Mar 31, 2018
INDEPENDENT AUDITORS'' REPORT
To,
The Members of
CIL NOVA PETROCHEMICALS LIMITED
Ahmedabad
1. Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of CIL NOVA PETROCHEMICALS LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March, 2018, and the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
2. Management''s Responsibility for the Standalone Ind AS Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013("the Act") with respect to the preparation of the standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards(lnd AS) prescribed under section 133 of the Act.
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 Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
3. Auditors'' Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances.
An audit also includes evaluating the appropriateness of theaccounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
4. Opinion
In our opinion and to the best of our information and according to the explanations given to us, the afore said standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the financial position of the Company as at 31st March, 2018, and its financial performance including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
5. Other Matters
The comparative financial information of the Company for the year ended 31st March 2017 and the transition date opening balance sheet as at 1st April 2016 included in these standalone Ind AS financial statements, are based on the previously issued statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 audited by other auditor, whose report for the year ended 31st March 2017 and 31st March 2016 dated 30th May, 2017 and 23rd May, 2016 respectively expressed an unmodified opinion on those standalone financial statements, as adjusted for the differences in the accounting principles adopted by the Company on transition to the Ind AS, which have been audited by other auditor.
6. Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order,2016 ("the Order") issued by the Central Government in terms of Section 143(11) of the Act, we give in "Annexure A" a statement on the matters specified in paragraphs 3 and 4of the Order.
2. 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 Indian Accounting Standards prescribed under section 133 of the Act.
e) On the basis of the written representations received from the directors as on 31st March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 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".
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 pending litigations which would have impact its financial position in its standalone Ind AS financial statements - Refer Note 37 to the financial statements; ii. The Company does not have long-term contracts including derivative contracts for which there were any material foreseeable losses; iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended 31st March, 2018.
For, Samir M Shah & Associates |
|
Chartered Accountants, |
|
[Firm Regd. No. 122377W] |
|
Place: Ahmedabad |
Sd/- |
Date: 30/05/2018 |
(Samir M Shah) |
Partner |
|
[M. No. 111052] |
ANNEXURE "A" TO INDEPENDENT AUDITORS'' REPORT
Referred to in paragraph 6(1) of our Report of even date to the Members of CIL NOVA PETROCHEMICALS LIMITED for the year ended 31st March, 2018.
1. In respect of Fixed Assets:
(a) The Company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets on the basis of available information.
(b) As per the information and explanations given to us, the management at reasonable intervals during the year in accordance with a programme of physical verification physically verified the fixed assets and no material discrepancies were noticed on such verification as compared to the available records.
(c) As explained to us, the title deeds of all the immovable properties are held in the name of the company.
2. In respect of Inventories:
As per the information and explanations given to us, inventories were physically verified during the year by the management at reasonable intervals. No material discrepancies were noticed on such physical verification.
3. In respect of Loans and Advances granted during the year:
As regards the loans , the company has not granted any loans , secured or unsecured during the year under audit, to the companies firms and other parties covered in the register maintained under section 189 of the companies Act , 2013 and therefore, the clauses (iii) (a) to (c) of the companies (Auditor''s Report) Order, 2016 are not applicable.
4. Loans, Investments and guarantees:
According to the information and explanation given to us, the company had neither given any loan, guarantee or security, nor made any investments during the year. Hence the provisions of section 185 and 186 are not applicable. Therefore clauses (iv) of companies (Auditor''s Report) Order, 2016 is not applicable.
5. During the year, the company has not accepted any deposits and hence the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there under are not applicable to the company. Therefore clauses (v) of companies (Auditor''s Report) Order, 2016 is not applicable.
6. We have broadly reviewed the books of account maintained by the company pursuant to the companies (Cost Accounting Records) Rule,2011 prescribed by the Central Government under sub section (1) of section 148 of the Companies Act, 2013. However, we have not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
7. In respect of Statutory Dues:
(a) According to the records of the Company, the Company is by and large regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees'' state insurance, income tax, service tax, duty of customs, duty of excise, value added tax, cess and other statutory dues with the appropriate authorities applicable to it except in few cases in respect of Tax Deducted at Source. According to the information and explanations given to us, no undisputed amounts payable in respect statutory dues were outstanding as at 31st March, 2018 for a period of more than six months from the date they became payable.
(b) According to the records of the company, the dues of income tax, central sales Tax, service tax,duty of customs, duty of excise, value added tax or cess which have not been deposited on account of disputes and the forum where the dispute is pending areas under:
Name of the Statute |
Nature of the Dues |
Year |
Amount (Rs) |
Forum where dispute is pending |
Income Tax Act,1961 |
Income Tax Demand & Interest |
2010-11 |
1,141,960 |
Income Tax Appellate Tribunal |
Income Tax Demand & Interest |
2011-12 |
11,693,740 |
Income Tax Appellate Tribunal |
|
Income Tax Demand & Interest |
2012-13 |
4,340 |
Income Tax Appellate Tribunal |
|
Income Tax Demand & Interest |
2013-14 |
13,540,900 |
Commissioner of Income Tax (Appeals) |
|
Income Tax Penalty |
2008-09 |
385,618 |
Commissioner of Income Tax (Appeals) |
|
Income Tax Penalty |
2010-11 |
765,401 |
Commissioner of Income Tax (Appeals) |
|
Income Tax Penalty |
2011-12 |
12.94.840 |
Commissioner of Income Tax (Appeals) |
|
The Central Excise and Customs Act |
Excise Duty & Penalty |
2003-04 |
3,230,730 |
Custom Excise and Service Tax Appellate Tribunal |
The Finance Act, 1994 |
Service Tax & Penalty |
2004-05 |
3,398,641 |
Custom Excise and Service Tax Appellate Tribunal |
Service Tax & Penalty |
2005-06 |
146,479 |
Assistant Commissioner of Central Excise |
|
The Textile Committee Amendment Act, 1973 |
Textile Cess |
1995 to 2005 |
5,090,119 |
Textiles Committee, Government of India, Ministry of Textiles |
Gujarat Pollution Control Act |
Compensation |
2004 to 2010 |
5,164,620 |
Hiqh Court of Gujarat |
8. Based on our audit procedure and according to the information and explanation given to us, we are of the opinion that the Company has not defaulted in repayment of dues to Financial Institutions, Banks or debenture holders.
9. According to the information and explanations given to us, the company had not raised any money by way of initial public offer or further public offer (including debt instruments) during the year. According to the information and explanations given to us, and on an overall examination of the balance sheet of the company, in our opinion, the term loans taken during the year were applied for the purpose for which they were obtained.
10. Based upon the audit procedures performed and information and explanations given by the management, we report that no fraud by the Company or any fraud on the company by it''s officer or employees has been noticed or reported during the course of our audit.
11. In our opinion and according to the information and explanations given to us, the company had paid managerial remuneration which is in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V of The Companies Act, 2013.
12. In our opinion and according to the information and explanations given to us, the provisions of special statute applicable to chit funds and nidhi / mutual benefit funds / societies are not applicable to the company. Hence, clause (xii) of the Company''s (Auditor''s Report) Order, 2016 is not applicable.
