| We have audited the accompanying standalone financial statements of
NATIONAL OXYGEN LIMITED as at 31st March 2015, which comprise the
Balance Sheet as at 31st March 2015 and the Statement of Profit and
Loss, the Cash Flow Statement for the year ended on that date, and a
summary of significant accounting policies and other explanatory
information.
2. Management's Responsibility for the Standalone Financial
Statements:
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
3. Auditor's Responsibility :
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under. We conducted our
audit in accordance with the Standards on Auditing specified under
Section 143(10) of the Act. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement An audit involves performing procedures to
obtain audit evidence about the amounts and the disclosures in the
financial statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal
financial control relevant to the Company's preparation of the
financial statements that give a true and fair view in order to design
audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on whether the Company has in
place an adequate internal financial controls system over financial
reporting and the operating effectiveness of such controls. An audit
also includes evaluating the appropriateness of the accounting policies
used and the reasonableness of the accounting estimates made by the
Company's Directors, as well as evaluating the overall presentation of
the financial statements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our
opinion on the standalone financial statements.
4. Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Companies Act 2013, in the manner
so required and give a true and fair view in conformity with the
accounting principles generally st accepted in India of the state of
affairs of the Company as at 31 March, 2015 , and its Loss and its cash
flows for the year ended on that date.
5. Report on Other Legal and Regulatory Requirements :
As required by the Companies (Auditor's Report) Order ,2015 ('the Order
'),issued by the Central Government of India in terms of sub-section
(11) of section 143 of the Companies Act, 2013 we give in the Annexure
a statement on the matters specified in paragraphs 3 and 4 of the
Order, to the extent applicable.
As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books ;
The Balance Sheet, the Statement of Profit and Loss and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
(b) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(c) There are no observations or comments on financial transactions or
matters which , in our opinion, may have any adverse effect on the
functioning of the Company
(d) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
With respect to the other matters to be included in the Auditor'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 the explanations given to us:
i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note No. 33 to
the financial statements;
The Company has made provision, as required under the applicable law or
accounting standards, for material foreseeable losses, if any, on
long-term contracts including derivative contracts.
There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company
i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its Fixed
Assets.
b) The Fixed Assets of the Company have been physically verified by the
management, wherever possible, at the close of the year as confirmed by
the management. As informed to us, no material discrepancy has come to
notice on such physical verification;
ii) a) The management has conducted Physical verification of
Inventories, wherever possible, at all its locations at reasonable
intervals during the year
b) The procedures of physical verification of stock followed by the
Management are, in our opinion, reasonable and adequate in relation to
the size of the Company and nature of its business ;
c) The company is maintaining proper records of inventory. As far as we
can ascertain and according to the information and the explanations
given to us, the discrepancies noticed between the physical stocks and
book stocks were not material and the same have been properly dealt
with in the books of account.
iii) As per the information and explanations provided to us, the
company has not granted any loans, secured or unsecured, to companies,
firms or other parties listed in the register maintained under section
189 of the Companies Act 2013 and hence the requirements of sub clauses
(a) and (b) of clause (iii) of the Order are not applicable.
iv) On the basis of checks carried out during the course of audit and
as per explanations given to us, in our opinion, there is adequate
internal control system commensurate with the size of the Company and
the nature of its business for the purchase of Inventory and Fixed
Assets and for the sale of goods and services. During the course of our
Audit, no major weakness or continuing failure to correct any major
weakness has been noticed in the internal control system in respect of
these areas;
v) In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits to which the
directives of the Reserve Bank of India and the provisions of Section
73 to 76 or any other relevant provisions of the Companies Act, 2013
and the rules framed there under apply;
vi) The Company has made and maintained proper Cost records pursuant to
the rules made by the Central Government for the maintenance of cost
records under section 148 (1) of the Companies Act, 2013 in respect of
the products manufactured by it, but no detailed examination of such
records have been carried out by us.
