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Seya Industries Ltd.

BSE: 524324 Sector: Industrials
NSE: SEYAIND ISIN Code: INE573R01012
BSE 00:00 | 17 May 30.35 0.75
(2.53%)
OPEN

28.40

HIGH

30.50

LOW

28.40

NSE 00:00 | 17 May 29.95 0.55
(1.87%)
OPEN

28.50

HIGH

30.25

LOW

28.50

OPEN 28.40
PREVIOUS CLOSE 29.60
VOLUME 1617
52-Week high 85.25
52-Week low 28.30
P/E 36.57
Mkt Cap.(Rs cr) 81
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 28.40
CLOSE 29.60
VOLUME 1617
52-Week high 85.25
52-Week low 28.30
P/E 36.57
Mkt Cap.(Rs cr) 81
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Seya Industries Ltd. (SEYAIND) - Auditors Report

Company auditors report

To the Members of

SEYA INDUSTRIES LTD

Report on the Standalone Financial Statements Opinion

We have audited the accompanying standalone Financial Statements of SEYA INDUSTRIES LTD(‘The Company') which comprise the

Balance Sheet as at March 31 2020 the Statement of Profit

Loss (including other Comprehensive income) the statement of Changes in Equity and theCash Flow Statement for the year then ended and a summary ofthesignificantaccountingpolicies and other explanatory information (hereinafter referred to as "StandaloneFinancial 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 ("the Act") in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at March 31 2020 and profit and othercomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis of Opinion

We conducted our audit in accordance with the Standards on Auditing

(SAs) specified under Section 143(10) of the Act. Our responsibilities under those SAsare further described in the Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thestandalone financial statements under the provisions of the Act and the Rules thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient opinion on the Standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the 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 aseparate opinion on these matters. Due to COVID-19 lockdown throughout the country sincelast week of March 2020 we have adopted alternative methodologies solutions in performingour audit procedures. We have determined the matters described below to the Key AuditMatters to be communicated in the Report.

The Key Audit Matter How the matter was addressed in our audit
Accuracy of recognition measurement presentation and disclosures of revenues and other related balances in view of adoption of Ind Principal Audit Procedure
AS 115 "Revenue from Contracts with Customers" (new revenue accounting standard) We assessed the Company's process to identify the impact of adoption of the new revenue accounting standard. Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing as follows:
• Evaluated the design of internal controls relating to implementation of the new revenue accounting standard.
• Selected a sample of continuing and new contracts and tested the operating effectiveness of the internal control relating to identification of the distinct performance obligations and determination of transaction price. We carried out a combination of procedures involving enquiry and observation re-performance and inspection of evidence in respect of operation of these controls.
• Tested the relevant information technology systems' access and change management controls relating to contracts and related information used in recording and disclosing revenue in accordance with the new revenue accounting standard.

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 Board'sReport including Annexures to Board's Report Management Discussion and Analysis Reporton Corporate Governance Business Responsibility Report but does not include theStandalone financial statements and our auditor's report thereon.

Our opinion on the Standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the Standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard.

Management 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 preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income cash flow and changes in equity of the

Company in accordance with the Accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind

AS) specified under Section 133 of the Act read with relevant rules thereunder. 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 judgements 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 statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Company's financialreporting process

Auditor's Responsibility 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 scepticism 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 appropriate to provide a basis for ouropinion The risk of not detecting a material misstatement resulting from fraud is higherthan for one resulting from error as fraud may involve collusion forgery intentionalomissions 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 reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions thatmaycastsignificantdoubt 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 standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statementsmaybeinfluenced.Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effectofany identified misstatements in the standalone financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findingsincludinganysignificantdeficiencies 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 auditors' 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 the Companies (Auditors' Report) Order 2016 ("theOrder") issued by the Central Government of India in sufficientand terms ofsub-section (11) of Section 143 of the Act and on the basis of such checks of the booksand records of the

Company as we considered appropriate and according to the information and explanationsgiven to us we give in the "Annexure A" a statement on the matters specifiedin paragraph 3 and 4 of the Order to the extent applicable.