13. In our opinion and according to the information and explanations given to us, the transactions entered by the company with related parties are in compliance with the provisions of section 177 and 188 of The Companies Act, 2013 and details thereof are properly disclosed in the financial statements.
14. The company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review hence provisions of sections of 42 of the Companies Act, 2013 are not applicable.
15. The company had not entered in to any non-cash transactions with the directors or persons connected with him during the year, hence section 192 of the Companies'' Act, 2013 is not applicable hence clause (xvi) of Company''s (Auditor''s Report) Order, 2016 is not applicable.
16. In our opinion and according to the information and explanation given to us the company is not required to be registered under section 45-IA of Reserve Bank of India Act, 1934.
For, Samir M Shah & Associates |
|
Chartered Accountants, |
|
[Firm Regd.No. 122377W] |
|
Place: Ahmedabad |
Sd/- |
Date: 30/05/2018 |
(Samir M Shah) |
Partner |
|
[M. No. 111052] |
ANNEXURE "B" TO INDEPENDENT AUDITORS'' REPORT
Referred to in paragraph 6(2)(f) of our Report of even date to the Members CIL NOVA PETROCHEMICALS LIMITED for the year ended 31st March, 2018.
Report on the Internal Financial Controls 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 CIL NOVA PETROCHEMICALS LIMITED as of 31st March 2018, in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date. Management''s Responsibility for Internal Financial Controls
The Company''s 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 issued by the Institute of Chartered Accountants of India. 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 company''s 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 Company''s 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") and the Standards on Auditing, issued by 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, both applicable to an audit of Internal Financial Controls and, 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 auditor''s 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 Company''s internal financial controls system over financial reporting. Meaning of Internal Financial Controls over Financial Reporting
A company''s 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 company''s 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 company''s assets that could have a material effect on the financial statements. Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over 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, 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 31st March 2018, 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.
For, Samir M Shah & Associates |
|
Chartered Accountants, |
|
[Firm Regd. No. 122377W] |
|
Place: Ahmedabad |
Sd/- |
Date: 30/05/2018 |
(Samir M Shah) |
Partner |
|
[M.No.111052] |
Mar 31, 2016
To,
The Members of
CIL NOVA PETROCHEMICALS LIMITED Ahmedabad
1. Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of CIL NOVA PETROCHEMICALS LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
2. Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(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 and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules,2014. 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.
3. Auditor''s Responsibility
Our responsibility is to express an opinion on these Standalone Financial Statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
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.
4. Opinion
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 Act, 2013 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:-
i. In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2016;
ii. In the case of the Statement Profit and Loss Account, of the profit for the year ended on that date; and
iii. In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
5. Report on Other Legal and Regulatory Requirements
(i) As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the Annexure-A a statement on the matters specified in paragraphs 3 and 4 of the Order.
(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, and the Cash Flow Statement 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 Accounting Standards specified under Section 133 of the Act,2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the directors as on 31st March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 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".
(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 financial statements - Refer Note 26 to the financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
ANNEXURE "A" TO INDEPENDENT AUDITORS'' REPORT
Referred to in paragraph 5 (i) of our Report of even date to the Members of CIL NOVA PETROCHEMICALS LIMITED for the year ended 31st March, 2016.
1. In respect of Fixed Assets :
(a) The Company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets on the basis of available information.
(b) As per the information and explanations given to us, the management at reasonable intervals during the year in accordance with a programme of physical verification physically verified the fixed assets and no material discrepancies were noticed on such verification as compared to the available records.
(c) As explained to us, the title deeds of all the immovable properties are held in the name of the company.
2. In respect of its Inventories :
As per the information and explanations given to us, inventories were physically verified during the year by the management at reasonable intervals. No material discrepancies were noticed on such physical verification.
3. In respect of Loans and Advances granted during the year:
As regards the loans , the company has not granted any loans , secured or unsecured during the year under audit, to the companies firms and other parties covered in the register maintained under section 189 of the companies Act , 2013 and therefore, the clauses (iii) (a) to (c) of the companies (Auditor''s Report) Order, 2016 are not applicable.
4. Loans, Investments and guarantees:
According to the information and explanation given to us, the company had neither given any loan, guarantee or security, nor made any investments during the year. Hence the provisions of section 185 and 186 are not applicable. Therefore clauses (iv) of companies (Auditor''s Report) Order, 2016 is not applicable.
5. During the year, the company has not accepted any deposits and hence the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there under are not applicable to the company. Therefore clauses (v) of companies (Auditor''s Report) Order, 2016 is not applicable.
6. We have broadly reviewed the books of account maintained by the company pursuant to the companies (Cost Accounting Records) Rule,2011 prescribed by the Central Government under sub section (1) of section 148 of the Companies Act, 2013. However, we have not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
7. In respect of Statutory Dues :
(a) According to the records of the Company, the Company is by and large regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees'' state insurance, income tax, Tax Deducted at Source, Value Added Tax tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and other statutory dues with the appropriate authorities applicable to it. According to the information and explanations given to us, no undisputed amounts payable in respect statutory dues were outstanding as at 31st March, 2016 for a period of more than six months from the date they became payable.
(b) According to the records of the company, the dues of income tax, sales tax, wealth tax or service tax or duty of customs or duty of excise or value added tax or cess which have not been deposited on account of disputes and the forum where the dispute is pending are as under:
Name of the Statute |
Nature of the Dues |
Year |
Amount in Rs. |
Forum where dispute is pending |
Income Tax Act,1961 |
Income Tax Demand & Interest |
2010-11 |
2,719,970 |
Income Tax Appellate Tribunal |
Income Tax Demand & Interest |
2011-12 |
23,721,760 |
Income Tax Appellate Tribunal |
|
Income Tax Demand & Interest |
2012-13 |
16,262,700 |
Commissioner of Income Tax (Appeals) |
|
The Central Excise and Customs Act |
Excise Duty & Penalty |
2003-04 |
3,230,730 |
Custom Excise and Service Tax Appellate Tribunal |
Excise Duty & Penalty |
2004-05 |
3,398,641 |
Custom Excise and Service Tax Appellate Tribunal |
|
Excise Duty & Penalty |
2005-06 |
146,479 |
Assistant/Additional Commissioner of Central Excise |
|
Excise Duty & Penalty |
2006-07 & 2007-08 |
1,959,742 |
Commissioner of Excise and Customs (Appeals) |
|
The Textile Committee Amendment Act, 1973 |
Textile Cess |
1995 to 2005 |
5,090,119 |
Textiles Committee, Government of India, Ministry of Textiles |
8. Based on our audit procedure and according to the information and explanation given to us, we are of the opinion that the Company has not defaulted in repayment of dues to a Financial Institutions, Banks or debenture holders.
9. According to the information and explanations given to us, the company had not raised any money by way of public issue during the year. According to the information and explanations given to us, and on an overall examination of the balance sheet of the company, in our opinion, the term loans taken during the year were applied for the purpose for which they were obtained.
10. Based upon the audit procedures performed and information and explanations given by the management, we report that no fraud by the Company or any fraud on the company by it''s officer or employees has been noticed or reported during the course of our audit.
11. In our opinion and according to the information and explanations given to us, the company had paid managerial remuneration which is in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V of The Companies Act, 2013.
