GSL Nova · Management Discussion & Analysis Report 18 ... Members are requested to bring their copy of the Annual Report at the meetingand produce the ... company , then your

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.


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


GSL Nova

(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


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.


GSL Nova

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.


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.


GSL Nova

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)


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


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


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



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


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


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




MayankaSunilKumarGupta




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


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


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


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


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


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


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.


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.


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.


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.


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


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


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


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;


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]


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.


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.





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.





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]


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





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





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.


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.


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


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


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.


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


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


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.


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


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


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


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


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


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)


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



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”


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


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


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 :-


1 ForeignTravellingExpenses Nil Nil

36. Earning in Foreign Exchange:


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]



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GSL Nova · Management Discussion & Analysis Report 18 ... Members are requested to bring their copy of the Annual Report at the meetingand produce the ... company , then your