|BSE: 526807||Sector: Infrastructure|
|NSE: SEAMECLTD||ISIN Code: INE497B01018|
|BSE 11:59 | 16 May||921.30||
|NSE 11:44 | 16 May||920.30||
|Mkt Cap.(Rs cr)||2,343|
|Mkt Cap.(Rs cr)||2342.87|
SEAMEC Ltd. (SEAMECLTD) - Auditors Report
Company auditors report
To the Members of Seamec Limited
REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS
We have audited the accompanying standalone financial statements ofSeamec Limited ("the company") which comprise the Standalone Balance Sheet asat March 31 2021 and the Standalone Statement of Profit and Loss (including OtherComprehensive Income) the Standalone Statement of Cash Flows and the Standalone Statementof Changes in Equity for the year then ended and notes to the standalone financialstatements including a summary of significant accounting policies and other explanatoryinformation (hereinafter referred to as "the standalone financial statements").
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under Section 1 33 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2021and its profit (including other comprehensive income) changes in equity and its cashflows for the year ended on that date.
2. BASIS For opinion
We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing (SAs) specified under section 143(10) of theAct. Our responsibilities under those SAs are further described in the Auditor'sResponsibility for the Audit of the Standalone Financial Statements section of our report.We are independent of the Company in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India (ICAI) together with the ethical requirementsthat are relevant to our audit of the standalone financial statements under the provisionsof the Act and the Rules made thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the ICAI's Code of Ethics. Webelieve that the audit evidence obtained by us is sufficient and appropriate to provide abasis for our audit opinion on the standalone financial statements.
3. emphasis of matter
We draw attention to Note 57 to the accompanying standalone financialstatements which states that the impact of COVID-19 pandemic situation remained moderatelysignificant during the year and explains the uncertainties and the management's assessmentof the financial impact due to the COVID-19 pandemic situation for which a definitiveassessment of the impact in the subsequent period is highly dependent upon circumstancesas they evolve.
Our opinion is not modified in respect of this matter.
4. KEY Audit MATTERS
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent year. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.
5. INFORMATION OTHER THAN THE STANDALONE FINANCIAL STATEMENTS ANDAUDITOR'S REPORT THEREON
The Company's Management and Board of Directors are responsible for theother information. The other information comprises the information included in Company'sAnnual Report but does not include the standalone financial statements and our auditor'sreport thereon.
Our opinion on the standalone financial statements does not cover theother information and we do not and will not express any form of assurance conclusionthereon.
In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated. If based on the work performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to state in this regard.
6. RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE ForThe STANDALONE FINANCIAL STATEMENTS
The Company's Management and Board of Directors are responsible for thematters stated in section 134(5) of the Act with respect to the preparation of thesestandalone financial statements that give a true and fair view of the state of affairsprofit (including other comprehensive income) changes in equity and cash flows of theCompany in accordance with the Ind AS and other accounting principles generally acceptedin India. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
In preparing the standalone financial statements the Management andBoard of Directors are responsible for assessing the Company's ability to continue as agoing concern disclosing as applicable matters related to going concern and using thegoing concern basis of accounting unless management either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Company'sfinancial reporting process.
7. auditors' responsibility for the audit of the STANDALONEFINANCIAL STATEMENTS
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 auditors' 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.
As part of an audit in accordance with SAs we exercise professionaljudgment 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 financial control relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls with referenceto standalone financial statements in place and the operating effectiveness of suchcontrols.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures in the standalone financialstatements made by the Management and Board of Directors.
Conclude on the appropriateness of Management and Board ofDirectors use of the going concern basis of accounting and based on the audit evidenceobtained whether a material uncertainty exists related to events or conditions that maycast significant doubt on the Company's ability to continue as a going concern. If weconclude that a material uncertainty exists we are required to draw attention in ourauditor's report to the related disclosures in the standalone financial statements or ifsuch disclosures are inadequate to modify our opinion. Our conclusions are based on theaudit evidence obtained up to the date of our auditors' 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.
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.
We also provide those charged with governance with a statement that wehave 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.
From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditors' report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.
8. REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
a. As required by the Companies (Auditors' Report) Order 2016("the Order") issued by the Central Government of India in terms of Section143(11) of the Companies Act 2013 we give in the "Annexure A" a statement onthe matters specified in paragraphs 3 and 4 of the Order to the extent applicable.
b. As required by Section 143(3) of the Act we report that:
i. 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.
ii. 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.
iii. The Standalone Balance Sheet the Standalone Statement of Profitand Loss including Other Comprehensive Income the Standalone Statement of Changes inEquity and the Standalone Cash Flow Statement dealt with by this Report are in agreementwith the books of account.
iv. In our opinion the aforesaid standalone financial statementscomply with the Indian Accounting Standards specified under Section 1 33 of the Act readwith the Companies (Indian Accounting Standards) Rules 2015 as amended.
v. 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 are disqualified as on March 31 2021 from being appointed as a director interms of Section 164 (2) of the Act.
vi. With respect to the adequacy of the internal financial controlswith reference to standalone financial statements of the Company and the operatingeffectiveness of such controls refer to our separate Report in "Annexure B".
vii. With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 asamended in our opinion and to the best of our information and according to theexplanations given to us:
a. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone financial statements - Refer Note 39 of standalonefinancial statements;
b. The company did not have any long-term contracts includingderivative contract for which there were any material foreseeable losses;
c. With respect to the other matters to be included in Auditor's Reportin accordance with the requirements of section 197 (16) of the Act as amended in ouropinion and to the best of our informations and according to the explanations given to usthe remuneration paid by the Company to its directors during the year is in accordancewith the provisions of the Section 197 of the Act.
Annexure A to the Independent Auditor's Report of even date
The annexure referred to in independent Auditors' Report to themember of the Seaemc Limited ("the Company") on the standalone financialstatements for the year ended March 312021 we report that;
(i) fixed ASSETS
a) The Company has maintained proper records showing full particularsincluding quantitative details and situtation of its fixed assets.
b) The Company has a regular program of physical verification to coverall the items of fixed assets in a phased manner which in our opinion is reasonablehaving regard to the size of the Company and the nature of its assets. Pursuant to theprogram all material fixed assets were physically verified by the management during theyear. According to the information and explanations given to us no material discrepancieswere noticed on such verification.
c) According to the informations and explanations given to us there isno Immovable Property in the books of accounts of the Company. Thus the provision ofparagraph 3(i)(c) of the Order is not applicable to the Company
The management has conducted physical verification of inventory atreasonable intervals during the year and no material discrepancies were noticed on suchphysical verification.
(iii) loans given
According to the information and explanations given to us the Companyhas not granted any Secured or Unsecured loans to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under Section 189 of theCompanies Act 2013. Accordingly reporting under paragraph 3 (iii) (a) (b) and (c) ofthe order is not applicable to the Company.
(iV) compliance of sec. 185 & 186
According to the information and explanations given to us the Companyhas not given loans or guarantees to directors or other persons in which a director isinterested or provide security in connection with a loan and as such section 185 of theCompanies Act is not applicable. In our opinion and according to the information andexplanation given to us and on the basis of our examination of the records of the Companythe Company has made investments in securities and given guarantee on behalf of itssubsidiary which is in compliance with the provisions of Section 186 of the CompaniesAct 2013.
(V) public deposit
According to the information and explanations given to us the Companyhas not accepted any deposits from the public to which the provisions of section 73 to 76or any other relevant provisions of the Act and the Rules framed there under apply.Accordingly the provision of paragraph 3(v) of the Order is not applicable to theCompany.
(Vi) cost records
To the best of our knowledge and according to the information andexplanation provided to us the Central Government has not prescribed the maintenance ofcost records under sub section (1) of section 148 of the Companies Act. Accordingly theprovision of paragraph 3(vi) of the Order is not applicable to the Company.
a) According to the information and explanations given to us and on thebasis of our examination of records of the Company the Company has generally been regularin depositing its undisputed statutory dues including Provident Fund Employees Stateinsurance Income-tax Goods and Service tax Custom duty Cess and other releventmaterial statutory dues. There are no undisputed dues payable outstanding as on March 312021 for a period of more than six months from the date they became payable.
b) According to the information and explanations given to us there areno disputed dues which has not been deposited except Service Tax as mentioned below;
(viii) According to the information and explanations given to us andbased on the records of the company examined by us the company has not defaulted inrepayment of loans to banks. The Company did not have any loan from financial institutionsor government and also did not have any debentures outstanding during the year.
