To the Members of Shiv-vani Oil & Gas Exploration Services Limited.
Report on the Financial Statements
We have audited the accompanying financial statements of Shiv-vani Oil & Gas
Exploration Services Limited (the "Company"), which comprise the Balance Sheet
as at 31st March,2015, and the Statement of Profit and Loss, the Cash Flow Statement for
the year then ended, and a summary of significant accounting policies and information,
which we have signed under reference to this report.
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 the financial position, financial performance and cash flows of
the Company in accordance with the accounting principles generally accepted in India,
including the Accounting Standard 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 fraud and other irregularities,
the selection and application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent ; and the 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 give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these standalone financial statements
based on our audit. We have taken into account the provision 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 thereudner.
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
disclosures in the financial statements. The procedures selected depend on the
auditors’ 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 auditors consider internal control relevant to the Company’s preparation and fair
presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting estimates made by
Management, 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 audit opinion on the standalones financial statements.
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 Act in the manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India, of the state of affairs of the
Company as at 31st March ,2015, and its loss and its cash flows for the year ended on
that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies(Auditor’s Report) Order,2015 ("the
order") issued by the Central Government of India in term of Sub-Section(11) of
Section 143 of the Act(hereinafter referred to as the "Order") and on the basis
of such checks of the books and records of the Company as we considered appropriate and
according to the information and explanations given to us, we give in the Annexure a
statement on the matters specified in the paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
(a) We have obtained all the information and explanations which, to the best of our
knowledge and belief, were necessary for the purpose of our audit;
(b) In our opinion, proper books of accounts as required by law have been kept by the
Company so far as appears from our examination of those books;
(c) The Balance Sheet, Statement of Profit and Loss Cash Flow Statement dealt with by
this Report are in agreement with books of account:
(d) In our opinion, the aforesaid standalone financial statement comply with the
Accounting Standards under Section 133 of the Companies Act, 2013 read with Rule 7 of the
Companies (Accounts) Rules, 2014;
(e) On the basis of written representations received from the directors as on 31st
March 2015, and taken on records by the Board of Directors, none of the directors are
disqualified as a director in terms of clause
(g) of sub-section(2) of section 164 of the Act.
(f) With respect to the other matters to be include in the Auditor Report in accordance
with Rule 11 of the Companies (Audit and Auditor’s) 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 Refer Note 31-5(a) to 5(f) to the financial statements.
(ii) There has been no delay in transferring amount required to be transferred to the
Investors Education and Protection Fund to the extent legally allowed to be transferred
Annexure to the Auditor’s Report of Shiv-Vani Oil & Gas Exploration Services
Ltd
The Annexure referred to in our report to the Members of Shiv-vani Oil & Gas
Exploration Services Ltd for the year ended on 31st March,2015. We report that,
1. (i) The Company has maintained proper records of fixed assets showing full
particulars including quantitative details and the situation of its fixed assets .
(ii) A major portion of fixed assets has been physically verified by the management
during the year. In our the frequency of verification of the fixed assets by the
management is reasonable having regards to the size of the Company and the nature of its
assets. The discrepancies noticed have been properly dealt with in the books of
accounts.
2. (i) The management has conducted physical verification of inventory at reasonable
intervals.
(ii) In our opinion and according to the information and explanations given to us, the
procedure for physical verification of inventory followed by the management are
reasonable and adequate in relation to the size of the Company and the nature of its
business.
(iii) In our opinion Company has maintained proper records of inventory and no material
discrepancies were noticed on physical verification.
3. In respect of the loans, secured or unsecured, granted or taken by the Company
to/from Companies, firm or other parties in the register maintained under section 189 of
the Companies Act, 2013.
(i) The Company has given interest free loan to Corporate/ to its subsidiaries. In
respect of the said loans, the maximum amount outstanding at any time during the year is
Rs.3,689,918,331/-(ii) In our opinion and according to the information and explanations
given to us, the terms and conditions of interest free loans are not prima facie
prejudicial to interest of the Company.
