gsl nova · management discussion & analysis report 18 ... members are requested to bring their...
TRANSCRIPT
24TH
ANNUAL REPORT2016-2017
[Formerly Known as Nova Petrochemicals Limited]
Your confidence is our biggest Asset
GSL Nova
Annual Report 2016-17 1
GSL Nova
24th ANNUAL REPORT
Board of Directors : Shyam Gupta Chairman Sunil Kumar Gupta Managing Director Anil Singhal Director Sandeep Goyal Director Meenu Maheshwari Director
ChiefFinancialOfficer : MayankaGupta
Company Secretary : Dhwani Shah
Bankers : StateBankofIndia
RegisteredOffice&Plant : SurveyNo.396/403,MoraiyaVillage, Sarkhej-BavlaHighway, Tal.Sanand,Dist.Ahmedabad–382210. Gujarat,India e-mail:[email protected] Website:www.novapetro.com
Share Transfer Agent : MCS Share Transfer Agent Limited 201,ShatdalComplex,2ndFloor, Opp.BataShowRoom, AshramRoad,Ahmedabad–380009.
Contents Page No.
Notice 02
Directors’ Report 05
ManagementDiscussion&AnalysisReport 18
ReportonCorporateGovernance 19
Auditors’ Report 25
Balance Sheet 30
StatementofProfit&Loss 31
Cash Flow Statement 32
NotestotheFinancialStatements 33
Annual Report 2016-172
GSL Nova
NOTICENoticeisherebygiventhattheTwentyForthAnnualGeneralMeetingoftheMembersofM/S GSL NOVA PETROCHEMICALS LIMITEDwillbeheldonFriday,18thdayofAugust,2017at3.30p.m.attheregisteredofficeoftheCompanyatSurveyNo.396/403,MoraiyaVillage,Sarkhej-BavlaHighway,Tal.Sanand,Dist.Ahmedabad–382210totransactthefollowingbusiness:
ORDINARY BUSINESS: -
1. Toreceive,considerandadopttheBalanceSheetasat31stMarch2017,StatementofProfitandLossAccountfortheyearendedonthatdayandtheReportsoftheDirectors’andAuditors’thereon.
2. ToappointaDirectorinplaceofShriSunilKumarGupta(holdingDIN:00008344),whoretiresbyrotationandbeingeligible,offershimselfforre-appointment.
3. Toappointmentofauditorsandfixtheirremunerationandinthisregardtoconsiderandifthoughtfittopasswithorwithoutmodification,thefollowingresolutionasanOrdinaryResolution:
“RESOLVEDTHAT,pursuanttotheprovisionsofsection139,142andotherapplicableprovisions,ifany,ofthecompaniesAct,2013(theAct)andThecompanies(AuditandAuditors)Rules,2014,(therules),(includinganystatutorymodification(s)orre-enactment(s)thereofforthetimebeinginforce)M/s.SamirM.Shah&Associates,charteredAccountants,Ahmedabad,(FirmRegistrationnumber122377WwiththelnstituteofcharteredAccountantsofIndia),whohaveofferedthemselvesforappointmentandhaveconfirmedtheireligibilitytobeappointedasAuditors,intermsofprovisionsofsectionL41oftheAct,andrule4oftherules,beandareherebyappointedasstatutoryAuditorsofthecompany(inplaceofM/s.J.T.Shah&Co.,charteredAccountants,theretiringauditors)foratermoffiveyearscommencingfromtheconclusionofthismeetinguntiltheconclusionofthe29thAnnualGeneralMeetingofthecompanytobeheldin2022(subjecttoratificationoftheirappointmentbythemembersateveryinterveningannualgeneralmeetingheldafterthisannualgeneralmeeting)onsuchremunerationasmaybeagreeduponbytheAuditcommittee/BoardofDirectorsinconsultationwiththeAuditors.”
“RESOLVEDFURTHERTHAItheBoardofDirectorsofthecompany(includingitscommitteethereof)beandisherebyauthorisedtodoallactsandtakeallsuchstepsasmaybeconsiderednecessary,properorexpedienttogiveeffecttothisresolution.,’
Regd. Office: By order of the Board of Directors,SurveyNo.396/403,MoraiyaVillage,Sarkhej-BavlaHighway,Tal.Sanand,Dist.Ahmedabad–382210Dated:30/05/2017 CompanySecretary
Notes:-
1. AMEMBERENTITLEDTOATTENDANDVOTEATTHEMEETINGISENTITLEDTOAPPOINTAPROXYTOATTENDANDVOTEINSTEADOFSELFANDAPROXYNEEDNOTBEAMEMBEROFTHECOMPANY.
2. THEPROXYFORMDULYSTAMPEDANDEXECUTEDSHOULDREACHTHEREGISTEREDOFFICEOFTHECOMPANYATLEAST48HOURSBEFORETHETIMEFIXEDFORTHECOMMENCEMENTOFTHEMEETING.
3. TheRegisterofMembersandShareTransferBooksoftheCompanyshallremainclosedfrom12thAugust,2017to18th August,2017(bothdaysinclusive).
4. MembersdesiringanyinformationpertainingtoAccountsarerequestedtowritetotheCompanyatleastsevendaysbeforethedateofthemeetinginorderthattheinformationcanbemadeavailableatthemeeting.
5. MembersarerequestedtobringtheircopyoftheAnnualReportatthemeetingandproducetheAttendanceSlipattheEntrancewheretheAnnualGeneralMeetingwillbeheld.
6. Memberswhohold shares in dematerialized formare requested tobring their Client ID andDP IDnumbers for easy identificationofattendanceatthemeeting.
7. TheMinistryofCorporateAffairshastakena“GreenInitiativeintheCorporateGovernance”byallowingpaperlesscompliancesbythecompaniesandhasissuedcircularsstatingthatserviceofnotice/documentsincludingAnnualReportcanbesentbye-mailtoitsmembers.Tosupportthisgreeninitiative,membersholdingsharesindematformarerequestedtoprovidetheire-mailIDtothedepositorythroughtheirconcerneddepositoryparticipantandmembersholdingsharesinphysicalformarerequestedtoprovidee-mailIDtotheCompany’sRTA,M/s.MCSSharetransferAgentLimited,201,ShatdalComplex,2ndFloor,Opp.BataShowRoom,AshramRoadAhmedabad–380009andalsonotifythee-mailaddressasandwhenthereisanychange.
8. MembersholdingsharesinphysicalmodearerequestedtoimmediatelynotifytheCompanyoritsShareTransferAgentaboutanychangeofaddressandtheirbankparticulars.MembersholdingsharesindematerializedformarerequestedtoimmediatelynotifytheirrespectiveDepositoryParticipantsaboutanychangeofaddressandtheirbankparticulars.
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GSL Nova
9. AStatementpursuantofSection102(1)oftheCompaniesAct,2013relatingtotheSpecialBusinesstobetransactedattheMeetingisannexedhereto.
10. Memberswhohavenotregisteredtheire-mailaddressessofararerequestedtoregistertheire-mailaddressforreceivingallcommunicationincludingAnnualReport,Notices,Circulars,etc.fromtheCompanyelectronically.
11. Processandmannerformembersoptingfore-votingareasunder:
IncompliancewithprovisionofRegulation44ofSEBI(LODR)Regulations,2015,Section108oftheCompaniesAct,2013readwithRule20oftheCompanies(ManagementandAdministration)Rules,2014theCompanyispleasedtoprovidee-votingfacilitytoalltheshareholdersoftheCompany.ThefacilityofcastingthevotesbythemembersusinganelectronicvotingsystemfromaplaceotherthanvenueoftheAGM(remotee-voting)willbeprovidedbyNationalSecuritiesDepositoryLimited(NSDL).
I. Theinstructionsfore-votingareasunder:
(i) Openyourwebbrowserduringthevotingperiodandnavigatetohttps://www.evoting.nsld.com/
(ii) Enterthelogincredentials(i.e.,user-id&Password)mentionedontheAnnualReport.Yourfolio/DPClientIDwillbeyourUser-ID.
User-ID ForMembersholdingsharesinDematForm:-ForNSDL:-8CharactersDPIDfollowedby8DigitsClientIDForCDSL:-16digitsbeneficiaryIDForMembersholdingsharesinPhysicalForm:-Eventno.followedbyFolioNumberregisteredwiththeCompany
Password ExistingPassword
(iii) Afterenteringthesedetailsappropriately,clickon“LOGIN”.
(iv) MembersholdingsharesinDemat/PhysicalformwillnowreachPasswordChangemenuwhereintheyarerequiredtomandatorilychangetheirloginpasswordinthenewpasswordfield.Changethepassword/PINwithnewpasswordofyourchoicewithminimum8digits/charactersorcombinationthereof.Notenewpassword.Itisstronglyrecommendednottoshareyourpasswordwithanyotherpersonandtakeutmostcaretokeepyourpasswordconfidential.
(v) Youneedtologinagainwiththenewcredentials.
(vi) Onsuccessfullogin,systemwillprompttoselectthe‘Event’i.e.,’CompanyName’
(vii) If youareholding shares inDemat Formandhad logged in tohttps://evoting.nsdl.comand casted your voteearlier for anycompany,thenyourexistingloginidandpasswordaretobeused.
(viii)Onthevotingpage,youwillseeResolutionDescriptionandagainstthesametheoption‘FOR/AGAINST/ABSTAIN’forvoting.Enterthenumberofshares(whichrepresentsnumberofvotes)under‘FOR/AGAINST/ABSTAIN’oralternativelyyoumaypartiallyenteranynumber‘FOR’andpartiallyin‘AGAINST’,butthetotalnumberin‘FOR/AGAINST’takentogethershouldnotexceedyourtotalshareholding.Iftheshareholderdonotwantstocast,select‘ABSTAIN’.
(ix) Afterselectingtheresolutionyouhavedecidedtovoteon,clickon“SUBMIT”.Aconfirmationboxwillbedisplayed.Ifyouwishtoconfirmyourvote,clickon“OK”,elsetochangeyourvote,clickon“CANCEL”andaccordinglymodifyyourvote.
(x) Onceyou‘CONFIRM’yourvoteontheresolution,youwillnotbeallowedtomodifyyourvote.
(xi) Institutionalshareholders(i.e.otherthanindividuals,HUF,NRIetc.)arerequiredtosendscannedcopy(PDF/JPGFormat)oftherelevantBoardResolution/Authorityletteretc.togetherwithattestedspecimensignatureofthedulyauthorizedsignatory(ies)whoareauthorizedtovote,[email protected],[email protected]@nsdl.co.in.ThefilescannedimageoftheBoardResolutionshouldbeinthenamingformat“CorporateName_Eventno.”
II. In case of Shareholders’ receiving Physical copy :
(i) Initialpasswordisprovidedasbelow/atthelastpageofAnnualReturn:
EVEN (E Voting Event Number) USER ID PASSWORD/PIN
(ii) PleasefollowallstepsfromSl.No.(ii)toSl.No.(xii)of(a)above,tocastvote.
III. General Information
(a) In caseof anyqueries, youmay refer the FrequentlyAskedQuestions (FAQs) for Shareholders ande-votingusermanual forShareholdersavailableattheDownloadssectionofwww.evoting.nsld.com
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(b) IfyouarealreadyregisteredwithNSDLfore-votingthenyoucanuseyourexistinguserIDandpassword/PINforcastingyourvote.
(c) Youcanalsoupdateyourmobilenumberande-mailidintheuserprofiledetailsofthefoliowhichmaybeusedforsendingfuturecommunication(s).
(e) ThevotingrightsofshareholdersshallbeinproportiontotheirsharesofthepaidupequitysharecapitaloftheCompanyasonthecut-offdate(recorddate)of30thMay,2017.
(f) E-Votingrightcannotbeexercisedbyaproxy.
(g) TheVotingperiodbeginsonAugust14,2017(10.00a.m.IST)andendsonAugust17,2017(5.00p.m.IST).DuringthisperiodshareholdersoftheCompany,holdingshareseitherinphysicalformorindematerializedform,asonthecut-offdateof30thMay,2017maycasttheirvoteelectronically.Thee-votingmoduleshallbedisabledbyNSDLforvotingthereafter.
(h) M/sBuntyHudda&Associates,CompanySecretaryhasbeenappointedasScrutinizerforscrutinizingthee-votingprocedureinafairandtransparentmanner.
(i) TheScrutinizershall,withinaperiodnotexceedingthree(3)workingdaysfromtheconclusionofthee-votingperiod,unblockthevotesinthepresenceofatleasttwo(2)witnessesnotintheemploymentoftheCompanyandmakeaScrutinizer’sReportofthevotescastinfavoroforagainst,ifany,forthwithtotheChairmanoftheCompany.
(j) The result of the e-votingwill be declared on or after the date of theAGM i.e. 18th August, 2017. Such resultswill also beforwardedtotheStockExchangewheretheCompany’ssharesarelisted.
12. PursuanttoClause49oftheListingAgreement,thedetailsoftheDirectorsretiringbyrotationandeligibleforreappointmentarefurnishedbelow:
ShriSunilKumarGuptawasappointedasanAdditionalDirectoroftheCompanyon30-09-1996andthereafterconfirmedasaDirectorliabletoretirebyrotationw.e.f.29thSeptember,1997in4thAnnualGeneralMeeting.HeisappointedasaManagingDirectorw.e.f.28th May,2017foraperiodof5yearsintheCompanyonthetermsandconditionsasmentionedintheagreement.Atpresentheisdrawingminimumremuneration.inaccordancewiththeprovisionsofsection197readwithScheduleXIII&otherapplicableprovisionsifanyundertheCompaniesAct,2013bytheBoardandsubjecttotheapprovalofthemembersinGeneralMeeting.
HeisaCommerceGraduatehaving24yearsofbusinessexperienceinTrade&Industry.
ShriShyamGupta,theChairmanoftheCompanyisrelatedtohim.Ms.MayankaGuptaChiefFinancialOfficeroftheCompanyisalsorelatedtohim.
Mr.SunilKumarGuptaisaDirectorontheBoardofthefollowingCompanies:
a) SuperNovaEximPvt.Ltd.
b) GuptaEducationFoundationInstitution
c) GuptaTexPrintsPrivateLimited
13. PursuanttotheprovisionsofSection124oftheCompaniesAct,2013,dividendwhichremainunpaidandunclaimedforaperiodof7yearswillbetransferredbytheCompanytotheInvestorEducationandProtectionFund(IEPF)establishedbytheCentralGovernmentpursuanttoSection125oftheCompaniesAct,2013
ShareholdersarerequestedtonotethatnoclaimsshalllieagainsttheCompanyorthesaidFundinrespectofanyamountswhichweretransferredtotheFundwhichareunclaimedandunpaidforaperiodofsevenyearsfromthedatesthattheyfirstbecamedueforpaymentandnopaymentshallbemadeinrespectofanysuchclaims.
Regd. Office: By order of the Board of Directors,SurveyNo.396/403,MoraiyaVillage,Sarkhej-BavlaHighway,Tal.Sanand,Dist.Ahmedabad–382210Gujarat,IndiaDated:30/05/2017 CompanySecretary
Annual Report 2016-17 5
GSL Nova
DIRECTORS’ REPORTTo,TheMembers,YourDirectorshavepleasureinpresentingtheir24rdAnnualReportonthebusinessandoperationsoftheCompanyandtheaccountsfortheFinancialYearendedMarch31,2017.
1. Financial highlights/Performance of the Company (Standalone)
(Rs.inLacs)
Particulars For the year ended 31.03.2017
For the year ended31.03.2016
TotalRevenue 1634.50 1188.31
TotalExpense 2159.65 1777.89
Profit/(Loss)beforeExtraordinaryItems (525.16) 237.85
Less:CurrentTax NILL NILL
Add:MATCreditofCurrentYear NILL NILL
Add:MATCreditofEarlierYear NILL NILL
Add:EarlierYearsTax&DeferredTax NILL NILL
Profit/(Loss)fortheYear (525.16) 237.85
2. Dividend
DuetoheavyLossincurredinthecurrentyearbytheCompany,yourdirectorsregrettheirinabilitytorecommendanydividendontheEquityShareCapital.
3. Reserves
Inviewofthelossincurredinthecurrentyear,yourBoardofDirectorsdonotappropriateanyamounttobetransferredtoGeneralReservesduringtheyearunderreview.
4. Insurance
TheCompanyhasadequatelycoveredallassetsagainstallrisks.
5. Corporate Social Responsibility
DuetoLossincurredbytheCompanyincurrentyear,yourdirectorsregrettheirinabilitytorecommendanyamountforCorporateSocialResponsibility.
6. Brief description of the Company’s working during the year/State of Company’s affair
Duringtheyearunderreview,yourCompanyrecordedtotalincomeofRs.16.35CroreagainstRs.11.88Croresinthepreviousyear.ThenetlossduringtheyearunderreviewwasplacedasRs.5.25CroreascomparedtoprofitofRs.2.38Croreinthepreviousyear.
7. Statement for Improvement/Depressed Results:
Themanagement’sdiscussionandanalysisreport,asrequiredundercorporategovernance,formingpartofthisreport,isareflectionofthecurrentstateofbusiness.Italsodealswiththeopportunitiesandthreatsfacedbyyourcompany.
As,honorablemembersawarethatmemberhadgiventheirconsenttocarryonthebusinessofrealestatetosale,transferand/ordisposeoffcompany’salloranyundertakingand/orpropertiesincludingtheplantandmachinery(S),Utilities,OtherrelatedEquipments,itssparepartsandtheLand&Buildingfulland/orpartialasboardmaydecide.
8. Details in respect of adequacy of internal financial controls with reference to the Financial Statements.
Review theadequacyandeffectivenessof theCompany’s systemand internal controls.Reviewanddiscusswith theManagement theCompany’smajorfinancialriskexposuresandstepstakenbytheManagementtomonitorandcontrolsuchexposure.
9. Details of Subsidiary/Joint Ventures/Associate Companies
YourCompanydonothaveanySubsidiaryorJointVentureorAssociateCompany.
10. Deposits
Duringtheyear,CompanyhasnotacceptedanydepositswithinthemeaningofSection73oftheCompaniesAct,2013andtheCompanies(AcceptanceofDeposits)Rules,2014.
