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National Oxygen Ltd.

BSE: 507813 Sector: Industrials
NSE: NOL ISIN Code: INE296D01010
BSE LIVE 14:58 | 23 Nov 43.50 0.50
(1.16%)
OPEN

43.50

HIGH

44.95

LOW

43.50

NSE 00:00 | 17 Feb Stock Is Not Traded.
OPEN 43.50
PREVIOUS CLOSE 43.00
VOLUME 320
52-Week high 49.90
52-Week low 32.00
P/E
Mkt Cap.(Rs cr) 21
Buy Price 42.15
Buy Qty 15.00
Sell Price 43.50
Sell Qty 190.00
OPEN 43.50
CLOSE 43.00
VOLUME 320
52-Week high 49.90
52-Week low 32.00
P/E
Mkt Cap.(Rs cr) 21
Buy Price 42.15
Buy Qty 15.00
Sell Price 43.50
Sell Qty 190.00

National Oxygen Ltd. (NOL) - Auditors Report

Company auditors report

TO THE MEMBERS OF NATIONAL OXYGEN LIMITED

1. Report on the Standalone Financial Statements :

We have audited the accompanying standalone financial statements of NATIONAL OXYGENLIMITED as at 31st March 2017 which comprise the Balance Sheet as at 31stMarch 2017 and the Statement of Profit and Loss the Cash Flow Statement for the yearended on that date and a summary of 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)Rules 2014 (as amended) . This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

3. Auditor's Responsibility :

Our responsibility is to express an opinion on these financial statements based on ouraudit.

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 accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement

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 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 Companies Act 2013 in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2017 and its Loss and its cash flowsfor the year ended on that date.

5. Emphasis of Matter :

We draw attention to Note No. 33 of the financial statements regarding the company'snet worth being fully eroded during the year. However in view of the reasons explainedtherein the financial statements have continued to be drawn up on a going concernassumption. Our opinion is not qualified in respect of the same.

6. Report on Other Legal and Regulatory Requirements :

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 section143 of the Companies Act 2013 we give in "Annexure A" a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.

Further 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 Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of Section164 (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 beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 in our opinion and to the best of our information and according tothe explanations given to us: i) The Company has disclosed the impact of pendinglitigations on its financial position in its financial statements – Refer Note No. 33A to the financial statements; ii) There is no material foreseeable losses which thecompany needs to provide as required under the applicable law or accounting standards onlong-term contracts including derivative contracts. iii) There has been no delay intransferring amounts required to be transferred to the Investor Education andProtection Fund by the Company iv) the requisite disclosures in the financial statementsas to holdings as well as dealings in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016 has been made by the company. Based on auditprocedures and relying on the management representation we report that the disclosures arein accordance with books of account maintained by the Company and as produced to us by theManagement – Refer Note No.40.

For SINGHI & CO.
Chartered Accountants
Firm Regn No. 302049E
Sd/-
(SUDESH CHORARIA)
Place: Chennai Partner
Date : 30th May 2017. Membership No. 204936

ANNEXURE "A"TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in our Report of even date on the financial statements of NATIONAL OXYGENLIMITED as at and for the year ended 31st March 2017)

i) a) The Company has maintained proper records showing full particulars includingquantitative details and situation of its Fixed Assets.

b) The Fixed Assets of the Company have been physically verified by the managementwherever possible at the close of the year as confirmed by the management. As informed tous no material discrepancy has come to notice on such physical verification;

c) According to the information and explanations given by the management the titledeeds of immovable properties included in Fixed Assets are held in the name of thecompany.

ii) The management has conducted Physical verification of Inventories whereverpossible at all its locations at reasonable intervals during the year and as far as wecan ascertain and according to the information and the explanations given to us thediscrepancies noticed between the physical stocks and book stocks were not material andthe same have been properly dealt with in the books of account.

iii) As per the information and explanations provided to us the company has notgranted any loans secured or unsecured to companies firms or other parties listed inthe register maintained under Section 189 of the Companies Act 2013 and hence therequirements of sub clauses (a) and (b) of clause (iii) of the Order are not applicable.

iv) As per the information and explanations provided to us the company has compliedwith the provisions of section 185 and 186 of the Companies Act 2013 in respect of loansinvestments guarantees and security provided by the company.;

v) In our opinion and according to the information and explanations given to us thecompany has not accepted any deposits to which the directives of the Reserve Bank of Indiaand the provisions of Section 73 to 76 or any other relevant provisions of the CompaniesAct 2013 and the rules framed there under apply;

vi) The Company has made and maintained proper Cost records pursuant to the rules madeby the Central Government for the maintenance of cost records under section 148 (1) of theCompanies Act 2013 in respect of the products manufactured by it but no detailedexamination of such records have been carried out by us.