12. In our opinion and according to the information and explanations given to us, the provisions of special statute applicable to chit funds and nidhi / mutual benefit funds / societies are not applicable to the company. Hence, clause (xii) of the Company''s (Auditor''s Report) Order, 2016 is not applicable.
13. In our opinion and according to the information and explanations given to us, the transactions entered by the company with related parties are in compliance with the provisions of section 177 and 188 of The Companies Act, 2013 and details thereof are properly disclosed in the financial statements.
14. The company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review hence provisions of sections of 42 of the Companies Act, 2013 are not applicable.
15. The company had not entered in to any non-cash transactions with the directors or persons connected with him during the year, hence section 192 of the Companies'' Act , 2013 is not Applicable. And clause (xvi) of Company''s (Auditor''s Report) Order, 2016 is not applicable.
16. In our opinion and according to the information and explanation given to us the company is required to be registered under section 45-IA of Reserve Bank of India Act, 1934, and registration certificate for the same has been obtained.
ANNEXURE "B" TO INDEPENDENT AUDITORS'' REPORT
Referred to in paragraph 4(ii)(f) of our Report of even date to the Members of CIL NOVA PETROCHEMICALS LIMITED for the year ended 31st March, 2016.
Report on the Internal Financial Controls 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 CIL NOVA PETROCHEMICALS LIMITED as of 31st March 2016, in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s 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 issued by the Institute of Chartered Accountants of India. 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 company''s 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 Company''s 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") and the Standards on Auditing, issued by 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, both applicable to an audit of Internal Financial Controls and, 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 auditor''s 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 Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s 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 company''s 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 company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over 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, 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 31st March 2016, 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.
For, J. T. Shah & Co.
Chartered Accountants,
[FRN No. 109616W]
(J. T. Shah)
Place: Ahmedabad Partner
Date : 23/05/2016 [M. No. 3983]
Mar 31, 2015
We have audited the accompanying standalone financial statements of CIL
NOVA PETROCHEMICALS LIMITED ("the Company"), which comprise the Balance
Sheet as at 31st March, 2015, the Statement of Profit and Loss, the
Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
2. Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(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 and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules,2014. 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.
3. Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
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.
4. Opinion
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 Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India:-
i. In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
ii. In the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
iii. In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
5. Report on Other Legal and Regulatory Requirements
i. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of sub-
section (11) of section 143 of the Companies Act,2015, we give in the
Annexure a statement on the matters specified in paragraphs 3 and 4 of
the Order.
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, and the Cash
Flow Statement 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 Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) 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 financial statements - Refer Note 26 to the
financial statements;
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses;
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO THE AUDITORS REPORT
Referred to in paragraph 5 (i) of our Report of even date to the
Members of CIL NOVA PETROCHEMICALS LIMITED for the year ended 31st
March, 2015.
1. In respect of Fixed Assets :
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets on the
basis of available information.
(b) As per the information and explanations given to us, the management
at reasonable intervals during the year in accordance with a programme
of physical verification physically verified the fixed assets and no
material discrepancies were noticed on such verification as compared to
the available records.
2. In respect of its Inventories :
(a) The inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) On the basis of our examination of the records of inventory, we are
of opinion that the company is maintaining proper records of inventory.
The discrepancies noticed on verification between the physical stocks
and books records were not material.
3. In respect of Loans and Advances granted during the year.
As regards the loans , the company has not granted any loans, secured
or unsecured during the year under audit, to the companies, firms and
other parties covered in the register maintained under section 189 of
the Companies Act, 2013 and therefore, the clauses (iii) (a) and (b) of
the Companies (Auditor's Report) Order,2015 are not applicable.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, no major continuing failures to correct major weaknesses has
been observed.
5. During the year, the company has not accepted any deposits and
hence the directives issued by the Reserve Bank of India and the
provisions of sections 73 to 76 or any other relevant provisions of the
Companies Act and the rules framed there under are not applicable to
the company.
6. As per the information and explanation provided to us the company
is not required to maintain the cost records as per the provisions of
Companies(Cost Records and Audit) Rules,2014, hence Clause (vi) of the
Companies (Auditor's Report) Order,2015.
7. In respect of Statutory Dues :
(a) According to the records of the Company, the Company is by and
large regular in depositing with appropriate authorities undisputed
statutory dues including provident fund, employees' state insurance,
income tax, sales tax, wealth tax, service tax, duty of customs, duty
of excise, value added tax, cess and any other statutory dues with the
appropriate authorities applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect statutory dues were outstanding
as at 31st March, 2015 for a period of more than six months from the
date they became payable.
(c) According to the records of the company, the dues of income tax,
sales tax, wealth tax or service tax or duty of customs or duty of
excise or value added tax or cess which have not been deposited on
account of disputes and the forum where the dispute is pending are as
under:
Name of the Statute Nature of the Dues Year Amount in
Wealth Tax Act,1957 Wealth Tax 2007-08 256,434
Income Tax Act,1961 Income Tax Demand 2010-11 2,719,970
Income Tax Demand 2011-12 23,721,760
The Central Excise Excise Duty & Penalty 2003-04 3,230,730
and Customs Act
Excise Duty & Penalty 2004-05 3,398,641
Excise Duty & Penalty 2005-06 146,479
Excise Duty & Penalty 2006-07 1,959,742
& 2007-08
Excise Duty & Penalty 2006-07 94,093
The Textile Committee Textile Cess 1995 to 2005 5,090,119
Amendment Act, 1973
Name of the Statute Forum where dispute is pending
Wealth Tax Act,1957 Commissioner of Income Tax (Appeals)
Income Tax Act,1961 Income Tax Appellate Tribunal
Commissioner of Income Tax (Appeals)
The Central Excise Custom Excise and Service Tax Appellate
and Customs Act Tribunal
Custom Excise and Service Tax Appellate
Tribunal
Assistant/Additional Commissioner of
Central Excise
Commissioner of Excise and Customs
(Appeals)
Custom Excise and Service Tax Appellate
Tribunal
Textiles Committee, Government of India,
The Textile Committee Ministry of Textiles
Textile Cess Amendment
Act, 1973
(d) During the year no amount is required to transfer to the investor
education and protection fund and hence clause (c) of clause (vii) of
the Companies (Auditor's Report) Order,2015 is not applicable to the
company.
8. The company has no accumulated losses and has not incurred any cash
losses during the financial year under review or in the immediately
preceding financial year.
9. Based on our audit procedure and according to the information and
explanation given to us, we are of the opinion that the Company has not
defaulted in repayment of dues to a Financial Institutions, Banks or
debenture holders.
10. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
11. According to the information and explanations given to us, during
year under review the company has not taken any term loans during the
year.
12. Based upon the audit procedures performed and information and
explanations given by the management, we report that no material fraud
on or by the Company has been noticed or reported during the course of
our audit.
For J. T. Shah & Co.
Chartered Accountants
(FRN No. 109616W)
Sd/-
( J.T. Shah)
Date : 30/05/2015 Partner
Place : Ahmedabad (M. No. 3983)
Mar 31, 2014
We have audited the accompanying financial statements of CIL NOVA
PETROCHEMICALS LIMITED ("the Company"), which comprise the Balance
Sheet as at March 31, 2014, and the Statement of Profit and Loss and
Cash Flow Statement for the year on that date annexed thereto (herein
after referred to as financial statements), and a summary of
significant accounting policies and other explanatory information.
2. Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act") read with the General Circular
15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs
in respect of section 133 of the Companies Act, 2013. This
responsibility includes the design, implementation and maintenance of
internal control 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.
3. Auditors'' Responsibility-
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the Company''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
4. Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
i. In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
ii. In the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
iii. In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
5. Report on Other Legal and Regulatory Requirements
i. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of sub-
section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
ii. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards notified under
the Companies Act,1956 read with the General Circular 15/2013 dated
13th September 2013 of the Ministry of Corporate Affairs in respect of
section 133 of the Companies Act, 2013.
e) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS REPORT Referred to in paragraph 5 (i) of our
Report of even date to the Members of CIL NOVA PETROCHEMICALS LIMITED
for the year ended 31st March, 2014.
1. In respect of Fixed Assets:
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets.
b. As per the information and explanations given to us, the management
at reasonable intervals during the year in accordance with a programme
of physical verification physically verified the fixed assets and no
material discrepancies were noticed on such verification as compared to
the available records.
c. In our opinion, the Company has not disposed off any major /
substantial part of the fixed assets during the year and the going
concern status of the company is not affected.
2. In respect of its Inventories:
a. The inventory other than the inventory of work in progress has been
physically verified during the year by the management. We have been
informed that looking at the manufacturing process; it is not possible
to physically verify the inventory of work in progress. In our opinion,
the frequency of verification is reasonable.
b. The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c. On the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and books records were not material.
3. In respect of loans, secured or unsecured, granted or taken by the
company to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
a. During the year under audit, the company has not granted any loans,
secured or unsecured, to the companies, firms and other parties covered
in the register maintained under section 301 of the Companies Act, 1956
hence clause 4 (iii) (a), (iii) (b), (iii) (c) and (iii) (d) of the
Companies (Auditor''s Report) Order, 2003 are not applicable.
b. There is One party covered in the register maintained under section
301 of the Companies Act, 1956 from whom the company has taken loans.
The maximum amount involved during the year was Rs.9,38,42,300/- and the
year-end balance of loans taken from such parties was Rs. 9,38,42,300/-.
c. In our opinion and according to the information and explanations
given to us, in case of loans taken during the year, the rates of
interest, wherever applicable and other terms and conditions are not
prima facie prejudicial to the interest of the company.
d. In respect of loans taken by the company, the company has taken
interest free loans and hence question of payment of interest does not
arise. The company is regular in repayment of principal.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, no major weakness has been noticed in the internal controls.
5. In respect of contracts or arrangements covered under Section 301 of
the Companies Act, 1956:
a. Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the contracts or arrangements that need to be entered into
the register maintained under section 301 have been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the registers maintained under section 301 in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
6. The company has not accepted any deposits from public.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
company pursuant to the companies (Cost Accounting Records) Rule,2011
prescribed by the Central Government under section 209 (1) (d) of the
Companies Act, 1956 and are of the opinion that prime facie the
prescribed accounts and records have been maintained. However, we have
not made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
9. In respect of Statutory Dues:
a. According to the records of the Company, the Company is by and large
regular in depositing with appropriate authorities undisputed statutory
dues including wealth tax, Service Tax, Gujarat Valued Added Tax,
Central Sales Tax, Professional Tax, Tax Deducted at Source, Custom
duty, Provident fund, excise duty, Cess and other statutory dues
applicable to it with the appropriate authorities.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Service Tax,
Customs Duty, Gujarat Valued Added Tax, Central Sales Tax and Excise
Duty were outstanding as at 31st March, 2014 for a period of more than
six months from the date they became payable except Investor Education
& Protection Fund of Rs.3,38,715/- which is outstanding for more than six
months from the date they became due.
c. On the basis of our examination of the records, following disputed
statutory dues have not been deposited with the appropriate
authorities;
Name of the Statute Nature of the Dues Amount in
Rs.
The Income Tax Act, 1961 Interest on Income Tax 2,72,135
The Income Tax Act, 1961 Income Tax 27,19,970
The Income Tax Act, 1961 Penalty 1,33,650
3,49,750
11,050
Wealth Tax Act,1957 Wealth Tax 2,56,434
The Central Excise and Excise Duty and Penalty 32,30,730
Customs Act 33,98,641
The Central Excise and Excise Duty and Penalty 19,59,742
Customs Act
The Central Excise and Excise Duty and Penalty 1,46,479
Customs Act
The Textile Committee Textile Cess 50,90,119
Amendment Act, 1973
Name of the Statue Year Forum where dispute is pending
The Income Tax Act, 1961 2001-02 The Income Tax Appellate Tribunal
The Income Tax Act, 1961 2010-11 Commissioner of Income Tax
(Appeals)
The Income Tax Act, 1961 2000-01 Commissioner of Income Tax,
(Appeals)
2001-02
2003-04
Wealth Tax Act,1957 2007-08 Commissioner of Income Tax
(Appeals)
The Central Excise and
Customs Act 2003-04 Custom Excise and Service Tax
2004-05 Appellate Tribunal
The Central Excise and
Customs Act 2006-07 Commissioner of Excise and Customs
& 2007-08 (Appeals)
The Central Excise and
Customs Act 2005-06 Assistant/Additional Commissioner
of Central Excise
The Textile Committee
Amendment Act, 1973 1995 to
2005 Textiles Committee,
Government of
India, Ministry of Textiles
10. The accumulated losses at the end of the financial year are not
more than fifty percent of its net worth. The Company has not incurred
cash loss during the year under audit and in the immediately preceding
financial year.
11. Based on our audit procedure and according to the information &
explanations given to us, we are of the opinion that the company has
not defaulted in repayment of dues to banks.
12. Based on our examination of documents and records and information
and explanations given to us, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. The provisions of any special statute applicable to Chit Fund,
Nidhi or Mutual benefit Fund/Societies are not applicable to the
Company. Therefore, clause 4 (xiii) of the Companies (Auditor''s
Report) Order, 2003 is not applicable to the company.
14. The Company is not dealing or trading in shares, securities,
debentures or other investments and hence, the requirements of Para 4
(xiv) are not applicable to the Company.
15. As per the information provided to us, the Company has not given
any guarantee for loans taken by others from bank or financial
institutions.
16. The company has not obtained any term loans from banks or financial
institutions during the year under audit.
17. According to the information and explanations given to us and on
the basis of an overall examination of the balance sheet of the
company, we report that no funds raised on short-term basis have been
used for long-term purpose.
18. During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under Section 301 of the Companies Act, 1956.
19. During the year, the company has not issued any debentures.
20. During the year, the Company has not raised any money by way of
Public issues.
21. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the year.
For J. T. Shah & Co.
Chartered Accountants
(FRN No. 109616W)
Sd/-
( J.T. Shah)
Date : 30/05/2014 Partner
Place : Ahmedabad (M. No. 3983)
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of CIL NOVA
PETROCHEMICALS LIMITED ("the Company"), which comprise the Balance
Sheet as at March 31, 2013, and the Statement of Profit and Loss and
Cash Flow Statement for the year then ended and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control 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.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
i. In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
ii. In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
iii. In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
subsection (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956.
e) On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956
(Referred to in paragraph 1 of "Report on Other Legal and regulatory
Requirements" of our report of even date.)
