Mar 31, 2023
The Members of Indian Oil Corporation LimitedReport on the audit of the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Indian Oil Corporation Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2023, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended and notes to the standalone financial statements including a summary of significant accounting policies and other explanatory information in which are incorporated the financial statements for the year ended on that date audited by the Branch Auditors of the Company''s one Branch, namely Research & Development (R&D) division situated at Faridabad, Haryana, India.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (the "Act") in the manner so required and give a true and fair view in conformity with Indian Accounting Standards specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015, as amended and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2023, and total comprehensive income (comprising of profit and other comprehensive income), changes in equity and its cash flows for the year ended on that date.
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditors'' 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 ("ICAI"), 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 ICAI''s 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 are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report:
Key Audit Matters |
Auditors'' response to Key Audit Matters |
Provision for Direct Taxes The Company has uncertain direct tax positions including matters under dispute which involves significant judgment relating to the possible outcome of these disputes in estimation of the provision for income tax, Because of the judgement required, this area is considered as a key audit matter, |
Our audit procedures involved assessment of the management''s underlying assumptions in estimating the tax provision and the possible outcome of the disputes taking into account the legal precedence, jurisprudence and other rulings in evaluating management''s position on these uncertain direct tax positions, We have also assessed the disclosures made by the company in this regard in standalone financial statements |
Provisions and Contingent Liabilities The Company is involved in various taxes and other disputes for which final outcome cannot be easily predicted and which could potentially result in significant liabilities, The assessment of the risks associated with the litigations is based on complex assumptions, which require the use of judgement and such judgement relates, primarily, to the assessment of the uncertainties connected to the prediction of the outcome of the proceedings and to the adequacy of the disclosures in the standalone financial statements, Because of the judgement required, the materiality of such litigations and the complexity of the assessment process, this area is considered as a key audit matter, |
Our audit procedures in response to this Key Audit Matter included, among others, ⢠Assessment of the process and relevant controls implemented to identify legal and tax litigations and pending administrative proceedings, ⢠Assessment of assumptions used in the evaluation of potential legal and tax risks performed by the legal and tax department of the Company considering the legal precedence and other rulings in similar cases, ⢠Inquiry with the legal and tax departments regarding the status of the most significant disputes and inspection of the key relevant documentation, ⢠Analysis of opinion received from the experts wherever available, ⢠Review of the adequacy of the disclosures in the notes to the standalone financial statements, |
Investments in Subsidiaries, Joint Ventures and Associates Investments in subsidiaries, joint ventures and associates which are valued at cost have been adjusted for impairment losses in line with "Ind AS 36 Impairment of assets''! In case there is an indication of possible impairment, the Company carries out an impairment test by comparing the recoverable amount of the investments determined according to the value in use method and their carrying amount, The valuation process adopted by management is complex and is based on a series of assumptions, such as the forecast cash flows, the appropriate discounting rate and the growth rate, These assumptions are, by nature, influenced by future expectations regarding the evolution of external market, Since judgement of the management is required to determine whether there is indication of possible impairment and considering the subjectivity of the estimates relating to the determination of the cash flows and the key assumptions of the impairment test, the area is considered as a key audit matter, |
With reference to this key audit matter, we considered the following: ⢠Book value of the investments in subsidiaries, joint venture and associates as compared to the carrying amount, ⢠Market capitalization in case of listed entities in which investments have been made, ⢠Some of the entities are still in the construction stage and have not begun commercial operations, Based on the information and explanations obtained as above, we concluded that the Management''s judgement regarding indication of impairment in certain investments during the year is appropriate, Where there is indication of impairment, we examined the approach taken by management to determine the value of the investments, analysed the methods and assumptions applied by management to carry out the impairment test and the reports obtained from the experts in valuation, The following audit procedures were adopted: ⢠identification and understanding of the significant controls implemented by the Company over the impairment testing process; analysis of the reasonableness of the principal assumptions made to estimate their cash flows, and obtaining other information from management that we deemed to be significant; ⢠analysis of actual data of the year and previous years in comparison with the original plan, in order to assess the nature of variances and the reliability of the planning process; ⢠assessment of the reasonableness of the discount rate and growth rate; ⢠Verification of the mathematical accuracy of the model used to determine the value in use of the investments, We also examined the adequacy of the information provided by the Company about the impairment test and its consistency with the requirements of Ind AS 36, |
The Company''s Board of Directors is responsible for the preparation of the other information, The other information comprises the information included in the Financial Performance highlights, Board''s Report including Annexure to Board''s Report, Management Discussions and Analysis, Business Responsibility and Sustainability Report, Report on Corporate Governance, Shareholders Information and other information in the Integrated Annual Report but does not include the standalone financial statements and our auditors'' report thereon,
Our opinion on the standalone financial statements does not cover the other information and we 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 when it becomes available, and in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated,
If, based on the work we have performed on the other information that we obtained prior to the date of auditors'' report, we conclude that there is a material misstatement of this information, we are required to report that fact, We have nothing to report in this regard,
When we read the remaining other information, which we will obtain after the date of auditors'' report and if we conclude that there is material misstatement therein, we are required to communicate the matter to those charged with governance,
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act, This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error,
In preparing the standalone financial statements, the Board of Directors is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so,
The Board of Directors is also responsible for overseeing the Company''s financial reporting process,
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors'' 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 standalone financial statements in place and the operating effectiveness of such controls,
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management,
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Company to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors'' 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 auditors'' 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.
