You are here » Home » Companies » Company Overview » I G Petrochemicals Ltd

I G Petrochemicals Ltd.

BSE: 500199 Sector: Industrials
NSE: IGPL ISIN Code: INE204A01010
BSE 00:00 | 17 Sep 171.75 -17.35
(-9.18%)
OPEN

190.00

HIGH

190.00

LOW

170.00

NSE 00:00 | 17 Sep 171.30 -18.30
(-9.65%)
OPEN

189.15

HIGH

189.15

LOW

169.70

OPEN 190.00
PREVIOUS CLOSE 189.10
VOLUME 10978
52-Week high 496.50
52-Week low 129.90
P/E 6.20
Mkt Cap.(Rs cr) 529
Buy Price 172.05
Buy Qty 92.00
Sell Price 174.90
Sell Qty 29.00
OPEN 190.00
CLOSE 189.10
VOLUME 10978
52-Week high 496.50
52-Week low 129.90
P/E 6.20
Mkt Cap.(Rs cr) 529
Buy Price 172.05
Buy Qty 92.00
Sell Price 174.90
Sell Qty 29.00

I G Petrochemicals Ltd. (IGPL) - Auditors Report

Company auditors report

To the Members of I G Petrochemicals Limited

REPORT ON THE AUDIT OF THE STANDALONE IND AS FINANCIAL STATEMENTS

Opinion

We have audited the accompanying standalone Ind

AS financial statements of I G Petrochemicals Limited (“theCompany”) which comprise the Balance Sheet as at 31st March 2019 and the Statementof Profit and Loss

(including other comprehensive income) Statement of Changes in Equityand Statement of Cash Flows for the year then ended and notes to the standalone Ind ASfinancial statements including a summary of significant accounting policies and otherexplanatory information (hereinafter referred as “the standalone Ind AS financialstatements”).

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone Ind AS financial statements give theinformation required by the Companies Act 2013 (“the Act”) in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at 31st March 2019and profit (including other comprehensive income) changes in equity and its cashflows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Act. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit ofthe Standalone Ind AS Financial Statements section of our report. We are independent ofthe Company in accordance with the Code of Ethics issued by the Institute ofChartered Accountants of India together with the ethical requirements that are relevant toour audit of the standalone Ind AS financial statements under the provisions of the Actand the Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.

Key Audit Matters

Key audit matters are those matters that in our professionaljudgement were of most significance in our audit of the standalone Ind AS financialstatements of the current period. These matters were addressed in the context of our auditof the standalone Ind AS financial statements as a whole and in forming our opinionthereon and we do not provide a separate opinion on these matters.

Key audit matter How our audit addressed the key audit matter
Deferred tax asset on impairment in value of investments Our audit procedures include the following substantive procedures:
The Company has recorded impairment in the value of investments ? in IGPL International Limited its wholly owned subsidiary of र 950 lakhs as at 31st March 2019.
? Obtained understanding of the management judgement
? The Company has not recognised deferred tax asset on the said impairment provision. ? We read and analysed external advise obtained by the Company
? Recognition of deferred tax asset involves significant management judgement to determine the possible outcome of deductibility of this charge for current tax in future years consequently having an impact on related accounting and disclosures in the standalone financial statements. ? We discussed the matter with appropriate senior management
? Refer Note 2 to the standalone financial statements.

Other Information

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the Directors report Corporate Governancereport and Management Discussion and Analysis of Annual report but does not include thefinancial statements and our auditor's report thereon.

The Directors report and Management Discussion and Analysis of Annualreport is expected to be made available to us after the date of this auditor'sreport.

Our opinion on the standalone Ind AS financial statements does notcover the other information and we will not express any form of assurance conclusionthereon. In connection with our audit of the standalone Ind AS financial statements ourresponsibility is to read the other information identified above when it becomes availableand in doing so consider whether the other information is materially inconsistent withthe financial statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated.

When we read the Directors report and Management Discussion andAnalysis of Annual report if we conclude that there is a material misstatement thereinwe are required to communicate the matter to those charged with governance.

