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Satia Industries Ltd.

BSE: 539201 Sector: Industrials
NSE: SATIA ISIN Code: INE170E01023
BSE 00:00 | 26 Nov 86.60 -1.75
(-1.98%)
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88.35

HIGH

88.75

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86.50

NSE 00:00 | 26 Nov 86.40 -2.30
(-2.59%)
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88.90

HIGH

88.90

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OPEN 88.35
PREVIOUS CLOSE 88.35
VOLUME 3989
52-Week high 119.45
52-Week low 75.45
P/E 12.98
Mkt Cap.(Rs cr) 866
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 88.35
CLOSE 88.35
VOLUME 3989
52-Week high 119.45
52-Week low 75.45
P/E 12.98
Mkt Cap.(Rs cr) 866
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Satia Industries Ltd. (SATIA) - Auditors Report

Company auditors report

To the Members of Satia Industries Limited V Rupana.

Report on the Standalone Financial Statements

Opinion

We have audited the accompanying the standalone ind AS financial statements of SatiaIndustries Limited ("the Company") which comprise the balance sheet as at 31stMarch 2020 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and the Statement of Cash Flows for the year ended on thatdate and notes to standalone ind AS Financial statements including a summary of thesignificant accounting policies and other explanatory information (hereinafter referred toas "the standalone financial statements").

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 Companies Act 2013 as amended ("the Act") in the manner so required andgive a true and fair view in conformity with the Indian Accounting Standards prescribedunder section 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015 as amended ("Ind AS") and other accounting principles generally acceptedin India of the state of affairs of the Company as at March 31 2020 the profit andtotal comprehensive income changes in equity and its cash flows for the year ended onthat date.

Basis for Opinion

We conducted our audit of the standalone financial

statements in accordance with the Standards on Auditing specified under section 143(10)of the Act. Our responsibilities under those Standards are further described in theAuditor's Responsibilities for the Audit of the Standalone Financial Statements section ofour report. We are independent of the Company in accordance with the Code of Ethics issuedby the Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the standalone financial statements.

Emphasis of Matter

We draw attention to Note No. 53 to the Standalone Ind AS Financial Statements whichdescribes the uncertainties and the impact of Covid-19 pandemic on the Company'soperations and results as assessed by the management. Our opinion is not modified inrespect of this matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit ofthe standalone financial statements ofthe current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide a separateopinion on these matters.

S no. Key Audit Matter Auditor's response
1. In respect of parties' balances confirmations were sought from aLLthe parties at the year end. Some parties have sent the confirmations. In respect of other parties' management realises that due to Covid-19 Lockdown with many offices being closed and others working with skeleton staff confirmations are not coming. It has also been explained that management has the system of reconciling balances with the parties from time to time. ALL the parties are running parties with whom company has regular business transactions. In the absence of external confirmations we as auditors carried out alternative procedures to verify the balances:
i. We tested the effectiveness of controls over sale and purchase transactions with the parties and accounting of the same.
ii. ALL transactions of saLe/purchase were verified through externaL biLLs and invoices to/from the parties. The payments were cross verified from the bank statements of the company. In view of the high magnitude of such transactions we foLLowed SA 530 "Audit SampLing" in this regard.
2. Physical Verification of Stock We have followed the following processes:
The physical verification of stock is carried out by the management every year so as to cover all the locations. Each year a team of the technical qualified personal is constituted by the company for verification of inventory. i. We carried out checking of the stock records to verify the stock as on 16.04.2020. Keeping in view the magnitude of transactions the same has been done as per sample selection basis in accordance with SA 530 "Sample Selection" of ICAI
Due to outbreak of COVID 19 there was a lock down in the state. The physical verification of stock could not be accomplished as on 31.03.2020. The company took permission from the Authorities and the verification of the stock was conducted as on 16.04.2020. ii. The records of the physical verification of stock were verified.
iii. Keeping in view the location magnitude and nature of the inventory consisting of Agro waste material Husk Chemicals store & Spares etc we were not technically competent to personally verify the stock physically and relied on the report prepared by the technical team constituted by the company.
iv. We used roll backward procedure to arrive at the physical stock as at March 31 2020.
v. We also tallied the same with the regular stock records maintained by the company and produced for our verification.

Information Other than the Standalone Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the standalone financial statements and our auditor's report thereon. Our opinionon the standalone financial statements does not cover the other information and we do notexpress any form of assurance conclusion thereon. In connection with our audit of thestandalone financial statements our responsibility is to read the other information andin doing so consider whether the other information is materially inconsistent with thestandalone financial statements or our knowledge obtained during the course of our auditor otherwise appears to be materially misstated. If based on the work we have performedwe conclude that there is a material misstatement of this other information we arerequired to report that fact. We have nothing to report in this regard.

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 Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance totalcomprehensive income changes in equity and cash flows of the Company in accordance withthe Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding 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 standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statements

management is responsible for assessing the Company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless management either intends to liquidate the Company orto cease operations or has no realistic alternative but to do so.