1. In respect of Fixed Assets:
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets.
b. As per the information and explanations given to us, the management
at reasonable intervals during the year in accordance with a programme
of physical verification physically verified the fixed assets and no
material discrepancies were noticed on such verification as compared to
the available records.
c. In our opinion, the Company has not disposed off any major /
substantial part of the fixed assets during the year and the going
concern status of the company is not affected.
2. In respect of its Inventories:
a. The inventory other than the inventory of work in progress has been
physically verified during the year by the management. We have been
informed that looking at the manufacturing process; it is not possible
to physically verify the inventory of work in progress. In our opinion,
the frequency of verification is reasonable.
b. The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c. On the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and books records were not material.
3. In respect of loans, secured or unsecured, granted or taken by the
company to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
a. During the year under audit, the company has not granted any loans,
secured or unsecured, to the companies, firms and other parties covered
in the register maintained under section 301 of the Companies Act, 1956
hence clause 4 (iii) (a), (iii) (b), (iii) (c) and (iii)
(d) of the Companies (Auditor''s Report) Order, 2003 are not applicable.
b. There is One party covered in the register maintained under section
301 of the Companies Act, 1956 from whom the company has taken loans.
The maximum amount involved during the year was Rs. 9,38,42,300/- and the
year-end balance of loans taken from such parties was Rs. 9,38,42,300/-.
c. In our opinion and according to the information and explanations
given to us, in case of loans taken during the year, the rates of
interest, wherever applicable and other terms and conditions are not
prima facie prejudicial to the interest of the company.
d. In respect of loans taken by the company, the company has taken
interest free loans and hence question of payment of interest does not
arise. The company is regular in repayment of principal.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, no major weakness has been noticed in the internal controls.
5. In respect of contracts or arrangements covered under Section 301 of
the Companies Act, 1956:
a. Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the contracts or arrangements that need to be entered into
the register maintained under section 301 have been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the registers maintained under section 301 in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
6. The company has not accepted any deposits from public.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
company pursuant to the companies (Cost Accounting Records) Rule,2011
prescribed by the Central Government under section 209 (1) (d) of the
Companies Act, 1956 and are of the opinion that prime facie the
prescribed accounts and records have been maintained. However, we have,
however not made a detailed examination of the cost records with a view
to determine whether they are accurate or complete.
9. In respect of Statutory Dues:
a. According to the records of the Company, the Company is by and large
regular in depositing with appropriate authorities undisputed statutory
dues including wealth tax, Service Tax, Gujarat Valued Added Tax,
Central Sales Tax, Professional Tax, Tax Deducted at Source, Custom
duty, Provident fund, excise duty, Cess and other statutory dues
applicable to it with the appropriate authorities. However, the Company
is not regular in depositing Advance Income Tax.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Service Tax,
Customs Duty, Gujarat Valued Added Tax, Central Sales Tax and Excise
Duty were outstanding as at 31st March, 2013 for a period of more than
six months from the date they became payable except Investor Education
& Protection Fund of Rs.3,38,715/- and Income Tax of Rs.40,24,162/-
pertaining to current financial year which is outstanding for more than
six months from the date they became due.
c. On the basis of our examination of the records, following disputed
statutory dues have not been deposited with the appropriate
authorities;
Name of
the Statute Nature of
the Dues Amount Year Forum where dispute
is pending
(Amount in Rs.)
The Income
Tax Act,
1961 Interest on
Income Tax 2,72,135 2001-02 The Income Tax
Appellate Tribunal
The Income
Tax Act,
1961 Penalty 1,33,650 2000-01 Commissioner of
Income Tax, Appeals
3,49,750 2001-02
11,050 2003-04
The
Central
Excise and Excise Duty
and Penalty 17,67,07,754 June 2001 Custom Excise and
Service Tax
Customs
Act to 2007 Appellate Tribunal
The
Central
Excise and Excise Duty
and Penalty 19,59,742 2006-07 Commissioner of
Excise and Customs
Customs
Act & 2007-08 (Appeals)
The
Central
Excise and Excise Duty
and Penalty 1,46,479 2005-06 Assistant/Addi
tional Commissioner
of
Customs
Act Central Excise
The
Textile
Committee Textile Cess 50,90,119 1995 to
2005 Textiles Committee,
Government of
Amendment
Act, 1973 India, Ministry
of Textiles
10. The accumulated losses at the end of the financial year are not
more than fifty percent of its net worth. The Company has not incurred
cash loss during the year under audit and in the immediately preceding
financial year.
11. Based on our audit procedure and according to the information &
explanations given to us, we are of the opinion that the company has
not defaulted in repayment of dues to banks.
12. Based on our examination of documents and records and information
and explanations given to us, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. The provisions of any special statute applicable to Chit Fund,
Nidhi or Mutual benefit Fund/Societies are not applicable to the
Company. Therefore, clause 4 (xiii) of the Companies (Auditor''s Report)
Order, 2003 is not applicable to the company.
14. The Company is not dealing or trading in shares, securities,
debentures or other investments and hence, the requirements of Para 4
(xiv) are not applicable to the Company.
15. As per the information provided to us, the Company has not given
any guarantee for loans taken by others from bank or financial
institutions.
16. The company has not obtained any term loans from banks or financial
institutions during the year under audit.
17. According to the information and explanations given to us and on
the basis of an overall examination of the balance sheet of the
company, we report that no funds raised on short-term basis have been
used for long-term purpose.
18. During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under Section 301 of the Companies Act, 1956.
19. During the year, the company has not issued any debentures.
20. During the year, the Company has not raised any money by way of
Public issues.
21. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the year.
For J.T. Shah & Co.
Chartered Accountants
(FRN No. 109616W)
Sd/-
( J.T. Shah)
Date : 30/05/2013 Partner
Place : Ahmadabad (M. No. 3983)
Mar 31, 2012
1. We have audited the attached Balance Sheet of CIL NOVA
PETROCHEMICALS LIMITED as at 31st March 2012, the Statement of Profit
and Loss and also Cash Flow Statement for the year ended on that date
annexed thereto (together read as financial statements). These
financial statements are the responsibility of the CompanyRss
Management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. These Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit also
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (AuditorsRs Report) Order, 2003 issued
by the Company Law Board in terms of section 227 (4 A) of the Companies
Act, 1956, we enclose in the Annexure a statement on the matters
specified in paragraphs 4 & 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(i) We have obtained all the information and explanations, which are to
the best of our knowledge and belief, were necessary for the purpose of
our audit;
(ii) 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;
(iii) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(iv) In our opinion, the Balance Sheet, Statement of Profit and Loss
and Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub section (3C) of section 211 of
the Companies Act, 1956.
(v) On the basis of written representation received from the directors,
as on 31st March, 2012 and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March 2012, from being
appointed as director of the company in terms of clause (g) of
subsection (1) of section 274 of the Companies Act, 1956.
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, read together with the
notes thereon, give the information required by the Companies Act, 1956
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India:
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
(ii) In the case of the Statement of Profit and Loss, of the Profit of
the Company for the year ended on that date; and
(iii) In the case of the Cash Flow Statement, of the Cash Flow of the
Company for the year ended on that date.