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11. Statutory Auditors
M/s.J.T.Shah&Co.,CharteredAccountantsofAhmedabad(FirmRegistrationNo.109616W),CharteredAccountants,whoarethestatutoryauditorsoftheCompany,holdofficetilltheconclusionoftheAGMandarenoteligibleforre-appointment.Pursuanttotheprovisionsofsection139oftheCompaniesAct,2013andtheRulesframedthereunder, it isproposedtoappointM/s.SamirM.Shah&Associates,CharteredAccountant,Ahmedabad(FirmRegistrationnumber122377WasstatutoryauditorsoftheCompanyfromtheconclusionofthethisAGMtilltheconclusionofthe29thAGMtobeheldintheyear2022.(subjecttoratificationoftheirappointmentbythemembersateveryinterveningannualgeneralmeetingheldafterthisannualgeneralmeeting)onsuchremunerationasmaybeagreeduponbytheAuditcommittee/BoardofDirectorsinconsultationwiththeAuditors.”
12. Explanation to the qualification in Auditors’ Report
TheDirectorssubmittheirexplanationtothequalificationsmadebytheAuditorsintheirreportfortheyear2016-17.TherelevantParanos.of the report and reply are as under :
4(i) Account has beenprepared as going concernbasis since companyhas startednewactivity of landdevelopment as approvedbymembersofthecompany.
7(b) ThedelayinthepaymentofWealthtaxofRs.5lacswasduetodemergersinceitwasbasedonCombinedwealthofcompanypriortodemerger.NowafterthedemergerthecompanyshallfilerevisedwealthtaxreturninconsultationwithAuditorsandpaywealthtaxaccordingly.Furtherthereisdelayindepositingunpaid/unclaimeddividendintoInvestorEducationandProtectionfundofRs,2.85lacsduetofreezingofunpaiddividendbankaccountbygovernmentauthorities.ThereisalsodelayinpaymentofTaxdeductedatsourcesinceitpertainstothepriorperiodsofDemergerandprofessionalTaxRs.96,030.TheCompanyisarrangingtomakethepaymentofthesame.
8. Theaccumulatedlossesaremorethan50%ofnetworthoftheCompany.TheCompanyshalltakeappropriateactionsinconsultationwiththeexperts.
9. Therehasbeendelay inrepaymentofprincipal toFinancial Institution(JMFinancialAssetReconstructionCompanyPvt.Ltd.)andinterestduetodelayinsaleofMachinery.ThesaidFinancialInstitutionhasrestructuredtheloan.
13. Significant and material orders passed by the regulators or courts
Members’attentionisdrawntothestatementoncontingentliabilities,commitmentsinthenotesformingpartoftheFinancialstatement.
14. Particulars of Employee
TherearenoemployeesemployedbytheCompanythroughoutthefinancialyearorforapartofthefinancialyearwhoweredrawingremunerationasperthelimitprovidedinsection217(2A)oftheCompaniesAct,2013andthereforetherearenodetailsrequiredtobegiveninthereport.
15. Share Capital
ThepaidupcapitaloftheCompanyisRs.13,50,00,000/-
YourCompanyhasnotissueanykindofShareduringthefinancialYearendingon31stMarch,2017.
16. Extract of the annual return
TheextractoftheannualreturninFormNo.MGT–9shallformpartoftheBoard’sreport
17. Conservation of energy, technology absorption and foreign exchange earnings and outgo
AsCompany’sManufacturingactivityissuspendedsothedetailsrequiredundertheprovisionsofthesection134(3)(m)oftheCompaniesAct,2013regardingconservationofEnergy,TechnologyAbsorption,ForeignExchangeEarningsisnotapplicabletothecompany.
18. Directors:
A) Changes in Directors and Key Managerial Personnel
RETIREMENT BY ROTATION
In accordance with the provisions of Section 152(6)and Articles of Association of the Company, Shree Sunil Kumar Gupta (DIN:00008344)will retirebyrotationat theensuingAnnualGeneralMeetingof theCompanyandbeingeligible,offershimself for re-appointment.TheBoardrecommendshisre-appointment.
CESSATION:
NoDirectorhasresignfromtheDirectorshipoftheCompany.
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GSL Nova
B) Declaration by an Independent Director(s) and re-appointment, if any
AdeclarationbyanIndependentDirectorsthattheymeetthecriteriaofindependenceasprovidedinsub-section(7)ofSection149oftheCompaniesAct,2013hasbeenreceivedandtakenonnote.
C) Formal Annual Evaluation
The Nomination and Remuneration Committee of the Board has formulated a Performance Evaluation Framework, under whichtheCommitteehasidentifiedthecriteriauponwhichtheCommitteehasidentifiedthecriteriauponwhicheveryDirectorshallbeevaluated.ThePolicyalsoprovidesthemannerinwhichtheDirectors,asacollectiveunitintheformofBoardCommitteesandtheBoardfunctionandperform.
19. Details of establishment of vigil mechanism for directors and employees
TheCompanypromotesethicalbehaviorinallitsbusinessactivitiesandhasputinimplementationofamechanismwhereintheEmployeesarefreetoreport illegalorunethicalbehavior,actualorsuspectedfraudorviolationoftheCompany’sCodesofConductorCorporateGovernancePoliciesoranyimproperactivitytotheChairmanoftheAuditCommitteeoftheCompanyorChairmanoftheCompanyortheComplianceOfficer.TheWhistleBlowerPolicyhasbeenappropriatelycommunicatedwithintheCompany.
UndertheWhistleBlowerPolicy,theconfidentialityofthosereportingviolation(s)isprotectedandtheyarenotsubjecttoanydiscriminatorypractices.NopersonnelhavebeendeniedaccesstotheAuditCommittee.
20. Particulars of loans, guarantees or investments under section 186
Thecompanyhasnotgivenanyloansorguaranteescoveredundertheprovisionsofsection186oftheCompaniesAct,2013.
Thedetailsoftheinvestmentsmadebycompanyisgiveninthenotestothefinancialstatements.
21. Particulars of contracts or arrangements with related parties:
TheparticularsofeverycontractorarrangementsenteredintobytheCompanywithrelatedpartiesreferredtoinsub-section(1)ofsection188oftheCompaniesAct,2013includingcertainarmslengthtransactionsunderthirdprovisotheretoshallbedisclosedinFormNo.AOC-2.HoweveryourcompanyhasnotenteredinanytransactionattractingprovisionofSection188ofCompaniesAct,2013.HenceAOC-2isnotrequiredtobeattached.
22. Managerial Remuneration:
YourcompanyhaspaidRs.6.00lacsasremunerationtotheManagingDirectorShriSunilKumarGuptaoftheCompany.
YourCompanyhavenotanyemployee,whowasinreceiptofremunerationinexcessoflimitsspecifiedintheCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014.
23. Secretarial Audit
ASecretarialAuditReportgivenbyBuntyHuddaandAssociates,acompanysecretaryinpracticeshallbeannexedwiththereport.
TheBoardofDirectorsshallprovideexplanationsorcommentsoneveryqualification,reservationoradverseremarkordisclaimermadebythecompanysecretaryinpracticeinthesecretarialauditreport.
The Secretarial Audit Report given byM/s. BuntyHudda and associates., Practicing Company Secretary (C. P. No.: 11560) is enclosedherewiththeBoard’sReport.
24. Corporate Governance Certificate
TheCompliancecertificatefromtheauditorsregardingcomplianceofconditionsofcorporategovernanceasstipulatedinClause49oftheListingagreementshallbeannexedwiththereport.
Pursuant to theClause49of theListingAgreementwithStockExchanges,a separatesectionentitled ‘CorporateGovernance’and theCertificatefromtheAuditorsoftheCompanyconfirmingCompliancewiththeconditionsoftheCorporateGovernancehasbeenincludedinthisAnnualReport.
25. Code of Conduct
TheBoardhaslaiddownaCodeofConductforBoardMembersandforSeniorManagementandEmployeesoftheCompany(“Code”).AlltheBoardMembersandSeniorManagementPersonnelhaveaffirmedcompliancewiththeseCodes.AdeclarationsignedbytheManagingDirectortothiseffectisenclosedattheendofthisReport.
TheBoardhasalsolaiddownaCodeofConductforIndependentDirectorspursuanttosection149(8)andScheduleIVtotheCompaniesAct,2013viatermsandconditionsforappointmentofIndependentDirectors,whichisaguidetoprofessionalconductforIndependentDirectorsandisuploadedonthewebsiteoftheCompany.
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26. Directors’ Responsibility Statement
TheDirectors’ResponsibilityStatementreferredtoinclause(c)ofsub-section(3)ofSection134oftheCompaniesAct,2013,shallstatethat—
(a) in thepreparationof theannualaccounts, theapplicableaccountingstandardshadbeen followedalongwithproperexplanationrelatingtomaterialdepartures;
(b) the directors had selected such accounting policies and applied them consistently andmade judgments and estimates that arereasonableandprudentsoastogiveatrueandfairviewofthestateofaffairsofthecompanyattheendofthefinancialyeari.e.at31stMarch,2015andoftheprofitandlossofthecompanyforthatperiod;
(c) the directors had taken proper and sufficient care for themaintenance of adequate accounting records in accordance with theprovisionsofthisActforsafeguardingtheassetsofthecompanyandforpreventinganddetectingfraudandotherirregularities;
(d) thedirectorshadpreparedtheannualaccountsonagoingconcernbasis;and
(e) thedirectors,inthecaseofalistedcompany,hadlaiddowninternalfinancialcontrolstobefollowedbythecompanyandthatsuchinternalfinancialcontrolsareadequateandwereoperatingeffectively.
(f) thedirectorshaddevisedpropersystemstoensurecompliancewiththeprovisionsofallapplicablelawsandthatsuchsystemswereadequateandoperatingeffectively.
27. Disclosure under the Sexual Harassment of Woman at Workplace (prevention, prohibition and Redressal Act, 2013
TheCompanyhasbeenemployingaboutonewomanemployee.TheCompanyhas inplaceanAntiharassmentpolicy in linewith therequirementsof theSexualHarassmentofWomanatWorkplace (Prevention,ProhibitionandRedressal)Act,2013. InternalComplaintCommitteeissetuptoredresscomplaintsreceivedregularly,ismonitoredanddirectlyreporttotheChairman&ManagingDirector.Therewasnocompliantreceivedfromemployeeduringthefinancialyear2016-17andhencenocomplaintisoutstandingason31.03.2017forRedressal.
28. Acknowledgements
YourDirectorsexpresstheirdeepsenseofgratitudetotheBanks,CentralandStateGovernmentsandtheirdepartmentsandthe localauthoritiesfortheircontinuedguidanceandsupport.
Wewouldalsoliketoplaceonrecordoursincereappreciationforthededication,commitmentandhardworkputinbyeverymemberoftheGSLNovaPetrochemicalsLimitedfamily.TheManagementisdeeplygratefulfortheconfidenceandfaiththattheshareholdershavealwaysreposedinthem.
ForandonbehalfoftheBoardofDirectorsGSLNovaPetrochemicalsLimited
Sunil Kumar GuptaManaging Director
(Din:00008344)
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GSL Nova
FORM NO. MGT 9
EXTRACT OF ANNUAL RETURNas on financial year ended on 31.03.2017Pursuant to Section 92 (3) of the Companies Act, 2013 and rule 12(1) of the Company (Management & Administration ) Rules, 2014.
I REGISTRATION & OTHER DETAILS:
i CIN CINNo.-L70101GJ1993PLC020927
ii RegistrationDate 12/23/1993
iii NameoftheCompany GSLNovaPetrochemicalsLimited
iv Category/Sub-categoryoftheCompany LIMITEDBYSHARES
v AddressoftheRegisteredoffice&contactdetails Regd.Office:396,403,MORAIYAVILLAGE,SARKHEJ-BAVLAHIGHWAY,SANAND,Ahmedabad-382210.
vi Whether listed company BSE
vii Name,Address&contactdetailsoftheRegistrar&TransferAgent,ifany.
MCSsharetransferAgentLtd.
II PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY Allthebusinessactivitiescontributing10%ormoreofthetotalturnoverofthecompanyshallbestated
SL No Name & Description of main products/services NIC Code of the Product /service % to total turnover of the company
1 ACTIVITIESOFINVESTMENT 70105 100%
III PARTICULARS OF HOLDING , SUBSIDIARY & ASSOCIATE COMPANIES
Sl No Name & Address of the Company CIN/GLN HOLDING/ SUBSIDIARY/ ASSOCIATE
1 N.A. N.A. N.A.
IV SHAREHOLDING PATTERN (Equity Share capital Break up as % to total Equity)
Category of Shareholders No. of Shares held at the beginning of the year No. of Shares held at the end of the year % change during the year
Demat Physical Total % of Total Shares
Demat Physical Total % of Total Shares
No. of Shares
% of Total Shares
A. Promoters
(1)Indian
a)Individual/HUF 139950 0 139950 0.52 139950 0 139950 0.52 0 0.00
b)CentralGovt.or StateGovt.
0 0 0 0.00 0 0 0 0.00 0 0.00
c)BodiesCorporates 12566800 12566800 46.54 12566800 0 12566800 46.54 0 0.00
d)Bank/FI 0 0 0 0.00 0 0 0 0.00 0 0.00
e)Anyother 2226530 2226530 8.25 2226530 2226530 8.25 0 0.00
SUB TOTAL:(A) (1) 14933280 0 14933280 55.31 14933280 0 14933280 55.31 0 0.00
(2)Foreign
a)NRI-Individuals 0 0 0.00 0 0 0.00 0 0.00
b)OtherIndividuals 0 0 0.00 0 0 0.00 0 0.00
c)BodiesCorp. 0 0 0.00 0 0 0.00 0 0.00
d)Banks/FI 0 0 0.00 0 0 0.00 0 0.00
e)Anyother… 0 0 0.00 0 0 0.00 0 0.00
SUB TOTAL (A) (2) 0 0 0.00 0 0 0.00 0 0.00
Total Shareholding of Promoter (A)= (A)(1)+(A)(2)
14933280 0 14933280 55.31 14933280 0 14933280 55.31 0 0.00
Annual Report 2016-1710
GSL Nova
Category of Shareholders No. of Shares held at the beginning of the year No. of Shares held at the end of the year % change during the year
Demat Physical Total % of Total Shares
Demat Physical Total % of Total Shares
No. of Shares
% of Total Shares
B. PUBLIC SHAREHOLDING
(1)Institutions
a)MutualFunds 0 0 0.00 0.00 0 0.00
b)Banks/FI 600 600 0.00 600 0 600 0.00 0 0.00
C)Cenntralgovt 0 0 0.00 0 0 0.00 0 0.00
d)StateGovt. 0 0 0.00 0 0 0.00 0 0.00
e)VentureCapitalFund 0 0 0.00 0 0 0.00 0 0.00
f)InsuranceCompanies 0 0 0.00 0 0 0.00 0 0.00
g)FIIS 0 0 0.00 0 0 0.00 0 0.00
h)ForeignVenture Capital Funds
0 0 0.00 0 0 0.00 0 0.00
i)Others(specify) 0 0 0.00 0 0 0.00 0 0.00
SUB TOTAL (B)(1): 600 0 600 0.00 600 0 600 0.00 0 0.00
(2)NonInstitutions
a)Bodiescorporates
i)Indian 4894684 3789 4898473 18.14 4833329 3789 4837118 17.92 61355 0.23
ii)Overseas 0 0 0 0.00 0 0 0 0.00 0 0.00
b)Individuals 0.00 0 0 0 0.00 0 0.00
i)Individualshareholdersholding nominal share capital uptoRs.2lakhs
5224107 469750 5693857 21.09 5315906 466150 5782056 21.42 88199 0.33
ii)Individualsshareholdersholding nominal share capital inexcessofRs.1lakhs
584399 0 584399 2.16 735651 0 735651 2.72 151252 0.56
c)Others(specify) 0.00 0.00
HinduundividedFamilies 161561 0 161561 0.60 0 0 0 0.00 161561 -0.60
NonResidentIndividual 370530 351800 722330 2.68 355295 351000 706295 2.62 16035 -0.06
OCB 5000 5000 0.02 5000 0 5000 0.02 0 0.00
Trust 500 0 500 0.00 0 0 0 0.00 500 0.00
SUB TOTAL (B)(2): 11240781 825339 12066120 44.687 11245181 820939 12066120 44.69
Total Public Shareholding (B)= (B)(1)+(B)(2)
11241381 825339 12066720 44.69 11245781 820939 12066720 0.00 0 44.69
C.SharesheldbyCustodianfor GDRs&ADRs
0 0 0 0.00 0 0 0 0.00 0 0.00
Grand Total (A+B+C) 26174661 825339 27000000 99.998 26179061 820939 27000000 0 0 100.00
Annual Report 2016-17 11
GSL Nova
(ii) SHARE HOLDING OF PROMOTERS
Sl No.
Shareholders Name Shareholding at the begginning of the year
Shareholding at the end of the year
% change in share holding
during the year
NO of shares
% of total shares of the
company
% of shares pledged
encumbered to total shares
NO of shares
% of total shares of the
company
% of shares pledged
encumbered to total shares
1 GuptaSilkMillsPvt.Ltd. 5047400 18.69 73.84 5047400 18.69 73.84 0.00
2 ComptelInfosysPvt.Ltd. 3400000 12.59 70.59 3400000 12.59 70.59 0.00
3 PolycoatIndiaPvt.Ltd. 1650000 6.11 0 1650000 6.11 0 0.00
4 ShikhaInvestmentsPvt.Ltd. 1333600 4.94 0 1333600 4.94 0 0.00
5 GuptaSyntheticsLimited 1135800 4.21 28.44 1135800 4.21 28.44 0.00
6 PrakashGupta 468440 1.73 0 468440 1.73 0 0.00
7 Shyamsunder Gupta 381430 1.41 0 381430 1.41 0 0.00
8 SunilkumarNGupta 332400 1.23 0 332400 1.23 0 0.00
SunianadeviSGupta 0.00 0.00 0 0.00
9 Shree Mohan Gupta 252400 0.93 0 252400 0.93 0 0.00
UmadeviGupta 0.00 0.00 0 0.00
10 SunianadeviSGupta 227600 0.84 0 227600 0.84 0 0.00
SunilkumarN.Gupta 0.00 0.00 0 0.00
11 UmadeviM.Gupta 162800 0.60 0 162800 0.60 0 0.00
ShreeMohanN.Gupta 0.00 0.00 0 0.00
12 SavitaGupta 109200 0.40 0 109200 0.40 0 0.00
Shyamsunder Gupta 0.00 0.00 0 0.00
13 UmadeviM.Gupta 106800 0.40 0 106800 0.40 0 0.00
14 NeetaGupta 56000 0.21 0 56000 0.21 0 0.00
PrakashGupta 0.00 0.00 0 0.00
15 GauravPrakashGupta 42000 0.16 0 42000 0.16 0 0.00
16 NikunjSGupta 41600 0.15 0 41600 0.15 0 0.00
17 JatinGupta 39750 0.15 0 39750 0.15 0 0.00
18 ShefaliM.Gupta 38000 0.14 0 38000 0.14 0 0.00
19 ShikhaShyamsunderGupta 30600 0.11 0 30600 0.11 0 0.00
20 KshitijM.Gupta 20200 0.07 0 20200 0.07 0 0.00
21 MallikaS.Gupta 16600 0.06 0 16600 0.06 0 0.00
22 AishaS.Gupta 16600 0.06 0 16600 0.06 0 0.00
23 VinayakS.Gupta 15600 0.06 0 15600 0.06 0 0.00
24 ShreeMohanN.Gupta 8440 0.03 0 8440 0.03 0 0.00
25 SunilkumarN.Gupta 20 0.00 0 20 0.00 0 0.00
Total 14933280 55.31 14933280 55.31
(iii) CHANGE IN PROMOTERS’ SHAREHOLDING ( SPECIFY IF THERE IS NO CHANGE)
NochangeinPromoterShareholdingpatternduringtheyear
(iv) Shareholding Pattern of top ten Shareholders (other than Direcors, Promoters & Holders of GDRs & ADRs)
ASPERANNEXURE-A
Annual Report 2016-1712
GSL Nova
(v) Shareholding of Directors & KMP
Sr. No.
