We have audited the accompanying standalone financial
statements of SAVITA OIL TECHNOLOGIES LIMITED
("the Company"), which comprise the Balance Sheet as
at March 31, 2026, 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, 2026, 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:
Inventories of raw material, packing materials,
semi-finished goods and finished goods form
a material component of the balance sheet
and directly impact cost of goods sold. Their
valuation involves judgement in applying
weighted average input cost rates and overhead
absorption rates, where errors in underlying data
can result in material misstatement. Accordingly,
this area was identified as a Key Audit Matter.
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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.
• 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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Sr. No.
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Key Audit Matter
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Auditor’s Response
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2.
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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.
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• 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
preparation of the other information. The other information
comprises the information included in Annual Report but
does not include the standalone financial statements and
our auditor's report thereon which we obtained prior to
the date of this auditor's report. The Board of Directors'
report along with other information is expected to be
made available to us after the date of this auditor's report.
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 the audit or otherwise appears to be
materially misstated.
Based on the work we have performed, if we conclude that
there is a material misstatement of this other information,
we are required to report that fact.
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.
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
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, 2026
taken on record by the Board of Directors, none
of the directors is disqualified as on March 31,
2026 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. The management has represented that,
a) to the best of its knowledge and
belief, 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) to the best of its knowledge and
belief, 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.
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. a) 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.
b) Company has not declared and paid
any interim dividend during the year.
c) As stated in note 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 31st March, 2026 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
Place : Mumbai Membership No: 150027
Date : 7th May, 2026 UDIN: 26150027UYKSTQ7865
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