⢠Obtain sufficient appropriate audit evidence regarding the financial statements/financial information of the branch to express an opinion on the standalone financial statements. We are responsible for the direction, supervision and performance of the audit of the financial statements of the components which have been audited by us. For the branches included in the standalone financial statements, which have been audited by branch auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.
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 auditors'' 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.
We did not audit the financial statements of one Branch included in the standalone financial statements of the Company whose financial statements reflect total assets of H 1,752.93 crore as at March 31, 2023 and total revenues of H 39.24 crore for the year ended on that date, as considered in the standalone financial statements. The financial statements of this Branch have been audited by the Branch Auditor whose report has been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of this Branch, is based solely on the report of such Branch Auditors.
The standalone financial statements include the Company''s proportionate share (relating to Jointly controlled operations of E&P activities) in assets H 764.51 crore and liabilities H 171.49 crore as at March 31, 2023 and total revenue of H 274.07 crore and profit before tax of H 170.50 crore for the year ended on that date and in items of the statement of cash flow and related disclosures contained in the enclosed standalone financial statements. Our observations thereon are based on unaudited statements from the operators to the extent available with the Company in respect of 24 Blocks (out of which 12 Blocks are relinquished) and have been certified by the management. Our opinion in respect thereof is solely based on the management certified information. According to the information and explanations given to us by the Company''s management, these are not material to the Company.
We have also placed reliance on technical/ commercial evaluations by the management in respect of categorization of wells as exploratory, development and dry well, allocation of cost incurred on them, liability under New Exploration Licensing Policy (NELP) and nominated blocks for under-performance against agreed Minimum Work Programme.
Our opinion is not modified in respect of these matters.
1. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order") issued by the Central Government of India in terms of sub- section (11) of Section 143 of the Act, we give in the "Annexure A" a statement on the matters specified in the paragraphs 3 and 4 of the said Order, to the extent applicable.
2. We are enclosing our report in terms of Section 143 (5) of the Act, on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, in the "Annexure B" on the directions issued by the Comptroller and Auditor General of India.
3. As required by Section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books and proper returns adequate for the purpose of our audit have been received from the Branch not visited by us.
c. The report on the accounts of the Branch office of the Company audited under section 143(8) of the Act, by Branch Auditors has been furnished to us and has been properly dealt with by us in preparing this report.
d. The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income), Statement of Changes in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account and with the returns received from the Branch not visited by us.
e. In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.
f. We have been informed that the provisions of Section 164(2) of the Act in respect of disqualification of directors are not applicable to the Company, being a Government Company in terms of notification no. G.S.R.463 (E) dated 5th June, 2015 issued by Ministry of Corporate Affairs, Government of India.
g. With respect to the adequacy of the internal financial controls with reference to standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure C"
h. We are informed that the provisions of Section 197 read with Schedule V of the Act, relating to managerial remuneration are not applicable to the Company, being a Government Company, in terms of Ministry of Corporate Affairs Notification no. G.S.R. 463 (E) dated 5th June, 2015.
i. With respect to the other matters to be included in the Auditors'' 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 36B to the standalone financial statements.
ii. The Company has made provision, as required under the applicable law or Indian accounting standards, for material foreseeable losses, if any, on long term contracts including derivative contracts - Refer Note 18 to the standalone financial statements.
iii. There has been no delay in transferring the amount, 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) 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 ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
b) The Management has 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 ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
c) Based on 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. As stated in Note 31 to the standalone financial statements:
a) The final dividend paid by the Company during the year in respect of the same declared for the previous year is in accordance with section 123 of the Companies Act 2013 to the extent it applies to payment of dividend.
b) The Board of Directors of the Company has proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with section 123 of the Act to the extent it applies to declaration of dividend.
