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Sat Industries Ltd.

BSE: 511076 Sector: Others
NSE: N.A. ISIN Code: INE065D01027
BSE LIVE 15:40 | 22 Aug 24.45 -0.05
(-0.20%)
OPEN

25.70

HIGH

25.70

LOW

23.35

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 25.70
PREVIOUS CLOSE 24.50
VOLUME 10880
52-Week high 33.25
52-Week low 11.00
P/E 122.25
Mkt Cap.(Rs cr) 264
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 25.70
CLOSE 24.50
VOLUME 10880
52-Week high 33.25
52-Week low 11.00
P/E 122.25
Mkt Cap.(Rs cr) 264
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Sat Industries Ltd. (SATINDUSTRIES) - Auditors Report

Company auditors report

Independent Auditor’s Report

To the Members of SAT Industries Limited Report on the Financial Statements

We have audited the accompanying financial statements of SAT INDUSTRIES LIMITED whichcomprise the Balance Sheet as at 31st March 2016 and the Statement of Profit and Loss andCash Flow Statements for the year then ended 31st March 2016 and a summary ofsignificant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

The Company’s Board of Directors is responsible for the matters in section 134(5)of the Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by Company’s Directors as well asevaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India; a) in the case of the Balance Sheet ofthe state of affairs of the Company as at March 31 2016; b) in the case of the Statementof Profit and Loss of the profit (before taxes)for the year ended on that date; and c) inthe case of the Cash Flow Statement of the cash flows for the year ended on that date.

Report on other Legal and Regulatory Requirements

1) Asrequired by the Companies (Auditor’s Report) Order 2016("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the "Annexure A" a statement on the mattersspecified in the paragraph 3 and 4 of the Order to the extent applicable.

2) As required by section 143(3) of the Act we report that:

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books

c) The Balance Sheet the Statement of Profit and Loss and Cash Flow Statement dealtwith by this Report are in agreement with the books of account.

d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

e) On the basis of written representations received from the directors as on 31 March2016 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2016 from being appointed as a director in terms of Section 164(2) of theAct.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B"; and

g) With respect to the other matters included in the Auditor’s Report and to ourbest of our information and according to the explanations given to us:

i. The Company does not have any pending litigations which would impact its financialposition.

ii. The Company doesnot have any long-term contracts including derivatives contractsforwhich there were any material foreseeable losses

iii. There were no amounts which were required to be transferred to the Investor andEducation and Protection Fund by the Company

For and on behalf of R. Kabra & Co.
Chartered Accountants
Registration No.104502W
(Deepa Rathi)
Place: Mumbai Partner
Date: 30th May 2016 M. Ship No.104808

ANNEXURE TO AUDITOR’S REPORT

(Referred to in our report of even date)

"Annexure A" referred to in Point 1 of the Auditor’s Report of even dateto the members of Sat Industries Limited for the year ended 31st March 2016.

On the basis of such check as we considered appropriate and in terms of the informationand explanations given to us during the course of the audit we state as under:

i) (a) The company is in the process of maintaining proper records showing fullparticulars including quantitative details and situation of fixed assets and is underupdation.

(b) According to the information and explanation given to us these fixed assets havebeen physically verified by the management at reasonable intervals in terms of the phasedprogram of verification adopted by the company but we cannot comment on the materialdiscrepancies noticed since the fixed assets register is under updation.

c) Clause i c is not applicable since there are no immovable property held by thecompany.

ii) (a) As per the information and explanations given to us the inventories (excludingwhich are in transit & stock lying with third parties) have been physically verifiedduring the year by the management and no material discrepancies were noticed during suchverification. In our opinion and having regard to the nature and location of stocks thefrequency of the physical verification is reasonable.

iii) (a) In our opinion and according to the information and explanations given to usthe company has not granted any secured or unsecured loans except for business purposes tocompanies firms limited liability partnerships or other parties covered in the registermaintained under section 189 of the Act and therefore clause iii b and iii c of the Orderare not applicable.

iv) In our opinion and according to the information and explanations given to us inrespect of loans investments guarantees and security the provisions of sections 185 and186 of the Act have been complied with.

v) In our opinion and according to the information and explanations given to us thecompany has not accepted any deposits except inter corporate deposits. Therefore thecompliance with respect to directives issued by the Reserve Bank of India and theprovisions of sections 73 to 76 or any other relevant provisions of the Act and the rulesframed there under are not applicable to the company being inter corporate deposit areexempt under Rule 3 Chapter V of the Companies Act 2013.

vi) Clause vi is not applicable for the maintenance of cost records since the companyis currently into trading.

vii) (a) According to information and explanation given to us and the records examinedby us the company is generally regular in depositing undisputed statutory dues includingprovident fund employees’ state insurance income-tax sales-tax service tax dutyof customs duty of excise value added tax cess and any other statutory dues to theappropriate authorities. There were no undisputed dues as on the last day of the financialyear concerned for a period of more than six months from the date they became payable.

(b) According to the information and explanation given to us there were no dues ofincome tax sales tax service tax duty of customs duty of excise and value added taxwhich have not been deposited on account of any dispute

viii) Clause viii is not applicable since the company has not taken any loan orborrowing from the financial institutions Banks & Government.

ix) Clause ix is not applicable since the company has not raised any term loan duringthe year & neither any public deposit.

x) During the course of our examination of the books and records of the company carriedin accordance with the generally accepted auditing practices in India ad according to theinformation and explanations given to us no fraud by the company or on the Company by itsofficers or employees has been noticed or reported during the year

xi) In our opinion and according to the information and explanations given to us themanagerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act.

xii) Since the company is not a nidhi companyclause xii of para 3 of the Order is notapplicable to the Company.

xiii) In our opinion and based on such checks as we considered appropriate all thetransactions with the related parties are in compliance with sections 177 and 188 of theAct where applicable and the details have been disclosed in the Financial Statements etcas required by the applicable Accounting Standards.

xiv) The company has made preferential allotment or private placement of shares orfully or partly convertible debentures during the year under review.

xv) In our opinion and based on such checks as we considered appropriate andaccording to the information and explanations given to us the company has not entered into any non-cash transactions with directors or persons connected with them.

xvi) In our opinion and according to the information and explanations given to us thecompany is not required to be registered under section 45- IA of the Reserve Bank of IndiaAct1934.

For R.KABRA & CO.
Chartered Accountants
(Firm Registration No.104502W)
(DEEPA RATHI)
Place : Mumbai Partner
Dated: May 30 2016 Membership No. 104808

ANNEXURE "B" TO THE INDEPENDENT AUDITOR’S REPORT OF SAT INDUSTRIESLIMITED

Annexure referred to in Point 2(f) of the Auditor’s Report of even date to themembers of SAT INDUSTRIES LIMITED for the year ended 31st March 2016.

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of SATINDUSTRIES LIMITED ("the Company") as of March 31 2016 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internalfinancial controls based on "the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India". These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company’s policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") issued by ICAI and the Standards on Auditing prescribedunder section 143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects. Our audit involves performing procedures to obtain audit evidence about theadequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor’s judgement including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that: (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany’s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2016 based on"the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India".

For and on behalf of
R. Kabra & Co.
Chartered Accountants
Registration No.104502W
(DEEPA RATHI)
Place : Mumbai Partner
Dated: May 30 2016 Membership No. 104808