respective meetings held on June 14, 2021. The results for the year ended March 31, 2021 has been audited and the results for the quarter ended March 31, 2021 has been reviewed.
2. The figures for the quarter ended 31 March 2021 and 31 March 2020 are balancing figures between audited figures In respect of the full financial years and the unaudited published year-to-date figures up to the third quarter for respective years which were subject to limited review and there are no material adjustments made in the results for the quarter ended 31st March 2021 which pertains to earlier periods.
3 The Company has Investments (net) aggregating Rs. 7,186.18lakhs(As at 31 March 2020 Rs.7,877.18 lakhs) and loans aggregating Rs.4,523.97lakhs (As at 31 March 2020 Rs. 4,486.20 lakhs) relating to two operating subsidiaries of the Company which has either accumulated losses or significant reduction In revenue, as per the audited financial statements as at 31 March 2021. During the year ended 31 March 2021, the Company had carried out a detailed assessment of the recoverability of its Investments and loans duly considering revenue projections of the subsidiaries based on the most recent long-term forecasts, resultant cash flows which Includes likely Impact or1 account of lockdowns due to spread of COV!D-19 pandemic such as discount rate, growth rate used In projection period as well as significant estimates and Judgements involving certain new projects and expected clearances and approvals from relevant authorities. All of these estimates and Judgements have Inherent uncertainties and the actual results may differ from that estimated as at the date of the Balance sheet. The estimation of revenue projections Is based on the Management's assessment of probability of securing new businesses In the future, duly considering uncertainties arising on account of the COV!D-19 pandemic to the extent known. The Impact of COV!D-19 on the Company's financial results may differ from that estimated as at the date of approval of these financial results dependent on circumstances that evolve In the future.
During the current year, the Company based on the assessment, made a provision for diminution In the value of Investment relating to one of the subsidiaries for Rs.691 lakhs (previous year ended 31 March 2020 Rs 2,471.99 lakhs) and disclosed the same as an exceptional Item In the standalone financial statements/results of the Company for the quarter and year ended 31 March 2021. The Management has concluded that the carrying value of the investments, net of the above provision, and Loans are recoverable duly considering the expected future business projections as at 31 March 2021.
4 Segment information has been presented In the Consolidated Financial Statements / results as permitted by Ind AS 108 - Operating Segments.
SWELECT ENERGY SYSTEMS LIMITED
Corporate Identity Number: L93090TN1994PLC028578 Registered & Corporate Office: 'SWELECT HOUSE' 5, Sir P.S. Slvasamy Salal, Mylapore, Chennal - 600 004. Email: [email protected], Website: www.swelectes.com, Tel: +91 44 2499 3266, Fax: +91 44 2499 5179 STATEMENT OF STANDALONE AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31 MARCH 2021
(Rs. In Lakhs except EPS)
Notes:
| As at | As at | |
|---|---|---|
| Particulars | 31 March 2021 | 31 March 2020 |
| Audited | Audited | |
| A) ASSETS | ||
| Non-current assets | ||
| (a) Property, Plant and Equipment | 18,998.71 | 15,337.45 |
| (b) Capital Work•ln•Progress | 285.14 | |
| (c) Right of Use Assets | 178.48 | 6.67 |
| (d) Investment Property | 1,902.56 | 1,652.59 |
| (e) Intangible Assets | 6,186.19 | 6,568.95 |
| (f) Financial Assets | ||
| (i) Investment In Subsidiaries (Refer Note 3) | 13,933.94 | 12,772.93 |
| (II) Other Non-current Investments | 530.35 | 530.35 |
| (iii) loans | 521.56 | 218.49 |
| (iv) Trade Receivables | 930.51 | 1,419.36 |
| (v) Other Financial Assets | 134.87 | 134.87 |
| (vi) Bank Balances | 4,023.00 | 4,584.00 |
| (g) Income Tax Asset (Net) | 314.87 | 154.23 |
| (h) Other Non-Current Assets | 103.90 | 136.72 |
| Total Non-Current Assets | 48 044.08 | 43 516.61 |
| Current assets | ||
| (a) Inventories | 4,860.67 | 5,448.94 |
| (b) Financial Assets | ||
| (I) Investments | 27,171.76 | 23,703.25 |