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company from Financial Year beginning April 1, 2023 and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year 2022-23.
Mar 31, 2022
Opinion
We have audited the accompanying standalone financial statements of Indian Oil Corporation Limited ("the Companyâ), which comprise the Balance Sheet as at March 31, 2022, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended and notes to the standalone financial statements including a summary of significant accounting policies and other explanatory information in which are incorporated the financial statements for the year ended on that date audited by the Branch Auditor of the Company''s one Branch, namely Research & Development (R&D) division situated at Faridabad, Haryana, India.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (the "Actâ) in the manner so required and give a true and fair view in conformity with Indian Accounting Standards specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015, as amended and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2022, and total comprehensive income (comprising of profit and other comprehensive income), changes in equity and its cash flows for the year ended on that date.
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditors'' 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 ("ICAIâ), 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 ICAI''s 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 are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report:
Key Audit Matters |
Auditors'' response to Key Audit Matters |
lives of assets prescribed in Schedule II to the Act and the useful lives of certain assets as per the technical assessment of the management. We observed that the management has regularly reviewed the aforesaid judgements and there are no material changes. |
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Provision for Direct Taxes |
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The Company has uncertain direct tax positions including |
Our audit procedures involved assessment of the |
matters under dispute which involves significant judgement |
management''s underlying assumptions in estimating the tax |
relating to the possible outcome of these disputes in estimation |
provision (as confirmed by the Company''s tax consultants) and |
of the provision for income tax. Because of the judgement |
the possible outcome of the disputes taking into account the |
required, the area is a key audit matter for our audit. |
legal precedence, jurisprudence and other rulings in evaluating management''s position on these uncertain direct tax positions. We have also assessed the disclosures made by the company in this regard. |
Provisions and Contingent Liabilities |
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The Company is involved in various taxes and other disputes for which final outcome cannot be easily predicted and which could potentially result in significant liabilities. The assessment of the risks associated with the litigations is based on complex assumptions, which require the use of judgement and such judgement relates, primarily, to the assessment of |
Our audit procedures in response to this Key Audit Matter included, among others, ⢠Assessment of the process and relevant controls implemented to identify legal and tax litigations and pending administrative proceedings. |
the uncertainties connected to the prediction of the outcome |
⢠Assessment of assumptions used in the evaluation of |
of the proceedings and to the adequacy of the disclosures in |
potential legal and tax risks performed by the legal and |
the standalone financial statements. Because of the judgement |
tax department of the Company considering the legal |
required, the materiality of such litigations and the complexity |
precedence and other rulings in similar cases. |
of the assessment process, the area is a key matter for our audit. |
⢠Inquiry with the legal and tax departments regarding the |
status of the most significant disputes and inspection of the key relevant documentation. |
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⢠Analysis of opinion received from the experts wherever |
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available. |
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⢠Review of the adequacy of the disclosures in the notes to |
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the standalone financial statements. |
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Investments in Subsidiaries, Joint Ventures and Associates |
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Investments in subsidiaries, joint ventures and associates which |
With reference to this key audit matter, we considered the |
are valued at cost have been adjusted for impairment losses n line with "Ind AS 36 Impairment of assetsâ. In case there is an indication of possible impairment, the Company carries out an impairment test by comparing the recoverable amount |
following: ⢠Book value of the investments in subsidiaries, joint venture and associates as compared to the carrying amount. |
of the investments determined according to the value in use |
⢠Market capitalization in case of listed entities in which |
method and their carrying amount. The valuation process |
investments have been made. |
adopted by management is complex and is based on a series of assumptions, such as the forecast cash flows, the appropriate discounting rate and the growth rate. These assumptions are, |
⢠Some of the entities are still in the construction stage and have not begun commercial operations. |
by nature, influenced by future expectations regarding the |
Based on the information and explanations obtained as above, |
evolution of external market. |
we concluded that the Management''s judgement regarding |
Since judgement of the management is required to determine whether there is indication of possible impairment and considering the subjectivity of the estimates relating to the determination of the cash flows and the key assumptions of the mpairment test, the area is considered a key audit matter for our audit. |
indication of impairment in certain investments during the year is appropriate. Where there is indication of impairment, we examined the approach taken by management to determine the value of the investments, analysed the methods and assumptions applied by management to carry out the impairment test and the reports obtained from the experts in valuation. |
Key Audit Matters |
Auditors'' response to Key Audit Matters |
The following audit procedures were adopted: |
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⢠identification and understanding of the significant controls implemented by the Company over the impairment testing process; analysis of the reasonableness of the principal assumptions made to estimate their cash flows, and obtaining other information from management that we deemed to be significant; |
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⢠analysis of actual data of the year and previous years in comparison with the original plan, in order to assess the nature of variances and the reliability of the planning process; |
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⢠assessment of the reasonableness of the discount rate and growth rate; |
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⢠Verification of the mathematical accuracy of the model used to determine the value in use of the investments. |
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We also examined the adequacy of the information provided by the Company about the impairment test and its consistency with the requirements of Ind AS 36. |
Information Other than the Standalone Financial Statements and Auditors'' Report Thereon
The Company''s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Financial Performance highlights, Board''s Report including Annexure to Board''s Report, Management Discussions and Analysis, Business Responsibility and Sustainability Report, Report on Corporate Governance, Shareholders Information and other information in the Integrated Annual Report but does not include the standalone financial statements and our auditors'' report thereon.
