Mar 31, 2023
We have audited the accompanying standalone financial statements of Petronet LNG Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 2023, the Statement of Profit and Loss (including other comprehensive income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as the "Standalone Financial Statement").
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2023, its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone financial statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
We draw your attention to note 15 to the standalone financial statement regarding that pursuant to the relevant provision under long term regasification contracts entered into, the Company has booked income towards "Use or Pay charges" of Rs. 848.92 crore and Rs. 415.91 crore in the financial year 2022-23 (for Calendar year 2022) and financial year 2021-22 (for Calendar year 2021) respectively on account of lower capacity utilization by its customers. The balance confirmation/payment against the same is yet to be received. The management is confident that the payment would be recovered in due course, being a contractual obligation.
Our opinion is not modified in respect of this matters.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report:
S No |
Key Audit Matter |
Auditor''s Response |
1 |
Impairment assessment of Kochi Plant The recoverable value of the Property Plant and Equipment''s capitalized under Kochi Plant of the Company are dependent on future demand from Kochi Plant. The determination of recoverable amount of Kochi Plant is based on the value-in use derived from future free net cash flow based on management assumptions of operations for the coming years and from the terminal period. Significant judgement is required by the Management in determining value-in-use, including discount rate to be applied and cash flow projections based on availability of pipeline, demand of gas etc. Accordingly, the impairment evaluation of Kochi Plant is considered to be a key audit matter. |
We assessed the Company''s process of assessing the impairment requirement for Kochi Plant by reviewing the Impairment Study Report, carried out by an outside consultant appointed by the Company, and for verification of the same, following tests were performed: ⢠Considered if the discounted cash flow models used to estimate the recoverable amount of Kochi Plant, based on "Value in Use" (VIU) were in consistent with Indian Accounting Standard; ⢠Considered whether the forecasted cash flows in the impairment model were reasonable and based upon supportable assumptions; ⢠Mathematical accuracy of the impairment model calculations: We found management''s assessment that there is no immediate case of impairment of Kochi Plant based on VIU is reasonable. |
2 |
Accuracy of recognition, measurement, presentation and disclosures of revenues and other related balances in view of requirement of Ind AS 115 "Revenue from Contracts with Customers" The application of Ind AS 115 requires certain key judgements including identification of distinct performance obligations and transaction price. |
We assessed the Company''s process of identification of distinct performance obligations and transaction price and for the same we selected sample contracts, covering all type of revenue recognized by the Company and performed the following procedures: ⢠Considered the terms of the contracts to determine the transaction price specially to ascertain if there is any financing component in the arrangement where advances have been received from the customers. ⢠Read, analysed and identified the distinct performance obligations in these contracts. ⢠Compared these performance obligations with that identified and recorded by the Company. ⢠Performed analytical procedures for reasonableness of revenues disclosed by type and service offerings. Based on the work performed, we found the management''s assessment of determination of transaction price and identification of distinct performance obligation is reasonable. |
S No |
Key Audit Matter |
Auditor''s Response |
|
3 |
Determination of credit impairment on trade receivables Trade Receivables are significant to the Company''s financial statements. The collectability of trade receivables is a key element of the company''s working capital management. Due to complexity of contractual terms, as well as ongoing negotiations with customers, significant judgements are required to estimate whether any impairment provision is required against such receivable and accordingly, it was determined to be a key audit matter in our audit. |
Our audit procedures in this area included the following: ⢠Assessed the design, implementation and operating effectiveness of internal controls over Management''s evaluation of the Expected Credit Loss on trade receivables including historical credit loss. ⢠Reviewed contractual terms subject to which revenue recognised and trade receivables outstanding in the books. |
|
⢠|
Reviewed documents related to ongoing negotiation with the customers. |
||
⢠|
Discussion with management over recoverability of outstanding dues. |
||
⢠|
Reviewing the adequacy and completeness of the disclosures in financial statement. |
||
We found management''s assessment of credit impairment is reasonable. |
|||
4 |
Contingent liabilities There are various pending cases against which demand has been raised by different authority. |
For legal and regulatory matters, our procedures included following: ⢠Assessing the processes and control over legal matters; |
|
⢠|
Reviewing the Group''s significant legal matters and other contractual claims; |
||
⢠|
Performing substantive procedures on the underlying calculations of potential liability; |
||
⢠|
Where relevant, reading external legal opinions obtained by management; |
||
⢠|
Where relevant, obtaining written confirmation from external legal counsels on the status of the cases |
||
⢠|
Reviewing the adequacy and completeness of the company''s disclosures. |
||
Based on the work performed, we found the disclosures made by the management in financial statements are sufficient. |
The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Board''s Report including Annexures to Board''s Report, Business Responsibility and Sustainability Report, Corporate Governance and Shareholder''s Information, but does not include the Standalone financial statements and our auditor''s report thereon. The other information in annual report is expected to be made available to us after the date of this auditor''s report.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtain prior to the date of this auditor''s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, the Management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
The comparative financial information of the Company for the year ended 31st March 2022 included in these standalone financial statements are based on the previously issued financial statements audited by the predecessor auditors (i.e. M/s T R Chadha & Co. LLP) whose report dated 11th May 2022 expressed an unmodified opinion on those audited financial statements for the year ended 31st March 2022.
Our opinion is not modified in respect of this matter.
1. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit of the aforesaid Standalone financial statement.
(b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid Standalone financial statement have been kept by the Company so far as it appears from our examination of those books.
(c) The balance sheet, the statement of profit and loss including other comprehensive income, the cash flow statement and the statement of changes in equity dealt with by this report are in agreement with the books of account and the records maintained for the purpose of preparation of Standalone financial statements.
(d) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.
(e) On the basis of written representations received from the directors as on 31st March, 2023 and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2023 from being appointed as a director in terms of Section 164(2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure A".
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements of section 197(16) of the Act, as amended, in our opinion and to the best of our information and according to the explanations given to us, the remuneration paid / provided by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
(h) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i) The Company has disclosed the impact, if any, of pending litigations on its financial position in its standalone financial statements - Refer Note No. 40 to the standalone financial statements;
ii) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses as at 31st March 2023.
iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv) (A) The management has represented to us that, to the best of its knowledge and belief, other than as disclosed in the notes to the accounts, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(B) The management has also represented to us, that, to the best of its knowledge and belief, other than as disclosed in the notes to the accounts, no funds have been received by the company from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
(C) Based on such audit procedures that we considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) contain any material misstatement.
v) The dividend declared or paid during the year by the company is in compliance with section 123 of The Companies Act 2013.
vi) Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 in respect of use of accounting software for maintaining books of accounts with requisite audit trail facility is applicable to the company w.e.f. April 1, 2023, and accordingly reporting under Rule 11(g) of the Companies (Audit and Accounts) Rules, 2014 is not applicable for the financial year ending 31st March 2023.
2. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order") issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the "Annexure B" a statement on the matters specified in the paragraphs 3(xxi) of the said Order.
For V. Sankar Aiyar & Co.
Chartered Accountants ICAI Firm Regn No. 109208W
(Ajay Gupta) Partner
Place : New Delhi Membership No. 090104
Date : 3rd May 2023 ICAI UDIN : 23090104BGXTMC6495
Mar 31, 2022
Opinion
We have audited the accompanying standalone financial statements of Petronet LNG Limited (the "Company"), which comprise the balance sheet as at March 31, 2022 and the statement of profit and loss (including Other Comprehensive Income), statement of changes in equity and statement of cash flows for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information prepared based on relevant records (hereinafter referred to as the "Standalone Financial Statement").
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (the "Act'') in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2022, and its total comprehensive income, its changes in equity and its cash flows for the year then ended.
Basis for opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s responsibilities for the audit of the standalone financial statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Emphasis of Matters
We draw your attention to note 15(ii) to the standalone financial statement regarding that pursuant to the relevant provision under long term regasification contracts entered into, the Company has booked income towards "Use or Pay charges" of Rs. 41,591Lacs in the financial year 2021-22 for Calendar year (CY) 2021 on account of lower capacity utilization by its customers. The balance confirmation/ payment against the same is yet to be received. The management is confident that the payment would be recovered in due course.
Our opinion is not modified in respect of this matter.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
S. No. |
Description of Key Audit Matter |
Audit Procedures Undertaken to address the Key Audit Matter & conclusions thereon |
1. |
Impairment testing of Kochi Plant The recoverable value of the Property Plant and Equipment''s capitalized under Kochi Plant of the Company are dependent on future demand from Kochi Plant. The determination of recoverable amount of Kochi Plant is based on the value-in use derived from future free net cash flow based on management assumptions of operations for the coming years and from the terminal period. Significant judgement is required by the Management in determining value-in-use, including discount rate to be applied and cash flow projections based on availability of pipeline, demand of gas etc. Accordingly, the impairment evaluation of Kochi Plant is considered to be a key audit matter. |
We assessed the Company''s process of assessing the impairment requirement for Kochi Plant by reviewing the Impairment Study Report, carried out by an outside consultant appointed by the Company, and for verification of the same, following tests were performed: ⢠Considered if the discounted cash flow models used to estimate the recoverable amount of Kochi Plant, based on "Value in Use" (VIU) were in consistent with Indian Accounting Standard. ⢠Considered whether the forecasted cash flows in the impairment model were reasonable and based upon supportable assumptions ⢠Performed tests of the mathematical accuracy of the impairment model calculations. We found management''s assessment that there is no immediate case of impairment of Kochi Plant based on VIU is reasonable. |
S. No. |
Description of Key Audit Matter |
Audit Procedures Undertaken to address the Key Audit Matter & conclusions thereon |
2 |
Accuracy of recognition, measurement, presentation and disclosures of revenues and other related balances in view of requirement of Ind AS 115 "Revenue from Contracts with Customers" The application of Ind AS 115 requires certain key judgements including identification of distinct performance obligations and transaction price. |
We assessed the Company''s process of identification of distinct performance obligations and transaction price and for the same we selected sample contracts, covering all type of revenue recognized by the Company and performed the following procedures: ⢠Considered the terms of the contracts to determine the transaction price specially to ascertain if there is any financing component in the arrangement where advances have been received from the customers. ⢠Read, analysed and identified the distinct performance obligations in these contracts. ⢠Compared these performance obligations with that identified and recorded by the Company. ⢠Performed analytical procedures for reasonableness of revenues disclosed by type and service offerings. Based on the work performed, we found the management''s assessment of determination of transaction price and identification of distinct performance obligation is reasonable. |
3 |
Determination of credit impairment on trade receivables Trade Receivables are significant to the Company''s financial statements. The Collectability of trade receivables is a key element of the company''s working capital management. Due to complexity of contractual terms, as well as ongoing negotiations with customers, significant judgements are required to estimate whether any impairment provision is required against such receivable and accordingly, it was determined to be a key audit matter in our audit. |
Our audit procedures in this area included the following: ⢠Assessed the design, implementation and operating effectiveness of internal controls over Management''s evaluation of the Expected Credit Loss on trade receivables including historical credit loss. ⢠Reviewed contractual terms subject to which revenue recognised and trade receivables outstanding in the books. ⢠Reviewed documents related to ongoing negotiation with the customers. ⢠Discussion with management over recoverability of outstanding dues. ⢠Reviewing the adequacy and completeness of the disclosures in financial statement. |
4 |
Contingent liabilities; There are various pending cases against which demand has been raised by different authority. |
For legal and regulatory matters, our procedures included following: ⢠Assessing the processes and control over legal matters; ⢠Reviewing the Group''s significant legal matters and other contractual claims; ⢠Performing substantive procedures on the underlying calculations of potential liability; ⢠Where relevant, reading external legal opinions obtained by management; ⢠Where relevant, obtaining written confirmation from external legal counsels on the status of the cases ⢠Reviewing the adequacy and completeness of the company''s disclosures. Based on the work performed, we found the disclosures made by the management in financial statements are sufficient. |
The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Company''s annual report (mainly Director''s Report, Corporate Governance Report, Business Responsibility Report and Management Discussion and Analysis of annual report) but does not include the standalone financial statements and our auditor''s report thereon. The other information in annual report is expected to be made available to us after the date of this auditor''s report.
