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I G Petrochemicals Ltd.

BSE: 500199 Sector: Industrials
NSE: IGPL ISIN Code: INE204A01010
BSE 00:00 | 19 Oct 297.70 2.15
(0.73%)
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297.75

HIGH

300.00

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295.65

NSE 00:00 | 19 Oct 297.45 1.40
(0.47%)
OPEN

302.90

HIGH

302.90

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OPEN 297.75
PREVIOUS CLOSE 295.55
VOLUME 731
52-Week high 338.00
52-Week low 81.25
P/E 62.15
Mkt Cap.(Rs cr) 917
Buy Price 292.60
Buy Qty 2.00
Sell Price 304.50
Sell Qty 95.00
OPEN 297.75
CLOSE 295.55
VOLUME 731
52-Week high 338.00
52-Week low 81.25
P/E 62.15
Mkt Cap.(Rs cr) 917
Buy Price 292.60
Buy Qty 2.00
Sell Price 304.50
Sell Qty 95.00

I G Petrochemicals Ltd. (IGPL) - Auditors Report

Company auditors report

Opinion

We have audited the accompanying standalone financial statements of I G PetrochemicalsLimited ("the Company") which comprise the Standalone

Balance Sheet as at 31st March 2020 and the Standalone Statement of Profitand Loss (including other comprehensive income) Standalone Statement of Changes in Equityand Standalone Statement of Cash Flows for the year then ended and notes to thestandalone financial statements including a summary of significant accounting policiesand other explanatory information (hereinafter referred as "the standalone financialstatements").

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 (the "Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at 31st March 2020 the profit and totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on

Auditing (SAs) specified under section 143(10) of the Companies Act 2013 (‘theAct'). Our responsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport.

We are independent of the Company in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India ("ICAI") together with the ethicalrequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriatea basis for our opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Key audit matter How our audit addressed the key audit matter
Revenue Recognition (Ind AS 115)
Revenue from the sale of goods is recognized when the Company performs its obligation to its customers and the amount of revenue can be measured reliably and recovery of the consideration is probable. The timing of such recognition in case of sale of goods is when the control over the same is transferred to the customer which is mainly upon delivery. Our audit approach was a combination of test of internal controls and substantive procedures including:
The timing of revenue recognition is relevant to the reported performance of the Company. Assessing the appropriateness of the Company's revenue recognition accounting policies in line with Ind AS 115 ("Revenue from Contracts with Customers") and testing thereof.
The management considers revenue as a key measure for evaluation of performance. There is a risk of revenue being recorded before control is transferred. • Evaluating the design and implementation of Company's controls in respect of revenue recognition.
Testing the effectiveness of such controls over revenue cut off at year- end.
Refer Note A to the Standalone Financial Statements - Significant Accounting Policies. • Testing the supporting documentation for sales transactions recorded during the period closer to the year end and subsequent to the year end.
• Performing analytical procedures on current year revenue based on monthly trends and where appropriate conducting further enquiries and testing.
Ind AS 116 – Leases
The Company has adopted Ind AS 116 Leases (Ind AS 116) in the current year. The application and transition to this accounting standard is complex and is an area of focus in our audit since the Company has number of leases with different contractual terms. Assessed and tested new processes and controls in respect of the lease accounting standard (Ind AS 116);
Assessed the Company's evaluation on the identification of leases based on the contractual agreements and our knowledge of the business;
Ind AS 116 introduces a new lease accounting model wherein lessees are required to recognize a right- • Evaluated the method of transition and related adjustments;
of-use (ROU) asset and a lease liability arising from a lease on the balance sheet. The lease liabilities are initially measured by discounting future lease payments during the lease term as per the contract/ arrangement. Adoption of the standard involves significant judgements and determination of the discount rates and the lease term. Additionally the standard mandates detailed disclosures in respect of transition. • Assessed and tested the presentation and disclosures relating to Ind AS 116 including disclosures relating to transition. estimates including
Refer Note A and Note 1 to the Standalone financial statements Significant Accounting Policies.

Emphasis of Matter

We draw your attention to Note No. 40 to the standalone financial statements whichexplains the management's assessment of the financial impact due to lockdown /restrictions related to the Covid-19 pandemic imposed by the Governments for which adefinitiveassessment of the impact is dependent upon future economic conditions.

Our opinion is not modified in respect of this matter.

