The Members of Noble Explochem Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Noble Explochem Limited (theCompany) which comprise the Balance Sheet as at 31 March 2015 the Statement ofProfit and Loss and the Cash Flow Statement of the Company for the year then ended and asummary of the significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
The management and Board of Directors of the Company are responsible for the mattersstated in Section 134(5) of the Companies Act 2013 (the Act) withrespect to the preparation of these financial statements that give a true and fair view ofthe financial position financial performance and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act read with rule 7 of Companies (Accounts)Rules 2014. This responsibility includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; design implementation and maintenance of adequate internal financial controlsthat are operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
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 the ethical requirements and plan and perform the audit toobtain reasonable 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 theauditors 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 the internal control relevant to the Companys preparation andfair presentation of the financial statements in order to design audit procedures that areappropriate in the circumstances but not for the purpose of expressing an opinion on theeffectiveness of the entitys internal control. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Management as well as evaluating the overall presentation of thefinancial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
Matter of Emphasis
The Company's operations have been suspended since December 2006. The Company hasincurred losses during past several years and the company's net worth has been completelyeroded. In view of all this we are unable to comment whether the company can beconsidered as a Going Concern and whether its assets would be adequate to meetits liabilities.
The Company has been declared as Sick unit by the Board for Industrial and FinancialsReconstruction
(BIFR) via their order dated 22n July 2011. However the Company has notreceived Draft rehabilitation Scheme from IDBI Bank (i.e. Operating Agency appointed bythe BIFR) till the date of our review.
As explained in Note No. 21 of Notes to Accounts the expenses / liabilitiesaggregating Rs.154.74 lacs for the year 2014-2015 have not been provided due to whichcurrent year loss and accumulated losses are under stated by Rs. 154.74 lacs.
As explained in Note No. 24 of Notes to Accounts calls in arrears is unreconciled tothe extent of Rs. 2.25 Lacs.
As explained in Note No. 26 of Notes to Accounts no provision has been made for loansand advances amounting to Rs. 109.94 lacs which are prima facie doubtful of recovery andin our opinion current years loss and accumulated losses of the company are understated by provision of such doubtful advances
Depreciation on tangible and intangible assets (as per Schedule II of the CompaniesAct 2013) has not been provided (Refer Note NO. 22)
As explained in Note No. 25 the liability on account of non-fulfillment of exportobligation has not been considered since not ascertainable.
Attention is also invited in respect of the Share Application money received by theCompany which is pending for allotment in terms of Section 73 read with Companies(Acceptance of Deposits) Amendment Rules 2015.
In our opinion and to the best of our information and according to the explanationsgiven to us and subject to what is stated above and its consequential impacts thefinancial statements give the information required by the Act in the manner so requiredand give a true and fair view in conformity with the accounting principles is generallyaccepted in India:
(a) in the case of the Balance Sheet of the state of affairs of the Company as at 31March2015;
(b) in the case of the Statement of Profit and Loss of the loss of the Company for theyear ended on that date and;
(c) in the case of the Cash Flow Statement of the cash flows for the year ended onthat date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2015 (theOrder) issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure a statement on the matters specified inparagraphs 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 appears from our examination of those books;
(c) the Balance Sheet Statement of Profit and Loss and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account;
(d) in our opinion the Balance Sheet Statement of Profit and Loss and the Cash FlowStatement comply with the Accounting Standards referred to in Section133 of the Act readwith rule 7 of the Companies (Accounts) Rules 2014 except the following accountingstandards :
Accounting Standard -6: Depreciation Accounting
Accounting Standard -15:Employees Benefits
Accounting Standard -28: Impairment of Assets
Accounting Standard -29: Contingent Liabilities Assets and Provisions
(e) On the basis of the written representations received from the directors as on 31March2015 and taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2015 from being appointed as a director in terms ofsub-section (2) of section 164 of the Act.
(f) In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditors Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014::
i. The Company does not have any pending litigations which would impact its financialposition.
ii. The Company has no long-term contracts including derivative contracts; as such thequestion of commenting on any material foreseeable losses thereon does not arise.
iii. There has been delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.
