Mar 31, 2023
Tamilnadu Petroproducts Limited Report on the Audit of Standalone Financial Statements
We have audited the accompanying standalone financial statements of Tamilnadu Petroproducts Limited (âthe Companyâ) which comprise the Balance Sheet as at 31st March, 2023, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended and the notes to the standalone financial statements including a summary of the significant accounting policies and other explanatory information (hereinafter referred to as âthe standalone financial statementsâ).
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 Companies Act, 2013 ( âthe Actâ) 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 (âInd ASâ) and other 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 changes in equity for the year ended on that date.
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 (âICAIâ) 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 on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the 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. For each matter below, our description of how our audit addressed the matter is provided in that context.
Accounting for legal and other contractual claims: |
Our response |
The Company is involved in litigations comprising of tax matters, legal compliances, and other disputes the financial impact of which would largely depend on the decision by the appellate authorities. The Company assesses the need to make a provision or disclose a contingency on a case-to-case basis considering the underlying facts of each matter, in consultation with its legal counsel and the level of probability of outflow of economic resources. This involves a high level of management judgement and assumptions which impact the risk assessment and consequential provisioning and disclosure of contingencies in the financial statements. This area is significant to our audit since the completeness and accuracy of accounting and disclosures for contingencies is dependent on such management judgement and assumptions. |
Our audit procedures included the following: ⢠Evaluated and tested the Companyâs processes and controls for monitoring of claims, litigations, disputes, compliance and assessment thereof for determining the likely outcome. ⢠Read the summary of the litigations prepared by the management and discussed the material cases to determine the Companyâs assessment of the likelihood and magnitude of any liability that may arise. ⢠Obtained independent legal confirmations from the concerned professionals engaged by the Company, where applicable, to seek their opinion on the status of litigations and checked the managementâs judgements and assumptions. ⢠Discussed with the management to understand the basis of managementâs judgements and estimates and independently assessed the level of probability of outflow of resources embodying the economic resources to arrive at our judgement of whether a provision was required or a disclosure sufficient. ⢠Obtained risk assessment of tax litigations from tax specialists to assess managementâs judgements and assumptions on such matters. ⢠Read the minutes of the board meetings to determine the completeness of claims, disputes, and litigations. ⢠Tested the adequacy of disclosures in the standalone financial statements. ⢠Also obtained necessary representation from the management with regard to the provisioning and disclosures in respect of the claims and litigations. |
Other Information
The Companyâs Board of Directors is responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Boardâs Report including annexures to Boardâs Report and Report on Corporate Governance but does not include the standalone and consolidated financial statements and our respective auditorâs report thereon. The other information referred to above is expected to be made available to us after the date of this auditorâs 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 identified above 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.
When we read the other information, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs 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 accounting principles generally accepted in India, including the IND AS specified under the Act read with Rules framed thereunder as applicable.
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 Board of Directors is responsible for assessing the Companyâs 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 Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those 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 skepticism 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 expressing 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 Board of Directorsâ 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.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in
i. planning the scope of our audit work and in evaluating the results of our work; and
ii. to evaluate the effect of any identified misstatements in the standalone financial statements.
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 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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2020 (âthe Orderâ) issued by the Central Government of India in terms of Section 143(11) of the Act, we give in 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.
(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 Changes in Equity 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 Ind AS specified under Section 133 of the Act, read with relevant Rules issued there under.
(e) On the basis of the written representations received from the directors 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 with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure B. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls with reference to financial statements.
(g) With respect to other matters to be included in Auditorâs Report in accordance with the requirements of section 197(16) of the Act, in our opinion and to the best of our information and according to the explanations given to us, 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 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 standalone financial statements. Refer Note. Nos.31A and 33 to the standalone financial statements.
ii. The Company has certain long-term contracts for which there are no material foreseeable losses. The Company did not have any derivative contracts at the year end.
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 that,
to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) other than those disclosed in the standalone financial statements 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 or entity, including foreign entity (âIntermediariesâ), 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 (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity (âFunding Partiesâ), 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 (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been 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) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.
v. (a) The final dividend proposed in the previous year,
declared, and paid by the Company during the
year is in accordance with Section 123 of the Act, as applicable. The Company has not paid any interim dividend during the year.
(b) The Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance with section 123 of the Act, as applicable. (Refer note.44 to the standalone financial statements).
vi. As proviso to Rule 3(1) of Companies (Accounts) Rules, 2014 is applicable for the Company with effect from April 1, 2023, reporting under clause (g) of Rule 11 of Companies (Audit and Auditors) Rules, 2014 relating to audit trail is not applicable for the year.
For R.G.N Price & Co.
Chartered Accountants (Firm Registration No. 002785S)
Sriraam Alevoor M Partner
Place: Chennai M. No. 221354
Date : 23rd May 2023 UDIN:23221354BGXJLJ5015
Mar 31, 2018
Report on the Standalone Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Tamilnadu Petroproducts 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 Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information. Managementâs Responsibility for the Standalone 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 standalone Ind AS 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 accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under the Companies(Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016 as applicable.
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.
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 there under.
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 standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in 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 Ind AS financial statements.
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 Ind AS, of the state of affairs of the Company as at 31st March 2018 and its profits including other comprehensive income, its cash flows and changes in equity for the year ended on that date.
Other Matters
The comparative financial information of the Company for the year ended 31st March 2017 and the transition date opening balance sheet as at 1st April 2016 included in these standalone financial statements, are based on the previously issued standalone financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006, audited by the predecessor auditor whose report for the year ended 31st March 2017 and 31st March 2016 dated 16th May 2017 and 30th May 2016 respectively, expressed an unmodified opinion on those standalone financial statements. These financial statements have been adjusted for the differences in the accounting principles adopted by the Company on transition to the Ind AS, which have been audited by us. Our opinion is not modified in respect of these matters. Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in 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.
(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 Changes 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 Rules issued there under.
(e) On the basis of the written representations received from the directors as on 31st March 2018, taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 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 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:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements. Refer Note No.35A & No.35B to the standalone Ind AS financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The fixed assets were physically verified by the Management during the year in accordance with a regular program of verification which, in our opinion, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanation given to us, discrepancies noticed on such verification were not material and have been properly dealt with in the books of accounts.
(c) According to the information and explanations given to us and on the basis of our examination, we report that, the title deeds of freehold land and the buildings constructed thereon are held in the name of the Company as at the balance sheet date. In respect of freehold land at Pondicherry of cost Rs. 20.68 lakhs, the Company is in the process of obtaining duplicate title deeds.
(ii) Physical verification of inventories has been conducted at reasonable intervals by the Management. The discrepancies noticed on physical verification which were not material have been properly dealt with in the books of accounts.
(iii) The Company has not granted any loans, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013.
(iv) The Company has not granted any loans nor any guarantee or security to the Directors nor or to any Company, body corporate or to any other person covered by Section 185 of the Act. The investment made by the Company during the year is in compliance with Section 186 of the Act.
(v) The Company has not accepted any deposits and the provisions of Section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under are not applicable to the Company.
(vi) We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014 prescribed by the Central Government under section 148 (1) of Companies Act, 2013 and are of the opinion that prima facie the prescribed cost records have been made and maintained. We have however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) (a) On the basis of our examination of books and records, the Company has been regular in depositing undisputed statutory dues including Provident Fund, Employeesâ State Insurance, Income-tax, Sales-tax, Service Tax, Goods and Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and any other statutory dues to the appropriate authorities. There are no arrears of outstanding undisputed statutory dues as on the last day of the financial year for a period of more than six months from the date they became payable.
