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Maharashtra Seamless Ltd.

BSE: 500265 Sector: Metals & Mining
NSE: MAHSEAMLES ISIN Code: INE271B01025
BSE 00:00 | 27 Jun 612.85 1.30
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624.35

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610.10

NSE 00:00 | 27 Jun 613.35
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614.75

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625.50

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OPEN 617.20
PREVIOUS CLOSE 611.55
VOLUME 5182
52-Week high 647.00
52-Week low 287.85
P/E 10.79
Mkt Cap.(Rs cr) 4,106
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 617.20
CLOSE 611.55
VOLUME 5182
52-Week high 647.00
52-Week low 287.85
P/E 10.79
Mkt Cap.(Rs cr) 4,106
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Maharashtra Seamless Ltd. (MAHSEAMLES) - Auditors Report

Company auditors report

TO THE MEMBERS OF MAHARASHTRA SEAMLESS LIMITED

Report on the Audit of the Standalone Financial Statements Opinion

1. We have audited the accompanying financial statements of MAHARASHTRASEAMLESS LIMITED (“the Company”) which comprise the Balance Sheet as at March31 2021 the Statement of Pro t and Loss including the Statement of Other ComprehensiveIncome the Statement of Cash Flows and the Statement of Changes in Equity for the yearthen ended and notes to the standalone financial statements including a summary ofsignificant accounting policies and other explanatory information.

2. In our opinion and to the best of our information and according tothe explanations given to us the aforesaid financial statements give the informationrequired by the Companies Act 2013 (“the Act”) in the manner so required andgive a true and fair view in conformity with the accounting principles generally acceptedin India of the state of a airs of the Company as at March 31 2021 its profit includingother comprehensive income its cash flows and the change in equity for the year ended onthat date.

Basis for Opinion

3. We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Companies Act 2013 (the Act). Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone financial statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India together with the ethical requirementsthat are relevant to our audit of the standalone financial statements under the provisionsof the Companies Act 2013 and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the standalone financial statements.

Emphasis of Matters

4. We draw attention to the following matters included in the notes tothe financial statements:

a. Note No. 2.40 (ii) which states that the Company has not recognizedinterest income on loan granted to its subsidiary and the reason for such non recognition.

b. Note No.2.35 (c) and 2.50 which states that during the year theCompany has made diminution of investment in Subsidiary Company & Joint VentureCompany. The Company has computed current tax after considering the impact of provisionfor diminution of investments in subsidiaries and joint ventures as well as payment ofprovision for bank guarantee in step down subsidiary on the basis of an opinion receivedfrom a tax expert.

Our opinion is not modified in respect of these matters.

Key Audit Matters

5. Key Audit Matters are those matters that in our professionaljudgment were of most significance in our audit of the standalone financial statementsfor the financial year ended March 31 2021.These matters were addressed in the context ofour audit of the standalone financial statements as a whole and in forming our opinionthereon and we do not provide a separate opinion on these matters. We have determined thematters described below to be the key audit matters to be communicated in our report.

Key Audit Matter How our audit addressed the key audit matter
Accuracy and completeness of disclosure of related party transactions and compliance with the provisions of Companies Act 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 as amended (‘SEBI (LODR) 2015') (as described in note no. 2.39 of the standalone financial statements) Our audit procedures in relation to the disclosure of related party transactions included the following:
We identified the accuracy and completeness of disclosure of related party transactions as set out in respective notes to the standalone financial statements as a key audit matter due to: • We obtained an understanding of the Company's policies and procedures in respect of the capturing of related party transactions and how management ensures all transactions and balances with related parties have been disclosed in the standalone financial statements.
• The significance of transactions with related parties during the year ended March 31 2021. • We obtained an understanding of the Company's policies and procedures in respect of evaluating arms-length pricing and approval process by the audit committee and the board of directors.
• Related party transactions are subject to the compliance requirement under the Companies Act 2013 and SEBI (LODR) 2015. • We agreed the amounts disclosed with underlying documentation and read relevant agreements evaluation of arms-length by management on a sample basis as part of our evaluation of the disclosure.
• We assessed management evaluation of compliance with the provisions of Section 177 and Section 188 of the companies Act 2013 and SEBI (LODR) 2015.
• We evaluated the disclosures through reading of statutory information books and records and other documents obtained during the course of our audit.