For Amar Bafna & Associates
Firm Registration No: 114854W
Membership No. 048639
Date: May30 2015
ANNEXURE REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING REPORT ON OTHER LEGAL ANDREGULATORY REQUIREMENTS OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF THE NOBLEEXPLOCHEM LIMITED WE REPORT THAT:
(i) (a) The Company has not maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.
(b) The fixed assets of the company have not been physically verified by themanagement during the year therefore we are unable to comment on discrepancies in absenceof such physical verification.
(ii) The Company does not have any inventories on hand as on the reporting date.
(iii) As informed during the year the Company has not granted any loans secured orunsecured to companies firms or other parties covered in the register maintained underSection 189 of the Act. Therefore the provisions of Clause 3 (iii) (iii)(a) and (iii)(b)of the said Order are not applicable to the Company.
(iv) According to the information and explanations given to us we are of the pinionthat the Company has not accepted any deposits from the public within the meaning ofSection 73 to 76 of The Companies Act 2013. except Share Application pending forallotment in terms of Section 73 read with Companies (Acceptance of Deposits) AmendmentRules 2015.
(v) In our opinion and according to explanation given to us the company does nothave a formal internal control system.
(vi) The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act for the Companys products and activities.
(vii) (a) According to the information and explanations given to us and the recordsof the Company examined by us in our opinion the Company is no regular in depositing theundisputed statutory dues including provident fund investor education and protectionfund employees state insurance income tax sales tax wealth tax service taxcustoms duty excise duty value added tax cess and any other statutory dues asapplicable with the appropriate authorities.
Further since the Central Government has till date not prescribed the amount of cesspayable under section 441A of the Companies Act 1956 we are not in a position to commentupon the regularity or otherwise of the According to the information and explanationsgiven to us and the records of the Company examined by us undisputed dues in respect ofprovident fund investor education and protection fund employees state insuranceincome- tax wealth-tax service tax sales-tax customs duty excise duty cess and otherstatutory dues which were outstanding at the year end for a period of more than sixmonths from the date they became payable are as follows:
|Name of the Statute ||Nature of the dues ||Amount |
|Income Tax Act ||Income Tax and TDS ||26.60 |
|Income Tax Act ||Income Tax (as informed to us that the same will be provided in the books of account in the year of the payment) ||2.11 |
|BST/CST and VAT ||BST/CST and VAT ||54.33 |
|Professional Tax Act ||Professional Tax Act ||10.73 |
|Service T ax ||Service T ax ||1.35 |
|Employees Provident Fund ||Provident Fund ||16.82 |
|ESIC Act ||ESIC ||27.46 |
|Central Excise Act ||Excise Duty ||7.75 |
|Companies Act ||Investor Education and Protection Fund ||1.43 |
|Fringe Benefit Tax ||Fringe Benefit ||13.36 |
|Wealth T ax Act ||Wealth Tax ||1.31 |
|Non Agriculture & Gram Panchayat Tax ||Non Agriculture & Gram Panchayat Tax ||25.22 |
(b) According to the records of the Company the dues outstanding of income-taxsales-tax wealth-tax service tax customs duty excise duty and cess on account of anydispute are as follows:
|Name of the statute ||Nature of dues ||Amount ||Period to which amount relates ||Forum where dispute is pending |
|Central Excise T ariff Act ||Excise Duty ||15.90 ||Various Years ||CESTAT Mumbai |
(c) There has been delay in transferring amounts required to be transferred inaccordance with the relevant provisions of the Companies Act 1956 (1 of 1956) and rulesmade there under to the Investor Education and Protection Fund by the Company.
(viii) In The Company had accumulated losses exceeding its net worth as at 31stMarch 2015 and it has incurred cash losses during the financial year covered byour audit and in the immediately preceding financial year. The company has been declaredsick by the Board for Industrial and Financial Reconstruction vide order dated 22.07.2011
(ix) In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of dues to financial institutions Banks anddebenture holders during the year.
(x) In our opinion and according to the information and the explanations given to usthe Company has not given any guarantee for loans taken by others from banks or financialinstitutions.
(xi) Based on our examination of documents and records and according to the informationand explanations given to us by the Management the Company has not taken any term loanduring the year.
(xii) According to the information and explanations given by the management we reportthat no fraud on or by the company was noticed or reported during the year.
For Amar Bafna& Associates
Firm Registration No: 114854W
Membership No. 048639
Date: May30 2015