Information other than the Standalone Financial Statements and Auditor's Report thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the

Management Discussion and Analysis Board's Report including Annexures to Board'sReport Business

Responsibility Report Corporate Governance Report and Shareholder Information butdoes not include the standalone financial statements and our auditor's report thereon.This other information is expected to be made available to us after the date of thisauditors' report.

Our opinion on the standalone financial statements does not cover the other informationand we will not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information identified above when it becomes available and in doingso consider whether the other information is materially inconsistent with the standalonefinancial statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated.

When we read such other information as and when made available to us and if we concludethat there is a material misstatement therein we are required to communicate the matterto those charged with governance.

Responsibilities of Management and those charged with governance for the StandaloneFinancial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the state of affairs profit / loss (including othercomprehensive income) changes in equity and cash flows the Company in accordance with theaccounting principles generally accepted in India including the

Indian Accounting Standards (Ind AS) specified under section 133 of the Act read withthe Companies (Indian Accounting Standards) Rules 2015 as amended.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists.

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 financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the

Act we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant Company's ability tocontinue as a going concern.

If we conclude that a material uncertainty exists we are required to draw attention inour auditor's report to the related disclosures in the standalone financial statements orif such disclosures are inadequate to modify our opinion. Our conclusions are based onthe audit evidence obtained up to the date of our auditor's report. However future eventsor conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

• Materiality is the magnitude of misstatements in the standalone financialstatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the standalone financial statements may beinfluenced. quantitative materiality and qualitative factors in (i) planning the scope ofour audit work and in evaluating the results of our work; and (ii) to evaluate the effectof any identifiedmisstatements in the standalone financial statements.

• We communicate with those charged with governance regarding among othermatters the planned scope and timing of the audit and significant significant identifyduring our audit.

• We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.

• From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the standalone financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.

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 Section 143(11) of the Act we give in the"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable.

2. As required by Section 143(3) of the Act we report that: (a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief 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 Standalone Balance Sheet the

Standalone Statement of Profit and Loss

(including other comprehensive Income) the Standalone Statement of Changes in Equityand the Standalone Statement of Cash Flows dealt with by this Report are in agreement withthe books of account.

(d) In our opinion the aforesaid standalone financial statements comply with theIndian Accounting Standards specified under Section 133 of the Act read with the

Companies (Indian Accounting Standards)

Rules 2015 as amended.

(e) On the basis of the written representations received from the directors as on 31stMarch 2020 taken on record by the Board of

Directors none of the directors is disqualified as on 31st March 2020 frombeing appointed as a director in terms of 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 refer to ourseparate Report in "Annexure B".

(g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended:

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.

(h) 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. TheCompany has disclosed the impact of pending litigations on its financial position in itsstandalone financial statements Refer Note 31 to the standalone financial ii. The Companyhas made provision as required under the applicable law or accounting standards formaterial foreseeable losses if any on long-term contracts including derivativecontracts. iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection

Fund by the Company.

For UDAY & Co.

Chartered Accountants

Firm's Registration No.

004440S

K Sathyanarayanan

Partner

Membership No. 203644 UDIN :20203644AAAAAI4449

Place: Bangalore Date: 24th June 2020

For ASA & Associates LLP

Chartered Accountants

Firm's Registration No.

009571N/N500006

Prateet Mittal

Partner

Membership No. 402631 UDIN : 20402631AAAAHH1535

Place: Delhi

Date: 24th June 2020

Annexure - A to the Independent Auditors' Report

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

(i) a) As per information and explanation provided to us and based on our examinationof the records of the Company the Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets. b) According toinformation and explanation given to us there is a regular programme of physicalverification of the fixed assets by the management which in our opinion is reasonablehaving regard to the size of the Company and nature of its assets. As informed to us nomaterial discrepancies were noticed on such verification. c) As per information providedto us and to the best of our knowledge and belief the title deeds of immovable propertiesare held in the name of the Company.

(ii) As per information provided to us and to the best of our knowledge and belief thephysical verification of inventory has been conducted by the management at reasonableintervals. No material discrepancies have been noticed on physical verification ofinventories as compared to book records.

(iii) 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 ouropinion the rate of interest and other terms and conditions on which the loan had beengranted to the body corporate listed in the register maintained under section 189 of theAct were not prima facie prejudicial to the interest of the Company. b) In case of theloan granted to the body corporate listed in the register maintained under section 189 ofthe Act the borrower have been regular in the payment of the principal and interest asstipulated. c) There is no overdue amount in respect of the loan granted to the bodycorporate listed in the register maintained under section 189 of theAct.