Key Audit Matter How our audit addressed the key audit matter
Claims and exposures relating to taxation and litigation (as described in note no. 2.27 of the standalone financial statements) Our audit procedures included the following:
The Company has disclosed in note no. 2.27 of the standalone financial statements contingent liabilities of Rs.1898.97 lakhs (except note no 2.27 a b and f) in respect of disputed claims/ levies under various tax and legal matters. • We obtained an understanding evaluated the design and tested the operating effectiveness of the controls related to the identification recognition and measurement of provisions for disputes potential claims and litigation and contingent liabilities.
Taxation and litigation exposures have been identified as a key audit matter due to: • We obtained details of legal and tax disputed matters and evaluation made by the management and assessed management's position through discussions on both the probability of success in significant cases and the magnitude of any potential loss.
• Significance of these amounts and large number of disputed matters with various authorities. • We read external legal opinions (where considered necessary) and other evidence to corroborate management's assessment of the risk pro le in respect of legal claims.
• Significant judgement and assumptions required by management in assessing the exposure of each case to evaluate whether there is a need to set up a provision and measurement of exposures as well as the disclosure of contingent liabilities. • We involved tax specialists to assist us in evaluating tax positions taken by management.
We focused on this matter because of the potential financial impact on the financial statements. Additionally the treatment of taxation and litigation cases requires significant judgement due to the complexity of the cases timescales for resolution and involvement of various authorities. • We assessed the relevant disclosures made in the standalone financial statements for compliance in accordance with the requirements of Ind AS 37.

Other Information

6. The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis; Board's Report including Annexures to Board Report BusinessResponsibility Report Corporate Governance and Shareholders' Information but doesnot include the standalone financial statements and our auditor's report thereon. Theaforesaid documents are expected to be made available to us after the date of thisauditor's report.

7. Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

8. In connection with our audit of the financial statements ourresponsibility is to read the other information identified above when it becomes availableand in doing so consider whether the other information is materially inconsistent withthe financial statements or our knowledge obtained in the audit or otherwise appears tobe materially misstated.

9. When we read the aforesaid documents if we conclude that there is amaterial misstatement therein we are required to communicate the matter to those chargedwith governance.

Management's Responsibilities for the Standalone FinancialStatements

10. The Company's Board of Directors is responsible for thematters stated in section 134(5) of the Companies Act 2013 (“the Act”) withrespect to the preparation of these financial statements that give a true and fair view ofthe financial position financial performance changes in equity and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the accounting Standards specified under section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.

11. In preparing the standalone financial statements the management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless the Board of Directors either intends to liquidate the Companyor to cease operations or has no realistic alternative but to do so.

12. Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements

13. Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue 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 auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

14. As part of an audit in accordance with SAs we exerciseprofessional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

Obtain an understanding of internal control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3) (i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls with reference to financial statements inplace and the operating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

Conclude on the appropriateness of the management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the standalone financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor's report. However future events orconditions may cause the Company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

15. We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

16. We also provide those charged with governance with a statement thatwe have complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

17. From the matters communicated with those charged with governancewe determine those matters that were of most significance in the audit of the standalonefinancial statements for the financial year ended March 31 2021 and are therefore the keyaudit matters. We describe these matters in our auditor's report unless law orregulation precludes public disclosure about the matter or when in extremely rarecircumstances we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits of such communication.

Report on Other Legal and Regulatory Requirements

18. 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 of the Act we give in the Annexure-A a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

19. As required by Section 143 (3) of the Act we report that:

(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books.

(c) The Balance Sheet the Statement of Pro t and Loss (including othercomprehensive income) and the Cash Flow Statement Statement of Changes in Equity dealtwith by this report are in agreement with the books of account and with the returnsreceived from the unit not visited by us.

(d) In our opinion the aforesaid standalone financial statementscomply with the Accounting Standards specified under Section 133 of the Act read withRule 7 of the Companies (Accounts) Rules 2014.

(e) On the basis of the written representations received from thedirectors as on March 31 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2021 from being appointed as a director in termsof Section 164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company with reference to these standalone financialstatements and the operating effectiveness of such controls refer to our separate Reportin “Annexure B”.

