To
The Members of Servoteach Industries Limited
Report on the standalone Financial Statements
We have audited the financial statements of SERVOTEACH INDUSTRIES LIMITED (‘The
Company”), which comprises the Balance Sheet as at 31st March, 2023 and the Statement
of Profit and Loss, Statement of Change in Equity and the Statement of Cash Flow for the
year then ended, and notes to the financial statements, including a summary of the
significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid standalone financial statements gives the information required
by the Companies Act, 2013 in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India, of the state of
affairs (financial position) of the company as at March 31, 2023, its loss (financial
performance) its 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) as specified under section 143(10) of the Companies Act, 2013.
Our responsibilities under those Standards are further described in the Auditors
Responsibilities for the Audit of the 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 together with the ethical requirements that are relevant
to our audit of the financial statements under the provisions of the Companies Act, 2013
and the Rules made there under, and we have fulfilled our other ethical responsibilities
in accordance with these requirements and the 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.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment were of most
significance in our audit of the financial statements of the current period. These matters
were addressed in the context of our audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
On the verification of books of accounts, it has been observed that all the revenue
earned by the company are from the trading of goods and provision of services to related
party only. There is no revenue from manufacturing operation during the year.
Other Information
The Companys Board of Directors is responsible for the other information. The other
information comprises the information included in the annual report, but does not include
the financial statements and our auditors report thereon.
Our opinion on the 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 financial statement, our responsibility is to read
the other informations and, in doing so consider whether the other the other information
is materially inconsistent with financial statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated. If, based on the work we have
performed, we concluded that there is a material misstatement of this other information,
we are required to report that fact. We have nothing to report in this regard.
Responsibility of Management for the standalone Financial Statements
The Management and Board of Directors of the Company are responsible for the matters
stated in Section134(5) of the Companies Act, 2013 (“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, changes in equity and cash flows of the
Company in accordance with the accounting principles generally accepted in India,
including the Indian Accounting Standards (‘Ind AS) specified under Section 133 of
the Act read with the Companies (Indian accounting Standards) Rule, 2015 as amended. 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 financial statements that
give a true and fair view and are free from material misstatement, whether due to fraud or
error.
In preparing the financial statement, the Board of Directors 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
the Board of Directors either intends to liquidate the Company or to cease operations, or
has no realistic alternative but to do so.
Boards of directors are also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibility
Our objectives are to obtain reasonable assurance about whether the 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 conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatement can arise from
fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with Standards on Auditing (SAs), we exercise
professional judgment and maintain professional skepticism throughout the audit. We also;
• Identify and assess the risks of material misstatement of the financial
statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal financial control relevant to the audit in
order to design audit procedures that are appropriate in the circumstances. Under section
143(3) (i) of the Act, we are also responsible for expressing our opinion on whether the
company has adequate internal financial controls system in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of managements use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to event or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the standalone financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditors report. However, future events or conditions may cause the Company to cease to
continue as a going concern.
• Evaluate the overall presentation, structure and content of the standalone
financial statements, including the disclosures, and whether the standalone financial
statements represent the underlying transactions and events in a manner that achieves fair
presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the standalone financial statements
of the current period and are therefore the key audit matters. We describe these matters
in our auditors report unless law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditors Report) Order, 2020 (“the Order”),
issued by the Central Government of India in terms of sub-section (11) of section143 of
the Act, we give in the Annexure “B” a statement on the matters Specified in
paragraphs 3 and 4 of the Order, to the extent applicable.
1. As required by section 143(3) of the Act, based on our audit, we further report
that: -
a. We have sought and obtained all the information and explanations which to the best
of 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 the
Company so far as appears from our examination of those books.
c. The Balance Sheet, the Statement of Profit and Loss, Statement of Changes in Equity
and the Statement of cash flow statement dealt with by this Report are in agreement with
the relevant books of account.
d. In our opinion, the aforesaid standalone financial statements comply with the
applicable Accounting Standards specified under Section 133 of the Act, read with Rule 7
of the Companies (Accounts) Rules 2014.
e. On the basis of written representations received from the directors as on March 31,
2023, and taken on record by the Board of Directors, none of the directors is disqualified
as on March 31,2023, from being appointed as a director in terms of Section 164(2) of the
Act.
f. With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate Report in - Annexure- “A"
g. With respect to the other materials to be included in the Auditors Report in
accordance with the requirements of section 197 (16) of the Act, as amended.
The Company has not given any remuneration to its directors during the year.
h. In our opinion and to the best of our information and according to the explanations
given to us, we report as under with respect to other matters to be included in the
Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules,
2014, as amended.
i. The Company has disclosed the impact of pending litigations on its financial
position in its standalone financial statements.
ii. The Company did not have any long-term contracts including derivative contracts as
such 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 any
sums to the Investor Education and Protection Fund, the question of delay in transferring
such sum does not arise.
For Patel Kabrawala & Co
SD/-
Chartered Accountants
Firm Reg. No. 130952W
Hardik V Patel
Partner
Membership No. 135535
UDIN:23135535BGWNFQ8708
Place: Mumbai
Date: 14-08-2023
Independent Auditor‘s Report to the Members of SERVOTEACH INDUSTRIES LTD.
Annexure - “A” to the Auditors Report
(Annexure referred to in Paragraph 1F under the heading “Report on other legal and
regulatory requirements)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 (“the Act”)
In conjunction with our audit of the standalone financial statements of the Company as
of and for the year ended 31 March 2023, we have audited the internal financial controls
over financial reporting of Servoteach Industries Limited. (“The Company”).
