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Savita Oil Technologies Ltd.

BSE: 524667 Sector: Industrials
NSE: SOTL ISIN Code: INE035D01012
BSE 00:00 | 22 Feb 990.05 30.05
(3.13%)
OPEN

988.10

HIGH

1002.45

LOW

978.00

NSE 00:00 | 22 Feb 987.20 17.95
(1.85%)
OPEN

979.95

HIGH

1056.50

LOW

979.95

OPEN 988.10
PREVIOUS CLOSE 960.00
VOLUME 56
52-Week high 1522.95
52-Week low 873.50
P/E 11.70
Mkt Cap.(Rs cr) 1,418
Buy Price 978.00
Buy Qty 1.00
Sell Price 1002.50
Sell Qty 5.00
OPEN 988.10
CLOSE 960.00
VOLUME 56
52-Week high 1522.95
52-Week low 873.50
P/E 11.70
Mkt Cap.(Rs cr) 1,418
Buy Price 978.00
Buy Qty 1.00
Sell Price 1002.50
Sell Qty 5.00

Savita Oil Technologies Ltd. (SOTL) - Auditors Report

Company auditors report

To the Members of Savita Oil Technologies Limited Report on the Standalone Ind ASFinancial Statements

We have audited the accompanying Standalone Ind AS Financial Statements of SAVITA OILTECHNOLOGIES LIMITED ("the Company") which comprise the Balance Sheet as at 31stMarch 2018 the Statement of Profit and Loss (including Other Comprehensive Income) theCash Flow Statement and the Statement of Changes in Equity ("The FinancialStatements") for the year then ended and the summary of the significant accountingpolicies and other explanatory information.

MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE IND AS 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 state of affairsfinancial performance (including Other Comprehensive Income) cash flows and statement ofchanges 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 Rule 3 of the Companies (Indian Accounting Standards)Rules 2015.

This responsibility also includes the maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing 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 Standalone IndAS Financial Statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

AUDITORS' 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 accordancewith the Standards on Auditing issued by Institute of Chartered Accountants of India asspecified under Section 143(10) of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the 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 the auditor'sjudgment including the assessment of the risks of material misstatement of the FinancialStatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial controls relevant to the Company's preparation of theFinancial Statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company's directors as well as evaluating the overall presentationof 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 Standalone 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 including Ind AS of the state of affairs(financial position) of the Company as at 31st March 2018 and its profit(financial performance including total comprehensive income) its cash flows and thestatement of changes in equity for the year ended on that date.

EMPHASIS OF MATTER

We draw your attention to the: Note No. 26 which relates to payment of remuneration inexcess of amount payable as per the provisions of sec 197 of the Act to the Chairman andManaging Director aggregating to ' 30.12 lacs for the financial year 2014-15. TheCompany's previous application for waiver of excess remuneration was rejected by Ministryof Corporate Affairs stating that the Company had failed to submit required information /documents. The Company has replied to the Ministry with evidence that all the information/ documents requisitioned was / were furnished to the Ministry from time to time. TheApproval from Ministry in this regard is awaited.

Our opinion is not modified in respect of these matters. OTHER MATTERS

The comparative financial information of the Company for the year ended on 31stMarch 2018 are based on previously issued Statutory Financial Statements prepared inaccordance with Companies (Indian Accounting Standards) Rules 2015 audited bypredecessor auditor for the year ended on 31st March 2017 dated 27thMay 2017 expressed an Unmodified opinion on those Standalone Ind AS FinancialStatements.

Our opinion is not modified in respect of these matters.

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 Act we give in the Annexure A a statement on the matters specified in paragraphs 3and 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 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 Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account.

(d) In our opinion the aforesaid Standalone Ind AS Financial Statements comply withthe Ind AS specified under section 133 of the Act read with Rule 3 of the Companies(Indian Accounting Standards) Rules 2015.

(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 termsof Section 164 (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" to this report.

(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 read with Notification No G.S.R 307(E) dated 30.3.2017 in our opinion and to thebest of our information and according to the explanations given to us:

(i) The Company has disclosed the impact of pending litigations on its financialposition in its Standalone Ind AS Financial Statements

- Refer Note No. 28 to the Standalone Ind AS Financial Statements.

