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Selan Explorations Technology Ltd.

BSE: 530075 Sector: Oil & Gas
NSE: SELAN ISIN Code: INE818A01017
BSE 00:00 | 29 May 87.35 3.20
(3.80%)
OPEN

87.70

HIGH

88.25

LOW

85.10

NSE 00:00 | 29 May 87.05 2.65
(3.14%)
OPEN

85.05

HIGH

88.60

LOW

84.00

OPEN 87.70
PREVIOUS CLOSE 84.15
VOLUME 2172
52-Week high 188.00
52-Week low 62.35
P/E 3.58
Mkt Cap.(Rs cr) 133
Buy Price 86.30
Buy Qty 100.00
Sell Price 88.30
Sell Qty 195.00
OPEN 87.70
CLOSE 84.15
VOLUME 2172
52-Week high 188.00
52-Week low 62.35
P/E 3.58
Mkt Cap.(Rs cr) 133
Buy Price 86.30
Buy Qty 100.00
Sell Price 88.30
Sell Qty 195.00

Selan Explorations Technology Ltd. (SELAN) - Auditors Report

Company auditors report

To the Members of Selan Exploration Technology Limited

Report on the Financial Statements Opinion

We have audited the accompanying Ind AS financial statements of

SELAN EXPLORATION TECHNOLOGY LIMITED ("the Company") which comprise theBalance Sheet as at 31 March 2019 the Statement of Profit and Loss (including OtherComprehensive Income) the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and a summary of significant accounting policies and otherexplanatory information. In our opinion and to the best of our information and accordingto the explanations given to us the aforesaid Ind AS 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:

a) of the state of affairs of the Company as at 31 March 2019;

b) of the profit (including Other Comprehensive Income) for the year ended on thatdate;

c) of the changes in equity for the year ended on that date; and

d) of the cash flows for the year ended on that date.

 

Basis for Opinion

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 Ind AS financialstatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India (ICAI) togetherwith the independence requirements that are relevant to our audit of the Ind AS 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 opinion on the Ind AS financial statements.

 

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Ind AS financial statements of the current period. Thesematters were addressed in the context of our audit of the Ind AS financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. We have determined the matter described below to be the key audit mattersto be communicated in our report.

 

Key Audit Matter

The carrying value of the investments (i.e. investment in mutual funds) and therecognition of realised and unrealised gains and losses thereof. The investment portfolioand associated realised and unrealised gains or losses is a factor having material impacton Ind AS financial statements.

Refer Note 12 and 28 of the Financial Statements.

Auditor's Response

Principal Audit Procedures

We tested the value of the year-end investments by reference to market priceinformation at the year-end on the basis of transaction / account statements madeavailable by the respective Asset Management Companies / Mutual Fund Investment Companies.We verified that the purchase and sale of investments were as per the contract notes. Therealised gains and losses on the sale of investments were re- calculated for both theindividual transactions on a sample basis and for the total portfolio. The movement inunrealised gains was checked for arithmetical accuracy and validated by reviewing theopening costs to prior year balances and purchases on a sample basis. We verified theinvestment portfolios with the investment summary statements provided by the respectiveinvestment advisors detailing the investments the cost and market prices.

Information Other than the Standalone Ind AS Financial Statements and Auditor's Reportthereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Directors' Report including Annexures to Directors' ReportCorporate Governance and Shareholder's Information but does not include the standaloneInd AS financial statements and our auditor's report thereon. Our opinion on thestandalone Ind AS financial statements does not cover the other information and we do notexpress any form of assurance conclusion thereon. In connection with our audit of thestandalone Ind AS financial statements our responsibility is to read the otherinformation 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. If based on the workwe have performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in thisregard.

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 Act with respect to the preparation of these Ind AS financial statementsthat give a true and fair view of the state of affairs (financial position) profit orloss (financial performance including Other Comprehensive Income) cash flows and changesin equity of the Company in accordance with the accounting principles generally acceptedin India including the Indian Accounting Standards (Ind AS) specified under section 133of the Act read with the Companies (Indian Accounting Standards) (Amendment) Rules 2016.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of 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 Ind ASfinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error. In preparing the Ind AS financial statementsManagement is responsible for assessing the Company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless management either intends to liquidate the Company orto cease operations or has no realistic alternative but to do so. The Board of Directorsare also responsible for overseeing the Company's financial reporting process.

Auditors' Responsibility for the Audit of the Standalone Ind AS Financial Statements

Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made thereunder. We conducted our audit of the IndAS financial statements 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 Ind AS financial statements are free from material misstatement. An audit involvesperforming procedures to obtain audit evidence about the amounts and the disclosures inthe Ind AS financial statements. The procedures selected depend on the auditor's judgmentincluding the assessment of the risks of material misstatement of the Ind AS financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of the Ind ASfinancial 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 the accounting principles used and the reasonableness of the accountingestimates made by company's Directors as well as evaluating the overall presentation ofthe Ind AS financial statements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the Ind ASfinancial statements.

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 and on the basis of such checks of the books and records of the Company as weconsidered appropriate and according to the information and explanation given to us wegive in "Annexure A" a statement on the matters specified in the paragraph 3 and4 of the said Order.

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

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

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

(c) The Balance Sheet the Statement of Profit and Loss (including Other ComprehensiveIncome) the Cash Flow Statement and the Statement of Changes in Equity dealt with by thisReport are in agreement with the books 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 the Companies(Indian Accounting Standards) (Amendment) Rules 2016.