| (II) Loans | 10,823.65 | 9,361.48 |
| ( Iii) Trade Receivables | 7,509.78 | 3,122.11 |
| (Iv) Cash and Cash Equivalents | 314.25 | 238.77 |
| (v) Other Bank Balances | 5,774.89 | 3,642.05 |
| (vi) Other Financial Assets | 788.98 | 780.75 |
| (c) Other Current Assets | 342.86 | 627.00 |
| Total Current Assets | 57 586.84 | 46 924.35 |
| Total Assets | 1 05 630.92 | 90 440.96 |
| (B) EQUITY AND LIABILITIES | ||
| Equity | ||
| (a) Equity Share Capital | 1,515.88 | 1,515.88 |
| (b) Other Equity | 66 580.11 | 64 263.04 |
| Total Equity | 68 095.99 | 65,778.92 |
| LI abilities | ||
| Non-current liabilities | ||
| (a) Financial liabilities | ||
| (I) Borrowings | 13,199.81 | 2,943.08 |
| (II) Other Financial Liabilities | 177.48 | 138.71 |
| (b) Provisions | 490.64 | 452.11 |
| (c) Other Non-Current Liabilities | 233.76 | 387.07 |
| Total Non-Current Liabilities | 14 101.69 | 3,920.97 |
| Current liabilities | ||
| (a) Financial Liabilities | ||
| (I) Borrowings | 12,928.27 | 8,908.80 |
| (II) Trade Payables | ||
| (A) Total outstanding dues of Micro | ||
| Enterprises and Small Enterprises | 4.46 | |
| (B) Total outstanding dues of creditors | ||
| other than micro Enterprises and Small | ||
| Enterprises | 8,145.55 | 7,765.11 |
| (ill) Lease liabilities | 185.67 | 7.87 |
| (Iv) Other Financial Liabilities | 1,324.02 | 1,219.45 |
| (b) Other Current Liabilities | 727.01 | 2,726.43 |
| 118.26 | 113.41 | |
| ( c) ProvisionsTotal Current Liabilities | 20 741.07 | |
| 23 433.24 | ||
| Total Liabilities | 37 S34.93 | 24 662.04 |
SWELECT ENERGY SYSTEMS LIMITED Corporate Identity Number: L93090TN1994PLC028578
Registered & Corporate Office: SWELECT HOUSE' 5, Sir P.S. Sivasamy Salai, Mylapore, Chennai - 600 004.Email: [email protected], Website: www.swelectes.com, Tel: +91 44 2499 3266, Fax: +91 44 2499 5179 STATEMENT OF STANDALONE AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31 MARCH 2021
(Rs. in Lakhs except EPS)
$\boldsymbol{6}$
Pursuant to Regulation 33, sub-regulation (3), the Company has prepared the following Statement of Standalone Condensed Cash Flows for the year ended 31 March 2021 and 31 March 2020. $(De in Iakhe)$
| $1133.111$ LUNISI | |||
|---|---|---|---|
| Particulars | For Year ended31 March 2021 | For Year ended31 March 2020 | |
| A. Cash flow from operating activities:i) Profit/(Loss) after taxes | 2,431.15 | (1,673.16) | |
| ii) Operating Profit before working capital changes | 3,060.29 | 2,041.26 | |
| iii) Net cash generated from / (used in)operating activities | (2,084.52) | 748.78 | |
| B. Cash flow used in Investing activities | (10, 732.32) | (2, 101.27) | |
| C. Cash flow generated from financing activities | 11,223.15 | 432.65 |
$\overline{z}$ A nation-wide lockdown was announced by the Government of India as a result of the outbreak of COVID 19 pandemic. Due to the lockdown announced by the Government of India, the operations of the Company came to a temporary-halt. As per MNRE quidelines, Solar Power Generating plants continued in operation with the plant staff after obtaining permission from the local authorities. In assessing the recoverability of receivables, other intangible assets and certain investments, the Company has considered internal and external information up to the date of approval of these audited financials including credit reports and economic forecasts. The Company has performed sensitivity analysis on the assumptions used and based on current indicators of future economic conditions, the Company expects to recover the carrying amount of these assets, The impact of the global health pandemic may be different from that estimated as at the date of approval of these audited financials and the Company will continue to closely monitor any material charges to future economic conditions.
The Board of Directors have recommended a year-end dividend of Rs.3 per equity share of Rs. 10/- each. $\mathbf{R}$
The previous period's figures have been regrouped / reclassified wherever necessary to correspond with the current period's $\overline{9}$ classification / disclosure.
The Standalone Financial Results are also available on the website of the Company www.swelectes.com and on the Stock 10 Exchange websites www.bseindia.com and www.nseindia.com.
