To
The Members of
SAVITA OIL TECHNOLOGIES LIMITED
Report on the Standalone Financial Statements
OPINION
We have audited the accompanying standalone financial statements of SAVITA OIL
TECHNOLOGIES LIMITED ("the Company"), which comprise the Balance Sheet as at
March 31, 2023, the Statement of Profit and Loss, the Statement of Changes in Equity and
the Statement of Cash Flows for the year ended on that date, and a summary 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 the explanations
given to us, the aforesaid standalone financial statements give the information required
by the Companies Act, 2013 ("the Act") in the manner so required and give a true
and fair view in conformity with the Indian Accounting Standards prescribed under section
133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as
amended, ("Ind AS") and other accounting principles generally accepted in India,
of the state of affairs of the Company as at March 31, 2023, the profit and total
comprehensive income, changes in equity and its cash flows for the year ended on that
date.
BASIS FOR OPINION
We conducted our audit of the standalone financial statements in accordance with the
Standards on Auditing (SAs) specified under section 143(10) of the Act. Our
responsibilities under those Standards are further described in the Auditors
Responsibilities for the Audit of the Standalone Financial Statements section of our
report. We are independent of the Company in accordance with the Code of Ethics issued by
the Institute of Chartered Accountants of India (ICAI) together with the ethical /
independence requirements that are relevant to our audit of the standalone financial
statements under the provisions of the Act and the Rules made thereunder, and we have
fulfilled our other ethical responsibilities in accordance with these requirements and the
ICAIs Code of Ethics. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the standalone financial
statements.
OTHER MATTER
The Board of Directors of the Company in their meeting held on May 26, 2023 had
approved a set of financial statements (previous financial statements) and we had issued
our report thereon including report on the adequacy of the internal financial controls
with reference to financial statements of the Company and the operating effectiveness of
such controls dated May 26, 2023. At that point of time, the company vide its order dated
8th May, 2023 received approval order from National Company Law Tribunal, Mumbai Bench
("the NCLT") for amalgamation of Savita Polymers Limited (SPL) with appointed
date of April 01, 2022. Filing of the order with Registrar of Companies (RoC) was pending.
Since the previous financial statements were not approved by the shareholders of the
Company, the Board of Directors at their meeting held on August 01, 2023 has made
necessary changes to give effect to the Scheme in the previous financial statements and
has approved the attached financial statements.
The comparatives for the previous years have been restated by the Management of the
Company to give the effect of the said scheme by including the financial statements of SPL
which are audited by other auditor, M/s Gokhle & Sathe, Chartered Accountants, Mumbai
for the year ended March 31, 2023 and March 31, 2022 and by giving such adjustments and
effects as are required by the scheme of Arrangement. We have relied on the audit report
of the other auditors for giving effect of merger in the books of the company.
Our opinion is not modified in respect of this matter
KEY AUDIT MATTERS
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the standalone financial statements of the current period.
These matters were addressed in the context of our audit of the standalone financial
statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters. We have determined the matters described below to be
the key audit matters to be communicated in our report.
