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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, 14:43
214.50 5.50 (2.63%)
Volume
AVERAGE VOLUME
5-Day
194,921
10-Day
174,272
30-Day
110,951
213,622
  • Prev. Close

    209.00

  • Open Price

    210.00

  • Bid Price (Qty.)

    214.50 (88)

  • Offer Price (Qty.)

    214.85 (50)

NSE Live

Sep 22, 14:43
214.65 5.75 (2.75%)
Volume
AVERAGE VOLUME
5-Day
2,485,391
10-Day
2,245,690
30-Day
1,547,525
2,292,814
  • Prev. Close

    208.90

  • Open Price

    210.00

  • Bid Price (Qty.)

    214.60 (149)

  • Offer Price (Qty.)

    214.85 (169)

Annual Report

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

Auditor's Report

We have audited the accompanying standalone financial statements of OIL INDIA LIMITED (the Company), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and Significant Accounting Policies and Additional Notes. MANAGEMENT''S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (the Act) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. AUDITORS'' RESPONSIBILITY Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the standalone financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements. OPINION In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2016, and its profit and its cash flows for the year ended on that date. EMPHASIS OF MATTER We draw attention to the following matters in the Notes to the standalone financial statements: a) Note 3.3 to the financial statements which specifies about repayment and servicing of overseas borrowings from domestic resources based on management opinion. b) Note 32.12(b) to the financial statements which describes uncertainty regarding payment related to the demand for Royalty raised by Director of Geology and Mines, Assam for 2008-09 to 2013-14 amounting to Rs.7224.20 crore and further estimated liability of Rs.2525.35 crore upto 31st March 2016 considered as contingent liability. Our opinion is not modified in respect of these matters. OTHER MATTERS The attached financial statements include Company''s share of net fixed assets, net current assets, expenses and incomes aggregating to Rs. 530.15 crore, Rs. (-)70.21 crore, Rs. 237.63 crore and Rs. 0.51 crore respectively as at 31st March, 2016 in respect of thirteen of its unincorporated Joint Ventures, the accounts of which have been audited by the auditors of the respective Joint Ventures. The attached financial statements include Company''s share of net fixed assets, net current liabilities, expenses and incomes aggregating to Rs. 324.57 crore, Rs. 96.73 crore, Rs. 389.78 crore and Rs. 46.68 crore respectively as at 31st March, 2016 in respect of seventeen of its unincorporated Joint Ventures, the accounts of which have not been audited and have been incorporated based on financial statements prepared and certified by the Management. The audited and unaudited financial 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 and we did not audit the financial statements/financial information of seventeen unaudited Joint Ventures included as above. Our opinion is not modified in respect of these matters. REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS 1. With respect to the other matters to be included in the Auditor''s Report in terms of the directions of the Comptroller and Auditor-General of India (C&AG) under Section 143 (5) 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'' and Annexure ''B'', statement on the matters specified in the Directions and Sub-directions of C&AG respectively. 2. As required by the Companies (Auditor''s Report) Order, 2016 (the Order), issued by the Central Government of India in terms of sub-section (11) of section 143 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 ''C'', a statement on the matters specified in paragraphs 3 and 4 of the Order. 3. As required by Section 143 (3) of the Act, we report that: (a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit. (b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books. (c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account. (d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. (e) On the basis of the written representations received from the directors as on 31st March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act. (f) With respect to the adequacy of the internal financial control over financial reporting of the Company and the operating effectiveness of such controls, as required under Section 143 (3)(i) of the Act, refer to our separate report in Annexure D. (g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us: i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements Refer Note 32.15 I (i)(a) and 32.15 I (i)(b) to the standalone financial statements. ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses. iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company. ANNEXURE A TO THE INDEPENDENT AUDITORS'' REPORT Statement on the matters specified in the Directions of CAG as referred in Paragraph 1 of Report on Other Legal and Regulatory Requirements paragraph of our report of even date to the members of OIL INDIA LIMITED on the Standalone Financial Statements for the year ended 31st March 2016 No. Direction Reply 1 Whether the Company has clear title/ lease deeds The Company has a clear title/ lease deeds for for freehold and leasehold land respectively? If not freehold and leasehold land respectively except in please state the area of freehold and leasehold land respect of 15763.93 bighas of freehold land. for which title/ lease deeds are not available. Further 3821.29 bighas of freehold land are pending for Mutation. (refer note 11.2 to the financial statements). 