Our opinion on the standalone financial statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we have obtained prior to the date of this auditor''s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
When we read the information included in Annual Report, if we conclude that there is material misstatement therein, we are required to communicate the matter to those charged with the governance and other appropriate action as may be required.
Responsibilities of management and those charged with governance for the standalone financial statements
The Company''s Board of Directors is responsible for the preparation and presentation of these standalone financial statements that give a true and fair view of the Standalone financial position, Standalone financial performance, Standalone cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of standalone financial statement by the directors of the Company, as aforesaid.
In preparing the standalone financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, mailers related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. The Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expression our opinion on whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosures about the matters or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order") issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the "Annexure A", a statement on the matters specified in paragraphs 3 and 4 of the Order
2. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit of the aforesaid Standalone financial statement.
(b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid Standalone financial statement have been kept so far as it appears from our examination of those books.
(c) The Standalone Balance Sheet, the Standalone Statement of Profit and Loss (including Other Comprehensive income), the Standalone Statement of Changes in Equity and the Standalone Cash Flow Statement dealt with by this report are in agreement with the books of account and the records maintained for the purpose of preparation of Standalone financial statements.
(d) In our opinion, the aforesaid Standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the directors as on 31st March, 2022 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2022 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls refer to our separate report in Annexure B.
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
a. The Company has disclosed the impact of pending litigations on its financial position in the standalone financial statement (Refer Note 41B to the standalone Ind AS financial statements).
b. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses on. Refer Note 41 A (b) to the financial statements
c. There has been no delay in transferring the amounts, required to be transferred to the Investor Education and Protection Fund by the Company.
d. (i) The Management has represented that, to the best of it''s knowledge and belief, no funds (which are material
either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons / entities, including foreign entities (''Intermediaries''), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(ii) The Management has represented that, to the best of it''s knowledge and belief, , no funds (which are material either individually or in the aggregate) have been received by the Company from any persons / entities, including foreign entities ("Funding Parties"), that the company shall directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(iii) Based on the audit procedures which we have considered reasonable and appropriate in the circumstances and according to the information and explanations provided to us by the Management in this regard, nothing has come to our notice that has caused us to believe that the representations made by the Management under subclause (i) and (ii) above contain any material misstatement.
e. The dividend declared or paid by the Company during the year is in accordance with Section 123 of the Companies Act, 2013.
3. With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements of section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us by the Company, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
Chartered Accountants
Firm Regn No. 006711N / N500028
(Partner)
M. No. 0502955
Place: New Delhi
Date: 11th May 2022
UDIN- 22502955AJBXKO1637
Mar 31, 2021
We have audited the accompanying standalone financial statements of Petronet LNG Limited (the âCompanyâ), which comprise the balance sheet as at March 31, 2021 and the statement of profit and loss (including Other Comprehensive Income), statement of changes in equity and statement of cash flows for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information prepared based on relevant records (hereinafter referred to as the âStandalone Financial Statementâ).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (the âActâ) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31,2021, and its total comprehensive income, its changes in equity and its cash flows for the year then ended.
Basis for opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditorâs responsibilities for the audit of the standalone financial statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
S. No. |
Description of Key Audit Matter |
Audit Procedures Undertaken to address the Key Audit Matter & conclusions thereon |
1. |
Impairment testing of Kochi Plant The recoverable value of the Property Plant and Equipmentâs capitalized under Kochi Plant of the Company are dependent on future demand from Kochi Plant. The determination of recoverable amount of Kochi Plant is based on the value-in use derived from future free net cash flow based on management assumptions of operations for the coming years and from the terminal period. Significant judgement is required by the Management in determining value-in-use, including discount rate to be applied and cash flow projections based on availability of pipeline, demand of gas etc. Accordingly, the impairment evaluation of Kochi Plant is considered to be a key audit matter. |
We assessed the Companyâs process of assessing the impairment requirement for Kochi Plant by reviewing the Impairment Study Report, carried out by an outside consultant appointed by the Company, and for verification of the same, following tests were performed:: ⢠Considered if the discounted cash flow models used to estimate the recoverable amount of Kochi Plant, based on âValue in Useâ (VIU) were in consistent with Indian Accounting Standard. ⢠Considered whether the forecasted cash flows in the impairment model were reasonable and based upon supportable assumptions ⢠Performed tests of the mathematical accuracy of the impairment model calculations. We found managementâs assessment that there is no immediate case of impairment of Kochi Plant based on VIU is reasonable. |
S. No. |
Description of Key Audit Matter |
Audit Procedures Undertaken to address the Key Audit Matter & conclusions thereon |
2. |
Accuracy of recognition, measurement, presentation and disclosures of revenues and other related balances in view of requirement of Ind AS 115 âRevenue from Contracts with Customersâ The application of Ind AS 115 requires certain key judgements including identification of distinct performance obligations and transaction price |
We assessed the Companyâs process of identification of distinct performance obligations and transaction price and for the same we selected sample contracts, covering all type of revenue recognized by the Company and performed the following procedures: ⢠Considered the terms of the contracts to determine the transaction price specially to ascertain if there is any financing component in the arrangement where advances have been received from the customers. ⢠Read, analysed and identified the distinct performance obligations in these contracts. ⢠Compared these performance obligations with that identified and recorded by the Company. ⢠Performed analytical procedures for reasonableness of revenues disclosed by type and service offerings.. Based on the work performed, we found the managementâs assessment of determination of transaction price and identification of distinct performance obligation is reasonable |
3. |
Determination of credit impairment on trade receivables Trade Receivables are significant to the Companyâs financial statements. The Collectability of trade receivables is a key element of the companyâs working capital management. Due to complexity of contractual terms, as well as ongoing negotiations with customers, significant judgements are required to estimate whether any impairment provision is required against such receivable and accordingly, it was determined to be a key audit matter in our audit. |
Our audit procedures in this area included the following: ⢠Assessed the design, implementation and operating effectiveness of internal controls over Managementâs evaluation of the Expected Credit Loss on trade receivables including historical credit loss. ⢠Reviewed contractual terms subject to which revenue recognised and trade receivables outstanding in the books. ⢠Reviewed documents related to ongoing negotiation with the customers. ⢠Discussion with management over recoverability of outstanding dues ⢠Reviewing the adequacy and completeness of the disclosures in financial statement. |
4. |
Contingent liabilities; There are various pending cases against which demand has been raised by different authority. |
For legal and regulatory matters, our procedures included following: ⢠â¢Assessing the processes and control over legal matters; ⢠Reviewing the Groupâs significant legal matters and other contractual claims; ⢠Performing substantive procedures on the underlying calculations of potential liability; ⢠Where relevant, reading external legal opinions obtained by management; ⢠Where relevant, obtaining written confirmation from external legal counsels on the status of the cases ⢠Reviewing the adequacy and completeness of the companyâs disclosures. Based on the work performed, we found the disclosures made by the management in note 38(B) of the financial statements are sufficient. |
Other Information
The Companyâs Board of Directors is responsible for the other information. The other information comprises the information included in the Companyâs annual report (mainly Directorâs Report, Corporate Governance Report, Business Responsibility Report and Management Discussion and Analysis of annual report) but does not include the standalone financial statements and our auditorâs report thereon. The other information in annual report except Corporate Governance Report i.e. Directors report, Business Responsibility report and Management Discussion and Analysis of Annual report is expected to be made available to us after the date of this auditorsâ report.
Our opinion on the standalone financial statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we have obtained prior to the date of this auditorâs report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
When we read the information included in, Management Discussion and Analysis, Directorsâ Report, and Business Responsibility Report and Other Information in Annual Report, if we conclude that there is material misstatement therein, we are required to communicate the matter to those charged with the governance and other appropriate action as may be required.
Responsibilities of management and those charged with governance for the standalone financial statements
The Companyâs Board of Directors is responsible for the preparation and presentation of these standalone financial statements that give a true and fair view of the Standalone financial position, Standalone financial performance, Standalone cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of standalone financial statement by the directors of the Company, as aforesaid.
In preparing the standalone financial statements, management is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, mailers related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. The Board of Directors are also responsible for overseeing the Companyâs financial reporting process.
Auditorâs Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorâs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expression our opinion on whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of managementâs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorâs report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditorâs report unless law or regulation precludes public disclosures about the matters or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the âAnnexure Aâ, a statement on the matters specified in paragraphs 3 and 4 of the Order
2. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit of the aforesaid Standalone financial statement.
(b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid Standalone financial statement have been kept so far as it appears from our examination of those books.
(c) The Standalone Balance Sheet, the Standalone Statement of Profit and Loss (including Other Comprehensive income), the Standalone Statement of Changes in Equity and the Standalone Cash Flow Statement dealt with by this report are in agreement with the books of account and the records maintained for the purpose of preparation of Standalone financial statements.
(d) In our opinion, the aforesaid Standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the directors as on 31st March, 2021 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2021 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls refer to our separate report in Annexure B.
(g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
a. The Company has disclosed the impact of pending litigations on its financial position in the standalone financial statement (Refer Note 38B to the standalone Ind AS financial statements).
b. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses on. Refer Note 38 A (b) to the financial statements
c. There has been no delay in transferring the amounts, required to be transferred to the Investor Education and Protection Fund by the Company.