Referred to in paragraph 3 of our Report of even date to the Members of
CIL-NOVA PETROCHEMICALS LIMITED for the year ended 31st March,
2012.
1. In respect of Fixed Assets:
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets on the
basis of available information.
b. As per the information and explanations given to us, the management
at reasonable intervals during the year in accordance with a programme
of physical verification physically verified the fixed assets and no
material discrepancies were noticed on such verification as compared to
the available records.
c. In our opinion, the Company has not disposed off any major /
substantial part of the fixed assets during the year and the going
concern status of the company is not affected.
2. In respect of its Inventories:
a. The inventory other than the inventory of work in process has been
physically verified during the year by the management. We have been
informed that looking at the manufacturing process, it is not possible
to physically verify the inventory of work in process. In our opinion,
the frequency of verification is reasonable.
b. The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c. On the basis of our examination of the records of inventory, we are
of opinion that the Company is maintaining proper records of inventory.
The discrepancies noticed on verification between the physical stocks
and books records were not material.
3. In respect of loans, secured or unsecured, granted or taken by the
company to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
a. During the year under audit, the company has not granted any loans,
secured or unsecured, to the companies, firms and other parties covered
in the register maintained under section 301 of the Companies Act, 1956
hence clause 4 (iii) (a), (iii) (b), (iii) (c) and (iii)
(d) of the Companies (AuditorRss Report) Order, 2003 are not applicable.
b. There are 2 parties covered in the register maintained under
section 301 of the Companies Act, 1956 from whom the company has taken
loans. The maximum amount involved during the year was Rs 9,38,42,300/-
and the year-end balance of loans taken from such parties was Rs
9,37,88,300/-.
c. In our opinion and according to the information and explanations
given to us, in case of loans taken during the year, the rates of
interest, wherever applicable and other terms and conditions are not
prima facie prejudicial to the interest of the company.
d. In respect of loans taken by the company, the company has taken
interest free loans and in case of principal, the terms of repayment
have not been stipulated hence the question of regularity of payment of
interest and principal does not arise.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, no major weakness has been noticed in the internal controls.
5. In respect of contracts or arrangements covered under Section 301
of the Companies Act, 1956:
a. Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the contracts or arrangements that need to be entered into
the register maintained under section 301 have been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the registers maintained under section 301 in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
6. The company has not accepted any deposits from public.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
company pursuant to the companies (Cost Accounting Records) Rule,2011
prescribed by the Central Government under section 209 (1) (d) of the
Companies Act, 1956 and are of the opinion that prime facie the
prescribed accounts and records have been maintained. However, we have
not made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
9. In respect of Statutory Dues:
a. According to the records of the Company, the Company is by and
large regular in depositing with appropriate authorities undisputed
statutory dues including income tax, wealth tax, Service Tax, Gujarat
Valued Added Tax, Central Sales Tax, Professional Tax, Tax Deducted at
Source, Custom duty, Provident fund, excise duty, Cess and other
statutory dues applicable to it with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Service Tax,
Customs Duty, Gujarat Valued Added Tax, Central Sales Tax and Excise
Duty were outstanding as at 31st March, 2012 for a period of more than
six months from the date they became payable except Investor Education
& Protection Fund of Rs 3,38,715/- has not been deposited till balance
sheet date.
b. On the basis of our examination of the records, following disputed
statutory dues have not been deposited with the appropriate
authorities;
Name of the Nature of Amount Year Forum where
Statute the Dues is pending
(Amount
in Rs)
The Income
Tax Act, 1961 Income Tax&
Interest 24,02,839 1998-99
Commissioner of
Income Tax,
Appeals
to 2003-04
& 2007-08
The Income
Tax Act, 1961 Interest on
Income Tax 2,72,135 2001-02 The Income Tax
Appellate
Tribunal
The Gujarat
Value Interest &
Penalty 5,69,152 2006-07 Joint
Commissioner
Appeal
Added Tax
Act,2003
The Central
Excise and Excise Duty
and Penalty17,87,32,622 June 2001
Custom Excise
and Service Tax
Customs Act to 2006 Appellate
Tribunal
The Central
Excise and Excise Duty
and Penalty 32,18,949 2004 to 2008
Commissioner of
Excise and
Customs
Customs Act (Appeals)
The Central
Excise and Excise Duty
and Penalty 1,46,479 2005-06 Assistant/
Additional
Commissioner of
Customs Act Central Excise
The Central
Excise and Excise Duty
and Penalty 77,80,203 2006 to 2008 HonRsble High
Court of Gujarat
Customs Act
Service Tax
Act Service Tax
and Penalty 18,00,015 2006 to 2009 Custom Excise
and Service Tax
Appellate
Tribunal
Service Tax
Act Service Tax
and Penalty 13,35,476 2006 to 2009 HonRsble High
Court of Gujarat
The Textile
Committee Textile Cess 50,90,119 1995 to 2005 Textiles
Committee,
Government of
Amendment Act,
1973 India, Ministry
of Textiles
10. The accumulated losses at the end of the financial year are not
more than fifty percent of its net worth. The Company has not incurred
cash loss during the year under audit and in the immediately preceding
financial year.
11. Based on our audit procedure and according to the information &
explanation given to us, we are of the opinion that the company is, by
and large, regular in repayment of dues to banks.
12. Based on our examination of documents and records and information
and explanations given to us, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. The provisions of any special statute applicable to Chit Fund,
Nidhi or Mutual benefit Fund/Societies are not applicable to the
Company. Therefore, clause 4 (xiii) of the Companies (AuditorRss
Report) Order, 2003 is not applicable to the company.
14. The Company is not dealing or trading in shares, securities,
debentures or other investments and hence, the requirements of Para 4
(xiv) are not applicable to the Company.
15. As per the information provided to us, the Company has not given
any guarantee for loans taken by others from bank or financial
institutions.
16. The company has not obtained any term loans from banks or
financial institutions during the year under audit.
17. According to the information and explanations given to us and on
the basis of an overall examination of the balance sheet of the
company, we report that no funds raised on short-term basis have been
used for long-term purpose.
18. During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under Section 301 of the Companies Act, 1956.
19. During the year, the company has not issued any debentures.
20. During the year, the Company has not raised any money by way of
Public issues.
21. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the year.
For J.T Shah & Co.
Chartered Accountants
(FRN No. 109616W)
Sd/-
( J.T Shah)
Date : 27.08.2012 Partner
Place : Ahmedabad (M. No. 3983)
Mar 31, 2011
1. We have audited the attached Balance Sheet of CIL-NOVA
PETROCHEMICALS LIMITED as at 31st March 2011, the Profit and Loss
Account and also Cash Flow Statement for the year ended on that date
annexed thereto (together read as financial statements). These
financial statements are the responsibility of the Company's
Management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. These Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit also
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors' Report) Order, 2003 issued
by the Company Law Board in terms of section 227 (4 A) of the Companies
Act, 1956, we enclose in the Annexure a statement on the matters
specified in paragraphs 4 & 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(i) We have obtained all the information and explanations, which are to
the best of our knowledge and belief, were necessary for the purpose of
our audit;
(ii) 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;
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub section (3C) of section 211 of
the Companies Act, 1956.