| Sr. No. Key Audit Matter |
Auditors Response |
| 1. Inventory valuation and consumption of raw and packing materials: |
We have performed the following procedures in relation to the accuracy of recorded
consumption and inventory: |
| Accuracy of recording of inventory & related consumption at appropriate values. |
Understood, evaluated and tested the key controls over the recording of inventory and
booking of consumption. |
|
We selected a sample of transactions and: |
|
• Checked the goods receipt notes and material issue slips on a sample basis to
ensure correct recording of materials receipts & consumption. |
|
• Tested and verified, the weighted average rate of inputs, at which consumption
was recorded. |
|
• Tested and verified the Overhead absorption rate calculation used for inventory
valuation. |
|
• Reviewed the process of physical verification of inventories carried out by the
management at various locations by participating in the said process. |
|
• Verified the reports of physical verification of inventory carried out by the
management and corrective actions taken to rectify the identified discrepancies (if any). |
| 2. Evaluation of uncertain tax positions: |
We have performed the following procedures: |
| The Company has material uncertain tax positions including matters under dispute which
involves significant judgment to determine the possible outcome of these disputes. |
Obtained understanding of key uncertain tax positions; |
|
Obtained details of completed tax assessments and demands upto the year ended March
31, 2023 from the management; We have; |
|
i. Discussed with management and evaluated the managements underlying key assumptions
in estimating the tax provision; |
|
ii. Assessed managements estimate of the possible outcome of the disputed cases; and |
|
iii. Considered legal precedence and other rulings in evaluating managements position
on these uncertain tax positions. |
|
Additionally, considered the effect of new information in respect of uncertain tax
positions as at April 1, 2022 to evaluate whether any change was required to managements
position on these uncertainties. |
| 3. Assessment of contingent liabilities and provisions related to Taxation,
Litigations and claims: |
Our audit procedures included: |
| The assessment of the existence of the present legal or constructive obligation,
analysis of the probability of the related payment and analysis of a reliable estimate,
requires managements judgement to ensure appropriate accounting or disclosures. |
• As part of our audit procedures we have assessed Managements processes to
identify new possible obligations and changes in existing obligations for compliance with
company policy and Ind AS 37 requirements. |
| Due to the level of judgement relating to recognition, valuation and presentation of
provisions and contingent liabilities, this is considered to be a key audit matter. |
• We have analyzed significant changes from prior periods and obtain a detailed
understanding of these items and assumptions applied. |
|
• We have obtained relevant status details and Management representations on the
major outstanding litigations. |
|
• As part of our audit procedures we have reviewed minutes of board meetings
(including the Audit Committee). |
|
• We have held regular discussions with Management and internal legal department. |
|
• We challenged the assumptions and critical judgements made by management which
impacted their estimate of the provisions required, considering judgements previously made
by the authorities in the relevant jurisdictions or any relevant opinions given by the
Companys advisors and assessing whether there was an indication of management bias. |
|
• We discussed the status in respect of significant provisions with the Companys
internal tax and legal team. |
|
• We performed retrospective review of management judgements relating to
accounting estimate included in the financial statement of prior year and compared with
the outcome. |
INFORMATION OTHER THAN THE STANDALONE FINANCIAL STATEMENTS AND AUDITORS REPORT THEREON
The Companys Board of Directors is responsible for the preparation of the other
information. The other information comprises the information included in the Management
Discussion and Analysis, Boards Report including Annexures to Boards Report, Business
Responsibility Report, Corporate Governance and Shareholders Information, but does not
include the standalone financial statements and our auditors report thereon.
Our opinion on the standalone financial statements does not cover the other information
and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility
is to read the other information identified above when it becomes available and, in doing
so, consider whether the other information is materially inconsistent with the standalone
financial statements or our knowledge obtained during the course of our audit or otherwise
appears to be materially misstated.
When we read other information, if we conclude that there is a material misstatement
therein, we are required to communicate the matter to those charged with governance and
describe actions applicable in the applicable laws and regulations.
RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FOR THE STANDALONE
FINANCIAL STATEMENTS
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Act with respect to the preparation of these standalone financial statements
that give a true and fair view of the financial position, financial performance, total
comprehensive income, changes in equity and cash flows of the Company in accordance with
the Ind AS and other accounting principles generally accepted in India. This
responsibility also includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding the assets of the Company and for preventing
and detecting frauds and other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable and prudent; and
design, implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the standalone financial
statements that give a true and fair view and are free from material misstatement, whether
due to fraud or error.
In preparing the standalone financial statements, management is responsible for
assessing the Companys ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
The Board of Directors are responsible for overseeing the Companys financial reporting
process.
AUDITORS RESPONSIBILITIES FOR THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the standalone
financial statements as a whole are free from material misstatement, whether due to fraud
or error, and to issue an auditors report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit
Therefore, provisions clause 3(iii)(d) of the Order are not applicable to the company.
e) According to the information and explanations given to us, loan or advance in the
nature of loan which has fallen due during the year has neither been renewed or extended
nor fresh loans granted to settle the overdue of existing loans. Therefore, provisions of
clause 3(iii)(e) of the order are not applicable to the company.
f) According to the information and explanations given to us, company has not granted
any loans or advances in the nature of loans either repayable on demand or without
specifying any terms or period of repayment. Therefore, provisions of clause 3(iii)(f) of
the order are not applicable to the company.
