We have audited the accompanying standalone financial
statements of SAVITA OIL TECHNOLOGIES LIMITED
("the Company"), which comprise the Balance Sheet as
at March 31, 2025, 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 material 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, 2025, 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 Auditor's 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 ICAI's 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 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.
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Sr.
No.
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Key Audit Matter
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Auditor’s Response
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1.
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Inventory valuation and consumption of raw and
packing materials:
Accuracy of recording of inventory & related
consumption at appropriate values.
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We have performed the following procedures in relation to
the accuracy of recorded consumption and inventory:
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.
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Sr.
No.
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Key Audit Matter
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Auditor’s Response
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• Verified the reports of physical verification of inventory
carried out by the management and corrective actions
taken to rectify the identified discrepancies (if any).
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2.
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Evaluation of uncertain tax positions:
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We have performed the following procedures:
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The Company has material uncertain tax positions
including matters under dispute which involves
significant judgment to determine the possible
outcome of these disputes.
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Obtained understanding of key uncertain tax positions;
Obtained details of completed tax assessments and demands
upto the year ended March 31, 2025 from the management;
We have;
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i. Discussed with management and evaluated the
management's underlying key assumptions in estimating
the tax provision;
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ii. Assessed management's estimate of the possible
outcome of the disputed cases; and
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iii. Considered legal precedence and other rulings in
evaluating management's position on these uncertain
tax positions.
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Additionally, considered the effect of new information in
respect of uncertain tax positions as at April 1, 2024 to
evaluate whether any change was required to management's
position on these uncertainties.
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3.
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Assessment of contingent liabilities and
provisions related to Taxation, Litigations and
claims:
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 management's
judgement to ensure appropriate accounting or
disclosures.
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.
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Our audit procedures included:
• As part of our audit procedures we have assessed
Management's processes to identify new possible
obligations and changes in existing obligations
for compliance with company policy and Ind AS 37
requirements.
• 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).
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• We have held regular discussions with Management and
internal legal department.
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• 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
Company's advisors and assessing whether there was an
indication of management bias.
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• We discussed the status in respect of significant
provisions with the Company's internal tax and legal
team.
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• We performed retrospective review of management
judgements relating to accounting estimate included in
the financial statement of prior year and compared with
the outcome.
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INFORMATION OTHER THAN THE STANDALONE
FINANCIAL STATEMENTS AND AUDITOR'S REPORT
THEREON
The Company's 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, Board's Report
including Annexures to Board's Report, Business
Responsibility Report, Corporate Governance and
Shareholder's Information, but does not include the
standalone financial statements and our auditor's
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 Company's 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 Company's
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
Company's financial reporting process.
AUDITOR'S 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 auditor's 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. Misstatements 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 standalone financial
statements. As part of an audit in accordance with SAs, we
exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement
of the standalone 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
controls 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 management's
use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a
material uncertainty exists related to events or
conditions that may cast significant doubt on the
Company's ability to continue as a going concern.
If we conclude that a material uncertainty exists,
we are required to draw attention in our auditor's
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 auditor's 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.
Materiality is the magnitude of misstatements in the
standalone financial statements that, individually or in
aggregate, makes it probable that the economic decisions
of a reasonably knowledgeable user of the financial
statements may be influenced. We consider quantitative
materiality and qualitative factors in (i) planning the
scope of our audit work and in evaluating the results of
our work; and (ii) to evaluate the effect of any identified
misstatements in the financial statements.
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 auditor's
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
I. As required by the Companies (Auditor's Report)
Order, 2020 ("the Order") issued by the Central
Government of India in terms of sub-section (11) of
section 143 of the Act, we give in the “Annexure A”,
a statement on the matters specified in paragraphs 3
and 4 of the Order to the extent applicable.