Our opinion on the standalone financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and identified above when it becomes available, and in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of auditors'' report, we conclude that there is a material misstatement of this information, we are required to report that fact. We have nothing to report in this regard.
When we read the other information, which we will obtain after the date of auditors'' report and if we conclude that there is material misstatement therein, we are required to communicate the matter to those charged with governance.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgements 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 Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Company''s financial reporting process.
Auditors'' 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 auditors'' 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 judgement 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 standalone Financial Statements in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Company to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors'' 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 auditors'' report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors'' 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.
We did not audit the financial statements of one Branch included in the standalone financial statements of the Company whose financial statements reflect total assets of J 1,471.59 crore as at March 31, 2022 and total revenues of J 42.38 crore for the year
ended on that date, as considered in the standalone financial statements. The financial statements of this Branch have been audited by the Branch Auditor whose report has been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of this Branch, is based solely on the report of such Branch Auditor.
The standalone financial statements include the Company''s proportionate share (relating to Jointly controlled operations of E&P activities) in assets J 716.94 crore and liabilities J 122.31 crore as at March 31, 2022 and total revenue of J 126.39 crore and profit before tax of J 49.59 crore for the year ended on that date and in items of the statement of cash flow and related disclosures contained in the enclosed standalone financial statements. Our observations thereon are based on unaudited statements from the operators to the extent available with the Company in respect of 21 Blocks (out of which 11 Blocks are relinquished) and have been certified by the management.
Our opinion in respect thereof is solely based on the management certified information.
We have also placed reliance on technical/ commercial evaluations by the management in respect of categorization of wells as exploratory, development and dry well, allocation of cost incurred on them, liability under New Exploration Licensing Policy (NELP) and nominated blocks for under-performance against agreed Minimum Work Programme.
Our opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2020 ("the Orderâ) issued by the Central Government of India in terms of sub- section (11) of Section 143 of the Act, we give in the "Annexure Aâ a statement on the matters specified in the paragraphs 3 and 4 of the said Order, to the extent applicable.
2. We are enclosing our report in terms of Section 143 (5) of the Act, on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, in the "Annexure Bâ on the directions issued by the Comptroller and Auditor General of India.
3. As required by Section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books and proper returns adequate for the purpose of our audit have been received from the Branch not visited by us.
c. The report on the accounts of the Branch office of the Company audited under section 143(8) of the Act, by Branch Auditor has been furnished to us and has been properly dealt with by us in preparing this report.
d. The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income), Statement of changes in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account and with the returns received from the Branch not visited by us.
e. In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.
f. We have been informed that the provisions of Section 164(2) of the Act in respect of disqualification of directors are not applicable to the Company, being a Government Company in terms of notification no. G.S.R.463 (E) dated 5th June, 2015 issued by Ministry of Corporate Affairs, Government of India.
g. With respect to the adequacy of the internal financial controls with reference to standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure Câ.
h. We are informed that the provisions of Section 197 read with Schedule V of the Act, relating to managerial remuneration are not applicable to the Company, being a Government Company, in terms of Ministry of Corporate Affairs Notification no. G.S.R. 463 (E) dated 5th June, 2015.
i. With respect to the other matters to be included in the Auditors'' 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 36B to the standalone financial statements.
ii. The Company has made provision, as required under the applicable law or Indian accounting standards, for material foreseeable losses, if any, on long term contracts including derivative contracts - Refer Note 17 to the standalone financial statements.
iii. There has been no delay in transferring the amount, 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) 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 ("Intermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate 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 ("Funding 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 ("Ultimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
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. As stated in Note 31 to the standalone financial statements:
a) The interim dividend declared and paid by the Company during the year and until the date of this audit report is in accordance with section 123 of the Companies Act 2013.
b) The final dividend paid by the Company during the year in respect of the same declared for the previous year is in accordance with section 123 of the Companies Act 2013 to the extent it applies to payment of dividend.