(b) There are no dues of income tax or sales tax or service tax or duty of customs or duty of excise or value added tax or cess which have not been deposited on account of any dispute as at 31st March 2018, except for:
(Rs. in lakhs)
Nature of Statute |
Nature of Dues |
Forum where dispute is pending |
Financial Year |
Amount involved |
Amount unpaid |
Income Tax Act |
Income Tax |
CIT |
2002-03, 2005-06 |
1,720.59 9,690.78 |
75.76 6,245.34 |
CIT (A) |
2000-01, 2006-07 to 2010-11, 2012-13 & 2013-14 |
||||
Dispute Resolution Panel |
2011-12 |
824.94 |
299.25 |
||
High Court |
1998-99 |
2,956.13 |
60.16 |
||
Supreme Court |
2001-02 |
2,645.60 |
151.16 |
||
Various States Sales Tax Acts |
Sales Tax |
High Court |
1993-94 |
1,687.09 |
1,687.09 |
Sales Tax Appellate Tribunal |
1995-96 to 2002-03 |
39.02 |
27.82 |
||
Deputy Commissioner (Commercial Taxes) |
2005-06 |
5.15 |
5.15 |
||
Finance Act,1994 |
Service Tax |
CESTAT, Chennai |
2006-07 to 2008-09, 2011-12 to 2014-15 |
415.86 |
375.52 |
Central Excise Act |
Excise Duty |
High Court |
1994-95 to 1999-00 |
118.23 |
59.01 |
Commissioner (Appeals) |
2005-06 to 2009-2010 |
244.22 |
234.37 |
||
CESTAT, Chennai |
2009-10 to 2012-13 |
160.92 |
154.88 |
||
Customs Act |
Customs Duty |
High Court |
1999-00 |
34.25 |
34.25 |
(viii) According to the information and explanation given to us, and the records of the Company examined by us, the Company has not defaulted in repayment of loans or borrowing from any financial institutions, banks or Government. The Company has not issued any debentures.
(ix) The Company has not raised any moneys by way of initial public offer or further public offer (including debt instruments) or term loans and hence reporting under clause 3 (ix) of the âOrderâ is not applicable.
(x) During the course of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India and according to the information and explanation given to us, we have neither observed any instance of fraud by the Company or any fraud on the Company by its officers or employees of the Company nor have we been informed of such case by the Management, during the year.
(xi) In our opinion and according to the information and explanations given to us, managerial remuneration has been paid/ provided in accordance with the requisite approval mandated by the provisions of Section 197 read with Schedule V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and hence clause 3(xii) of the âOrderâ is not applicable.
(xiii) Transactions with related parties have been disclosed in the standalone Ind AS financial statements with details as prescribed by India Accounting Standard 24 âRelated Party Transactionsâ. These transactions are in compliance with Section 177 and 188 of Companies Act, 2013.
(xiv) The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanation provided to us and based on our examination of records, the Company has not entered into any non-cash transactions with directors or persons connected with him.
(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
We have audited the internal financial controls over financial reporting of Tamilnadu Petroproducts Limited (âthe Companyâ) as of 31st March 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs Management is responsible for establishing and maintaining internal financial controls based on the internal control 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. 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 Companyâs 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 Companies Act, 2013.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting and the Standards of Auditing, to the extent applicable to an audit of internal financial controls, both issued by the Institute of Chartered Accountants of India. Those Standards and 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 over financial reporting 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 controls system over financial reporting and their operating effectiveness.
Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, 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 auditorâs 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 Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Companyâs internal financial control over financial reporting 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 Companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) 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 authorisations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or 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 over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
According to the information and explanations given to us and based on our audit, the Company has, in all material respects, adequate internal financial control over financial reporting and such internal financial control over financial reporting were operating effectively as at 31st March 2018 based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.
For R.G.N. Price & Co
Chartered Accountants
(Firm Regn No.002785S)
Mahesh Krishnan
Partner
Chennai, 14th May, 2018 (Membership No. 206520)
Mar 31, 2017
INDEPENDENT AUDITORâS REPORT TO THE MEMBERS OF TAMILNADU PETROPRODUCTS LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of TAMILNADU PETROPRODUCTS LIMITED (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2017, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone 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 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 prescribed 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 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.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
In conducting 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 of the standalone financial statements 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 standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2017, its profits and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit we report, to the extent applicable that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards prescribed under Section 133 of the Act.
e. On the basis of the written representations received from the directors as on March 31, 2017 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 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 Aâ. 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, as amended, in our opinion and to the best of our information and according to the explanations given to us:
i) The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements (Refer note 30 to the standalone financial statements).
ii) The Company did not have any long-term contracts and the Company did not have any material foreseeable losses on the derivative contracts.
iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
iv) The Company has provided requisite disclosures in the standalone financial statements as regards its holding and dealings in Specified Bank Notes as defined in the Notification S.O. 3407(E) dated the 8th November, 2016 of the Ministry of Finance, during the period from 8 November 2016 to 30 December 2016. Based on audit procedures performed and the representations provided to us by the management, we report that the disclosures are in accordance with the books of account maintained by the Company and as produced to us by the Management (Refer note 45 to the standalone financial statements).
2. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
We have audited the internal financial controls over financial reporting of TAMILNADU PETROPRODUCTS LIMITED (âthe Companyâ) as of March 31, 2017 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on âthe internal control 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 Indiaâ. 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 respective companyâs 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 Companies Act, 2013.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. 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 over financial reporting 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 controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing whether the risk of a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, 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 Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting 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 companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) 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 (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or 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 over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting 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 over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2017, based on âthe internal control over financial reporting criteria established by the respective 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 Indiaâ.
(Referred to in paragraph 2 under âReport on Other Legal and Regulatory Requirementsâ Section of our report to the members of Tamilnadu Petro products Limited on the accounts for the year ended March 31, 2017)
(i) In respect of its fixed assets :
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The fixed assets where physically verified during the year by the Management in accordance with a regular programme of verification which, in our opinion, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanation given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and based on the examination of the registered title deeds provided to us, we report that, the title deeds, comprising the immovable properties of land and buildings which are freehold and the buildings constructed on the leasehold land are held in the name of the Company as at the balance sheet date.
(ii) In respect of its inventory:
As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals and no material discrepancies were noticed on physical verification.
(iii) In our opinion and according to the information and explanations given to us , the Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013.
(iv) The Company has not granted any loans, made investments or provided guarantees during the year and hence reporting under clause (iv) of the CARO 2016 is not applicable.
(v) According to the information and explanations given to us, the Company has not accepted any deposits during the year. There were no unclaimed deposits at any time during the year.
(vi) We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended prescribed by the Central Government under sub-Section (1) of Section 148 of the Companies Act, 2013, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) According to the information and explanations given to us in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues including Provident Fund, Employeesâ State Insurance, Income tax, Sales Tax, Service Tax, Customs duty, Excise duty, Value Added Tax, cess and other material statutory dues applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable by the Company, in respect of Provident Fund, Employees State Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, cess and other material statutory dues in arrears as at March 31, 2017 for a period of more than six months from the date they became payable.
(c) Details of dues of Income Tax , Sales Tax , Service Tax and Excise Duty which have not been deposited as on March 31, 2017 on account of disputes are given below:
Nature of Statute |
Nature of |
Forum where dispute |
Financial Year |
Amount involved |
Amount unpaid |
dues |
is pending |
(Rs, in lakhs) |
(Rs, in lakhs) |
||
Various State Sales |
Sales Tax |
Tribunal |
1993-1994 to |
1,669.97 |
1,658.76 |
Tax Acts |
High Court |
2002-03 2006-07 |
58.08 |
58.08 |
|
Central Excise Act |
Excise duty |
High Court |
1994-2002 |
51.73 |
13.89 |
Tribunal |
2001-2013 |
304.54 |
289.71 |
||
Commissioner |
2002-2007 |
5.11 |
5.11 |
||
(Appeals) |
10.90 |
10.90 |
|||
Deputy Commissioner |
1994-1997 |
||||
Finance Act |
Service Tax |
Tribunal |
1997-2014 |
583.50 |
517.43 |
Commissioner (Appeals) |
2005-2006 |
6.95 |
0.05 |
||
Assessment Year |
|||||
Income Tax Act |
Income Tax |
High Court |
2000-01 |
2,956.13 |
60.16 |
Tribunal |
2012-13 |
824.92 |
372.57 |
||
CIT (A) |
2001-02 to 2003-04 2009-10 to 2011-12 2013-14 |
5,906.61 1,919.11 276.76 |
228.99 959.25 220.55 |
In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of the interest free sales tax deferral loan availed from the Government and in the repayment of loans or borrowings to financial institutions and banks; The Company has not issued any debentures.