Place: Coimbatore Date: 14th June 2021
$\mathfrak{u}$
nd on behalf of the Board For
R. Chellappan Managing DirectorDIN:00016958
SWELECT ENERGY SYSTEMS LIMITED SWELLET INTERFERIEV NUMBER 1930/971111934PLC028578Registered & Corporate Office: 'SWELECT HOUSE' 5, Sir P.S. Sivasamy Salai, Mylapore, Chennai - 600 004.[email protected], Website: www.swelectes.com, Tel: +91 44 2499 517 ail: co.ird@sy (Rs. in Lakhs except EPS) Quarter ended Year ended PARTICULARS S.No 31 March 2021 31 December 2020 31 March 2020 31 March 2021 31 March 2020 Audited Audited Refer Note 2 Unaudited Refer Note 2 ncome:evenue from operations $6,306.00$ $612.06$ 6.918.0 25, 221.82 7.855.20 5.860.58 25.253.6 $369.22$ 8.224.4 $\frac{921.28}{6.781.86}$ Other IncomeTotal Income $\frac{2,985.18}{28.238.79}$ 2,759.3027,981.12 $\mathbf{1}$ ExpensesCost of materials consumedPurchase of Stock-in-TradeChanges in Inventories of Finished goodWork-in-progress and Stock-in -TradeEmployee benefits expensePepreciation and amortisation expenseFinance costsChan 2,789.37853.14 2,740.00 2,781.24 9.078.99 13,212.88 1,430.15 1,382.47 411.59 $(661.78)$ $(180.52)$ 1.028.41 $(2.250.28)$ 880.51724.74456.89 608.23707.05477.47 540.91774.83461.55 2,526.20 $2.415, 12$ 2,985.25 Other $6,143.62$ 24.796.81 $7,689.39$ 27.160.73 1,759.517.875.75 1,629.965.882.71 $2,359.35$ 6.856.82 $\overline{2}$ Total Expenses $61.24$ (1,522.61) Profit before Exceptional Item and Tax (1-2) 348.67 899.15 3,441.98 820.39522.61 $\overline{1}$ Exceptional Item (Refer Note 4)Profit/(Loss) for the year (3+4) $(691.00)$ 2.750.98 899.15 $\frac{1}{6}$ $(1,461,37)$ $(702.22)$ $(342.33)$ (i) Current Tax(ii) MAT credit en(iii) Deferred TaxTotal Tax experies 108.88 $18.06$ 122.53 198.96 410.81 $(8.87)$ $(69.59)$ 26.38 $\frac{14.97}{147.39}$ $(69.59)$ 314.66 $\frac{44.71}{104.61}$ Profit/(Loss) for the year (5-6)Other Comprehensive Income $\frac{7}{8}$ $(446.94)$ 890.70 $(1.487.75)$ 2.603.59 $(1.016.88)$ Prontr/Clossy Tort her year (30-9) A there comprehensive fincome A 1) Items that will not be reclassified to profit or loss A 1) Items that will not be reclassified to profit or loss B 1) Items that will be reclassifie $\begin{array}{c} 12.35 \ (2.36) \ (210.27) \end{array}$ 54.88 12.35 54.88 $(9.77)$ 866.52 $(9.77)$ 684.18 $(2.36)$ (185.36) $(128.41)$ $(200.28)$ $(128.41)$ 729.29 $(175.37)$ 911.63 $\overline{9}$ Total Comprehensive Income/(Loss) for the period (7+8) 762.29 $(758, 46)$ 2,428.22 $(105, 24)$ $(647, 22)$ Profit /(Loss) attributable to:Owners of the ParentNon-Controlling interests 10 $(442.44)$ 890.70 $(1.487, 75)$ 2.608.09 $(1.016.88)$ Total Comprehensive Income/(Loss) attributable to:Owners of the ParentNon-Controlling interests $11$ 762.29 $(758.46)$ $(105, 24)$ $(642.72)$ $2.432.72$ Paid up Equity share Capital (Face value of Rs.10/- each) 1.515.88 1,515.88 1,515.88 1.515.88 1.515.88 $12$ Paid up Equity share Capital (race value or Ks.10/- eachReserves (Other Equity) (excluding revaluation reserve)Earning Per Share (EPS) of Rs.10/- each(a) Basic(b) Diluted 72,372.42 70,053,40 $\frac{13}{14}$ $(2.95)$ $(2.95)$ $(9.81)$ $(9.81)$ 17.18 $(6.71)$ $(6.71)$ 5.885.88 NOTES: NOTES:The above consolidated financial results of Swelect Energy Systems Limited ("the Group") for the quarter and year ended 31 March 2021 are prepared in accordance with the IndianAccounting Standards ("Ind AS") as pre $\mathbf{1}$ .The above results have been reviewed and recommended by the Audit Committee and approved by the Board of Directors in their respective meetings held on 14th June 2021. The resultor the year ended March 31, 2021 has been The figures for the quarter ended 31 March 2021 and 31 March 2020 are balancing figures between audited figures in respect of the full financial years and the unaudited published year-date figures up to the third quarter $\overline{2}$
The consolidated results for the quarter and year ended March 31, 2021 and for the quarter and year ended March 31, 2020 include the results of the Group's wholly owned subsidiaries/ step $\overline{a}$ down subsidiaries :1.Amex Alloys Private Limited
1.Amex.Alloys Private Limited2.Swelect Green Energy Solutions Private Limited3.Swelect Energy Systems Pte. Limited4.Swelect Power Systems Private Limited5.Swelect Solar Energy Private Limited5.No Solar Systems Private
$\overline{a}$
$\mathcal{R}$
-
Swelect Inc. o.sweiect Inc.9.SWEES Emplovees Welfare Trust
-
Swelect Sun Energy Private Limited (incorporated as on 29th December 2020)
10.Sweiect Sun Energy Private Limited (incorporated as on 29th December 2020) 10.Sweiect Sun Energy Private Limited (incorporated as on 29th December 2020) In the case of two subsidiaries which have either accumulated lo
.During the current year, based on the assessment, the Group had made a provision for impairment of property plant and equipment in its consolidated financial statements/results for thequarter and year ended 31 March 202 exceptional iten31 March 2021.