For Each of the Directors & KMP Shareholding at the end of the year
Cumulative Shareholding during the year
No.of shares % of total shares of the
company
No of shares % of total shares of the
company
Sunil Kumar Gupta
Atthebeginningoftheyear 332420 1.23
Date wise increase/decrease in Promoters Share holdingduringtheyearspecifyingthereasonsforincrease/decrease(e.g.allotment/transfer/bonus/sweatequityetc)
At the end of the year 332420 1.23
Shyam Sunder Gupta
Atthebeginningoftheyear 381430 1.41
Date wise increase/decrease in Promoters Share holdingduringtheyearspecifyingthereasonsforincrease/decrease(e.g.allotment/transfer/bonus/sweatequityetc)
At the end of the year 381430 1.41
MayankaSunilKumarGupta
Atthebeginningoftheyear 16600 0.06
Date wise increase/decrease in Promoters Share holdingduringtheyearspecifyingthereasonsforincrease/decrease(e.g.allotment/transfer/bonus/sweatequityetc)
At the end of the year 16600 0.06
V. INDEBTEDNESS Indebtedness of the Company including interest outstanding/accrued but not due for payment
Secured Loans excluding deposits
Unsecured Loans
Deposits Total Indebtedness
Indebtness at the beginning of the financial year
i)PrincipalAmount 475095985 83495700 2162956 560754641
ii)Interestduebutnotpaid 25360781 0 0 25360781
iii)Interestaccruedbutnotdue
Total(i+ii+iii) 500456766 83495700 2162956 586115422
Change in Indebtedness during the financial year
Additions 54756603 82500 54839103
Reduction 143588429 143588429
Net Change -143588429 54756603 82500 -88749326
Indebtedness at the end of the financial year
i)PrincipalAmount 355220997 138252303 2245456 495718756
ii)Interestduebutnotpaid 1647340 1647340
iii)Interestaccruedbutnotdue
Total (i+ii+iii) 356868337 138252303 2245456 497366096
Annual Report 2016-17 13
GSL Nova
VI REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
A. Remuneration to Managing Director, Whole time director and/or Manager:
Sl.No Particulars of Remuneration Total Amount
1 Gross salary Sunil Kumar Gupta
(a)Salaryasperprovisionscontainedinsection17(1)oftheIncomeTax.1961. 600000 600000
(b)Valueofperquisitesu/s17(2)oftheIncometaxAct,1961 Nil
(c)Profitsinlieuofsalaryundersection17(3)oftheIncomeTaxAct,1961 Nil
2 Stockoption Nil
3 SweatEquity Nil
4 Commission Nil
as%ofprofit Nil
others(specify) Nil
5 Others,pleasespecify Nil
Total (A) 600000 600000
Ceiling as per the Act 1200000 1200000
B. Remuneration to other directors:
Sl.No Particulars of Remuneration Name of the Directors
1 IndependentDirectors Meenu Maheshwari
(a)Feeforattendingboardcommitteemeetings 20000
(b)Commission
(c)Others,pleasespecify
Total (1)
2 OtherNonExecutiveDirectors
(a)Feeforattendingboardcommitteemeetings
(b)Commission
(c)Others,pleasespecify.
Total (2) 20000
Total (B)=(1+2) 620000
Total Managerial Remuneration
Overall Cieling as per the Act.
C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD
Sl. No. Particulars of Remuneration Key Managerial Personnel
1 Gross Salary Dhwani Shah CFO
(a)Salaryasperprovisionscontainedinsection17(1)oftheIncomeTaxAct,1961. 136615 Nil
(b)Valueofperquisitesu/s17(2)oftheIncomeTaxAct,1961 Nil Nil
(c)Profitsinlieuofsalaryundersection17(3)oftheIncomeTaxAct,1961 Nil Nil
2 StockOption Nil Nil
3 SweatEquity Nil Nil
4 Commission Nil Nil
as%ofprofit Nil Nil
others,specify Nil Nil
5 Others,pleasespecify Nil Nil
Nil Nil
Total 136615 Nil
Annual Report 2016-1714
GSL Nova
AS PER ANNEXURE - A
SR. NO.
Name No. of Shares at the beginning of
the Year
% OF Holding
Change during the F.Y. No. of the shares at the closing of the
F.Y.
% OF HoldingDate of
Allotment/ Transfer
No. of the Shares
% OF Holding
1 CHIRIPALINDUSTRIESLIMITED 2596000 9.61 N.A. 0 0 2596000 9.61
2 MilleniumInfosoftPvt.Ltd. 840068 3.11 N.A. 0 0 840068 3.11
3 SHANTIEXPORTSPVT.LTD. 399617 1.48 N.A. 0 0.00 399617 1.48
4 QUALITYEXIMPVT.LTD. 211863 0.78 N.A. 0 0.00 211863 0.78
5 VEDPRAKASHDCHIRIPAL 165219 0.61 N.A. 0 0.00 165219 0.61
6 ASHMIFINANCIALCONSULTANCYPVTLTD 165000 0.61 N.A. 0 0 165000 0.61
7 HARIPRAKASHKANODIA 120238 0.45 N.A. 0 0 120238 0.45
8 EDELWEISSCUSTODIALSERVICESLIMITED 0 0.00 N.A. 0 0 106170 0.39
9 SURESHKUMARPALLIYIL 0 0.00 N.A. 0 0 102999 0.38
10 ROSHANLALSARAIWALAGARG 0 0.00 N.A. 0 0.00 74460 0.28
Annual Report 2016-17 15
GSL Nova
Annexure [E]
SECRETARIAL AUDIT REPORTFOR THE FINANCIAL YEAR ENDED MARCH 31, 2016[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]
To,TheMembers,GSL NOVA PETROCHEMICALS LIMITED(PreviouslyknownasNovaPetrochemicalsLimited)396,403,MoraiyaVillage,Sarkhej–BavlaHighway,Sanand,Ahmedabad–382210
IhaveconductedthesecretarialauditofthecomplianceofapplicablestatutoryprovisionsandtheadherencetogoodcorporatepracticesbyGSLNOVAPETROCHEMICALSLIMITED(CIN:L70101GJ1993PLC020927)(hereinaftercalled“theCompany”).SecretarialAuditwasconductedinamannerthatprovidedmeareasonablebasisforevaluatingthecorporateconducts/statutorycompliancesandexpressingmyopinionthereon.
BasedonmyverificationoftheCompany’sbooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbytheCompanyandalsotheinformationprovidedbytheCompany,itsofficers,agentsandauthorizedrepresentativesduringtheconductofsecretarialaudit,Iherebyreportthatinmyopinion,theCompanyhasduringtheauditperiodcoveringthefinancialyearendedMarch31,2017,compliedwiththestatutoryprovisionslistedhereunderandalsothattheCompanyhasproperBoard-processesandcompliance-mechanisminplacetotheextent,inthemannerandsubjecttothereportingmadehereinafter.
Ihaveexaminedthebooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbytheCompanyforthefinancialyearendedonMarch31,2017accordingtotheprovisionsof:
(i) TheCompaniesAct,2013(theAct)andtherulesmadethereunder;
(ii) TheSecuritiesContracts(Regulation)Act,1956(‘SCRA’)andtherulesmadethereunder;
(iii) TheDepositoriesAct,1996andtheRegulationsandbye-lawsframedthereunder;
(iv) ForeignExchangeManagementAct,1999and the rulesand regulationsmade thereunder to theextentofForeignDirect Investment,OverseasDirectInvestmentandExternalCommercialBorrowings;
(v) ThefollowingRegulationsandGuidelinesprescribedundertheSecuritiesandExchangeBoardofIndiaAct,1992(‘SEBIAct’):-
(a) TheSecuritiesandExchangeBoardofIndia(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011;
(b) TheSecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,1992;
(c) TheSecuritiesandExchangeBoardofIndia(IssueofCapitalandDisclosureRequirements)Regulations,2009;
(d) TheSecuritiesandExchangeBoardofIndia(EmployeeStockOptionSchemeandEmployeeStockPurchaseScheme)Guidelines,1999;(NotApplicabletotheCompanyduringtheAuditperiod)
(e) TheSecuritiesandExchangeBoardofIndia(IssueandListingofDebtSecurities)Regulations,2008;(NotApplicabletotheCompanyduringtheAuditperiod)
(f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993; regarding theCompaniesActanddealingwithclient;
(g) TheSecuritiesandExchangeBoardofIndia(DelistingofEquityShares)Regulations,2009;(NotApplicabletotheCompanyduringtheAuditperiod)and
(h) TheSecuritiesandExchangeBoardofIndia(BuybackofSecurities)Regulations,1998(NotApplicabletotheCompanyduringtheAuditperiod);
(i) TheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015(Witheffectfrom1st December,2015)
(vi) EmployeesProvidentFundandMiscellaneousProvisionsAct,1952;EmployeesStateInsuranceAct,1948;EmployeesLiabilityAct,1938;EqualRemunerationAct,1976;MaternityBenefitsAct,1961;MinimumWagesAct,1948;PaymentofBonusAct,1965;PaymentofGratuityAct,1972;PaymentofWagesAct,1936andotherapplicablelabourlaws.
(vii) EnvironmentProtectionAct,1986andotherenvironmentallaws;
(viii)FactoriesAct,1948;
(ix) HazardousWastes(ManagementandHandling)Rules,1989andAmendmentRule,2003
Annual Report 2016-1716
GSL Nova
(x) IndianContractAct,1872;
(xi) IncomeTaxAct,1961andIndirectTaxlaws;
(xii) IndianStampAct,1999;
(xiii)IndustrialDisputeAct,1947;
(xiv)NegotiableInstrumentsAct,1881;
(xv) MotorVehiclesAct,1988;
(xvi)TheMotorTransportWorkersAct,1961
(xvii)TheExplosiveAct,1884
(xviii)ThePetroleumAct,1934
(xix)TheEnvironment(Protection)Act,1986
(xx) TheWater(PreventionandControlofPollution)Act,1974
(xxi)TheAir(PreventionandControlofPollution)Act,1981
Ihavealsoexaminedcompliancewiththeapplicableclausesofthefollowing:
(i) SecretarialStandardsissuedbytheInstituteofCompanySecretariesofIndia.
(ii) TheListingAgreemententeredintobytheCompanywithBSELimitedandNationalStockExchangeofIndiaLimited.
DuringtheperiodunderreviewtheCompanyhasnotcompliedwiththeprovisionsoftheAct,Rules,Regulations,Guidelines,Standards,etc.mentionedbelow:
1) Companyhasnotpaidlistingfeesfortheyear2016-17toStockExchangeswithinprescribedtimeduringtheyearunderreview;:writeit
2) Companyhasnotpaidcustodianfeesfortheyear2016-17toNationalSecuritiesDepositoryLtd(NSDL)andCentralDepositoryServicesLtd.(CDSL)withinprescribedtimeduringtheyearunderreview;
3) AspertheinformationandexplanationgivenbymanagementoftheCompany,withrespecttodepositofamountofunpaidandunclaimeddividendamountwithInvestorEducationandprotectionfund(IEPF),Companycouldnothavedepositedsuchamountintherespectiveyearbecauseofco-erosiveactiontakenbyBankandamounthasbeenfrozenagainstoutstandingloanamount.Hence,Companyhasnotfiledform1INVand5INVwithMinistryofCorporateAffairs;
4) ThereweredefaultsinrepaymentofprincipalamountalongwithinterestamounttowardsBanksandFinancialInstitution;
5) Companyhasnotobtainedomnibusapprovalforrelatedpartiestransactionscarriedoutduringtheyearunderreview;
6) PursuanttoRegulation12(1)oftheSEBI(ProhibitionofInsiderTrading)Regulations,1992,tradingwindowwasnotclosedatthetimeofdeclarationofquarterly,half-yearlyandannuallyfinancialresultsoftheCompany;
I further report that the Board ofDirectors of the Company is duly constitutedwith proper balance of ExecutiveDirectors,Non-ExecutiveDirectorsandIndependentDirectors.TheChangesinthecompositionoftheBoardofDirectorsthattookplaceduringtheperiodunderreviewwerecarriedoutincompliancewiththeprovisionsoftheAct.
AdequatenoticeisgiventoalltheDirectorstoscheduletheBoardMeetings,agendaanddetailednotesonagendaweresentatleastsevendaysinadvance,andasystemexistsforseekingandobtainingfurtherinformationandclarificationsontheagendaitemsbeforethemeetingandformeaningfulparticipationatthemeeting.
Majoritydecisioniscarriedthroughwhilethedissentingmembers’viewsarecapturedandrecordedaspartoftheminutes.
IfurtherreportthatthereareadequatesystemsandprocessesintheCompanycommensuratewiththesizeandoperationsoftheCompanytomonitorandensurecompliancewithapplicablelaws,rules,regulationsandguidelines.
Ifurtherreportthatduringtheauditperiodthecompanyhasnotundertakenanyevent/actionhavingamajorbearingontheCompany’saffairsinpursuanceoftheabovereferredlaws,rules,regulations,guidelines,standards,etc.
Note:ThisReportistobereadwithmyletterofabovedatewhichisannexedasAnnexureAandformsanintegralpartofthisreport.
For Bunty Hudda & AssociatesPracticingCompanySecretaries
Date : May30,2017 (CS Bunty Hudda)Place: Ahmedabad ACS:31507COP:11560
Annual Report 2016-17 17
GSL Nova
ANNEXURE “A” OF SECRETARIAL AUDIT REPORT
To,TheMembers,GSLNOVAPETROCHEMICALSLIMITED396,403,MoraiyaVillage,Sarkhej–BavlaHighway,Sanand,Ahmedabad–382210
MyReportofevendateistobereadalongwiththisletter.
1) MaintenanceofsecretarialrecordistheresponsibilityofthemanagementoftheCompany.Myresponsibilityistoexpressanopiniononthesesecretarialrecordsbasedonmyaudit.
2) Ihavefollowedtheauditpracticesandprocessesaswereappropriatetoobtainreasonableassuranceaboutthecorrectnessofthecontentsofthesecretarialrecords.Theverificationwasdonebasedontherecordsanddocumentsprovided,ontestbasistoensurethatcorrectfactsarereflectedinsecretarialrecords.Ibelievethattheprocessesandpracticesfollowedbymeprovideareasonablebasisformyopinion.
3) IhavenotverifiedthecorrectnessandappropriatenessoffinancialrecordsandbooksofaccountsoftheCompany.
4) Whereverrequired,IhaveobtainedtheManagementrepresentationaboutthecomplianceoflaws,rulesandregulationsandhappeningofeventsetc.
5) Thecomplianceoftheprovisionofcorporateandotherapplicablelaws,rules,regulations,standardsistheresponsibilityofmanagement.Myexaminationwaslimitedtotheverificationofproceduresontestbasis.
6) TheSecretarialAuditreportisneitheranassuranceastothefutureviabilityoftheCompanynortheefficacyoreffectivenesswithwhichthemanagementhasconductedtheaffairsofthecompany.
For Bunty Hudda & AssociatesPracticingCompanySecretaries
Date : May30,2017 (CS Bunty Hudda)Place: Ahmedabad ACS:31507COP:11560
Annual Report 2016-1718
GSL Nova
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
• ECONOMIC REVIEW
Globalgrowthin2014waslowerthaninitiallyexpected,continuingapatternofdisappointingoutturnsoverthepastseveralyears.Atthesametime,demandforoilhasweakenedduetotheslowdowninChinaandthepersistentsluggishnessoftheEurozoneandJapan.
Severalmajor forces are driving the global outlook : Soft commodity prices; persistently low interest rates but increasingly divergentmonetarypoliciesacrossmajoreconomies;andweakworldtrade.Inparticular,thesharpdeclineinoilpricessincemid-2014willsupportglobalactivityandhelpoffsetsomeoftheheadwindstogrowthinoil-importingdevelopingeconomieslikeIndia.However,itwilldampengrowthprospectsforoil-exportingcountries,withsignificantregionalrepercussions.
• Current Status of Business
InviewofthisandforspeedyrealisationofthesalesproceedsfromphaseI,yourcompanyhasdroppedtheplanofsettingupindustrialshedsunderphaseIandnowplannedtodevelopplotsforIndustrial/warehousingpurposesonsaidland.
• OPPORTUNITIES & CHALLENGES
Opportunities
AsIndiaawaitspolicyreformstopickupspeed,yourCompanybelievesthatthedemandforRealEstate-IndustrialplottinginacountrylikeIndiashouldremainmoderateinthemediumtolongterm.
Challenges
Realestatesectoralsofindthefollowingchallenges:
§ Unanticipateddelaysinprojectapprovals
§ Non–Availabilityofaccomplishedandtrainedlabourforce.
§ IncreasecostofManpower
§ RaisingcostofConstruction
§ GrowthinAuxiliaryinfrastructurefacility
§ Overregulatedenvironment
• INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
Thecompanyhasadequatesystemofinternalcontrolprocedurescommensuratewiththesizeofthecompanyandthenatureofitsbusinesstokeepcheckontheactivitiesatall levels.TheCompanyhadalsoappointedafirmofCharteredAccountantsasaninternalauditortofurtherchecktheinternalcontrolsystemandtoreportonanydeficienciestothemanagement.