2. As required by Section 143(3) of the Act we report that: a. We havesought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit; b. In ouropinion proper books of accounts as required by law have been kept by the Company so faras it appears from our examination of those books. c. TheBalanceSheet Statement ofProfit & Loss the Cash Flow Statement and statement of Changes in Equity dealt withby this Report are in agreement with the books of account. d. In our opinion theaforesaid standalone financial statements comply with the Indian Accounting Standardsprescribed under Section 133 of the Act e. On the basis of written representationsreceived from the Directors as on March 31 2020 taken on record by the Board ofDirectors none of the Directors are disqualified as on March 31 2020 from beingappointed as a director in terms of Section 164 (2) of the Act.

f. With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure B".

3. 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 belief and according to the information andexplanations given to us: a. The Company has disclosed the impact of pendinglitigations as at March 31 2020 on its financial position in its Standalone FinancialStatements. b. The Company did not have any long-term contracts includingderivatives contracts; as such the question of commenting on any material foreseeablelosses thereon does not arise. c. There has not been any occasion in case of the

Company during the year under report to transfer any sum to the investor Education andprotection Fund hence the question of delay in transferring such sums does not arise. d.The disclosure in the Standalone Financial Statements regarding holding as well as dealingin specified bank notes during the period from November 08 2016 to December 30 2016 havenot been made in these

Financial Statements since they do not pertain to the Financial Year ended March 312020

4. With respect to the matter to be included in the Auditor's

Report under Section 197(16) of the Act:

In our opinion and according to the information and explanations given to us theremuneration policy by the Company to its directors during the current year is inaccordance with the provisions of Section 197 of the Act.

The remuneration paid to any director is not in the excess of the limit laid down underSection 197 of the Act. The Ministry of Corporate Affairs has not prescribed other detailsunder Section 197(16) of the Act which are required to be commented upon by us.

For ANIL CHAUHAN & ASSOCIATES
Chartered Accountants
Firm Registration No.: 0140786W
Anil Chauhan
Proprietor
Membership No. 166286
Mumbai July 31 2020
UDIN: 20166286AAAAAC3914

"ANNEXURE A" TO INDEPENDENT AUDITOR'S REPORT

[Referred to in paragraph 1 under ‘Report on other Legal and RegulatoryRequirements' section of our report of even date] i. Property Plant and Equipment a.The Company has maintained proper records showing particulars pertaining to propertyplant and equipment; b. The Company has a program of physical verification of itsproperty plant and equipment by which all property plant and equipment are verified in aphased manner over a period of Three years which in our opinion this periodicity ofphysical verification is reasonable having regard to the size of the Company and nature ofits property plant and equipment. Pursuant to the program certain items of propertyplant and equipment were physically verified by the Management during the year and nomaterial discrepancies were noticed on such verification. c. According to the informationand explanations given to us and the records examined by us the title deeds of immovableproperties are held in the name of the Company. ii. Inventories a. The inventoriesexcept goods-in-transit were physically verified at reasonable intervals by themanagement during the year and no material discrepancies were noticed on such physicalverification

iii. Loans and Advances

According to information and explanations given to us the Company has not granted anyloans secured or unsecured to companies firms limited liability partnerships or otherparties covered in the register maintained under Section 189 of the Act. Therefore theprovisions of Clause 3(iii)(a) (b) and (c) of the order are not applicable to the Company

iv. Loans Investments and Guarantee

The Company has not granted any loans made any investments given any guarantees andprovided any security pursuant to the provisions of Section 185 & Section 186 of the

Act. v. Deposits

According to the information and explanations given to us the Company has not acceptedany deposits from the public as per the directives issued by the Reserve Bank of India andthe provisions of Sections 73 to 76 or any other relevant provisions of the Act and therules framed thereunder.

