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Hindustan Organic Chemicals Ltd.

BSE: 500449 | NSE: HOCL | Series: NA | ISIN: INE048A01011 | SECTOR: Chemicals

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Jan 21, 16:00
36.30 -0.95 (-2.55%)
Volume
AVERAGE VOLUME
5-Day
127,754
10-Day
125,602
30-Day
107,017
62,741
  • Prev. Close

    37.25

  • Open Price

    37.20

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    0.00 (0)

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NSE Live

Aug 16, 15:51
19.90 0.00 (0.00%)
Volume
No Data Available
51,679
  • Prev. Close

    19.90

  • Open Price

    19.50

  • Bid Price (Qty.)

    19.90 (387)

  • Offer Price (Qty.)

    0.00 (0)

Hindustan Organic Chemicals is not traded on NSE in the last 30 days

Annual Report

For Year :
2018 2016 2015 2014 2013 2012 2011 2010 2009

Auditor's Report

1. We have audited the attached Balance Sheet of Hindustan Organic Chemicals Limited as at 31st March 2007, the Profit and Loss Account and also the Cash Flow Statement of the Company tor the year ended on that date annexed thereto, in which is incorporated the Balance Sheet, Profit and Loss Account and Cash Flow Statement of the Branch audited by other auditors appointed by the Central Government. In preparing this Report, we have considered the report on the accounts of the branch, audited by the Branch Auditors together with the particulars and information relating thereto, furnished to us by the management. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit. 2. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. As required by the Companies (Auditors Report) Order 2003 issued by the Central Government In terms of Section 227(4A) of trie Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in the paragraphs 4 and 5 of the said Order. 4. Further to our comments in the annexure referred to above, we report that: i. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit; ii. In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books of the Company. iii. The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account of trie Company. iv. In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow .Statement dealt with by this report, comply with the Accounting Standards referred to in sub section (3C) of Section 211 of the Companies Act, 1956, except AS -13 - Accounting for Investments - regarding non-provision of diminution in the value of Current Investments. v. As per Notification No. GSR 829(E) dated 21.10.2003. provisions of section 274(1 )(g) of the Companies Act, 1956 regarding disqualification of the directors are not applicable to the Company being government Company. vi. The financial statements have been prepared on going concern basis, despite Its accumulated losses exceeding the net worth and further viability of future operations Is subject to review by the Board for Industrial and Financial Reconstruction (BIFR) and continued flow of financial support from banks, financial institutions and the Government of India. vii. Reference is invited to the following Notes on Accounts In Part B of Schedule 22 with regard to non-provision / pending charge to the Profit and Loss Account: a. Note no. 2(c) regarding penal interest of Rs. 36.60 lakhs on overdue loan from Government of India, b. Note no. 8 regarding liabilities of wage revision for the period 01.01.1997 to 31.12.2000 of Rs. 2308.08 lakhs, c. Note no 19(1)(a)(iv) regarding Claims of JNPT which Include minimum guaranteed throughput charges of Rs. 102.50 lakhs payable to JNPT authorities. viii. Reference Is also invited to the following Notes on Accounts In Part B of Schedule 22 with regard to pending accounting treatment, the precise Impact of which on the Balance Sheet and the Profit and Loss Account could not be ascertained for the reasons stated therein: (a) Note no. 1(b) and 2(a) regarding non-provision of interest on overdue principal amount of matured bonds and fixed deposits. The above amount Is not ascertained and thus we are unable to quantify the Impact of the same on the Profit for the year. (b) Note no. 18 regarding pending confirmations and reconciliation of balances of Sundry Debtors, Sundry -Creditors, Loans and Advances and other debit/credit balances. Ix. We further report that the Company has not made the provision for diminution in the value of Current Investment as on 31.03.2007 of Rs. 0.20 Lakh as required by Accounting Standard -13- Accounting for Investments.. x. In respect of suspected fraud in import of cumin during 2002-2003 at Kochl unit, three officers of the Company were suspended and pending the final report from CBI, the impact, if any, on the accounts of the Company could not be quantified. xi. We further report that effect of Items mentioned at 4(viii) and 4(ix) above could not be determined and had the provision been made for the items referred in para 4(vii) and para 4(ix) above, Profit for the year would have been lower by Rs. 3357.38 lakhs and Accumulated loss as at the year end would be higher by the same amount. Further, the Current Liabilities would have been higher by Rs. 3357.38 Lakhs. xii. Subject to our comments in para 4(xi) above, in our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the significant accounting policies and notes on accounts appearing in Schedule 22, give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles . generally accepted in India; i) in the case of Balance Sheet, of the state of affairs of the Company as at 31st March, 2007; ii) in the case of Profit and Loss Account, of the profit for the year ended on that date; and iii) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date. ANNEXURE TO THE AUDITORS REPORT (Referred to in paragraph 3 of the Auditors Report to the members of the Hindustan Organic Chemicals Limited on the accounts for the year ended on 31st March 2007) i (a) The Kochi unit has maintained proper records showing full particulars including quantitative details and situation of fixed assets. The records at Rasayanl unit are not complete with regard to Identification of the assets and exact location of the assets. (b) According to the information and explanations given to us the physical verification of major items of fixed assets was carried out during the year at Kochi unit and no material discrepancies were noticed on such verification. As Informed, at Rasayanl Unit, no physical verification has been carried out during the year. In our opinion, having regard to the size of the unit and the nature of its business the physical verification of fixed assets at Rasayanl unit needs to be carried out , every year. (c) During the year the Company has not disposed off