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Satia Industries Ltd.

BSE: 539201 Sector: Industrials
NSE: N.A. ISIN Code: INE170E01015
BSE 13:45 | 22 Jun 431.00 -8.75
(-1.99%)
OPEN

437.00

HIGH

437.00

LOW

431.00

NSE 05:30 | 01 Jan Satia Industries Ltd
OPEN 437.00
PREVIOUS CLOSE 439.75
VOLUME 520
52-Week high 445.90
52-Week low 76.90
P/E 6.28
Mkt Cap.(Rs cr) 431
Buy Price 0.00
Buy Qty 0.00
Sell Price 431.00
Sell Qty 226.00
OPEN 437.00
CLOSE 439.75
VOLUME 520
52-Week high 445.90
52-Week low 76.90
P/E 6.28
Mkt Cap.(Rs cr) 431
Buy Price 0.00
Buy Qty 0.00
Sell Price 431.00
Sell Qty 226.00

Satia Industries Ltd. (SATIAINDUST) - Auditors Report

Company auditors report

TO THE MEMBERS OF

SATIA INDUSTRIES LIMITED

V. RUPANA

We have audited the accompanying standalone financial statements of Satia IndustriesLimited ("the Company") which comprise the Balance Sheet as at March 31 2017and the Statement of Profit and Loss and the cash flow statement for the year then endedand a summary of significant accounting policies and other explanatory information.

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 the maintenance of adequate accounting records inaccordance with the provision of the Act for safeguarding of the assets of the Company andfor preventing and detecting the frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

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 there under. We conducted our audit inaccordance with the Standards on Auditing specified under section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement. An audit involves performing procedures to obtain audit evidenceabout the amounts and disclosures in the financial statements. The procedures selecteddepend on the auditor’s judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany’s preparation of the financial statements that give true and fair view inorder to design audit procedures that are appropriate in the circumstances but not forthe purpose of expressing an opinion on whether the Company has in place an adequateinternal financial controls system over financial reporting and operating effectiveness ofsuch controls. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by Company’sDirectors as well as evaluating 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.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch2017 its profit/loss and its cash flows for the year ended on that date.

1. As required 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 statement on the matters Specified inparagraphs 3 and 4 of the Order.

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 Cash Flow Statement dealtwith 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 subject to the notes of accounts annexed to the standalone financial statements and

e) On the basis of written representations received from the directors as on 31 March2017 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31 March 2017 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".

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 financial statements. Refer Note 2.20 to the standalone financialstatements.

(ii) The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long term contracts includingderivative contracts as per notes annexed to the financial statements;

(iii) There were no amounts which required to be transferred by the Company to theInvestor Education and Protection Fund.

(iv) The Company has provided requisite Disclosures in the financial statements asregards its holding and dealings in Specified Bank Notes as defined in the"Notification S.O. 3407(E) dated the 8th November 2016 of the Ministry ofFinance" during the period from 8th November 2016 to 30thDecember 2016 and these are in in accordance with the books of accounts maintained by thecompany. Refer Note 2.7.7 to the stand alone financial statements.

Place : New Delhi FOR RAKESH BANSAL & CO.
Date : 29.08.2017 CHARTERED ACCOUNTANTS
RAKESH BANSAL
M.No.090278
FRN 011474N

The Annexure Referred to in paragraph 1 under ‘Report on Other Legal andRegulatory Requirements’ of our Report of even date to the members of SatiaIndustries Limited V. Rupana on the accounts of the company for the year ended 31st March2017.

On the basis of such checks as we considered appropriate and according to theinformation and Explanations given to us during the course of our audit we report that:

(i) (a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of the fixed assets.

(b) As explained to us fixed assets have been physically verified by the managementduring the year in accordance with the phased programme of verification adopted by themanagement which in our opinion provides for physical verification of all the fixedassets at reasonable intervals. According to the information and explanations given to usno material discrepancies were noticed on such verification.