(v) On the basis of written representation received from the directors,
as on 31st March, 2011 and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March 2011, from being
appointed as director of the company in terms of clause (g) of
subsection (1) of section 274 of the Companies Act, 1956.
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, read together with the
notes thereon, give the information required by the Companies Act, 1956
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India:
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011;
(ii) In the case of the Profit and Loss Account, of the Profit of the
Company for the year ended on that date; and
(iii) In the case of the Cash Flow Statement, of the Cash Flow of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Referred to in paragraph 3 of our Report of even date to the Members of
CIL-NOVA PETROCHEMICALS LIMITED for the year ended 31st March, 2011.
1. In respect of Fixed Assets:
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets on the
basis of available information.
b. As per the information and explanations given to us, the management
at reasonable intervals during the year in accordance with a programme
of physical verification physically verified the fixed assets and no
material discrepancies were noticed on such verification as compared to
the available records.
c. In our opinion, the Company has not disposed off any major /
substantial part of the fixed assets during the year and the going
concern status of the company is not affected.
2. In respect of its Inventories: v
a. The inventory other than the inventory of work in process has been
physically verified during the year by the management. We have been
informed that looking at the manufacturing process, it is not possible
to physically verify the inventory of work in process. In our opinion,
the frequency of verification is reasonable.
b. The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c. On the basis of our examination of the records of inventory, we are
of opinion that the Company is maintaining proper records of inventory.
The discrepancies noticed on verification between the physical stocks
and books records were not material.
3. In respect of loans, secured or unsecured, granted or taken by the
company to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
a. During the year under audit, the company has not granted any loans,
secured or unsecured, to the companies, firms and other parties covered
in the register maintained under section 301 of the Companies Act, 1956
hence clause 4 (iii) (a), (iii) (b), (iii) (c) and (iii) (d) of the
Companies (Auditor's Report) Order, 2003 are not applicable.
b. There are 7 parties covered in the register maintained under
section 301 of the Companies Act, 1956 from whom the company has taken
loans. The maximum amount involved during the year was Rs.1114.42 Lacs
and the year-end balance of loans taken from such parties was Rs.
1114.42 Lacs.
c. In our opinion and according to the information and explanations
given to us, in case of loans taken during the year, the rates of
interest, wherever applicable and other terms and conditions are not
prima facie prejudicial to the interest of the company.
d. In respect of loans taken by the company, the company has taken
interest free loans and in case of principal, the terms of repayment
have not been stipulated hence the question of regularity of payment of
interest and principal does not arise.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, no major weakness has been noticed in the internal controls.
5. In respect of contracts or arrangements covered under Section 301
of the Companies Act, 1956:
a. Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the contracts or arrangements that need to be entered into
the register maintained under section 301 have been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the registers maintained under section 301 in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
6. The company has not accepted any deposits from public.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under Section 209 (1) (d) of the Companies
Act, 1956 and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the said records with a view to
determine whether they are accurate or complete.
9. In respect of Statutory Dues:
a. According to the records of the Company, the Company is by and large
regular in depositing with appropriate authorities undisputed statutory
dues including income tax, wealth tax, custom duty, Provident fund,
excise duty, cess and other statutory dues applicable to it with the
appropriate authorities, all though there have been delays in
depositing Service Tax, Gujarat Valued Added Tax, Central Sales Tax,
Professional Tax and Income Tax Deducted at Source. According to the
information and explanations given to us, no undisputed amounts payable
in respect of Income Tax, Service Tax, Customs Duty, Gujarat Valued
Added Tax, Central Sales Tax and Excise Duty were outstanding as at
31st March, 2011 for a period of more than six months from the date
they became payable except Investor Education & Protection Fund of
Rs.3.39 Lacs has not been deposited till balance sheet date.
b. On the basis of our examination of the records, following disputed
statutory dues have not been deposited with the appropriate
authorities;
Name of the Statute Nature of the Dues Period Amount
(Rs. In Lacs)
The Income Tax Act,
1961 Income Tax& Interest 1998-99 to 36.59
2004-05 &
2007-08
The Income Tax Act,
1961 Interest on Income
Tax 2001-02 2.72
The Gujarat Value
Added Interest & Penalty 2006-07 12.77
Tax Act, 2003
The Central Excise
and Customs Act Excise Duty and
Penalty June 2001 1787.33
to 2006
The Central Excise
and Customs Act Excise Duty and
Penalty 2004 to 2008 36.25
The Central Excise
and Customs Act Excise Duty and
Penalty 2005-06 1.46
The Central Excise
and Customs Act Excise Duty and
Penalty 2006 to 2008 1.22
Service Tax Act Service Tax and
Penalty 2006 to 2009 5.79
The Textile Committee Textile Cess 1995 to 2005 50.90
Amendment Act, 1973
Name of the Statute Forum where dispute is pending
The Income Tax Act, 1961 Commissioner of Income Tax, Appeals
The Income Tax Act,1961 The Income Tax Appellate Tribunal
The Gujarat Value Added Joint Commissioner Appeal
Tax Act,2003
The Central Excise and Custom Excise and Service Tax
Customs Act Appellate Tribunal
The Central Excise and Commissioner of Excise and Customs
Customs Act (Appeals)
The Central Excise and Assistant Commissioner of Central
Customs Act Excise
The Central Excise and Hon'ble High Court of Gujarat
Customs Act
Service Tax Act Custom Excise and Service Tax
Appellate Tribunal
The Textiles Committee Textiles Committee, Government of
Amendment Act,1973 India, Ministry of Textiles
10. The accumulated losses at the end of the financial year are not
more than fifty percent of its net worth. The Company has not incurred
cash loss during the year under audit and in the immediately preceding
financial year.
11. Based on our audit procedure and according to the information &
explanations given to us, we are of the opinion that the company has
not defaulted in repayment of dues to banks.
12. Based on our examination of documents and records and information
and explanations given to us, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. The provisions of any special statute applicable to Chit Fund,
Nidhi or Mutual benefit Fund/Societies are not applicable to the
Company. Therefore, clause 4 (xiii) of the Companies (Auditor's
Report) Order, 2003 is not applicable to the company.
14. The Company is not dealing or trading in shares, securities,
debentures or other investments and hence, the requirements of Para 4
(xiv) are not applicable to the Company.
15. As per the information provided to us, the Company has not given
any guarantee for loans taken by others from bank or financial
institutions.
16. The company has not obtained any term loans from banks or
financial institutions during the year under audit.
17. According to the information and explanations given to us and on
the basis of an overall examination of the balance sheet of the
company, we report that no funds raided on short-term basis have been
used for long-term purpose.
18. During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under Section 301 of the Companies Act, 1956.
19. During the year, the company has not issued any debentures.
20. During the year, the Company has not raised any money by way of
Public issues.
21. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the year.
