Sprayking Agro. Management Discussions


Sprayking Agro Equipment Limited is emerging as a prominent force within the Brass manufacturing. We specialize in Brass Fittings, Brass Forging Equipment, Brass Transformer Parts, and a variety of Customized Brass Parts.

With an expansive global footprint, Sprayking Agro Equipment Limited boasts an exceptional clientele spanning across the United States, Europe, Australia, Canada, South Africa, the UAE, and India. Our comprehensive range of Products with our deep Technical knowledge & robust infrastructure enable us to leverage the companys experience, expertise & reach in order to encompass global markets.

A significant milestone in our journey occurred in 2016, when we transitioned from a Private Limited company to a Limited company structure. This shift marked a pivotal moment in the Brass industries as Sprayking Agro Equipment Limited is setting a new benchmark. Having its head office & work location at Jamnagar — the Brass City of India, Sprayking Agro Equipment Limited is moving towards the future with the simultaneous growth of all who are directly or indirectly associated with it.


After a Challenging 2021 which saw unprecedented disruption to human life and economic activity across the globe, the world economy witnessed a sharp recovery on the back of enhanced vaccination coverage and continued fiscal and monetary stimuli across countries.

The demand for agriculture equipment has been in a marked upswing phase powered by higher agriculture commodity prices & favorable farm economics across most key markets with net farm incomes in the U.S. growing by almost 25% year-on-year for 2021 with above average forecasts for farm sector profits for 2022. The net cash receipts from the sale of agricultural commodities are also likely to grow by almost 8% for 2022-23.

The industry, however, continues to make steady progress towards development of a range of sustainable technologies geared towards de-carbonization of agriculture over long term while continuing the development of disruptive technologies and innovative services & business models configured on connectivity & autonomy.

Overall, demand for agriculture equipment is projected to maintain its overall growth momentum across most key global markets in 2022. The long term market fundamentals for agriculture remain robust and firmly in place withthe global agriculture output needed to double itself by 2050 to sustain the projected population growth rate & trend with a crucial role likely to be played by mechanization & technological evolution by the industry.

For the year to come due to the ongoing political tensions and demand supply imbalances have led to increase in

commodity prices giving rise to inflation in many countries. Persistently elevated and sticky inflation has emerged as a key concern globally. As per IMF, global inflation in 2022 is projected at 7.4% - the highest in 26 years. Inflation remains a key concern for global economies posing a significant threat to the growth prospects of many nations.

The introduction of intelligent machines and autonomous vehicles to agricultural operations will allow for increased efficiency as well as for reduced environmental impact. Currently, innovative sensing and actuating technologies together with improved information and communication technologies provide the potential for such advancements. However, the full exploitation of these engineering advances requires the traditional agricultural machinery management process to be revisited. As a result traditional agricultural operations planning methods, especially the job-shop planning methodology, must be supplemented with new planning features, such as route planning and sequential atask scheduling.


The continuous efforts and support of the government across various sectors helped to revive the economy. Unfortunately, Unprecedented rise in commodity and crude oil prices, in the second half of the year led to persistently sticky and elevated inflation with March 2022 CPI hitting a 17-month high of 6.95%. Sustained inflationary headwinds and outbreak of the Russia-Ukraine conflict leading to extended global disruptions and spiraling of commodity prices have led to downward revisions to the growth forecast forFY24. The Indian economy grew by 7.2% in FY 2022-23 and is likely to grow by 6.5% in FY 2023-24.

The Indian agriculture equipment market already seems to be making headway exhibiting a CAGR of 5.3% durmglast decade itself and touching about 795 billion INR in FY2021. The estimates suggest that there would be a healthy CAGR of 11% to Rs 1689 billion by 2027 (as per IMARC Group). This may however be accompanied with a decline in the share of tractors as other machines would grow at a faster pace, as per ICRA Research. Dueto current share of tractors, m India, "Mechanization" is being replaced with "Tractorization".


The global Brass market size is projected to reach multi million by 2028, in comparison to 2022, with unexpected CAGR during the forecast period.

Brass Market Report identifies various key players in the market and sheds light on their strategies and collaborations to combat competition. The comprehensive report provides a two-dimensional picture of the market. By knowing the global revenue of manufacturers, the global price of manufacturers, and the production by manufacturers during the forecast period of 2022 to 2028, the reader can identify the footprints of manufacturers in the Brass industry.

