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Savera Industries Ltd.

BSE: 512634 Sector: Services
NSE: SAVERA ISIN Code: INE104E01014
BSE LIVE 15:40 | 18 Oct 73.55 0.55
(0.75%)
OPEN

70.00

HIGH

74.00

LOW

70.00

NSE 00:00 | 29 Jan Stock Is Not Traded.
OPEN 70.00
PREVIOUS CLOSE 73.00
VOLUME 1270
52-Week high 84.80
52-Week low 55.00
P/E 20.78
Mkt Cap.(Rs cr) 88
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 70.00
CLOSE 73.00
VOLUME 1270
52-Week high 84.80
52-Week low 55.00
P/E 20.78
Mkt Cap.(Rs cr) 88
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Savera Industries Ltd. (SAVERA) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

SAVERA INDUSTRIES LIMITED

Report on the standalone Financial Statements

1. We have audited the accompanying standalone financial Statements of SaveraIndustries Limited ("the Company") which comprise the Balance Sheet as at March31 2017 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the standalone financial statements

2. The Company’s Board of Directors is responsible for the matters stated inSection 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these standalone financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting 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 controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthese financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors’ Responsibility

3. 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 thereunder.

4. We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatements.

5. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by the Company’s Board of directors as well as evaluatingthe overall presentation of the financial statements.

6. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Opinion

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 Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2017 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("TheOrder") issued by the Central Government in terms of Section 143 (11) of the Act wegive in the annexure ‘A’ a statement on the matters specified in paragraphs 3& 4 of the Order to the extent applicable.

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 ouropinion proper books of account as required by law have been kept by the Company so faras it appears from our examination of those books. (c) The Balance Sheet the Statement ofProfit and Loss and the Cash flow Statement dealt with by this Report are in agreementwith 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.

(e) On the basis of the written representations received from the directors as on March31 2017 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a Director in terms of Section 164 (2) ofthe Act.

(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: a. TheCompany has disclosed the impact of pending litigations on its financial position in itsfinancial statements as of March 31 2017. b. Making provisions in its financialstatements by the company as required under the applicable law or accounting standardsfor material foreseeable losses if any on long-term contracts including derivativecontracts does not arise. c. There has been no delay in transferring amounts required tobe transferred to the Investor Education and Protection Fund by the Company. d. TheCompany had provided requisite disclosures in its financial statements as to holdings aswell as dealings in Specified Bank Notes during the period from 8th November 2016 to 30thDecember 2016 and these are in accordance with the books of accounts maintained by thecompany.

For D A Reddy & Co.
Chartered Accountants
(Firm Regn. No.005719S)
CA. D. Audisesha Reddy B.Com. FCA.
Place : Chennai Proprietor
Date : 30th May 2017 Membership No.019352

ANNEXURE ‘A’ TO INDEPENDENT AUDITORS’ REPORT

Audit Report containing the matters specified in Paragraph 3 & 4 of Companies(Auditors’ Report) Order 2017 i) In respect of the fixed assets of the company: a)The Company has maintained proper records showing full particulars including quantitativedetails and situation of fixed assets. b) The fixed assets were physically verified duringthe year by the Management at reasonable intervals which is satisfactory depending on thesize of the company. According to the information and explanations given to us nomaterial discrepancies were noticed on such verification. c) With respect to immovableproperties of acquired land and buildings that are freehold according to the informationand explanations given to us and the records examined by us and based on the examinationof the registered sale deed partnership deed partnership dissolution deeds encumbrancecertificates legal opinions provided to us we report that the title deeds of allimmovable properties are held in the name of the Company as on 31.3.2017. In respect oflease of immovable properties of land and buildings the lease agreements are in the nameof the company as lessee. ii) As per the information and explanation given to us theinventories were physically verified by the management at reasonable intervals and nodiscrepancies were noticed on such verification. iii) 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. iv) The Companyhas complied with the provisions of Sections 185 and 186 of the Companies Act 2013 inrespect of grant of loans making investments and providing guarantees and securities asapplicable. v) The Company has not accepted any deposit during the year and accordinglythe question of complying with Sections 73 and 76 of the Companies Act 2013 does notarise. vi) The provisions of clause 3 (vi) of the Order are not applicable to the companyas the company is not covered by the Companies (Cost Records and Audit) Rules 2014.

vii) The Company has been regular in depositing undisputed statutory dues includingProvident Fund Employees’ State Insurance Income-tax Sales tax Service TaxCustoms Duty Excise Duty Value Added Tax Cess and other material statutory duesapplicable to it with the appropriate authorities. viii)The Company has not defaulted inthe repayment of loans or borrowings to financial institutions banks and government. ix)The Company has not raised moneys by way of initial public offer or further public offer(including debt instruments). The company availed an additional CC Facility of Rs.50 lakhsfrom Central Bank of India during the year. x) No fraud by the Company and no materialfraud on the Company by its officers or employees has been noticed or reported during theyear. xi) The Company has paid / provided managerial remuneration in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V to theCompanies Act 2013. xii) The company is not a Nidhi / Chit Fund / Mutual Benefit /Society. xiii) The Company is in compliance with Sections 177 and 188 of the CompaniesAct 2013 where applicable for all transactions with the related parties and the detailsof related party transactions have been disclosed in the financial statements etc. asrequired by the applicable accounting standards. xiv) The Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year. xv) The Company has not entered into any non-cash transactionswith its directors or person connected with them. xvi) The Company is not required to beregistered under Section 45-IA of the Reserve Bank of India Act 1934.

For D A Reddy & Co.
Chartered Accountants
(Firm Regn. No.005719S)
CA. D.Audisesha Reddy B.Com. FCA.
Place : Chennai Proprietor
Date : 30th May 2017 Membership No.019352

ANNEXURE ‘B’ TO INDEPENDENT AUDITORS’ REPORT

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013("the Act")

1. We have audited the internal financial controls over financial reporting of SaveraIndustries Limited ("the Company") as of March 31 2017 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

2. The Company’s management 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 (‘ICAI’).These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to 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 of reliablefinancial information as required under the Companies Act 2013.

Auditors’ Responsibility

3. 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 were established andmaintained and if such controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the 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 judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

5. 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.

Meaning of Internal Financial Controls over Financial Reporting

6. 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany’s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

7. 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

8. 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 March 31 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.

For D A Reddy & Co.
Chartered Accountants
(Firm Regn. No.005719S)
CA. D.Audisesha Reddy B.Com. FCA.
Place : Chennai Proprietor
Date : 30th May 2017 Membership No.019352