Savita Oil Technologies Ltd.
|BSE: 524667||Sector: Industrials|
|NSE: SOTL||ISIN Code: INE035D01012|
|BSE 12:04 | 18 Jun||1268.15||
|NSE 11:54 | 18 Jun||1263.70||
|Mkt Cap.(Rs cr)||1,753|
|Mkt Cap.(Rs cr)||1752.58|
Savita Oil Technologies Ltd. (SOTL) - Auditors Report
Company auditors report
To the members of Savita oil technologies limited
Report on the standalone financial statements
We have audited the accompanying standalone financial statements of Savitaoil technologies limited ("the company") which comprise the balance sheetas at 31st march 2020 the statement of profit and loss the statement ofchanges in equity and the statement of cash flows for the year ended on that date and asummary of the significant accounting policies and other explanatory information(hereinafter referred to as "the standalone financial statements").
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the companies act 2013 ("the act") in the manner sorequired and give a true and fair view in conformity with the indian accounting standardsprescribed under section 133 of the act read with the companies (indian accountingstandards) rules 2015 as amended ("ind as") and other accounting principlesgenerally accepted in india of the state of affairs of the company as at 31stmarch 2020 the profit and total comprehensive income changes in equity and its cashflows for the year ended on that date.
Basis for opinion
We conducted our audit of the standalone financial statements inaccordance with the standards on auditing (sas) specified under section 143(10) of theact. Our responsibilities under those standards are further described in the auditor'sresponsibilities for the audit of the standalone financial statements section of ourreport. We are independent of the company in accordance with the code of ethics issued bythe institute of chartered accountants of india (icai) together with the ethical /independence requirements that are relevant to our audit of the standalone financialstatements under the provisions of the act and the rules made thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theicai's code of ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the standalone financialstatements.
Key audit matters
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.
Information other than the standalone financial statements andauditor's report thereon
The company's board of directors is responsible for the preparation ofthe other information. The other information comprises the information included in themanagement discussion and analysis board's report including annexures to board's reportbusiness responsibility report corporate governance and shareholder's information butdoes not include the standalone financial statements and our auditor's report thereon.
Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statementsour responsibility is to read the other information identified above when it becomesavailable and in doing so consider whether the other information is materiallyinconsistent with the standalone financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.
When we read other information if we conclude that there is a materialmisstatement therein we are required to communicate the matter to those charged withgovernance and describe actions applicable in the applicable laws and regulations.
Responsibilities of management and those charged with governance forthe standalone financial statements
The company's board of directors is responsible for the matters statedin section 134(5) of the act with respect to the preparation of these standalone financialstatements that give a true and fair view of the financial position financialperformance total comprehensive income changes in equity and cash flows of the companyin accordance with the ind as and other accounting principles generally accepted in india.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the act for safeguarding the assets of the company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
In preparing the standalone financial statements management isresponsible 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 management
Either intends to liquidate the company or to cease operations or hasno realistic alternative but to do so.
The board of directors are responsible for overseeing the company'sfinancial reporting process.
Auditor's responsibilities for the audit of the standalone financialstatements
Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with sas will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.As part of an audit in accordance with sas we exercise professional judgment and maintainprofessional skepticism throughout the audit. We also:
identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.
obtain an understanding of internal financial controls relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the act we are also responsible for expressingour opinion on whether the company has adequate internal financial controls system inplace and the operating effectiveness of such controls.
evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on the
Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor's report tothe related disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the company to cease to continue as a going concern.
evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (II) toevaluate the effect of any identified misstatements in the financial statements.
We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.
Report on other legal and regulatory requirements
I. 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 of the act we give in the annexure a" astatement on the matters specified in paragraphs 3 and 4 of the order to the extentapplicable.
II. As required by section 143 (3) of the act we report that:
A) we have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.
B) in our opinion proper books of account as required by law have beenkept by the company so far as it appears from our examination of those books.
