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Sat Industries Ltd.

BSE: 511076 Sector: Others
NSE: N.A. ISIN Code: INE065D01027
BSE LIVE 15:40 | 15 Dec 33.20 0.60
(1.84%)
OPEN

33.60

HIGH

34.55

LOW

33.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 33.60
PREVIOUS CLOSE 32.60
VOLUME 32220
52-Week high 35.10
52-Week low 17.25
P/E 110.67
Mkt Cap.(Rs cr) 359
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 33.60
CLOSE 32.60
VOLUME 32220
52-Week high 35.10
52-Week low 17.25
P/E 110.67
Mkt Cap.(Rs cr) 359
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

On The Standalone Financial Statements Of Sat Industries Limited

To the Members of

M/s. SAT Industries Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of M/s. SATIndustries Limited (‘the Company') which comprise the balance sheet as at 31stMarch 2017 the statement of profit and loss and the cash flow statement for the year thenended and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting the frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder.

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 standalone financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe standalone financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the standalone financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances but not for thepurpose of expressing an opinion on whether the Company has in place an adequate internalfinancial controls system over financial reporting and the operating effectiveness of suchcontrols. An audit also includes evaluating the appropriateness of the accounting policiesused and the reasonableness of the accounting estimates made by the Company's Directorsas well as evaluating the overall presentation of the standalone financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone 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 of the state of affairs of the Company as at 31stMarch 2017;

(b) in the case of the Statement of Profit and Loss of the profit for the year; and

(c) in the case of the Cash Flow Statement of the cash flows for the year ended onthat date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the "Annexure A" a statement on the matters specified in theparagraph 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 it appears from our examination of those books.

(c) the balance sheet the statement of profit and loss and the cash flow statementdealt with by this Report are in agreement with the books of account.

(d) in our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

(e) on the basis of the written representations received from the directors as on 31March 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2017 from being appointed as a director in terms of Section164 (2) of the Act; and

(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 to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements – There are no pending litigationsand claims.

ii. The Company does not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

iv. The company has provided requisite disclosures in its standalone financialstatements as to holdings as well as dealings in Specified Bank Notes during the period8th November 2016 to 30th December 2016 and these are in accordance with the books ofaccount maintained by the company - Refer Note 13.1.

For R. Kabra & Co.
Chartered Accountants
(Registration No.104502W)
(R.L Kabra)
Place: Mumbai Partner
Date: 23rd May 2017 M. Ship No.016216

(Referred to in our report of even date)

Annexure referred to in Point 1 of the Auditor's Report of even date to the members ofSAT Industries Limited for the year ended 31st March 2017.

On the basis of such checks as we considered appropriate and in terms of theinformation and explanations given to us during the course of the audit we state asunder:

i) (a) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

(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 and no material discrepancies were noticedon such verification

(c) As per the information and explanations given to us by the management all thetitle deeds of immovable properties are held in the name of the company and the originaldocuments are deposited with /mortgaged to the banks for the financial assistanceobtained therefore we have relied on the same as we are unable to verify the originaltitle deeds.

ii) (a) As per the information and explanations given to us the inventories (excludingstock materials and work in progress which are in transit & stock lying with thirdparties) have been physically verified during the year by the management and no materialdiscrepancies were noticed during such verification. In our opinion and having regard tothe nature and location of stocks the frequency of the physical verification isreasonable.

iii) (a) In our opinion and according to the information and explanations given to usthe company has not granted any secured or unsecured loans to companies firms limitedliability partnerships or other parties covered in the register maintained under section189 of the Act and therefore clause iii b and iii c of the Order are 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. Therefore the compliance with respect todirectives issued by the Reserve Bank of India and the provisions of sections 73 to 76 orany other relevant provisions of the Act and the rules framed there under are notapplicable to the company.

vi) In our opinion the maintenance of cost records has been specified by the CentralGovernment sub section (1) of section 148 of the Act and such accounts and records havebeen so made and maintained by the company. We have however not made a detailedexamination of the records with a view to determining whether they are accurate orcomplete.

vii) (a) According to information and explanation given to us and the records examinedby us the company is regular in depositing undisputed statutory dues including providentfund employees' state insurance income-tax sales-tax service tax duty of customsduty of excise value added tax cess and any other statutory dues to the appropriateauthorities. There were no undisputed dues as on the last day of the financial yearconcerned 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) Based on our audit procedures and the information and explanations provided bythe management we are of the opinion that the company has not defaulted in repayment ofloans or borrowing to financial institutions banks and Government. The Company does nothave any debenture holders.

ix) In our opinion and according to the information and explanations given to us theterm loans raised during the year have been applied for the purpose for which those loanswere raised. The company has not raised money by way of initial public offer or furtherpublic offer including debt instruments.

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 and 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 company clause 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 Standalone FinancialStatements etc as required by the applicable Accounting Standards.

xiv) The Company has Made Preferential allotment of shares during the year underreview. The requirement of section 42 of the Companies Act 2013 have been complied withand the amounts raised have been used for which the funds were raised.

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 IndiaAct 1934.

For R. Kabra & Co.
Chartered Accountants
(Registration No.104502W)
(R.L Kabra)
Place: Mumbai Partner
Date: 23rd May 2017 M. Ship No.016216

ANNEXURE "B"

THE INDEPENDENT AUDITOR'S REPORT ON THE STANDALONE FINANCIAL STATEMENTS OF SATINDUSTRIES LIMITED

Annexure referred to in Point 2(f) of the Auditor's Report of even date to the membersof SAT Industries Limited for the year ended 31st March 2017.

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 31st March 2017 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.

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 assets theprevention 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 the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness.

Our audit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the standalone financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of standalone 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 the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of standalone financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the standalone 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 31st March 2017 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 R. Kabra & Co.
Chartered Accountants
(Registration No.104502W)
(R.L Kabra)
Place: Mumbai Partner
Date: 23rd May 2017 M. Ship No.016216