(e) On the basis of written representations received from the Directors as on 31 March2019 and taken on record by the Board of Directors none of the Directors is disqualifiedas on 31 March 2019 from being appointed as a Director in terms of Section 164(2) of theAct.

(f) With respect to the adequacy of the Internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in Annexure B.

(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 as amended bythe Companies (Audit and Auditors) Rules 2017 in our opinion and to the best of ourknowledge and information and according to the explanations given to us: (i) The Companydoes not have any pending litigation which would impact its financial position; (ii) Thereis no long-term contracts including derivative contracts requiring provision for materialforeseeable losses under the applicable law or accounting standards; (iii) There has beenno delay in transferring amounts required to be transferred to the Investor Educationand Protection Fund by the Company.

For J.A. Martins & Co. Chartered Accountants (Firm Regn. No. 010860N)

J. A. Martins Place : New Delhi Proprietor Date : 29 May 2019 (M. No. 082051)

Annexure -A REFERRED TO IN THE AUDITORS' REPORT TO THE MEMBERS OF SELAN EXPLORATIONTECHNOLOGY LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2019.

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. (b) The Management has physicallyverified the fixed assets during the year and the frequency of which in our opinion isreasonable. No material discrepancies were noticed on such physical verification. (c) TheCompany does not own any Land and hence clause 3(i) (c) is not applicable to the Company.

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

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

(iv) The Company has not given any loan or nor furnished any guarantee nor provided anysecurity to the parties covered under section 185 of the Companies Act 2013. The Companyhas not given any loans or made any investments or provided guarantees or security. Henceclause 3(iv) is not applicable to the Company. (v) The Company has not accepted anydeposits from the public within the meaning of sections 73 to 76 of the Act and the rulesframed there under. We are informed by the Management that no order has been passed by theCompany Law Board or National Company Law Tribunal or Reserve Bank of India or any courtor any other Tribunal in this regard.

(vi) We have broadly reviewed the books of accounts maintained by the Company pursuantto the rules made under sub-section (1) of Section 148 of the Act for maintenance of costrecords and are of the opinion that prima facie the prescribed accounts and records havebeen maintained. We have however not made a detailed examination of cost records with aview to determine whether they are accurate and complete.

(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 has been generallyregular in depositing with the appropriate authorities undisputed statutory dues includingprovident fund employees' state insurance income-tax sales tax service tax duty ofcustom duty of excise value added tax cess goods and service tax and other statutorydues wherever applicable.

According to the information and explanations furnished to us no undisputed amountspayable in respect of aforesaid dues were outstanding as on 31 March 2019 for a period ofmore than six months from the date they became payable.

(b) According to the records of the Company there are no disputed dues relating toIncome-tax Sales Tax Service Tax duty of Excise Value Added Tax Goods and Service Taxor cess which have remain unpaid as on 31 March 2019.

(viii) Based on our verification and according to the information and explanationsgiven to us the Company has not defaulted in repayment of loans or borrowing to financialinstitutions Banks Government.

(ix) The Company had not raised money by way of initial public offer or further publicoffer (including debt instruments) during the year and hence clause 3(ix) is notapplicable to the Company.

(x) Based on the audit procedures adopted and information and explanations furnished tous by the management no case of material fraud on or by the Company has been noticed orreported during the course of our audit.

(xi) The managerial remuneration has been paid or provided in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act 2013.

(xii) The Company is not a nidhi company. Hence the provisions of clause 3(xii) of theOrder are not applicable to the Company.

(xiii) In our opinion and according to the information and explanations given to usthe Company has complied with the provisions of section 177 and section 188 of the Act inrespect of transactions with the related parties and the details have been disclosed inthe Ind AS financial statements as required by the applicable Indian accounting standards.

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under audit andaccordingly provisions of clause (xiv) of Para 3 of the Order are not applicable to theCompany.

(xv) According to the information and explanations given to us the Company has notentered into any non-cash transactions with directors or persons connected with them.Hence the provisions of clause 3(xv) of the Order are not applicable to the Company.

(xvi) According to the information and explanations given to us the Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.

For J.A. Martins & Co. Chartered Accountants (Firm Regn. No. 010860N)

J. A. Martins Place : New Delhi Proprietor Date : 29 May 2019 (M. No. 082051)

Annexure – B REFERRED TO IN THE AUDITORS' REPORT TO THE MEMBERS OF SELANEXPLORATION TECHNOLOGY LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2019.

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 SelanExploration Technology Limited ("the Company") as of 31 March 2019 inconjunction with our audit of the Ind AS financial statements of the Company for the yearended 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 Reportingissued by the Institute 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.

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 on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsboth issued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects. Our audit involves performing procedures to obtainaudit evidence about the adequacy of the internal financial controls system over financialreporting and their operating effectiveness. Our audit of internal financial controls overfinancial reporting included obtaining an understanding of internal financial controlsover financial reporting assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement including theassessment of the risks of material misstatement of the Ind AS financial statementswhether 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 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 Ind ASfinancial 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 Ind ASfinancial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2019 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 J.A. Martins & Co. Chartered Accountants (Firm Regn. No. 010860N)

J. A. Martins Place : New Delhi Proprietor Date : 29 May 2019 (M. No. 082051)