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Selan Explorations Technology Ltd.

BSE: 530075 Sector: Oil & Gas
NSE: SELAN ISIN Code: INE818A01017
BSE LIVE 10:06 | 18 Oct 191.10 3.15
(1.68%)
OPEN

186.60

HIGH

191.60

LOW

186.60

NSE 09:49 | 18 Oct 187.65 -0.05
(-0.03%)
OPEN

187.75

HIGH

187.75

LOW

185.60

OPEN 186.60
PREVIOUS CLOSE 187.95
VOLUME 8244
52-Week high 222.00
52-Week low 154.10
P/E 35.19
Mkt Cap.(Rs cr) 313
Buy Price 191.10
Buy Qty 50.00
Sell Price 191.75
Sell Qty 5.00
OPEN 186.60
CLOSE 187.95
VOLUME 8244
52-Week high 222.00
52-Week low 154.10
P/E 35.19
Mkt Cap.(Rs cr) 313
Buy Price 191.10
Buy Qty 50.00
Sell Price 191.75
Sell Qty 5.00

Selan Explorations Technology Ltd. (SELAN) - Auditors Report

Company auditors report

To the Members of Selan Exploration Technology Limited

Report on the Financial Statements

We have audited the accompanying financial statements of SELAN EXPLORATION TECHNOLOGYLIMITED ("the Company") which comprise the Balance Sheet as at 31 March 2017the Statement of Profit & Loss and the Cash Flow Statement for the year then endedand a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 (the "Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the Accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 (asamended). This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of 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 ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

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 misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures 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 the accounting principles used and the reasonableness ofthe accounting estimates made by the company’s Directors as well as evaluating theoverall presentation of the financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31March 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 Government of India in terms of sub-section (11) of section 143of the Act and on the basis of such checks of the books and records of the Company as weconsidered appropriate and according to the information and explanations given to us wegive in "Annexure A" a statement on the matters specified in the paragraphs 3and 4 of the said Order.

2 As required by section 143(3) of the Act we report that:

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit;

b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;

c) The Balance Sheet the Statement of Profit and Loss and the Cash flow statementdealt with by this report are in agreement with the books of account;

d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e) On the basis of written representations received from the directors as on 31 March2017 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31 March 2017 from being appointed as a director in terms of section 164(2) of theAct.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company’s internal financial controlsover financial reporting.

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 knowledge and information and according to the explanations givento us and such checks as we considered necessary:

i. The Company does not have any pending litigation which would impact its financialposition.

ii. There no long-term contracts including derivative contracts requiring provisionfor material foreseeable losses under the applicable law or accounting standards. iii.There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company

iv. The Company has provided requisite disclosure in the financial statement as toholdings as well as dealings in specified bank note notes during the period 08 November2016 to 30 December 2016. Based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with books of accountmaintained by the Company and as produced to us by the Management – Refer note no.32.

For V. Sankar Aiyar & Co.
Chartered Accountants
(Firm’s Regn. No. 109208W)
Place : New Delhi (M. S. Balachandran)
Date : 20 May 2017 Partner
(Membership No. 024282)

ANNEXURE-A REFERRED TO IN THE AUDITORS’ REPORT TO THE MEMBERS OF SELAN EXPLORATIONTECHNOLOGY LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2017.

(i) (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Management has physically verified the assets during the year and the frequencyof which in our opinion is reasonable. No material discrepancies were noticed on suchverification.

(c) The Company does not own any land and hence clause 3(i)(c) is not applicable to theCompany.

(ii) The inventory of the Company consisting of crude oil spares and consumables havebeen physically verified once during the year. In our opinion the frequency ofverification is reasonable. No material discrepancies were noticed on such physicalverification.

(iii) The Company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013. Therefore the provisions of clause 3(iii)(a)(b)&(c) of the Order are not applicable.

(iv) The Company has not given any loan or provided any guarantee or security toparties covered under section 185 of the Companies Act 2013. The Company has not givenany loans or made any investments or provided guarantees and security. Hence clause 3(iv)is not applicable to the Company.

(v) The Company has not accepted deposits during the year from the public within theprovisions of section 73 or any other provisions of the Companies Act 2013 and the Rulesframed thereunder.

(vi) We have broadly reviewed the books of accounts maintained by the Company pursuantto rules made under sub-section (1) of section 148 of the Act and are of the opinion thatprima facie the prescribed accounts and records have been maintained. We have nothowever made a detailed examination of the records with a view to determine whether theyare accurate and complete.

(vii) (a) According to the records of the Company the Company has been generallyregular in depositing undisputed statutory dues including provident fund employees’state insurance income-tax sales-tax service tax duty of customs duty of excisevalue added tax cess and any other statutory dues with the appropriate authorities. Therewere no arrears of undisputed statutory dues as at 31 March 2017 which were outstandingfor a period of more than six months from the date they became payable.

(b) According to the records of the Company there are no disputed dues relating toincome tax sales tax service tax or duty of excise or value added tax or cess whichhave remained unpaid as on 31 March 2017.

(viii) The Company had not borrowed any funds during the year and hence clause 3(viii)is not applicable to the Company.

(ix) The Company had not borrowed or raised funds through public offer (including debtinstruments) and hence clause 3(ix) is not applicable to the Company.

(x) Based on the audit procedures performed and representation obtained from themanagement we report that no case of material fraud on or by the Company has been noticedor reported during the year under audit.

(xi) The managerial remuneration has been paid or provided 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 Company. Therefore the provisionsof clause 3(xii) of the Order are not applicable.

(xiii) In our opinion and according to the information and explanations given to usall the transactions with the related parties are in compliance with section 177 and 188of the Companies Act 2013 to the extent applicable and the details have been disclosed inthe Financial Statements as required by the applicable accounting standards.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures. Therefore the provisionsof clause 3(xiv) of the Order are not applicable.

(xv) According to the information and explanations given to us and the representationobtained from the management the Company has not entered into any non-cash transactionswith directors or persons connected with him. Therefore the provisions of clause 3(xv) ofthe Order are not applicable.

(xvi) In our opinion and according to the information and explanations given to us theCompany is not required to be registered under section 45-I of the Reserve Bank of IndiaAct 1934.

For V. Sankar Aiyar & Co.
Chartered Accountants
(Firm’s Regn. No. 109208W)
(M. S. Balachandran)
Place : New Delhi Partner
Date : 20 May 2017 (Membership No. 024282)

ANNEXURE-B REFERRED TO IN THE AUDITORS’ REPORT TO THE MEMBERS OF SELAN EXPLORATIONTECHNOLOGY LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2017.

We have audited the internal financial controls over financial reporting of the Companyas of 31 March 2017 in conjunction with our audit of the financial statements of theCompany for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India(ICAI). 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’spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

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 Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand issued by ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects. Our auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor’s judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company’s internal financial controls system over financialreporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A Company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the Company are being made only in accordance with 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

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 the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note issued by theICAI.

For V. Sankar Aiyar & Co.
Chartered Accountants
(Firm’s Regn. No. 109208W)
(M. S. Balachandran)
Place : New Delhi Partner
Date : 20 May 2017 (Membership No. 024282)