The Board of Directors of the Company has proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with section 123 of the Act to the extent it applies to declaration of dividend.
For G. S. MATHUR & CO. For K. C. MEHTA & CO. For SINGHI & CO. For S R B & ASSOCIATES
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
Firm Regn. No. 008744N Firm Regn. No. 106237W Firm Regn. No. 302049E Firm Regn. No. 310009E
Sd/- Sd/- Sd/- Sd/-
(Rajiv Kumar Wadhawan) (Vishal P. Doshi) (Shrenik Mehta) (R. S. Sahoo)
Partner Partner Partner Partner
M. No. 091007 M. No. 101533 M. No. 063769 M. No. 053960
UDIN: UDIN: UDIN: UDIN:
22091007AJCGDJ7522 22101533AJCFWW8790 22063769AJCGVY1618 22053960AJCGGK4519
Mar 31, 2021
We have audited the accompanying standalone financial statements of Indian Oil Corporation Limited ("the Companyâ), which comprise the Balance Sheet as at March 31, 2021, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended and notes to the standalone financial statements including a summary of significant accounting policies and other explanatory information in which are incorporated the financial statements for the year ended on that date audited by the Branch Auditor of the Company''s one Branch, namely Research & Development (R&D) division situated at Faridabad, Haryana, India.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (the "Actâ) in the manner so required and give a true and fair view in conformity with Indian Accounting Standards specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015, as amended and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2021, and total comprehensive income (comprising of profit and other comprehensive income), changes in equity and its cash flows for the year ended on that date.
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditors'' 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 ("ICAIâ), 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 ICAI''s 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 are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report:
Key Audit Matters |
Auditors'' response to Key Audit Matters |
Property, Plant & Equipment and Intangible Assets There are areas where management judgement impacts the carrying value of property, plant and equipment, intangible assets and their respective depreciation/amortisation rates. These include the decision to capitalise or expense costs; the annual asset life review; the timeliness of the capitalisation of assets and the use of management assumptions and estimates for the determination or the measurement and recognition criteria for assets retired from active use. Due to the materiality in the context of the Balance Sheet of the Company and the level of judgement and estimates required, we consider this to be as area of significance. |
We assessed the controls in place over the fixed asset cycle, evaluated the appropriateness of capitalisation process, performed tests of details on costs capitalised, the timeliness of the capitalisation of the assets and the de-recognition criteria for assets retired from active use. In performing these procedures, we reviewed the judgements made by management including the nature of underlying costs capitalised; determination of realisable value of the assets retired from active use; the appropriateness of assets lives applied in the calculation of depreciation; the useful |
Key Audit Matters |
Auditors'' response to Key Audit Matters |
lives of assets prescribed in Schedule II to the Act and the useful lives of certain assets as per the technical assessment of the management. We observed that the management has regularly reviewed the aforesaid judgements and there are no material changes. |
|
Capital Work-in-Progress |
|
The Company is in the process of executing various projects like |
We performed an understanding and evaluation of the system |
expansion of refineries, installation of new plants, depots, LPG |
of internal control over the capital work in progress, with |
oottling plants, terminals, pipelines, etc. Since these projects |
reference to identification and testing of key controls. |
take a substantial period of time to get ready for intended use and due to their materiality in the context of the Balance Sheet of the Company, this is considered to be an area which had the significant effect on the overall audit strategy and allocation of resources in planning and completing our audit |
We assessed the progress of the project and the intention and ability of the management to carry forward and bring the asset to its state of intended use. |
Provision for Direct Taxes |
|
The Company has uncertain direct tax positions including |
Our audit procedures involved assessment of the |
matters under dispute which involves significant judgment |
management''s underlying assumptions in estimating the tax |
relating to the possible outcome of these disputes in estimation |
provision (as confirmed by the Company''s tax consultants) |
of the provision for income tax. Because of the judgement |
and the possible outcome of the disputes taking into account |
required, the area is a key audit matter for our audit. |
the legal precedence, jurisprudence and other rulings in evaluating management''s position on these uncertain direct tax positions. We observed that the provision for tax estimated as above including the deferred tax, has not resulted in material deviation from the applicable rate of tax after considering the exemptions, deductions and disallowances as per the provisions of the Income Tax Act, 1961. |
Provisions and Contingent Liabilities |
|
The Company is involved in various taxes and other disputes for which final outcome cannot be easily predicted and which could potentially result in significant liabilities. The assessment of the risks associated with the litigations is based on complex assumptions, which require the use of judgement and such judgement relates, primarily, to the assessment of the |
