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Savera Industries Ltd.

BSE: 512634 Sector: Services
NSE: SAVERA ISIN Code: INE104E01014
BSE 00:00 | 03 Dec 47.95 -0.80
(-1.64%)
OPEN

45.55

HIGH

49.20

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45.55

NSE 05:30 | 01 Jan Savera Industries Ltd
OPEN 45.55
PREVIOUS CLOSE 48.75
VOLUME 296
52-Week high 56.50
52-Week low 32.60
P/E
Mkt Cap.(Rs cr) 57
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 45.55
CLOSE 48.75
VOLUME 296
52-Week high 56.50
52-Week low 32.60
P/E
Mkt Cap.(Rs cr) 57
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 Audit of the Financial Statements

Opinion

1. We have audited the accompanying Financial Statements of M/s. Savera IndustriesLimited (the "Company") which comprise the Balance Sheet as at 31st March2020and the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and Statement of Cash Flows for the year then ended andnotes to the financial statements including a summary of the Significant AccountingPolicies and other explanatory information (herein after referred to as "financialstatements").

2. 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 theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at 31st March 2020 and its Profit changes inequityand its cash flows for the year ended on that date.

Basis for Opinion

3. We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.

Emphasis of Matter

4. We draw your attention to Note no. 43(viii) to the annual financial results whichdescribes the uncertainties due to outbreak of novel coronavirus (COVID-19) that hascaused significant business disruptions worldwide. The extent to which the COVID-19pandemic will have impact on the Company's financial performance is dependent on futuredevelopments which are highly uncertain.

5. Our opinion is not modified in respect of this matter.

Key Audit Matters

6. Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined the matters described below to be the key audit matters to be communicatedin our report.

Key Audit Matters How our audit addressed the key audit matter
Adoption of Ind AS 116 Leases To test the Company's implementation of the new leasing standard we performed the following procedures:
As described in Note 1(n) to the financial statements the Company adopted Ind AS 116 Leases (‘Ind AS 116') on 01st April 2019. • an evaluation of the completeness of the population of contracts meeting the definition of a lease under Ind AS 116
Ind AS 116 introduces a new lease accounting model wherein lessees are required to recognise a right-of-use (ROU) asset and a lease liability arising from a lease on the balance sheet. The lease liabilities are initially measured by discounting future lease payments during the lease term as per the contract/ arrangement. Adoption of the standard involves significant judgements and estimates including determination of the discount rates and the lease term. • testing the accuracy of the Company's computation of initial right-of-use assets and lease liabilities
• Examining the presentation and disclosures relating to Ind AS 116 including disclosures relating to transition in the standalone financial statements.
Additionally the standard mandates detailed disclosures in respect of transition

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

7. The Company's Management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company'sAnnual Report but does not include the financial statements and our auditor's reportthereon.

8. Our opinion on the financial statements does not cover the other information and wedo not express any form of assurance conclusion thereon.

9. In connection with our audit of the financial statements our responsibility is toread the other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated.

10. 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.

Responsibility of Management and Those Charged with Governance for Financial Statements

11. The Company's Management and Board of Directors are responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these financialstatements that give a true and fair view of the financial position financialperformance changes in equity and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation 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.

12. In preparing the financial statements the Management and Board of Directors areresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless the Board of Directors either intends to liquidate the Companyor to cease operations or has no realistic alternative but to do so.

13. Those Board of Directors are also responsible for overseeing the Company'sfinancial reporting process.

Auditor's Responsibility for the Audit of the Financial Statements

14. Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

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

a. Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

b. Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

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

d. 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 financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

e. Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

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

17. We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.

18. From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the financial statements ofthe current period and are therefore the key audit matters. We describe these matters inour auditor's report unless law or regulation precludes public disclosure about the matteror 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

19. As required by the Companies (Auditor's Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the ‘Annexure A' a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

20. 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 (including Other ComprehensiveIncome) the Statement of Changes in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the books of account.

d. In our opinion the aforesaid financial statements comply with the Indian AccountingStandards specified under Section 133 of the Act.

e. On the basis of the written representations received from the Directors as on 31stMarch 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 from being appointed as a director in terms of Section164(2) of the Act.

f. With respect to the adequacy of the internal financial controls with reference tothe financial statements of the Company and the operating effectiveness of such controlsrefer to our separate report in ‘Annexure B'.

g. With respect to other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in Note 43(i)(B) of its financial statements.

ii. The Company does not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.

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

21. With respect to other matters to be included in the Auditors Report in accordancewith the requirements of section 197(16) of the Act:

In our opinion and according to the information and explanations given to us theremuneration paid by the Company to its directors during the current year is in accordancewith the provisions of section 197 of the Act. The remuneration paid to any director isnot in excess of the limit laid down under section 197 of the Act. The Ministry ofCorporate Affairs has not prescribed other details under section 197(16) which arerequired to be commented upon by us.

For S. Venkatram& Co. LLP
Chartered Accountants
FRN : 004656S/S200095
Place : Chennai.
S.Sundarraman
Date : 29th June 2020
Partner
M.No : 201028
UDIN: 20201028AAAAET2224

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT

The Annexure referred to in our report to the members of Savera Industries Limited (the"Company") on the financial statements for the year ended 31st March2020 wereport based on the information and explanation produced/furnished to us by the Companyand based on such checks we considered appropriate and necessary that:

1. In respect of Fixed Assets:

a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b. There is a regular program of physical verification which in our opinion isreasonable having regard to the size of the Company and the nature of its assets. Nomaterial discrepancies were noticed on such verification.

c. With respect to immovable properties of acquired land and buildings that arefreehold the title deeds of immovable properties are held in the name of the Company.

