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National Oxygen Ltd.

BSE: 507813 Sector: Industrials
NSE: NOL ISIN Code: INE296D01010
BSE 00:00 | 30 Jul 57.70 1.45
(2.58%)
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59.00

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59.00

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53.45

NSE 05:30 | 01 Jan National Oxygen Ltd
OPEN 59.00
PREVIOUS CLOSE 56.25
VOLUME 1089
52-Week high 63.15
52-Week low 28.50
P/E
Mkt Cap.(Rs cr) 28
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 59.00
CLOSE 56.25
VOLUME 1089
52-Week high 63.15
52-Week low 28.50
P/E
Mkt Cap.(Rs cr) 28
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

National Oxygen Ltd. (NOL) - Auditors Report

Company auditors report

TO THE MEMBERS OF NATIONAL OXYGEN LIMITED Report on the IndianAccounting Standard Financial Statements

Opinion

1. We have audited the accompanying financial statements of NATIONALOXYGEN LIMITED ("the Company") which comprise the Balance Sheet as at March31 2020 the Statement of Profit and Loss (including Other Comprehensive Income) theCash Flow Statement and the Statement of Changes in Equity for the year then ended andnotes to the financial statements including a summary of significant accounting policiesand other explanatory information. In our opinion and to the best of our information andaccording to the explanations given to us the aforesaid 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 Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2020its Loss (including other comprehensive income) its cash flows and the changes in equityfor the year ended on that date.

Basis for Opinion

2. 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 Financial Statements section of our report. We are independent of the Company inaccordance with the "Code of Ethics" issued by the Institute of CharteredAccountants of India together with the ethical requirements that are relevant to our auditof the financial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thefinancial statements.

Key Audit Matters

3. Key audit matters are those matters that in our professionaljudgment were of most significance in our audit of the financial statements for thefinancial year ended March 31 2020. These matters were addressed in the context of ouraudit of the financial statements as a whole and in forming our opinion thereon and wedo not provide a separate opinion on these matters. For each matter below our descriptionof how our audit addressed the matter is provided in that context.

We have determined the matters described below to be the key auditmatters to be communicated in our report. We have fulfilled the responsibilities describedin the Auditor's responsibilities for the audit of the financial statements sectionof our report including in relation to these matters. Accordingly our audit included theperformance of procedures designed to respond to our assessment of the risks of materialmisstatement of the financial statements. The results of our audit procedures includingthe procedures performed to address the matters below provide the basis for our auditopinion on the accompanying financial statements.

S.No. Key Audit Matter Auditor's Response
1 Valuation of trade receivables How our audit addressed the key audit matter:
As disclosed in Note 8 to the financial statements. We obtained an understanding of the Company's credit policy for trade receivables and evaluated the processes for identifying impairment indicators. We have reviewed and tested the ageing of trade receivables. We have reviewed management's assessment on the credit worthiness of selected customers for trade receivables. We further discussed with the key management on the adequacy of the allowance for impairment recorded by the Company and reviewed the supporting documents provided by management in relation to their assessment. We have also reviewed the adequacy and appropriateness of the impairment charge based on the available information.
The Company assesses periodically and at each financial year end the expected credit loss associated with its receivables. When there is expected credit loss impairment the amount and timing of future cash flows are estimated based on historical current and forward-looking loss experience for assets with similar credit risk characteristics. We focused on this area because of its significance and the degree of judgement required to estimate the expected credit loss and determining the carrying amount of trade Receivables .
Our Observation:
Based on our audit procedures performed we found management's assessment of the recoverability of trade receivables to be reasonable and the disclosures to be appropriate.

Information Other than the Financial Statements and Auditor'sReport Thereon

4. The Company's Board of Directors is responsible for the otherinformation. The other information comprises of the Board's Report including itsAnnexures and other report placed by the management before the members. The Annual Reportis expected to be madeavailable to us after the date of this auditor's report.

Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon. In connectionwith our audit of the financial statements our responsibility is to read the otherinformation and in doing so consider whether the other information is materiallyinconsistent with the financial statements or our knowledge obtained in the audit orotherwise appears to be materially misstated. If based on the work we have performed weconclude that there is a material misstatement of this other information we are requiredto report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance forthe Financial Statements

5. 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 financialstatements that give a true and fair view of the financial position financial performance(including other comprehensive income) changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theIndian 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 judgments 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 financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

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 ofccounting 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.