• HUMAN RESOURCES/INDUSTRIAL RELATIONS:
Yourcompanyhassuccessful inmaintainingthecordialandpeacefulrelationshipwiththeemployeesatall levelandinreciprocationithasreceivedwholeheartedsupportatalllevelsofoperationsfromallemployees.Thecordialandpeacefulrelationshipprevailswithallemployees.
Annual Report 2016-17 19
GSL Nova
REPORT ON CORPORATE GOVERNANCE
1. Company’s philosophy on Corporate Governance
TheCompanyalwaysbelievesinenhancementofShareholdersvaluebyconsistentlyprovidingmaximumbenefitstoitsshareholders.InpursuitofthispolicytheCompanygiveshighestimportancetopracticeofgoodcorporategovernance.TheCompanyhaswellqualifiedandexperiencedBoardMembers.BesidestheCompanygivesdueweightagetodisclosurerequirementsandtransparencyandprovidingefficientservicetoitsshareholders.
2. Board of Directors
TheBoardofDirectors comprisesof anoptimumcombinationofExecutive&Non-ExecutiveDirectors.Outof total FiveDirectors, theBoardconsistsofoneExecutiveDirectorasManagingDirector,oneNon-ExecutiveNon IndependentDirectorandThreeNon-ExecutiveIndependentDirectors.
Duringthefinancialyear2016-2017,theBoardmetFourtimesonthefollowingdates30-05-2016,13-08-2016,14-11-2016and14-02-2017.
DetailsofDirectors,AttendanceofDirectorsat theBoardMeetings, aswell as inanAnnualGeneralMeetingheldon30.09.2016andnumberofmembershipsheldbyDirectorsintheBoard/CommitteeofotherCompaniesareasunder:
Sr.No. Name of Director
Designation/
CategoryAttendance Particulars
Number of other Directorship and Committee Member/Chairmanship
in other Public Companies
Board Meetings
AGM held on
30.09.16Directorship
Committee Membership
CommitteeChairmanship
1 Shri Shyam Gupta NED/NID 4 No 2 -- --
2 Shri Sunil Kumar Gupta MD 4 Yes 1 -- --
3 Shri Sandeep Goyal IND/NE 4 Yes 1 -- --
4 Shri Anil Singhal IND/NE 4 Yes 2 2 1
5 Mrs.MeenuMaheshwari IND/NE 4 No 1 - -
CH-Chairman,MD-ManagingDirector,WTD–WholetimeDirector,ED–ExecutiveDirector,I/NE-Independent/Non-ExecutiveDirectorNED/NID-Non-ExecutiveDirector/NonIndependent.
3. Details of Remuneration paid to the Directors during the Financial Year ended as on 31-03-2017 (Rs.InLacs)
Sr. No. Name of Director Category Salary Total
1 Shri Sunil Kumar Gupta MD 0.50 6Lacs
AnysittingfeesnotpaidtoManagingDirector.
4. Audit Committee
Duringtheyearunderreview,theAuditCommitteewasconstitutedinaccordancewiththeprovisionsoftheCompaniesAct,2013andlistingagreemententeredintobytheCompanywiththeStockExchanges.TheconstitutedCommitteeisasfollows:
Name of Director Designation Category
Shri Sandeep Goyal Member Independent&NonExecutive
Shri Sunil Kumar Gupta Member NonIndependent&Executive
Shri Anil Singhal Member Independent&NonExecutive
TheconstitutionofAuditCommitteemeetswiththerequirementsofCorporateGovernanceguidelinesaswellastheprovisionsofSection177oftheCompaniesAct,2013andClause49oftheListingAgreement.TermsofreferenceofappointmentofAuditCommitteeareasunder,
TheAuditCommitteeshallhavethefollowingpowers:
Ø ItshallhaveauthoritytoinvestigateintoanymatterinrelationtotheitemsspecifiedinSection177oftheCompaniesAct,2013orreferredtoitbytheBoardandforthispurpose,shallhavefullaccesstoinformationcontainedintherecordsoftheCompanyandexternalprofessionaladvice,ifnecessary.
Ø Toinvestigateanyactivitywithinitstermsofreference.
Ø Toseekinformationfromanyemployee.
Ø Toobtainoutsidelegalorotherprofessionaladvise.
Ø Tosecureattendanceofoutsiderswithrelevantexpertise,ifitconsidersnecessary.
Annual Report 2016-1720
GSL Nova
Ø Oversightof theCompany’sfinancial reportingprocessand thedisclosureof itsfinancial information toensure that thefinancialstatementiscorrect,sufficientandcredible.
Ø Recommendingtheappointmentandremovalofexternalauditor,fixationofauditfeesandalsoapprovalforpaymentforanyotherservices.
Ø ReviewingwithmanagementtheannualfinancialstatementsbeforesubmissiontotheBoard,focusingprimarilyon;
• Anychangesinaccountingpoliciesandpractices.
• Majoraccountingentriesbasedonexerciseofjudgmentbymanagement.
• Qualificationindraftauditreport.
• Significantadjustmentsarisingoutofaudit.
• Thegoingconcernassumption.
• Compliancewithaccountingstandards.
• Compliancewithstockexchangeandlegalrequirementsconcerningfinancialstatements.
• Any relatedparty transactions i.e. transactionof theCompanyofmaterialnature,withpromotersor themanagement, theirsubsidiariesorrelativesetc.thatmayhavepotentialconflictwiththeinterestsofCompanyatlarge.
Ø Reviewingwiththemanagement,externalandinternalauditors,theadequacyofinternalcontrolsystems.
Ø Reviewingtheadequacyofinternalauditfunction,includingthestructureoftheinternalauditdepartment,staffingandseniorityoftheofficialheadingthedepartment,reportingstructurecoverageandfrequencyofinternalaudit.
Ø Discussionwithinternalauditorsanysignificantfindingsandfollowupthereon.
Ø ReviewingthefindingsifanyinternalinvestigationsbytheinternalauditorsintomatterswherethereissuspectedfraudorirregularityorafailureofinternalcontrolsystemsofamaterialnatureandreportingthemattertotheBoard.
Ø Discussionwithexternalauditorsbeforetheauditcommences,natureandscopeofauditaswellashavepost-auditdiscussiontoascertainanyareaofconcern.
Ø ReviewintheCompany’sfinancialandriskmanagementpolicies.
Ø Tolookintothereasonsforsubstantialdefaultsinthepaymenttothedepositors,debentures,shareholders(incaseofnonpaymentofdeclareddividend)andcreditors.
Ø Itshallhavediscussionswiththeauditorsperiodicallyaboutinternalcontrolsystems,thescopeofauditincludingtheobservationsoftheauditorsandreviewthequarterly,half-yearlyandannualfinancialstatementsbeforesubmissionstotheBoard.
Ø Itshallensurecomplianceofinternalcontrolsystems.
AuditCommitteemetFourtimeson30-05-2016,13-08-2016,14-11-2016and14-02-2017
PresenceofthemembersoftheAuditCommitteeinitsmeeting
Sr. no. Name of the member of the Audit Committee No. of meetings attended
1 Shri Sandeep Goyal 4
2 Shri Anil Singhal 4
3. Shri Sunil Kumar Gupta 4
ChairmanofAuditCommitteehasattendedLastAGMoftheCompany.AlltheMeetingswerealsoattendedbytheAuditorsoftheCompany.
5. Nomination and Remuneration Committee
TheNominationandRemunerationCommitteewasconstitutedofthreeNonExecutiveDirectorsviz.,ShriSandeepGoyal,Chairman,ShriShyamGupta,MemberandShriAnilSinghalMemberinaccordancewithListingAgreementwithStockExchangesandinaccordancewithScheduleXIIIoftheCompaniesAct,2013,
TheCommitteemetonetimeon30-08-2016.Allthemembersofthecommitteewerepresentinthemeeting.
TheCommitteehasbeenconstitutedtodetermineallelementsofremunerationpackageoftheDirectorsi.e.salary,benefits,bonuses,stockoptions,pensionetc.
ChairmanofNominationandRemunerationCommitteehasattendedLastAGMoftheCompany.AlltheMeetingswerealsoattendedbytheAuditorsoftheCompany.
6. Stakeholder Relationship Committee
In Compliancewith the provisions of Listing Agreement and Section 178 of Companies Act, 2013, Company constitutes StakeholdersRelationshipCommittee.ThisCommitteeconsistingofShriSunilKumarGuptaasChairmanoftheCommittee,ShriAnilSinghalandShriSandeepGoyalasitsmembers.
TheCommitteeoverseestheperformanceoftheRegistrar&TransferAgentoftheCompanyandtakescareofgrievancesreceivedfromtheShareholders/Investors.
Annual Report 2016-17 21
GSL Nova
Ms.DhwaniShah,CompanySecretaryoftheCompanyhasbeenappointedastheComplianceOfficer.ThereisnopendingShareTransferforaperiodaboveonemonth.
Chairmanof stakeholder relationshipCommitteehasattendedLastAGMof theCompany.All theMeetingswerealsoattendedby theAuditorsoftheCompany.
INVESTOR COMPLAINTS
1 Pendingatthebeginningoftheyear NIL
2 Receivedduringtheyear NIL
3 Disposed of during the year NIL
4 Remainingunresolvedattheendoftheyear NIL
7. General Meeting
Meeting Date of meeting Time of the meeting
Place of the meeting
20thAnnualGeneralMeeting 30thSeptember,2013 3.30p.m. SurveyNo.396,403,MoraiyaVillage,Sarkhej-BavlaHighway,Tal.Sanand,Dist.Ahmedabad–382210
21stAnnualGeneralMeeting 29thSeptember,2014 3.30p.m. SurveyNo.396,403,MoraiyaVillage,Sarkhej-BavlaHighway,Tal.Sanand,Dist.Ahmedabad–382210
22ndAnnualGeneralMeeting 29thSeptember,2015 3.30p.m. SurveyNo.396,403,MoraiyaVillage,Sarkhej-BavlaHighway,Tal.Sanand,Dist.Ahmedabad–382210
23rdAnnualGeneralMeeting 30thSeptember,2016 3.30p.m. SurveyNo.396,403,MoraiyaVillage,Sarkhej-BavlaHighway,Tal.Sanand,Dist.Ahmedabad–382210
OneSpecialResolutionwasrequiredtobeputthroughpostalballotatthetimeofthesemeetings.
9. Disclosures
1. Disclosureonmateriallysignificantrelatedpartytransactionsi.e.transactionsofthecompanyofmaterialnature,withitspromoter,thedirectorsorthemanagement,orrelativesetc.thatmayhavepotentialconflictwittheinterestofcompanyatlarge:
Alltransactionswithrelatedpartieswereintheordinarycourseofbusinessandatarm’slength.TheCompanyhasnotenteredintoanytransactionsofamaterialnaturewithanyoftherelatedpartieswhichareinconflictwiththeinterestoftheCompany.
2. Detailsofnon-compliancebythecompany,penalties,imposedontheCompanybyStockExchange,SEBIoranystatutoryauthority,onanymatterrelatedtoCapitalmarkets,duringthelastthreeyears:None
3. CompliancewithAccountingstandards
InthepreparationoffinancialstatementsthereisnodeviationfromtheprescribedAccountingStandards.
4. ComplianceCertificatefromtheAuditors
Certificatefromtheauditorsofthecompanyconfirmingcompliancewiththemandatoryrequirementsunderclause49ofthelistingagreementsunderclause49ofthelistingagreementisannexedtothisreport.ThiscertificatehasalsobeenforwardedtotheStockExchangewherethesharesofcompanyarelisted.
5. Adoptionofnonmandatoryrequirementsunderclause49andasapplicableundercompaniesAct,2013
The company complieswith the following non-mandatory requirements under clause 49with reference to Companies Act, 2013relatingtoAuditCommittee.
(a) WhistleBlowerPolicy
Thecompanyhasputinplaceamechanismofreportingillegalorunethicalbehavior.Employeesarefreetoreportviolationsoflaws,rules,regulationsorunethicalconducttotheirimmediatesupervisor/notifiedpersons.
Thereportsreceivedfromanyemployeewillbereviewedbytheauditcommittee.Itisaffirmedthatnopersonhasbeendeniedaccess to the audit committee in this respect. TheDirectors and seniormanagement are tomaintain confidentiality of suchreportingandensurethatthewhistleblowersarenotsubjectedtoanydiscriminatorypractice.
TheAuditCommittee,hasbeendesignatedbytheBoardforreviewingtheadequacyoftheriskmanagementframeworkoftheCompany,thekeyrisksassociatedwiththebusinessoftheCompanyandthemeasuresaretakeninplacetominimizethesameandthereafterthedetailsarepresentedtoanddiscussedattheBoardmeeting.
10. Means of Communication
FinancialResultsarebeingpublishedinLeadingNews-PapersaswellascopiesofthesamearealsobeingsenttoalltheStockExchangeswheretheSharesoftheCompanyarelistedforthebenefitofthePublicatlarge.
Annual Report 2016-1722
GSL Nova
FinancialResultsarepublishednormallyinleadingEnglishnewspaperandinVernaculardailyNewspaper.
• TheCompanysuppliescopiesoftheFinancialResultsandAnnualReportoftheCompanytovariousAnalysts,registeredShareBrokers,variousGovernmentDepartments&Agencies,andotherInvestorsandallthoseinterestedingettingthesameasandwhenrequested.
• ManagementDiscussion&AnalysisisapartofAnnualReportattachedherewith.
10. General Shareholder Information
(a) AGM: Date, time and venue –
tobeheldon31st,thedayofJuly,2017at3.30p.m.attheRegisteredOfficeoftheCompanyatSurveyNo.396,403,MoraiyaVillage,Sarkhej-BavlaHighway,Tal.Sanand,Dist.Ahmedabad–382210.
(b) Financial Calendar – From April to March (Tentative):
Results for the Quarter ending:
June30,2017 SecondweekofAugust,2017.
September30,2017 SecondweekofNovember,2017.
December31,2017 SecondweekofFebruary,2018.
March31,2018 FifthweekofMay,2018.
(c) Stock Code –
TheBombayStockExchangeLtd. Code–530605
ISINNo.oftheCompany INE787A01022
(d) Registrar and Transfer Agent
M/sMCSShareTransferandAgentLtd.
201,ShatdalComplex,2ndFloor,Opp.BataShowRoom,AshramRoad,Ahmedabad-09.
(e) Share Transfer System
EquitySharesoftheCompanyreceivedfromtheInvestorsforthepurposeofTransferintheirnamearebeingprocessedfortransferatintervalofeveryfortnightineachcalendarmonthandaftercompletingtheprocedureofShareTransfersharesarebeingreturnedwithinaperiodrangingfromtwotothreeweeks,providedthedocumentslodgedwiththeRegistrars/Companyareclearinallrespects.
(f) Distribution of Shareholding
DISTRIBUTION OF SHAREHOLDINGS AS ON 31-03-2017
Number of Shares held
(1)
Number of Share Holders Total Number of Share
Number(2)
% to Total Nos.(3)
Total Shares(4)
% to Total Shares(5)
1 To 500 6938 76.99 1391291 5.15
501 To 1000 969 10.75 818722 3.03
1001 To 2000 501 5.56 819842 3.03
2001 To 3000 184 2.04 471974 1.75
3001 To 4000 104 1.15 379192 1.40
4001 To 5000 67 0.74 315392 1.17
5001 To 10000 114 1.26 843909 3.13
10001 To 50000 106 1.18 2137239 7.92
50001 To 100000 6 0.07 368795 1.36
100001 To above 23 0.26 19453644 72.06
Total 9012 100 2700000 100
Annual Report 2016-17 23
GSL Nova
SHAREHOLDING PATTERN AS ON 31-03-2017
Category No. of shares Percentage of total shares
Promoters Holding
Indianpromoters 2366480 8.77
Bodies Corporate 12566800 46.54
Non-PromotersHolding
Financialinstitutions/Institutional 600 0.00
Mutual Funds 0 0
FIIs 0 0
Non-Institutional
Bodies Corporate 4837118 17.91
Individual 6517707 24.14
NRI 706295 2.62
HUF 0 0
OverseasCorporateBody 5000 0.02
Trust 0 0
TOTAL 27000000 100.00
(h) Dematerialisation of Shares
2,61,79,061EquitySharesoftheCompanyaredematerializedason31stMarch,2017.Total96.96%sharesaredematerialize.
(i) Outstanding GDRs/ADRs/ Warrants or any convertible instruments, conversion date and likely impact on equity
CompanyhasnotissuedanyGDR/ADR/Warrant.
(j) Plant Location
Plantlocatedat:-SurveyNo.396/403,MoraiyaVillage,Sarkhej-BavlaHighway,Tal.Sanand,Dist.Ahmedabad–382210Gujarat,India.
(k) Address for correspondence
SurveyNo.396/403,MoraiyaVillage,Sarkhej-BavlaHighway,Tal.Sanand,Dist.Ahmedabad–382210Gujarat,India.
CONFIRMATION BY MANAGING DIRECTOR ABOUT COMPLIANCE OF CODE OF CONDUCT
Iherebyconfirmthat
TheCompanyhasobtainedaffirmationfromallthemembersoftheBoardandemployeesatSeniorManagementlevelthattheyhavecompliedwiththe“codeofconductforBoardofDirectorsandSeniorManagement“.
Sd/-Place: Ahmedabad Sunil Kumar GuptaDate:30thMay,2017 ManagingDirector
Annual Report 2016-1724
GSL Nova
AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCE
To,TheMembersofGSL Nova Petrochemicals Limited(FormerlyknownasNovaPetrochemicalsLimited)
WehaveexaminedthecomplianceofconditionsofCorporateGovernancebyGSLNovaPetrochemicalsLimited(FormerlyNovaPetrochemicalsLimited)fortheyearendedonMarch31,2017asstipulatedinclause49oftheListingAgreementofthesaidCompanywiththestockexchanges.
ThecomplianceofconditionsofCorporateGovernanceistheresponsibilityofthemanagement.Ourexaminationwaslimitedtoproceduresandimplementationthereof,adoptedbytheCompanyforensuringthecomplianceoftheconditionsofCorporateGovernance.ItisneitheranauditnoranexpressionofopiniononthefinancialstatementsoftheCompany.
Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,wecertifythattheCompanyhascompliedwiththeconditionsofCorporateGovernanceasstipulatedinclause49oftheListingAgreement.
WestatethatnoinvestorgrievanceispendingforaperiodexceedingonemonthagainsttheCompanyaspertherecordsmaintainedbytheShareholdersGrievanceCommittee.