2. Inventory has been physically verified by the Management during the year. In ouropinion the frequency of such verification is reasonable. The Company has maintainedproper records of inventory. The discrepancies noticed on verification between thephysical stocks and the book records were not material.

3. The Company has not granted any loan secured or unsecured to companies firms LLPor other parties covered in the register maintained under section 189 of the CompaniesAct 2013. Therefore the provisions of clause (iii) of paragraph 3 of CARO 2016 are notapplicable to the Company.

4. The Company has complied with the provisions of 186 of the Act in respect of makinginvestments. The Company has not given any loan or guarantee or provided any security toany party covered under Section 185 and 186 of the Act.

5. In our opinion and according to the information and explanations given to us theCompany has not accepted deposits as per the directives issued by the Reserve Bank ofIndia and the provisions of sections 73 to 76 or any other relevant provisions of theCompanies Act 2013 and the rules framed thereunder. Therefore the provisions of clause(v) of Paragraph 3 of the CARO 2016 are not applicable to the Company.

6. The maintenance of cost records has not been specified by the Central Governmentunder section 148(1) of the Companies Act 2013 for the business activities carried out bythe Company. Thus reporting under clause (vi) of paragraph 3 of the CARO 2016 is notapplicable to the Company.

7. In respect of Statutory Dues:

a. The Company has been regular in depositing undisputed statutory dues includingProvident Fund Employees' State Insurance Income Tax Duty of Customs Duty of ExciseValue Added Tax Goods and Services Tax and any other material statutory dues with theappropriate authorities during the year and there are no undisputed statutory dues as at31st March 2020 for a period of more than six months from the date they became payable.

b. There are no dues of Income-tax or Sales tax or Service tax or duty of Customs orduty of Excise or Value added tax or Goods and Services tax have not been deposited withthe appropriate authorities on account of any dispute except TDS outstanding as per TRACESamounting to Rs. 0.52 Lakhs (Refer Note No. 43(i)(B)(a) to the Accounts).

8. The Company has not defaulted in repayment of loans or borrowings to any financialinstitution or banks. The Company has not taken any loan from the Government or debentureholders.

9. The Company has not raised any monies by way of Initial Public offer or furtherpublic offer. The term loans have been applied by the Company for the purposes for whichthey were raised.

10. No material fraud by the Company or on the Company by its officers or employees hasbeen noticed or reported during the course of our audit.

11. 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.

12. As the Company has neither carried on the business of nidhi nor reported as a nidhicompany paragraph 3(xii) of the Order is not applicable.

13. The Company has complied with provisions of section 177 and section 188 of theCompanies Act 2013 and disclosed all transactions with related parties in the financialstatements as required by the applicable accounting standards.

14. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year.

15. The Company has not entered any non-cash transactions with its directors or personsconnected with them. Accordingly paragraph 3(xv) of the Order is not applicable.

16. As the Company is not carrying on the business of Non-Banking Finance the Companyis not required to be registered under section 45-IA of Reserve Bank of India Act 1934.

For S. Venkatram& Co. LLP
Chartered Accountants
FRN : 004656S/S200095
Place : Chennai.
S.Sundarraman
Date : 29th June 2020
Partner
M.No : 201028
UDIN: 20201028AAAAET2224

ANNEXURE ‘B' TO INDEPENDENT AUDITORS' REPORT

Report on the Internal Financial Controls with reference to aforesaid financialstatements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013("the Act")

(Referred to in paragraph (20)(f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

1. We have audited the internal financial controls with reference to financialstatements of M/s. Savera Industries Limited (the "Company") as of 31st March2020 in conjunction with our audit of the financial statements of the Company for the yearended on that date.

Management's Responsibility for Internal Financial Controls

2. The Company's management and the Board of Directors are responsible for establishingand maintaining internal financial controls based on the internal financial controls withreference to financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting ("the Guidance Note") issued by theInstitute of Chartered Accountants of India ("ICAI"). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

Auditor's Responsibility

3. Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements of the Company based on our audit. Weconducted our audit in accordance with the Guidance Note and the Standards on Auditingissued by ICAI and deemed to be prescribed under section 143(10) of the Act to the extentapplicable to an audit of internal financial controls with reference to financialstatement both applicable to an audit of Internal Financial Controls and both issued bythe ICAI. 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 with reference to financial statements wasestablished and maintained and if such controls operated effectively in all materialrespects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system with reference to financial statements and theiroperating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of internal financial controlswith reference to financial statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements 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 internal financial controls system withreference to financial statements of the Company.

Meaning of Internal Financial Controls with reference to financial statements

6. A company's internal financial controls with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlswith reference to financial statements include those policies and procedures that:

(a) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(b) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of the management and directors of the company; and

(c) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference to financialstatements

7. Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to future periods are subject to the risk that theinternal financial controls with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

8. In our opinion to the best of our information and according to the explanationsgiven to us the Company has in all material respects an adequate internal financialcontrols system with reference to financial statements and such internal financialcontrols with reference to financial statements were operating effectively as at31stMarch 2020 based on the internal controls with reference to financial statementscriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note issued by the Institute of Chartered Accountants ofIndia.

For S. Venkatram& Co. LLP
Chartered Accountants
FRN : 004656S/S200095
Place : Chennai.
Date : 29th June 2020 S.Sundarraman
Partner
M.No : 201028
UDIN: 20201028AAAAET2224

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