C) the balance sheet the statement of profit and loss the cash flowstatement and statement of changes in equity dealt with by this report are in agreementwith the books of account.
D) in our opinion the aforesaid standalone ind as financial statementscomply with the ind as specified under section 133 of the act read with rule 3 of thecompanies (indian accounting standards) rules 2015.
E) on the basis of the written representations received from thedirectors as on 31st march 2020 taken on record by the board of directorsnone of the directors is disqualified as on 31st march 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 refer to our separate report in "annexure b"to this report.
G) with respect to the other matters to be included in the auditor'sreport in accordance with rule 11 of the companies (audit and auditors) rules 2014 inour opinion and to the best of our information and according to the explanations given tous:
I. The company has disclosed the impact of pending litigations on itsfinancial position in its standalone financial statements - refer note no. 27 to thestandalone financial statements.
II. The company has made provision as required under the applicablelaw or accounting standards for material foreseeable losses if any on long termcontracts including derivative contracts.
III. There has been no delay in transferring amounts required to betransferred to the investor education and protection fund by the company.
III. With respect to the other matter to be included in the auditorsreport in accordance with the requirement of sec 197 (16) of the act as amended in ouropinion according to information explanations given to us the remuneration paid by thecompany to its directors is within the limits prescribed under section 197 of the act andthe rules thereunder.
Annexure - a to the independent auditors' report on standalonefinancial statements of Savita oil technologies limited (referred to in paragraph i underthe heading report on other legal and regulatory requirements of our report ofeven date to the members of Savita oil technologies limited on the standalone financialstatements for the year ended 31st march 2020)
I. A) the company has maintained proper records
Showing full particulars including quantitative details and situationof property plant and equipment.
B) as informed to us the fixed assets having substantive value havebeen physically verified by the management during the period according to a phasedprogramme. In our opinion such programme is reasonable having regard to the size of thecompany and the nature of its assets. We have been further informed that no materialdiscrepancies were noticed on such verification by the management between the book recordsand physical verification.
C) according to the information and explanations given to us and basedon the records produced the title deeds of the immovable properties held by the companyare in the name of the company.
II. The inventories have been physically verified during the year bythe management. In our opinion the frequency of verification is reasonable. Thediscrepancies noticed on verification between the physical stocks and the book recordswere not material having regard to the size of the operations of the company and the samehave been properly dealt with.
III. According to the information and explanations given to us thecompany has not granted any loans secured or unsecured to companies firms limitedliability partnerships or other parties covered in the register maintained under section189 of the companies act 2013. Accordingly the provisions of sub clauses (a) (b) (c)of clause (III) of the order are not applicable to the company.
IV. The company has not granted any loans or made any investment orprovided any guarantee or security in respect of which provisions of section 185 of theact
Are applicable. Accordingly the provisions of clause (IV) of the orderare not applicable to the company.
V. In our opinion and according to the information and explanationsgiven to us the company has complied with the directives issued by the reserve bank ofindia and the provisions of sections 73 to 76 or any other relevant provisions of the actand the rules framed there under to the extent applicable. We are informed by themanagement that no order has been passed by the company law board or national company lawtribunal or reserve bank of india or any court or any other tribunal in this regard.
VI. We have broadly reviewed accounts and records maintained by thecompany pursuant to rules made by the central government for the maintenance of costrecords under section 148(1) of the act in respect of company's products to which thesaid rules are made applicable and are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. We have however not made a detailedexamination of records with a view to determine whether they are accurate.
VII. A) according to the information and explanations
Given to us and according to the records of the company examined by usin our opinion the company is generally regular in depositing with the appropriateauthorities undisputed statutory dues including provident fund employees' stateinsurance income-tax sales tax service tax goods and service tax duty of custom dutyof excise value added tax cess and any other statutory dues wherever applicable.According to the information and explanations given to us no undisputed amounts payablein respect of aforesaid dues were outstanding as at 31st march 2020 for aperiod of more than 6 months from the date they became payable.
