You are here » Home » Companies » Company Overview » Indraprastha Gas Ltd

Indraprastha Gas Ltd.

BSE: 532514 Sector: Others
NSE: IGL ISIN Code: INE203G01027
BSE 00:00 | 14 Aug 284.85 -5.65
(-1.94%)
OPEN

290.00

HIGH

293.50

LOW

280.85

NSE 00:00 | 14 Aug 285.05 -5.10
(-1.76%)
OPEN

289.30

HIGH

293.45

LOW

280.70

OPEN 290.00
PREVIOUS CLOSE 290.50
VOLUME 77230
52-Week high 344.20
52-Week low 235.85
P/E 29.10
Mkt Cap.(Rs cr) 19,940
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 290.00
CLOSE 290.50
VOLUME 77230
52-Week high 344.20
52-Week low 235.85
P/E 29.10
Mkt Cap.(Rs cr) 19,940
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Indraprastha Gas Ltd. (IGL) - Auditors Report

Company auditors report

To

The Members of

Indraprastha Gas Limited

Report on the Standalone Financial Statements

1. We have audited the accompanying standalone financial statements of Indraprastha GasLimited (the 'Company') which comprise the Balance Sheet as at 31 March 2017 theStatement of Profit and Loss (including Other Comprehensive Income) the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and a summary ofthe significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone Financial Statements

2. 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 of thesestandalone financial statements that give a true and fair view of the state of affairs(financial position) profit or loss (financial performance including other comprehensiveincome) cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards ('IndAS') specified under Section 133 of the Act. This responsibility also includes maintenanceof adequate accounting records in accordance with the provisions of the Act forsafeguarding the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

3. Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

4. 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 thereunder.

5. We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthese standalone financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the 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 controls 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.

7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on these standalone financial statements.

Opinion

8. 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 Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including Ind AS specified under Section133 of the Act of the state of affairs (financial position) of the Company as at 31 March2017 and its profit (financial performance including other comprehensive income) itscash flows and the changes in equity for the year ended on that date.

Other Matter

9. The comparative financial information for the year ended 31 March 2016 and thetransition date opening balance sheet as at 1 April 2015 prepared in accordance with IndAS included in these standalone financial statements are based on the previously issuedstatutory standalone financial statements for the year ended 31 March 2016 and 31 March2015 respectively prepared in accordance with Accounting Standards prescribed underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 (asamended) which were audited by the Deloitte Haskins & Sells whose reports dated 13 May2016 and 28 May 2015 respectively expressed unmodified opinion on those standalonefinancial statements and have been adjusted for the differences in the accountingprinciples adopted by the Company on transition to Ind AS which have been audited by us.Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

10. As required by the Companies (Auditor's Report) Order 2016 (the 'Order') issued bythe Central Government of India in terms of Section 143(11) of the Act we give in theAnnexure A a statement on the matters specified in paragraphs 3 and 4 of the Order.

11. As required by the Comptroller and Auditor General of India vide directions dated20 December 2016 issued under Section 143(5) of the Act we give our report on the mattersspecified in the aforementioned directions in Annexure B on taking into consideration theinformation explanations and written representations received from the management.

12. Further to our comments in Annexure A as required by Section 143(3) of the Act wereport that:

a) we have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose 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 financial statements dealt with by this report are in agreement withthe books of account;

d) in our opinion the aforesaid standalone financial statements comply with Ind ASspecified under Section 133 of the Act;

e) on the basis of the written representations received from the directors and taken onrecord by the Board of Directors none of the directors are disqualified as on 31 March2017 from being appointed as a director in terms of Section 164(2) of the Act;

f) we have also audited the internal financial controls over financial reporting(IFCoFR) of the Company as on 31 March 2017 in conjunction with our audit of thestandalone financial statements of the Company for the year ended on that date and ourreport dated 27 May 2017 as per Annexure C expressed unmodified opinion; and

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 (as amended) inour opinion and to the best of our information and according to the explanations given tous:

i. the Company as detailed in Note 35 to the standalone financial statements hasdisclosed the impact of pending litigations on its financial position;

ii. the Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

iii. there were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company; and

iv. the Company as detailed in Note 51 to the standalone financial statements hasmade requisite disclosures in these financial statements as to holdings as well asdealings in Specified Bank Notes during the period from 8 November 2016 to 30 December2016. We have relied on details provided by the banks as described in the aforementionednote for the purpose of testing certain details of the disclosure. Based on the auditprocedures performed and taking into consideration the information and explanations givento us in our opinion these are in accordance with the books of account maintained by theCompany.