Accordingly provisions of paragraph 3(v) of the Order are not applicable to theCompany. vi. Cost Records

The Company has maintained cost records under Sub-Section

1 of Section 148 of the Act. We have not carried out any detailed examination of suchrecords. vii. Statutory Dues a. According to information and explanation given tous and on the basis of our examination of the records of the Company amounts deducted /accrued in the books of account in respect of undisputed statutory dues have beengenerally regularly deposited during the year with the appropriate authorities. b.According to the information and explanations given to us there were no undisputedamounts payable in respect of Provident fund Investor Education and

Protection Fund Employees' State Insurance Income-tax Service tax CentralSales-tax Customs duty Excise duty Value Added Tax Cess and other undisputed statutorydues which were outstanding at the year end for a period of more than six months fromthe date they became payable or any extension granted due to Covid-19 pandemic. c. In ouropinion and according to the information and explanation given to us during the year noamount was pending to be transferred to Investor Education and Protection Fund.

In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of Loans or Borrowings to Financial Institutions/

Banks and dues to debenture holders. Attention is drawn to footnote no. 14(i) and 30.1of accompanying Financial Statements.

ix. Money Raised

The Company has not raised moneys by way of initial public offer or further publicoffer during the year. However on April 05 2019 the Company has issued and allotted1970540 Compulsory Convertible Preference Shares (CCPS) on private placement basis. SuchMoney raised by issuing CCPS was applied for the purpose for which it was obtained.

x. Frauds Noticed

According to the information and explanations given to us by the management we reportthat no fraud by the Company or on the Company by its officers and employees has beennoticed or reported during the year.

xi. Managerial Remuneration

In our opinion and according to the information and explanations given to us theCompany has paid / provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.

xii. Nidhi Company

In our opinion the Company is not a nidhi company. Therefore the provisions of clause3(xii) of the order are not applicable to the Company.

xiii. Compliance with Section 177 & 188 of the Act

In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the standalone financial statements etc. as requiredby the applicable Ind AS.

xiv. Preferential Allotment

According to the information and explanations given to us and based on our examinationof the records of the Company the Company has allotted and issued 1970540 Compulsory

Convertible Preference shares on private placement basis and provisions of Section 42of the Act have been duly complied with.

xv. Non-Cash Transactions

According to the information and explanations given to us during the year the Companyhas not entered into any non-cash transactions with its directors or persons connectedwith them and hence provisions of Section 192 of the Companies Act 2013 are notapplicable. Accordingly provisions of paragraph 3 (xv) of the Order are not applicable tothe Company.

xvi. Section 45-IA of the Reserve Bank of India Act 1934

The Company is not required to be registered under section

45-IA of the Reserve Bank of India Act 1934. Accordingly provisions of paragraph 3(xvi) of the Order are not applicable to the Company.

For ANIL CHAUHAN & ASSOCIATES
Chartered Accountants
Firm Registration No.: 0140786W
Anil Chauhan
Proprietor
Membership No. 166286
Mumbai July 31 2020
UDIN: 20166286AAAAAC3914

"ANNEXURE B" TO INDEPENDENT AUDITOR'S REPORT

[Referred to in paragraph 2(f) under ‘Report on other Legal and RegulatoryRequirements' section of our report of even date]

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 SeyaIndustries Limited (the "Company") as of March 31

2020 in conjunction with our audit of the standalone Ind AS financial statements of theCompany ncial reportingfor the year includesended on thosethat policiesdate. and

Management's Responsibility for Internal Financial Controls

The Company's management and the Board of Directors are responsible for establishingand maintaining internal financial controls 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 Over Financial Reporting issued by the Institute of CharteredAccountants of India (the "Guidance Note"). These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to Company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe

Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note and the Standards on Auditing issued by ICAI and deemed to beprescribed under Section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects. as at Our audit involves performing procedures to obtain audit evidenceabout the adequacy of the internal financial controls system over financial reporting andtheir operating effectiveness. Our audit internal financial controls over financialreporting included obtaining an understanding of internal financial controls overfinancial reporting assessing the risk if a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.

We believe that the audit evidence we have obtained is and appropriate to provide abasis for our audit opinion on the

Company's internal financial controls system over financial reporting

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over proceduresthat (1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operatingeffectively March 31 2020 based on the internal control overfinancial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over

Financial Reporting issued by the Institute of Chartered Accountants of India.

For ANIL CHAUHAN & ASSOCIATES
Chartered Accountants
Firm Registration No.: 0140786W
Anil Chauhan
Proprietor
Membership No. 166286
Mumbai July 31 2020
UDIN: 20166286AAAAAC3914

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