B) according to the information and explanations given to us therewere no dues in respect of income tax duty of excise duty of customs sales tax servicetax goods and service tax and value added tax which have not been deposited on account ofany dispute except the following:
VIII. We have been informed that the company has not defaulted inrepayment of loans or borrowings to financial institutions banks and government. Thecompany has not raised any funds through debentures.
IX. According to the information and explanations given to us and onthe basis of examination of records the company has neither obtained new term loans norraised any money by way of initial public offer or further public offer of shares and / ordebt instruments
During the year. Therefore the provisions of clause (IX) of the orderare not applicable to the company.
X. Based on our audit procedures performed for the purpose of reportingthe true and fair view of the standalone financial statements and on the basis ofinformation and explanations given by the management no fraud by the company or on thecompany by its officers or employees has been noticed or reported during the year.
XI. The managerial remuneration has been paid in accordance with therequisite approvals mandated by the provisions of section 197 read with schedule v to theact.
XII. In our opinion and according to the information and explanationsgiven to us the company is not a nidhi company and accordingly the provisions of clause(xii) of the order are not applicable to the company.
XIII. According to the information and explanations given to us andbased on our examination of records of the company the transactions entered with relatedparties are in compliance with provisions of section 177 and 188 of the act whereapplicable and the details of such transactions are disclosed in the standalone financialstatements as required by the applicable accounting standards.
XIV. According to the information and explanations given to us andbased on our examination of records of the company the company during the year has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures. Accordingly the provisions of clause (xiv) of the order are notapplicable to the company.
XV. In our opinion and according to the information and explanationsgiven to us and based on our examination of records of the company the company during theyear has not entered into any non cash transactions with directors or persons connectedwith the directors covered under the provisions of sec 192 of the act and accordingly theprovisions of clause (XV) of the order are not applicable to the company.
XVI. In our opinion and according to the information and explanationsgiven to us the company is not required to be registered under section 45-ia of thereserve bank of india act 1934.
Annexure b to the independent auditors' report onstandalone financial statements of Savita oil technologies limited (referred to inparagraph II (f) under report on other legal and regulatory requirements' ofour report of even date to the members of Savita oil technologies limited on thestandalone financial statements for the year ended 31st march 2020)
Report on the internal financial controls over financial reportingunder clause (i) of sub-section 3 of section 143 of the companies act 2013 (theact)
We have audited the internal financial controls over financialreporting of Savita oil technologies limited ("the company") as of 31stmarch 2020 in conjunction with our audit of the standalone ind as financial statements ofthe company for the year ended on that date.
Management's responsibility for internal financial controls
The company's management is responsible for establishing andmaintaining 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 overfinancial reporting ("the guidance note") issued by the institute of charteredaccountants of india (icai). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the companies act 2013.
Our responsibility is to express an opinion on the company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the guidance note and the standards on auditing issued by the icai anddeemed to be prescribed under section 143(10) of the companies act 2013 to the extentapplicable to an audit of internal financial controls. Those standards and the guidancenote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the standalone financial statements whether due tofraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the company's internal financialcontrols system over financial reporting.
Meaning of internal financial controls over financial reporting
A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of standalone financial statements for external purposes inaccordance with generally accepted accounting principles. A company's internal financialcontrol over financial reporting includes those policies and procedures that (1) pertainto the maintenance of records that in reasonable detail accurately and fairly reflectthe transactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of standalonefinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have a material effect on the standalonefinancial statements.
Inherent limitations of internal financial controls over financialreporting
Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur
And not be detected. Also projections of any evaluation of theinternal financial controls over financial reporting to future periods are subject to therisk that the internal financial control over financial reporting may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.
In our opinion to the best of our information and according to theexplanations given to us 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 of 31st march 2020 based on the internal control overfinancial reporting criteria established by the company considering the essentialcomponents of internal control stated in the guidance note issued by the icai.