WefurtherstatethatsuchcomplianceisneitheranassuranceastofutureviabilityoftheCompanynortheefficiencyoreffectivenesswithwhichthemanagementhasconductedtheaffairsoftheCompany.
For,J. T. SHAH & COMPANYChartered Accountants
Place:Ahmedabad (J.T. Shah)Date :30thMay,2017 Partner
CEO_CFO CERTIFICATION
ShreeSunilKumarGupta,CEOandMissMayankaGupta,CFOofthecompanyshallcertifythat,tothebestoftheirknowledgeandbelief:
(a) Theyhavereviewedthebalancesheetandprofitandlossaccountandallitsschedulesandnotesonaccounts,aswellasthecashflowstatementsandtheDirectors’Report;
(b) Thesestatementsdonotcontainanymateriallyuntruestatementoromitanymaterialfactnordotheycontainstatementsthatmightbemisleading;
(c) Thesestatementstogetherpresentatrueandfairviewofthecompany,andareincompliancewiththeexistingaccountingstandardsand/orapplicablelaws/regulations;
(d) Theyareresponsibleforestablishingandmaintaininginternalcontrolsandhaveevaluatedtheeffectivenessof internalcontrolsystemsofthecompany;andtheyhavealsodisclosedtotheauditorsandtheAuditCommittee,deficienciesinthedesignoroperationofinternalcontrols,ifany,andwhattheyhavedoneorproposetodotorectifythese;
(e) TheyhavealsodisclosedtotheauditorsaswellastheAuditCommittee,instancesofsignificantfraud,ifany,thatinvolvesmanagementoremployeeshavingasignificantroleinthecompany’sinternalcontrolsystems;and
(f) Theyhaveindicatedtotheauditors,theAuditCommitteeandinthenotesonaccounts,whetherornotthereweresignificantchangesininternalcontroland/orofaccountingpoliciesduringtheyear.
For, GSL Nova Petrochemicals Limited
Date :30/05/2017Place:Ahmedabad CEO CFO
Annual Report 2016-17 25
GSL Nova
INDEPENDENT AUDITORS’ REPORTTo,TheMembersofGSL NOVA PETROCHEMICALS LIMITEDAhmedabad
1. Report on the Standalone Financial Statements
Wehaveaudited theaccompanying standalonefinancial statementsofGSLNOVAPETROCHEMICALS LIMITED (“theCompany”),whichcomprisetheBalanceSheetasat31stMarch,2017,theStatementofProfitandLoss,theCashFlowStatementfortheyearthenended,andasummaryofthesignificantaccountingpoliciesandotherexplanatoryinformation.
2. Management’s Responsibility for the Standalone Financial Statements
TheCompany’sBoardofDirectorsisresponsibleforthemattersstatedinSection134(5)oftheCompaniesAct,2013(“theAct”)withrespecttothepreparationofthesestandalonefinancialstatementsthatgiveatrueandfairviewofthefinancialposition,financialperformanceand cash flows of the Company in accordance with the accounting principles generally accepted in India, including the AccountingStandardsspecifiedunderSection133oftheAct,readwithRule7oftheCompanies(Accounts)Rules,2014.ThisresponsibilityalsoincludesmaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsoftheActforsafeguardingtheassetsoftheCompanyandforpreventinganddetectingfraudsandotherirregularities;selectionandapplicationofappropriateaccountingpolicies;makingjudgmentsandestimates thatare reasonableandprudent; anddesign, implementationandmaintenanceof adequate internalfinancial controls,thatwereoperatingeffectively forensuringtheaccuracyandcompletenessof theaccountingrecords, relevanttothepreparationandpresentationofthefinancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror.
3. Auditor’s Responsibility
Ourresponsibilityistoexpressanopiniononthesestandalonefinancialstatementsbasedonouraudit.WehavetakenintoaccounttheprovisionsoftheAct,theaccountingandauditingstandardsandmatterswhicharerequiredtobeincludedintheauditreportundertheprovisionsoftheActandtheRulesmadethereunder.
WeconductedourauditinaccordancewiththeStandardsonAuditingspecifiedunderSection143(10)oftheAct.ThoseStandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.
Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsandthedisclosuresinthefinancialstatements.Theproceduresselecteddependontheauditor’s judgment, includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalfinancialcontrolrelevanttotheCompany’spreparationofthefinancialstatementsthatgiveatrueandfairviewinordertodesignauditproceduresthatareappropriatein the circumstances, but not for the purpose of expressing an opinion onwhether the Company has in place an adequate internalfinancialcontrolssystemoverfinancialreportingandtheoperatingeffectivenessofsuchcontrols.AnauditalsoincludesevaluatingtheappropriatenessoftheaccountingpoliciesusedandthereasonablenessoftheaccountingestimatesmadebytheCompany’sDirectors,aswellasevaluatingtheoverallpresentationofthefinancialstatements.
Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourqualifiedauditopiniononthestandalonefinancialstatements.
4. Basis for Qualified Opinion
i. Theaccountsof theCompanyhavebeenpreparedonagoingconcernbasis, though thecompanyhasstopped itsmanufacturingactivitiesformorethanayearandentirenetworthofthecompanyhasbeeneroded.TheFinancialstatementsdonotincludeanyadjustments relating to the recoverability and classification of recorded asset amounts and classification of liability thatmay benecessaryiftheCompanyisunabletocontinueasagoingconcern.
ii. TradeReceivables,OtherAdvances,DepositandTradePayablesaresubjecttoconfirmationandadjustmentifany.
iii. Compoundinterest,Penalinterestandliquidateddamagesinrespectofallborrowingshavenotbeenprovided,amountofwhichisunascertainable,pendingconfirmations/reconciliation(RefertoNoteNo.8.3)
5. Qualified Opinion
In ouropinion and to thebest of our informationandaccording to theexplanations given tous, except for theeffectsof thematterdescribedintheBasisforQualifiedOpinionparagraph,thefinancialstatementsgivetheinformationrequiredbytheActinthemannersorequiredandgiveatrueandfairviewinconformitywiththeaccountingprinciplesgenerallyacceptedinIndia:-
i. InthecaseoftheBalanceSheet,ofthestateofaffairsoftheCompanyasatMarch31,2017;
Annual Report 2016-1726
GSL Nova
ii. InthecaseoftheStatementofProfitandLossAccount,ofthelossfortheyearendedonthatdate;and
iii. InthecaseoftheCashFlowStatement,ofthecashflowsfortheyearendedonthatdate.
6. Report on Other Legal and Regulatory Requirements
(i) AsrequiredbytheCompanies(Auditor’sReport)Order,2016(“theOrder”) issuedbytheCentralGovernmentof India intermsofSection143(11)ofCompaniesAct2013,wegiveintheAnnexureastatementonthemattersspecifiedinparagraphs3and4oftheOrdertotheextentapplicable.
(ii) AsrequiredbySection143(3)oftheAct,wereportthat:
(a) Wehavesoughtandobtainedalltheinformationandexplanationswhichtothebestofourknowledgeandbeliefwerenecessaryforthepurposesofouraudit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from ourexaminationofthosebooks.
(c) TheBalanceSheet,theStatementofProfitandLoss,andtheCashFlowStatementdealtwithbythisReportareinagreementwiththebooksofaccount.
(d) Inouropinion,theaforesaidstandalonefinancialstatementscomplywiththeAccountingStandardsspecifiedunderSection133oftheActreadwithRule7oftheCompanies(Accounts)Rules,2014.
(e) Onthebasisofthewrittenrepresentationsreceivedfromthedirectorsason31stMarch,2017takenonrecordbytheBoardofDirectors,noneofthedirectorsisdisqualifiedason31stMarch,2017frombeingappointedasadirectorintermsofSection164(2)oftheAct.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operatingeffectivenessofsuchcontrols,refertoourseparateReportin“AnnexureA”.
(g) WithrespecttotheothermatterstobeincludedintheAuditor’sReportinaccordancewithRule11oftheCompanies(AuditandAuditors)Rules,2014,inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous:
i. TheCompanyhasdisclosedtheimpactofpendinglitigationsonitsfinancialpositioninitsfinancialstatements–ReferNote25tothefinancialstatements;
ii. TheCompanydoesnothaveanyoutstandinglong-termcontractsincludingderivativecontractsasat31stMarch,2017forwhichtherewereanymaterialforeseeablelosses;and
iii. Therehasbeennodelayintransferringamounts,requiredtobetransferred,totheInvestorEducationandProtectionFundbytheCompanyduringyear.
iv. TheCompanyhasprovidedrequisitedisclosuresinthefinancialstatementsastoholdingsaswellasdealingsinSpecifiedBankNotesduringtheperiodfrom8thNovember,2016to30thDecember,2016.BasedonauditproceduresandrelyingonthemanagementrepresentationwereportthatthedisclosuresareinaccordancewithbooksofaccountmaintainedbytheCompanyandasproducedtousbytheManagement–ReferNote38tothefinancialstatements.
For,J.T. Shah & Co.CharteredAccountants,
[FirmRegd.No.109616W]
(J.T. Shah)Place : Ahmedabad PartnerDate : 30/05/2017 [M.No.3983]
Annual Report 2016-17 27
GSL Nova
ANNEXURE TO INDEPENDENT AUDITORS’ REPORTReferredtoinparagraph6(i)ofourReportofevendatetotheMembersofGSLNOVAPETROCHEMICALSLIMITEDfortheyearended31stMarch,2017.
1. In respect of Fixed Assets :
(a) ThepresentregisterofFixedAssetsrequirescompletionincertainrespects&wehavebeeninformedthatsuchworkisinprogress.
(b) Aspertheinformationandexplanationsgiventous,themanagementatreasonableintervalsduringtheyearinaccordancewithaprogrammeofphysicalverificationphysicallyverifiedthefixedassetsandnomaterialdiscrepancieswerenoticedonsuchverificationascomparedtotheavailablerecords.
(c) Asexplainedtous,thetitledeedsofalltheimmovablepropertiesareheldinthenameofthecompany.
2. In respect of its Inventories :
Aspertheinformationandexplanationsgiventous,inventorieswerephysicallyverifiedduringtheyearbythemanagementatreasonableintervals.Nomaterialdiscrepancieswerenoticedonsuchphysicalverification.
3. In respect of Loans and Advances granted during the year:
Asregardstheloans,thecompanyhasnotgrantedanyloans,securedorunsecuredduringtheyearunderaudit,totheCompaniesfirmsandotherpartiescoveredintheregistermaintainedundersection189ofthecompaniesAct,2013andtherefore,theclauses(iii)(a)to(c)ofthecompanies(Auditor’sReport)Order,2016arenotapplicable.
4. Loans, Investments and gurantees:
Accordingtotheinformationandexplanationgiventous,thecompanyhadneithergivenanyloan,guaranteeorsecurity,normadeanyinvestmentsduringtheyear.Hencetheprovisionsofsection185and186arenotapplicable.Therefore,clauses(iv)ofcompanies(Auditor’sReport)Order,2016isnotapplicable.
5. Duringtheyear,thecompanyhasnotacceptedanydepositsandhencethedirectivesissuedbytheReserveBankofIndiaandtheprovisionsofsections73to76oranyotherrelevantprovisionsoftheCompaniesActandtherulesframedthereunderarenotapplicabletothecompany.Therefore,clauses(v)ofcompanies(Auditor’sReport)Order,2016isnotapplicable.
6. Accordingtotheinformationandexplanationsgiventous,thecompanyisnotrequiredtomaintaincostrecordsasrequiredbythecentralgovernmentundersubsection(1)ofsection148oftheCompaniesAct,2013.Henceclause(vi)ofthe(Auditor’sReport)Order,2016isnotapplicable.
7. In respect of Statutory Dues :
(a) AccordingtotherecordsoftheCompany,theCompanyisbyandlargeregularindepositingwithappropriateauthoritiesundisputedstatutoryduesincludingemployees’stateinsurance,incometax,wealthtax,dutyofcustoms,cessandotherstatutorydueswiththeappropriateauthoritiesapplicabletoitexcepttherewereinstancesofdelayinpaymentofProfessionalTax,TaxdeductedatSource,ServiceTax,ValueAddedTax,CentralSalesTaxandExciseduty.
According to the informationandexplanations given tous, in respect statutoryduesProfessional Taxof Rs. 1,07,530/- , InvestorEducationProtectionFundRs2,85,041/-,TaxdeductedatsourceofRs.14,480/-,CentralsalestaxofRs.4,63,841/-andvalueaddedtaxofRs.1,01,151/-wereoutstandingasat31stMarch,2017foraperiodofmorethansixmonthsfromthedatetheybecamepayable.
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GSL Nova
(b) Accordingtotherecordsofthecompany,theduesofincometax,salestax,wealthtaxorservicetaxordutyofcustomsordutyofexciseorvalueaddedtaxorcesswhichhavenotbeendepositedonaccountofdisputesandtheforumwherethedisputeispendingareasunder:
Name of the Statute Nature of the Dues Year Amount (Rs.) Forum where dispute is pending
TheCentralExciseandCustomsAct ExciseDuty&Penalty 2003-04 32,30,730 Custom Excise and Service TaxAppellateTribunal
ExciseDuty&Penalty 2006-07&2007-08
19,59,742 Commissioner of Excise andCustoms(Appeals)
ExciseDuty&Penalty 2007-10 2,47,00,000 Custom Excise and Service TaxAppellateTribunal
ExciseDuty&Penalty 2005-06 11,89,019 Additional Commissioner ofCentralExcise
TheFinanceAct,1994 Servicetax&Penalty 2004-05 33,98,000 Custom Excise and Service TaxAppellateTribunal
Servicetax&Penalty 2005-06 1,41,479 Assistant Commissioner of CentralExcise
Servicetax&Penalty 2007-08 18,53,152 Commissioner (Appeal) ServiceTax
TheCentralSalesTaxAct,1956 Central Sale Taxdemand and penalty
2012-13 5,14,814 JointCommissioner(Appeals)
GujaratValueAddedTaxAct,2003 Gujarat Value AddedTaxand penalty
2012-13 10,55,818 JointCommissioner(Appeals)
TheTextileCommitteeAmendmentAct,1973
TextileCess 1995to2005 50,90,119 TextilesCommittee,GovernmentofIndia,MinistryofTextiles
GujaratPollutionControlAct Compensation 2004to2010 5,164,620 HighCourtofGujarat
8. Inouropinionandaccordingtotheinformationandexplanationgiventous,therewasadelayrangingupto178days inrepaymentofprincipalofRs4,98,72,341/-andadelayrangingupto169daysinrepaymentofinterestofRs.4,66,39,524/-tofinancialinstitutionwhichhavebeensincepaid.Further,thecompanyhasdefaultedinrepaymentofprincipalandrepaymentofinteresttoFinancialInstitutionasonbalancesheetdatethedetailsofthesameareasfollows:-
Particulars Amount of default as at balance sheet date
Period of default
JMFinancialAssetReconstructionCompanyPvt.Ltd. Principal-Rs.129,867,534/-Interest-Rs.1,647,340/-
Principal-182DaysInterest-1Days
9. Accordingtotheinformationandexplanationsgiventous,thecompanyhadnotraisedanymoneybywayofpublicissueduringtheyear.Accordingtothe informationandexplanationsgiventous,andonanoverallexaminationofthebalancesheetofthecompany, inouropinion,nonewtermloanshasbeentakenduringtheyearunderconsideration.
10. Basedupontheauditproceduresperformedandinformationandexplanationsgivenbythemanagement,wereportthatnofraudbytheCompanyoranyfraudonthecompanybyit’sofficeroremployeeshasbeennoticedorreportedduringthecourseofouraudit.
11. Inouropinionandaccordingtotheinformationandexplanationsgiventous,thecompanyhadpaidmanagerialremunerationwhichisinaccordancewiththerequisiteapprovalsmandatedbytheprovisionsofsection197readwithscheduleVofTheCompaniesAct,2013.
12. Inouropinionandaccordingtotheinformationandexplanationsgiventous,theprovisionsofspecialstatuteapplicabletochitfundsandnidhi/mutualbenefitfunds/societiesarenotapplicabletothecompany.Hence,clause(xii)oftheCompany’s(Auditor’sReport)Order,2016isnotapplicable.
13. Inouropinionandaccordingtotheinformationandexplanationsgiventous,thetransactionsenteredbythecompanywithrelatedpartiesareincompliancewiththeprovisionsofsection177and188ofTheCompaniesAct,2013anddetailsthereofareproperlydisclosedinthefinancialstatements.
14. Thecompanyhasnotmadeanypreferentialallotmentorprivateplacementofsharesorfullyorpartlyconvertibledebenturesduringtheyearunderreviewhenceprovisionsofsectionsof42oftheCompaniesAct,2013arenotapplicable.
15. Thecompanyhadnotenteredintoanynon-cashtransactionswiththedirectorsorpersonsconnectedwithhimduringtheyear,hencesection192oftheCompanies’Act,2013isnotApplicable.Andclause(xvi)ofCompany’s(Auditor’sReport)Order,2016isnotapplicable.
16. Inouropinionandaccordingtotheinformationandexplanationgiventousthecompanyisnotrequiredtoberegisteredundersection45-IAofReserveBankofIndiaAct,1934.
For,J.T. Shah & Co.CharteredAccountants,
[FirmRegd.No.109616W]
(J.T. Shah)Place : Ahmedabad PartnerDate : 30/05/2017 [M.No.3983]
Annual Report 2016-17 29
GSL Nova
ANNEXURE “A” TO INDEPENDENT AUDITORS’ REPORTReferredtoinparagraph6(ii)(f)ofourReportofevendatetotheMembersofGSLNOVAPETROCHEMICALSLIMITEDfortheyearended31stMarch,2017.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)
Wehaveaudited the internalfinancial controlsoverfinancial reportingofGSLNOVAPETROCHEMICALSLIMITEDasof31stMarch2017, inconjunctionwithourauditofthestandalonefinancialstatementsoftheCompanyfortheyearendedonthatdate.
Management’s Responsibility for Internal Financial Controls
TheCompany’smanagementisresponsibleforestablishingandmaintaininginternalfinancialcontrolsbasedontheinternalcontroloverfinancialreportingcriteriaestablishedbytheCompanyconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia.Theseresponsibilitiesincludethedesign,implementationandmaintenanceofadequateinternalfinancialcontrolsthatwereoperatingeffectivelyforensuringtheorderlyandefficientconductofitsbusiness,includingadherencetocompany’spolicies,thesafeguardingofitsassets,thepreventionanddetectionoffraudsanderrors,theaccuracyandcompletenessoftheaccountingrecords,andthetimelypreparationofreliablefinancialinformation,asrequiredundertheCompaniesAct,2013.