(ii) The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long term contracts includingderivative contracts.

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

ANNEXURE - A TO THE INDEPENDENT AUDITORS' REPORT ON STANDALONE IND AS FINANCIALSTATEMENTS OF SAVITA OIL TECHNOLOGIES LIMITED

(Referred to in paragraph I under the heading "Report on Other Legal andRegulatory Requirements" of our report of even date to the members of Savita OilTechnologies Limited on the Standalone Ind AS Financial Statements for the year ended 31stMarch 2018)

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment.

(b) As informed to us the fixed assets having substantive value have been physicallyverified by the management during the period according to a phased programme. In ouropinion such programme is reasonable having regard to the size of the Company and thenature of its assets. We have been further informed that no material discrepancies werenoticed on such verification by the management between the book records and physicalverification.

(c) According to the information and explanations given to us and based on the recordsproduced the title deeds of the immovable properties held by the Company are in the nameof the Company.

(ii) The inventories have been physically verified during the year by the management.In our opinion the frequency of verification is reasonable. The discrepancies noticed onverification between the physical stocks and the book records were not material havingregard to the size of the operations of the Company and the same have been properly dealtwith.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under section 189 of theCompanies 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 under section 185 made any investmentprovided any guarantee or security. Accordingly the provisions of clause (iv) of theorder are not applicable to the company.

(v) In our opinion and according to the information and explanations given to us theCompany has complied with the directives issued by the Reserve Bank of India and theprovisions of sections 73 to 76 or any other relevant provisions of the Act and the rulesframed there under to the extent applicable. We are informed by the Management that noorder has been passed by the Company Law Board or National Company Law Tribunal or ReserveBank of India or any court or any other Tribunal in this regard.

(vi) We have broadly reviewed accounts and records maintained by the Company pursuantto rules made by the Central Government for the maintenance of cost records under Section148(1) of the Act in respect of Company's products to which the said rules are madeapplicable and are of the opinion that prima facie the prescribed accounts and recordshave been made and maintained. We have however not made a detailed examination ofrecords with a view to determine whether they are accurate.

(vii) (a) According to the information and explanations given to us and according tothe records of the Company examined by us in our opinion the Company is generallyregular in depositing with the appropriate authorities undisputed statutory dues includingProvident Fund Employees' State Insurance Income-tax Sales Tax Service Tax Goods andService Tax duty of Custom duty of Excise Value Added Tax Cess and any other statutorydues wherever applicable. According to the information and explanations given to us noundisputed amounts payable in respect of aforesaid dues were outstanding as at 31stMarch 2018 for a period of more than 6 months from the date they became payable.

(b) According to the information and explanations given to us there were no dues inrespect of Income Tax Duty of Excise Duty of Customs Sales Tax Service Tax Goods andService Tax and Value Added Tax which have not been deposited on account of any disputeexcept the following:

Name of the statute Nature of the dues Forum where the case is pending Period to which the amount relates (Financial Year) Gross amount involved Amount paid in protest Amount unpaid
Central Excise Act 1944 Excise Duty Superintendent Assistant/ Deputy/ Joint/ Additional Commissioner and Commissioner of Central Excise Department 2002-2016 257.80 16.81 241.00
Commissioner of Central Excise (Appeals) 2006-2017 420.94 15.70 405.24
Customs Excise and Service Tax Appellate Tribunal 1999-2002 2004-2017 595.35 17.86 577.48
Total (A) 1274.09 50.37 1223.72
Finance Act 1994 Service Tax Commissioner of Central Excise (Appeals) 2006-2011 20.16 - 20.16
Total (B) 20.16 - 20.16
Customs Act 1962 Customs Duty Commissioner of Customs (Imports) 1992-1993 2006-2007 402.63 - 402.63
Total (C) 402.63 - 402.63
Central Sales Tax Act & Sales Tax Act of various Acts Central Sales Tax Commercial Tax Officer (Assessing Authority) 2005-2006 2008-2009 7.44 - 7.44
Assistant/ Additional Deputy Commissioner of Commercial Taxes 2000-2001 2003-2004 0.21 - 0.21
Deputy/ Joint/ Additional Commissioner (Appeal) 2002-2009 2010-2016 2067.72 38.42 2029.30
Sales Tax Tribunal 1998-1999 0.75 0.25 0.50
Total (D) 2076.12 38.67 2037.45
Tamil Nadu Panchayat Act 1994 House Tax Thadichery Panchayat 2012-2013 33.49 - 33.49
Theni Total (E) 33.49 - 33.49
Grand Total ( A + B + C + D + E ) 3806.49 89.04 3717.45