2 Whether there are cases of waiver / write-off of debts During the year there are cases of Well write off of /loans / interest etc. if yes, the reasons thereof and Rs. 454.61 crore due to absence of prospect and the amount involved. unsuccessful drilling of the Wells. There is also a case of receivables written off of Rs. 0.91 crores due to non recovery of CST on sale of LPG. 3 Whether proper records are maintained for The Company has maintained proper records for inventories lying with third parties & assets received inventories lying with third parties. The Company as gift/ grant(s) from Govt. or any other authorities. has not received any assets as gift from Govt or any other authorities. ANNEXURE B TO THE INDEPENDENT AUDITORS'' REPORT Statement on the matters specified in the Additional Directions of C&AG as referred in Paragraph 1 of Report on Other Legal and Regulatory Requirements paragraph of our report of even date to the members of OIL INDIA LIMITED on the Standalone Financial Statements of the Company for the year ended 31st March 2016 No. Direction Reply The accounting treatment of income/ expenditure The accounting treatment of income/expenditure I and receivables/ liabilities arising from agreements/ and receivables/liabilities arising from contracts including JVs for exploration of Oil/Gas may agreements/contracts including JVs for be examined to ensure that they are strictly in exploration of Oil/Gas have been examined and conformity with the terms and conditions of the found that they are strictly in conformity with the terms and conditions of the respective Production respective Production Sharing Contract (or similar Sharing Contract (or similar arrangements arrangements including Joint Venture) including Joint Ventures) II It may be verified that the expenditure incurred before We have verified and found that the expenditure obtaining the right(s) to explore, develop and produce incurred before obtaining the right(s) to explore, oil and gas have been booked under pre-acquisition develop and produce oil and gas have been booked under pre- acquisition costs. We have also costs. It may also be verified that these costs are verified that these costs are expensed as and when expensed as and when incurred, and the practice is incurred, and the practice is done in a consistent done in a consistent manner in respect of all the units. manner in respect of all the units. Please also refer Note no. 1.3.1 of Significant Accounting Policies III It may be verified that the acquisition cost relating to We have verified and found that the acquisition cost projects under exploration or development are initially relating to projects under exploration or accounted for as capital work-in-progress and then development are initially accounted for as capital work-in- progress and then capitalised by capitalised by transferring to Producing Property transferring to Producing Property when a well is when a well is ready to commence commercial ready to commence commercial production. It is production. It may also be ensured that such costs are also verified that such costs are written-off in case written-off in case of abandonment/ relinquishment. of abandonment /relinquishment. Please also refer Note no. 1.3.4 of Significant Accounting Policies. IV It may be verified that the Company is having a clear Read with Note no. 11.2 of Financial Statements, title and maintaining proper records in respect of land we have verified and found that the Company is having a clear title except in respect of 15763.93 along with full disclosures with respect to cost bighas of freehold land. Further 3821.29 bighas of computation (historical or revalued cost) and freehold land are pending for Mutation. The ownership (freehold or leasehold land) Company is maintaining proper records in respect of land along with full disclosures with respect to cost computation (historical or revalued cost) and ownership (freehold or leasehold land). ANNEXURE ''C'' TO THE AUDITORS'' REPORT The Annexure C referred to in paragraph 2 of Report on Other Legal and Regulatory Requirements paragraph of our report of even date to the members of OIL INDIA LIMITED on the Standalone Financial Statements of the Company for the year ended 31st March, 2016. (i) (a) The Company has generally maintained proper records showing full particulars including quantitative details and situation of fixed assets; (b) As explained to us the fixed assets have been physically verified by the Management in phased manner designed to cover all items over a period of five years. No material discrepancies have been noticed on such verification; (c) As per information and explanations given to us, the title deeds of immovable properties are held in name of the Company except in respect of 15763.93 bighas of freehold land pending transfer of title deeds. Further 3821.29 bighas of freehold land are pending for Mutation. (ii) Inventories have been physically verified by the Management during the year. However, inventories of stores and spare parts (excluding stock in transit and/or under inspection with suppliers/contractors) have been physically verified by the Management in a phased manner. The frequency of verification is reasonable. No material discrepancies have been noticed on physical verification. (iii) The Company has granted unsecured loans to parties covered in the register maintained under section 189 of the