Auditors’ Responsibility
OurresponsibilityistoexpressanopinionontheCompany’sinternalfinancialcontrolsoverfinancialreportingbasedonouraudit.WeconductedourauditinaccordancewiththeGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReporting(the“GuidanceNote”)andtheStandardsonAuditing,issuedbyICAIanddeemedtobeprescribedundersection143(10)oftheCompaniesAct,2013,totheextentapplicabletoanauditofinternalfinancialcontrols,bothapplicabletoanauditofInternalFinancialControlsand,bothissuedbytheInstituteofCharteredAccountantsofIndia.ThoseStandardsandtheGuidanceNoterequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetheradequateinternalfinancialcontrolsoverfinancialreportingwasestablishedandmaintainedandifsuchcontrolsoperatedeffectivelyinallmaterialrespects.
Ourauditinvolvesperformingprocedurestoobtainauditevidenceabouttheadequacyoftheinternalfinancialcontrolssystemoverfinancialreportingandtheiroperatingeffectiveness.Ourauditofinternalfinancialcontrolsoverfinancialreportingincludedobtaininganunderstandingofinternalfinancialcontrolsoverfinancialreporting,assessingtheriskthatamaterialweaknessexists,andtestingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbasedontheassessedrisk.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.
WebelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinionontheCompany’sinternalfinancialcontrolssystemoverfinancialreporting.
Meaning of Internal Financial Controls over Financial Reporting
Acompany’sinternalfinancialcontroloverfinancialreportingisaprocessdesignedtoprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples.Acompany’s internalfinancialcontroloverfinancial reporting includesthosepoliciesandproceduresthat (1)Pertain tothemaintenanceofrecords that, in reasonable detail ,accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) Providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresofthecompanyarebeingmadeonlyinaccordancewithauthorizationsofmanagementanddirectorsofthecompany;and(3)providereasonableassuranceregardingpreventionortimelydetectionofunauthorizedacquisition,use,ordispositionofthecompany’sassetsthatcouldhaveamaterialeffectonthefinancialstatements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or impropermanagement override of controls,materialmisstatements due to error or fraudmay occur and not be detected. Also, projections of anyevaluationoftheinternalfinancialcontrolsoverfinancialreportingtofutureperiodsaresubjecttotheriskthattheinternalfinancialcontroloverfinancialreportingmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.
Opinion
Inouropinion,theCompanyhas,inallmaterialrespects,anadequateinternalfinancialcontrolssystemoverfinancialreportingandsuchinternalfinancialcontrolsoverfinancialreportingwereoperatingeffectivelyasat31stMarch2017,basedontheinternalcontroloverfinancialreportingcriteriaestablishedbytheCompanyconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia.
For,J.T. Shah & Co.CharteredAccountants,
[FirmRegd.No.109616W]
(J.T. Shah)Place : Ahmedabad PartnerDate : 30/05/2017 [M.No.3983]
Annual Report 2016-1730
GSL Nova
Balance Sheet As At 31-03-2017Particulars Note
No.As at
31/03/2017 Rs.
As at 31/03/2016
Rs.
EQUITY AND LIABILITIES
[1] Shareholders’ Funds :
[a] Share Capital 2 1,350.00 1,350.00
[b] Reserves&Surplus 3 (6,431.91) (5,723.50)
(5,081.91) (4,373.50)
[2] Non-CurrentLiabilities:
[a] Long Term Borrowings 4 - -
[b] DeferredTaxLiabilities(Net) 5 - -
[c] Long-TermProvisions - -
- -
[3] CurrentLiabilities
[a] Short-termBorrowings 6 1,382.52 834.96
[b] TradePayables:
[i]PayabletoMicroandSmallEnterprise 7 - -
[ii]PayabletoOthers 7 1,155.77 1,050.27
[c] OtherCurrentLiabilities 8 4,995.52 6,762.22
[d] ShortTermProvisions - -
7,533.81 8,647.45
Total ..... 2,451.90 4,274.22
ASSETS :
[1] Non-CurrentAssets
[a] [i]Property,Plant&Equipment 9 1,822.17 2,879.08
[ii]IntangibleAssets 9 0.34 -
1,822.51 2,879.08
[b] Non-CurrentInvestments 10 2.34 2.34
[c] Long-TermLoansandAdvances 11 168.94 211.18
[d] OtherNon-CurrentAssets - -
1,993.79 3,092.60
[2] Current Assets
[a] Inventories 12 6.12 740.38
[b] TradeReceivables 13 354.68 378.12
[c] Cash&BankBalances 14 42.39 13.96
[d] ShortTermLoansandAdvances 11 53.92 48.89
457.11 1,181.35
Total ..... 2,450.91 4,273.95
SignificantAccountingPolicies 1
NotesonFinancialStatements 2to40
Asperourreportofevendateattachedherewith For, J.T. Shah & Co For GSL Nova Petrochemicals Limited Chartered Accountants [FirmRegd.No.109616W]
[J. T. Shah] Shyam Gupta Sunil Kumar GuptaPartner [Chairman] [Mg.Director][M.No.3983] [DIN-00010735] [DIN-00008344]
Place: Ahmedabad Dhwani ShahDate : 30/05/2017 [Co.Sectretary]
Annual Report 2016-17 31
GSL Nova
Statement of Profit & Loss for the year ended 31-03-2017
ScheduleNote No.
For the year ended
31/03/2017Rs.
For the year ended
31/03/2016Rs.
INCOME
RevenuefromOperations 15 1,533.72 858.85
Less:ExciseDuty - -
NetRevenuefromOperations 1,533.72 858.85
OtherIncome 16 100.77 329.46
Total Revenue 1,634.50 1,188.31
EXPENDITURE
Cost of materials consumed 17 (23.96) -
PurchaseofStockinTrade 18 501.45 547.94
ChangeinInventoriesofFinishedGoods,WorkinProcessandStockinTrade 19 615.83 61.59
EmployeeBenefitsExpense 20 7.45 12.46
Finance Costs 21 526.15 1,012.44
DepreciationandAmortisationexpense 22 48.35 64.86
OtherExpenses 23 484.39 78.60
Total Expenses 2,159.65 1,777.89
Profit/(Loss)beforeExceptionalItemandTax (525.16) (589.58)
ExceptionalItem 24 - 827.43
Less:Taxexpense:
- CurrentTax - -
- DeferredTax - -
Profit for the year (525.16) 237.85
Basic&dilutedearningspershareoffacevalueofRs.5eachbeforeExceptionalItem (0.00) (0.00)
Basic&dilutedearningspershareoffacevalueofRs.5eachafterExceptionalItem (0.00) 0.00
SignificantAccountingPolicies 1
NotesonFinancialStatements 2to40
Asperourreportofevendateattachedherewith For, J.T. Shah & Co For GSL Nova Petrochemicals Limited Chartered Accountants [FirmRegd.No.109616W]
[J. T. Shah] Shyam Gupta Sunil Kumar GuptaPartner [Chairman] [Mg.Director][M.No.3983] [DIN-00010735] [DIN-00008344]
Place: Ahmedabad Dhwani ShahDate : 30/05/2017 [Co.Sectretary]
Annual Report 2016-1732
GSL Nova
CASH FLOW STATEMENT FOR THE YEAR ENDED 31-03-201731-03-2017 31-03-2016
A Cash from Operating ActivityNetProfitBeforeTaxandExceptionalItem -525.16 (589.58)
-525.16 (589.58)NonCashAdjustmenttoreconcileprofitbeforetaxtonetcashflowsDepreciation 48.35 64.86ImpairmentofProperty,Plant&Equipmentretiredfromactiveuse 166.02 Nil(Profit)/Lossonsaleoffixedassets(net) 82.29 (202.00)InterestReceived -0.68 (0.98)ProvisionforDoubtfulAdvances 18.04 NilProvision/(Reversal)fordoubtfulDebtors&Advances 21.56 (20.00)
335.58 (158.11)DividendIncome 0.00 (0.06)InterestandFinanceCharges 526.15 1,012.44
526.14 1,012.38 AdjustmentforMovementsinWorkingCapital:Increase/(decrease)inTradePayable 105.50 (60.59)Increase/(decrease)inLong-TermProvision 0.00 NilIncrease/(decrease)inShort-TermProvision 0.00 NilIncrease/(decrease)inOtherCurrentliability -330.82 1,197.01Decrease/(increase)inTradeReceivable 1.87 608.42Decrease/(increase)inInventories 734.27 61.59Decrease/(increase)inLongTermLoansandAdvances 35.27 (53.58)Decrease/(increase)inShortTermLoansandAdvances -5.03 137.40
541.05 1,890.25 CASH GENERATED FROM 0PERATIONS 877.62 2,154.94 DirectTaxespaid -11.07 (2.64)
11.07 (2.64)NET CASH FLOW FROM OPERATIONS 866.55 2,152.30
B Cash flow from investing activitiesPurchaseofFixedAssets -0.83 (38.62)SaleofFixedAssets 577.50 1,103.02SaleofNonCurrentInvestment 0.00 Nil(Increase)/DecreaseMarginMoneyDepositmade 3.54 3.69InterestReceived 0.68 0.98DividendIncome 0.00 0.06NET CASH USED IN INVESTING ACTIVITY 580.89 1,069.14
C Cash flow from financing activitiesIncrease/(Decrease)ofLongTermBorrowing 0.00 (2,231.52)Increase/(Decrease)ofShortTermBorrowing 945.25 63.00Interestpaid -2,358.27 (1,063.31)FinanceChargesPaid -2.05 NilDividendpaidonEquityShares(Incl.DividendTax) 0.00 NilNET CASH USED IN FINANCING ACTIVITY -1,415.07 (3,231.84)Net Increase/(Decrease) in cash and cash equivalents 32.37 (10)CashandcashequivalentOpeningBalance 8.81 19.21CashandcashequivalentClosingBalance 40.78 8.81Net Increase/(Decrease) in cash and cash equivalents 31.97 (10.40)
Notes:=> TheaboveCashFlowStatementhasbeenpreparedunderthe“IndirectMethod”setoutinAccountingStandard-3issuedbyCompanies
(AccountingStandard)Rules,2008
Asperourreportofevendateattachedherewith For, J.T. Shah & Co For GSL Nova Petrochemicals Limited Chartered Accountants [FirmRegd.No.109616W]
[J. T. Shah] Shyam Gupta Sunil Kumar GuptaPartner [Chairman] [Mg.Director][M.No.3983] [DIN-00010735] [DIN-00008344]
Place: Ahmedabad Dhwani ShahDate : 30/05/2017 [Co.Sectretary]
Annual Report 2016-17 33
GSL Nova
1. SIGNIFICANT ACCOUNTING POLICIES
a. Basis of Preparation of financial Statements
ThefinancialstatementsoftheCompanyhavebeenprepared inaccordancewiththeGenerallyAcceptedAccountingPrinciples inIndia(IndianGAAP)tocomplywiththeAccountingStandardsspecifiedunderSection133oftheCompaniesAct,2013,readwithRule7oftheCompanies(Accounts)Rules,2014andtherelevantprovisionsoftheCompaniesAct,2013("the2013Act"),asapplicable.Thefinancialstatementshavebeenpreparedasagoingconcernonaccrualbasisunderthehistoricalcostconvention.Theaccountingpoliciesadoptedinthepreparationofthefinancialstatementsareconsistentwiththosefollowedinthepreviousyear.
b. Use of estimates
InpreparingtheCompany'sfinancialstatementsinconformitywiththeaccountingprinciplesgenerallyacceptedinIndia,managementisrequiredtomakeestimatesandassumptionsthataffectthereportedamountsofassetsandliabilitiesandthedisclosureofcontingentliabilitiesatthedateofthefinancialstatementsandreportedamountsofrevenuesandexpensesduringthereportingperiod.Actualresultscoulddifferfromthoseestimates.Anyrevisiontoaccountingestimatesisrecognisedprospectivelyinthecurrentandfutureperiods.
c. Property, Plant & Equipment
Property, Plant& Equipments are stated at cost, net of Cenvat, less accumulateddepreciation.All costs, includingfinancial coststill commencementofcommercialproductionarecapitalizedto thecostofqualifyingassets.CENVATcreditsoncapitalgoodsareaccountedforbyreducingthecostofcapitalgoods.
Whenassetsareretiredfromactiveuse,thesamearevaluedatlowerofNetbookvalueandNetrealizablevalue.
Whenassetsaredisposed,theircostisremovedfromthefinancialstatements.ThegainorlossarisingonthedisposalofanassetisdeterminedasthedifferencebetweensalesproceedsandthecarryingamountoftheassetandisrecognisedinStatementofProfitandLossfortherelevantfinancialyear.
DepreciationonAssetsotherthanlandandPlantandMachineryhasbeenprovidedon"StraightLineMethod"overusefullifeprovidedinScheduleIIoftheCompaniesAct,2013.DepreciationonPlantandMachineryhasbeenprovidedon"WrittendownValueMethod"overusefullifeprovidedinScheduleIIoftheCompaniesAct,2013.
d. Intangible Assets
IntangibleAssetsarestatedatcostofacquisitionnetofrecoverabletaxeslessaccumulatedamortization.Allcosts,includingfinancingcosts inrespectofqualifyingassetstillcommencementofcommercialproduction,netchargesonforeignexchangecontractsandadjustmentsarisingfromexchangeratevariationsattributabletotheintangibleassetsarecapitalized.
Intangibleassetsareamortisedonastraight–linebasisovertheirestimatedusefullives.Arebuttablepresumptionthattheusefullifeofanintangibleassetwillnotexceedtenyearsfromthedatewhentheassetisavailableforuseisconsideredbythemanagement.
Thegainor lossarisingonthedisposalor retirementofan intangibleasset isdeterminedas thedifferencebetweennetdisposalproceedsandthecarryingamountoftheassetandisrecognisedasincomeorexpensesintheStatementofProfitandLossintheyearordisposal.
e. Inventories
Inventoriesatyear-endarevaluedatthelowerofcostornetrealizablevalue.RawMaterials,Stores,Spares,Fuel,PackingMaterialsandFinishedGoodsarevaluedonFIFObasisandLandheldasstockintradeisvaluedatcostorNetRealizableValuewhicheverislower.
f. Foreign Currency Transactions
Transactions denominated in Foreign Currency are normally recorded at the exchange rate prevailing at the time of transaction.Monetary itemsdenominated in foreigncurrenciesat theyearare translatedat the rateprevailingon thedateofBalanceSheet.ExchangedifferencesaredealtwithintheProfit&Lossaccount.
g. Revenue Recognition
i. SalesareaccountedforondispatchofgoodstothecustomersandareinclusiveofExciseDutyandSalesTaxbutnetofsalesreturnsandtradediscounts.
ii. SalesinrespectofLandHeldasstockintradearerecognizedwhentitleoflandandsignificantrisksandrewardsofownershiphasbeentransferredtothecustomer.
iii. Dividendoninvestmentisrecognizedwhentherighttoreceivethepaymentisestablished.
Annual Report 2016-1734
GSL Nova
h. Investments
Non-CurrentInvestmentsarestatedatitscost.ProvisionismadeforanydiminutioninthevalueoftheNon-CurrentInvestments,ifsuchdeclineisotherthantemporary.
i. Borrowing Cost
BorrowingCoststhatareattributabletotheacquisitionorconstructionofqualifyingassetsarecapitalizedaspartofthecostofsuchassets,tillsuchassetsarereadyfortheirintendeduse.Aqualifyingassetistheonewhichnecessarilytakessubstantialperiodtogetreadyforintendeduse.Allotherborrowingcostsarechargedtorevenue.Capitalizationofborrowingcostissuspendedwhenactivedevelopmentisinterrupted.
j. Taxation
i) ProvisionforcurrenttaxismadeandretainedintheaccountsonthebasisofestimatedtaxliabilityaspertheapplicableprovisionsoftheIncomeTaxAct,1961.
ii) DeferredTaxresultingfrom“timingdifference”betweentaxableandaccountingincomeisaccountedforusingthetaxratesandlawsthatareenactedorsubsequentlyenactedasonthebalancesheetdate.Deferredtaxassetisrecognisedandcarriedforwardonlytotheextentthatthereisvirtualcertaintythattheassetswillberealizedinfuture.
k. Provisions, Contingent Liabilities and Contingent Assets
Provisionsinvolvingsubstantialdegreeofestimationinmeasurementarerecognizedwhenthereisapresentobligationasaresultofpasteventsanditisprobablethattherewillbeanoutflowofresources.Contingentliabilitiesarenotrecognizedbutaredisclosedinthenotestoaccounts.ContingentAssetsareneitherrecognizednordisclosedinthefinancialstatement.
l. Impairment of Assets
TheManagement Periodically assesses using external and internal sources whether there is an indication that an assetmay beimpaired.Ifanassetisimpaired,thecompanyrecognizesanimpairmentlossastheexcessofthecarryingamountoftheassetovertherecoverableamount.Theimpairmentlossrecognisedinprioraccountingperiodsisreversediftherehasbeenachangeintheestimateofrecoverableamounts.
m. Earning Per Share
Basicearningpershareiscalculatedbydividingnetprofitaftertaxfortheyearattributabletoequityshareholdersofthecompanybytheweightedaveragenumberofequitysharesissuedduringtheyear.Dilutedearningpershareiscalculatedbydividingnetprofitattributabletoequityshareholders(afteradjustmentfordilutedearnings)byaveragenumberofweightedequitysharesoutstandingduringtheyear.
n. Employee Benefits
(i) TheemployeeandCompanymakemonthlyfixedContribution toGovernmentof IndiaEmployee’sProvident fundequal toaspecifiedpercentageofthecoveredemployee’ssalary,Provisionforthesameismadeintheyearinwhichservicearerenderedbytheemployees.
(ii) TheLiabilityforGratuitytoemployee,whichisadefinedbenefitplan,isdeterminedonthebasisofactuarialValuationbasedonProjectedUnitCreditmethod.Actuarialgain/Lossinrespectofthesameischargedtotheprofitandlossaccount.
(iii) Leaveencashmentbenefittoeligibleemployeehasbeenascertainedonactuarialbasisandprovidedfor.Actuarialgain/lossinrespectofthesameischargedtotheprofitandlossaccount.
(iv) ShortTermbenefitsarerecognisedasanexpenseattheundiscountedamountsintheStatementofProfitandLossoftheyearinwhichtherelatedserviceisrendered.
Annual Report 2016-17 35
GSL Nova
2 Share Capital
As at 31/03/2017
Rs.