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT (Contd..)

vii) a) The company has been generally regular in depositing undisputed statutory duesincluding Provident Fund Employees' State Insurance Income-tax Sales-tax Wealth TaxService Tax Duty of Customs Duty of Excise Value added tax cess and other materialstatutory dues with the appropriate authorities. Further according to the information andexplanations given to us and the books and records examined by us there was no undisputedamount outstanding as on 31st March 2017 in respect of the above statutory duesfor a period of more than six months from the date they became payable;

b) According to the records of the company the dues outstanding (net of Advances) inrespect of Income tax Sales Tax Wealth Tax Service Tax Duty of Customs Duty ofExcise Value added tax or Cess on account of any dispute as on 31st March2017 are as follows :

Name of the Statute Nature of Dues Amount Rs in Lacs Period to which the amount relates Forum where dispute pending
Central Excise Act 1944 Excise duty demanded on the facility charges being charged 1.06 Sept'2000 to Aug'2001 CESTAT Southern Bench
Central Excise Act 1944 Departmental appeal against the partial favourable order passed by Commissioner (Appeals) for Excise duty demanded on the rental / facility charges being charged 4.91 Sept'2000 to Aug'2001 CESTAT Southern Bench
Central Excise Act 1944 Departmental appeal against the favourable order passed by CESTAT in respect of 8% duty demanded on supply to ISRO under Nil rate of duty while availing Cenvat Credit 5.71 2000-01 Madras High Court
Central Excise Act 1944 Excise duty demanded on the Cylinder Repair charges being charged 0.20 Sept'2006 to Mar'2007 CESTAT Southern Bench
Central Excise Act 1944 Excise duty demanded on the Cylinder Holding / facility charges being charged 1.67 May'2006 to Aug'2006 CESTAT Southern Bench
Service Tax Service Tax demanded on the Lease charge income received 11.32 2002-03 & 2003-04 CESTAT Southern Bench
Service Tax Service Tax demanded on the Lease charge income received 6.69 2004-05 & 2005-06 CESTAT Southern Bench
Customs Act 1961 Differential Customs Duty on Import of Second hand Plant (including Interest & Penalty) 88.23 1994-95 CESTAT Southern Bench
Service Tax Service Tax on GTA claimed by the Deptt. which is contested by the company 3.86 Apr'2012 to Mar'2013 Asst Commissioner Puducherry

viii) Based on our audit procedures and as per the information and explanations givento us by the management the company has not defaulted in repayment of dues to financialinstitutions or banks or debenture holders though there have been delays in repayment incertain cases.

ix) According to the information and explanations given to us by the management theterm loans availed by the company have been applied for the purpose for which they wereraised. Further no money was raised by the company during the year by way of Initialpublic offer or further public offer;

x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and as per the information and explanations given tous by the management we report that no fraud on or by the company has been noticed orreported during the course of our audit;

xi) According to the information and explanations given to us by the management themanagerial remuneration has been paid / provided by the company in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act 2013;

xii) The company is not a Nidhi company hence clause 3 (xii) of the Order is notapplicable to the company;

xiii) According to the information and explanations provided to us and as confirmed bythe management the transactions entered into with the related parties are in compliancewith section 177 and 188 of Companies Act 2013 where applicable and the details havebeen disclosed in the Financial Statements in accordance with the applicable accountingstandards;

xiv) The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review;

xv) According to the information and explanations provided to us and as confirmed bythe management the company has not entered into any non-cash transactions with directorsor persons connected with him during the year under review;

xvi) The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934;

For SINGHI & CO.
Chartered Accountants
Firm Regn No. 302049E
Sd/-
(SUDESH CHORARIA)
Place: Chennai Partner
Date : 30th May 2017. Membership No. 204936

"ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in our Report of even date on the financial statements of NATIONAL OXYGENLIMITED as at and for the year ended 31st March 2017)

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 NATIONALOXYGEN LIMITED ("the Company") as of 31st Mach 2017 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". 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 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 issued by the Institute ofChartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

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 judgement 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 authorisation 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 March 31 2017 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 SINGHI & CO.
Chartered Accountants
Firm Regn No. 302049E
Sd/-
(SUDESH CHORARIA)
Place: Chennai Partner
Date : 30th May 2017. Membership No. 204936