3. With respect to the other matters to be included in the Auditorâs Report in accordance with the requirements of section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us by the Company, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
For T.R. Chadha & Co LLP
Chartered Accountants
(Firm Registration No. 006711N/N500028
Hitesh Garg
(Partner)
Membership No. 502955 UDIN- 21502955AAAADI6744
Date: 8th June 2021 Place: New Delhi
Mar 31, 2019
INDEPENDENT AUDITOR''S REPORT
To the Members of Petronet LNG Limited
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying Standalone Financial Statements of Petronet LNG Limited (the "Company"), which comprise the balance sheet as at March 31, 2019 and the statement of profit and loss (including Other Comprehensive Income), statement of changes in equity and statement of cash flows for the year then ended, and notes to the Standalone Financial Statements, including a summary of significant accounting policies and other explanatory information prepared based on relevant records (hereinafter referred to as the "Standalone Financial Statements").
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Companies Act, 2013 (the ''Act'') in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2019, and its total comprehensive income, its changes in equity and its cash flows for the year then ended.
Basis for opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s responsibilities for the audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the Standalone Financial Statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Standalone Financial Statements of the current period. These matters were addressed in the context of our audit of the Standalone Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
S. No. |
Description of Key Audit Matter |
Audit Procedures Undertaken to address the Key Audit Matter & conclusions thereon |
1. |
Impairment testing of Kochi Plant The recoverable value of the property plant and Equipment''s capitalized under Kochi plant of the Company are dependent on the operation of Kochi-Mangalore-Bangalore pipeline. The determination of recoverable amount for Kochi Plant is based on the value-in use derived from future free net cash flow based on budgets and the strategy for the coming years and free net cash flows from the terminal period. Significant judgement is required by the Management in determining value-in-use, including discount rate to be applied and cash flow projections based on availability of pipeline, demand of gas etc. Accordingly, the impairment evaluation of Kochi plant is considered to be a key audit matter. |
We assessed the Company''s process of assessing the impairment requirement for Kochi plant by reviewing the calculation of value-in use (VIU) of Kochi plant and for verification of the same, following tests were performed: ⢠Considered if the discounted cash flow models used to estimate the recoverable amount of Kochi plant based on VIU were in consistent with Indian Accounting Standard. ⢠Considered whether the forecasted cash flows in the impairment model were reasonable. ⢠Performed tests of the mathematical accuracy of the impairment model calculations. We found management''s assessment that there is no immediate case of impairment of Kochi plant based on value-in use is reasonable. |
2. |
Accuracy of recognition, measurement, presentation and disclosures of revenues and other related balances in view of adoption of Ind AS 115 "Revenue from Contracts with Customers" The application of the new revenue accounting standard requires certain key judgements including relating to identification of distinct performance obligations, financing component in case of advances received from customers and transaction price. |
We assessed the Company''s process to identify the impact of adoption of the new revenue accounting standard. We selected a sample of contracts, covering all nature of revenue recognized by the Company and performed the following procedures: ⢠Considered the terms of the contracts to determine the transaction price and ascertain if there is any financing component where advances have been received from the customers. ⢠Read, analysed and identified the distinct performance obligations in these contracts. ⢠Compared these performance obligations with that identified and recorded by the Company. ⢠Performed analytical procedures for reasonableness of revenues disclosed by type and service offerings. Based on the work performed, we found the management''s assessment of determination of transaction price and identification of distinct performance obligation is reasonable. |
3. |
Contingent liabilities; There are various pending cases against which demands have been raised by different authority/parties. |
For legal and regulatory matters our procedures included the following: ⢠Assessing the processes and control over legal matters; ⢠Reviewing the company''s significant legal matters and other contractual claims; ⢠Performing substantive procedures on the underlying calculations of potential liability; ⢠Where relevant, reading external legal opinions obtained by management; ⢠Where relevant, obtaining written confirmation from external legal counsels on the status of the cases ⢠Reviewing the adequacy and completeness of the company''s disclosures. Based on the work performed, we found the disclosures made by the management in note 36B of the Standalone Financial Statements are sufficient. |
Other Information
The Company''s Board of Directors is responsible for the other information. The other information comprises the Corporate Governance Report, but does not include the Standalone Financial Statements and our auditor''s report thereon, which we obtained prior to the date of this audit report, and the information included in, Management Discussion and Analysis, Directors'' Report, and Business Responsibility Report and Other Information in Annual Report, which is expected to be made available to us after that date.
Our opinion on the Standalone Financial Statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon.
In connection with our audit of the Standalone Financial Statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Standalone Financial Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we have obtained prior to the date of this auditor''s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
When we read the information included in, Management Discussion and Analysis, Directors'' Report, and Business Responsibility Report and Other Information in Annual Report, if we conclude that there is material misstatement therein, we are required to communicate the matter to those charged with the governance and other appropriate action as may be required.
Responsibilities of management and those charged with governance for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the preparation and presentation of these Standalone Financial Statements that give a true and fair view of the Standalone financial position, Standalone financial performance, Standalone cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of Standalone Financial Statements by the directors of the Company, as aforesaid.
In preparing the Standalone Financial Statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, mailers related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. The Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Standalone Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expression our opinion on whether the company has adequate internal financial controls with reference to Financial Statements in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the Standalone Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the Standalone Financial Statements, including the disclosures, and whether the Standalone Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Standalone Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosures about the matters or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of subsection (11) of Section 143 of the Act, we give in the ''Annexure A'' a statement on the matters specified in paragraphs 3 and 4 of the Order
1. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit of the aforesaid Standalone Financial Statements.
(b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid Standalone Financial Statements have been kept so far as it appears from our examination of those books.
(c) The Standalone Balance Sheet, the Standalone Statement of Profit and Loss (including Other Comprehensive income), the Standalone Statement of Changes in Equity and the Standalone Cash Flow Statement dealt with by this report are in agreement with the books of account and the records maintained for the purpose of preparation of Standalone Financial Statements.
(d) In our opinion, the aforesaid Standalone Financial Statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the directors as on 31st March, 2019 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2019 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls refer to our separate report in Annexure B.
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements of section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us by the Company, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
(h) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
a. The Company has disclosed the impact of pending litigations on its financial position in the Standalone Financial Statements (Refer Note 36B to the Standalone Ind AS Financial Statements).
b. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses on. Refer Note 36 A (b) to the Financial Statements
c. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
"Annexure A" referred to in our report of even date
1. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of two years. In accordance with this programme, fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, the periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
2. The inventory has been physically verified by the management at reasonable intervals. No material discrepancies were noticed on such physical verification.
3. The Company has not granted any loans, secured or unsecured, to companies, firm, Limited Liability Partnerships or other parties in the register maintained under section 189 of the Companies Act, 2013. Therefore, the provisions of clause 3(iii) (a), (b) and (c) of the Companies (Auditors Report) Order, 2016 are not applicable.
4. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
5. The Company has not accepted any deposits from the public within the provisions of Sections 73 to 76 or any other relevant provisions and the rules framed thereunder. Accordingly, the provisions of Clause 3 (v) of the Order are not applicable to the Company.
6. We have broadly reviewed the books of accounts maintained by the Company pursuant to Rules made by the Central Government for the maintenance of cost records under Section 148(1) of the Companies Act, 2013 and are of the opinion that prima facie, the prescribed accounts and records have been maintained.
7 (a) The Company is generally regular in depositing with appropriate authorities, undisputed statutory dues including Provident Fund, Income Tax, Sales Tax, Service Tax, Custom Duty, Value Added Tax, Cess, Goods and Service Tax and other material statutory dues applicable to it. There were no arrears of undisputed statutory dues as at 31st March 2019, which were outstanding for a period of more than six months from the date they became payable. We are informed that there is no liability towards Employees State Insurance and Excise Duty for the year under audit.
(b) According to the information and explanations given to us and as per the records of the Company, the dues of service tax, custom duty and income tax which have not been deposited/ deposited under protest with the appropriate authorities on account of any dispute are given below:
Amount in Rs. Lac
Name of the Statute |
Nature of the dues |
Disputed Amount |
Deposited under Protest |
Not deposited |
Period to which the amount relates |
Forum where dispute is pending |
Finance Act, 1994 |
Service Tax & Interest |
4,005 |
- |
4,005 |
FY 2008-09 to FY 2009-10 |
Hon''ble Supreme Court of India |
Service Tax, Interest & Penalty |
5,295 |
5,295 |
- |
FY 2009-10 to FY 2016-17 |
CESTAT, Delhi |
|
Service Tax & Interest |
754 |
- |
754 |
FY 2006-07 to FY 2010-11 |
CESTAT, Delhi |
|
Service Tax & Interest |
57 |
- |
57 |
FY 2014- 15 |
Principal Commissioner, Service Tax, Delhi |
|
Service Tax & Interest |
19 |
- |
19 |
FY 2015-16 |
Assistant Commissioner, Service Tax, Delhi |
|
Service Tax |
774 |
774 |
- |
FY 2008-10 |
Assistant Commissioner, Delhi |
|
Service Tax |
753 |
753 |
- |
FY 2008-11 |
Assistant Commissioner, Delhi |
|
Service Tax |
125 |
125 |
- |
FY 2013-16 |
Assistant Commissioner, Delhi |
Amount in Rs. Lac
Name of the Statute |
Nature of the dues |
Disputed Amount |
Deposited under Protest |
Not deposited |
Period to which the amount relates |
Forum where dispute is pending |
Custom Act, 1962 |
Custom Duty & Interest |
346 |
- |
346 |
FY 2004-07 |
Hon''ble High Court, Gujarat |
Custom Duty & Interest |
112 |
- |
112 |
FY 2009-10 |
Hon''ble High Court, Gujarat |
|
Custom Duty & Interest |
284 |
- |
284 |
FY 2005-08 |
Hon''ble High Court, Gujarat |
|
Custom Duty |
959 |
959 |
- |
FY 2012-13 |
Hon''ble High Court, Gujarat |
|
Income Tax Act, 1961 |
Income Tax and Interest |
70 |
- |
70 |
FY 2007-08 |
ITAT, Delhi |
Income Tax and Interest |
7,237 |
- |
7,237 |
FY 2008-09 to FY 2010-11 |
ITAT, Delhi |
|
Income Tax and Interest |
394 |
- |
394 |
FY 2012-13 |
ITAT, Delhi |
|
Income Tax and Interest |
744 |
- |
744 |
FY 2011-12 |
ITAT, Delhi |
|
Income Tax Penalty |
148 |
- |
148 |
FY 2011-12 |
CIT(A), Delhi |
|
Income Tax Penalty |
78 |
- |
78 |
FY 2012-13 |
CIT(A), Delhi |
|
Income Tax and Interest |
107 |
- |
107 |
FY 2013-14 |
ITAT, Delhi |
|
Income Tax and Interest |
10 |
- |
10 |
FY 2014-15 |
ITAT, Delhi |
|
Income Tax and Interest |
10 |
- |
10 |
FY 2015-16 |
CIT(A), Delhi |
8. The Company has not defaulted in the repayment of dues to financial institutions, banks, Government or debenture holders.
9. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3 (ix) of the Order is not applicable.
10. Based upon the audit procedures performed and information and explanations given by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit.
11. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
12. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
13. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with Sections 177 and 188 of the Companies Act 2013 where applicable and details of such transactions have been disclosed in the Financial Statements as required by the applicable Accounting Standards.
14. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
15. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
16. In our opinion and according to the information and explanation given to us, the company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
For T R Chadha & Co LLP |
Chartered Accountants |
Firm Registration No.: 006711N/N500028 |
Hitesh Garg |
Partner |
Membership No: 502955 |
Place: New Delhi |
Date: 15th May, 2019 |
"Annexure B" as referred to in paragraph 1(f) of our report of even date
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls with reference to Ind AS Financial Statements of Petronet LNG Limited ("the Company") as of 31 March 2019 in conjunction with our audit of the Standalone Ind AS Financial Statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls with reference to Ind AS Financial Statements based on the internal controls over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by The Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls with reference to Ind AS Financial Statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to Financial Statements was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial control system with reference to Ind AS Financial Statements and their operating effectiveness. Our audit of internal financial control with reference to Ind AS Financial Statements included obtaining an understanding of internal financial control with reference to Ind AS Financial Statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgement, including the assessment of the risks of material misstatement of the Financial Statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system with reference to Ind AS Financial Statements.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control with reference to Ind AS Financial Statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Financial Statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control with reference to Ind AS Financial Statements includes those policies and procedures that:
a) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
b) provide reasonable assurance that transactions are recorded as necessary to permit preparation of Financial Statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
c) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the Financial Statements.
Inherent Limitations of Internal Financial Controls with reference to Financial Statements
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to Ind AS Financial Statements to future periods are subject to the risk that the internal financial control with reference to Ind AS Financial Statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system with reference to Ind AS Financial Statements and such internal financial controls with respect to Financial Statements were operating effectively as at 31 March 2019, based on the internal controls over financial reporting criteria established by the Company considering the essential components of internal controls stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the ICAI.
For T R Chadha & Co LLP |
Chartered Accountants |
Firm Regn No. 006711N/N500028 |
Hitesh Garg |
(Partner) |
M.No. 0502955 |
Date: 15th May 2019 |
Place: New Delhi |
Mar 31, 2018
1. Report on the Standalone Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Petronet LNG Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2018, the Statement of Profit and Loss (including Other Comprehensive income),the Cash Flow Statement and the Statement of Change in Equity for the year then ended and a summary of the significant accounting policies and other explanatory information (herein after referred as âstandalone Ind AS financial statementsâ).
2. Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standaloneInd AS financial statements that give a true and fair view of the state of affairs(financial position), profit or loss (financial performance including other comprehensive income), cash flows and change in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards(Ind AS)prescribed under Section 133 of the Act, read with relevant rules issued thereunder.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls,that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
3. Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We have conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financialstatements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standaloneInd AS financial statements.
4. Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the state of affairs (financial position) of the Company as at 31st March, 2018, and its profit (financial performance including other comprehensive income), its cash flows and change in equity for the year ended on that date.
5. Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of subsection (11) of Section 143 of the Act, we give in the âAnnexure Aââ a statement on the matters specified in paragraphs 3 and 4 of the Order.
As required by Section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c. The Balance Sheet, Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement and the Statement of Change in Equity dealt with by this Report are in agreement with the books of account;
d. In our opinion, the aforesaid standalone Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Actread with relevant rule issued thereunder;
e. On the basis of written representations received from the directors as on 31stMarch, 2018, taken on record by the Board of Directors, none of the directors is disqualified as on 31stMarch, 2018, from being appointed as a director in terms of Section 164 (2) of the Act.
f. With respect to the adequacy of the internal financial controls with reference to Ind AS financial statements of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ; Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
g. With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 37B to the standalone Ind ASfinancial statements;
ii. The Company did not have any long-term contracts including derivative contracts, for which there were any material foreseeable losses - Refer Note 37 A (b)to the financial statements;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company and
âAnnexure Aâ referred to in paragraph 5 of our report of even date
1. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of two years. In accordance with this programme, fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, the periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
2. The inventory has been physically verified by the management at reasonable intervals. No material discrepancies were noticed on such physical verification.
3. The Company has not granted any loans, secured or unsecured, to companies, firm, Limited Liability Partnerships or other parties in the register maintained under section 189 of the Companies Act, 2013. Therefore, the provisions of clause 3(iii) (a), (b) and (c) of the Companies (Auditors Report) Order, 2016 are not applicable.
4. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
5. The Company has not accepted any deposits from the public within the provisions of Sections 73 to 76 or any other relevant provisions and the Rules framed thereunder. Accordingly, the provisions of Clause 3 (v) of the Order are not applicable to the Company.
6. We have broadly reviewed the books of accounts maintained by the Company pursuant to Rules made by the Central Government for the maintenance of cost records under Section 148(1) of the Companies Act, 2013 and are of the opinion that prima facie, the prescribed accounts and records have been maintained.
7. (a) The Company is generally regular in depositing with appropriate authorities, undisputed statutory dues including Provident Fund, Income Tax, Sales Tax, Service Tax, Custom Duty, Value Added Tax, Cess, Goods and Service Tax and other material statutory dues applicable to it. There were no arrears of undisputed statutory dues as at 31st March 2018, which were outstanding for a period of more than six months from the date they became payable. We are informed that there is no liability towards Employees State Insurance and Excise Duty for the year under audit.
(b) According to the information and explanations given to us and as per the records of the Company, the dues of service tax, custom duty and income tax which have not been deposited/deposited under protest with the appropriate authorities on account of any dispute are given below:
8. The Company has not defaulted in the repayment of dues to financial institutions, banks, Government or debenture holders.
9. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3 (ix) of the Order is not applicable.
10. Based upon the audit procedures performed and information and explanations given by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit.
11. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
12. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
13. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with Sections 177 and 188 of the Companies Act 2013 where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable Accounting Standards.
S. No. |
Name of the Statute |
Nature of the Dues |
Not Deposited (Rs. in Lacs) |
Deposited (Rs. in Lacs) |
Period to which the amount relates |
Forum where dispute is pending |
1. |
Finance Act, 1994 |
Service Tax and Interest |
4,005 |
FY 2008-09 to 2009-2010 |
Honâble Supreme Court of India |
|
2. |
Finance Act, 1994 |
Service Tax, Interest and penalty |
2,567 |
FY 2009-10 to FY 2014-15 |
CESTAT, Delhi |
|
3. |
Finance Act, 1994 |
Service Tax, Interest and penalty |
689 |
FY 2014-15 |
CESTAT, Delhi |
|
4 |
Finance Act, 1994 |
Service Tax and Interest |
754 |
FY 2006-07 to 2010-11 |
CESTAT, Delhi |
|
5 |
Finance Act, 1994 |
Service Tax and Interest |
57 |
FY 2014-2015 |
Principal Commissioner, Service Tax, Delhi |
|
6 |
Finance Act, 1994 |
Service Tax and Interest |
19 |
FY 2015-2016 |
Assistant Commissioner, Service Tax, Delhi |
|
7. |
Finance Act, 1994 |
Service Tax |
774 |
FY 2008-10 |
Assistant Commissioner, Delhi |
|
8. |
Finance Act, 1994 |
Service Tax |
753 |
FY 2008-11 |
Assistant Commissioner, Delhi |
|
9 |
Finance Act, 1994 |
Service Tax |
125 |
FY 2013-16 |
Assistant Commissioner, Delhi |
|
10. |
Custom Act 1962 |
Custom Duty and Interest |
346 |
FY 2004-07 |
Honâble High Court, Gujarat |
|
11. |
Custom Act 1962 |
Custom Duty and Interest |
112 |
FY 2009-10 |
Honâble High Court, Gujarat |
|
12. |
Custom Act 1962 |
Custom Duty and Interest |
284 |
FY 2005-08 |
Honâble High Court, Gujarat |
|
13. |
Custom Act, 1962 |
Custom Duty |
959 |
FY 2012-13 |
CESTAT, Ahmedabad |
|
14. |
Income Tax Act, 1961 |
Income Tax and Interest |
70 |
FY 2007-08 |
ITAT, Delhi |
|
15 |
Income Tax Act, 1961 |
Income Tax and Interest |
7,237 |
FY 2008-09 to 2010-11 |
ITAT, Delhi |
|
16. |
Income Tax Act, 1961 |
Income Tax and Interest |
394 |
FY 2012-13 |
ITAT, Delhi |
|
17. |
Income Tax Act, 1961 |
Income Tax and Interest |
744 |
FY 2011-12 |
ITAT, Delhi |
|
Total |
14,022 |
5,867 |
14. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
15. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
16. In our opinion and according to the information and explanation given to us, the company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
For T R Chadha & Co LLP
Chartered Accountants
Firm Regn No. 006711N / N500028
Neena Goel
(Partner)
M.N.057986
Date: 21st May 2018
Place: New Delhi
Mar 31, 2017
1. Report on the Standalone Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Petronet LNG Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2017, the Statement of Profit and Loss (including Other Comprehensive income),the Cash Flow Statement and the Statement of Change in Equity for the year then ended and a summary of the significant accounting policies and other explanatory information (herein after referred as âstandalone Ind AS financial statementsâ).
2. Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standaloneInd AS financial statements that give a true and fair view of the state of affairs(financial position), profit or loss (financial performance including other comprehensive income), cash flows and change in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act, read with relevant rules issued thereunder.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
3. Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We have conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
4. Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the state of affairs (financial position) of the Company as at 31st March, 2017, and its profit (financial performance including other comprehensive income), its cash flows and change in equity for the year ended on that date.
5. Other Matters
The comparative financial information of the company for the year ended 31st March 2016 and the transition date opening balance sheet as at 1st April 2015 prepared in accordance with Ind AS included in these Standalone Ind AS financial statements are based on previously issued statutory financial statements prepared in accordance with the Companies (Accounting Standard) Rules, 2006 audited by us whose report for the year ended March 31, 2016 and March 31, 2015 dated 16th May, 2016 and 25th April, 2015 respectively expressed an unmodified opinion on those standalone financial statements, as adjusted for the differences in the accounting principles adopted by the Company on transition to Ind AS which have been audited by us.
Our opinion is not modified in respect of the above matter.
6. Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the âAnnexure Aâ, a statement on the matters specified in paragraphs 3 and 4 of the Order.
