| 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 other explanatory
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 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 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 statements that 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 on 31st March 2015, from
being appointed 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 statements-
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 opinion, 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 Nature of Dues Amount (Rs.)
Pending
Service Tax Demand 479,531,062
Service Tax Demand 317,919,573
Central Excise Penal Proceeding 1,250,000
Income Tax Act Income Tax 338,567,479
Nature of Statute Period to which Forum where dispute is
Pending the amount relates Pending
Service Tax Upto 2007-2008 Service Tax Appellate
Tribunal
Service Tax 2010-2013 Service Tax Commissioner
Central Excise 2007-2008 High Court
Income Tax Act 2005-06 to ITAT, New Delhi
2008-09
(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 financial year
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 |