For Walker Chandiok & Co LLP

Chartered Accountants

Firm's Registration No.: 001076N/N500013

Sd/-

per Neeraj Goel

Partner

Membership No.: 99514

Place: New Delhi

Date: 27 May 2017

Annexure A to the Independent Auditor's Report

Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit and to the best of our knowledge and beliefwe report that:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment.

(b) Other than fixed assets related to the underground natural gas distribution systemwhich as per management cannot be physically verified the Company has a regular programof physical verification of its fixed assets under which the fixed assets are verified ina phased manner over a period of two years which in our opinion is reasonable havingregard to the size of the Company and the nature of its assets. For the undergroundnatural gas distribution system the management has adequate controls in place tosafeguard the physical existence of the said distribution system.

(c) The title deeds of all the immovable properties (which are included under the head'Property plant and equipment') are held in the name of the Company except for certainimmovable properties taken on lease for which in one case the Company has an allotmentletter and for another it has entered into a memorandum of understanding with the lessorbut has however not entered into lease deeds per details given below:

(Rs. in Crores)

Nature of property Whether leasehold /freehold Gross block as on 31 March 2017 Net block as on 31 March 2017
Land Leasehold perpetual 9.83 9.83
Land Leasehold perpetual 7.15 7.15

(ii) The inventories of the Company comprise of natural gas and inventory of stores andspares parts. As explained to us having regard to the nature of the inventory of naturalgas the procedures followed by the management for estimation of natural gas quantitieswhich is based on volume of pipelines and the volume of cascades containing the naturalgas considering the standard temperature and pressures are reasonable and no materialdiscrepancies were noticed on such computation. Further in our opinion the managementhas conducted physical verification of inventory of stores and spare parts at reasonableintervals during the year. No material discrepancies were noticed on the aforesaidverification.

(iii) The Company has not granted any loan secured or unsecured to companies firmsLimited Liability Partnerships (LLPs) or other parties covered in the register maintainedunder Section 189 of the Act. Accordingly the provisions of clauses 3(iii)(a) 3(iii)(b)and 3(iii)(c) of the Order are not applicable.

(iv) In our opinion the Company has complied with the provisions of Sections 185 and186 of the Act in respect of loans investments guarantees and security.

(v) In our opinion the Company has not accepted any deposits within the meaning ofSections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (asamended). Accordingly the provisions of clause 3(v) of the Order are not applicable.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the Rules made by the Central Government for the maintenance of cost records undersub-section (1) of Section 148 of the Act in respect of Company's product and are of theopinion that prima facie the prescribed accounts and records have been made andmaintained. However we have not made a detailed examination of the cost records with aview to determine whether they are accurate or complete.

(vii) (a) The Company is regular in depositing undisputed statutory dues includingprovident fund employees' state insurance income-tax sales tax service tax duty ofcustoms duty of excise value added tax cess and other material statutory dues asapplicable to the appropriate authorities. Further no undisputed amounts payable inrespect thereof were outstanding at the year-end for a period of more than six months fromthe date they become payable.

(b) The dues outstanding in respect of income-tax sales tax service tax duty ofcustoms duty of excise and value added tax on account of any dispute are as follows:Statement of disputed dues (Rs. in Crores) Name of the Nature of dues Amount Amount Periodto Forum where statute paid under which the dispute is pending protest amount relatesCentral Excise Matters relating to 2.42 - 2008-2010 Customs and Central Act1944 levy ofExcise duty on Excise Settlement discounts to customers commission Income-tax Act Mattersrelated to 2.51 - 2013-2014 Commissioner of 1961 disallowance of Income Tax (Appeals)additional depreciation Income-tax Act Matters related to 2.01 - 2014-2015 Commissionerof 1961 disallowance of Income Tax (Appeals) additional depreciation

(viii) The Company has no loans or borrowings payable to a financial institution or abank or government and no dues payable to debenture-holders during the year. Accordinglythe provisions of clause 3(viii) of the Order are not applicable.

(ix) The Company did not raise moneys by way of initial public offer or further publicoffer (including debt instruments) and did not have any term loans outstanding during theyear. Accordingly the provisions of clause 3(ix) of the Order are not applicable.

(x) No fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the period covered by our audit.

(xi) Managerial remuneration has been paid and provided by the Company in accordancewith the requisite approvals mandated by the provisions of Section 197 of the Act readwith Schedule V to the Act.