(viii) We have been informed that the Company has not defaulted in repayment of loansor borrowings to financial institutions banks and Government. The Company has not raisedany funds through debentures.

(ix) According to the information and explanations given to us and on the basis ofexamination of records the Company has neither obtained new term loans nor raised anymoney by way of initial public offer or further public offer of shares and / or debtinstruments during the year. Therefore the provisions of clause (ix) of the Order are notapplicable to the Company.

(x) Based on our audit procedures performed for the purpose of reporting the true andfair view of the Standalone

Financial Statements and on the basis of information and explanations given by themanagement no fraud by the Company or on the Company by its officers or employees hasbeen noticed or reported during the year.

(xi) The managerial remuneration has been paid in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act. Asstated in note no. 26 and as stated in the Emphasis of Matter para of our main report thepayment of remuneration in excess of amount payable as per the provision of the Act to theManaging Director aggregating to ' 30.12 lacs for the financial year 2014-

2015. The Company's previous application for waiver of excess remuneration was rejectedby Ministry of Corporate Affairs stating that the Company had failed to submit requiredinformation / documents. The Company has replied to the Ministry with evidence that allthe information / documents requisitioned was / were furnished to the Ministry from timeto time. The Approval from Ministry in this regard is awaited.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company and accordingly the provisions of clause (xii) of the Orderare not applicable to the Company.

(xiii) According to the information and explanations given to us and based on ourexamination of records of the Company the transactions entered with related parties arein compliance with provisions of section 177 and 188 of the Act where applicable and thedetails of such transactions are disclosed in the Standalone Financial Statements asrequired by the applicable accounting standards.

(xiv) According to the information and explanations given to us and based on ourexamination of records of the Company the Company during the year has notmade anypreferential allotment or private placement of shares or fully or partly convertibledebentures. Accordingly the provisions of clause (xiv) of the Order are not applicable tothe Company.

(xv) In our opinion and according to the information and explanations given to us andbased on our examination of records of the Company the Company during the year has notentered into any non-cash transactions with directors or persons connected with thedirectors 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 explanations given to us theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.

ANNEXURE "B" TO THE INDEPENDENT AUDITORS' REPORT ON STANDALONE IND ASFINANCIAL STATEMENTS OF SAVITA OIL TECHNOLOGIES LIMITED

(Referred to in paragraph I (h) under ‘Report on Other Legal and RegulatoryRequirements' of our report of even date to the members of Savita Oil Technologies Limitedon the Standalone Ind AS Financial Statements for the year ended 31st March2018)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of Savita OilTechnologies Limited ("the Company") as of 31st March 2018 inconjunction with our audit of the Standalone Ind AS Financial Statements of the Companyfor 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 includethe 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's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

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 the ICAI and deemed to beprescribed under Section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls. Those Standards and the Guidance Note requirethat we complywith ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial aspects.

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 judgment including the assessment of the risks ofmaterial misstatement of the Standalone Ind AS Financial Statements whether due to fraudor 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 Standalone Ind AS Financial Statements for external purposes in accordancewith generally 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 StandaloneInd AS Financial Statements in accordance with generally accepted accounting principlesand that receipts 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 StandaloneInd AS 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 to the best of our information and according to the explanations givento us the Company has in all material aspects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as of 31st March 2018 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 G. D. Apte & Co.
Chartered Accountants
Firm's Registration No: 100515W
Chetan R. Sapre
Place : Mumbai Partner
Dated : 11th May 2018 Membership No: 116952