| (Rs. in Lakhs except EPS) | ||||
|---|---|---|---|---|
| 5 | AUDITED CONSOLIDATED BALANCE SHEETParticulars | As at | ||
| A | ASSETS | 31 March 2021 31 March 2020 | ||
| 1. | Non-current assets | |||
| (a) Property, Plant and Equipment(b) Capital work-in-progress | 29.534.157.158.13 | 26,763.671,085.79 | ||
| (c) Right of use Assets | 483.26 | 474.73 | ||
| (d) | Investment Property(e) Goodwill on consolidation | 2,340.33789.74 | 2,084.32789.74 | |
| (f) Other Intangible assets | 13,169.00 | 13,992.89 | ||
| (g) Financial Assets | 530.35 | |||
| (i) Investments(ii) Loans | 530.35668.57 | 348.34 | ||
| (iii) Trade receivables | 930.51600.86 | 1,419.36620.79 | ||
| (iv) Other Financial Assets(h) Bank balances | 4,023.00 | 4,584.00 | ||
| (i) Income Tax Asset (Net) | 434.77 | 234.52 | ||
| (j) Deferred tax assets (net)(k) Other Non-current Assets | 295.47825.20 | 273.51734.38 | ||
| Total Non-Current Assets | 61,783.34 | 53,936.39 | ||
| 2. | Current assets(a) Inventories | 6,653.44 | 7,082.04 | |
| (b) Financial Assets | ||||
| (i) Investments(ii) Loans | 27,171.74356.83 | 23,703.25447.41 | ||
| (iii) Trade receivables | 6.676.96 | 5,400.72 | ||
| (iv) Cash and cash equivalents(v) Bank balances other than (iv) above | 1.214.6613,928.75 | 1,194.5210,942.42 | ||
| (vi) Others | 1,157.28 | 1,212.46 | ||
| (c) Other current assetsTotal Current Assets | 504.3157,663.97 | 777.5950,760.41 | ||
| Total Assets | 1,19,447.31 | 1,04,696.80 | ||
| B | Equity and Liabilities | |||
| 1. | Equity | |||
| (a) Equity Share capital(b) Other Equity | 1,515.8872,745.73 | 1,515.8870,432.74 | ||
| Total equity attributable to the equity holders of the Company | 74,261.61 | 71,948.62 | ||
| (c) | Non-Controlling InterestsTotal Equity | 646.4974,908.10 | 71,948.62 | |
| 2. | Non-current liabilities | |||
| (a) Financial Liabilities(i) Borrowings | 14,898.13 | 3,949.33 | ||
| (ii) Other financial liabilities | 177.48 | 138.71 | ||
| (iii) Lease liabilities(b) Deferred Tax Liabilities (Net) | 143.12338.47 | 306.51326.73 | ||
| (c) | Provisions(d) Other non-current liabilities | 511.80233.76 | 452.11387.07 | |
| Total Non-Current Liabilities | 16,302.76 | 5,560.46 | ||
| 3. | Current liabilities | |||
| (a) Financial Liabilities(i) Borrowings | 18,679.96 | 17,405.11 | ||
| (ii) Trade payables | ||||
| (A) Total outstanding dues of micro enterprises and smallenterprises | 351.64 | 259.35 | ||
| (B) Total outstanding dues of creditors other than micro | 5,278.15 | 5,140.21 | ||
| enterprises and small enterprises(iii) Lease liabilities | 349.04 | 157.22 | ||
| (b) | (iv) OthersOther current liabilities | 2.442.40921.93 | 1,188.652,846.72 | |
| (c) | Provisions | 213.33 | 190.46 | |
| Total Current Liabilities | 28,236.45 | 27,187.72 | ||
| Total Equity and Liabilities | 1, 19, 447.31 | 1,04,696.80 | ||
| 6 | Pursuant to Regulation 33, sub-regulation (3), the Group has prepared the following Statement of Condensed Cash Flows for the year ended 31 March 2021and 31 March 2020. | |||
| Particulars | For Year ended31 March 2021 | For Year ended31 March 2020 | ||
| A. Cash flow from operating activities: | ||||
| i) Profit/(Loss) after taxes | 2,603.59 | (1,016.88) | ||
| ii) Operating Profit before working capital changes | 5,275.19 | 4,645.15 | ||
| iii) Net cash generated from operating activities | 3,323.89 | 2,841.03 | ||
| B. Cash flow used in Investing activities | (14, 235.57) | (2,995.54) | ||
| C. Cash flow from/ (used in) financial activities | ||||
| 9,430.01 | (420.03) |
mm
| Email: [email protected], Website: www.swelectes.com, Tel: +91 44 2499 3266, Fax: +91 44 2499 5179 | SWELECT ENERGY SYSTEMS LIMITEDCorporate Identity Number: L93090TN1994PLC028578Registered & Corporate Office: 'SWELECT HOUSE' 5, Sir P.S. Sivasamy Salai, Mylapore, Chennai - 600 004.STATEMENT OF AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE YEAR ENDED 31 MARCH 2021 | ||
|---|---|---|---|