(iv) According to the information and explanations given to us the Company hascomplied with the provisions of section 185 and 186 of the Act.

(v) According to the information and explanations given to us during thefinancialyear the Company has not accepted deposits within the meaning of

Section 73 to 76 of the Act. Accordingly paragraph 3(v) of the Order is notapplicable.

(vi) We have broadly reviewed the books of account maintained by the Companypursuant to the Rules made by the Central Government for the maintenance of cost recordsunder sub-section (1) of Section 148 of the Act in respect of Company's productsand are of the opinion that prima facie the prescribed accounts and records have beenmade and maintained. However we have not made a detailed examination of the cost recordswith a view to determine whether they are accurate or complete.

(vii) a) According to the information provided and explanations given to us and basedon our examination of the records of the Company the company is generally regular indepositing with appropriate authorities undisputed statutory dues including providentfund employee's state insurance income tax sales tax service tax duty of customsduty of excise value added tax cess and other statutory dues applicable to it. There areno material outstanding statutory dues existing as on the last day of the financial yearwhich is outstanding for more than six months from the day these be comes payable. b)According to the information and explanations given to us and based on our examination ofthe records of the Company there are no dues of income tax sales tax GST duty ofcustoms GST which have not been deposited on account of any dispute other than thoseindicated below:

Name of the statute Nature of disputed dues Amount (Rs. in lakhs) Year to which demand relates Forum where dispute is pending
Central Excise Act 1944 Excise Duty 2000.36 Various Years from 1997 to 2009 CESTAT
Income Tax Act 1961 Income Tax 5289.26 # Various Assessment Year from 1992-93 to 2017-18 Karnatka High Court / ITAT/ CIT (Appeals)

(viii)According to the information and explanations given to us the Company has notdefaulted in repayment of loans or borrowings to financial institution bank Governmentor dues to debenture holders.

(ix) In our opinion and according to the information and explanations given to us andto the best of our knowledge and belief the Company did not take any loan & did notraise money by way of initial public offer the year.

(x) According to the information and explanations given to us and to the best of ourknowledge and belief no fraud by or on the Company by its officers or employees has beennoticed or reported during the year.

(xi) According to the information and explanations given to us and based on examinationof the record of the Company the Company has paid / provided for the managerialremuneration in accordance with requisite approval mandated by the provisions of Section197 read with schedule

V to the Act.

(xii) According to the information and explanations given to us the Company is not aNidhi Company. Accordingly paragraph 3(xii) of the Order is not applicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has entered transactions duringthe period with the related parties as per the provisions of section 177 and

188 of the Act and wherever applicable the details have been disclosed in theFinancial Statements as required by the applicable accounting standards.

(xiv) 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 fully or partly convertible debentures duringthe year. or further public offer during

(xv) 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 non- cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

(xvi) According to the information and explanations given to us the Company is notrequired to be registered under section 45-IA of the Reserve

Bank of India Act 1934.

For UDAY & Co.

Chartered Accountants

Firm's Registration No.

004440S

K Sathyanarayanan

Partner

Membership No. 203644 UDIN :20203644AAAAAI4449

Place: Bangalore Date: 24th June 2020

For ASA & Associates LLP

Chartered Accountants

Firm's Registration No.

009571N/N500006

Prateet Mittal

Partner

Membership No. 402631 UDIN : 20402631AAAAHH1535

Place: Delhi

Date: 24th June 2020

Annexure - B to the Independent Auditors' Report

(Referred to in paragraph 1(f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the Members of I G Petrochemicals Ltd of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 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 2020 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 Board of Directors of the Company are responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that wereoperatingeffectivelyfor ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial our audit. We conducted our audit in accordance with the

Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the"Guidance Note") and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of

India. 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 opinion on the Company's internal financial controls system over financialreporting.

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 controlreportingbasedon over financial reporting may become inadequate because of changes inconditions or that the degree of compliance with the policies or procedures maydeteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting wereoperatingeffectivelyas at 31 st March 2020 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 UDAY & Co.

Chartered Accountants

Firm's Registration No.

004440S

K Sathyanarayanan

Partner

Membership No. 203644 UDIN :20203644AAAAAI4449 basisforouraudit Place: Bangalore

Date: 24th June 2020

For ASA & Associates LLP

Chartered Accountants

Firm's Registration No.

009571N/N500006

Prateet Mittal

Partner

Membership No. 402631 UDIN : 20402631AAAAHH1535

Place: Delhi

Date: 24th June 2020

.