As at 31/03/2016
Rs.
[a] Authorised :
4,50,00,000(PreviousYear4,50,00,0000)EquitySharesofRs.5/-(PreviousYearRs.5/-)each 2,250.00 2,250.00
10,00,000(Previousyear10,00,000)PreferenceSharesofRs.100/-(PreviousYearRs.100)each 1,000.00 1,000.00
3,250.00 3,250.00
[b] Issued, Subscribed & Paid-up Capital :
2,70,00,000(PreviousYear2,70,00,000)EquitysharesofRs.5/-(PreviousYearRs.5/-)eachfullypaid up
1,350.00 1,350.00
Total ….. 1,350.00 1,350.00
ReferNoteNumber29fordetailsofbasicanddilutedshares
2.1 ThecompanyhasissuedonlyOneclassofsharesreferredtoasEquityshareshavingfacevalueofRs.5/-.EachHolderofOneshareisentitledtoOnevotepershare.
2.2 Intheeventofliquidationofthecompany,theholdersofequityshareswillbeentitledtoreceiveremainingassetsofthecompany,afterdistributionofallpreferentialamounts.Thedistributionwillbeinproportiontothenumberofequitysharesheldbytheshareholder.
2.3 UnderaschemeofthedemergerofNovaPetrochemicalsLtd,thecompanyissuedandallotted2,70,00,000equityshareamountingtoRs.13,50,00,000/-totheshareholdersofNovaPetrochemicalsLtdintheratioofoneequityshareofRs.5eachfullypaidupinthecompanyforeveryoneequityshareofRs.10eachfullypaidupheldbytheshareholdersofNovaPetrochemicalsLtdintheyear2009-10.
2.4 Thedetailsofshareholdersholdingmorethan5%sharesasat31/03/2017and31/03/2016issetoutbelow.
Name of Shareholder As at 31/03/2017 As at 31/03/2016
No. of Shares % held No. of Shares % held
PolycoatIndiaPvt.Ltd.(FormarlyKnownasGuptaSilkMillLtd) 16,50,000 6.11% 16,50,000 6.11%
GuptaSilkMillsPvtLtd 50,47,400 18.69% 50,47,400 18.69%
ComptelInfosysPvt.Ltd. 34,00,000 12.59% 34,00,000 12.59%
ChiripalIndustriesLtd. 26,16,000 9.69% 25,96,000 9.61%
2.5 TheReconcilliationofthenumberofsharesoutstandingandtheamountofsharecapitalasat31/03/2017&31/03/2016issetoutbelow
Name of Shareholder As at 31/03/2017 As at 31/03/2016
No. of Shares Amount (Rs.) No. of Shares Amount (Rs.)
SharesatthebeginningofFaceValueofRs.5/- 2,70,00,000 1,350.00 2,70,00,000 1,350.00
Additionduringtheyear Nil Nil Nil Nil
Deductionduringtheyear Nil Nil Nil Nil
SharesattheendofFaceValueofRs.5/- 2,70,00,000 1,350.00 2,70,00,000 1,350.00
Annual Report 2016-1736
GSL Nova
3 Reserves & Surplus
As at 31/03/2017
Rs.
As at 31/03/2016
Rs. Security Premium ReserveBalanceasperlastfinancialStatement 1,189.70 1,189.70Closing Balance 1,189.70 1,189.70Revaluation ReserveBalanceasperlastfinancialStatement 2,028.89 3,369.62Less:Adjustedaginstlossonpreviouslyrevaluedland(ReferNote19) Nil (234.31)Less:Adjustedagainstdiminutioninvalueoflandwhichisnowheldasstockintrade(ReferNote19) Nil (920.15)Less:SurplusofrevaluationpertainingtolandheldasstockintradewhichissoldduringtheyearnowtransferredtostatementofProfitandLoss
(384.20) (186.27)
Less:AdjustedaginstlossonpreviouslyrevaluedFreeholdlandWhichisSoldduringtheyear(ReferNoteNo.23)
(183.25) Nil
Less:SurplusofrevaluationpertainingtoFreeholdlandwhichissoldduringtheyearnowtransferredtostatementofProfitandLoss
(394.54) Nil
Closing Balance 1,066.90 2,028.89General ReserveBalanceasperlastfinancialStatement 225.00 225.00Closing Balance 225.00 225.00Surplus in the Statement of Profit and Loss BalanceasperlastfinancialStatement (9,167) (9,591.22)Add : Loss for the year (525.16) 238Add:SurplusofrevaluationpertainingtoFreeholdlandwhichissoldduringtheyearnowtransferredfromRevaluationReserve
394.54 Nil
Add: Surplus of revaluationpertaining to landheld in stock in tradewhich is soldduring the yeartransferredfromRevaluationReserve
384.20 186.27
NetDeficitinthestatementofprofitandloss (8,914) (9,167)Total ….. (6,432) (5,724)
4 Long Term Borrowings
Non-Current Current
As at 31/03/2017
Rs.
As at 31/03/2016
Rs.
As at 31/03/2017
Rs.
As at 31/03/2016 Rs.
TermLoan-FromAssetReconstructionCompany@ Nil Nil 3,552.21 3,154.52[IndianrupeeloanfromBank(Secured)]
Nil Nil 3,552.21 3,154.52 TheaboveamountIncludesSecured Borrowings Nil Nil 3,552.21 4,750.96Amountdisclosedunderthehead'OtherCurrentLiabilities'(NoteNo.8) Nil Nil (3,552.21) (4,750.96)Total ….. Nil Nil Nil Nil
4.1 Security :
@ TermLoansfromAssetReconstructionCompanyaresecuredbyfirstchargeonFixedAssets(throughmortgage/hypothecationofallimmovable&movableassets),chargeonbookdebt&stocksbothpresent&future,furtherloanfromAssetReconstructionCompanywerefurthersecuredbymortgageoverpropertylyingatBasantBahar-4havingPlotNo.6&7,SharesofGSLNovapetrochemicalsLtd.,CorporateguranteeofBasantbaharpropertiesPvtLtdtotheextentofvalueofResidentialplotNo.6&7andfurthersecuredbypersonalguaranteeofPromoterDirectors&CorporateGuranteeofPromoter'sGroupCompanies.
4.2 Interest:
InrespectofTermLoanfromAssetReconstructionCompanyisliabletopayinterest@24%P.a.
4.3 Repayment:
@ TermLoanFacilitiesarerepayableinfollowingscheduleinmonthlyinstalments:- (AmountinRs.)
Particulars Upto 1 year 2 to 4 Years 5 to 7 years More than 8 years
Term Loan Nil Nil Nil Nil
Annual Report 2016-17 37
GSL Nova
4.4 Default in payment of Interest on Term Loans & Working Capital Loans:
TheDetailsinrespectoftheDefaultsmadebytheCompanyinpaymentofInterestonTermLoan&InterestonCashCredithasbeengiveninNoteNo.8.1
5 Deferred Tax
Thecompanyisentitledforsetoffofcarriedforwardlossesandunabsorbeddepreciationagainstthefutureincomeundertheincometaxact.However,asamatterofprudence,thecompanyisnotrecognisingthedefferedtaxassetasprovidedintheAccountingStandard-22"AccountingforTaxesonIncome"issuedbytheInstituteofCharteredAccountantofIndia.
6 Short-Term Borrowings
Current
As at 31/03/2017
Rs.
As at 31/03/2016
Rs.
Unsecured Borrowings
LoanfromRelatedParties 1,358.52 810.96
Loan From other Corporate Bodies 24.00 24.00
1,382.52 834.96
7 Trade payables
Current
As at 31/03/2017
Rs.
As at 31/03/2016
Rs.
Micro,SmallandMediumEnterprises@ Nil Nil
Others 1,155.77 1,050.27
@TheCompanyhasnotreceivedtherequiredinformationfromSuppliersregardingtheirstatusundertheMicro,SmallandMediumEnterprisesDevelopmentAct,2006.Hencedisclosures,ifany,relatingtoamountsunpaidasattheyearendtogetherwithinterestpaid/payableasrequiredunderthesaidActhavenotbeenmade.
Total ….. 1,155.77 1,050.27
8 Other Current Liabilities
Current
As at 31/03/2017
Rs.
As at 31/03/2016
Rs.
CurrentMaturitiesofLongtermBorrowings(RefertoNoteNo.8.1) 3,552.21 3,154.52
Creditors for Capital Goods 1.84 3.05
CreditorsforExpenses 24.81 60.48
Advancereceivedfromcustomers 908.05 1,237.88
AdvancereceivedforSaleofCapitalAsset 430.50 366.25
Dealer Deposits 22.46 21.63
Interestaccruedanddueonborrowings(RefertoNoteNo.8.1) 16.47 1,850.04
Otherpayables 7.82 14.22
Other Statutory dues 28.50 51.29
InvestorEducation&ProtectionFund 2.85 2.85
Total ….. 4,995.52 6,762.22
8.1 Default in payment of Interest & Installments: Inearlieryears,theCompanyhaddefaultedinrepaymentoftotalPrincipalloansamountingtoRs.350,426,887/-andtotalinterest
amountingtoRs.113,795,419/-.TheseloanshavebeentakenoverbytheAssetReconstructionCompany.Duringtheyear,theCompanyhasnotpaidtotalamountofresheduledPrincipalamountofRs.12,98,67,535/-andRs16,47,340/-payabletoAssetReconstructionCompanyupto31stMarch,2017totheAssetReconstructionCompany.
Annual Report 2016-1738
GSL Nova
8.2 TheCompanyhasdefaultedinpaymentofrescheduledprincipalandinterestandhencetheentiretermloanisdueforpaymentasperthetermsofsanction.
8.3 Compound interest, penal interest & liquidated damages have not been considered on all borrowings, amount of which isunascertainable,pendingconfirmation/reconciliation.
Note No - 9
Property,Plant & Equipment Intangible Assets
Cost of Valuation Free Hold Land*
Buildings Furniture & Fixtures
Electrical Installation
Computer Plant & Machinery
Equipment Vehicle Total Computer Software
Total
01.04.2015 1,776.81 1,403.13 137.19 806.62 102.01 11,858.88 252.77 107.79 16,445.19 3.63 3.63
Addition Nil Nil Nil Nil 0 38 Nil Nil 39 Nil Nil
Disposal Nil Nil Nil (357.55) Nil (8,533.58) Nil Nil (8,891.13) Nil Nil
OtherAdjustment Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil
At31.03.2016 1,776.81 1,403.13 137.19 449.07 102.22 3,363.71 252.77 107.79 7,592.68 3.63 3.63
Addition Nil Nil Nil Nil Nil 0.32 Nil Nil 0.32 0.51 0.51
Disposal (624.21) (341.20) Nil Nil Nil (567.34) Nil Nil (1,532.75) Nil Nil
OtherAdjustment(*) Nil Nil Nil Nil Nil (166.02) Nil Nil (166.02) Nil Nil
At31.03.2017 1,152.60 1,061.93 137.19 449.07 102.22 2,630.67 252.77 107.79 5,894.23 4.14 4.14
01.04.2015 Nil 641.04 134.69 798.63 101.94 10,623.58 251.51 87.45 13,406.88 3.63 3.63
Charge for the year Nil 54.64 0.85 2.25 0.09 Nil 0.81 6.24 64.86 Nil Nil
Disposal Nil Nil Nil (351.80) Nil (7,638.30) Nil Nil (7,990.11) Nil Nil
OtherAdjustment Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil
At31.03.2016 Nil 695.67 135.54 449.07 102.03 2,985.28 252.32 93.69 4,713.60 3.63 3.63
Charge for the year Nil 40.88 0.81 Nil 0.07 Nil 0.18 6.24 48.18 0.17 0.17
Disposal Nil (176.09) Nil Nil Nil (513.63) Nil Nil (689.71) Nil Nil
OtherAdjustment Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil
At31.03.2017 Nil 560.46 136.35 449.07 102.10 2,471.65 252.50 99.93 4,072.06 3.80 3.80
NETBLOCK
ASAT31.3.2016 1,776.81 707.46 2 0.00 0.19 378.43 0.45 14.10 2,879.08 Nil Nil
ASAT31.3.2017 1,152.60 501.47 1 Nil 0.12 159.02 0.27 7.86 1,822.17 0.34 0.34
Note-1:On31/03/2010,theCompanyhadrevaluateditsFreeHoldLandatRs.17,76,80,959/-asagainstitsoriginalcostofRs.4,83,47,018/-basedontheReportissuedbytheRegisteredValuer.
Note-2:StatementshowingassetsdiscardedfromactiveuseandawaitingdisposalincludedinProperty,Plant&Equipmentsstatedabove
Particulars Gross Block
Accumalated Depreciation
NetBlock Netrealisable
value
ImpairmentLoss
bookedduring the
year
Gross BlockafterImpairment
NetBlockafter
Impairment
Plant&Machineryasat31/03/2017
2,796.69 2,471.65 325.04 159.02 166.02 2,630.67 159.02
Plant&Machineryasat31/03/2016
3,363.71 2,985.28 378.43 378.43 - 3,363.71 378.43
(*)OtherAdjustmentincludesimpairmentlossonitemsofPPEretiredfromactiveuserestatedatlowerofCarryingamountorNetRealizableValue.
Annual Report 2016-17 39
GSL Nova
10 Non current investments
Non Current
As at 31/03/2017
Rs.
As at 31/03/2016
Rs.
Investment in Equity Share (Quoted) [Non-Trade]
(1) 100(PreviousYear100)EquityShareofMahendraPetrochemicalLtd.(FormerlyknownasMahendraSuitingLtd.)ofRs10/-eachfullypaid-up
150.00 150.00
(2) 50(PreviousYear50)EquityShareofJCTLtd.OfRs2.5/-eachfullypaid-up 308.00 308.00
(3) 100(PreviousYear100)EquityShareofRajasthanPetroSyntheticsLtd.OfRs10/-eachfullypaid-up
175.00 175.00
(4) 100(PreviousYear100)EquityShareofJBFIndustriesLtd.OfRs10/-eachfullypaid-up 905.00 905.00
(5) 100(PreviousYear100)EquityShareofSanghiPolesterLtd.OfRs10/-eachfullypaid-up 370.00 370.00
(6) 8(PreviousYear8)EquityShareofIndoRamaSynthetics(India)Ltd.OfRs10/-eachfullypaid-up 80.00 80.00
(7) 2(PreviousYear2)EquityShareofSpentexIndustriesOfRs10/-eachfullypaid-up 20.00 20.00
(8) 2(PreviousYear2)EquityShareofRelinceIndustriesLtd.OfRs10/-eachfullypaid-up 185.00 185.00
(9) 2800(PreviousYear2800)EquityShareofUCOBankLtd.OfRs10/-eachfullypaid-up 33,600.00 33,600.00
(10) 1(PreviousYear1)EquityShareofRelianceCommunicationLtd.OfRs5/-eachfullypaid-up 137.00 137.00
0.36 0.36
Investment in Equity Share (Unquoted) [Non-Trade]
(1) 19800(PreviousYear19800)EquitySharesofNPLPowerPvt.Ltd.OfRs10/-eachfullypaid-up 1.98 1.98
1.98 1.98
Total ….. 2.34 2.34
Aggregateamountofbookvalueofquotedinvestments 0.36 0
MarketValueofquotedinvestments 1.33 2.50
AggregateamountofbookvalueofUnquotedinvestments 1.98 1.98
Annual Report 2016-1740
GSL Nova
11 Loans and Advances (Unsecured,Considerd good unless stated otherwise)
Non-Current Current
As at 31/03/2017
Rs.
As at 31/03/2016
Rs.
As at 31/03/2017
Rs.
As at 31/03/2016 Rs.
CapitalAdvances 25.42 25.46 Nil NilLess:ProvisionForDoubtfulAdvances (25.42) (19.62) Nil Nil
0.00 5.84 Nil NilAdvancesForGoods 22.16 22.16 9.88 10.22Less:ProvisionForDoubtfulAdvances (22.16) (20.91) Nil Nil
(0.00) 1.25 9.88 10.22AdvancesForExpenses 1.88 1.89 23.83 20.15Less:ProvisionForDoubtfulAdvances (1.89) (1.89) Nil Nil
(0.01) Nil 23.83 20.15(0.00) 7.09 33.71 30.37
Security Deposits 4.15 39.37 Nil NilAdvancesrecoverableincashorkind 51.94 51.94 4.52 4.83Less:ProvisionforDoubtfulAdvances (11) Nil Nil Nil
41 51.94 4.52 4.83BalanceWithGovtAuthorities Nil Nil 12.39 10.82InterestReceivable Nil Nil Nil NilLoans to Employees Nil Nil 0.01 0.01Gratuity Fund Nil Nil 5.74 5.30Less:ProvisionofGratuity Nil Nil (2.45) (2.45)
Nil Nil 3.29 2.85AdvanceTaxandTDS 179.43 168.35 Nil NilLess:ProvisionForTaxation (55.58) (55.58) Nil Nil
123.85 112.77 Nil NilTotal ….. 169 211.18 53.92 48.89
12 Inventories
Current
As at 31/03/2017
Rs.
As at 31/03/2016
Rs.
Raw materials Nil 23.96
Work-in-Process Nil Nil
Finished Goods Nil Nil
Stores&Spareparts 6.12 122.34
Power&Fuel Nil Nil
GreyFabric Nil 126.66
Land(Stock-in-Trade) Nil 465.20
PackingMaterial Nil 2.21
Total ….. 6 740.38
Annual Report 2016-17 41
GSL Nova
13 Trade Receivables
Current
As at 31/03/2017
Rs.
As at 31/03/2016
Rs.
TradeReceivables(Unsecured)
OutstandingforaperiodexeedingSixMonthsfromthedatetheyaredueforPayment
Considered Good 346.08 370.02
ConsideredDoubtful 80.38 58.82
426.45 428.84
Less:Provisionfordoubtfulreceivables 80.38 58.82
346.07 370.02
OtherReceivables
Others-ConsideredGood 8.61 8.09
Others-ConsideredDoubtful Nil Nil
8.61 8.09
Less:Provisionfordoubtfulreceivables Nil Nil
8.61 8.09
Total ….. 354.68 378.12
14 Cash and Bank Balances Current
As at 31/03/2017
Rs.
As at 31/03/2016
Rs.
A Cash and cash equivalents
Cash on hand 12.13 3.35
BalanceWithBanks 28.65 5.46
40.78 8.81
B Other Bank Balance
UnclaimedDividendAccount 0.03 0.03
BankDeposit 1.58 5.12
1.61 5.15
Total ….. 42.39 13.96
15 Revenue from Operations
For the year ended
31/03/2017Rs.