(viii) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) or term loans and hence reporting under clause (ix) of the CARO 2016 Order is not applicable.
(ix) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company by its officers or employees has been noticed or reported during the year.
(x) In our opinion and according to the information and explanations given to us, the Company has paid / provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Companies Act, 2013.
(xi) The Company is not a Nidhi Company and hence reporting under clause (xii) of the CARO 2016 Order is not applicable.
(xii) In our opinion and according to the information and explanations given to us the Company is in compliance with Section 177 and 188 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements etc. as required by the applicable accounting standards.
(xiii) During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of CARO 2016 is not applicable to the Company.
(xiv) In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or persons connected with him and hence provisions of Section 192 of the Companies Act, 2013 are not applicable.
(xv) The Company is not required to be registered under Section 45-I of the Reserve Bank of India Act, 1934.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firmâs Registration No. 008072S)
M.K. Ananthanarayanan
Partner
Chennai, May 16, 2017 (Membership No. 19521)
Mar 31, 2016
INDEPENDENT AUDITORSâ REPORT
TO THE MEMBERS OF TAMILNADU PETROPRODUCTS LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of TAMILNADU PETROPRODUCTS LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31 March, 2016, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone 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 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 prescribed under section 133 of the Act, as applicable.
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.
Auditorsâ 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 there under and the Order under section 143 (11) of the Act.
We conducted our audit of the standalone financial statements 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 auditorsâ 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 Companyâs 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 Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March, 2016, its profits and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
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.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards prescribed under section 133 of the Act, as applicable.
e) On the basis of the written representations received from the directors as on 31 March, 2016 taken on record by the Board of Directors, none of the directors are disqualified as on 31 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 âAnnexure Aâ. 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 Auditorsâ 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;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company during the year.
2. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
(Referred to in paragraph 2 under âReport on Other Legal and Regulatory Requirementsâ section of our report to the members of Tamilnadu Petroproducts Limited on the accounts for the year ended 31 March, 2016)
(i) In respect of its fixed assets :
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The fixed assets where physically verified during the year by the Management in accordance with a regular programme of verification which, in our opinion, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanation given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and based on the examination of the registered title deeds provided to us, we report that, the title deeds, comprising the immovable properties of land and buildings, are held in the name of the Company as at the balance sheet date.
(ii) In respect of its inventory:
(a) As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals and no material discrepancies were noticed on physical verification.
(iii) In our opinion and according to the information and explanations given to us , the Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013.
(iv) The Company has not granted any loans, made investments or provide guarantees and hence reporting under clause (iv) of the CARO 2016 is not applicable.
(v) According to the information and explanations given to us, the Company has not accepted any deposit during the year. There were no unclaimed deposits at any time during the year.
(vi) We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended prescribed by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) According to the information and explanations given to us in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues including Provident Fund, Employeesâ State Insurance, Income tax, Sales Tax, Service Tax, Customs duty, Excise duty, Value Added Tax, cess and other material statutory dues applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable by the Company, in respect of Provident Fund, Employees State Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, cess and other material statutory dues in arrears as at 31 March , 2016 for a period of more than six months from the date they became payable.
(c) Details of dues of Income Tax , Sales Tax , Service Tax and Excise Duty which have not been deposited as on 31 March, 2016 on account of disputes are given below:
Nature of Statute |
Nature of dues |
Forum where dispute is pending |
Financial Year |
Amount involved (Rs. in lakhs) |
Amount unpaid (Rs. In lakhs) |
Various State |
Sales Tax |
Tribunal |
1993-1994 to 2002-03 |
1,669.97 |
1,658.76 |
Sales Tax Acts |
High Court |
2006-07 |
58.08 |
58.08 |
|
Central Excise |
Excise duty |
High Court |
1994-2002 |
51.73 |
13.89 |
Act |
Tribunal |
2001-2013 |
304.54 |
304.54 |
|
Commissioner (Appeals) |
2002-2007 |
5.11 |
5.11 |
||
Deputy Commissioner |
1994-1997 |
10.90 |
10.90 |
||
Finance Act |
Service Tax |
Tribunal |
1997-2011 |
386.44 |
329.03 |
Commissioner (Appeals) |
2005-2006 |
6.95 |
0.05 |
||
Income Tax Act |
Income Tax |
Assessment Year |
|||
High Court |
2000-01 |
2,956.13 |
60.16 |
||
Tribunal |
2001-02 to 2003-04 |
5,906.61 |
228.99 |
||
CIT (A) |
2009-10 to 2011-12 |
1,732.26 |
792.49 |
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to financial institutions, banks and government. The Company has not issued any debentures.
(ix) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) or term loans and hence reporting under clause (ix) of the CARO 2016 Order is not applicable.
(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no fraud on the Company by its officers or employees has been noticed or reported during the year.
(xi) In our opinion and according to the information and explanations given to us, the Company has paid / provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the CARO 2016 Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us the Company is in compliance with Section 188 and 177 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements etc. as required by the applicable accounting standards.
(xiv) During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of CARO 2016 is not applicable to the Company.
(xv) In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or persons connected with him and hence provisions of section 192 of the Companies Act, 2013 are not applicable.
(xvi) The Company is not required to be registered under section 45-I of the Reserve Bank of India Act, 1934
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firmâs Registration No. 008072S)
Bhavani Balasubramanian
Partner
Chennai, 30th May, 2016 (Membership No. 22156)
Mar 31, 2015
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of
TAMILNADU PETROPRODUCTS LIMITED ("the Company"), which comprise the
Balance Sheet as at 31st March, 2015, the Statement of Profit and Loss
and the Cash Flow Statement for the year then ended, and a summary of
the significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134 (5) of the Companies Act, 2013 ("the Act")with respect
to the preparation of these 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.
Auditors' Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. 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, 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 on these financial
statements.
Emphasis of Matter
We refer to Note no. 39 of the Notes forming part of standalone
financial statements regarding the suspension of operations of the
Epichlorohydrin plant. Considering the actions proposed to revive the
operations of the plant as explained in the said Note, the management
has assessed that there would be no impairment to the carrying value of
the plant as at the Balance sheet date. We draw attention to the fact
that the revenue generation from this plant would depend on the
successful execution of the proposed plan for manufacture of the
alternative product. This being a technical matter and is subject to
uncertainty, we have relied on the estimates and assumptions made by
the management in arriving at the recoverable value of the plant.
Our opinion is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government in terms of Section 143 (11)
of the Act, we give in the Annexure a statement on the matters
specified in paragraph 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, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) The matter described in the Emphasis of Matter paragraph above and
continuing cash losses incurred by the Company as reported in clause
(viii) in the Annexure to this audit report, in our opinion, may have
an adverse effect on the functioning of the Company.
(f) On the basis of the 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 on31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(g) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit & Auditors)
Rule, 2014, in our opinion and to the best of our information and
according to the explanation given to us :
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements.
ii. The Company did not have material foreseeable losses on long term
contracts and there were no derivative contracts.
iii. There were no amounts which were required to be transferred to
the Investor Education and Protection Fund by the Company during the
year.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
(Referred to under 'Report on Other Legal and Regulatory Requirements'
section of our report to the members of Tamilnadu Petroproducts Limited
on the accounts for the year ended 31st March 2015)
(i) Having regard to the nature of the Company's business / activities
/ result, clause (v) of the Order is not applicable to the Company in
the current year.