vii) a) The company has been generally regular in depositing undisputed
statutory dues including Provident Fund, Employees' State Insurance,
Income-tax, Sales-tax, Wealth Tax, Service Tax, Duty of Customs, Duty
of Excise, Value added tax, cess and other material statutory dues with
the appropriate authorities. Further, according to the information and
explanations given to us and the books and records examined by us,
there was no undisputed amount outstanding as on 31st March 2015 in
respect of the above statutory dues for a period of more than six
months from the date they became payable;
b) According to the records of the company, the dues outstanding (net
of Advances) in respect of Income tax ,Sales Tax, Wealth Tax, Service
Ta x , Duty of Customs, Duty of Excise, Value added st tax, or Cess on
account of any dispute as on 31 March 2015 , are as follows :
Name of the Nature of Dues Amount Period to Forum where
Statute Rs in Lacs which the dispute
amount
relates pending
Central Excise duty
demanded on
the facility 1.06 Sept'2000
to CESTAT,
Excise
Act, charges being
charged Aug'2001 Southern
1944 Bench
Central Departmental
appeal against
the 4.91 Sept'2000
to CESTAT,
Excise
Act, partial
favorable
order passed
by Aug'2001 Southern
1944 Commissioner
(Appeals)
for Excise Bench
duty demanded
on the rental
/ facility
charges
being charged
Central Departmental
appeal against
the 13.11 Aug'2002
to CESTAT,
Excise
Act, favorable
order passed
by june'2004 Southern
1944 Commissioner
(Appeals)
for Excise Bench
duty demanded
on the rental
/ facility
charges being
charged
Central Canvas credit
availed on
Cryogenic 5.23 Mar'2005
to CESTAT,
Excise
Act, Tank being
disputed Nov'2005 Southern
1944 Bench
Central Departmental
appeal
against the 5.71 2000-01 Madras High
Excise
Act, favorable
order passed
by CESTAT
Court
1944 in respect
of 8% duty
demanded on
supply to
ISRO under
Nil rate of
duty while
availing
Canvas Credit
Central Excise duty
demanded on
the 0.20 Sept'2006
to CESTAT,
Excise
Act, Cylinder
Repair
charges Mar'2007 Southern
1944 being charged Bench
Central Excise duty
demanded on
the 1.67 May'2006
to CESTAT,
Excise
Act, Cylinder
Holding /
facility
charges Aug'2006 Southern
1944 being charged Bench
Central Excise duty
demanded on
the 4.09 2002-03
to CESTAT,
Excise
Act, Cylinder
Repair
charges
being 2004-05 Southern
1944 charged Bench
Central Excise duty
demanded on
the 0.81 Nov'2005
to CESTAT,
Excise
Act, Cylinder
Repair
charges
being Aug'2006 Southern
1944 charged Bench
Service
Tax Service Tax
demanded
on the Lease 11.32 2002-03 & CESTAT,
charge income
received 2003-04 Southern
Bench
Service
Tax Service Tax
demanded on
the Lease 6.95 2004-05 & CESTAT,
charge income
received 2005-06 Southern
Bench
Customs
Differential
Customs Duty
on Import of 88.23 1994-95 CESTAT,
Act, 1961 Second hand
Plant
(including
Interest & Southern
Penalty) Bench
c) The amount required to be transferred to investor education and
protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made there under has been so
transferred to such fund within time.
viii) The Company has accumulated losses of Rs.1302.75 Lacs and has
incurred cash loss of Rs.676.97 Lacs in the current financial year and
Rs.374.68 Lacs in the immediately preceding financial year;
ix) Based on our audit procedures, and as per the information and
explanations given to us by the management, though there have been
delays in repayment of dues during the year, as at the year end the
company has not defaulted in repayment of dues to financial
institutions or banks or debenture holders;
x) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from bank
or financial institutions.
xi) The existing term loans as well as the term loans raised during the
year have been utilized for the purpose for which the Term Loan were
raised .
xii) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given to us by the management, we
report that no fraud on or by the company has been noticed or reported
during the course of our audit;
For SINGHI & CO.,
Chartered Accountants
Firm Regn No. 302049E
Sd/-
(SUDESH CHORARIA)
Place: Chennai Partner
Date : 29th May 2015. Membership No. 204936 |