For the year ended
31/03/2016Rs.
Sale of Product
Traded Goods 1,533.72 858.85
TOTAL 1,533.72 858.85
Details of Products Sold
For the year ended
31/03/2017Rs.
For the year ended
31/03/2016Rs.
Traded goods sold
Fabric 806.12 670.60
Land 727.60 188.25
Others Nil Nil
1,534 858.85
Annual Report 2016-1742
GSL Nova
16 Other Income
For the year ended
31/03/2017Rs.
For the year ended
31/03/2016Rs.
Interest Income On
-BankDeposits 0.15 0.48
-Others 0.53 0.50
DividendIncomeonNonCurrentInvestments 0.00 0.06
RentIncome 18.51 Nil
AdvanceforfeitedonSaleofCapitalAsset Nil 104.22
ProfitonSalesofProperty,Plant&Equipment Nil 202.00
MiscellaneousBalancesWrittenOff 81.58 22.20
TOTAL 101 329.46
17 Cost of Materials Consumed
For the year ended
31/03/2017Rs.
For the year ended
31/03/2016Rs.
OpeningStockofRawMaterial 0.00 23.96
Purchase Nil Nil
ClosingStockofRawMaterial Nil 23.96
0.00 Nil
Less:GoodsRemovedTransferredtoStock-in-trade(ReferNoteNo.19) (23.96) Nil
(23.96) Nil
Details of Inventory
Other raw materials Nil 23.96
Nil 23.96
18 Purchase of Stock in Trade
For the year ended
31/03/2017Rs.
For the year ended
31/03/2016Rs.
TradingPurchase 501.45 547.94
501.45 547.94
Details of Purchase of Traded Goods
FabricCloth 501.45 547.94
501.45 547.94
Annual Report 2016-17 43
GSL Nova
19 CHANGE IN INVENTORIES OF STOCK IN TRADE
For the year ended
31/03/2017Rs.
For the year ended
31/03/2016Rs.
Commencing Stock
TradedStock 591.87 1,807.91
Add:GoodsTransferredfromcostofmaterialconsumed(ReferNoteNo.18) 23.96 Nil
@ Less:Adjustedagainstlossonpreviouslyrevaluedland(ReferNote3) Nil (234.31)
@ Less:Adjustedagainstdiminutioninvalueoflandwhichisnowheldasstockintrade(ReferNote3) Nil (920.15)
615.83 653.45
Closing Stock
TradedStock Nil 591.87
Nil 591.87
Decretion / (Accretion) to Stock 615.83 61.59
Details of Traded Stock
Fabric Nil 126.66
Land Nil 465.20
Nil 591.87
@ TheCompanyhadconverted it's industrial landofRs.18,07,90,833/- intostockduringtheyearended31/03/2015.Thesaid landhadbeenrevaluedon31/03/2010andresultantsurplusofRs.17,24,92,884/-wascreditedtorevaluationreserveaccount.Duringtheyear, thecompanyhas soldpartof the said landand resultant lossofRs.Nil (PY-Rs.2,34,30,902/- )fromsuch sale isadjustedagainst revaluation reseveas samewasdue to increasewhichwaspreviously recordedand credited toRevaluationReserve. ThesurplusamountofRs.3,84,20,406/-(PY-Rs.1,86,26,770/-)standinginrevaluationreservepertainingtodisposedlandistransferredtoStatementofProfit&LossAccount.DuringtheyeartheunsoldlandheldasstockintradeisstatedatitsNetRealisableValueofRs.Nil(PY-Rs.4,65,20,125/-)andtheresultantdeficitofRs.Nil(PY-Rs.9,20,14,806/-)isalsoadjustedagainstbalanceinrevaluationreserveasthesamewasduetoanincreasewhichwaspreviouslyrecordedascredittoRevaluationReserve.
20 EMPLOYEE BENEFIT EXPENSE
For the year ended
31/03/2017Rs.
For the year ended
31/03/2016Rs.
Salary,Wages&Bonus 7.37 12.32
StaffWelfareExpense 0.09 0.14
TOTAL 7.45 12.46
Note :Asonbalancesheetdatecompanydoesnothaveanypermanentemployeeshencedisclosure requirement in respectofAS-15"EmployeeBenefits"hasnotbeenapplicabletocompany.
21 FINANCE COST
For the year ended
31/03/2017Rs.
For the year ended
31/03/2016Rs.
InteresttoBanks Nil 186.48
OtherInterest 524.70 825.62
BankCharges 1.45 0.34
TOTAL 526.15 1,012.44
Annual Report 2016-1744
GSL Nova
22 Depreciation and Amortization Expense
For the year ended
31/03/2017Rs.
For the year ended
31/03/2016Rs.
DepriciationonProperty,Plant&Equipment 48.18 64.86
DepriciationonIntangibleAssets 0.17 655.40
TOTAL 48.35 720.26
23 OTHER COSTS
For the year ended
31/03/2017Rs.
For the year ended
31/03/2016Rs.
DiminutioninvalueofStores&Spares 116.23 Nil
DiminutioninvalueofPackingmaterial 2.21 Nil
Electricity&Fuelcharges 7.37 5.22
Freight,Cartage&Octroi Nil 0.20
REPAIRS TO:
Building 1.79 1.59
Machinery Nil Nil
Others 0.37 0.09
TOTAL 2.16 1.68
ImpairmentofProperty,Plant&Equipmentretiredfromactiveuse 166 Nil
Insurance 0.89 2.08
RentExpense 6.00 6.00
Rates&Taxes 28.78 43.28
Postage&TelephoneExpenses 1.29 1.65
Stationery,Printing&AdvertisementExpenses 1.02 1.31
Traveling,ConveyanceandVehicleExpenses 12.10 11.01
Donation Nil 5.00
ProvisionforDoubtfulAdvances 18 Nil
Provision/(ReversalofProvision)fordoubtfuldebts 21.56 (20.00)
Legal&ProfessionalExpenses 12.29 16.03
AUDITOR'S REMUNERATION:
Audit Fees 0.00 0.86
TaxAudit 0.25 0.29
TaxationandOthers Nil Nil
TOTAL 0 1.15
LossonSalesofProperty,Plant&Equipment** 82.29 Nil
MiscelleneousExpense(ItincludesCanteenExpense,DirectorSittingFees,GeneralExpense,HouseKeepingExpense&StationaryandPrintingExpenseetc)
5.90 4.00
TOTAL 484.39 78.60
**(LossonSalesofProperty,Plant&EquipmenthasbeenadjustedbyRs.1,83,24,890/-againstrevaluationreservewhichpertainstosaleofrevaluedfreeholdlandReferNoteNo.3)
Annual Report 2016-17 45
GSL Nova
24 EXCEPTIONAL ITEM
For the year ended
31/03/2017Rs.
For the year ended
31/03/2016Rs.
@InterestPayableonStateBankOfIndiaLoanWrittenBack Nil 429.73
@StateBankofIndiaPrincipalWrittenOff Nil 397.70
TOTAL Nil 827.43
@ Videletterdated26/03/2014issuedbytheStateBankofIndiathecompanyhasenteredintoOneTimeSettlementwiththebankandasperthetermsofsanctioncompanyhasmadeentirepaymentagreedasperOneTimeSettlementandinterestfordelayinOneTimeSettlementPayment.Hence,shareofInterestandPrinciplesacrificebythesaidbankasperthetermsofOneTimeSellementhasbeenwrittenbacktothestatementofProfitandLoss.Thebankhasalsoissuednoduecertificateinrespectoftheirsuchloans.
25. CONTINGENT LIABILITIES:
Particulars2016-17
Amount in Rs.2015-16
Amount in Rs.
a) Income Tax demands disputed in appeal by the Company/ Income Tax Authorities(AgainstwhichtheCompanyhaspaidamountofRs.61,990/-
2.39 2.39
b) ValueAddedTaxdemandsdisputedinappealbytheCompany 10.56 Nil
c) Centralsalestaxdemandsdisputedinappealbythecompany 5.15 31.80
d) ExciseDutydemandsdisputed inappealby theCompany/ExciseAuthorities (AgainstwhichtheCompanyhaspaidamountofRs.7,53,781/-)
1207.84 1219.73
e) TextileCessDemandsdisputedpendingwithTextilesCommittee,GovernmentofIndia,MinistryofTextiles.
50.90 50.90
f) ServiceTaxdemanddisputedinappealbytheCompany/Authority 67.29 64.13
g) Claimsnotacknowledgedasdebtsbythecompany. 982.87 9,82.87
h) ShowCauseNoticesreceivedfromvariousauthorities. 31.58 Nil
i) GujaratPollutionControlAct 51.65 Nil
j) EmployeesDemandspendingbeforeLabourCourts. Amount not ascertainable
Amount not ascertainable
k) In respect of restructuredDebts under CDRmechanism, the bankswill have right torecompenseinrespectofwaivers/sacrificemadebythemunderCDRrestructuring
Amount not ascertainable
Amount not ascertainable
26. DebtorsincludesRs.1,12,158/-(PreviousYearRs.1,12,158/-)duefromprivatecompaniesinwhichsomeofthedirectorsareinterestedasdirectors.
27. ParticularsofPriorPeriodexpensedebitedtorespectiveheadofexpenditure:- (AmountinRs).
Particulars 31-03-2017 31-03-2016
(i)MiscellaneousExpense 0.56 0.43
Total . . . 0.56 0.43
28. BasedontheprinciplesfordeterminationofsegmentsgiveninAccountingStandard17“SegmentReporting”issuedbytheInstituteofCharteredAccountantsofIndia,thecompanyhasidentifiedit’srealestateandtradingbusinesssegmentasprimarysegment.“Others”
Annual Report 2016-1746
GSL Nova
representsYarnsegment.Thereisnoreportablesecondarysegmentasnoneoftheconditionsaslaiddownfordeterminingthegeographicalsegmentsaresatisfied:-
(Amount in Rs.)Particulars Trading Real Estate Other TotalSegmentRevenues 806.12
(670.60)7,27.60(188.25)
Nil(Nil)
1533.72(858.85)
UnallocableRevenue 100.77(329.45)
TotalRevenue 1634.50(1188.31)
Segment Result 154.05(437.58)
254.95(Nil)
(433.39)(811.67)
(24.39)(1249.25)
InterestandFinanceCharges 526.13(1012.44)
InterestIncome 0.68(0.98)
IncomefromInvestments Nil(0.06)
TotalProfitBeforeTax (549.85)(237.85)
Taxes Nil(Nil)
Netincomeaftertaxes (549.85)(237.85)
Assets Nil(126.66)
Nil(465.20)
2406.35(378.12)
2406.35(969.98)
UnallocableAssets 43.74(3303.97)
Total Assets 2450.09(4273.95)
Liabilities 905.12(Nil)
0.51(180.01)
354.68(1050.26)
1260.32(1230.28)
UnallocableCorporateLiabilities 1189.77(3043.67)
TotalLiabilities 2450.10(4273.95)
CapitalExpenditure 0.83(38.62)
OtherNon-cashexpenses Nil(Nil)
29. Earning Per Share
Particulars Unit 31-03-2017 31-03-2016NumeratorusedforcalculatingBasicandDilutedEarningPerShare(BeforeExceptionalItem) Rs. (549.85) (589.58)NumeratorusedforcalculatingBasicandDilutedEarningPerShare(AfterExceptionalItem) Rs. (549.85) 237.85
NominalValueperShare Rs. 5 5
WeightedAverageNo.ofSharesusedasdenominatorforcalculatingBasicandDilutedEarningPerShare
No.ofShare 2,70,00,000 2,70,00,000
BasicandDilutedEarningspersharebeforeexceptionalItem Rs. (2.04) (2.18)BasicandDilutedEarningspershareafterexceptionalItem Rs. (2.04) 0.88
30. Related Party Disclosures a) Key Management Personnel
Sr. No. Name Designation1 Shri Shyam Gupta Chairman2 ShriSunilkumarGupta Managing Director3 ShriSandeepShivkumarGoyal Director 4 ShriAnilkumarSinghal Director5 ShriMayankaSunilkumarGupta CFO6 Shri Meenu Maheshwari Director
Annual Report 2016-17 47
GSL Nova
b) List of Other Related Parties with whom transactions have taken place during the year
Sr. No. Name Sr. No. Name1 GuptaSyntheticsLimited 8 ShubhlaxmiDying&PrintingMillsPvt.Ltd2 ElloraSyntexPvt.Ltd 9 KoshiboTradeLinksPvt.Ltd.3 SharpSyntheticsPvt.Ltd 10 MilleniumInfosoftPvt.Ltd4 BasantBaharPropertiesPvt.Ltd 11 GuptaDyeingAndPrintingMillsPvtLtd5 EvergreenSyntheticsPvt.Ltd. 12 PolycoatIndiaPrivateLimited6 GuptaTexPrintsPrivateLimited 13 NovaPetrofilsLimited7 NandanDyeingPrintsPvt.Ltd
c) Details of Transactions with Key Management Personnel and Related Parties of the Key Management Personnel are as follows:(AmountinRs.)
Sr.No.
Nature ofTransaction
KeyManagement Personnel
OtherRelated Parties
Total
1 UnsecuredLoansTakenduringtheyear Nil 665.18 6,65.18
(Nil) (150.00) (150.00)Repaid during the year Nil
(150.00)117.61(92.00)
117.61(107.00)
Balance as at Balance Sheet Date 42.00 1316.52 1358.52
(42.00) (768.96) (810.96)2 Expenditure
ManagerialRemuneration&Perquisites 6.00(6.00)
Nil(Nil)
6.00(6.00)
sittingfees 0.15(0.20)
Nil(Nil)
0.15(0.20)
Purchasemadeduringtheyear Nil(Nil)
206.47(547.94)
206.47(547.96)
Rent Nil(Nil)
6.00(6.00)
6.00(6.00)
3 Stockintrade/DebtorsBalance as at Balance Sheet Date Nil 1.12 1.12
(Nil) (1.12) (1.12)4 Deposits
DepositsGiven Nil(Nil)
Nil(18.30)
Nil(18.30)
Note:Listoftransaction,outofthetransactionsreportedintheabovetable,wherethetransactionsenteredintowithsinglepartyexceedthe10%ofthetotalrelatedPartytransactionsofsimilarnatureareasunder:
AmountinRs.
(2016-17) (2015-16)1. UnsecuredLoanTaken:-
- BasantBaharPropertiesPvtLtd. 161.30 Nil- GuptaSyntheticsLtd.(Loan) 386.41 150.00Repaid:-- BasantBaharPropertiesPvtLtd. 61.25 (32.00- GuptaSyntheticsLtd.(Loan) 30.50 60.00- NovaPetrofilsLimited 20.00 Nil- Shri Shyam Gupta Nil 15.00
2. Expenditure:-ManagerialRemunerationandPerquisites:- Sunil Gupta 6.00 6.00Sittingfees:- Meenu Maheshwari 0.15 0.20Purchasemadeduringtheyear- KoshiboTradelinksPvtLtd. 38.36 Nil- SharpSyntheticsPvt.Ltd. 168.11 Nil- GuptaSyntheticsLtd Nil 547.94Rent paid- ElloraSyntexPvt.Ltd 6.00 6.00
Annual Report 2016-1748
GSL Nova
(2016-17) (2015-16)3. Deposits:-
DepositsGiven:- ElloraSyntexPvt.Ltd Nil 6.40- SharpSyntheticsPvt.Ltd Nil 11.90
31. TheamountofExchangeDifference
DebitedtoProfitandLossAccountRs.Nil/-(PreviousYeardebitedtoProfitandLossAccountRs.Nil/-)
32. ImpairmentofAsset
Duringtheyear,thecompanyhasimpairedit’sallassetstothetuneofRs.166.02/-(PreviousYearRs.Nil)
33. BorrowingcostsattributabletotheacquisitionorconstructionofQualifyingAssetsamountingtoRs.Nil(PreviousYearRs.Nil)iscapitalizedbythecompany
34. C.I.F.ValueofImportsincludes:- Amount(Rs.)
Sr. No. Particulars 2016-17 2015-16
1 Capital Goods Nil Nil
2 Raw Materials Nil Nil
3 Stores and Spares Nil Nil
35. Expenditure in Foreign Exchange :-
Sr. No. Particulars 2016-17 2015-16
1 ForeignTravellingExpenses Nil Nil
36. Earning in Foreign Exchange:
Sr. No. Particulars 2016-17 2015-16
1 FOBValueofExports Nil Nil
37. TheCompanyhasenteredintocertainoperatingleaseagreementsandanamountofRs.6,00,000/-(P.Y.Rs.6,00,000/-)paidundersuchagreementshasbeenchargedtothestatementofProfit&Loss.Theseleasearegenerallynotnon-cancellableandarerenewablebymutualconsentonmutuallyagreedterms.Therearenorestrictionsimposedbysuchagreements.
38. Disclosureofdetails inrespectofSpecifiedBankNotes(SBN)heldandtransactedduringtheperiodfrom8thNovember,2016to30thDecember,2016asrequiredbyNotificationNo.GSR308(E)[F.NO.17/62/2015-CL-V-(VOL.I)],DATED30-3-2017areprovidedintheTablebelow:—
(AmountinRs)
Sr.No.
Particulars SBNs Other denomination notes Total
1. Closingcashinhandason8-11-2016 4.80 5.00 9.80
2. (+)Permittedreceipts Nil Nil Nil
3. (+)AmountWithdrawalfromBanks Nil 0.24 0.24
4. (-)Permittedpayments Nil Nil Nil
5. (-)AmountdepositedinBanks 4.80 Nil 4.80
6. Closingcashinhandason30-12-2016 Nil 5.24 5.24
39. Figuresofthepreviousyearhavebeenregroupedand/orrearrangedwherevernecessary.
40. Intheopinionoftheboard,CurrentAssets,LoansandAdvancesareapproximatelyofthevaluestatedifrealizedintheordinarycourseofbusiness.
Note:Previousyear’sfigureshavebeenshowninbrackets.
SignaturetoNotes“1”to“40”Asperourreportofevendateattachedherewith For, J.T. Shah & Co For GSL Nova Petrochemicals Limited Chartered Accountants [FirmRegd.No.109616W]
[J. T. Shah] Shyam Gupta Sunil Kumar GuptaPartner [Chairman] [Mg.Director][M.No.3983] [DIN-00010735] [DIN-00008344]
Place: Ahmedabad Dhwani ShahDate : 30/05/2017 [Co.Sectretary]