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Oil India Ltd.

BSE: 533106 | NSE: OIL |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE274J01014 | SECTOR: Oil Drilling And Exploration

BSE Live

Sep 22, 16:00
217.15 8.15 (3.90%)
Volume
AVERAGE VOLUME
5-Day
200,628
10-Day
195,708
30-Day
119,145
274,525
  • Prev. Close

    209.00

  • Open Price

    210.00

  • Bid Price (Qty.)

    218.70 (209)

  • Offer Price (Qty.)

    219.85 (41)

NSE Live

Sep 22, 15:58
217.00 8.10 (3.88%)
Volume
AVERAGE VOLUME
5-Day
2,414,610
10-Day
2,460,584
30-Day
1,626,511
2,820,662
  • Prev. Close

    208.90

  • Open Price

    210.00

  • Bid Price (Qty.)

    217.00 (41053)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

For Year :
2019 2018 2017 2016 2015 2014 2013 2012 2011

Auditor's Report

1. We have audited the accompanying financial statements of Oil India Limited (the Company''''), which comprise the Balance Sheet as at 31st March 2014, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and Significant Accounting Policies and Additional Notes, in which are incorporated the Company''s share in the total value of assets, liabilities, expenditure and income based on fifteen audited and eighteen unaudited financial statements of Joint Ventures for exploration and production of crude oil and natural gas. 2. The attached financial statements and other financial information include Company''s share of net of fixed assets, net current liabilities, expenses and incomes aggregating to Rs 210.01crore, Rs.40.77crore, Rs.313.74crore and Rs.48.51crore respectively as at March 31, 2014 in respect of fifteen of its unincorporated joint ventures, the accounts of which have been audited by the auditors of the respective Joint Ventures and relied upon by us. 3. The attached financial statements and other financial information include Company''s share of net of fixed assets, net current assets, expenses and incomes aggregating to Rs. 301.59 crore, Rs. 191.67 crore, Rs. 206.87 crore and Rs.175.33 crore respectively as at March 31, 2014 in respect of eighteen of its unincorporated joint ventures, the accounts of which have not been audited by the auditors of the respective Joint Ventures. The financial statements and other financial information have been incorporated based on un-audited financial statements prepared by the Management and relied upon by us. 4. The audited and the unaudited statements of the above unincorporated joint ventures are prepared to meet requirements of production sharing contracts and are special purpose statements and none of the statements audited as well as unaudited, are drawn up in the same format as presented by the Company. Management''s Responsibility for the Financial Statements 5. Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 (the Act) which as per the General Circular No.15/2013 dated 13.09.2013 issued by Ministry of Corporate Affairs continues to apply under Section 133 of the Companies Act, 2013. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Auditor''s Responsibility 6. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. 7. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. 8. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion 9. In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: a) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2014; b) In the case of the statement of Profit and Loss, of the profit for the year ended on that date;and c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date. Emphasis of Matter Paragraph 10. Without qualifying our report, we draw attention to the following Notes appearing in the Financial Statement: i. Note 16.2 - regarding uncertainty related to the outcome of appeal filed by the Company against the order of Hon''ble High Court and consequential payment of decreed amount of Rs.99.05 crore shown under Other Non-Current Assets and not treating the same as expense. ii. Note 31.7.2- regarding recognition of gain on foreign currency translation of Rs 238.96 crore. iii. Note 31.7.3 - regarding uncertainty due to non provision of the recoverable dues of Rs.94.47 crore from Suntera Nigeria 205 Ltd. shown under Short Term Loans and Advances in which the Company is having 25% interest in equity. iv. Note 31.12- regarding Use of Depreciation method on other Production Facilities being part of Producing Properties, in preference to the Depletion Method based on Unit of Production as recommended vide Guidance Note on Accounting for Oil & Gas Producing Activities-2013 issued by the Institute of Chartered Accountants of India. Report on Other Legal and Regulatory Requirements 11. As required by the Companies (Auditor''s Report) Order, 2003 (the Order), as amended, issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Act, and on the basis of our examination of the books and records of the company carried out in accordance with the generally accepted auditing practices in India and according to the information and explanations given to us, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order. 12. As required by Section 227(3) of the Act, we report that: a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit; b) In our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books; c) The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this report are in agreement with the books of account; d) In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement comply with the Accounting Standards referred to in sub- section (3C) of Section 211 of the Act; e) Disclosure in terms of clause (g) of sub-section (1) of Section 274 of the Act is not required for Government Companies as per Notification No.GSR 829(E) dated October 21, 2003 issued by the Department of Company Affairs. f) Since the Central Government has not issued any notification as to the rate at which the cess is to be paid under section 441A of the Act nor has it issued any Rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company. ANNEXURE TO THE AUDITORS'' REPORT (Referred to in paragraph 11 of our report to the members of Oil India Limited (''the company'') for the year ended 31st March 2014.) 