(xii) In our opinion the Company is not a Nidhi Company. Accordingly provisions ofclause 3(xii) of the Order are not applicable.

(xiii) In our opinion all transactions with the related parties are in compliance withSections 177 and 188 of Act where applicable and the requisite details have beendisclosed in the financial statements etc. as required by the applicable Ind AS.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures.

(xv) In our opinion the Company has not entered into any non-cash transactions withthe directors or persons connected with them covered under Section 192 of the Act.

(xvi) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

For Walker Chandiok & Co LLP

Chartered Accountants

Firm's Registration No.: 001076N/N500013

Sd/-
per Neeraj Goel
Place: New Delhi Partner
Date: 27 May 2017 Membership No.: 99514

Annexure B to the Independent Auditor's Report

Independent Auditor's Report as required by the Comptroller and Auditor General ofIndia vide directions dated 20 December 2016 issued under Section 143(5) of the CompaniesAct 2013 (the 'Act')

Based on the audit procedures performed and taking into consideration the informationexplanations and written representations given to us by the management in the normalcourse of audit we report to the best of our knowledge and belief that:

Directions Response
Whether the Company has clear title/lease deeds for freehold and leasehold respectively? If not please state the area of freehold and leasehold land for which title/ lease deeds are not available? The title deeds of all the immovable properties (which are included under the head 'Property plant and equipment') are held in the name of the Company except for certain immovable properties taken on lease for which in one case the Company has an allotment letter and for another it has entered into a memorandum of understanding with the lessor but has however not entered into lease deeds as enumerated in Table A below.
Whether there are any cases of waiver/write off of debts/ loans/interest etc. If yes the reasons there for and amount involved. There are no cases of write off or waiver of loans and interest. However an amount of Rs. 0.45 crore recoverable from a debtor has been written off during the year. Based on circumstances prevailing with the said debtor the management believed the amount is unlikely to be recovered and with necessary approval of the Board of Directors decided to write off the balance in its books of accounts.
Whether proper records are maintained for inventories lying with third parties & assets received as gift/grants(s) from the Govt. or other authorities. The Company is maintaining proper records for inventories lying with third parties.

Table A

Nature of property Whether leasehold /freehold Gross block as on 31 March 2017 (Rs. in crores) Net block as on 31 March 2017 (Rs. in crores) Area (in square meters)
Land Leasehold 9.83 9.83 1755.34
Land Leasehold 7.15 7.15 2674.83

For Walker Chandiok & Co LLP

Chartered Accountants

Firm's Registration No.: 001076N/N500013

Sd/-

Per Neeraj Goel

Partner

Membership No.: 99514

Place: New Delhi

Date: 27 May 2017

Annexure C to the Independent Auditor's Report

Independent Auditor's Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ('the Act')

1. In conjunction with our audit of the financial statements of Indraprastha GasLimited ('the Company') as of and for the year ended 31 March 2017 we have audited theinternal financial controls over financial reporting (IFCoFR) of the Company as of thatdate.

Management's Responsibility for Internal Financial Controls

2. The Company's Board of Directors is 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 ('Guidance Note') issued by the Institute of Chartered Accountants of India('ICAI'). These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of the Company's business including adherence to Company'spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditors' Responsibility

3. Our responsibility is to express an opinion on the Company's IFCoFR based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theICAI and deemed to be prescribed under section 143(10) of the Act to the extentapplicable to an audit of IFCoFR and the Guidance Note issued by ICAI. Those Standardsand the Guidance Note require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether adequate IFCoFR wereestablished and maintained and if such controls operated effectively in all materialrespects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the IFCoFR and their operating effectiveness. Our audit of IFCoFR included obtaining anunderstanding of IFCoFR assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's IFCoFR.

Meaning of Internal Financial Controls over Financial Reporting

6. A Company's IFCoFR is a process designed to provide reasonable assurance regardingthe reliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A Company'sIFCoFR 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 authorisations 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

7. Because of the inherent limitations of IFCoFR including the possibility ofcollusion or improper management override of controls material misstatements due to erroror fraud may occur and not be detected. Also projections of any evaluation of the IFCoFRto future periods are subject to the risk that IFCoFR may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.

Opinion

8. In our opinion the Company has in all material respects adequate internalfinancial controls over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31 March 2017 based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note issued by ICAI.

For Walker Chandiok & Co LLP

Chartered Accountants

Firm's Registration No.: 001076N/N500013

Sd/-

Per Neeraj Goel

Partner

Membership No.: 99514

Place: New Delhi

Date: 27 May 2017