6. As part of an audit in accordance with SAs we exercise professionaljudgment and 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 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 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 and thereasonableness 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 significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

7. We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

Report on Other Legal and Regulatory Requirements

8. As required by the Companies (Auditor's Report) Order 2016issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act (hereinafter referred to as the "Order") we give in "AnnexureA" a statement on the matters specified in paragraphs 3 and 4 of the Order.

9. As required by Section 143(3) of the Act we report that:

a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit;

b) In our opinion proper books of account as required by law have beenkept 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 OtherComprehensive Income) Statement of Changes in Equity and Statement of Cash Flow dealtwith by this Report are in agreement with the books of account;

d) In our opinion the aforesaid financial statements comply with theIndian Accounting Standards specified under Section 133 of the Act read with Companies(Indian Accounting Standards) Rules 2015 as amended;

e) On the basis of the written representations received from thedirectors and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2020 from being appointed as a director in terms of Section164 (2) of the Act;

f) With respect to the adequacy of internal financial controls overfinancial reporting of the company and the operating effectiveness of such controls referto our separate Report in Annexure B to this report.

g) 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.

h) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:

(i). The Company has disclosed the impact of pending litigations on itsfinancial position in its financial statements – Refer Note No. 41(A) to thefinancial statements;

(ii). The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses; and

(iii). There were no amounts which were required to be transferred tothe

Investor Education and Protection Fund by the Company. There has beenno delays in transferring amounts to the Investor Education and Protection Fund bytheCompany.

Chartered Accountants
Firm Regn No. 318086E
(SAJAL GOYAL)
Place: NewDelhi Partner
Date:June 202020 Membership No. 523903
. UDIN: 20523903AAAAAS8864

ANNEXURE - A TO THE INDEPENDENT AUDITOR'S REPORT (Referred to inparagraph 9 of the Independent Auditors' Report of even date to the members ofNATIONAL OXYGEN LIMITED on the financial Statements as of and for the year ended March 312020)

We report that:

i) In respect of its fixed assets:

a) According to information and explanations given to us theCompany has maintained proper Fixed Assets records showing full particulars includingquantitative details and situation of fixed assets.

b) The Fixed Assets of the Company have been physically verified bythe management wherever possible at the close of the year as confirmed by themanagement. As informed to us no material discrepancy has come to notice on such physicalverification;

c) According to the information and explanations given to us and on thebasis of our examination of the records of the company the title deeds of the immovableproperties are held in the name of the company.

ii) As explained to us physical verification has been conducted by themanagement wherever possible at all its locations at reasonable intervals during theyear in respect of inventory of raw materials and finished goods. The discrepanciesnoticed on physical verification of inventories as compared to book records were notmaterial and the same have been properly dealtwith in the books of account.

iii) As per the information and explanations provided to us thecompany has not granted any loans secured or unsecured to companies firms or otherparties listed in the register maintained under Section 189 of the Companies Act 2013 andhence the requirements of sub clauses (a) and (b) of clause (iii) of the Order are notapplicable.

iv) As per the information and explanations provided to us the companyhas complied with the provisions of section 185 and 186 of the Companies Act 2013 inrespect of loans investments guarantees and security provided by the company;

v) In our opinion and according to the information and explanationsgiven to us the company has not accepted any deposits to which the directives of theReserve Bank of India and the provisions of Section 73 to 76 or any other relevantprovisions of the Companies Act 2013 and the rules framed there under apply;

vi) We have broadly reviewed the books of accounts maintained byCompany in respect of product where pursuant to the rule made by the Central Governmentof India the maintenance of cost records has been prescribed under section 148 (1) of theCompanies Act 2013 and are of the opinion that prima facie the prescribed records havebeen made and maintained. We have not however made a detailed examination of the recordswith a view to determine whether they are accurate or complete.

vii) a) The company has been generally regular in depositing undisputedstatutory dues including Provident Fund Employees' State Insurance Income-taxSales-tax Wealth Tax Service Tax Duty of Customs Duty of Excise Value added taxGoods and service tax cess and other material statutory dues with the appropriateauthorities. Further according to the information and explanations given to us and thebooks and records examined by us there was no undisputed amount outstanding as on March312020 in respect of the above statutory dues for a period of more than six months fromthe date they became payable;

b) According to the records of the company the dues outstanding (netof Advances) in respect of Income tax Sales Tax Wealth Tax Service Tax Duty ofCustoms Duty of Excise Value added tax Goods and Service tax or Cess on account of anydispute as on March 312020 are as follows :