(ii) In respect of Fixed assets :
(a) The company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) The fixed assets where physically verified during the year by the
Management in accordance with a regular programme of verification
which, in our opinion, provides for physical verification of all the
fixed assets at reasonable intervals, According to the information and
explanation given to us, no material discrepancies were noticed on such
verification.
(iii) In respect of its inventory:
(a) As explained to us, the inventories were physically verified during
the year by the Management at reasonable intervals.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
(iv) In our opinion and according to the information and explanations
given to us , the Company has not granted any loans, secured or
unsecured, to companies, firms or other parties covered in the Register
maintained under Section 189 of the Companies Act.
(v) 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 with regard
to purchase of inventory and fixed assets and sale of inventory and
services. During the course of our audit, we have not observed any
continuing failure to correct major weakness in such internal control
system.
(vi) We have broadly reviewed the cost records maintained by the
Company specified by the Central Government under sub-section (1) of
Section 48 of the Companies Act, 2013 and are of the opinion that prima
facie the prescribed cost records have been maintained. We have,
however, not made a detailed examination of the cost records with a
view to determine whether they are accurate or complete.
(vii) According to the information and explanations given to us in
respect of statutory dues:
(a) The Company has been generally regular in depositing undisputed
statutory dues including provident fund, employees' state insurance,
income tax, wealth tax, sales tax, service tax, value added tax, duty
of customs, duty of excise, cess and other material statutory dues
applicable to it with the appropriate authorities and there were no
outstanding statutory dues as at the last day of the financial year for
a period of more than six months from the date they became payable.
(b) Details of dues of Income Tax , Sales Tax , Service Tax and Excise
Duty which have not been deposited as on March 31, 2015 on account of
disputes are given below:
Statute Nature of dues Forum where dispute is pending
Various State Sales Tax Tribunal
Sales Tax Acts
High Court
Central Excise Act Excise duty High Court
Tribunal
Commissioner (Appeals)
Deputy Commissioner
Finance Act Service Tax Tribunal
Commissioner (Appeals)
Income Tax Act Income Tax High Court
Tribunal
CIT (A)
Statute Financial Year Amount involved
(Rs. in lakhs)
Various State
Sales Tax Acts 1993-1994 to 2002-03 1,659
2006-07 58.08
Central Excise Act 1994-2002 13.89
2001-2013 304.54
2002-2007 5.11
1994-1997 10.90
Finance Act 1997-2011 330.98
2005-2006 0.05
Income Tax Act Assessment Year 2000-01 60.16
Assessment year 2001-02 2.29
Assessment Year 2002-03 151.16
Assessment Year 2003-04 75.54
Assessment Year 2009-10 248.08
Assessment Year 2010-11 252.24
Assessment Year 2011-12 391.37
(c) There are no amounts required to be transferred to the Investor
Education and Protection Fund by the Company during the year.
(viii) The accumulated losses of the Company at the end of the
financial year are less than fifty percent of the networth and the
Company has incurred cash losses during the financial year covered by
our audit and in the immediately preceding financial year.
(ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues in
respect of term loans.
(x) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from bank or financial institutions.
(xi) In our opinion and according to the information and explanations
given to us, the term loans have been applied by the Company during the
year for the purposes for which they were obtained.
(xii) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company has been noticed or reported during the year.
For Deloitte Haskins & Sells
Chartered Accountants
(Firm's Registration No. 008072S)
M.K. Anantha narayanan
Place : Chennai Partner
Date : May 19, 2015 (Membership No. 19521)
Mar 31, 2014
We have audited the accompanying fi nancial statements of TAMILNADU
PETROPRODUCTS LIMITED ("the Company"), which comprise the Balance Sheet
as at 31st March, 2014, the Statement of profit and Loss and the Cash
Flow Statement for the year then ended, and a summary of the signifi
cant accounting policies and other explanatory information
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these fi
nancial statements that give a true and fair view of the fi nancial
position, fi nancial performance and cash fl ows of the Company in
accordance with the Accounting Standards notifi ed under the Companies
Act, 1956 ("the Act") (which continue to be applicable in respect of
Section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate
Affairs) and in accordance with the accounting principles generally
accepted in India. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the fi nancial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these fi nancial
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 fi nancial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the fi nancial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the fi nancial
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 fi nancial
statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the Company''s internal control. An audit also
includes evaluating the appropriateness of the accounting policies used
and the reasonableness of the accounting estimates made by the
Management, as well as evaluating the overall presentation of the fi
nancial statements.
We believe that the audit evidence we have obtained is suffi cient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid fi nancial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
(b) in the case of the Statement of profit and Loss, of the loss of
the Company for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash fl ows of the
Company for the year ended on that date.
Emphasis of Matter
We refer to Note no. 42 of the Notes forming part of the fi nancial
statements regarding the suspension of operations of the
Epichlorohydrinplant. Considering the actions proposed to revive the
operations of the plant as explained in the said Note, the management
has assessed that there would be no impairment to the carrying value of
the plant as at the Balance sheet date. We draw attention to the fact
that the revenue generation from this plant would depend on the
successful execution of the proposed plan for manufacture of the
alternate product. This being a technical matter and is subject to
uncertainty, we have relied on the estimates and assumptions made by
the management in arriving at the recoverable value of the plant.
Our opinion is not qualifi ed in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government in terms of Section 227(4A) of
the Act, we give in the Annexure a statement on the matters specifi ed
in paragraphs 4 and 5 of the Order.
2. 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 it appears from our examination of
those books
(c) The Balance Sheet, the Statement of profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account
(d) In our opinion, the Balance Sheet, the Statement of profit and
Loss, and the Cash Flow Statement comply with the Accounting Standards
notifi ed under the Act (which continue to be applicable in respect of
Section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate
Affairs).
(e) On the basis of the written representations received from the
directors as on 31st March, 2014 taken on record by the Board of
Directors, none of the directors is disqualifi ed as on 31st March,
2014 from being appointed as a director in terms of Section 274(1)(g)
of the Act.
Annexure to the Independent Auditors'' Report
Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of the Independent auditors'' report to the
members of Tamilnadu Petroproducts Limited on the accounts for the year
ended March 31, 2014
i) Having regard to the nature of the Company''s
business/activities/results during the year, Clauses (vi), (xii),
(xiii), (xiv), (xviii), (xix) and (xx) of Paragraph 4 of the Order are
not applicable to the Company.
ii) In respect of its fi xed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fi xed assets.
b) The fi xed assets are physically verifi ed by the Management in
accordance with a regular programme of verifi cation which, in our
opinion, provides for physical verifi cation of all the fi xed assets
at reasonable intervals. According to the information and explanation
given to us, no material discrepancies were noticed on such verifi
cation.
c) The fi xed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fi xed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
iii) In respect of its inventory:
a) As explained to us, the inventories were physically verifi ed during
the year by the Management at reasonable intervals.
b) In our opinion and according to the information and explanation
given to us, the procedures of physical verifi cation of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verifi cation.
iv) The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, fi rms or other parties covered in the
Register maintained under Section 301 of the Companies Act, 1956.
v) In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased are of special nature and suitable alternative sources are
not readily available for obtaining comparable quotations, there is an
adequate internal control system commensurate with the size of the
Company and the nature of its business with regard to purchase of
inventory and fi xed assets and sale of goods and services. During the
course of our audit, we have not observed any major weakness in such
internal control system.
vi) According to the information and explanations given to us and to
the best of our knowledge and belief there are no contracts or
arrangements that need to be entered in the Register maintained in
pursuance of Section 301 of the Companies Act, 1956.
vii) In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
viii) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1) (d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determining whether they are accurate or complete.
ix) According to the information and explanations given to us in
respect of statutory dues:
a) The Company has generally been regular in depositing undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees'' State Insurance, Income Tax, Value Added
Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess
and other material statutory dues applicable to it, with the
appropriate authorities.
