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CIL Nova Petrochemicals Ltd.

BSE: 533407 Sector: Industrials
NSE: CNOVAPETRO ISIN Code: INE672K01025
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OPEN 18.50
PREVIOUS CLOSE 20.20
VOLUME 2
52-Week high 42.00
52-Week low 14.70
P/E
Mkt Cap.(Rs cr) 50
Buy Price 16.30
Buy Qty 200.00
Sell Price 18.45
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OPEN 18.50
CLOSE 20.20
VOLUME 2
52-Week high 42.00
52-Week low 14.70
P/E
Mkt Cap.(Rs cr) 50
Buy Price 16.30
Buy Qty 200.00
Sell Price 18.45
Sell Qty 49.00

CIL Nova Petrochemicals Ltd. (CNOVAPETRO) - Auditors Report

Company auditors report

To

The Members of

CIL NOVA PETROCHEMICALS LIMITED

Ahmedabad

1. Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of CIL NOVAPETROCHEMICALS LIMITED ("the Company") which comprise the Balance Sheet as at31st March 2018 and the Statement of Profit and Loss (including Other ComprehensiveIncome) the Cash Flow Statement and the Statement of Changes in Equity for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

2. Management's Responsibility for the Standalone Ind AS 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 ofthe standalone Ind AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income changes in equityand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards(Ind AS) prescribed undersection 133 of the Act.

This responsibility also 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; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

3. Auditors' Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit of the standalone Ind AS financial statements in accordance withthe 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 standalone Ind AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide 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 explanationsgiven to us the afore said standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including the Ind AS of thefinancial position of the Company as at 31st March 2018 and its financial performanceincluding other comprehensive income its cash flows and the changes in equity for theyear ended on that date.

5. Other Matters

The comparative financial information of the Company for the year ended 31st March 2017and the transition date opening balance sheet as at 1st April 2016 included in thesestandalone Ind AS financial statements are based on the previously issued statutoryfinancial statements prepared in accordance with the Companies (Accounting Standards)Rules 2006 audited by other auditor whose report for the year ended 31st March 2017 and31st March 2016 dated 30th May 2017 and 23rd May 2016 respectively expressed anunmodified opinion on those standalone financial statements as adjusted for thedifferences in the accounting principles adopted by the Company on transition to the IndAS which have been audited by other auditor.

6. Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order2016 ("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 theOrder.

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 the Cash Flow Statement andStatement of Changes in Equity dealt with by this Report are in agreement with the booksof account.

d) In our opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards prescribed under section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in terms ofSection164(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 pending litigations which would have impact its financialposition in its standalone Ind AS financial statements - Refer Note 37 to the financialstatements;

ii. The Company does not have 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 during the year ended 31stMarch 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 NOVAPETROCHEMICALS LIMITED for the year ended 31st March 2018.

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 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 guarantees:

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) Order2016 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 service tax duty of customs duty ofexcise value added tax cess and other statutory dues with the appropriate authoritiesapplicable to it except in few cases in respect of Tax Deducted at Source. According tothe information and explanations given to us no undisputed amounts payable in respectstatutory dues were outstanding as at 31st March 2018 for a period of more than sixmonths from the date they became payable.

(b) According to the records of the company the dues of income tax central sales Taxservice taxduty of customs duty of excise value added tax or cess which have not beendeposited 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 (?) Forum where dispute is pending
Income Tax Act1961 Income Tax Demand & Interest 2010-11 1141960 Income Tax Appellate Tribunal
Income Tax Demand & Interest 2011-12 11693740 Income Tax Appellate Tribunal
Income Tax Demand & Interest 2012-13 4340 Income Tax Appellate Tribunal
Income Tax Demand & Interest 2013-14 13540900 Commissioner of Income Tax (Appeals)
Income Tax Penalty 2008-09 385618 Commissioner of Income Tax (Appeals)
Income Tax Penalty 2010-11 765401 Commissioner of Income Tax (Appeals)
Income Tax Penalty 2011-12 1294840 Commissioner of Income Tax (Appeals)
The Central Excise and Customs Act Excise Duty & Penalty 2003-04 3230730 Custom Excise and Service Tax AppellateTribunal
The Finance Act 1994 Service Tax & Penalty 2004-05 3398641 Custom Excise and Service Tax AppellateTribunal
Service Tax & Penalty 2005-06 146479 Assistant Commissioner of Central Excise
The Textile Committee Amendment Act 1973 Textile Cess 1995 to 2005 5090119 Textiles Committee Government of India Ministry ofTextiles
Gujarat Pollution Control Act Compensation 2004 to 2010 5164620 High Court of Gujarat

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 toFinancial Institutions Banks or debenture holders.

9. According to the information and explanations given to us the company had notraised any money by way of initial public offer or further public offer (including debtinstruments) during the year. According to the information and explanations given to usand on an overall examination of the balance sheet of the company in our opinion theterm loans taken during the year were applied for the purpose for which they wereobtained.

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 by it'sofficer 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 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 2013is not applicable hence clause (xvi) of Company's (Auditor's Report) Order 2016 is notapplicable.

16. In our opinion and according to the information and explanation given to us thecompany is not required to be registered under section 45-IA of Reserve Bank of India Act1934.

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 NOVAPETROCHEMICALS LIMITED for the year ended 31st March 2018.

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 2018 in conjunction with our audit of thestandalone financial statements of the Company for the year ended on that date. Management'sResponsibility 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 the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe 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 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 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 2018 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 Samir M Shah & Associates
Chartered Accountants
[Firm Regd. No. 122377W]
Place: Ahmedabad Sd/-
Date: 30/05/2018 (Samir M Shah)
Partner
[M. No.111052]