Responsibilities of Management for the Standalone Ind AS FinancialStatements

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these standaloneInd AS financial statements that give a true and fair view of the state of affairs profit/ loss (including other comprehensive income) changes in equity and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting

Standards (Ind AS) specified under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities selection and application of appropriate accountingpolicies making judgements and estimates that are reasonable and prudent and designimplementation 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 standalone Ind

AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

In preparing the financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so. The Board of Directors are alsoresponsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the

Standalone Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether thestandalone Ind AS financial statements as a whole are free from material misstatementwhether due to fraud or error and to issue an auditor's report that includes ouropinion. Reasonable assurance is a high level of assurance but is not a guarantee that anaudit conducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone Ind AS financialstatements. As part of an audit in accordance with SAs we exercise professional judgementand maintain professional skepticism throughout the audit. We also:

? Identify and assess the risks of material misstatement of thefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

? Obtain an understanding of internal control relevant to the auditin order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the company has adequate internal financial controls system in place and theoperating effectiveness of such controls.

? Evaluate the appropriateness of accounting policies used andthere as on ableness of accounting estimates and related disclosures made by management.

? Conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone

Ind AS financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause theCompany to cease to continue as a going concern.

? Evaluate the overall presentation structure and content of thestandalone Ind AS financial statements including the disclosures and whether thestandalone Ind AS financial statements represent the underlying transactions and events ina manner that achieves fair presentation. We communicate with those charged withgovernance regarding among other matters the planned scope and timing of the audit andsignificant including any significant that we identify during our audit. We also providethose charged with governance with a statement that we have complied with relevant ethicalrequirements regarding independence and to communicate with them all relationships andother matters that may reasonably be thought to bear on our independence and whereapplicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalone IndAS financial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

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 Section143(11) of the Act we give in the “Annexure A” a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable. doubt on the

(A) As required by Section 143(3) of the Act we report that: (a) Wehave sought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit.

(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and

Loss (including other comprehensive Income) the Statement of Changesin Equity and the Statement of Cash Flows dealt with by this Report are in agreement withthe books of account. (d) In our opinion the aforesaid standalone Ind AS financialstatements comply with the audit findings Indian Accounting Standards specified underdeficiencies in internal control Section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended.

(e) On the basis of the written representations received from thedirectors as on 31st March 2019 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2019 from being appointed as a director interms of Section 164 (2) of the Act. (f) With respect to the adequacy of the internalfinancial controls over financial reporting of the Company and the operating effectivenessof such controls refer to our separate Report in “Annexure B”. (B) With respectto the other matters to be included in the Auditor's Report in accordance with Rule11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to the best ofour information and according to the explanations given to us: i. The Company hasdisclosed the impact of pending litigations on its financial position in its standaloneInd AS financial statements Refer Note 31 to the financial statements;

ii. The Company has made provision as required under theapplicable law or accounting standards for material foreseeable losses if any onlong-term contracts including derivative contracts;

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

(C) With respect to the other matters to be included in theAuditor's Report in accordance with the requirements of Section 197(16) of the Actas amended in our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of Section 197 of the Act.

For Uday & Co. For ASA & Associates LLP
Chartered Accountants Chartered Accountants
Firm's Registration No. Firm's Registration No.
004440S 009571N/N500006
K Sathyanarayanan Prateet Mittal
Partner Partner
Membership No. 203644 Membership No. 402631
Place : Mumbai
Date : 22nd May 2019

ANNEXURE - A TO THE INDEPENDENT AUDITORS' REPORT

As referred to in paragraph 1 under ‘Report on Other Legal andRegulatory Requirements' of our report of even date

(i) a) As per information and explanation provided to us and based onour examination of the records of the Company the Company has maintained proper recordsshowing full particulars including quantitative details and situation of fixed assets.

b) As per information provided before us the fixed assets werephysically verified by the management at reasonable intervals and no materialdiscrepancies were noticed.

c) As per information provided to us and to the best of our knowledgeand belief the title deeds of immovable properties are held in the name of the Company.

(ii) As per information provided to us and to the best of our knowledgeand belief the physical verification of inventory has been conducted by the management atreasonable intervals. No material discrepancies have been noticed on physical verificationof inventories as compared to book records.

(iii) The Company has granted loan to one body corporate covered in theregister maintained 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 the loan hadbeen granted to the body corporate listed in the register maintained under section 189 ofthe Act were not prima facie prejudicial to the interest of the Company.

b) In case of the loan granted to the body corporate listed in theregister maintained under section 189 of the Act the borrower have been regular in thepayment of the principal and interest as stipulated.

c) There is no overdue amount in respect of the loan granted to thebody corporate listed in the register maintained under section 189 of the Act.

(iv) According to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act.