b) There were no undisputed amounts payable in respect of Provident
Fund, Investor Education and Protection Fund, Employees'' State
Insurance, Income Tax, Value Added Tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and other material statutory dues
in arrears as at 31st March, 2014 for a period of more than six months
from the date they became payable.
c) Details of dues, if any, of Income tax, Sales Tax, Wealth tax,
Service tax, Customs duty, Excise duty and Cess which have not been
deposited as on 31st March, 2014 on account of disputes are given
below:
Forum where dispute is
Statute Nature of dues pending
Various State Sales Tax Tribunal
Sales Tax Acts High Court
Central Excise
Act Excise duty High Court
Tribunal
Commissioner (Appeals)
Deputy Commissioner
Finance Act Service tax Tribunal
Commissioner (Appeals)
Amount involved net
Period to which the
of deposits
amount relates (Rs. in Lacs)
1993 - 1994 to 2002-2003 1,659.00
2006 - 2007 58.08
1994 Â 2002 13.89
2001 Â 2005 206.50
2002 Â 2007 5.11
1994 Â 1997 10.90
1997 Â 2009 311.38
2005 Â 2006 0.05
Statute Nature of dues Forum where dispute is
pending
Income Tax Act Income tax High court
Tribunal
CIT (A)
Amount involved net Period to which the
of deposits
amount relates (Rs. in Lacs)
Assessment Year 2000-01 60.16
Assessment Year 2001-02 2.29
Assessment Year 2002-03 151.16
Assessment Year 2003-04 75.54
Assessment Year 2010-11 252.24
x) The Company does not have accumulated losses at the end of the fi
nancial year. The Company has incurred cash losses during the fi
nancial year covered by our audit and in the immediately preceding fi
nancial year.
xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to fi
nancial institutions and banks. The Company has not issued any
debentures.
xii) According to the information and explanations given to us, the
Company has not given guarantees for loans taken by others from banks
and fi nancial institutions.
xiii) In our opinion and according to the information and explanations
given to us, the term loans have been applied by the Company for the
purposes for which they were obtained.
xiv) In our opinion and according to the information and explanations
given to us, and on an overall examination of the Balance Sheet of the
Company, we report that funds raised on short-term basis have, prima
facie, not been used during the year for long- term investment.
xv) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company has been noticed or reported during the year.
For Deloitte Haskins & Sells
Chartered Accountants
(Firm''s Registration No. 008072S)
M.K. Ananthanarayanan
Place : Chennai Partner
Date : 27th May 2014 (Membership No. 19521)
Mar 31, 2013
1. The accompanying abridged financial statements, which comprise the
Abridged Balance Sheet as at 31 st March 2013, the Abridged Statement
of Profit and Loss, and Abridged Cash Flow Statement for the year then
ended, and related Notes, are derived from the audited financial
statements of TAMILNADU PETROPRODUCTS LIMITED (''the Company'') for the
year ended 31st March 2013. We expressed an unmodified audit opinion on
those financial statements in our report dated 22nd April, 2013.
2. The abridged financial statements do not contain all the
disclosures required by the Accounting Standards referred to in Section
211 (3C) of the Companies Act, 1956 (the Act,) applied in the
Preparation of the audited financial statements of the Company. Reading
the abridged financial statements, therefore, is not a substitute for
reading the audited financial statements of the Company.
Management''s Responsibility for the Abridged Financial Statements
3. Management is responsible for the preparation of the abridged
financial statements in accordance with Rule 7A of the Companies
(Central Government''s) General Rules and forms, 1956 (as amended),
based on the audited financial statements of the Company for the year
ended March 31, 2013 prepared in accordance with the Accounting
Standards referred to in Section 211 (3C) of the Act and accounting
principles generally accepted in India.
Auditors'' Responsibility
4. Our responsibility is to express an opinion on the abridged
financial statements based on our procedures conducted in accordance
with the Standard on Auditing (SA) 810, "Engagements to Report on
Summary Financial Statements" issued by the Institute of Chartered
Accountants of India.
Opinion
5. In our opinion, the abridged financial statements prepared in
accordance with Rule 7A of the Companies (Central Government''s) General
Rules and forms, 1956 (as amended), derived from the audited financial
statements of the Company for the year ended March 31, 2013 prepared in
accordance with Accounting Standards referred to in Section 211 (3C) of
the Act and accounting principles generally accepted in India, are a
fair summary of those financial statements.
For Deloitte Haskins & Sells
Chartered Accountants
(Registration No. 008072S)
M.K. Ananthanarayanan
Place : Chennai Partner
Date : 22ndApril 2013 (Membership No. 19521)
Mar 31, 2012
1. We have audited the attached Balance Sheet of Tamilnadu
Petroproducts Limited ("the Company") as at 31st March, 2012, the
Statement of Profit and Loss and the Cash Flow Statement of the company
for the year ended on that date, both 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 the 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 misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and the disclosures in the financial statements. An audit also
includes assessing the accounting principles used and the 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. As required by the Companies (Auditor's Report) Order, 2003 (CARO)
issued by the Central Government in terms of Section 227(4A) of the
Companies Act, 1956, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, 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 it appears from our examination of
those books;
(c) the Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account;
(d) in our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement dealt with by this report are in compliance
with the Accounting Standards referred to in Section 211(3C) of the
Companies Act, 1956;
(e) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts 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 the Cash Flow Statement, of the cash flows for the
year ended on that date.
5. On the basis of the written representations received from the
Directors as on 31st March, 2012 taken on record by the Board of
Directors, none of the Directors are disqualified as on 31st March,
2012 from being appointed as a director in terms of Section 274(1)(g)
of the Companies Act, 1956.
i) Having regard to the nature of the Company's
business/activities/result, clauses (v), (vi), (x), (xii) to (xiv) and
(xviii) to (xx) of CARO are not applicable.
ii) In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) The fixed assets are physically verified by the Management in
accordance with a programme of verification which, in our opinion,
provides for physical verification of all the fixed assets at
reasonable intervals. According to the information and explanation
given to us, no material discrepancies were noticed on such
verification.
c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
iii) In respect of its inventory:
a) As explained to us, the inventories were physically verified during
the year by the Management at reasonable intervals.
b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification
iv) The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties listed in the
Register maintained under Section 301 of the Companies Act, 1956.
v) In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased are of special nature and suitable alternative sources are
not readily available for obtaining comparable quotations, there is an
adequate internal control system commensurate with the size of the
Company and the nature of its business with regard to purchase of
inventory and fixed assets and sale of goods and services. During the
course of our audit, we have not observed any major weakness in such
internal control system.
vi) In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
vii) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1) (d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determining whether they are accurate or complete.
viii) According to the information and explanations given to us in
respect of statutory dues:
a) The Company has generally been regular in depositing undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees' State Insurance, Income Tax, Value Added
Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess
and other material statutory dues applicable to it, with the
appropriate authorities.
b) There were no undisputed amounts payable in respect of Provident
Fund, Investor Education and Protection Fund, Employees' State
Insurance, Income Tax, Value Added Tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and other material statutory dues
in arrears as at 31st March, 2012 for a period of more than six months
from the date they became payable.
c) Details of dues, if any, of Income tax, Sales Tax, Wealth tax,
Service tax, Customs duty, Excise duty and Cess which have not been
deposited as on March 31, 2012 on account of disputes are given below:
Amount
involved
Nature of Forum where
dispute Period to which
the
Statute * net of
deposits
dues is pending amount relates (Rs. in Lacs)
Sales Tribunal 1993 - 1994 to
2002-2003 1,659.00
Various State
Sales Tax
Acts tax High Court 2006 - 2007 58.08
High Court 1994 - 2002 13.89
Tribunal 2001 - 2005 206.50
Central
Excise Act Excise duty Commissioner 2002 - 2007 5.11
(Appeals)
Deputy
Commissioner 1994 - 1997 10.90
Tribunal 1997 - 2009 336.38
Finance Act Service tax Commissioner 2005 - 2006 0.05
(Appeals)
Income Tax
Act High court Assessment
Year 2000-01 60.16
Income tax
Tribunal Assessment Year
2002-03 151.16
ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks and financial institutions.
x) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions.
xi) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained.
xii) In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet, we
report that, prima facie, funds raised on short-term basis have not
been used during the year for long- term investment.
xiii) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no fraud on the
Company has been noticed or reported during the year.