1. (a) The Company has generally maintained proper records showing full particulars including quantitative details and situation of fixed assets. However, the records of the land are in the process of updating and reconciling with physical verification. (b) The fixed assets and joint venture assets have been physically verified by the Management in phased manner designed to cover all items over a period of five years, which is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies have been noticed on such verification. (c) None of the substantial part of fixed assets has been disposed off by the Company during the year. 2. (a) Stocks of Crude Oil and Liquefied Petroleum Gas (LPG) have been physically verified by the management during the year and stock of stores and spare parts (excluding stock in transit and/or under inspection with suppliers/contractors) have been physically verified by the management in phased manner. The frequency of verification is reasonable. (b) The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business. (c) The Company is maintaining proper records in respect of stocks of crude oil, LPG and stock of stores and spare parts. No material discrepancies have been noticed on verification between the physical assets and the book records. 3. (a) The Company has granted unsecured loans to two parties covered in the register maintained under section 301 of the Companies Act, 1956 (the Act). The amount outstanding at the year-end was Rs. 360.50 crores and the maximum amount outstanding at any time during the year was Rs. 381.00 crores. (b) The rate of interest and other terms and conditions of the loan granted is not prima facie prejudicial to the interest of the Company. (c) The repayment of principal and the payment of interest is not over due. (d) There is no overdue amount in respect of loans granted to the party listed in the register maintained under section 301 of the Act. (e) The Company has not taken any loans secured or unsecured, from companies firms or other parties covered in the register maintained under section 301 of the Act and consequently, the requirements of clause (iii)(f) and (iii)(g) of paragraph 4 of the Order, are not applicable. 4. There exists an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchases of inventory, fixed assets and with regard to the sale of goods and services. We have not observed any continuing failure to correct major weaknesses in internal control system of the Company. 5. (a) The particulars of contracts or arrangement that need to be entered into the register maintained under Section 301 of the Act have been so entered. (b) The transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Act and exceeding the value of Rs. 5 lakhs in respect of any party during the year have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time. 6. The Company has not accepted deposits from the public. Hence, the provisions of Sections 58A, 58AA or any other relevant provisions of the Act and the Rules framed there under are not applicable to the Company. 7. The Company has an internal audit system commensurate with the size and nature of its business. However, the coverage of the area and monitoring of the internal audit system need to be strengthened. 8. The Central Government of India has prescribed maintenance of cost records under Section 209(1)(d) of the Act for the production of crude oil, natural gas, LPG, and pipeline activities for transportation of crude oil. We have broadly reviewed the books of account relating to materials, labour and other items of cost maintained by the Company pursuant to the rules made by the Central Government for the maintenance of such cost records and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained. 9. (a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, income tax, sales tax, wealth tax, service tax, customs duty, excise duty, and other material statutory dues applicable to it. (b) No undisputed amounts payable in respect of income tax, sales tax, wealth tax, service tax, customs duty and excise duty were in arrears, as at 31.03.2014 for a period of more than six months from the date they became payable. (c) Details of disputed dues in respect of income tax, sales tax, wealth tax, service tax, customs duty and excise duty which have not been deposited on account of any dispute are given below:- Name of the Nature Period to which Amount Forum Statute of Dues the amount (Rs.in where relates Crores) Dispute is Financial year pending Assam Tax on 2004-05 to 702.02 High Court, Taxation (on land 2013-14 Guwahati. specified land) Act, 2004 Central Excise December 2008 14.27 CESTAT, Excise Act, Duty to December 2009 Kolkata 1944 January 2010 to 11.92 -do- December 2010 January 2011 to 17.47 -do- December 2011 January 2012 to 31.54 -do- December 2012 January 2013 to -do- June 2013 9.68 Service April 11 to Dec 11 19.8 -do- Tax January 12 to 9.31 -do- September 12 0.34 Comm.Central July''08 to Mar''09 Excise & S. Tax (Appeal) April 09 to Mar''10 0.40 -do- 10. The Company has no accumulated losses as at the end of the financial year and it has not incurred any cash losses during the financial year and in the immediately preceding financial year. 11. The Company has not defaulted in repayment of dues to any financial institution or bank. The Company has not issued any debentures. 12. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. 13. The Company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore the provisions of paragraph 4 (xiii) of the Order are not applicable to the Company. 14. The Company is not dealing or trading in shares, securities, debentures and other investments. Therefore, the provisions of Clause 4 (xiv) of the Order are not applicable to the Company. 15. The terms and conditions of the guarantees given by the Company for loans taken by its subsidiaries and others from bank or financial institutions are not prejudicial to the interest of the company. 16. Term loans raised by the Company were applied for the purpose for which the loans were obtained. 17. The Company has raised short term bridge loan with an intent to replace it by long term loan which has been used for long term investment. 18. The Company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act. 19. The Company has not issued any debentures during the year. 20. The Company has not raised any money by public issue during the year. 21. No fraud on or by the Company has been noticed or reported during the course of our audit. For SAHA GANGULI & ASSOCIATES For B.M. CHATRATH & CO. Chartered Accountants Chartered Accountants Firm Regn.No.302191E Firm Regn.No.301011E Sd/ Sd/ (S. K. Saha) (P. R. Paul) Partner Partner Membership No.051392 Membership No.051675 Place: Noida Date : 27.05.2014