(v) According to the information and explanations given to us duringthe financial year the Company has not accepted deposits within the meaning of Section 73to 76 of the Act. Accordingly paragraph 3(v) of the Order is not applicable.

(vi) We have broadly reviewed the books of account maintained by theCompany pursuant to the Rules made by the Central Government for the maintenance of costrecords under sub-section (1) of Section 148 of the Act in respect of Company'sproducts and are of the opinion that prima facie the prescribed accounts and recordshave been made and maintained. However we have not made a detailed examination of thecost records with a view to determine whether they are accurate or complete.

(vii) a) According to the information provided and explanations givento us and based on our examination of the records of the Company the company is generallyregular in depositing with appropriate authorities undisputed statutory dues includingprovident fund employee's state insurance income tax goods and service tax dutyof customs and other statutory dues applicable to it. There are no material outstandingstatutory dues existing as on the last day of the financial year which is outstanding formore than six months from the day these becomes payable.
b) A ccording to the information and explanations given to us and based on our examinationof the records of the

Company there are no dues of income tax sales tax service tax dutyof customs duty of excise value added tax which have not been deposited on account ofany dispute other than those indicated below :

Name of the statute Nature of disputed dues Amount ( In lakhs) Year to which demand relates Forum where dispute is pending
Central Excise Act 1944 Excise Duty 1699.30 Various Years from 1997 to 2009 CESTAT
Central Excise Act 1944 Excise Duty 112.62 Various Years from 1997 to 2015 Commissioner of GST
Income Tax Act 1961 Income Tax 4914.36 # Various Assessment Year from 1992-93 to 2016-17 Karnatka High Court / ITAT/ CIT (Appeal)

# After taking into consideration of the payments under protest / MATadjustments.

(viii) According to the information and explanations given to us theCompany has not defaulted in repayment of loans or borrowings to financial institutionbank Government or dues to debenture holders.

(ix) In our opinion and according to the information and explanationsgiven to us and to the best of our knowledge and belief the Company did not take any loan& did not raise money by way of initial public offer or further public offer duringthe year.

(x) According to the information and explanations given to us and tothe best of our knowledge and belief no fraud by or on the Company by its officers oremployees has been noticed or reported during the year.

(xi) According to the information and explanations given to us andbased on examination of the record of the Company the Company has paid/ provided for themanagerial remuneration in accordance with requisite approval mandated by the provisionsof Section 197 read with schedule V to the Act.

(xii) According to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has enteredtransactions during the period with the related parties as per the provisions of section177 and

188 of the Act and wherever applicable the details have been disclosedin the financial statements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year.

(xv) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not entered intonon-cash transactions with directors or persons connected with him. Accordingly paragraph3(xv) of the Order is not applicable. (xvi) According to the information and explanationsgiven to us the Company is not required to be registered under section 45-IA of theReserve Bank of India Act 1934.

For Uday & Co. For ASA & Associates LLP
Chartered Accountants Chartered Accountants
Firm's Registration No. Firm's Registration No.
004440S 009571N/N500006
K Sathyanarayanan Prateet Mittal
Partner Partner
Membership No. 203644 Membership No. 402631
Place : Mumbai
Date : 22nd May 2019

ANNEXURE - B TO THE INDEPENDENT AUDITORS' REPORT

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 (“the Act”)

We have audited the internal financial controls over financialreporting of I G Petrochemicals Limited (“the Company”) as of 31st March 2019in conjunction with our audit of the standalone Ind AS financial statements of the Companyfor the year ended on that date.

MANAGEMENT'S RESPONSIBILITY FOR INTERNAL

FINANCIAL CONTROLS

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India(‘ICAI'). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

AUDITORS' RESPONSIBILITY

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reportin g based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the “Guidance Note”) and the Standards on Auditing issuedby ICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls both applicable to anaudit of Internal Financial Controls and both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a our audit opinion on the Company's internal financialcontrols system over financial reporting.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

A company's internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlover financial 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 FINANCIALREPORTING

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditions orthat the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively at 31st March 2019 based onthe 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.

For Uday & Co. For ASA & Associates LLP
Chartered Accountants Chartered Accountants
Firm's Registration No. Firm's Registration No.
004440S 009571N/N500006
K Sathyanarayanan Prateet Mittal
Partner Partner
Membership No. 203644 Membership No. 402631
Place : Mumbai
Date : 22nd May 2019