(g) In our opinion the managerial remuneration for the year endedMarch 31 2021 has been paid / provided by the Company to its directors in accordance withthe provisions of section 197 read with Schedule V to the Act;

(h) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 as amended in our opinion and to the best of our information and according tothe explanations given to us:

a. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone financial statements Refer Note 2.27 of thestandalone financial statements [except Note No 2.27 (a b & f)].

b. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.

c. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.

For L. B. Jha & Co.
Chartered Accountants
Firm Registration No : 301088E
(Pratik Agarwal)
Place : Mumbai Partner
Date : 25th June 2021 Membership No. 301880
UDIN: 21301880AAAALB3605

ANNEXURE- A: TO THE INDEPENDENT AUDITOR'S REPORT

To the Members of MAHARASHTRA SEAMLESS LIMITED [Referred to inparagraph 18 of the Auditors' Report of even date]

i. (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of Property plant andequipments.

(b) As explained to us the company has a system of verifying all itsmajor Property Plant & Equipments over a period of three years. The Property Plantand Equipment so scheduled for verification during this year have been physically veri ed.The discrepancies noticed on such verification were not material and have been properlydealt with in the books of accounts.

(c) According to the information and explanations given to us and therecords of the Company examined by us the title deeds of the immovable properties of theCompany are held in the name of the Company.

ii. The inventory has been physically veri ed by the management duringthe year. The discrepancies noticed on physical veri cation of inventory as compared tobook records were not material and have been properly dealt with in the books of account.In our opinion the frequency of verification is reasonable.

iii. According to the information and explanations given to us andaudit procedures performed by us the Company has not granted any loans secured orunsecured to companies rms Limited Liability Partnerships or other parties covered inthe register maintained under section 189 of the Companies Act 2013 (‘theAct'). Accordingly the provisions of clause 3(iii) (a) (b) and (c) of the Order arenot applicable to the Company and hence not commented upon.

iv. According to the information and explanations given to us and therecords of the Company examined by us the provisions of section 185 and 186 of theCompanies Act 2013 have been complied with in respect of loans investments guaranteesand securities given by the Company.

v. The Company has not accepted any deposits within the meaning ofSections 73 to 76 of the Act and the rules framed there under.

vi We have broadly reviewed the books of accounts maintained by theCompany pursuant to the order made by the Central Government for the maintenance of costrecords under section 148(1) of the Act and are of the opinion that prima facie theprescribed accounts and records have been made and maintained. We have not howevercarried out any detailed examination of such records and accounts.

vii (a) According to the information and explanations given to us andthe records of the Company examined by us in our opinion the Company is regular indepositing the undisputed statutory dues including provident fund employees' stateinsurance income-tax duty of customs goods and services tax cess and any otherstatutory dues as applicable with the appropriate authorities.

(b) According to the information and explanations given to us and therecords of the Company examined by us the particulars of dues of customs central exciseservice tax goods and service tax entry tax income tax and value added tax as at March31 2021 which have not been deposited on account of a dispute are as follows:

Name of the statute Nature Amount (Rs. in lakhs) Period to which the amount relates Forum where the dispute is pending
Income Tax Act 1961 Demand for Income Tax 2.50 A.Y. 2011-12 Income Tax (Appellate Tribunal)
1104.48 A.Y. 2012-13 to 2017-18 Commissioner of Income Tax (Appeals)
7.71 FY 2005-06 & 2006-07 High Court
Central Excise Act 1944 and the Central Goods and Service Tax Act 2017 Excise Duty and Goods and Service Tax 34.35 Various Years from FY 2004-05 to 2017-18 Customs Excise and Service Tax (Appellate Tribunal)
24.20 30/06/17 to 28/02/18 Joint Commissioner Appeal (GST)
Sales Tax Act Sales Tax 67.94 AY 2014-15 Joint Commissioner Maharashtra of Sales Tax (Appeals)
44.29 AY 2015-16
613.50 AY 2016-17

viii. According to the information and explanation given to us and therecords of the Company examined by us the Company has not defaulted in repayment of duesof any of loans or borrowings to any banks.

The Company has neither taken any loan from financial institutions orGovernment nor issued any debentures. ix. In our opinion and according to the informationand explanation given to us on an overall basis the money raised by Company during theyear by way of term loan have been applied for the purpose for which they were obtained.

