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CIL Nova Petrochemicals Ltd.

BSE: 533407 Sector: Industrials
NSE: CNOVAPETRO ISIN Code: INE672K01025
BSE LIVE 18:46 | 19 Oct 42.00 0.40
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42.00

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NSE 19:14 | 19 Oct 41.00 0.80
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OPEN 42.00
PREVIOUS CLOSE 41.60
VOLUME 50
52-Week high 53.30
52-Week low 20.60
P/E 25.30
Mkt Cap.(Rs cr) 114
Buy Price 38.20
Buy Qty 25.00
Sell Price 42.00
Sell Qty 50.00
OPEN 42.00
CLOSE 41.60
VOLUME 50
52-Week high 53.30
52-Week low 20.60
P/E 25.30
Mkt Cap.(Rs cr) 114
Buy Price 38.20
Buy Qty 25.00
Sell Price 42.00
Sell Qty 50.00

CIL Nova Petrochemicals Ltd. (CNOVAPETRO) - Auditors Report

Company auditors report

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 NOVAPETROCHEMICALS LIMITED ("the Company") which comprise the Balance Sheet as at31st March 2016 the Statement of Profit and Loss the Cash Flow Statement for the yearthen ended and a summary of the significant accounting policies and other explanatoryinformation.

2. Management’s Responsibility for the Standalone Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

3. Auditor’s Responsibility

Our responsibility is to express an opinion on these Standalone Financial Statementsbased on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company’s Directors aswell as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide 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 explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act 2013 in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India:-i. In the case of the BalanceSheet of the state of affairs of the Company as at March 31 2016; ii. In the case of theStatement 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 ("theOrder") issued by the Central Government of India in terms of Section 143(11) of theAct we give in the Annexure-A a statement on the matters specified in paragraphs 3 and 4of 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 bestof 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 theCompany 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 Statementdealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act2013 read with Rule 7 of theCompanies (Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in termsof Section 164 (2)of the Act.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

(g) With respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 financialposition in its financial statements – Refer Note 26 to the financial statements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For J. T. Shah & Co.
Chartered Accountants
[FRN No. 109616W]
(J. T. Shah)
Place : Ahmedabad Partner
Date : 23/05/2016 [M. No. 3983]

ANNEXURE "A" TO INDEPENDENT AUDITORS’ REPORT

Referred to in paragraph 5 (i) of our Report of even date to the Members of CIL NOVAPETROCHEMICALS LIMITED for the year ended 31st March 2016.

1. In respect of Fixed Assets :

(a) The Company has maintained proper records showing full particulars includingquantitative 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 reasonableintervals during the year in accordance with a programme of physical verificationphysically verified the fixed assets and no material discrepancies were noticed on suchverification as compared to the available records.

(c) As explained to us the title deeds of all the immovable properties are held in thename of the company.

2. In respect of its Inventories :

As per the information and explanations given to us inventories were physicallyverified during the year by the management at reasonable intervals. No materialdiscrepancies 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 unsecuredduring the year under audit to the companies firms and other parties covered in theregister maintained under section 189 of the companies Act 2013 and therefore theclauses (iii) (a) to (c) of the companies (Auditor’s Report) Order 2016 are notapplicable.

4. Loans Investments and gurantees:

According to the information and explanation given to us the company had neither givenany loan guarantee or security nor made any investments during the year. Hence theprovisions 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 directivesissued by the Reserve Bank of India and the provisions of sections 73 to 76 or any otherrelevant provisions of the Companies Act and the rules framed there under are notapplicable 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 tothe companies (Cost Accounting Records) Rule2011 prescribed by the Central Governmentunder sub section (1) of section 148 of the Companies Act 2013. However we have not madea detailed examination of the cost records with a view to determine whether they areaccurate or complete.

7. In respect of Statutory Dues :

(a) According to the records of the Company the Company is by and large regular indepositing with appropriate authorities undisputed statutory dues including providentfund employees’ state insurance income tax Tax Deducted at Source Value Added Taxtax wealth tax service tax duty of customs duty of excise value added tax cess andother statutory dues with the appropriate authorities applicable to it. According to theinformation and explanations given to us no undisputed amounts payable in respectstatutory dues were outstanding as at 31st March 2016 for a period of morethan six months from the date they became payable.

(b) According to the records of the company the dues of income tax sales taxwealth tax or service tax or duty of customs or duty of excise or value added tax or cesswhich have not been deposited on account of disputes and the forum where the dispute ispending are as under:

Name of the Statute Nature of the Dues Year Amount in ` Forum where dispute is pending
Income Tax Act1961 Income Tax Demand & Interest 2010-11 2719970 Income Tax Appellate Tribunal
Income Tax Demand & Interest 2011-12 23721760 Income Tax Appellate Tribunal
Income Tax Demand & Interest 2012-13 16262700 Commissioner of Income Tax (Appeals)
The Central Excise and Customs Act Excise Duty & Penalty 2003-04 3230730 Custom Excise and Service Tax Appellate Tribunal
Excise Duty & Penalty 2004-05 3398641 Custom Excise and Service Tax Appellate Tribunal
Excise Duty & Penalty 2005-06 146479 Assistant/Additional Commissioner of Central Excise
Excise Duty & Penalty 2006-07 1959742 & 2007-08 Commissioner of Excise and Customs (Appeals)
The Textile Committee Amendment Act 1973 Textile Cess 1995 to 2005 5090119 Textiles Committee Government of India Ministry of Textiles

8. Based on our audit procedure and according to the information and explanation givento us we are of the opinion that the Company has not defaulted in repayment of dues to aFinancial Institutions Banks or debenture holders.

9. According to the information and explanations given to us the company had notraised any money by way of public issue during the year. According to the information andexplanations given to us and on an overall examination of the balance sheet of thecompany in our opinion the term loans taken during the year were applied for the purposefor which they were obtained.

10. Based upon the audit procedures performed and information and explanations given bythe management we report that no fraud by the Company or any fraud on the company byit’s officer or employees has been noticed or reported during the course of ouraudit.

11. In our opinion and according to the information and explanations given to us thecompany had paid managerial remuneration which is in accordance with the requisiteapprovals mandated by the provisions of section 197 read with schedule V of The CompaniesAct 2013.

12. In our opinion and according to the information and explanations given to us theprovisions 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 thetransactions entered by the company with related parties are in compliance with theprovisions of section 177 and 188 of The Companies Act 2013 and details thereof areproperly disclosed in the financial statements.

14. The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review hence provisions ofsections 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 orpersons 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) Order2016 is not applicable.

16. In our opinion and according to the information and explanation given to us thecompany is required to be registered under section 45-IA of Reserve Bank of India Act1934 and registration certificate for the same has been obtained.

For J. T. Shah & Co.
Chartered Accountants
[FRN No. 109616W]
(J. T. Shah)
Place : Ahmedabad Partner
Date : 23/05/2016 [M. No. 3983]

ANNEXURE "B" TO INDEPENDENT AUDITORS’ REPORT

Referred to in paragraph 4(ii)(f) of our Report of even date to the Members of CIL NOVAPETROCHEMICALS LIMITED for the year ended 31st March 2016.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of CIL NOVAPETROCHEMICALS LIMITED as of 31st March 2016 in conjunction with our audit of thestandalone 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 internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company’s policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that (1) Pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) Provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany’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 financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants 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]