| The business of the group has been segregated into segments for the purpose of Ind AS 108 is as stated below:Audited Consolidated Segment wise Revenue, Results and Capital Employed for the year ended 31 March 2021 | |||
| PARTICULARS | 2020-21 | 2019-20 | |
| SEGMENT REVENUE:Solar Energy Systems / ServicesFoundryLess: Inter seament Revenue | 15,871.179,750.63(368, 19) | 17,053.909,010.99(843.07) | |
| Total Revenue from Operations | 25,253.61 | 25,221.82 | |
| SEGMENT RESULTS:Solar Energy Systems / ServicesFoundryTotal Segment Results | 1,738,37494.302,232.67 | (175, 77)(37.24)(213.01) | |
| Add/(Less):Other IncomeInterest and other financial chargesProfit before taxExceptional item (Refer Note 4) | 2,985.18(1,775.87)3,441.98(691.00) | 2,759.30(1,725,90)820.38(1, 522, 61) | |
| Income TaxesProfit /(Loss) After Tax | (147.39)2.603.59 | (314.66)(1.016.88) | |
| SEGMENT ASSETS:Solar Energy Systems / ServicesFoundryUnallocable # | 59,468.1910,570.4049,408.72 | 52,097.299.582.9743,016.54 | |
| Total | 1.19.447.31 | 1.04.696.80 | |
| SEGMENT LIABILITIES:Solar Energy Systems / ServicesFoundryUnallocable # | 4,845,254,004.6035,689,36 | 6,003.954,051.1722,693.06 | |
| Total | 44.539.21 | 32.748.18 | |
| SEGMENT CAPITAL EMPLOYED:(SEGMENT ASSETS-SEGMENT LIABILITIES)Solar Energy Systems / ServicesFoundryUnallocable # | 54,622.946,565.8013,719.36 | 46,093.355.531.8020,323.47 | |
| Total | 74,908,10 | 71,948.62 |
atal (in 1995) and liabilities include all tax assets and liabilities (including deferred tax) and such balances, being investments, investment property, cash and bank balances and there are experiments (in 1990) and such
(Rs. in Lakhs except EPS)
A nation-wide lockdown was announced by the Government of India as a result of the outbreak of COVID 19 pandemic. Due to the lockdown announced by the Government of India, the operations of the Group came to a temporary-ha
The Board of Directors have recommended a year-end dividend of Rs.3 per equity share of Rs. 10/- each. $\overline{9}$
The previous period's figures have been regrouped / reclassified wherever necessary to correspond with the current period's classification / disclosure. $10$ $11,$
om and www.nseindia.comBy order of the boardR. ChellappanManaging DirectorDIN:00016958 The consolidated financial results are also available on the website of the Group www.swelectes.com and on the Stock Exchange websites www.bseindia.com and w
Place : CoimbatoreDate : 14th June 2021
$_{\rm 8}$
Il
Chartered Accountants ASV N Ramana Tower, 52, Venkatnarayana Road, T. Nagar, Chennai - 600 017, Tamil Nadu, India
Phone: +91 44 6688 5000 Fax: +91 44 6688 5400
INDEPENDENT AUDITOR'S REPORT ON AUDIT OF ANNUAL STANDALONE FINANCIAL RESULTS AND REVIEW OF QUARTERLY FINANCIAL RESULTS
TO THE BOARD OF DIRECTORS OF
SWELECT ENERGY SYSTEMS LIMITED
Opinion and Conclusion
We have (a) audited the Standalone Financial Results for the year ended March 31, 2021 and (b) reviewed the Standalone Financial Results for the quarter ended March 31, 2021 (refer 'Other Matters' section below), which were subject to limited review by us, both included in the accompanying "Statement of Standalone Financial Results for the Quarter and Year Ended March 31, 2021" of SWELECT ENERGY SYSTEMS LIMITED ("the Company"), ("the Statement"), being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("the Listing Regulations").
(a) Opinion on Annual Standalone Financial Results
In our opinion and to the best of our information and according to the explanations given to us, the Standalone Financial Results for the year ended March 31, 2021:
- i. is presented in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended; and
- ii. gives a true and fair view in conformity with the recognition and measurement principles laid down in the Indian Accounting Standards and other accounting principles generally accepted in India of the net profit and total comprehensive income and other financial information of the Company for the year then ended.