Name of the Statute Nature of Dues Amount Rs in Lacs Period to which the amount relates Forum where dispute pending
Central Excise Act 1944 Excise duty demanded on the facility charges being charged 1.06 Sept'2000 to Aug'2001 CESTAT Southern Bench
Central Excise Act 1944 Departmental appeal against the partial favourable order passed by Commissioner (Appeals) for Excise duty demanded on the rental / facility charges being charged 4.91 Sept'2000 to Aug'2001 CESTAT Southern Bench
Central Excise Act 1944 Departmental appeal against the favourable order passed by CESTAT in respect of 8% duty demanded on supply to ISRO under Nil rate of duty while availing Cenvat Credit 5.71 2000-01 Madras High Court
Central Excise Act 1944 Excise duty demanded on the Cylinder Repair charges being charged 0.20 Sept'2006 to Mar'2007 CESTAT Southern Bench
Central Excise Act 1944 Excise duty demanded on the Cylinder Holding / facility charges being charged 1.67 May'2006 to Aug'2006 CESTAT Southern Bench
Service Tax Service Tax demanded on the Lease charge income received 11.32 2002-03 & 2003-04 CESTAT Southern Bench
Service Tax Service Tax demanded on the Lease charge income received 6.69 2004-05 & 2005-06 CESTAT Southern Bench
Customs Act 1961 Differential Customs Duty on Import of Second hand Plant (including Interest & Penalty) 88.24 1994-95 CESTAT Southern Bench
Service Tax Service Tax on GTA claimed by the Deptt. which is contested by the company 3.86 Apr'2012 to Mar'2013 Madras High Court

viii) Based on our audit procedures and as per the information andexplanations given to us by the management the company has not defaulted in repayment ofdues to financial institutions or banks or debenture holders though there have been minordelays in repayment in certain cases.

ix) According to the information and explanations given to us by themanagement the term loans availed by the company have been applied for the purpose forwhich they were raised. Further no money was raised by the company during the year by wayof Initial public offer or further public offer; x) Based upon the audit proceduresperformed for the purpose of reporting the true and fair view of the financial statementsand as per the information and explanations given to us by the management we report thatno fraud on or by the company has been noticed or reported during the course of our audit;

xi) According to the information and explanations given to us by themanagement the managerial remuneration has been paid / provided by the company inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act 2013;

xii) The company is not a Nidhi company hence clause 3 (xii) of theOrder is not applicable to the company;

xiii) According to the information and explanations provided to us andas confirmed by the management the transactions entered into with the related parties arein compliance with section 177 and 188 of Companies Act 2013 where applicable and thedetails have been disclosed in the Financial Statements in accordance with the applicableaccounting standards;

xiv) The company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview;

xv) According to the information and explanations provided to us and asconfirmed by the management the company has not entered into any non-cash transactionswith directors or persons connected with him during the year under review;

xvi) The company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934;

For J K V S & Co.
Chartered Accountants
Firm Regn No. 318086E
(SAJAL GOYAL)
Place: NewDelhi Partner
Date:June 202020 Membership No. 523903
. UDIN: 20523903AAAAAS8864

ANNEXURE -B TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 10(f) of the Independent Auditor'sReport of even date to the members of NATIONAL OXYGEN LIMITED on the financial Statementsas of and for the year ended March 31 2020)

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

1. We have audited the internal financial controls over financialreporting of NATIONAL OXYGEN LIMITED ("the Company") as of March 31 2020 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS

2. 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 Act.

AUDITOR'S RESPONSIBILITY

3. Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting 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 in all material respects.

4. Our audit involves performing procedures to obtain audit evidenceabout the adequacy of the internal financial controls system over financial reporting andtheir operating effectiveness. Our audit of internal financial controls over financialreporting included obtaining an understanding of internal financial controls overfinancial reporting assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgment includingthe assessment of the risks of material misstatement of the financial statements whetherdue to fraud or error.

5. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

6. A Company's internal financial control over financial reporting is aprocess 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 control overfinancial reporting includes those policies and procedures that:

a. Pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of theCompany;

b. provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the Company arebeing made only in accordance with authorizations of management and directors of theCompany; and

c. Provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the Company's assets thatcould have a material effect on the financial statements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIALREPORTING

7. Because of the inherent limitations of internal financial controlsover financial 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 conditionsor that the degree of compliance with the policies or procedures may deteriorate.

OPINION

8. In our opinion the Company has in all material respects anadequate internal financial controls system over financial reporting and such internalfinancial controls over financial reporting were operating effectively as at March312020 based on the internal control over financial reporting criteria established bythe Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India.

For J K V S & Co.
Chartered Accountants
Firm Regn No. 318086E
(SAJAL GOYAL)
Place: NewDelhi Partner
Date:June 202020 Membership No. 523903
. UDIN: 20523903AAAAAS8864