For Deloitte Haskins & Sells
Chartered Accountants
(Registration No.008072S)
B.Ramaratnam
Place: Chennai Partner
Date : 26th April 2012 Membership No. 21209
Mar 31, 2011
1. We have audited the attached Balance Sheet of Tamilnadu
Petroproducts Limited (Ãthe CompanyÃ) as at 31st March, 2011, the
Profit and Loss Account and the Cash Flow Statement of the company for
the year ended on that date, both 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 the 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 misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and the disclosures in the financial statements. An audit also includes
assessing the accounting principles used and the 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. As required by the Companies (AuditorÃs Report) Order, 2003 (CARO)
issued by the Central Government in terms of Section 227(4A) of the
Companies Act, 1956, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, 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 it appears from our examination of
those books;
(c) the Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) in our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report are in compliance
with the Accounting Standards referred to in Section 211(3C) of the
Companies Act, 1956;
(e) as stated in Note 19, assets held by the Company amounting to Rs.
2,123.63 lacs are expected to be transferred to the proposed overseas
project at not less than cost. We are unable to express an opinion on
the realisable value of these assets. Our audit report for the
previous year was also similarly modified.
(f) subject to paragraph (e) above, the effect of which could not be
determined, in our opinion and to the best of our information and
according to the explanations given to us, the said accounts 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 the Cash Flow Statement, of the cash flows for the
year ended on that date.
5. On the basis of the written representations received from the
Directors as on 31st March, 2011 taken on record by the Board of
Directors, none of the Directors is disqualified as on 31st March, 2011
from being appointed as a director in terms of Section 274(1)(g) of the
Companies Act, 1956.
ANNEXURE TO THE AUDITORSÃ REPORT (Referred to in paragraph 3 of our
report of even date)
i) Having regard to the nature of the CompanyÃs
business/activities/result, clauses (v), (vi), (x), (xii) to (xiv) and
(xviii) to (xx) of CARO are not applicable.
ii) In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) The fixed assets are physically verified by the Management in
accordance with a regular programme of verification which, in our
opinion, provides for physical verification of all the fixed assets at
reasonable intervals. According to the information and explanation
given to us, no material discrepancies were noticed on such
verification.
c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
iii) In respect of its inventory:
a) As explained to us, the inventories were physically verified during
the year by the Management at reasonable intervals.
b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
iv) The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties listed in the
Register maintained under Section 301 of the Companies Act, 1956.
v) In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased are of special nature and suitable alternative sources are
not readily available for obtaining comparable quotations, there is an
adequate internal control system commensurate with the size of the
Company and the nature of its business with regard to purchase of
inventory and fixed assets and sale of goods and services. During the
course of our audit, we have not observed any major weakness in such
internal control system.
vi) In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
vii) We have broadly reviewed the books of accounts maintained by the
Company, pursuant to the Rules made by the Central Government for the
maintenance of cost records under Section 209(1) (d) of the Companies
Act, 1956 in respect of manufacturing of Linear Alkyl Benzene and
Caustic Soda and are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. We have, however,
not made a detailed examination of the records with a view to
determining whether they are accurate or complete. To the best of our
knowledge and according to the information and explanations given to
us, the Central Government has not prescribed the maintenance of cost
records for any other product of the Company.
viii) According to the information and explanations given to us in
respect of statutory dues:
a) The Company has generally been regular in depositing undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employeesà State Insurance, Income Tax, Value Added
Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess
and other material statutory dues applicable to it, with the
appropriate authorities.
b) There were no undisputed amounts payable in respect of Provident
Fund, Investor Education and Protection Fund, Employeesà State
Insurance, Income Tax, Value Added Tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and other material statutory dues
in arrears as at 31st March, 2011 for a period of more than six months
from the date they became payable.
c) Details of dues, if any, of Income tax, Sales Tax, Wealth tax,
Service tax, Customs duty, Excise duty and Cess which have not been
deposited as on March 31, 2011 on account of disputes are given below:
Amount involved
Forum where
dispute Period to
which the
Statute Nature of
dues net of deposits
is pending amount relates (Rs. in Lacs)
Tribunal 1993 - 1994 1,659.00
Various State
Sales Sales tax
to 2002-2003
Tax Acts
High Court 2006 - 2007 58.08
High Court 1994 - 2002 13.89
Tribunal 2001 - 2005 206.50
Central
Excise Act Excise duty Commissioner
(Appeals) 2002 Ã 2007 5.11
Deputy
Commissioner 1994 Ã 1997 10.90
Tribunal 1997 Ã 2006 89.64
Finance Act Service tax
Commissioner
(Appeals) 2005 Ã 2006 0.05
High Court Assessment Year 60.16
2000-01
Income Tax Act
Tribunal Assessment Year 151.16
Income tax
2002-03
ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks and financial institutions.
x) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions.
xi) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained.
xii) In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet, we
report that, prima facie, funds raised on short-term basis have not
been used during the year for long term investment.
xiii) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no fraud on the
Company has been noticed or reported during the year.
For Deloitte Haskins & Sells
Chartered Accountants
(Registration No. 008072S)
B. Ramaratnam
Partner
Membership No. 21209
Place: Chennai
Date : 27th April 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of Tamilnadu
Petroproducts Limited ("the Company") as at 31st March, 2010, the
Profit and Loss Account and the Cash Flow Statement of the company for
the year ended on that date, both annexed thereto. These financial
statements are the responsibility of the Companys Management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
2. We conducted our audit in accordance with the 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 misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and the disclosures in the financial statements. An audit also
includes assessing the accounting principles used and the 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. As required by the Companies (Auditors Report) Order, 2003 (CARO)
issued by the Central Government in terms of Section 227(4A) of the
Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report as follows:
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 it appears from our examination of
those books;
c. the Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report are in compliance
with the Accounting Standards referred to in Section 211 (3C) of the
Companies Act, 1956;
e. the Company has, during the period 1995-2003, invested Rs.2764.50
lacs in SPIC Electric Power Corporation Private Limited and given
advances against equity amounting to Rs.33.91 lacs during the financial
years 2006 to 2008 for which no provision has been considered necessary
by the management for the reasons stated in note 21. In view of the
considerable delay in the implementation of the project we are unable
to express an opinion on the provision, if any, required in respect of
the said investment and advances against equity;
f. as stated in Note 22, assets held by the company amounting to Rs.
2123.63 lacs are expected to be transferred to the proposed overseas
project at not less than cost. We are unable to express an opinion on
the realisable value of these assets.
g. subject to paragraphs (e) & (f) above, the effect of which could
not be determined, in our opinion and to the best of our information
and according to the explanations given to us, the said accounts 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 the cash flow statement, of the cash flows for the
year ended on that date.