The Company has not raised any money by way of initial public offer orfurther public offer (including debt instruments). x. During the course of our examinationof the books and records of the Company carried out in accordance with the generallyaccepted auditing practices in India and according to the information and explanationsgiven to us we have neither come across any instance of fraud on or by the Companynoticed or reported during the year nor have we been informed of such case by themanagement. xi. In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act. xii. The relatedstatutes are not applicable as the Company is not a Nidhi Company. xiii. According to theinformation and explanations given to us and the records of the Company examined by usthe company has complied with the requirements of sections 177 and 188 of the Act withrespect to its transactions with the related parties. Pursuant to the requirement of theapplicable Accounting Standard details of the related party transactions have beendisclosed in Note 2.39 of the standalone financial statements for the year under audit.xiv. The Company has neither made any preferential allotment of shares nor fully or partlyconvertible debentures during the year under audit. xv. According to the information andexplanations given to us and the records of the Company examined by us the Company hasnot entered into any non-cash transactions with any director of the Company and theholding company or persons connected with them involving acquisition of assets by or fromthem for consideration other than cash. xvi. In our opinion and according to theinformation and explanations given to us not being a non-banking financial company theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.

For L. B. Jha & Co.
Chartered Accountants
Firm Registration No : 301088E
(Pratik Agarwal)
Place : Mumbai Partner
Date : 25th June 2021 Membership No. 301880
UDIN: 21301880AAAALB3605

ANNEXURE- B TO THE INDEPENDENT AUDITOR'S REPORT To the Members ofMAHARASHTRA SEAMLESS LIMITED

[Referred to in paragraph 19 (f) of the Independent Auditor'sReport of even date]

Report on the Internal Financial Control under Clause (i) of Subsections 3 of Section 143 of the Companies Act 2013(“the Act”)

1. We have audited the internal financial controls over financialreporting of Maharashtra Seamless Limited (“the Company”) as of March 31 2021in conjunction with our audit of the standalone financial statements of the Company forthe year ended on that date.

Management's Responsibility for Internal Financial Control

2. The Company's management is responsible for establishing andmaintaining internal financial control based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the “Guidance Note”) issued by the Institute of CharteredAccountants of India (ICAI). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

3. Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the “Guidance Note” and the Standard on Auditingissued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act2013 to the extent applicable. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

4. Our audit involves performing procedures to obtain audit evidenceabout the adequacy of the internal financial controls over financial reporting withreference to these standalone financial statements and their operating effectiveness. Ouraudit of internal financial controls over financial reporting includes obtaining anunderstanding of internal financial control over financial reporting with reference tothese standalone financial statements assessing the risk that a material weakness existsand testing and evaluating the design and operating effectiveness of internal controlsbased on the assessed risk. The procedure selected depends on the auditor's judgmentincluding the assessment of the risk of material misstatement of the financial statementwhether due to fraud or error.

5. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting with reference to these standalonefinancial statements.

Meaning of Internal Financial Control over Financial Reporting

6. A Company's internal financial control over financial reportingis a process designed to provide reasonable assurance regarding the reliability offinancial reporting and the preparation of financial statements for external purposes inaccordance with generally accepted accounting principles. A Company's internalfinancial control over financial reporting includes those policies and procedures that

i) Pertain to the maintenance of the records that in reasonabledetail accurately and fairly reflect the transactions and dispositions of the assets ofthe company;

ii) provide reasonable assurance that the transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditure of the Company are beingmade only in accordance with authorization of management and directors of company; and

iii) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the Company's assetsthat could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Control over FinancialReporting

7. Because of inherent limitation of internal financial control overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to errors or fraud may occur and not bedetected. also projections of any evaluations of the internal financial control overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

8. In our opinion the Company has in all material respect anadequate internal financial controls over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2021 basedon the internal control over financial reporting criteria established by the companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Control Over Financial Reporting issued by Institute ofChartered Accountants of India.

For L. B. Jha & Co.
Chartered Accountants
Firm Registration No : 301088E
(Pratik Agarwal)
Place : Mumbai Partner
Date : 25th June 2021 Membership No. 301880
UDIN: 21301880AAAALB3605

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