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Servoteach Industries Ltd.

BSE: 531944 Sector: Engineering
NSE: N.A. ISIN Code: INE185D01015
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NSE 05:30 | 01 Jan Servoteach Industries Ltd
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VOLUME 11
52-Week high 4.00
52-Week low 3.81
P/E
Mkt Cap.(Rs cr) 2
Buy Price 3.81
Buy Qty 1.00
Sell Price 4.00
Sell Qty 389.00
OPEN 4.00
CLOSE 4.00
VOLUME 11
52-Week high 4.00
52-Week low 3.81
P/E
Mkt Cap.(Rs cr) 2
Buy Price 3.81
Buy Qty 1.00
Sell Price 4.00
Sell Qty 389.00

Servoteach Industries Ltd. (SERVOTEACHINDS) - Auditors Report

Company auditors report

To

The Members of Servoteach Industries Limited

Report on the Financial Statements

We have audited the accompanying financial statements of SERVOTEACH INDUSTRIESLIMITED. ("The Company") which comprise the Balance Sheet as at 31stMarch 2019 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Financial Statements

The management and Board of Directors of the Company are responsible for the mattersstated in Section134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act read with rule 7 of Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding 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; design implementation and maintenance of adequate internalfinancial controls that are operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe 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 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 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 control 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 management and Board of Directors as well as evaluatingthe overall presentation of 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 financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2019 its Loss and its cash flows for the year ended on thatdate.

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 section143 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 further 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 purpose of our audit;

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

c. The Balance Sheet the Statement of Profit and Loss and cash flow statement dealtwith by this Report are in agreement with the books of account;

d. In our opinion the aforesaid financial statements comply with the applicableAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e. On the basis of written representations received from the directors as on March 312018 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2018 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. In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014:

i. The Company does not have any pending litigations which would impact its financialposition except as stated otherwise.

ii. The Company did not have any long-term contracts including derivative contracts; assuch the question of commenting on any material foreseeable losses thereon does not arise.

iii. Since there has been no occasion during the year under report to transfer anysums to the Investor Education and Protection Fund. The question of delay in transferringsuch sum does not arise.

For AMIT & DISHA ASSOCIATES

Chartered Accountants

Firm Reg No. 119350W

(Amit V Mody)

Partner

Membership No. 102706

Place: Mumbai

Date: 30/05/2019

Independent Auditors' Report to the Members of SERVOTEACH INDUSTRIES LIMITED.

Annexure- "A"

(Annexure referred to in Paragraph under the heading "Report on other legal andregulatory requirements "of Our Report of Even Date.)

On the basis of such checks as we considered appropriate areas according to theinformation and explanation given to us during the course of our audit we state that:

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

(b) As explained to us the fixed assets have been physically verified by themanagement during the year at reasonable intervals. No material discrepancies were noticedon verification.

(c) According to the records of the company examined by us and as per the informationand explanations given to us the company does not have any immovable property. Thusparagraph 3(ic) of the Order is not applicable to the company.

ii) According to information and explanations given to us the Company does not haveany inventory during the year; therefore the requirements of Clause (ii) of the paragraph3 of said Order are not applicable.

iii) According to information and explanations given to us the Company has not grantedany loans secured or unsecured to companies firms or other parties covered in theregister maintained under section 189 of the Act. Accordingly paragraph 3(iii) of the saidOrder is not applicable.

iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act in respect ofloans investments guarantees and security to the extent applicable to it.

v) According to the information and explanations given to us the Company has notaccepted any deposits from the public covered under section 73 to 76 of the Companies Act2013 and the rules framed thereunder. Therefore the provision of clause 3(v) of the Orderis not applicable to the Company.

vi) To the best of our knowledge and as explained Central Government has notprescribed the maintenance of cost records under sub-section (1) of Section 148 of the Act for the products of the Company. Therefore the provision of clause 3(vi) of the Orderis not applicable to the Company.

vii) (a) According to the records of the Company and the information and explanationsgiven to us the Company has been generally regular in depositing with appropriateauthorities undisputed statutory dues including provident fund Employees' StateInsurance Income Tax Sales Tax Service Tax Customs Duty Excise Duty Value Added TaxCess and any other statutory dues to the extent applicable to it.

According to the information and explanations given to us and based on the records ofthe company examined by us no undisputed amounts payable in respect of Provident FundEmployees' State Insurance Income Tax Service Tax Sales Tax Customs Duty ExciseDuty Value Added Tax Cess and other material statutory dues were outstanding at theyear end for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us and the records of theCompany examined by us there are no dues of income-tax sales-tax wealth taxservice-tax customs duty and excise duty which have not been deposited on account of anydispute except a sum of Rs. 212960/- on account of Provident Fund.

(viii) Based on our audit procedures and as per the information and explanations givenby the management the Company did not have any loans from banks financial institutionsgovernment or has not issued debentures during the year.

(ix) According to the records of the company examined by us and as per the informationand explanations given to us the Company has not raised any money from any Public Issue /follow-on offer. Therefore the provision of clause 3(ix) of the Order is not applicableto the Company.

(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

(xi) According to the records of the company examined by us and as per the informationand explanations given to us the company has not paid/provided managerial remuneration.Therefore the provision of clause 3(xi) of the Order is not applicable to the Company.

(xii) In our opinion the Company is not a chit fund or a nidhi/mutual benefitfund/society. Therefore the provision of clause 3(xii) of the Order is not applicable tothe Company.

(xiii) In our opinion all the transactions with the related parties are in compliancewith section 177 and 188 of the Act where applicable and the details have been disclosedin the financial statements as required by applicable accounting standard. (Refer to Noteno. 33)

(xiv) The Company has not made any preferential allotment or private placement ofshares or partly or fully convertible debentures during the year therefore reportingunder clause 3(xiv) is not applicable.

(xv) According to the information and explanations given to us we report that theCompany has not entered into any non-cash transaction with directors or persons connectedwith him.

(xvi) In our opinion the Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934.

For AMIT & DISHA ASSOCIATES

Chartered Accountants

Firm Reg No. 119350W

(Amit V Mody)

Partner

Membership No. 102706

Place: Mumbai

Date: 30/05/2019

Independent Auditors' Report to the Members of SERVOTEACH INDUSTRIES LIMITED.

Annexure -"B" to the Auditors' Report

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

In conjunction with our audit of the standalone financial statements of the Company asof and for the year ended 31 March 2019 we have audited the internal financial controlsover financial reporting of Servoteach Industries Limited. ("theCompany").

Management's Responsibility for Internal Financial Controls

The Respective Board of Directors of the Company are 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 issued by the Institute of Chartered Accountants of India("ICAI'). These responsibilities include the design implementation and maintenanceof adequate 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 on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") issued by ICAI and the Standards on Auditing issued byICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both issued by the Instituteof Chartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

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 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 financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material 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 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 ICAI.

For AMIT & DISHA ASSOCIATES

Chartered Accountants

Firm Reg No. 119350W

(Amit V Mody)

Partner

Membership No. 102706

Place: Mumbai

Date: 30/05/2019