iv. The Company has not granted any loans, or made any investment, or provided any
guarantee or security in respect of which provisions of section 185 and 186 of the Act are
applicable. Accordingly, the provisions of clause (iv) of the order are not applicable to
the company.
v. In our opinion and according to the information and explanations given to us, the
Company has complied with the directives issued by the Reserve Bank of India and the
provisions of sections 73 to 76 or any other relevant provisions of the Act and the rules
framed there under, to the extent applicable. We are informed by the Management that no
order has been passed by the Company Law Board or National Company Law Tribunal 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 the Company pursuant to
rules made by the Central Government for the maintenance of cost records under Section
148(1) of the Act, in respect of Companys products to which the said rules are made
applicable and are of the opinion that, prima facie the prescribed accounts and records
have been made and maintained. We have, however, not made a detailed examination 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 us, in our opinion, the Company is generally regular in
depositing with the appropriate authorities undisputed statutory dues including Provident
Fund, Employees State Insurance, Income-tax, Sales Tax, Service Tax, Goods and Service
Tax, duty of Custom, duty of Excise, Value Added Tax, Cess and any other statutory dues,
wherever applicable. According to the information and explanations given to us, no
undisputed amounts payable in respect of aforesaid dues were outstanding as at March 31,
2023 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 in
respect of Income Tax, Duty of Excise, Duty of Customs, Sales Tax, Service Tax, Goods and
Service Tax and Value Added Tax which have not been deposited on account of any dispute
except the following:
|
|
|
|
|
|
Rs. in Lakhs |
| Name of the Statue |
Nature of Dues |
Forum where the case is pending |
Period to which the Amount relates (Financial Year) |
Gross Amount Involved |
Amount Paid in Protest |
Amount Unpaid |
| Customs Act, 1962 |
Custom Duty |
Commissioner of Customs (Appeal) |
2014-2017 |
50.16 |
- |
50.16 |
| Total (A) |
|
|
|
50.16 |
- |
50.16 |
| Central Excise Act, 1944 |
Excise Duty |
Superintendent, Assistant/ Deputy/ Joint/ Additional Commissioner and |
2002-2016 |
28.76 |
|
28.76 |
|
|
Commissioner of Central Excise Department |
|
|
|
|
|
|
Commissioner of Central Excise (Appeals) |
2006-2018 |
64.48 |
5.37 |
59.11 |
|
|
Customs, Excise and Service |
1999-2002 |
1,178.12 |
44.41 |
1,133.71 |
|
|
Tax Appellate Tribunal |
2004-2017 |
|
|
|
|
|
Supreme Court |
2014-2017 |
1,248.10 |
51.23 |
1,196.87 |
| Total (B) |
|
|
|
2,519.46 |
101.01 |
2,418.45 |
| GST Act 2017 |
GST |
Joint Commissioner (Appeal) |
2017-19 |
34.56 |
34.56 |
- |
| Total(C) |
|
|
|
34.56 |
34.56 |
- |
| Finance Act, 1994 |
Service Tax |
Joint Commissioner, Service Tax |
2006-2011 |
20.16 |
- |
20.16 |
| Total (D) |
|
|
|
20.16 |
- |
20.16 |
| Central Sales Tax Act & Sales Tax Act of various Acts |
Central Sales Tax |
Assistant/ Additional Deputy Commissioner of Commercial Taxes |
2000-2001 2003-2004 |
0.21 |
|
0.21 |
|
|
Deputy/ Joint/ Additional Commissioner (Appeal) |
2002-2009 2010-2018 |
2,915.62 |
10.98 |
2,904.64 |
|
|
Sales Tax Tribunal |
1998-1999 |
0.75 |
0.25 |
0.50 |
| Maharashtra Value Added Tax |
Sales Tax CST |
Dy. Commissioner of Sales Tax (E-640) LTU-4, Mumbai |
2014- 15 2015- 16 |
4.58 |
|
4.58 |
| Total (E) |
|
|
|
2,921.16 |
11.23 |
2,909.93 |
| Tamil Nadu Panchayat Act, 1994 |
House Tax |
Thadichery Panchayat, Theni |
2012-13 |
33.49 |
- |
33.49 |
| Total (F) |
|
|
|
33.49 |
- |
33.49 |
| Grand Total (A + B + C + D+E+F) |
|
|
|
5,574.41 |
146.80 |
5,427.61 |
viii. According to the information and explanations given to us, no transaction or
income, not recorded in the books of accounts, have been surrendered or disclosed as
income during the year in the tax assessment under the Income Tax Act, 1961 (43 of 1961).