The Board of Directors are responsible for overseeing the Company's financial reportingprocess

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

identify and assess the risks of material misstatement of the standalone financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal financial controls relevant to the audit in orderto 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 system in place and the operatingeffectiveness of such controls.

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

conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the company to cease tocontinue as a going concern.

Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the standalone financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit 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 including Other ComprehensiveIncome Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the relevant books of account.

d) In our opinion the aforesaid standalone financial statements comply with the Ind ASspecified under Section 133 of the Act read with Companies (Indian Accounting Standard)Rules 2015 as amended unless stated other wise.

e) On the basis of the written representations received from the directors as on March31 2020 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2020 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 A". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the company's internal financial controls overfinancial reporting.

g) With respect to the other matters to be included in the auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended:

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.

h) With respect to the other matters to be included

in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 as amended in our opinion and to the best of our information andaccording to the explanations given to us:

i. The company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements Refer Note No. 47 to Standalone FinancialStatement;

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.

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

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

For Deepak Grover & associates

Place : V. Rupana Chartered Accountants
Date : 22-06-2020 Deepak Grover
Proprietor
M.No.505923
FRN:020678N
UDIN:20505923AAAADU9842

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

(referred to in paragraph 1(f) under ‘report on other Legal and RegulatoryRequirements' section of our report to the members of Satia Industries Limited of evendate)

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 SatiaIndustries Limited ("the Company") as of March 31 2020 in conjunction with ouraudit of the standalone financial statements of the company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India. 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 respective company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof india and the Standards on Auditing prescribed under Section 143(10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

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 includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement 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 internal financial controls system overfinancial reporting of the Company.

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 financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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.

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 financial reporting were operating effectively asat March 31 2020 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.

For Deepak Grover & Associates

Place : : V. Rupana Chartered Accountants
Date : : 22-06-2020 Deepak Grover
Proprietor
M.No.505923
FRN:020678N
UDIN:20505923AAAADU9842

Annexure - B to the Independent Auditors' Report

The Annexure referred to in independent Auditors' Report to the members of the Companyon the standalone Ind AS financial statements for the year ended 31 March 2020 we reportthat:

(i) (a) The Company has maintained proper records

showing full particulars including quantitative details and situation of the propertyplant and Equipment.

(b) As explained to us Property Plant and Equipment have been physically verified bythe management during the year in accordance with the phased programme of verificationadopted by the management which in our opinion provides for physical verification of allthe Property Plant and Equipment at reasonable intervals. According to the information andexplanations given to us no material discrepancies were noticed on such verification.

(c) according to the information and explanations given by the management the titledeeds of immovable properties included in property plant and equipment are held in thename of the company.

(ii) (a) As explained to us the inventories of

finished goods semi-finished goods stores spare parts and raw materials werephysically verified at regular intervals by the Management.

(b) In our opinion and according to the information and explanation given to us

the procedures 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 us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made.

(v) the company has not accepted any deposits from the public during the year.According the explanation given to us the securities lying with the company have beenreceived from the vendors/customers/ employees in the course of trade transactions and areexempt as per the provisions of Acceptance of Deposit Rules.

(vi) We have broadly reviewed the cost records maintained by the Company pursuant tothe Rules made by the Central Government under Section 148(1) of the Companies Act 2013and are of the opinion that prima facie the prescribed cost records have been made andmaintained. We have however not made a detailed examination of these records with a viewto determining whether they are accurate or complete.

(vii) In respect of Statutory Dues:

(a) according to the information and explanations given to us and on the basis of ourexamination of the records of the Company amounts

deducted/ accrued in the books of account in respect of undisputed statutory duesincluding provident fund income-tax sales tax value added tax Goods & ServicesTax duty of customs service tax cess and other material statutory dues have beenregularly deposited during the year by the Company with the appropriate authorities. Asexplained to us the Company did not have any dues on account of employees' stateinsurance and duty of excise. According to the information and explanations given to usno undisputed amounts payable in respect of provident fund income tax sales tax valueadded tax Goods & Services Tax duty of customs service tax cess and other materialstatutory dues were in arrears as at 31 March 2020 for a period of more than six monthsfrom the date they became payable.

(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:

Nature of Statute Nature of Dues Forum where Dispute is pending Period to which rellates Amount (Rs-In Lakhs)
Central Excise Act1944 Central Excise Punjab & Haryana High Court chandigarh. 1994-95 3.84
Custom Duty Custom Duty Commissioner (appeal) 2010-11 1.73
Custom Duty Custom Duty Commissioner (appeal) 2019-20 17.45

(viii) in our opinion and according to the information and explanations given to usthe 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 material fraud by the Company or on the Companyby its officers or employees has been noticed or reported during the course of our audit.

(xi) according to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

(xii) in our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) according to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the standalone Ind AS financial statements as requiredby the applicable accounting standards.

(xiv) according to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

(xv) according to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For Deepak Grover & Associates

Place : : V. Rupana Chartered Accountants
Date : 22-06-2020 Deepak Grover
Proprietor
M.No.505923
FRN:020678N
UDIN:20505923AAAADU9842

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