(b) Conclusion on Unaudited Standalone Financial Results for the quarter ended March 31, 2021
With respect to the Standalone Financial Results for the quarter ended March 31, 2021, based on our review conducted as stated in paragraph (b) of Auditor's Responsibilities section below, nothing has come to our attention that causes us to believe that the Standalone Financial Results for the quarter ended March 31, 2021, prepared in accordance with the recognition and measurement principles laid down in the 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 amended, including the manner in which it is to be disclosed, or that it contains any material misstatement.
Basis for Opinion on the Audited Standalone Financial Results for the year ended March 31, 2021
We conducted our audit in accordance with the Standards on Auditing ("SAs") specified under Section 143(10) of the Companies Act, 2013 ("the Act"). Our responsibilities under those Standards are further described in paragraph (a) of Auditor's Responsibilities section below. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India ("the ICAI") together with the ethical requirements that are relevant to our audit of the Standalone Financial Results for the year ended March 31, 2021 under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI's Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion.
Emphasis of Matter
We draw attention to Note 3 of the standalone financial results, which describes the management's assessment of impairment of investment in two operating subsidiaries and its assessment of the carrying value of investment and loans given to two subsidiaries, either on account of accumulated losses or significant reduction in revenues in those subsidiaries.
This assessment also includes consideration of the uncertainties arising from COVID 19 pandemic. Such estimates are based on current facts and circumstances and may not necessarily reflect the future uncertainties and events arising from the full impact of the COVID 19 pandemic.
Our report is not modified in respect of this matter.
Management's Responsibilities for the Statement
This Statement which includes the Standalone Financial Results is the responsibility of the Company's Board of Directors and has been approved by them for the issuance. The Standalone Financial Results for the year ended March 31, 2021 has been compiled from the related audited standalone financial statements .This responsibility includes the preparation and presentation of the Standalone Financial Results for the quarter and year ended March 31, 2021 that give a true and fair view of the net profit and other comprehensive income and other financial information in accordance with the recognition and measurement principles laid down in the Indian Accounting Standards prescribed under Section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Financial Results that give a true and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the Standalone Financial Results, the Board of Directors are 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 the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the financial reporting process of the Company.
Auditor's Responsibilities
(a) Audit of the Standalone Financial Results for the year ended March 31, 2021
Our objectives are to obtain reasonable assurance about whether the Standalone Financial Results for the year ended March 31, 2021 as a whole is 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 this Standalone Financial Results.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the Annual Standalone Financial Results, 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 override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors.
- Evaluate the appropriateness and reasonableness of disclosures made by the Board of Directors in terms of the requirements specified under Regulation 33 of the Listing Regulations.
- Conclude on the appropriateness of the Board of Directors' 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 ability of the Company 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 Statement 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 cause the Company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the Annual Standalone Financial Results, including the disclosures, and whether the Annual Standalone Financial Results represent the underlying transactions and events in a manner that achieves fair presentation.
- Obtain sufficient appropriate audit evidence regarding the Annual Standalone Financial Results of the Company to express an opinion on the Annual Standalone Financial Results.
Materiality is the magnitude of misstatements in the Annual Standalone Financial Results that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Annual Standalone Financial Results may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Annual Standalone Financial Results.
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.
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.
(b) Review of the Standalone Financial Results for the quarter ended March 31, 2021
We conducted our review of the Standalone Financial Results for the quarter ended March 31, 2021 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 ICAI. A review of interim financial information consists of making inquiries, primarily of the Company's personnel 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 SAs specified under section 143(10) of the Act 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.
Other Matter
The Statement includes the results for the Quarter ended March 31, 2021 being the balancing figure between audited figures in respect of the full financial year and the published year to date figures up to the third quarter of the current financial year which were subject to limited review by us.
Our report on the Statement is not modified in respect of this matter.
For DELOITTE HASKINS AND SELLS LLP
Chartered Accountants (Firm's Registration No. 117366W/W-100018)
C Manish Muralidhar (Partner) (Membership No. 213649) (UDIN: 21213649AAAACJ4177)
Place: Hyderabad Date: 14 June 2021
Chartered Accountants ASV N Ramana Tower, 52, Venkatnarayana Road, T. Nagar, Chennai - 600 017, Tamil Nadu, India
Phone: +91 44 6688 5000 Fax: +91 44 6688 5400
INDEPENDENT AUDITOR'S REPORT ON AUDIT OF ANNUAL CONSOLIDATED FINANCIAL RESULTS AND REVIEW OF QUARTERLY FINANCIAL RESULTS
TO THE BOARD OF DIRECTORS OF
SWELECT ENERGY SYSTEMS LIMITED
Opinion and Conclusion
We have (a) audited the Consolidated Financial Results for the year ended March 31, 2021 and (b) reviewed the Consolidated Financial Results for the quarter ended March 31, 2021 (refer 'Other Matters' section below), which were subject to limited review by us, both included in the accompanying "Statement of Consolidated Financial Results for the Quarter and Year Ended 31 March 2021" of SWELECT ENERGY SYSTEMS LIMITED ("the Parent") and its subsidiaries (the Parent and its subsidiaries together referred to as "the Group"), for the quarter and year ended March 31, 2021, ("the Statement") being submitted by the Parent pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("the Listing Regulations").