Companies Act, 2013 (the Act). In respect of aforesaid loans: (a) The terms and conditions under which such loans were granted are not prejudicial to the Company''s interest; (b) The schedule of repayment of principal and interest has been stipulated and the repayments or receipts are as per stipulation; and (c) There is no amount which is overdue for more than ninety days. (iv) In respect of loans, investments, guarantees and security given or provided , provisions of Section 185 and 186 of the Companies Act, 2013 wherever applicable, have been complied with; (v) The Company has not accepted deposits from the public. Hence, the direction issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Rules framed thereunder are not applicable to the Company. As explained to us no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal in this regard; (vi) We have broadly reviewed the books of account maintained by the Company, pursuant to the rules made by the Central Government for the maintenance of the cost records under sub-section (1) of Section 148 of the Act 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 the records maintained as aforesaid. (vii) (a) The Company is regular in depositing undisputed statutory dues including provident fund, employees'' state insurance, income tax, sales tax, wealth tax, service tax, duty of customs , duty of excise, value added tax, cess and any other statutory dues as applicable to it with the appropriate authorities. According to the information and explanations given to us there were no outstanding statutory dues as on 31st of March, 2016 for a period of more than six months from the date they became payable except for the following: Name of the Statute Nature of Dues Period to which the (in Rs. Crores) amount relates (Financial year) Assam VAT Act, 2005 VAT on Transportation 2009-10 to 2015-16 39.04 (including of Crude Oil interest of Rs 14.18 crore) (b) Details of disputed dues in respect of income tax or sales tax or wealth tax or service tax or duty of customs or value added tax or cess and any other statutory dues which have not been deposited on account of any dispute are given below: Name of the Statute Nature of Dues Period to which the amount relates (Financial year) Central Excise Act, Demand for non 2011-12 to 2014-15 1944 payment of duty as oil cess, NCCD and education cess December''2008 to December''2009 January''2010 to December''2010 Central Excise Act, Excise Duty January''2011 to December'' 2011 1944 January''2012 to June''2012 July''2012 to December''2012 January''2013 to June''2013 April''2011 to December''2011 January''2012 to September''2012 Finance Act, 1994 Service Tax October''2012 to March''2013 July''2008 to March''2009 April''2009 to March''2010 Assam General CST and VAT April''2005 to March''2006 Sales Tax Act, 1993 Assam VAT Act, 2005 Assam VAT 2009-10 to 2012-13 Income Tax Act, 1961 Income Tax 2007-08 & 2008-09 Name of the Statute Amount Forum where (in Rs. Crores) Dispute is Pending Central Excise Act, 1944 20.57 CESTAT, New Delhi 14.27 12.01 Central Excise Act, 1944 17.47 CESTAT, 20.93 Kolkata 10.48 9.81 40.42 13.45 Finance Act, 1994 6.59 CESTAT, 0.30 Kolkata 0.40 Assam General Sales Tax Act, 1993 8.41 Assistant Commissioner of Taxes, Assam Assam VAT Act, 2005 1327.74 Commissioner of Taxes, Assam Income Tax Act, 1961 2.18 High Court, Rajasthan (viii) The Company has not defaulted in repayment of loans or borrowings to any financial institution, bank, Government or dues to debenture holders; (ix) In our opinion and according to information and explanations given to us, the Company has not raised any money by way of initial public offer or further public offer (including debt instruments) during the year. The term loans were applied for the purposes for which those were raised; (x) Based on the audit procedures performed and the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year; (xi) The Company has paid or provided for managerial remuneration in accordance with relevant approvals mandated by the provisions of Section 197 read with Schedule V to the Act; (xii) As the Company is not a Nidhi company, Nidhi Rules, 2014 are not applicable to it and accordingly the reporting under clause 3(xii) of the Order is not applicable; (xiii) The Company has entered into transactions with related parties in compliance with the provisions of Sections 177 and 178 of the Act. The details of such related party transactions have been disclosed in the financial statements as required under Accounting Standard 18- Related Party Disclosures, specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014; (xiv) The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly the reporting under clause 3(xiv) of the Order is not applicable; (xv) Based on our examination of books and accounts and as per information and explanations given to us, the Company has not entered into any non cash transactions with directors or persons connected with him. Therefore reporting under para 3 (xv) of the Order is not applicable; and Accordingly, (xvi) As per information and explanations given to us, the Company is not required to be registered under Section 45- IA of the Reserve Bank of India Act, 1934. Accordingly, reporting under para 3 (xvi) of the Order is not applicable. For A.K.SABAT & CO. For N.C. BANERJEE & CO. Chartered Accountants Chartered Accountants Firm Regn. No: 321012E Firm Regn. No: 302081E Sd/- Sd/- (CA A.K.SABAT) (CA B.K.BISWAS) Partner Partner Membership No.: 030310 Membership No.: 055623 Place : Noida Date : 27.05.2016