For, J. T. SHAH & COMPANY
Chartered Accountants
(FRN No. 109616W)
(J.T. Shah)
Place : Ahmedabad Partner
Date : 11.08.2011 [M No 3983]
Mar 31, 2010
1. We have audited the attached Balance Sheet of CIL-NOVA
PETROCHEMICALS LIMITED as at 31st March 2010, the Profit and Loss
Account and also Cash Flow Statement for the year ended on that date
annexed thereto (together read as financial statements). These
financial statements are the responsibility of the Companys
Management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. These Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit also
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors? Report) Order, 2003 issued
by the Company Law Board in terms of section 227 (4 A) of the Companies
Act, 1956, we enclose in the Annexure a statement on the matters
specified in paragraphs 4 & 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(i) We have obtained all the information and explanations, which are to
the best of our knowledge and belief, were necessary for the purpose of
our audit;
(ii) 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;
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub section (3C) of section 211 of
the Companies Act, 1956.
(v) On the basis of written representation received from the directors,
as on 31st March, 2010 and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March 2010, from being
appointed as director of the company in terms of clause (g) of
subsection (1) of section 274 of the Companies Act, 1956.
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, read together with the
notes thereon, give the information required by the Companies Act, 1956
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India:
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
(ii) In the case of the Profit and Loss Account, of the Profit of the
Company for the year ended on that date; and
(iii) In the case of the Cash Flow Statement, of the Cash Flow of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Referred to in paragraph 3 of our Report of even date to the Members of
CIL-NOVA PETROCHEMICALS LIMITED for the year ended 31st March, 2010.
1. In respect of Fixed Assets:
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets on the
basis of available information.
b. As per the information and explanations given to us, the management
at reasonable intervals during the year in accordance with a programme
of physical verification physically verified the fixed assets and no
material discrepancies were noticed on such verification as compared to
the available records.
c. In our opinion, the Company has not disposed off any major /
substantial part of the fixed assets during the year and the going
concern status of the company is not affected.
2. In respect of its Inventories:
a. The inventory other than the inventory of work in process has been
physically verified during the year by the management. We have been
informed that looking at the manufacturing process, it is not possible
to physically verify the inventory of work in process. In our opinion,
the frequency of verification is reasonable.
b. The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c. On the basis of our examination of the records of inventory, we are
of opinion that the Company is maintaining proper records of inventory.
The discrepancies noticed on verification between the physical stocks
and books records were not material.
3. In respect of loans, secured or unsecured, granted or taken by the
company to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
a. During the year under audit, the company has not granted any loans,
secured or unsecured, to the companies, firms and other parties covered
in the register maintained under section 301 of the Companies Act, 1956
hence clause 4 (iii) (a), (iii) (b), (iii) (c) and (iii) (d) of the
Companies (Auditors Report) Order, 2003 are not applicable.
b. There are 7 parties covered in the register maintained under
section 301 of the Companies Act, 1956 from whom the company has taken
loans. The maximum amount involved during the year was Rs. 1195.42 Lacs
and the year-end balance of loans taken from such parties was Rs.
1114.42 Lacs.
c. In our opinion and according to the information and explanations
given to us, in case of loans taken during the year, the rates of
interest, wherever applicable and other terms and conditions are not
prima facie prejudicial to the interest of the company.
d. In respect of loans taken by the company, the company has taken
interest free loans and in case of principal, the terms of repayment
have not been stipulated hence the question of regularity of payment of
interest and principal does not arise.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, no major weakness has been noticed in the internal controls.
5. In respect of contracts or arrangements covered under Section 301
of the Companies Act, 1956:
a. Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the contracts or arrangements that need to be entered into
the register maintained under section 301 have been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the registers maintained under section 301 in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
6. The company has not accepted any deposits from public.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under Section 209 (1) (d) of the Companies
Act, 1956 and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the said records with a view to
determine whether they are accurate or complete.
9. In respect of Statutory Dues:
a. According to the records of the Company, the Company is by and
large regular in depositing with appropriate authorities undisputed
statutory dues including income tax, wealth tax, custom duty, Provident
fund, excise duty, cess and other statutory dues applicable to it with
the appropriate authorities, all though there have been delays in
depositing Service Tax, Gujarat Valued Added Tax, Central Sales Tax,
Professional Tax and Income Tax Deducted at Source. According to the
information and explanations given to us, no undisputed amounts payable
in respect of Income Tax Service Tax, Customs Duty, Gujarat Valued
Added Tax, Central Sales Tax and Excise Duty were outstanding as at
31st March, 2010 for a period of more than six months from the date
they became payable except Wealth Tax of Rs. 5 Lacs has not been
deposited till balance sheet date.
b. On the basis of our examination of the records, following disputed
statutory dues have not been deposited with the appropriate
authorities;
Name of the Nature of the Amount Forum where dispute
Statute Dues (Rs. In Lacs) Is pending
The Income
Tax Act, Income Tax Commissioner of Income
34.29
1961 & Interest Tax, Appeals
The Income
Tax Act, Interest on The Income Tax Appellate
2.72
1961 Income Tax Tribunal
The Central
Excise and Excise Duty
Custom Excise and
Service
2718.59
Customs Act and Penalty Tax Appellate Tribunal
The Central
Excise and Excise Duty Commissioner of Excise
52.17
Customs Act and Penalty and Customs (Appeals)
The Central
Excise and Excise Duty Assistant Commissioner
of
1.64
Customs Act and Penalty Excise and Customs
Service Tax Commissioner of Service
Service Tax
Act 20.12
and Penalty Tax (Appeals)
Textiles Committee,
The Textile
Committee
Textile Cess 50.90 Government of India,
Amendment
Act, 1973
Ministry of Textiles
10. The accumulated losses at the end of the financial year are not
more than fifty percent of its net worth. The Company has not incurred
cash loss during the year under audit and in the immediately preceding
financial year.
11. In our Opinion and according to the information and explanations
given to us, there was a delay ranging upto 4 months in repayment of
principal of Rs.65.52 Lacs and a delay ranging up to 10 month in
repayment of interest of Rs.176.20 Lacs to State Bank of India. Further
there was a delay ranging up to 60 days in repayment of rescheduled
principal of Rs. 62.79 Lacs and delay ranging up to 77 days in respect
of interest of Rs.219.64 Lacs in respect other banks.
12. Based on our examination of documents and records and information
and explanations given to us, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. The provisions of any special statute applicable to Chit Fund,
Nidhi or Mutual benefit Fund/Societies are not applicable to the
Company. Therefore, clause 4 (xiii) of the Companies (Auditors Report)
Order, 2003 is not applicable to the company.
14. The Company is not dealing or trading in shares, securities,
debentures or other investments and hence, the requirements of Para 4
(xiv) are not applicable to the Company.
15. As per the information provided to us, the Company has not given
any guarantee for loans taken by others from bank or financial
institutions.
16. The company has not obtained any term loans from banks or
financial institutions during the year under audit.
17. According to the information and explanations given to us and on
the basis of an overall examination of the balance sheet of the
company, we report that no funds raised on short-term basis have been
used for long-term purpose.
18. During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under Section 301 of the Companies Act, 1956.
19. During the year, the company has not issued any debentures.
20. During the year, the Company has not raised any money by way of
Public issues.
21. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the year.
FOR J. T. SHAH & COMPANY
CHARTERED ACCOUNTANTS
(FRN No. 109616W)
Sd/-
(J. T. SHAH)
PARTNER
[M. No. 3983]
PLACE : Ahmedabad
DATE : 07.08.2010