Our audit procedures in response to this Key Audit Matter included, among others, ⢠Assessment of the process and relevant controls implemented to identify legal and tax litigations and pending administrative proceedings. |
uncertainties connected to the prediction of the outcome of |
⢠Assessment of assumptions used in the evaluation of |
the proceedings and to the adequacy of the disclosures in the |
potential legal and tax risks performed by the legal and |
standalone financial statements. Because of the judgement |
tax department of the Company considering the legal |
required, the materiality of such litigations and the complexity |
precedence and other rulings in similar cases. |
of the assessment process, the area is a key matter for our audit. |
⢠Inquiry with the legal and tax departments regarding the |
status of the most significant disputes and inspection of the key relevant documentation. |
|
⢠Analysis of opinion received from the experts wherever |
|
available. |
|
⢠Review of the adequacy of the disclosures in the notes to |
|
the standalone financial statements. |
Key Audit Matters |
Auditors'' response to Key Audit Matters |
Investments in Subsidiaries, Joint Ventures and Associates |
|
Investments in subsidiaries, joint ventures and associates are |
With reference to this key audit matter, we considered the |
valued at cost adjusted for impairment losses. In line with "Ind |
following: |
AS 36 Impairment of assetsâ, in case there is an indication of . |
|
possible impairment, the Company carries out an impairment |
⢠Book value of the investments in subsidiaries, joint venture and associates as compared to the carrying amount. |
test by comparing the recoverable amount of the investments |
|
determined according to the value in use method and their |
⢠Market capitalisation in case of listed entities in which |
carrying amount. The valuation process adopted by management |
investments have been made. |
is complex and is based on a series of assumptions, such as the |
⢠Some of the entities are still in the construction stage and |
forecast cash flows, the appropriate discounting rate and the |
have not begun commercial operations. |
growth rate. These assumptions are, by nature, influenced by |
|
future expectations regarding the evolution of external market. |
Based on the information and explanations obtained as above, |
Since judgement of the management is required to determine |
we concluded that the Management''s judgement regarding indication of impairment in certain investments during the |
whether there is indication of possible impairment and |
|
considering the subjectivity of the estimates relating to the |
year is appropriate. Where there is indication of impairment, we examined the approach taken by management to |
determination of the cash flows and the key assumptions of the |
determine the value of the investments, analysed the methods |
impairment test, the area is considered a key audit matter for |
|
our audit. |
and assumptions applied by management to carry out the impairment test and the reports obtained from the experts in |
valuation. The following audit procedures were adopted: ⢠Identification and understanding of the significant controls implemented by the Company over the impairment testing process; analysis of the reasonableness of the principal assumptions made to estimate their cash flows, and obtaining other information from management that we deemed to be significant; ⢠Analysis of actual data of the year and previous years in comparison with the original plan, in order to assess the nature of variances and the reliability of the planning process; ⢠Assessment of the reasonableness of the discount rate and growth rate; ⢠Verification of the mathematical accuracy of the model used to determine the value in use of the investments. We also examined the adequacy of the information provided by the Company about the impairment test and its consistency with the requirements of Ind AS 36. |
The Company''s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Financial Performance highlights, Board''s Report including Annexure to Board''s Report, Management Discussions and Analysis, Business Responsibility Report, Report on Corporate Governance, Shareholders Information and other information in the Integrated Annual Report but does not include the standalone financial statements and our auditors'' report thereon.
Our opinion on the standalone financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and identified above when it becomes available, and in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of auditors'' report, we conclude that there is a material misstatement of this information, we are required to report that fact. We have nothing to report in this regard.
When we read the other information, which we will obtain after the date of auditors'' report and if we conclude that there is material misstatement therein, we are required to communicate the matter to those charged with governance.
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, the Board of Directors is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Company''s financial reporting process.
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors'' 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 standalone Financial Statements in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Company to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors'' 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 auditors'' report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors'' 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.