ix. a) In our opinion and according to the information and explanations given to us,
the company has not defaulted in repayment of loans or other borrowings or in the payment
of interest thereon, to any lender during the year.
b) According to the information and explanations given to us, the company is not
declared as willful defaulter by any bank or financial institution or other lender.
c) According to the information and explanations given to us, the company has applied
term loans for the purpose for which the loans were obtained.
d) According to the information and explanations given to us, funds raised on short
term basis have not been utilized for long term purposes.
e) According to the information and explanations given to us, the company has not taken
any funds from any entity or person on account of or to meet the obligations of its
subsidiaries, associates, or joint ventures.
f) According to the information and explanations given to us, the company has not
raised loans during the year on the pledge of securities held in its subsidiaries, joint
ventures, or associate companies.
x. a) According to the information and explanations given to us and on the basis of
examination of records of the Company, the company has not raised any money by way of
initial public offer or further public offer during the year. Hence the reporting
requirement under clause 3(x)(a) is not applicable to the company.
b) According to the information and explanations given to us and on the basis of
examination of records, the company has not made any preferential allotment or private
placement of shares or convertible debentures (fully, partially or optionally convertible)
during the year.
b) According to the information and explanations given to us and on the basis of
examination of records, the company has not made any preferential allotment or private
placement of shares or convertible debentures (fully, partially or optionally convertible)
during the year.
Therefore, the provisions of clause (x)(b) of the Order are not applicable to the
company.
xi. a) Based on our audit procedures performed for the purpose of reporting the true
and fair view of the Standalone Financial Statements and on the basis of information and
explanations given by the management, no fraud by the Company or on the Company has been
noticed or reported during the year.
b) According to the information and explanation given to us, no report U/s 143 (12) of
the Companies Act has been filed by the auditors in Form ADT-4 as prescribed under rule 13
of Companies (Audit and Auditors) Rules, 2014 with the Central Government.
c) According to the information and explanation given to us, no whistle-blower
complaints received during the year by the company.
xii. In our opinion and according to the information and explanations given 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 and based on our
examination of records of the Company, the transactions entered with related parties are
in compliance with provisions of section 177 and 188 of the Act, where applicable and the
details of such transactions are disclosed in the Standalone Financial Statements as
required by the applicable accounting standards.
xiv. a) According to the information and explanation given to us, the company has an
internal audit system commensurate with the size and nature of its business.
b) We have considered the internal audit reports of the company issued till date, for
the period under audit.
xv. In our opinion and according to the information and explanations given to us and
based on our examination of records of the Company, the Company during the year has not
entered into any non-cash transactions with directors or persons connected with the
directors covered under the provisions of sec 192 of the Act and accordingly the
provisions of clause (XV) of the Order are not applicable to the Company.
xvi. a) In our opinion and according to the information and explanations given to us,
the Company is not required to be registered under section 45-IA of the Reserve Bank of
India Act, 1934.
b) In our opinion and according to the information and explanations given to us, the
company has not conducted any non-banking financial or housing finance activities.
Therefore, the provisions of clause (xvi)(b) are not applicable to the Company.
c) In our opinion and according to the information and explanations given to us, the
company is not a Core Investment Company (CIC) as defined in the regulations made by the
Reserve Bank of India. Therefore, the provisions of clause (xvi)(c) & (d) are not
applicable to the company.
xvii. In our opinion and according to the information and explanations given to us and
based on our examination of records of the Company, the Company has not incurred cash
losses in the financial year and immediately preceding financial year.
xviii. There has been no resignation of the statutory auditors during the year and
accordingly this clause is not applicable.