As required by Section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c. The Balance Sheet, Statement of Profit and Loss, the Cash Flow Statement and the Statement of Change in Equity dealt with by this Report are in agreement with the books of account;
d. In our opinion, the aforesaid standalone Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act read with relevant rule issued thereunder;
e. On the basis of written representations received from the directors as on 31st March, 2017, taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2017, from being appointed as a director in terms of Section 164 (2) of the Act.
f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ; and
g. With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
h. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 37B to the standalone Ind AS financial statements;
i. The Company did not have any long-term contracts including derivative contracts, for which there were any material foreseeable losses - Refer Note 37A (b) to the financial statements;
j. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company: and
k. The Company has provided requisite disclosures in Note no.14 in its standalone Ind AS financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8 November, 2016 to 30 December, 2016. Based on the audit procedures and relying on the management representation, we report that the disclosures are in accordance with the books of accounts and records maintained by the Company.
âAnnexure Aâ referred to in paragraph 6 of our report of even date
1. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of two years. In accordance with this programme, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, the periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
2. The inventory has been physically verified by the management at reasonable intervals. No material discrepancies were noticed on such physical verification.
3. The Company has not granted any loans, secured or unsecured, to companies, firm, Limited Liability Partnerships or other parties in the register maintained under section 189 of the Companies Act, 2013. Therefore, the provisions of clause 3(iii) (a), (b) and (c) of the Companies (Auditors Report) Order, 2016 are not applicable.
4. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
5. The Company has not accepted any deposits from the public within the provisions of Sections 73 to 76 or any other relevant provisions and the Rules framed thereunder. Accordingly, the provisions of Clause 3 (v) of the Order are not applicable to the Company.
6. We have broadly reviewed the books of accounts maintained by the Company pursuant to Rules made by the Central Government for the maintenance of cost records under Section 148(1) of the Companies Act, 2013 and are of the opinion that prima facie, the prescribed accounts and records have been maintained.
7. (a) The Company is generally regular in depositing with appropriate authorities, undisputed statutory dues including Provident Fund, Income Tax, Sales Tax, Service Tax, Custom Duty, Value Added Tax, Cess and other material statutory dues applicable to it. There were no arrears of undisputed statutory dues as at 31st March 2017, which were outstanding for a period of more than six months from the date they became payable. We are informed that there is no liability towards Employees State Insurance and Excise Duty for the year under audit.
(b) According to the information and explanations given to us and as per the records of the Company, the dues of service tax, custom duty and income tax which have not been deposited / deposited under protest with the appropriate authorities on account of any dispute are given below:
8. The Company has not defaulted in the repayment of dues to financial institutions, banks, Government or debenture holders.
S. No. |
Name of the Statute |
Nature of the Dues |
Not Deposited (Rs. in Lacs) |
Deposited (Rs. in Lacs) |
Period to which the amount relates |
Forum where dispute is pending |
1. |
Service Tax |
Service Tax and Interest |
4,005 |
- |
FY 2008-09 to 2009-2010 |
Honâble Supreme Court of India |
2. |
Service Tax |
Service Tax, Interest and penalty |
- |
2,567 |
FY 2009-10 to FY 2014-15 |
CESTAT, Delhi |
3. |
Service Tax |
Service Tax, Interest and penalty |
- |
689 |
FY 2014-15 |
CESTAT, Delhi |
4 |
Service Tax |
Service Tax and Interest |
754 |
- |
FY 2006-07 to 2010-11 |
CESTAT, Delhi |
5 |
Service Tax |
Service Tax and Interest |
31 |
- |
FY 2011-12 |
CESTAT, Delhi |
6 |
Service Tax |
Service Tax and Interest |
2 |
- |
FY 2012-13 |
Commissioner (Appeals), Service Tax |
7 |
Service Tax |
Service Tax and Interest |
4 |
- |
FY 2013-14 |
Commissioner (Appeals), Service Tax |
8 |
Service Tax |
Service Tax and Interest |
57 |
- |
FY 2014-2015 |
Principal Commissioner, Service Tax, Delhi |
9. |
Custom Duty |
Custom Duty and Interest |
346 |
- |
FY 2004-07 |
Honâble High Court, Gujarat |
10. |
Custom Duty |
Custom Duty and Interest |
112 |
- |
FY 2009-10 |
Honâble High Court, Gujarat |
11 |
Custom Duty |
Custom Duty and Interest |
284 |
- |
FY 2005-08 |
Honâble High Court, Gujarat |
12. |
Service Tax |
Service Tax |
- |
774 |
FY 2008-10 |
CESTAT, Delhi |
13. |
Service Tax |
Service Tax |
- |
753 |
FY 2008-11 |
Assistant Commissioner, Delhi |
14. |
Service Tax |
Service Tax |
- |
140 |
FY 2013-16 |
Assistant Commissioner, Delhi |
15. |
Income Tax Act, 1961 |
Income Tax and Interest |
206 |
- |
FY 2007-08 |
ITAT, Delhi |
16. |
Income Tax Act, 1961 |
Income Tax and Interest |
7,237 |
- |
FY 2008-09 to 2010-11 |
ITAT, Delhi |
17 |
Custom Act, 1962 |
Custom Duty |
- |
9,59 |
FY 2012-13 |
CESTAT, Ahmedabad |
Total |
13,038 |
5,882 |
9. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3 (ix) of the Order is not applicable.
10. Based upon the audit procedures performed and information and explanations given by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit.
11. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid / provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
12. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
13. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with Sections 177 and 188 of the Companies Act 2013 where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable Accounting Standards.
14. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
15. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
16. In our opinion and according to the information and explanation given to us, the company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
T R Chadha & Co LLP
Chartered Accountants
Firm Regn No. 006711N / N500028
sd/-
Neena Goel
(Partner) Date : 9 May 2017
M.N. 057986 Place : New Delhi
Mar 31, 2016
We have audited the accompanying standalone financial statements of
Petronet LNG Limited ("the Company"), which comprise the balance sheet
as at 31st March, 2016, the statement of profit and loss, the cash flow
statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
2. Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. . This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
3. Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We have conducted our audit in accordance with the Standards on
Auditing specified under Section 143(10) of the Act. Those Standards
require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company''s Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
4. Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2016, and its profit and its cash flows for the year
ended on that date.
5. Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor''s Report) Order, 2016 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Act, we give in the "Annexure
A", a statement on the matters specified in paragraphs 3 and 4 of the
Order.
As required by Section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit;
b. In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books;
c. The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. In our opinion, the aforesaid Standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e. On the basis of written representations received from the Directors
as on 31st March, 2016, taken on record by the Board of Directors, none
of the Directors is disqualified as on 31st March, 2016, from being
appointed as a Director in terms of Section 164 (2) of the Act.
f. With respect to the adequacy of the internal financial controls
over financial reporting of the Company and the operating effectiveness
of such controls, refer to our separate report in "Annexure B"; and
g. With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 27B to the
financial statements;
ii. The Company did not have any long-term contracts including
derivative contracts, for which there were any material foreseeable
losses - Refer Note 27 A (b) to the financial statements;
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
"Annexure A" referred to in paragraph 5 of our report of even date
1. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a regular programme of physical verification of its
fixed assets by which fixed assets are verified in a phased manner over
a period of two years. In accordance with this programme, certain fixed
assets were verified during the year and no material discrepancies were
noticed on such verification. In our opinion, the periodicity of
physical verification is reasonable having regard to the size of the
Company and the nature of its assets.
(c) According to the information and explanations given to us and on
the basis of our examination of the records of the Company, the title
deeds of immovable properties are held in the name of the Company.
2. The inventory has been physically verified by the management at
reasonable intervals. No material discrepancies were noticed on such
physical verification.
3. The Company has not granted any loans, secured or unsecured, to
companies, firms, Limited Liability Partnerships, or other parties in
the register maintained under section 189 of the Companies Act, 2013.
Therefore, the provisions of clause 3 (iii) (a), (b) and (c) of the
Companies (Auditors Report) Order, 2016 are not applicable.
4. In our opinion and according to the information and explanation
given to us, the Company has not granted any loan or given any
guarantee or security or made any investment covered under Section 185
and 186 of the Companies Act, 2013.
5. The Company has not accepted any deposits from the public within
the provisions of Sections 73 to 76 or any other relevant provisions
and the Rules framed thereunder. Accordingly, the provisions of Clause
3 (v) of the Order are not applicable to the Company.
6. We have broadly reviewed the books of accounts maintained by the
Company pursuant to Rules made by the Central Government for the
maintenance of cost records under Section 148(1) of the Companies Act,
2013 and are of the opinion that prima facie, the prescribed accounts
and records have been maintained.
7. (a) The Company is generally regular in depositing with appropriate
authorities, undisputed statutory dues including Provident Fund, Income
Tax, Sales Tax, Service tax, Custom Duty, value added tax, cess and
other material statutory dues applicable to it. There were no arrears
of undisputed statutory dues as at 31st March 2016, which were
outstanding for a period of more than six months from the date they
became payable. We are informed that there is no liability towards
Employees State Insurance and Excise Duty for the year under audit.
(b) According to the information and explanations given to us, there
are no material dues of service tax which have not been deposited with
the appropriate authorities on account of any dispute. However,
according to information and explanations given to us, the following
dues of income tax, and service tax have not been deposited by the
Company on account of disputes:
S.
No. Name of the Nature of
the Dues (Rs. in Period to which Forum where
dispute is
pending
Statute Lacs) the amount
relates
1 Service Tax Service
Tax and
Interest 65 FY 2003-04 to CESTAT, Delhi
2007-08
2 Service Tax Service
Tax and
Interest 754 FY 2006-07 to CESTAT, Delhi
2010-11
3 Service Tax Service
Tax and
Interest 31 FY 2011-12 CESTAT, Delhi
4 Service Tax Service
Tax and
Interest 2 FY 2012-13 Additional
Commissioner,
Delhi
5 Service Tax Service
Tax and
Interest 4 FY 2013-14 Additional
Commissioner,
Delhi
S.
No. Name of the Nature of
the Dues (Rs. in Period to which Forum where
dispute is
pending
Statute Lacs) the amount
relates
6 Service Tax Service
Tax and
Interest 57 FY 2014-2015 Principal
Commissioner,
Delhi
7 Income Tax Income
Tax and
Interest 1,244 FY 2007-08 CIT (Appeals)
Act, 1961
8. The Company has not defaulted in repayment of dues to financial
institutions, banks, Government or debenture holders.
9. The Company did not raise any money by way of initial public offer
or further public offer (including debt instruments) and term loans
during the year. Accordingly, paragraph 3 (ix) of the Order is not
applicable.
10. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the course of our
audit.