5. On the basis of the written representations received from the
Directors as on 31st March, 2010 taken on record by the Board of
Directors, none of the Directors is disqualified as on 31st March, 2010
from being appointed as a director in terms of Section 274(1 )(g) of
the Companies Act, 1956.
i. In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) The fixed assets are physically verified by the Management in
accordance with a regular programme of verification which, in our
opinion, provides for physical verification of all the fixed assets at
reasonable intervals. According to the information and explanation
given to us, no material discrepancies were noticed on such
verification.
c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
ii. In respect of its inventory:
a) As explained to us, the inventories were physically verified during
the year by the Management at reasonable intervals.
b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification
iii. The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties listed in the
Register maintained under Section 301 of the Companies Act, 1956.
iv. In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased are of special nature and suitable alternative sources are
not readily available for obtaining comparable quotations, there is an
adequate internal control system commensurate with the size of the
company and the nature of its business with regard to purchase of
inventory and fixed assets and sale of goods and services. During the
course of our audit, we have not observed any major weakness in such
internal control system.
v. In our opinion and according to the information and explanations
given to us, there are no transactions that need to be entered in the
register maintained under section 301 of the Companies Act, 1956.
vi. According to the information and explanations given to us, the
Company has not accepted any deposit from the public during the year to
which the provisions of section 58A and 58AA of the Companies Act, 1956
and the Rules framed there under are applicable.
vii. In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
viii. We have broadly reviewed the books of accounts maintained by the
Company, pursuant to the Rules made by the Central Government for the
maintenance of cost records under Section 209(1) (d) of the Companies
Act, 1956 in respect of manufacturing of Linear Alkyl Benzene and
Caustic Soda and are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. We have, however,
not made a detailed examination of the records with a view to
determining whether they are accurate or complete. To the best of our
knowledge and according to the information and explanations given to
us, the Central Government has not prescribed the maintenance of cost
records for any other product of the Company.
ix. According to the information and explanations given
to us in respect of statutory dues:
a. The Company has generally been regular in depositing undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees State Insurance, Income Tax, Value Added
Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess
and other material statutory dues applicable to it, with the
appropriate authorities.
b. There were no undisputed amounts payable in respect of Provident
Fund, Investor Education and Protection Fund, Employees State
Insurance, Income Tax, Value Added Tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and other material statutory dues
in arrears as at 31st March, 2010 for a period of more than six months
from the date they became payable.
c. Details of dues, if any, of Income tax, Sales Tax, Wealth tax,
Service tax, Customs duty, Excise duty and Cess which have not been
deposited as on March 31, 2010 on account of disputes are given below:
Nature of Forum where dispute
Statute dues is pending
Various State Sales Tax Acts Sales tax Tribunal
High Court
Tribunal
Central Excise Act Excise duty
Commissioner(Appeals)
Deputy Commissioner
Tribunal
Finance Act Service tax
Commissioner (Appeals)
High court
Income Tax Act Income tax
Tribunal
Statute Period to which the Amount involved
amount relates net of deposits
(Rs. in Lacs)
Various State Sales 1993-94 to 2002-2003 1,659.00
Tax Acts
1994-2002 13.89
Central Excise Act 2001-2005 206.50
2002-2008 6.01
1994-1997 10.90
Finance Act 1997-2006 89.64
2005-2006 0.05
Income Tax Act Assessment Year 2000-01 79.05
Assessment Year 2002-03 151.16
x The Company has neither accumulated losses nor has it incurred
cash losses in the current financial year or in the immediately
preceding financial year.
xi In our opinion and according to the information and explanations
given to us,the Company has not defaulted in repayment of dues to
banks and financial institutions.
xii The Company has not granted any loans or advances on the basis
of security by way of pledge of shares, debentures and other
securities.
xiii The provisions of any special statute applicable to chit fund
and nidhi/mutual benefit fund/society are not applicable to the
Company.
xiv In our opinion and according to the information and explana
-tions given to us,the Company is not dealing or trading in shares,
securities,debentures and other investments.
xv In our opinion and according to the information and explanations
given to us,the Company has not given any guarantee for loans taken
by others from banks or financial institutions.
xvi In our opinion and according to the information and explanations
given to us,the term loans have been applied for the purposes for
which they were obtained.
xvii In our opinion and according to the information and explanat
-ions given to us and on an overall examination of the Balance Sheet,
we report that, prima facie,funds raised on short-term basis
have not been used during the year for long-term investment.
xviii According to the information and explanations given to us,
the Company has not made any preferential allotment of shares during
the year.
xix According to the information and explanations given to us,the
Company has not issued any debentures during the year.
xx According to the information and explanations given to us,the
Company has not raised any money by way of public issues during the
year.
xxi To the best our knowledge and according to the information and
explanations given to us,no fraud by the Company and no fraud on the
Company has been noticed or reported during the year.
Place:Chennai
Date:5th May 2010
For Deloitte Hgskins &Sells
Chartered Accountants
(Registration No.008072S)
B.Ramaratnam
Partner
Membership No.21209
IV FOREIGN CURRENCY TRANSACTIONS
Foreign currency transactions are accounted at the exchange rates
prevailing on the date of the transactions.
Foreign currency monetary assets and liabilities are translated at
exchange rates prevailing on the Balance Sheet date or rate at the time
of settlement, as applicable, and gain or loss arising on such
translation is adjusted to the profit and loss account. Forward cover
premium is recognised over the life of the contract.
V INVESTMENTS
Long term investments are valued at their acquisition cost, less
provision for diminution in value, other than temporary.
VI INVENTORIES
Inventories are valued at lower of cost and net realisable value except
stores and loose tools, which are valued at cost. The methods of
determination of cost of various categories of inventories are as
follows:
a. Stores, loose tools and raw materials at moving weighted average
rates.
b. Work-in-process and finished goods at full absorption costing
method.
VII REVENUE RECOGNITION
Sales is recognised at the point of despatch of materials to customers
from plant and stock points.
VIII EMPLOYEE BENEFITS
Short term employee benefits
Short term employee benefits are recognised as an expense at the
undiscounted amounts in the Profit and Loss account of the year in
which the related services are rendered.
Defined Contribution Plans
a) Superannuation:
This plan covers Wholetime directors and the staff of the Company and
is administered by the Life Insurance Corporation of India.
Contributions are made monthly at a predetermined rate to the Trust and
debited to the Profit and Loss account on an accrual basis.
Defined Benefits Plans
a) Provident Fund:
Contributions are made monthly at a predetermined rate to the Provident
Fund Trust managed by the company and debited to the Profit and Loss
account on an accrual basis. The interest rate payable by the Trust to
the beneficiaries is as notified by the Government. The Company has an
obligation to make good the shortfall, if any, between the return from
the investments of the Trust and the notified interest rates and
recognizes such shortfall as an expense.
b) Long term compensated absences:
Liability towards long term compensated absences is accrued based on an
actuarial valuation at the balance sheet date based on the projected
unit credit method and is not funded.
c) Gratuity:
The Company has an arrangement with the Life Insurance Corporation of
India to administer its Gratuity fund. Premium paid / payable is
determined based on an actuarial valuation carried out by LIC using the
projected unit credit method as on the Balance Sheet date and debited
to the Profit & Loss account on accrual basis. Actuarial gain or loss
is recognised in the statement of profit or loss as income or expense.
IX TAXES ON INCOME
a. Current tax is the amount of tax payable on the taxable income for
the year and determined in accordance with the provisions of the Income
Tax Act, 1961.
b. Deferred tax is recognized, on timing differences, being the
difference between taxable income and accounting income that originate
in one period and are capable of reversal in one or more subsequent
periods.
c. Deferred tax assets in respect of unabsorbed depreciation and carry
forward of losses are recognized if there is virtual certainty that
there will be sufficient future taxable income available to realize
such losses. Other deferred tax assets are recognized if there is
reasonable certainty that there will be sufficient future taxable
income available to realize such assets.
X Provisions and contingencies
1. A provision is recognized when the company has a present obligation
as a result of past events and it is probable that an outflow of
resources will be required to settle the obligation, in respect of
which a reliable estimate can be made. Provisions
are not discounted to present value and are determined based on best
estimate required to settle the obligation at the Balance Sheet date.
These are reviewed at each Balance Sheet date and adjusted to reflect
the current best estimates. Contingent liabilities are not recognized
but are disclosed in the notes to the accounts. Contingent assets are
neither recognised nor disclosed in the financial statement.