xix. According to the information and explanations given to us and on the basis of the
financial ratios, ageing and expected dates of realization of financial assets and payment
of financial liabilities, other information accompanying the financial statements, our
knowledge of the Board of Directors and management plans and based on our examination of
the evidence supporting the assumptions, nothing has come to our attention, which causes
us to believe that any material uncertainty exists as on the date of the audit report that
company is not capable of meeting its liabilities existing at the date of balance sheet as
and when they fall due within a period of one year from the balance sheet date. We,
however, state that this is not an assurance as to the future viability of the company. We
further state that our reporting is based on the facts up to the date of the audit report
and we neither give any guarantee nor any assurance that all liabilities falling due
within a period of one year from the balance sheet date, will get discharged by the
company as and when they fall due.
xx. a. According to the information and explanation given to us, there are no unspent
amount in respect of other than ongoing projects which are required to be transferred to a
Fund specified in Schedule VII to the Companies Act, within a period of 6 months of the
expiry of the financial year in compliance with second proviso to Sec 135 (5) of the said
Act.
b. According to the information and explanations given to us, in respect of ongoing
projects, the company has transferred unspent amount to a special account, within a period
of thirty days from the end of the financial year in compliance with section 135(6) of the
said Act
xxi. According to the information and explanations given to us and based on our
examination of records of the Company, no qualifications or adverse remarks have been
reported by the respective auditors in the Companies (Auditors Report) Order (CARO)
reports of the companies included in the consolidated financial statements.
|
For G. D. Apte & Co. |
|
Chartered Accountants |
|
Firm registration number: 100515W |
|
Mayuresh V. Zele |
|
Partner |
| Place: Mumbai |
Membership No: 150027 |
| Date: August 01, 2023 |
UDIN:23150027BGYKHU8178 |
ANNEXURE "B" TO THE INDEPENDENT AUDITORS REPORT ON STANDALONE FINANCIAL
STATEMENTS OF SAVITA OIL TECHNOLOGIES LIMITED
(Referred to in paragraph II (f) under ‘Report on Other Legal and Regulatory
Requirements of our report of even date to the members of Savita Oil Technologies Limited
on the Standalone Financial Statements for the year ended March 31, 2023)
REPORT ON THE INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING UNDER CLAUSE (i) OF
SUB-SECTION 3 OF SECTION 143 OF THE COMPANIES ACT, 2013 ("THE ACT")
We have audited the internal financial controls over financial reporting of Savita Oil
Technologies Limited ("the Company") as of March 31, 2023 in conjunction with
our audit of the Standalone Ind AS Financial Statements of the Company for the year ended
on that date.
MANAGEMENTS RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Companys management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in 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 include the design, implementation and maintenance of
adequate internal financial controls that were operating effectively for ensuring the
orderly and efficient conduct of its business, including adherence to companys policies,
the safeguarding of its assets, the prevention and detection of frauds and errors, the
accuracy and completeness of the accounting records, and the timely preparation of
reliable financial information, as required under the Companies Act, 2013.
AUDITORS RESPONSIBILITY
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note and the Standards on Auditing issued by the ICAI and deemed to be
prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to
an audit of internal financial controls. Those Standards and the Guidance Note require
that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether adequate internal financial controls over financial
reporting was established and maintained and if such controls operated effectively in all
material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgment, including the assessment of the risks of
material misstatement of the Standalone Financial Statements, whether due to fraud or
error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
over financial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of Standalone Financial Statements for external purposes in accordance with
generally accepted accounting principles. A companys internal financial control over
financial reporting includes those policies and procedures that:
(1) pertains to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of Standalone Financial Statements in accordance with generally accepted
accounting principles, and that receipts and expenditures of the company are being made
only in accordance with authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the companys assets that could have a
material effect on the Standalone Financial Statements.
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the 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 given
to us, the Company has, in all material respects, an adequate internal financial controls
system over financial reporting and such internal financial controls over financial
reporting were operating effectively as of March 31, 2023, based on the internal control
over financial reporting criteria established by the Company considering the essential
components of internal control stated in the Guidance Note issued by the ICAI.
|
For G.D. Apte & Co. |
|
Chartered Accountants |
|
Firm registration number: 100515W |
|
Mayuresh V. Zele |
|
Partner |
| Place: Mumbai |
Membership No: 150027 |
| Date: August 01, |
2023 UDIN: 23150027BGYKHU8178 |
+91-9892691696