We did not audit the financial statements of one Branch included in the standalone financial statements of the Company whose financial statements reflect total assets of J 1,083.94 Crore as at March 31, 2021 and total revenues of J 39.81 Crore for the year ended on that date, as considered in the standalone financial statements. The financial statements of this Branch have been audited by the Branch Auditor whose report has been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of this Branch, is based solely on the report of such Branch Auditor.
The standalone financial statements include the Company''s proportionate share (relating to Jointly controlled operations of E&P activities) in assets J 649.97 Crore and liabilities J 122.38 Crore as at March 31, 2021 and total revenue of J 101.08 Crore and total net profit of J 15.93 Crore for the year ended on that date and in items of the statement of cash flow and related disclosures contained in the enclosed standalone financial statements. Our observations thereon are based on unaudited statements from the operators to the extent available with the Company in respect of 21 Blocks (out of which 11 Blocks are relinquished) and have been certified by the management.
Our opinion in respect thereof is solely based on the management certified information.
We have also placed reliance on technical/ commercial evaluations by the management in respect of categorisation of wells as exploratory, development and dry well, allocation of cost incurred on them, liability under New Exploration Licensing Policy (NELP) and nominated blocks for under-performance against agreed Minimum Work Programme.
Our opinion is not modified in respect of these matters.
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Orderâ) issued by the Central Government of India in terms of sub- section (11) of Section 143 of the Act, we give in the "Annexure Aâ a statement on the matters specified in the paragraphs 3 and 4 of the said Order, to the extent applicable.
2. We are enclosing our report in terms of Section 143 (5) of the Act, on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, in the "Annexure Bâ on the directions issued by the Comptroller and Auditor General of India.
3. As required by Section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books and proper returns adequate for the purpose of our audit have been received from the Branch not visited by us.
c. The report on the accounts of the Branch office of the Company audited under section 143(8) of the Act, by Branch Auditor has been furnished to us and has been properly dealt with by us in preparing this report.
d. The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income), Statement of changes in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account and with the returns received from the Branch not visited by us.
e. In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.
f. We have been informed that the provisions of Section 164(2) of the Act in respect of disqualification of directors are not applicable to the Company, being a Government Company in terms of notification no. G.S.R.463 (E) dated 5th June, 2015 issued by Ministry of Corporate Affairs, Government of India.
g. With respect to the adequacy of the internal financial controls with reference to standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure Câ.
h. We are informed that the provisions of Section 197 read with Schedule V of the Act, relating to managerial remuneration are not applicable to the Company, being a Government Company, in terms of Ministry of Corporate Affairs Notification no. G.S.R. 463 (E) dated 5th June, 2015.
i. With respect to the other matters to be included in the Auditors'' 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 36B to the standalone financial statements.
ii. The Company has made provision, as required under the applicable law or Indian accounting standards, for material foreseeable losses, if any, on long term contracts including derivative contracts - Refer Note 17 to the standalone financial statements.
iii. There has been no delay in transferring the amount, required to be transferred to the Investor Education and Protection Fund by the Company.
For G. S. MATHUR & CO. For K. C.MEHTA & CO. For SINGHI & CO. For V. SINGHI & ASSOCIATES
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
Firm Regn. No. 008744N Firm Regn. No. 106237W Firm Regn. No. 302049E Firm Regn. No. 311017E
Sd/- Sd/- Sd/- Sd/-
(Rajiv Kumar Wadhawan) (Vishal P. Doshi) (Pradeep Kumar Singhi) (Sunil Singhi)
Partner Partner Partner Partner
M. No. 091007 M. No. 101533 M. No. 050773 M. No. 060854
UDIN: UDIN: UDIN: UDIN:
21091007AAAADN7730 21101533AAAABK9531 21050773AAAAAE7966 21060854AAAABC9278
New Delhi Vadodara Kolkata Kolkata
Date: May 19, 2021
(i) (a) The Company has generally maintained proper records showing full particulars including quantitative details and situation
of fixed assets.
(b) There is a regular programme of physical verification of all fixed assets, other than LPG cylinders and pressure regulators with customers, over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its fixed assets. In our opinion and as per the information given by the Management, the discrepancies observed were not material and have been appropriately accounted for in the books.