As well as providing an overview of successful marketing strategies, market contributions, and recent developments of leading companies, the report also offers a dashboard overview of leading companies past and present performance. Several methodologies and analyses are used in the research report to provide in-depth and accurate information about the Brass Market.


Global competition and high demand for everything from electronics to new transportation infrastructure have propelled manufacturing to rapid advances in productivity not only to keep pace but reduce cost per part and maintain competitiveness. To accomplish this, manufacturers constantly seek ways to keep up within their industry segments, and more that leads them to acquiring new, advanced high-speed machine tools and taking full advantage of their high-speed machining potential with part materials such as brass — a combination that also makes it even easier for manufacturers to justify the cost of new equipment.

The Indian governments commitment towards rural development through agro-mechanization is likely to boost the agricultural machinery market in India. Also, government subsidies and low import duties on agricultural equipment have made such heavy machinery affordable for farmers, thus increasing salesvolumes.

Large scale migration from rural to urban areas has led to a shortage of labour in the farming industry. Therefore, to fulfil the rising demand for agricultural products by the growing Indian population,farmers are forced to use automatic machinery that ensure high productivity, in less time, with limited human effort.

In India, the average farm size is less than two hectares. It is difficult for farmers to use heavy equipment on such small farms. As a result, the demand for agricultural machinery is limited to farmers who have larger pieces of land.

Despite large-scale mechanization, most of the agricultural operations in India are still carried out through traditional tools like sickle, wooden plough, etc., owing to small per-farmer land-holdings. Also, after sales service of firm equipment is poor in the country, mainly due to the unavailability of adequate service centers. These factors together, deter the growth of the agricultural machinery market in India.

Threats; New entrants in the market, Substitute and alternative products, Fluctuation in commodity prices, Political Instability.


Company acknowledges the commitment, competence and dedication of its employees at all areas of business. The Company is committed to nurture, enhance and retain best talent through investment m its people to upgrade their technical, domain and leadership capability. To retain leadership position, the Company continuously innovates and customizes its Human Resource (HR) strategy to meet changing employee need. The Company has taken initiative for safety of employees and implemented regular safety audit, imparted machine safety training, and wearing protective equipments.

The total number of employees on roll in the Company as on 31st March, 2023, including factory workmen, was 6. The Company will continue to create opportunity and ensure recruitment of diverse candidates without compromising on meritocracy.


The company has a proper and adequate system of internal controls to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposition and that all transactions are authorized, recorded, and reported correctly. Independent Internal auditors conduct audit covering a wide range of operational matters and ensure compliance with specified standards.


The brass parts industry is an intermediate industry, supplying to a range of industries that use brass as a component. This includes electronics, pneumatics, hydraulics, sanitary fittings and more. The growth of the brass parts India, hence, depends on the growth of the industrial sector overall. The defining news here in the recent years has come from both the domestic and international sector. International growth Traditionally, the industry dealing in brass parts India has largely been confined to the domestic markets. Parts of the reason were Indias own closed markets. Later the bulk of the exports were limited to African States. However, aggressive marketing has opened up this share. Today India also exports to American and European markets. The share of exports has also increased by double. From a mere 10%, the current share of exports in total turnover is 20%. While this is still a fairly low share, the impressive growth in a short time span is a good sign. Added to this is the fact that these are high value markets that are expected to improve both volumes and value of exports.


The Company has adequate Internal Control Systems and Procedures with regard to purchase of Stores, Raw Materials including Components, Plant and Machinery, equipment, sale of goods and other assets. The company has clearly defined roles and responsibilities for all managerial positions and all operating parameters are monitored and controlled. The Company designs and maintains accounting and internal control systems to provide reasonable assurance at reasonable cost that assets are safeguarded against loss from unauthorized use or disposition, and that the financial records are reliable for preparing financial statements and maintaining accountability for assets.


The Government of India has adopted few initiatives in the recent past, some of these are as follows;

• The Lead Free Brass Initiative is an important programme to pro-actively move towards a sustainable low-lead brass alloy industry in Europe. The initiative has led to the development of a Roadmap to outline how the industry will move towards a low-lead alloy future. The Roadmap suggests that by starting NOW then by 2035 the lead content in brass alloys could be reduced by more than 70%.