11. According to the information and explanations give to us and based
on our examination of the records of the Company, the Company has
paid/provided for managerial remuneration in accordance with the
requisite approvals mandated by the provisions of Section 197 read with
Schedule V to the Act.
12. In our opinion and according to the information and explanations
given to us, the Company is not a Nidhi company. Accordingly,
paragraph 3(xii) of the Order is not applicable.
13. According to the information and explanations given to us and
based on our examination of the records of the Company, transactions
with the related parties are in compliance with Sections 177 and 188 of
the Companies Act 2013 where applicable and details of such
transactions have been disclosed in the financial statements as
required by the applicable Accounting Standards.
14. According to the information and explanations give to us and based
on our examination of the records of the Company, the Company has not
made any preferential allotment or private placement of shares or fully
or partly convertible debentures during the year.
15. According to the information and explanations given to us and
based on our examination of the records of the Company, the Company has
not entered into any non-cash transactions with Directors or persons
connected with him. Accordingly, paragraph 3(xv) of the Order is not
applicable.
16. In our opinion and according to the information and explanation
given to us, the Company is not required to be registered under Section
45-IA of the Reserve Bank of India Act, 1934.
For T R Chadha & Co LLP
Chartered Accountants
Firm Regn No. 006711N / N500028
Sd/-
Neena Goel
(Partner) Date: 16th May, 2016
M.N. 057986 Place: New Delhi
Mar 31, 2015
We have audited the accompanying financial statements of Petronet LNG
Limited ("the Company"), which comprise the Balance Sheet as at 31st
March, 2015, the Statement of Profit and Loss, the Cash Flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information.
2. Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal controls, that were
operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
3. Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion the financial
statements.
4. Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its profit and its cash flows for the year
ended on that date.
5. Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
As required by Section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit;
b. In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books;
c. The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e. On the basis of written representations received from the Directors
as on 31st March, 2015, taken on record by the Board of Directors, none
of the Directors is disqualified as on 31st March, 2015, from being
appointed as a Director in terms of Section 164 (2) of the Act.
f. With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 27B and 28
to the financial statements;
ii. The Company did not have any long-term contracts including
derivative contracts, for which there were any material foreseeable
losses; Refer Note 27 A (b) to the financial statements.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure referred to in paragraph 5 of our report of even date.
1. (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The management has physically verified the fixed assets at the year
end, the frequency of which, in our opinion, is reasonable. No material
discrepancies were noticed on such verification.
2. (a) The stock of raw materials and stores have been physically
verified by the management at regular intervals. In our opinion, the
frequency of such physical verification is reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. No material
discrepancies were noticed on physical verification of the same.
3. The Company has not granted any loans, secured or unsecured, to
Companies, firms or other parties in the register maintained under
section 189 of the Companies Act, 2013. Therefore, the provisions of
clause 3 (iii) (a) and (b) of the Companies (Auditors Report) Order,
2015 are not applicable.
4. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to the purchase of inventory, fixed assets and with regard to the sale
of goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in the
internal control systems of the Company.
5. The Company has not accepted any deposits from the public within
the provisions of sections 73 to 76 or any other relevant provisions
and the Rules framed thereunder. Accordingly, the provisions of Clause
3 (v) of the Order are not applicable to the Company.
6. We have broadly reviewed the books of accounts maintained by the
Company pursuant to Rules made by the Central Government for the
maintenance of cost records under sub- section (1) of Section 148 of
the Companies Act, 2013 and are of the opinion that prima facie, the
prescribed accounts and records have been maintained.
7. (a) The Company is generally regular in depositing with appropriate
authorities, undisputed statutory dues including Provident Fund, Income
Tax, Sales Tax, Wealth Tax, Service tax, Custom Duty, value added tax
and other material statutory dues applicable to it. There were no
arrears of undisputed statutory dues as at 31st March 2015, which were
outstanding for a period of more than six months from the date they
became payable. We are informed that there is no liability towards
Employees State Insurance, Cess and Excise Duty for the year under
audit.
(b) According to the information and explanations given to us, and the
records of the Company examined by us, the particulars of dues of
Service Tax, Custom Duty and Income Tax as at March 31,2015 which have
not been deposited on account of a dispute is as follows:
S. No. Name of the Nature of the Dues (Rs. in
Statute lac)
1 Service Tax Service Tax and Interest 65
2 Service Tax Service Tax and Interest 377
3 Service Tax Service Tax and Interest 31
4 Service Tax Service Tax and Interest 2
5 Service Tax Service Tax and Interest 1
6 Custom Act, Custom Duty 882
1962
7 Income Tax Act, Income Tax and Interest 1,244
1961
S. No. Name of the Period to which the Forum where dispute is
Statute amount relates pending
1 Service Tax FY 2003-04 to 2007-08 CESTAT, Delhi
2 Service Tax FY 2006-07 to 2010-11 Commissioner Adjudication,
Delhi
3 Service Tax FY 2011-12 CESTAT, Delhi
4 Service Tax FY 2012-13 Additional Commissioner,
Delhi
5 Service Tax FY 2013-14 Additional Commissioner,
Delhi
6 Custom Act, FY 2012-13 & 2013-14 Commissioner of Custom
1962 Appeals
7 Income Tax Act, FY 2007-08 Order received on
20.03.2015,
1961 appeal pending to be
filed with
CIT (Appeals)
(c) We have not observed any delay in transferring the amount required
to be transferred to Investor Education Protection Fund in accordance
with the relevant provisions of the Companies Act , 1956 (1 of 1956)
and rules made thereunder.
8. The Company does not have accumulated losses as at 31st March,
2015. Further, the Company has not incurred cash losses during the
current financial year and in the immediately preceding financial year.
9. The Company has not defaulted in repayment of dues to financial
institutions, banks or debenture holders.
10. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from the
bank or financial institutions.
11. In our opinion and according to the information and explanations
given to us and the records of the Company examined by us, term loans
were utilized for the purposes for which they were obtained.
12. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the course of our
audit.
For T.R. Chadha & Co.
Chartered Accountants
(Firm Registration No. 006711N)
Sd/-
Neena Goel
Partner Place: New Delhi
M.N. 057986 Date: 25th April 2015
Mar 31, 2014
We have audited the accompanying financial statements of Petronet LNG
Limited ("the Company"), which comprise the Balance Sheet as at March
31, 2014, the Statement of Profit and Loss and Cash Flow Statement for
the year then ended, and a summary of significant accounting policies
and other explanatory information.
2. Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards notified under Companies Act, 1956 ("the Act")
read with General Circular 15/2013 dated 13th September 2013 of the
Ministry of Corporate Affairs in respect of section 133 of the
Companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
3. Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion of the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
4. Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
5. Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b. In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
c. The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. In our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards notified
under Companies Act, 1956 read with General Circular 15/2013 dated 13th
September 2013 of the Ministry of Corporate Affairs in respect of
section 133 of the Companies Act, 2013 and
e. On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Petronet LNG Limited Annexure referred to in paragraph 5 of our report
of even date.
1. (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The management has physically verified the fixed assets at the year
end, the frequency of which, in our opinion, is reasonable. No material
discrepancies were noticed on such verification.
(c) Since there is no substantial disposal of fixed assets during the
year, the going concern status of the Company is not affected.
2. (a) The stock of raw materials and stores have been physically
verified by the management at regular intervals. In our opinion, the
frequency of such physical verification is reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. No material
discrepancies were noticed on physical verification of the same.
3. (a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties in the register maintained under
section 301 of the Companies Act, 1956. Therefore, the provisions of
clause 4 (iii) (b) to (d) of the Companies (Auditors Report) Order are
not applicable.
(b) The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956. Therefore, the provisions
of clause 4 (iii) (f) to (g) of the Companies (Auditors Report) Order
are not applicable.
4. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to the purchase of inventory, fixed assets and with regard to the sale
of goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in the
internal control systems of the Company.
5. Based on the audit procedures applied by us and according to the
information and explanations provided by the management, there are no
contracts or arrangements which need to be entered in the Register
maintained under Section 301 of the Companies Act, 1956. Accordingly,
the provisions of clause 4 (v) of the Order are not applicable to the
Company.
6. The Company has not accepted any deposits from the public within
the provisions of sections 58 A and 58AA or any other relevant
provisions and the Rules framed thereunder. Accordingly, the provisions
of Clause 4 (vi) of the Order are not applicable to the Company.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of accounts maintained by the
Company pursuant to Rules made by the Central Government for the
maintenance of cost records under clause (d) of sub- section (1) of
section 209 of the Companies Act, 1956 and are of the opinion that
prima facie, the prescribed accounts and records have been maintained.
9. (a) The Company is generally regular in depositing with appropriate
authorities, undisputed statutory dues including Provident Fund,
Investors Education and Protection Fund, Income Tax, Sales Tax, Wealth
Tax, Custom Duty, and other material statutory dues applicable to it.
There were no arrears of undisputed statutory dues as at 31st March
2014, which were outstanding for a period of more than six months from
the date they became payable. We are informed that there is no
liability towards Employees State Insurance, Cess and Excise Duty for
the year under audit.
(b) According to the information and explanations given to us, and the
records of the Company examined by us, the particulars of dues of
service  tax as at March 31, 2014 which have not been deposited on
account of a dispute is as follows:
S.
No. Name of the Nature of the Dues (Rs. in Period to which
Statute lac) the amount relates
Service Tax including
1 Service Tax Act Interest & Penalty 65 2003-04 to 2007-08
2 Service Tax Act Service Tax 377 2006-07 to 2010-11
3 Service Tax Act Service Tax 31 2011-12
3 Service Tax Act Service Tax 2 2012-13
Name of the Statue Forum where dispute is
pending
Service Tax Act CESTAT, Delhi
Service Tax Act Commissioner Adjudication, Delhi
Service Tax Act Appeal to be filed with CESTAT
Service Tax Act Additional Commissioner, Delhi
10. The Company does not have accumulated losses as at 31st March,
2014. Further, the company has not incurred cash losses during the
current financial year and in the immediately preceding financial year.
11. The Company has not defaulted in repayment of dues to financial
institutions, banks or debenture holders.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. Since the Company is not a chit fund or a nidhi / mutual benefit
fund/ society, provisions of clause 4 (xiii) of the Companies
(Auditor''s Report) Order, 2003 are not applicable to the Company.
14. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provision of clause 4(xiv) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the Company.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from the
bank or financial institutions.
16. In our opinion and according to the information and explanations
given to us and the records of the Company examined by us, term loans
were utilized for the purposes for which they were obtained.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investments.
18. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of
the Companies Act, 1956.
19. During the year ended 31st March 2014, the Company has issued
unsecured debentures under private placement basis. Accordingly no
security or charge in respect of such debentures has been created.