Managements Responsibility for Internal Financial Controls
The Respective Board of Directors of the Company are 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 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 on Audit of Internal Financial Controls Over Financial Reporting
(the “Guidance Note”) issued by ICAI and the Standards on Auditing prescribed
under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of
internal financial controls, both issued by the Institute of Chartered Accountants of
India. 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 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 Control 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 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) pertain 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 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 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 at 31 March 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 on Audit of Internal Financial
Controls Over Financial Reporting issued by the ICAI.
For Patel Kabrawala & Co
SD/-
Chartered Accountants
Firm Reg. No. 130952W
Hardik V Patel
Partner
Membership No. 135535
UDIN:23135535BGWNFQ8708
Place: Mumbai
Date: 14-08-2023
Independent Auditors Report to the Members of SERVOTEACH INDUSTRIES LTD.
Annexure- “B”
(Annexure referred to in Paragraph 1 under the heading “Report on other legal and
regulatory requirements of Our Report of Even Date.)
On the basis of such checks as we considered appropriate areas according to the
information and explanation given to us during the course of our audit, we state that:
i) In respect of the Companies fixed assets.
a) The Company has maintained proper records showing full particulars including
quantitative details and situation of fixed assets.
b) As explained to us, the fixed assets have been physically verified by the management
during the year at reasonable intervals. No material discrepancies were noticed on
verification.
c) According to the records of the company examined by us and as per the information
and explanations given to us, the company does not have any immovable property. Thus,
paragraph 3(ic) of the Order is not applicable to the company.
ii) According to information and explanations given to us, the Company does not have
any inventory during the year; therefore, the requirements of Clause (ii) of the paragraph
3 of said Order are not applicable.
iii) According to information and explanations given to us, the Company has not granted
any loans, secured or unsecured, to companies, firms or other parties covered in the
register maintained under section 189 of the Act. Accordingly, paragraph 3(iii) of the
said Order is not applicable.
iv) In our opinion and according to the information and explanations given to us, the
Company has complied with the provisions of sections 185 and 186 of the Act, in respect of
loans, investments, guarantees and security to the extent applicable to it.
v) According to the information and explanations given to us, the Company has not
accepted any deposits from the public and hence, the directives issued by the Reserve Bank
of India and provisions of the Companies Act, 2013 and rules framed there under are not
attracted.
vi) To the best of our knowledge and as explained, Central Government has not
prescribed 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
Order is not applicable to the Company.
vii) (a) According to the records of the Company and the information and explanations
given to us, the Company has been generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund, Employees State
Insurance, Income Tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax,
Cess 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 of
the company examined by us, no undisputed amounts payable in respect of Provident Fund,
Employees State Insurance, Income Tax, Service Tax, Sales Tax, Customs Duty, Excise Duty,
Value Added Tax, Cess and other material statutory dues were outstanding at the yearend
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 the
Company examined by us there are no dues of income-tax, sales-tax, service-tax, customs
duty, and excise duty, value added tax.
viii) Based on our audit procedure and as per the information and explanations given by
the management, the company has not surrendered any income for transaction not recorded in
books for any previous years in the tax assessment under income tax act 1961.
ix) Based on our audit procedures and as per the information and explanations given by
the management, the Company did not have any loans from banks, financial institutions,
government or has not issued debentures during the year.
x) According to the records of the company examined by us and as per the information
and explanations given to us, the Company has not raised any money from any Public Issue /
follow-on offer. Including debt instruments and term loan in year under review.
xi) According to the information and explanations given to us, no material fraud by the
Company or on the Company by its officers or employees has been noticed or reported during
the course of our audit.
xii) In our opinion, the Company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore, the provision of clause 3(xii) of the Order is not applicable to
the Company.
xiii) In our opinion, all the transactions with the related parties are in compliance
with sections 177 and 188 of the Act, where applicable and the details have been disclosed
in the financial statements as required by applicable accounting standard. (Refer to Note
no. 33)
xiv) (a) According to the information and explanations given to us, the company has an
internal audit system commensurate with the size and nature of its business
(b We have considered the reports of the Internal Auditors for the period under audit
xv) according to the information and explanations given to us, we report that the
Company has not entered into any non-cash transaction with directors or persons connected
with him.
xvi) In our opinion, the Company is not required to be registered under section 45-IA
of the Reserve Bank of India Act, 1934.
xvii) According to the information and explanations given to us and based on the audit
procedures conducted we are of opinion that the company has not incurred any cash losses
in the financial year but during the immediate previous financial year the company has
incurred cash loss of Rs 8.58/- lakhs
xviii) There has been no resignation of the statutory auditors during the year and
accordingly, the provisions of clause 3(xviii) of the Order is not applicable.
xix) 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 indicating that company is incapable 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) The provisions of Section 135 towards corporate social responsibility are not
applicable on the company. Accordingly, the provisions of clause 3(xx) of the Order is not
applicable.
xxi) The reporting under clause (xxi) is not applicable in respect of audit of
standalone financial statements of the Company. Accordingly, no comment has been included
in respect of said clause under this report.
For Patel Kabrawala & Co
SDI-
Chartered Accountants
Firm Reg. No. 130952W
Hardik V Patel
Partner
Membership No. 135535
UDIN:23135535BGWNFQ8708
Place: Mumbai
Date: 14-08-2023
+91-9892691696
