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I G Petrochemicals Ltd.

BSE: 500199 Sector: Industrials
NSE: IGPL ISIN Code: INE204A01010
BSE LIVE 15:40 | 17 Nov 713.10 7.25
(1.03%)
OPEN

719.40

HIGH

728.85

LOW

706.00

NSE 15:52 | 17 Nov 717.95 12.55
(1.78%)
OPEN

715.95

HIGH

728.95

LOW

711.00

OPEN 719.40
PREVIOUS CLOSE 705.85
VOLUME 8155
52-Week high 796.10
52-Week low 187.60
P/E 17.72
Mkt Cap.(Rs cr) 2,196
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 719.40
CLOSE 705.85
VOLUME 8155
52-Week high 796.10
52-Week low 187.60
P/E 17.72
Mkt Cap.(Rs cr) 2,196
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

I G Petrochemicals Ltd. (IGPL) - Auditors Report

Company auditors report

To the Members of I G PETROCHEMICALS LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying financial statements of I G Petrochemicals Limited(“the Company") which comprise the Balance Sheet as at 31st March2016 the Statement of Profit and Loss the Cash Flow Statement for the year then endedand a summary of the significant accounting policies and other explanatory information.

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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent ; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

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 of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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.

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 in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2016 and its profit and its cash flows for the year ended onthat date.

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 of India in terms of sub-section (11) of section 143 ofthe Act and on the basis of such checks of the books and records of the Company as weconsidered appropriate and according to the information and explanations given to usduring the course of audit we give in the “Annexure A" statement on the mattersspecified in the paragraphs 3 and 4 of 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 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 financial statements comply with the AccountingStandards 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 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 we give ourseparate report in “Annexure B"; and

(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 No. 22 to the Financial Statement.

ii. The Company has made provision as required under the applicable law or according toAccounting Standards for material foreseeable losses if any on long term contractsincluding derivative contracts.

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

Hariharan & Co. ASA & Associates LLP
Chartered Accountants Chartered Accountants
Firm's Registration No.001083S Firm's Registration No.009571 N/N500006
K. Nagarajan Mihir Hindocha
Place : Mumbai Partner Partner
Date : 23rd May 2016 Membership No.16398 Membership No.112766

ANNEXURE-A TO THE AUDITORS' REPORT

The Annexure referred to in paragraph 1 under the heading “Report on Other Legaland Regulatory Requirements” of our report of even date for the year ended 31stMarch 2016.

1. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The fixed assets have been physically verified by the management according to theprogramme of periodical physical verification in phased manner which in our opinion isreasonable having regard to the size of the Company and the nature of its fixed assets.The discrepancies noticed on such physical verification were not material.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

2. The inventory (excluding stocks with third parties) has been physically verified bythe management at reasonable intervals. In respect of inventory lying with third partiesthese have been confirmed by them. No material discrepancies were noticed on physicalverification.

3. The Company has granted loan to one body corporate covered in the registermaintained under Section 189 of the Companies Act 2013 ('the Act').

(a) In our opinion the rate of interest and other terms and conditions on which theloan had been granted to the body corporate listed in the register maintained underSection 189 of the Act were not prima facie prejudicial to the interest of the Company

(b) In the case of the loans granted to the body corporate listed in the registermaintained under Section 189 of the Act the borrower have been regular in the payment ofthe principal and interest as stipulated.

(c) There are no overdue amounts in respect of the loan granted to a body corporatelisted in the register maintained under Section 189 of the Act.

4. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made.

5. In our opinion and according to the information and explanations given to us theCompany has not accepted any Deposits from the public within the meaning of provisions ofSection 73 to 76 of the Act or any other relevant provisions of the Act and the rulesframed there under

6. On the basis of records produced to us we are of the opinion that prima facie thecost records prescribed by the Central Government of India under sub section (1) ofsection 148 of the Companies Act 2013 relating to the Product of the Company have beenmade and maintained. We are not required to and accordingly have not made a detailedexamination of such records.

7. (a) According to the records of the Company and information and explanations givento us the Company is generally regular in depositing undisputed statutory dues includingprovident fund employees' state insurance income-tax sales-tax wealth tax servicetax duty of customs duty of excise value added tax and cess and other materialstatutory dues with the appropriate authorities to the extent applicable and there were noundisputed statutory dues payable for a period of more than six months from the date theybecame payable as at 31st March 2016.

(b) According to the records and information & explanations given to us there areno dues in respect of Wealth Tax Service Tax Custom Duty Excise Duty VAT and Cess thathave not been deposited with the appropriate authorities to the extent applicable onaccount of any dispute and the dues in respect of Income tax and Sales tax that have not

been deposited with the appropriate authorities on account of dispute and the forumwhere the dispute is pending are given betow:-

Name of the statute Nature of the dues Amount Disputed (Rs. in Lacs) Period to which the amount relates Forum where dispute is pending
Central Excise Act 1944 Excise Duty 3664.70 Various years from 1997 to 2009 CESTAT
Central Excise Act 1944 Excise Duty 1336.95 Various years from 1997 to 2015 Commissioner of Central Excise
Income Tax Act 1961 Income Tax 563.56 Assessment Years 2005-06 to 2013-14 Karnataka High Court / CIT (Appeals)

8. In our opinion on the basis of audit procedure and according to the information andexplanations given to us the Company has not defaulted in repayment of dues to banksfinancial institutions Government or dues to debenture holders.

9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) during the year. On the basis of information andexplanations given to us term loan were applied for the purpose for which the loans wereobtained.

10. Based on the audit procedure performed and on the basis of information andexplanations provided by the management no fraud on or by the Company has been noticed orreported during the course of our audit.

11. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act.

12. our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

13 According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

14. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or futty or partly convertible debentures duringthe year

15. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into any non-cashtransactions covered under Section 192 of the Companies Act 2013 with the directors orpersons connected with him hence paragraph 3(xv) of the Order is not applicable to theCompany.

16. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

Hariharan & Co. ASA & Associates LLP
Chartered Accountants Chartered Accountants
Firm's Registration No.001083S Firm's Registration No.009571 N/N500006
K. Nagarajan Mihir Hindocha
Place : Mumbai Partner Partner
Date : 23rd May 2016 Membership No.16398 Membership No.112766

ANNEXURE - B TO THE AUDITORS' REPORT

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 I GPetrochemicals Limited (“the Company") as of 31st March 2016 inconjunction with our audit of the standalone financial statements of the Company for theyear 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 ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including 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 Act.

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 Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated 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 controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 2016based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

Hariharan & Co. ASA & Associates LLP
Chartered Accountants Chartered Accountants
Firm's Registration No.001083S Firm's Registration No.009571 N/N500006
K. Nagarajan Mihir Hindocha
Place : Mumbai Partner Partner
Date : 23rd May 2016 Membership No.16398 Membership No.1 12766