20. The Company has not raised any money by way of public issue during
the year.
21. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the course of our
audit.
For T.R. Chadha & Co.
Chartered Accountants
(Firm Registration No. 006711N)
Sd/-
Neena Goel
Partner
Place: New Delhi
M.N. 057986
Date : 30th April 2014
Mar 31, 2013
1. Report on the Financial Statements
We have audited the accompanying financial statements of Petronet LNG
Limited ("the Company"), which comprise the Balance Sheet as at
March 31, 2013, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
2. Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
3. Auditor''s responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
4. opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
5. report on other Legal and regulatory requirements
As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b. In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
c. The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. In our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956; and
e. On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure referred to in paragraph 5 of our report of even date
1. (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The management has physically verified most of the fixed assets at
the year end, the frequency of which, in our opinion, is reasonable. No
material discrepancies were noticed on such verification.
(c) Since there is no substantial disposal of fixed assets during the
year, the going concern status of the Company is not affected.
2. (a) The stock of raw materials and stores have been physically
verified by the management at regular intervals.
In our opinion, the frequency of such physical verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. No material
discrepancies were noticed on physical verification of the same.
3. (a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties in the register maintained under
section 301 of the Companies Act, 1956. Therefore, the provisions of
clause 4 (iii) (b) to (d) of the Companies (Auditors Report) Order are
not applicable.
(b) The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956. Therefore, the provisions
of clause 4 (iii) (f) to (g) of the Companies (Auditors Report) Order
are not applicable.
4. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to the purchase of inventory, fixed assets and with regard to the sale
of goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in the
internal control systems of the Company.
5. Based on the audit procedures applied by us and according to the
information and explanations provided by the management, there are no
contracts or arrangements which need to be entered in the Register
maintained under Section 301 of the Companies Act, 1956. Accordingly,
the provisions of clause 4 (v) of the Order are not applicable to the
Company.
6. The Company has not accepted any deposits from the public within
the provisions of sections 58 A and 58AA or any other relevant
provisions and the Rules framed thereunder. Accordingly, the provisions
of Clause 4 (vi) of the Order are not applicable to the Company.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of accounts maintained by the
Company pursuant to Rules made by the Central Government for the
maintenance of cost records under clause (d) of sub- section (1) of
section 209 of the Companies Act, 1956 and are of the opinion that
prima facie, the prescribed accounts and records have been maintained.
9. (a) The Company is regular in depositing with appropriate
authorities, undisputed statutory dues including Provident Fund,
Investors Education and Protection Fund, Income Tax, Sales Tax, Wealth
Tax, Custom Duty, and other material statutory dues applicable to it.
There were no arrears of undisputed statutory dues as at 31st March
2013, which were outstanding for a period of more than six months from
the date they became payable. We are informed that there is no
liability towards Employees State Insurance, Cess and Excise Duty for
the year under audit.
(b) According to the information and explanations given to us, and the
records of the Company examined by us, the particulars of dues of
service - tax as at March 31, 2013 which have not been deposited on
account of a dispute is as follows:
S.
No. Name of the Nature of the Amount
Statute Dues (Rs. in lacs)
1. Service Tax Act Service tax 65
2. Service Tax Act Service tax 377
Name of the Statute Period to which the Forum where dispute is
amount relates pending
Service Tax Act 2003-04 to 2007-08 Central Excise and
Service Tax Appellate
Tribunal, Delhi
Service Tax Act 2006-07 to 2010-11 Central Excise and
Service Tax Appellate
Tribunal, Delhi.
10. The Company does not have accumulated losses as at 31st March,
2013. Further, the company has not incurred cash losses during the
current financial year and in the immediately preceding financial year.
11. The Company has not defaulted in repayment of dues to financial
institutions or banks. There were no debentures outstanding in the
books of accounts at any time during the year.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. Since the Company is not a chit fund or a nidhi / mutual benefit
fund/ society, provisions of clause 4 (xiii) of the Companies
(Auditor''s Report) Order, 2003 are not applicable to the Company.
14. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provision of clause 4(xiv) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the Company.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from the
bank or financial institutions.
16. In our opinion and according to the information and explanations
given to us and the records of the Company examined by us, term loans
were utilized for the purposes for which they were obtained.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investments.
18. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of
the Companies Act, 1956.
19. According to the information and explanations given to us and on
an overall examination of the records of the Company, the Company has
not issued any debentures during the year.
20. The Company has not raised any money by way of public issue during
the year.
21. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the course of our
audit.
For T.R. Chadha & Co.
Chartered Accountants
(Firm Registration No. 006711N)
Sd/-
Neena Goel
Place : New Delhi Partner
Date : 30th April, 2013 M.N. 057986
Mar 31, 2012
1. We have audited the attached Balance Sheet of PETRONET LNG LIMITED
as at 31st March, 2012 and also the statement of Profit and Loss and
Cash Flow Statement of the Company for the year ended on that date,
annexed thereto. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. We report that
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief, were necessary for the purpose of our
audit;
(b) In our opinion, proper books of account as required by Law have
been kept by the Company, so far as appears from our examination of
those books;
(c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
Account;
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in section 211 (3C) of the Companies
Act, 1956 to the extent applicable;
(e) On the basis of written representations received from the directors
and taken on record by the Board of Directors, none of the directors
are prima facie, disqualified as on 31.03.2012 from being appointed as
directors of the Company under section 274 (1) (g) of the Companies
Act, 1956.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with the significant accounting policies and notes thereon, give the
information required by the Companies Act, 1956 in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
ii. in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
iii. in the case of cash flow statement, of the cash flows for the year
ended on that date.
4. As required by the Companies (Auditors Report) Order, 2003 (as
amended) issued by the Department of Company Affairs, Govt. of India
in terms of Section 227 (4A) of the Companies Act, 1956, and on the
basis of such checks of the books and records of the Company as we
considered appropriate and according to the information and
explanations given to us, we further report on the matters specified in
the paragraphs 4 and 5 of the said Order as under :
i a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) The management has physically verified most of the fixed assets at
the year end, the frequency of which, in our opinion, is reasonable. No
material discrepancies were noticed on such verification.
c) Since there is no substantial disposal of fixed assets during the
year, the preparation of financial statements on a going concern basis
is not affected on this account.
ii. a) The stock of raw materials and stores have been physically
verified by the management at regular intervals. In our opinion, the
frequency of verification is reasonable.
b) In our opinion, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) In our opinion, the Company is maintaining proper records of
inventory and no material discrepancies were noticed on physical
verification.
iii. a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956. Therefore, the provisions
of clause 4(iii) (a) to (d) of the Companies (Auditors Report) Order
are not applicable.
e) The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956. Therefore, the provisions
of clause 4(iii) (e) to (g) of the Companies (Auditors Report) Order
are not applicable.
iv. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory, fixed assets and for the sale of goods and
services. During the course of our audit, we have neither come across
nor have been informed of any continuing failure to correct major
weaknesses in internal control system of the Company.
v According to the information given to us, there are no contracts or
arrangements during the year that need to be entered into a register in
pursuance of section 301 of the Companies Act, 1956.
vi The Company has not accepted deposits from the public within the
provisions of sections 58A and 58AA or any other relevant provisions
and the Rules framed there under.
vii An outside agency has carried out internal audit during the year.
In our opinion, the internal audit system of the Company is
commensurate with the size and nature of its business.
viii We have broadly reviewed the books of accounts maintained by the
Company, pursuant to rules made by the Central Government for the
maintenance of cost records under clause (d) of sub-section (1) of
section 209 of the Companies Act, 1956 and are of the opinion that
prima facie, the prescribed accounts and records have been maintained.
We have not, however, made a detailed examination of the records with a
view to determine whether they are accurate and complete.
ix a) According to the information and explanations given to us and
records of the Company examined by us, in our opinion, the Company has
been generally regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty, and any
other statutory dues with the appropriate authorities. There were no
arrears of undisputed statutory dues as at 31st March 2012, which were
outstanding for a period of more than six months from the date they
became payable. We are informed that there is no liability towards
Employees State Insurance, Cess and Excise Duty for the year under
audit.
b) According to the information and explanations given to us and the
records of the Company examined by us, the particulars of dues of
service-tax as at March 31, 2012 which have not been deposited on
account of a dispute is as follows :-
Nature of
dues Year Amount
(Rs. In lacs) Forum where pending
Service Tax 2003-04 to 2007-08 65 Central Excise and
Service Tax
Appellate Tribunal,
Delhi
Service Tax 2006-07 to 2010-11 377 Appeal to be filled
with Central Excise
and Service Tax
Appellate Tribunal,
Delhi
x The Company has no accumulated losses as at 31st March 2012 and has
not incurred cash losses during the financial year covered by our audit
or in the immediately preceding financial year.
xi On the basis of the verification of records and information and
explanations given to us, the Company has not defaulted in repayment of
dues to financial institutions or banks. There are no debentures
outstanding in the books of accounts at any time during the year.
Xi The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii The Company is not a chit fund/ nidhi / mutual benefit fund /
society. Therefore, the provisions of clause 4(xiii) of the Companies
(Auditors Report) Order are not applicable.
xiv The Company is not dealing or trading in shares, securities,
debentures and other investments. Therefore, the provision of clause
4(xiv) of the Companies (Auditors Report) Order are not applicable.
xv According to information and explanations given to us, the Company
has not given any guarantee for loans taken by others from banks or
financial institutions.
xvi According to the records of the Company, term loans taken during
the year have been applied for the purpose for which they were obtained
except that an amount of Rs. 3,54,17 lacs pending utilization is
temporarily held in short term deposits.
xvii According to information and explanations given to us, the cash
flow statement examined by us and on overall examination of the balance
sheet of the Company, we report that funds raised on short term basis
have not been used for long term investments.
xviii During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under section 301 of the Act.
xix As the Company has no outstanding debentures during the year,
questions of creating securities or charge does not arise.
xx The Company has not raised any money through public issue of
securities during the year and therefore, verification of the end use
of money does not arise.
xxi Based on the audit procedure performed and the representation
obtained from the management, we report that no case of fraud on or by
the Company has been noticed or reported during the year under audit.
For V. Sankar Aiyar & Co.