(iii) The said interest free loan given to a wholly owned subsidiary of the Company are
repayable on demand and there is no repayment schedule.
(iv) In respect of the loan given by the Company to the corporate, the same is
repayable on demand the questions of overdue amount does not arise.
4. In our opinion and according to the information and explanations given to us, 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 sale of
goods and services . During the course of our audit, no continuing major weakness has been
noticed in the internal control systems;
5. The Company has not accepted any deposits from the public.
6. In our opinion and according to the information and explanations given to us the
Central Government has not prescribed maintenance of cost records under section 148 (1) of
the Companies Act 2013 in respect of the Company’s products.
7. (a) As per the records of the Company and information and explanations provided to
us, the Company is not regular in depositing the undisputed statutory dues including
Provident Fund, Investor Educaton and Protection fund, Employees State Insurance, Income
Tax, Sales Tax, Wealth Tax, WCT. Tax deduct at sources, Customs Duty, Excise Duty, Cess
and other Statutory dues with appropriate authorities. According to the information and
explanations given to us, no un disputed amounts payable in respect of the aforesaid dues
were outstanding as at March 31,2015 for a period of more than six months from the date of
becoming payable except Tax Deducted at source dues aggregating to
Rs.46,507,048/-(Previous year Rs.64,590,336/-) VAT dues aggregating to
Rs.42,302,658/-(Previous year 45,062,958/-), Work Contract Tax dues aggregating to
Rs.11,727,696/- (Previous Year Rs.10,670,375/-), professional Tax dues aggregating to
Rs.2,481,030/-( Previous Year Rs.1,625,791/-), Dividend Distribution Tax dues aggregating
Rs.7,520,832/-(Previous Year Rs.7,520,832/-) Provident Fund dues aggregating Rs.Nil
(Previous Year Rs.6,710,598/) and Services Tax dues aggregating to
Rs.835,695,272/-(Previous year Rs.1,420,782,067/-) were payable at the year end.
(b) Following are the details of disputed statutory dues that have not paid to the
concerned authorities
| Nature of Statute Pending |
Nature of Dues |
Amount (Rs.) |
Period to which the amount relates |
Forum where dispute is pending |
| Service Tax |
Demand |
479,531,062 |
Upto 2007-2008 |
Service Tax Appellate Tribunal |
| Service Tax |
Demand |
317,919,573 |
2010-2013 |
Service Tax Commissioner |
| Central Excise |
Penal Proceeding |
1,250,000 |
2007-2008 |
High Court |
| Income Tax Act |
Income Tax |
338,567,479 |
2005-06 to 2008-09 |
ITAT, New Delhi |
(c) According to the information and explanation given to us, no amount is required to
be transferred to Investor Education and Protection Fund in accordance with the relevant
provisions of the Act.
8. The Company have accumulated losses of Rs.135,08,70,182/ at the end of the Financial
year .Resulting in the fully erosion of Net-worth of the Company and it has incurred cash
loss during the financialyear amounting Rs.306,98,53,734/-.
9. As per books and records maintained by the Company and according to the information
and explanation given to us, the Company has defaulted in repayment of loans and interest
dues to financial institutions or Bank amounting to Rs.360.58 crores which is reflected
under note-4 "Long term borrowing" - "Secured" - "from
Banks" and under note no 10-‘Other Current Liabilities’ - ‘Current
maturities of long term Debts’ - in the financial statement.
10. According to the information and explanations given to us, the Company has not
given security / guarantee for any loan taken by others from banks & financial
institutions.
11. The Company has not raised any term loans during the year.
12. In our opinion and according to the information and explanations given to us by the
management which have been relied upon by us, no fraud on or by the Company has been
noticed or reported during the year.
|
For Vijay Prakash Gupta & Associates |
|
Chartered Accountants |
|
Firm Reg. No:005570N |
|
Vikas Varshney |
| New Delhi |
Partner |
| June 6, 2015 |
Membership No:510929 |
+91-9892691696