(ii) a) As explained to us the inventories of finished goods semi-finished goodsstores spare parts and raw materials were physically verified at regular intervals/ (atthe end of the year) by the Management.

b) In our opinion and according to the information and explanation given to us theprocedures of physical verification of inventories followed by the Management werereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.

c) In our opinion and on the basis of our examination of the records the Company isgenerally maintaining proper records of its inventories except for material lying on floor& work in progress (which has been determined during the physical verification at theyearend) and the stocks of REC/CER/E-CERTS etc ( which are being accounted on sale basisonly).

The discrepancies noticed on verification between the physical stocks and the bookrecords were not material in relation to the operations of the Company and the same havebeen properly dealt with in the books of accounts.

(iii) In respect of loans secured or unsecured granted to the parties covered inregister maintained under section 189 of the Companies Act 2013 in our opinion the rateof interest and other terms and conditions on which the loans have been granted notprejudicial to the interest of the company. There is no overdue amount in the loanaccounts.

(iv) In our opinion and according to the information and explanations given to usthe company has complied with the provisions of section 185 and I86 of the Companies Act2013 In respect of loans investments guarantees and security.

(v) The Company has not accepted any deposits from the public and hence thedirectives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 orany other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules2015 with regard to the deposits accepted from the public are not applicable (vi) Wehave broadly reviewed the cost records maintained by the Company pursuant to the Rulesmade by the Central Government under Section 148(1) of the Companies Act 2013 and are ofthe opinion that prima facie the prescribed cost records have been made and maintained. Wehave however not made a detailed examination of these records with a view to determiningwhether they are accurate or complete.

(vii) In respect of statutory dues:

a) According to the records of the company and information and explanations given tous the Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund employees state insurance (ESI) Investor Education andProtection Fund Income-tax Tax deducted at sources Tax collected at sourceProfessional Tax Sales Tax value added tax (VAT) Service Tax Custom Duty Excise DutyCess and other material statutory dues applicable to it with the appropriate authorities.There are no arrears of such dues which were outstanding for a period of more than sixmonths from the date these became payable as on 31.03.2017.

b) According to the information and explanations given to us the following dues ofincome tax sales tax duty of excise service tax and value added tax have not beendeposited by the Company on account of disputes: Excise & Customs Duty Rs.5.57 Lakhs

(viii) In our opinion and according to the information and explanations given tous the Company has not defaulted in the repayment of dues to banks. The company has notissued any debentures.

(ix) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not raised moneys by way of initial public offeror further public offer including debt instruments and term Loans(Except from banks).Accordingly the provisions of clause 3 (ix) of the Order are not applicable to theCompany and hence not commented upon.

(x) Based upon the audit procedures performed and the information and explanationsgiven by the management we report that no fraud by the Company or on the company by itsofficers or employees has been noticed or reported during the year.

(xi) Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act;

(xii) In our opinion the Company is not a Nidhi Company. Therefore the provisionsof clause (xii) of the Order are not applicable to the Company.

(xiii) In our opinion all transactions with the related parties are in compliance withsection177 and 188 of Companies Act 2013 and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards.

(xiv) The Company has not made any preferential allotment or private placement ofshares during the year as such this clause is not applicable to the company.

(xv) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of clause 3 (xv) ofthe Order are not applicable to the Company and hence not commented upon.

(xvi) In our opinion the company is not required to be registered under section 45 IAof the Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi)of the Order are not applicable to the Company and hence not commented upon.

Place : New Delhi FOR RAKESH BANSAL & CO.
Date : 29.08.2017 CHARTERED ACCOUNTANTS
RAKESH BANSAL
M.No.090278
FRN 011474N

"Annexure B" to the Independent Auditor’s Report of even date on theStandalone Financial Statements of Satia Industries Limited V.Rupana

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act") We have audited the internalfinancial controls over financial reporting of Satia Industries Limited V.Rupana("the Company") as of March 31 2017 in conjunction with our audit of thestandalone financial statements of the Company for the year ended on that date.

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 (‘ICAI’). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company’s policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

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") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects. Our auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit 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 judgment including the assessment of the risks of materialmisstatement of the 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 controlssystem 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 authorizations 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.

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.

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

Place : New Delhi FOR RAKESH BANSAL & CO.
Date : 29.08.2017 CHARTERED ACCOUNTANTS
RAKESH BANSAL
M.No.090278
FRN 011474N