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Savera Industries Ltd.

BSE: 512634 Sector: Services
NSE: SAVERA ISIN Code: INE104E01014
BSE 00:00 | 15 Feb 59.25 0
(0.00%)
OPEN

64.90

HIGH

64.90

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57.00

NSE 05:30 | 01 Jan Savera Industries Ltd
OPEN 64.90
PREVIOUS CLOSE 59.25
VOLUME 2009
52-Week high 90.00
52-Week low 53.30
P/E 10.03
Mkt Cap.(Rs cr) 71
Buy Price 59.55
Buy Qty 98.00
Sell Price 61.85
Sell Qty 1.00
OPEN 64.90
CLOSE 59.25
VOLUME 2009
52-Week high 90.00
52-Week low 53.30
P/E 10.03
Mkt Cap.(Rs cr) 71
Buy Price 59.55
Buy Qty 98.00
Sell Price 61.85
Sell Qty 1.00

Savera Industries Ltd. (SAVERA) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

SAVERA INDUSTRIES LIMITED

Report on the Financial Statements

We have audited the accompanying Ind AS financial statements of M/s. Savera IndustriesLimited (the "Company") which comprise the Balance Sheet as at 31st March2018 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Cash Flows and the Statement of Changes in Equity for the year then endedand a summary of the Significant Accounting Policies and oth er 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 Ind AS financial statements that give a true and fair view of the financialposition financial performance (including other comprehensive income) cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) specified underSection 133 of the Act read with Companies (Indian Accounting Standards) Rules 2015 (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 Ind AS 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 Ind AS financial statements basedon our audit.

In conducting our audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made there under and the Orderissued under section 143(11) of the Act.

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 andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS 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 31stMarch 2018 and its Profit (financial performance including Other ComprehensiveIncome) its cash flows and the changes in equity 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 ("the Order")issued by the Central Government of India in terms of sub-section(11) of section 143 ofthe Companies Act 2013 we give in the "Annexure A" a statement on the mattersspecified in the paragraphs 3 and 4 of the Order to the extent applicable.

2. As required by Section 143 (3) of the Act based on our audit 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 and the Statement of Profit and Loss the Cash Flow Statement andthe Statement of Changes in Equity dealt with by this Report are in agreement with thebooks of account.

d. In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with relevant rulesissued there under.

e. On the basis of the written representations received from the Directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 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 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 controls overfinancial reporting.

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 as amended in our opinionand to the best of our information and according to explanations given to us: i. TheCompany has disclosed the impact of pending litigations on its financial position in itsInd AS financial statements - Refer Note No. 37B to the Ind AS financial statements.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses; iii. There has been no delay intransferring amounts required to be transferred to the Investor Education and ProtectionFund by the Company.

For S. Venkatram & Co. LLP
Chartered Accountants
(FRN : 004656S/S200095)
S. Sundarraman
Place : Chennai Partner
Date : 30th May 2018 M.No.201028

ANNEXURE ‘A' TO INDEPENDENT AUDITORS' REPORT

(referred to in paragraph 1 under the heading 'Report on Other Legal & RegulatoryRequirements' of our report of even date to the Ind AS financial statements of the Companyfor the year ended 31st March 2018)

As per the books and records produced before us and as per the information andexplanations given to us and based on such audit checks that we considered necessary andappropriate we confirm that:

I) 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 according to information and explanations given to us and the records producedto us the title deeds of immovable properties are held in the name of the Company.

ii) In respect of Inventories:

a. The inventories have been physically verified during the year by the management. Inour opinion the frequency of verification is reasonable.

b. In our opinion the procedures of physical verification of inventories followed bythe management are reasonable and adequate in relation to the size of the Company and thenature of its business.

c. The Company has maintained proper records of inventories. No material discrepancieswere noticed on physical verification.

iii) The Company has not granted any loan secured or unsecured to companies firms orother parties covered in the register maintained under section 189 of the Companies Act2013. Therefore the provisions of clause (iii) of paragraph 3 of CARO 2016 are notapplicable to the Company.

iv) The Company has complied with the provisions of sections 185 and 186 of CompaniesAct 2013 in respect of grant of loans making investments and providing guarantees andsecurities as applicable.

v) The Company has not accepted any deposit from the public. Therefore the provisionsof Clause (v) of paragraph 3 of the CARO 2016 are not applicable to the Company.

vi) 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.

vii) In respect of statutory dues:

a. The Company has been generally regular in depositing undisputed statutory duesincluding Provident Fund Employees' State Insurance Income Tax Sales Tax Service TaxGoods and Service Tax Duty of Customs Duty of Excise Value Added Tax cess and anyother statutory dues with the appropriate authorities during the year.

b. No undisputed amounts payable in respect of Provident Fund Income Tax Sales TaxWealth Tax Service Tax Goods and Service Tax Customs Duty Value Added Tax Cess andother material statutory dues were in arrears as at 31 March 2018 for a period of morethan six months from the date they became payable except TDS dues as per TRACES amountingto Rs. 22.73 lakhs (refer note 37(b) to the accounts) viii. The Company has not made anydefault in repayment of loans or borrowings from any financial institution banksgovernment or debenture holders during the year.

ix. The Company has not raised any monies by way of Initial Public offer or furtherpublic offer (including debt instruments) or term loans and hence reporting under clause(ix) of paragraph 3 of the CARO 2016 is not applicable to the company.

x. As per the information given by the Company no material fraud by the Company or anyfraud on the Company by its officers or employees has been noticed or reported during thecourse of our audit.

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 Company. Hence clause (xii) of paragraph 3 of the CARO

2016 is not applicable.

xiii.The Company has complied with provisions of section 177 and section 188 of theCompanies Act 2013 and disclosed all transaction with related parties in the Ind ASfinancial statements as required by the applicable accounting standards.

xiv.The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during year under review. Hence clause (xiv) ofparagraph 3 of the CARO 2016 is not applicable.

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

xvi.The Company is not a Non Banking Finance Company hence the Company is not requiredto register under section 45-IA of Reserve Bank of India Act 1934.

For S. Venkatram & Co. LLP
Chartered Accountants
(FRN : 004656S/S200095)
S. Sundarraman
Place : Chennai
Partner
Date : 30th May 2018
M.No.201028

ANNEXURE ‘B' TO INDEPENDENT AUDITORS' REPORT

(referred to in paragraph 2 under the heading 'Report on Other Legal &

Regulatory Requirements' of our report of even date to the Ind AS financial statementsof the Company for the year ended 31st March 2018)

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

We have audited the internal financial controls over financial reporting of M/s. SaveraIndustries Limited ("the Company") as of March 31 2018 in conjunction with ouraudit of the Ind AS financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company 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. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India and the Standards on Auditing prescribed under Section 143(10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe 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 judgments including the assessment of the risks ofmaterial misstatement of the Ind AS financial statements whether due to fraud or error.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 controls systemover 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 Ind AS 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 the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of Ind AS financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorizations of management and directors of the company; and

3) 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 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 March 31 2018 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 S. Venkatram & Co. LLP
Chartered Accountants
(FRN : 004656S/S200095)
S. Sundarraman
Place : Chennai Partner
Date : 30th May 2018 M.No.201028