(a) Opinion on Annual Consolidated Financial Results
In our opinion and to the best of our information and according to the explanations given to us, the Consolidated Financial Results for the year ended March 31, 2021:
| S.No | Name of the Entity | Relationship |
|---|---|---|
| 1 | Swelect Energy Systems Limited | The Parent |
| 2 | Amex Alloys Private Limited | Subsidiary of (1) above |
| 3 | Swelect Green Energy Solutions Private Limited | Subsidiary of (1) above |
| 4 | Swelect Energy Systems Pte. Limited | Subsidiary of (1) above |
| 5 | Swelect Power Systems Private Limited | Subsidiary of (1) above |
| 6 | Swelect Solar Energy Private Limited | Subsidiary of (1) above |
| 7 | KJ Solar Systems Private Limited | Subsidiary of (6) above |
| 8 | Noel Media & Advertising Private Limited | Subsidiary of (6) above |
| 9 | Swelect Inc. | Subsidiary of (1) above |
| 10 | SWEES Employees Welfare Trust | Controlled by the parent |
| 11 | Swelect Sun Energy Private Limited | Subsidiary of (1) above |
i. includes the results of the following entities:
- ii. is presented in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended; and
- iii. gives a true and fair view in conformity with the recognition and measurement principles laid down in the Indian Accounting Standards and other accounting principles generally accepted in India of the consolidated net profit and consolidated total comprehensive income and other financial information of the Group for the year ended March 31, 2021.
(b) Conclusion on Unaudited Consolidated Financial Results for the quarter ended March 31, 2021
With respect to the Consolidated Financial Results for the quarter ended March 31, 2021, based on our review conducted and procedures performed as stated in paragraph (b) of Auditor's Responsibilities section below and based on the consideration of the review reports of the other auditors referred to in Other Matters section below, nothing has come to our attention that causes us to believe that the Consolidated Financial Results for the quarter ended March 31, 2021, prepared in accordance with the recognition and measurement principles laid down in the 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 amended, including the manner in which it is to be disclosed, or that it contains any material misstatement.
Basis for Opinion on the Audited Consolidated Financial Results for the year ended March 31, 2021
We conducted our audit in accordance with the Standards on Auditing ("SAs") specified under Section 143(10) of the Companies Act, 2013 ("the Act"). Our responsibilities under those Standards are further described in paragraph (a) of Auditor's Responsibilities section below. We are independent of the Group in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India ("ICAI") together with the ethical requirements that are relevant to our audit of the Consolidated Financial Results for the year ended March 31, 2021 under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI's Code of Ethics. We believe that the audit evidence obtained by us and the audit evidence obtained by the other auditors in terms of their reports referred to in Other Matters section below, is sufficient and appropriate to provide a basis for our audit opinion.
Emphasis of Matter
We draw attention to Note 4 of the Consolidated Financial Results, which describes the management's assessment of impairment of property, plant and equipment in two operating subsidiaries, either on account of accumulated losses or significant reduction in revenues in those subsidiaries.
This assessment also considers the uncertainties arising from COVID 19 pandemic. Such estimates are based on current facts and circumstances and may not necessarily reflect the future uncertainties and events arising from the full impact of the COVID 19 pandemic.
Our report is not modified in respect of this matter.
Management's Responsibilities for the Statement
This Statement, which includes the Consolidated Financial Results is the responsibility of the Parent's Board of Directors and has been approved by them for the issuance. The Consolidated Financial Results for the year ended March 31, 2021, has been compiled from the related audited consolidated financial statements. This responsibility includes the preparation and presentation of the Consolidated Financial Results for the quarter and year ended March 31, 2021 that give a true and fair view of the consolidated net profit and consolidated other comprehensive income and other financial information of the Group in accordance with the recognition and measurement principles laid down in the Indian Accounting Standards, prescribed under Section 133 of the Act, read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations.
The respective Board of Directors of the companies included in the Group are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Group 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 the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the respective financial results that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of this Consolidated Financial Results by the Directors of the Parent, as aforesaid.
In preparing the Consolidated Financial Results, the respective Board of Directors of the companies included in the Group are responsible for assessing the ability of the respective entities to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the respective Board of Directors either intends to liquidate their respective entities or to cease operations, or has no realistic alternative but to do so.