substantial part of its fixed assets, which has effect on the Company as a . going concern. ii (a) The management has carried out physical verification of inventories at reasonable Intervals during the year. (b) in our opinion the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business. (c) The Company is maintaining proper records of inventory. Discrepancies noticed on such physical verification were not material and the same were properly dealt with in the books of account. iii (a) As informed to us, the Company has neither granted nor taken any loans secured or unsecured to/from companies, firms or other parties covered in the register maintained under, section 301 of the Companies Act, 1956 as such provisions of the clause 4 (iii) is not applicable. iv In our opinion and according to the information and explanations given to us, there is an adequate internal control system for the purchase of inventories and fixed assets and for the sale of goods and services commensurate with the size of the Company and the nature of its business. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system. , v According to the information and explanations given to us, there were no transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956. vi In our opinion and according to the information and explanation given to us, the Company has complied with the directives issued by the Reserve Bank of India and the provisions of Section 58A and 58AA or any other relevant provisions of the Act and the rifles framed there under, to the extent applicable except rule 3A of the Companies (Acceptance of Deposits) Rules, 1975 regarding Investment In liquid assets. We have been informed by the management that no order has been received by the Company, from Company Law Board, National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal under section 58A and 58AA. vii The Company has appointed firms of Chartered Accountants for conducting internal audit. In our opinion the internal audit system of the Company is fairly adequate commensurate with the size of the Company and nature of its business except at Rasayani Unit. At Rasayani Unit the system of Internal audit needs to be substantially strengthened and the scope of the internal audit of the company needs to be enlarged. viii We have broadly reviewed the books of account maintained by the Company in pursuance to the rules made by the Central Government for the maintenance of the cost records under Section 209(1)(d) of the Companies Act, 1956 for certain products of the Company and are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of records with a view to determine whether they are accurate or complete. ix (a) The Company is generally regular in depositing undisputed statutory dues including provident fund, investor education and protection fund, employees state insurance, income tax, sales tax, wealth tax, service tax, customs duty, excise duty, Cess and other statutory dues wherever applicable with the appropriate authorities.. According to the information and explanations given to us, no undisputed amount payable In respect of income tax; sales tax, wealth tax, service tax, customs duty, excise duty, cess and other statutory dues were in arrears as at 31st March, 2007 for a period of more than six months from the date they became payable. According to the records of the Company, details of outstanding dues of income tax, sales tax, wealth tax, service tax, customs duty, excise duty and cess which have not been deposited on account of any dispute are given below. x During the year, the Company has not incurred cash losses. However, it has incurred cash losses during the Immediately preceding financial year. The accumulated losses of the Company as at the year-end are exceeding Its net worth and the Company has been declared sick under the Sick Industrial Companies (Special Provisions) Act, 1985. xi The Company has defaulted in repayment of dues to financial institution, banks and bondholders, the details of which are given below: Bond Series Amount of Default (Rs. In Lacs) Bond Series - I 898.82 Bond Series - II 544.89 Bond Series - VI 469.54 Bond Series - VII (I) 488.42 Bond Series - VIII (I) 429.62 Bond Series - IX 175.91 xii Based on our examination of records and the information and explanations given to us, the Company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures or other securities. xiii The Company is not a chit fund or a nidhi, mutual benefit fund/ society, therefore the provisions of clause 4(xiii) of the Companies (Auditors Report) Order 2003 are not applicable to the Company. xiv In our opinion, the Company is not dealing or trading in shares, securities, debentures and other investments. Accordingly, provisions of clause 4(xiv) of the Order are not applicable to the Company. xv The Company has given a guarantee of Rs. 1577.00 lakhs to the financial institutions and banks on behalf of Hindustan Fluorocarbons Limited, a subsidiary company. In our opinion, the terms and conditions of the said guarantee are prima facie, not prejudicial to the interest of the Company xvi According to information and explanations given to us, term loan raised during the year by the Company have been applied for the purpose for which the said loan was obtained. xvii According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, we are of the opinion that no funds raised on short-term basis have been used for long-term investment. xviii The Company has not made any preferentialallotment of shares to parties and companies covered in the Register maintained under Section 301 of the Companies Act, 1956. xix The Company has raised Rs. 100 Crore by way of Issuing Bonds during the year, in respect of which Security is created. However, in respect of following bonds issued in earlier years, for which the Company has not created securities. Particulars of Bonds Series Maturity Principal O/s. Date as on 31st March, 2007(Rs. In Lacs) 14.50% taxable Secured bonds II 07.08.02 350.00 13.50% taxable Secured bonds VI 29.06.02 283.00 13.50% taxable Secured bonds VII (I) 14.12.02 290.00 13.50% taxable Secured bonds VIII (I) 30.07.04 260.00 13.50% taxable Secured bonds IX 30.06.05 125.00 xx The Company has not raised any funds by way of public issue during the,year. xxi Based upon the audit procedure performed for the purpose of reporting the true and fair view of the financial statement and as per the information and explanations given by the management we report that no fraud is noticed or reported by the Company during the year, . For Gala & Gala Chartered Accountants Sd/- Mumbai. ( Rajesh Chheda ) Dated : 20th June, 2007. Partner Membership No. 104748