2. In December 1993, the company came out with Rights cum Public Issue
of Equity Shares. The difference between issued and subscribed capital
of 5,425 shares (previous year 5,425 shares) is due to said shares kept
in abeyance under Section 206 A of the Companies Act, 1956.
3. Research and development expenses incurred on revenue account is
Rs.34.16 lacs (Previous year Rs.34.13 lacs).
4. The depreciation charge for the year shown in the profit and loss
account is after deducting an amount of Rs. 20.11 lacs (previous year
Rs.20.11 lacs) representing additional depreciation arising on
revaluation of fixed assets withdrawn from revaluation reserve.
21. As at 31st March 2010 the Company has investments of Rs.2764.50
lacs in SPIC Electric Power Corporation (Private) Ltd., (SEPC) for
setting up a 525 MW coal based power project (power project) made
during the period 1995-2003 and advances against equity of Rs.33.91
lacs made during the period 2006-2008. The Company signed a Memorandum
of Understanding (MoU) with Tamilnadu Electricity Board (TNEB) in
February 1995 for setting up the power project at Tuticorin, Tamilnadu.
As per the Power Purchase Agreement (PPA), TNEB had committed to
provide Escrow. However, as there was a delay in allocation of Escrow
by TNEB, SEPC filed a Writ Petition in the Honble High Court seeking a
direction for allocation of Escrow. The Company is awaiting the outcome
of the case.
The Company, SEPC and an investor company executed on 28th May 2009, a
Shareholders & Share Subscription Agreement (SSA) broadly underlining
the obligations of the Shareholders with regard to the power project.
The investor company has agreed to bring in 74% of the equity for the
power project. They have been meeting all the expenses of SEPC since
August 2007 and have so far contributed a sum of Rs151.45lacs upto 31st
March 2010.
Due to non payment of lease rentals, Tuticorin Port Trust (TPT) sought
to repossess the land allotted to SEPC for the power project. SEPC
approached the Honble High Court of Madras for appointment of an
Arbitrator and by orders dated 18th July 2008 a sole arbitrator was
appointed to settle the dispute between SEPC and TPT. SEPC also filed
an appeal before the Division Bench of the High Court seeking an
interim injunction restraining TPT from transferring the land by way of
lease or otherwise to any other party. The Division Bench by its order
dated 4th September 2008 stated that SEPC is at liberty to approach the
arbitrator for seeking appropriate interim measure. Thereafter, the
arbitrator in his proceedings dated 13th February 2009 observed that
the rights of TPT and SEPC will be subject to the outcome of the
arbitration proceedings in so far as the disputed site is concerned.
A joint committee consisting of representative from Central Electricity
Authority (CEA)/TNEB/TPT recommended an alternative site for locating
the power project. SEPC after making preliminary investigations has
found the land suitable. Thereafter the alternate site has been
approved by TNEB/TPT/CEA. The arbitration proceedings between SEPC and
TPT have therefore been kept in abeyance.
The process of obtaining environmental clearance from Ministry of
Environmental and Forests (MoEF) is at an advanced stage. Demarcation
under the Coastal Zone Regulation, Contour Survey and Preliminary soil
investigations have been completed. The detailed project report with a
revised project cost is under consideration. SEPC will pay the arrears
of lease rentals on taking possession of the land.
The Ministry of Power, Government of India has clarified by a letter
dated 24th February 2010 that the change to an alternate site would not
alter the legal enforceability of the already concluded PPA between
SEPC and TNEB. SEPC has filed a petition dated 14th April 2010 with
Tamilnadu Electricity Regulatory Committee (TNERC) to direct TNEB to
act in accordance with the terms and conditions in the concluded PPA.
In view of the substantial progress achieved, the Company is confident
that the power project would be implemented.
22 During the year 2004, due to change in global market conditions for
Normal Paraffin, the company decided not to proceed with the expansion
of Normal paraffin capacity. The equipments and drawings pertaining to
this project amounting to Rs.2,123.63 lacs is expected to be
transferred at not less than cost to its proposed overseas project at
Singapore during 2011.
1) We have audited the attached Consolidated Balance Sheet of Tamilnadu
Petroproducts Limited (the Company"), its subsidiaries and jointly
controlled entities (the Company, its subsidiaries and jointly
controlled entities constitute the "the Group") as at 31 St March,
2010, the Consolidated Profit and Loss Account and the Consolidated
Cash Flow Statement of the Group for the year ended on that date, both
annexed thereto. The Consolidated Financial Statements include
investments in associates accounted on the equity method in accordance
with Accounting Standard 23 (Accounting for Investment in Associates in
Consolidated Financial Statements) and the jointly controlled entities
accounted in accordance with Accounting Standard 27 (Financial
Reporting of Interests in Joint Ventures) as notified under the
Companies (Accounting Standards) Rules, 2006. These financial
statements are the responsibility of the Companys Management and have
been prepared on the basis of the separate financial statements and
other information regarding components. Our responsibility is to
express an opinion on these Consolidated Financial Statements based on
our audit.
2) We conducted our audit in accordance with the 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 misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and the disclosures in the financial statements. An audit also
includes assessing the accounting principles used and the 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) (a) We did not audit the financial statements of
the subsidiaries and joint venture, whose financial statements reflect
total assets of Rs. 18,435.32 lacs, as at 31st March 2010, total
revenues of Rs.2,098.66 lacs and net cash outflows amounting to Rs.
1,430.49 lacs for the year ended on that date as considered in the
Consolidated Financial Statements. These financial statements have been
audited by other auditors whose reports have been furnished to us, and
our opinion in so far as it relates to the amounts included in respect
of these subsidiaries and joint ventures is based solely on the reports
of the other auditors.
(b) The financial statements of one associate, which reflect the
Groups share of profits of Rs.247.18 lacs for the year ended March 31,
2010 and Groups share of profits of Rs.379.21 lacs upto March 31, 2010
are not audited and we have relied upon the unaudited financial
statements as provided by the management of that company.
4) We report that the Consolidated Financial Statements have been
prepared by the Company in accordance with the requirements of
Accounting Standard 21 (Consolidated Financial Statements), Accounting
Standard 23 (Accounting for Investment in Associates in Consolidated
Financial Statements) and Accounting Standard 27 (Financial Reporting
of Interest in Joint Ventures) as notified under the Companies
(Accounting Standards) Rules, 2006.
(i) As stated in Note 12, no provision has been considered necessary by
the management in respect of the net assets included in theseaccounts
reflectingthevalueofinvestmentofRs.2764.50lacs and advance against
equity of Rs.33.91 lacs held by the Company in its subsidiary, SPIC
Electric Power Corporation Private Limited. In view of the considerable
delay in the implementation of the project we are unable to express an
opinion on the provision, if any, required in respect of the said net
assets reflecting the value of the above referred investments and
advance against equity.
(ii) as stated in Note 13, assets held by the company amounting to Rs.
2123.63 lacs are expected to be transferred to the proposed overseas
project at not less than cost. We are unable to express an opinion on
the realisable value of these assets.
5) Based on our audit and on consideration of the separate audit
reports on the individual financial statements of the Company, and the
aforesaid subsidiaries and joint ventures and associates, and to the
best of our information and according to the explanations given to us,
subject to our comments in the paragraph 4 (i) & (ii) above, the effect
of which could not be determined, in our opinion, the Consolidated
Financial Statements give a true and fair view in conformity with the
accounting principles generally accepted in India;
(a) in the case of the Consolidated Balance Sheet, of the state of
affairs of the Group as at 31st March 2010;
(b) in the case of the Consolidated Profit and Loss Account, of the
profit of.the Group for the year ended on that date; and
(c) in the case of the Consolidated Cash Flow Statement, of the cash
flows of the Group for the year ended on that date.
*
For Deloitte Haskins & Sells
Chartered Accountants
(Registration NO.008072S)
B.Ramaratnam Place: Chennai Partner
Date ; 5th May 2010 Membership No. 21209