II. 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 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 it appears from our examination
of those books.
c) The Balance Sheet, the Statement of Profit and
Loss, the Cash Flow Statement and Statement of
Changes in Equity dealt with by this Report are
in agreement with the books of account.
d) In our opinion, the aforesaid Standalone Ind AS
Financial Statements comply with the Ind AS
specified under Section 133 of the Act, read
with Rule 3 of the Companies (Indian Accounting
Standards) Rules, 2015.
e) On the basis of the written representations
received from the directors as on March 31, 2025
taken on record by the Board of Directors, none
of the directors is disqualified as on March 31,
2025 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 B" to this report.
g) With respect to the other matters to be
included in the Auditor's Report in accordance
with Rule 11 of the Companies (Audit and
Auditors) Rules, 2014, in our opinion and to the
best of our information and according to the
explanations given to us:
i. The Company has disclosed the impact of
pending litigations on its financial position
in its Standalone Financial Statements
- Refer Note No. 27 to the Standalone
Financial Statements.
ii. The Company has made provision, as
required under the applicable law or
accounting standards, for material
foreseeable losses, if any, on long term
contracts including derivative contracts.
iii. There has been no delay in transferring
amounts, required to be transferred, to the
Investor Education and Protection Fund
by the Company.
iv. A) The management has represented that, to
the best of its knowledge and belief, other
than as disclosed in notes to accounts, no
funds have been advanced or loaned or
invested (either from borrowed funds or
share premium or any other sources or
kind of funds) by the company to in any
other persons(s) or entity(ies), including
foreign entities ("Intermediaries"), with the
understanding, whether recorded in writing
or otherwise, that the intermediary shall,
whether, directly or indirectly lend or invest
in other persons or entities identified in
any manner whatsoever by or on behalf of
the company ("Ultimate Beneficiaries") or
provide any guarantee, security or the like
on behalf of Ultimate Beneficiaries
B) The management has represented that, to
the best of its knowledge and belief, other
than as disclosed in notes to accounts, no
funds have been received by the company
from any persons(s) or entity(ies), including
foreign entities ("Funding Parties"), with the
understanding, whether recorded in writing
or otherwise, that the company shall,
whether, directly or indirectly lend or invest
in other persons or entities identified in any
manner whatsoever by or on behalf of the
Funding Party ("Ultimate Beneficiaries") or
provide any guarantee, security or the like
on behalf of Ultimate Beneficiaries
C) On the basis of audit procedures performed
that have been considered reasonable and
appropriate in the circumstances, nothing
has come to our notice that has caused us
to believe that the representations under
sub-clause (i) and (ii) of Rule 11(e), as
provided under (A) and (B) above, contain
any material mis-statement.
v. The final dividend proposed in the previous
year, declared and paid by the Company
during the year is in accordance with
section 123 of the Act, as applicable.
Company has not declared and paid any
interim dividend during the year.
As stated in note 1 (under Statement
of Changes to Equity) to the financial
statements, the Board of Directors of the
Company have proposed final dividend for
the year which is subject to the approval
of the members at the ensuing Annual
General Meeting. The amount of dividend
proposed is in accordance with section 123
of the Act, as applicable.
vi. Based on our examination, which included
test checks, the Company has used
accounting softwares for maintaining its
books of account for the financial year
ended March 31, 2025 which has a feature
of recording audit trail (edit log) facility and
the same has operated throughout the year
for all relevant transactions recorded in the
softwares. Further, during the course of our
audit we did not come across any instance
of the audit trail feature being tampered
with and the audit trail has been preserved
by the Company as per the statutory
requirements for record retention.
III. With respect to the matter to be included in the
Auditors' Report under Section 197(16) of the Act:
In our opinion, and according to the information and
explanations given to us, the remuneration paid by
the Company to its directors during the current year
is in accordance with the provisions of Section 197
of the Act. The remuneration paid to any director is
not in excess of the limit laid down under Section 197
of the Act. The Ministry of Corporate Affairs has not
prescribed other details under Section 197(16) which
are required to be commented upon by us.
For G D Apte & Co
Chartered Accountants
Firm registration number: 100515W
Mayuresh V. Zele
Partner
Membership No: 150027
UDIN : 25150027BMOMSI3962
Place : Mumbai
Date : May 19, 2025
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