Chartered Accountants
ICAI Firm Regn. No. 109208 W
sd/-
(Ajay Gupta)
Place : New Delhi Partner
Dated : 24th April, 2012 Membership No. 90104
Mar 31, 2011
1. We have audited the attached Balance Sheet of PETRONET LNG LIMITED
as at 31st March, 2011 and also the Profit and Loss Account and Cash
Flow Statement of the Company for the year ended on that date, annexed
thereto. These financial statements are the responsibility of the
CompanyÃs management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. We report that
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief, were necessary for the purposes of
our audit;
(b) In our opinion, proper books of account as required by Law have
been kept by the Company, so far as appears from our examination of
those books;
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of Account;
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in section 211 (3C) of the Companies Act, 1956 to
the extent applicable;
(e) On the basis of written representations received from the directors
and taken on record by the Board of Directors, we report that none of
the directors are prima facie, disqualified as on 31.03.2011 from being
appointed as directors of the Company under section 274(1)(g) of the
Companies Act, 1956.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with the significant accounting policies and notes thereon, give the
information required by the Companies Act, 1956 in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India :
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011; ii in the case of the Profit and Loss
Account, of the profit for the year ended on that date; and iii in the
case of cash flow statement, of the cash flows for the year ended on
that date.
4. As required by the Companies (Auditors Report) Order, 2003 (as
amended) issued by the Department of Company Affairs, Govt. of India in
terms of Section 227 (4A) of the Companies Act, 1956, and on the basis
of such checks of the books and records of the Company as we considered
appropriate and according to the information and explanations given to
us, we further report on the matters specified in the paragraphs 4 and
5 of the said Order as under :
i a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) The management has physically verified most of the fixed assets at
the year end, the frequency of which, in our opinion, is reasonable. No
material discrepancies were noticed on such verification.
c) Since there is no substantial disposal of fixed assets during the
year, the preparation of financial statements on a going concern basis
is not affected on this account.
ii a) The stock of raw materials and stores have been physically
verified by the management at regular intervals. In our opinion, the
frequency of verification is reasonable.
b) In our opinion, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) In our opinion, the Company is maintaining proper records of
inventory and no material discrepancies were noticed on physical
verification.
iii a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956. Therefore, the provisions
of clause 4(iii)(a) to (d) of the Companies (Auditors Report) Order are
not applicable. e) The Company has not taken any loans, secured or
unsecured from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
Therefore, the provisions of clause 4(iii)(e) to (g) of the Companies
(Auditors Report) Order are not applicable.
iv In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory, fixed assets and for the sale of goods and
services. During the course of our audit, we have neither come across
nor have been informed of any continuing failure to correct major
weaknesses in internal control system of the Company.
v According to the information given to us, there are no contracts or
arrangements during the year that need to be entered into a register in
pursuance of section 301 of the Companies Act, 1956.
vi The Company has not accepted deposits from the public within the
provisions of sections 58A and 58AA or any other relevant provisions
and the Rules framed there under.
vii An outside agency has carried out internal audit during the year.
In our opinion, the internal audit system of the Company is
commensurate with the size and nature of its business.
viii We have broadly reviewed the books of accounts maintained by the
Company, pursuant to rules made by the Central Government for the
maintenance of cost records under clause (d) of sub-section (1) of
section 209 of the Companies Act, 1956 and are of the opinion that
prima facie, the prescribed accounts and records have been maintained.
We have not, however, made a detailed examination of the records with a
view to determine whether they are accurate and complete.
ix a) According to the information and explanations given to us and
records of the Company examined by us, in our opinion, the Company has
been generally regular in depositing undisputed statutory dues
including Provident Fund, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Custom Duty, and any other statutory dues with the appropriate
authorities. There were no arrears of undisputed statutory dues as at
31st March, 2011, which were outstanding for a period of more than six
months from the date they became payable. We are informed that there is
no liability towards Investor Education and Protection Fund, EmployeesÃ
State Insurance, Cess and Excise Duty for the year under audit.
b) There are no disputed dues which have remained unpaid as on 31st
March, 2011 in respect of sales tax / income tax / custom duty / wealth
tax / service tax. x The Company has no accumulated losses as at 31st
March 2011 and has not incurred cash losses during the financial year
covered by our audit or in the immediately preceding financial year.
xi On the basis of the verification of records and information and
explanations given to us, the Company has not defaulted in repayment of
dues to financial institutions or banks. There are no debentures
outstanding in the books of accounts at any time during the year.
xii The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii The Company is not a chit fund / nidhi / mutual benefit fund /
society. Therefore, the provisions of clause 4(xiii) of the Companies
(Auditors Report) Order are not applicable.
xiv The Company is not dealing or trading in shares, securities,
debentures and other investments. Therefore, the provisions of clause
4(xiv) of the Companies (Auditors Report) Order are not applicable.
xv According to information and explanations given to us, the Company
has not given any guarantee for loans taken by others from banks or
financial institutions.
xvi According to the records of the Company, term loans taken during
the year have been applied for the purpose for which they were obtained
except that an amount of Rs. 249.15 crores pending utilization is
temporarily held in short term investment.
xvii According to information and explanations given to us, the cash
flow statement examined by us and on overall examination of the balance
sheet of the Company, we report that funds raised on short term basis
have not been used for long term investments.
xviii During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under section 301 of the Act.
xix As the Company has no outstanding debentures during the year,
question of creating securities or charge does not arise.
xx The Company has not raised any money through public issue of
securities during the year and therefore, verification of the end use
of money does not arise.
xxi Based on the audit procedure performed and the representation
obtained from the management, we report that no case of fraud on or by
the Company has been noticed or reported during the year under audit.
For V. Sankar Aiyar & Co.
Chartered Accountants
ICAI Firm Regn. No. 109208W
(Ajay Gupta)
Place : New Delhi Partner
Date : 26th April, 2011 Membership No. 90104
Mar 31, 2010
1. We have audited the attached Balance Sheet of PETRONET LNG LIMITED
as at 31st March, 2010 and also the Profit and Loss Account and Cash
Flow Statement of the Company for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
CompanyÃs management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted the audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. We report that
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief, were necessary for the purposes of
our audit;
(b) In our opinion, proper books of account as required by Law have
been kept by the Company, so far as appears from our examination of
these books;
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of Account;
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in section 211 (3C) of the Companies Act, 1956 to
the extent applicable;
(e) On the basis of written representations received from the directors
and taken on record by the Board of Directors, we report that none of
the directors are prima facie, disqualified as on 31.03.2010 under
section 274(1)(g) of the Companies Act, 1956 from being appointed as
directors of the Company.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the notes
thereon, give the information required by the Companies Act, 1956 in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India :
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010; ii in the case of the Profit and Loss
Account, of the profit for the year ended on that date; and iii in the
case of cash flow statement, of the cash flows for the year ended on
that date.
4. As required by the Companies (Auditors Report) Order, 2003 (as
amended) issued by the Department of Company Affairs, Govt. of India in
terms of Section 227 (4A) of the Companies Act, 1956, and on the basis
of such checks as we considered appropriate and according to the
information and explanations given to us, we further report on the
matters specified in the paragraphs 4 and 5 of the said Order as under
:
i a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) The management has physically verified most of the fixed assets at
the year end, the frequency of which, in our opinion, is reasonable. No
material discrepancies were noticed on such verification.
c) Since there is no substantial disposal of fixed assets during the
year, the preparation of financial statements on a going concern basis
is not affected on this account.
ii a) The stock of raw materials and stores have been physically
verified by the management during the year. In our opinion, the
frequency of verification is reasonable.
b) In our opinion, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) In our opinion, the Company is maintaining proper records of
inventory and no material discrepancies were noticed on physical
verification.
iii a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties required to be covered in the
register maintained under section 301 of the Companies Act, 1956.
Therefore, the provisions of clause 4(iii)(a) to (d) of the Companies
(Auditors Report) Order are not applicable.
b) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties required to be covered in the
register maintained under section 301 of the Companies Act, 1956.
Therefore, the provisions of clause
4(iii)(e) to (g) of the Companies (Auditors Report) Order are not
applicable. iv In our opinion and according to the information and
explanations given to us, there are adequate internal control system
commensurate with the size of the Company and the nature of its
business, for the purchase of inventory and fixed assets and for the
sale of goods. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system of the Company.
v According to the information given to us, there are no contracts or
arrangements during the year that need to be entered into a register in
pursuance of section 301 of the Companies Act, 1956. vi The Company
has not accepted deposits from the public within the provisions of
sections 58A and 58AA of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) Rules, 1975. vii An outside agency has
carried out internal audit during the year. In our opinion, the
internal audit system of the Company is commensurate with the size and
nature of its business. viii We have broadly reviewed the books of
accounts maintained by the Company, pursuant to rules made by the
Central Government for the maintenance of cost records under clause (d)
of sub-section (1) of section 209 of the Companies Act, 1956 and are of
the opinion that prima facie, the prescribed accounts and records have
been maintained. We have not, however, made a detailed examination of
the records with a view to determine whether they are accurate and
complete. ix a) According to the records of the Company, the Company
has been generally regular in depositing undisputed statutory dues
including Provident Fund, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Custom Duty, and any other statutory dues with the appropriate
authorities. There were no arrears of undisputed statutory dues as at
31st March, 2010, which were outstanding for a period of more than six
months from the date they became payable. We are informed that there is
no liability towards Investor Education and Protection Fund, EmployeesÃ
State Insurance, Cess and Excise Duty for the year under audit.
b) There are no disputed dues which have remained unpaid as on 31st
March, 2010 in respect of sales tax / income tax / custom duty / wealth
tax / service tax. x The Company has no accumulated losses as at the
end of the year and has not incurred cash losses during the financial
year covered by our audit or in the immediately preceding financial
year.
xi On the basis of the verification of records and information and
explanations given to us, the Company has not defaulted in repayment of
dues to financial institutions or banks. There are no debentures
outstanding in the books of accounts at any time during the year.
xii The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii The Company is not a chit fund / nidhi / mutual benefit fund /
society. Therefore, the provisions of clause 4(xiii) of the Companies
(Auditors Report) Order are not applicable.
xiv The Company is not dealing or trading in shares, securities,
debentures and other investments. Therefore, the provisions of clause
4(xiv) of the Companies (Auditors Report) Order are not applicable.
xv According to information and explanations given to us, the Company
has not given any guarantee for loans taken by others from banks or
financial institutions.
xvi According to the records of the Company, short term loans taken
during the year have been applied for the purpose for which they were
obtained.
xvii According to information and explanations given to us, the cash
flow statement examined by us and on overall examination of the balance
sheet of the Company, we report that funds raised on short term basis
have not been used for long term investments.
xviii During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under section 301 of the Act.
xix Since no debentures have been issued during the year, question of
creating securities or charge does not arise.
xx Since there were no public issue of securities during the year,
verification of the end use of money does not arise.
xxi Based on the audit procedure performed and the representation
obtained from the management, we report that no case of fraud on or by
the Company has been noticed or reported during the year under audit.
For V. Sankar Aiyar & Co.
Chartered Accountants
Sd/-
(Ajay Gupta)
Place : New Delhi Partner
Date : 27th April, 2010 Membership No. 90104
ICAI Firm Regn. No. 109208W