(ix) In our opinion according to the information and explanationsgiven to us the Company didn't raise any money by way of initial public offer or furtherpublic offer or term loans during the year. Accordingly reporting under paragraph 3(ix)of the Order is not applicable to the Company.
(x) During the course of our examination of the books and records ofthe Company carried out in accordance with the generally accepted auditing practices inIndia and according to the explanation and information given to us no fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.
(xi) According to information & explanations given to us and basedon our examination of the records of the Company the Company has paid managerialremuneration in accordance with the requisite approvals mandated by the provisions of theSection 197 read with Schedule V to the Companies Act 2013.
(xii) In our opinion and according to the information and explanationsgiven to us the Company is not a nidhi company. Accordingly reporting under paragraph3(xii) of the Order is not applicable to the Company.
(xiii) As per the information and explanations given to us and on thebasis of our examination of the records of the Company transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable and thedetails have been disclosed in the accompanying standalone financial statements asrequired by the applicable accounting standards.
(xiv) According to the information and explanations given to us thecompany has not made any preferential allotment or private placement of shares or fully orpartly convertible debentures during the year under review. Accordingly reporting underparagraph 3(xiv) of the Order is not applicable to the Company.
(xv) As per the information and explanations given to us and based onour examination of the records during the year the Company has not entered into anynon-cash transaction with directors or persons connected with him. Accordingly reportingunder paragraph 3(xv) of the Order is not applicable to the Company.
(xvi) As per the information and explanations given by the managementcompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934. Accordingly reporting under paragraph 3(xvi) of the Order is not applicable tothe Company.
Annexure B to the Independent Auditor's Report of even date
Report on the Internal Financial Controls with reference to standalonefinancial statements under Clause (i) of Subsection 3 of Section 143 of the companies Act2013 ("the Act")
We have audited the internal financial controls with reference tostandalone financial statement of Seamec Limited ("the Company") as of March 312021 in conjunction with our audit of the standalone financial statements of the Companyfor the year ended on that date.
In our opinion to the best of our information and according to theexplanations given to us the Company has in all material respects an adequate internalfinancial controls system with reference to standalone financial statements and suchinternal financial controls with reference to standalone financial statement wereoperating effectively as at March 31 2021 based on the internal control withreference to standalone financial statements criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India (the 'Guidance Note').
MANAGEMENT'S RESPONSIBILITY For INTERNAL financial controls
The Company's Management and the Board of Directors are responsible forestablishing and maintaining internal financial controls based on "the internalcontrol with reference to the standalone financial statements criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote. These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding 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.
Our responsibility is to express an opinion on the Company's internalfinancial controls with reference to standalone financial statements based on our audit.We conducted our audit in accordance with the Guidance Note and the Standards on Auditingprescribed under section 143(10) of the Companies Act 201 3 to the extent applicable toan audit of internal financial controls with reference to standalone financial statements.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls with reference to standalone financial statements were established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system with reference to standalonefinancial statements and their operating effectiveness. Our audit of internal financialcontrols with reference to standalone financial statements included obtaining anunderstanding of internal financial controls with reference to standalone financialstatements assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material misstatement of the standalone financial statements whether due tofraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system with reference to standalone financial statements.
MEANING OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE To STANDALONEFINANCIAL STATEMENTS
A company's internal financial control with reference to standalonefinancial statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of standalone financial statementsfor external purposes in accordance with generally accepted accounting principles. Acompany's internal financial control with reference to standalone financial statementsincludes those policies and procedures that (1) pertain to the maintenance of recordsthat 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 standalone 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 standalone financial statements.
INHERENT LIMITATIONS of INTERNAL FINANCIAL CONTROLS WITH REFERENCE ToSTANDALONE FINANCIAL STATEMENTS
Because of the inherent limitations of internal financial controls withreference to standalone financial statements including the possibility of collusion orimproper management override of controls material misstatements due to error or fraud mayoccur and not be detected. Also projections of any evaluation of the internal financialcontrols with reference to standalone financial statements to future periods are subjectto the risk that the internal financial control with reference to standalone financialstatements may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.