• The government plans to monetize assets worth Rs. 28,727 crore (USS 3.68 billion) in the mining sector over 2022-25.

• In 2022, PLI Scheme for domestic production of specialty steel has been approved with an outlay of Rs. 6,322 crores (US$ 762.4 million) by the Cabinet.

• Export duty on Iron ores/ concentrates and iron ore pellets was raised to 50% and 45% respectively.

• In addition, 15% export duty was imposed on pig iron and several steel products.

• Steel Authority of India Ltd. (SAIL) and Central Public Sector Enterprises (CPSEs), under the Ministry of Steel, supplied 48,200 tonnes of steel for the Purvanchal Expressway, which was inaugurated by Prime Minister Narendra Modi on November 16, 2021.

• In Union Budget 2021, the government reduced customs duty to 7.5% on semis, flat and long products of nonalloy, alloy and stainless steels to provide relief to MSMEs.

• To boost recycling of copper in India, the government announced reduction of import duty on copper scrap from 5% to 2.5% in the Union Budget 2021.

• The National Steel Policy aims to boost per capita steel consumption to 160 kgs by 2030-31. The government has a

fixed objective of increasing rural consumption of steel from the current 19.6 kgs per capita to 38 kgs per capita by 2030-31.


The Total Income of the Company stood at Rs. 1933.25 Lakhs for the year ended March 31, 2023 as against Rs.

1599.52 lakhs in the previous year. The Company made a net profit (after tax) of Rs. 170.02 lakhs for the year ended

March 31, 2023 as compared to the Rs. 34.68 lakhs in the previous year. The Revenue from Operations of the

company was increased by 17.27 % over previous year.

The Companys financial performance for the year ended March 31, 2023 is summanzed below.

(Amount in Lakhs)
31.03.2023 31.03.2022
I. Net Sales/Income from Operations 1932.77 1598 98
II. Other Income 0.48 0.54
III. Total Revenue (I+II) 1933.25 1599.52
IV. Earnings Before Interest, Taxes, Depreciation and Amortization Expense 254.04 49.41
V. Finance Cost 10.81 0.38
VI. Depreciation and Amortization Expense 11.08 1.97
VII. Profit Before Tax (IV-V-VI) 232.15 47.06
VIII. Tax Expense:
i. Current Tax Expense (61.11) (12.15)
ii. Deferred (1.02) (0.23)
IX. Profit After Tax (VII-VIII) 170.02 34.68


Sr. No. Ratio Analysis Ratio Difference Reasons for Differences, if Difference is More than 25%.
31-Mar-23 31-Mar-22
1 Debt Seivice Coverage Ratio 1.93 - - Due to company has taken Debt in current year.
2 Trade Receivables Turnover Ratio 2.11 1 71 23.53% Due to Jump in sales.
3 Trade Payables Turnover Ratio 132.96 6.07 2090.33% Due to Company has going for right issue, and amount is utilized for the advance money for supply of machinery & Materials.
4 Net Capital Turnover Ratio 0.8 1.83 -56.18% Due to Company has going for right issue, and amount is utilized for the advance money for supply of machinery & Materials.
5 Net Profit Ratio 0.09 0.02 305.54% Due to company has booked Handsome growth of profit.
6 Return on Equity Ratio 0.07 0.04 80.04% Due to company has booked Handsome growth of profit.
7 Return on Capital employed 0.1 0.05 87.48% Due to increasing equity of the company.
8 Return on Investment - - - NA
9 Current Ratio 12.35 4.36 183.07% Due to Company has going for right issue, and amount is utilized for the advance money for supply of machinery & Materials.
10 Debt Equity Ratio 0.05 - 100% Due to company has taken Debt in current year.
11 Inventory Turnover 1046 123.76 -91.55% Due to High Inventories stock at end of the year.


Statements in this Report, describing the Companys objectives, projections, estimates and expectations may constitute forward looking statements within the meaning of applicable laws and regulations. Forward looking statements are based on certain assumptions and expectations of future events. These statements are subject to certain risks and uncertainties. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The actual results may be different from those expressed or implied since the Companys operations are affected by many external and internal factors, which are beyond the control of the management. Hence the Company assumes no responsibility in respect of forward-looking statements that may be amended or modified in future based on subsequent developments, information or events.