The respective Board of Directors of the companies included in the Group are responsible for overseeing the financial reporting process of the Group.
Auditor's Responsibilities
(a) Audit of the Consolidated Financial Results for the year ended March 31, 2021
Our objectives are to obtain reasonable assurance about whether the Consolidated Financial Results for the year ended March 31, 2021 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 this Consolidated Financial Results.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the Annual Consolidated Financial Results, 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 override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of such controls.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors.
- Evaluate the appropriateness and reasonableness of disclosures made by the Board of Directors in terms of the requirements specified under Regulation 33 of the Listing Regulations.
- Conclude on the appropriateness of the Board of Directors' 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 ability of the Group 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 Consolidated Financial Results 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 cause the Group to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the Annual Consolidated Financial Results, including the disclosures, and whether the Annual Consolidated Financial Results represent the underlying transactions and events in a manner that achieves fair presentation.
- Perform procedures in accordance with the circular issued by the SEBI under Regulation 33(8) of the Listing Regulations to the extent applicable.
- Obtain sufficient appropriate audit evidence regarding the Annual Standalone Financial Results/ Financial Information of the entities within the Group to express an opinion on the Annual Consolidated Financial Results. We are responsible for the direction, supervision and performance of the audit of financial information of such entities included in the Annual Consolidated Financial Results of which we are the independent auditors. For the other entities included in the Annual Consolidated Financial Results, which have been audited by the other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.
Materiality is the magnitude of misstatements in the Annual Consolidated Financial Results that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Annual Consolidated Financial Results may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Annual Consolidated Financial Results.
We communicate with those charged with governance of the Parent and such other entities included in the Consolidated Financial Results of which we are the independent auditors 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.
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.
(b) Review of the Consolidated Financial Results for the quarter ended March 31, 2021
We conducted our review of the Consolidated Financial Results for the quarter ended March 31, 2021 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 ICAI. A review of interim financial information consists of making inquiries, primarily of the Company's personnel 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 SA specified under section 143(10) of the Act 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.
The Statement includes the results of the entities as listed under paragraph (a)(i) of Opinion and Conclusion section above.
We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33(8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, to the extent applicable.
Other Matters
• The Statement includes the results for the Quarter ended March 31, 2021 being the balancing figure between audited figures in respect of the full financial year and the published year to date figures up to the third quarter of the current financial year which were not subject to limited review by us. Our report is not modified in respect of this matter.
• We did not audit the financial statements of 8 subsidiaries included in the Consolidated Financial Results, whose financial statements / financial information reflect total assets of ₹ 39,900.33 lakhs as at March 31, 2021 and total revenues of ₹ 3,028.59 lakhs and ₹ 9,732.58 lakhs for the quarter and year ended March 31, 2021 respectively, total net (loss) after tax of ₹ (743.81) lakhs and ₹ (378.20) lakhs for the quarter and year ended March 31, 2021 respectively and total comprehensive (loss)of ₹ (743.81) lakhs and ₹ (378.20) lakhs for the quarter and year ended March 31, 2021 respectively and net cash flows of ₹ (420.80) lakhs for the year ended March 31, 2021, as considered in the respective standalone audited financial statements. The financial statements of these subsidiaries have been audited by the other auditors whose reports have been furnished to us, and our opinion and conclusion in so far as it relates to the amounts and disclosures included in respect of these subsidiaries, is based solely on the reports of such other auditors and the procedures performed by us as stated under Auditor's Responsibilities section above.
Our report on the Statement is not modified in respect of the above matter with respect to our reliance on the work done and the reports of the other auditors.
• The consolidated financial results includes the unaudited financial statements of 1 subsidiary, whose financial statements reflect total assets of ₹ 206.11 lakhs as at March 31, 2021 and total revenues of ₹ 0.02 lakhs and ₹ 10.74 lakhs for the quarter and year ended March 31, 2021 respectively, total net (loss) after tax of ₹ (2.38) lakhs and ₹ (4.94) lakhs for the quarter and year ended March 31, 2021 respectively and total comprehensive loss of ₹ (2.38) lakhs and ₹ (4.94) lakhs for the quarter and year ended March 31, 2021 respectively and net cash flows (net) of ₹ 45.49 lakhs for the year ended March 31, 2021, as considered in the Statement. These financial statements are unaudited and have been furnished to us by the Management and our opinion and 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 such unaudited financial statements. In our opinion and according to the information and explanations given to us by the Board of Directors, these financial statements are not material to the Group.
Our report on the Statement is not modified in respect of the above matter with respect to our reliance on the financial statements certified by the Board of the Directors.
For DELOITTE HASKINS SELLS LLP
Chartered Accountants (Firm's Registration No. 117366W/W-100018)
C Manish Muralidhar (Partner) (Membership No. 213649) (UDIN: 21213649AAAACL2673)
Place: Hyderabad Date: 14 June 2021