(c) According to the information and explanations given to us and on the basis of our examination of records of the Company, the title/ lease deeds of the immovable properties are held in the name of the Company except in cases given below:
Particulars |
Number of cases |
Gross Block/ Value (J in Crore) |
Net Block/ Value J in Crore) |
Freehold |
|||
Freehold Land |
16 |
428.37 |
428.37 |
Freehold Building |
7 |
5.58 |
4.64 |
ROU assets |
|||
Leasehold Land |
104 |
579.72 |
403.83 |
Leasehold Building |
3 |
269.11 |
265.37 |
(ii) According to the information and explanations given to us, the inventory (excluding inventory lying with third parties, inventory under joint operations and material in transit) has been physically verified by the management during the year and in our opinion, the frequency of verification is reasonable. As explained to us, no material discrepancies were noticed on physical verification of inventories as compared to the book records.
(iii) In our opinion and according to the information and explanations given to us, the Company has not granted any loans, secured or unsecured, during the year, to any companies, firms, and limited liability partnerships or other parties covered in register maintained under Section 189 of the Act.
In view of the above, reporting under clause 3 (iii)(a), 3 (iii)(b) and 3 (iii)(c) of the Order is not applicable.
(iv) In our opinion and according to the information and explanations given to us, the Company is exempted from the provisions of section 186 of the Act as it is engaged in the business of providing infrastructure facilities as provided under Schedule-VI of the Act. The Company has complied with the provisions of Section 185 of the Act.
(v) In our opinion and according to the information and explanations given to us, during the year, the Company has not accepted deposits from the public in terms of the provisions of sections 73 to 76 of the Act read with the Companies (Acceptance of Deposits) Rules,2014, as amended and other relevant provisions of the Act or under the directives issued by the Reserve Bank of India and no deposits are outstanding at the year end except old cases under dispute aggregating to H 0.01 Crore, where we are informed that the Company has complied with necessary directions.
(vi) We have broadly reviewed the accounts and records maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records under sub-section (1) of Section 148 of the Act, read with Companies (Cost Records& Audit) Rules, 2014, as amended and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have not, however, made detailed examination of the records with a view to determine whether they are accurate and complete.
(vii) (a) According to the information and explanations given to us, the Company has been regular in depositing with appropriate
authorities undisputed statutory dues, including provident fund, employee''s state insurance, income tax, value added tax, goods and service tax, excise duty, cess and other statutory dues applicable to it. Further, no undisputed amounts payable in respect of provident fund, employee''s state insurance, income tax, value added tax, goods and service tax, cess and any other statutory dues were in arrears, as at March 31, 2021, for a period of more than six months from the date they become payable.
(b) The disputed statutory dues that have not been deposited on account of matters pending before appropriate authorities are annexed in "Appendix Aâ with this report.
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment
of dues to financial institutions, banks, Government or debenture holders.
(ix) According to the information and explanations given to us, the Company has applied the term loans for the purpose for which those were obtained. During the year the Company has not raised moneys through initial public offer or further public offer (including debt instruments). However, the Company has issued non-convertible debentures for capital expenditure requirements in the domestic market and as per the information and explanations given to us, the funds were applied for the purpose for which those were raised.
(x) According to the information and explanations given to us and as represented by the Management and based on our examination of the books and records of the Company and in accordance with generally accepted auditing practices in India, no material case of frauds by the Company or on the Company by its officers or employees has been noticed or reported during the year.
(xi) The provisions of Section 197 read with Schedule V of the Act, relating to managerial remuneration are not applicable to the Company, being a Government Company, in terms of Ministry of Corporate Affairs Notification no. G.S.R. 463 (E) dated 5th June, 2015.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company and therefore, the reporting under Clause 3 (xii) of the Order is not applicable.
(xiii) In our opinion and according to the information and explanations given by the management, all transactions during the year with the related parties were approved by the Audit Committee and are in compliance with section 177 and 188 of the Act, where applicable and the details have been disclosed in the standalone financial statements, as required by the applicable Indian accounting standards.
(xiv) According to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year and therefore provisions of Section 42 of the Act are not applicable to the Company.
(xv) In our opinion and according to the information and explanations given to us, the Company has not entered into any noncash transactions specified under section 192 of the Act with directors or persons connected with directors and therefore, reporting under clause (xv) of the Order is not applicable to the Company.
(xvi) According to the information and explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For G. S. MATHUR & CO. For K. C.MEHTA & CO. For SINGHI & CO. For V. SINGHI & ASSOCIATES
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
Firm Regn. No. 008744N Firm Regn. No. 106237W Firm Regn. No. 302049E Firm Regn. No. 311017E
Sd/- Sd/- Sd/- Sd/-
(Rajiv Kumar Wadhawan) (Vishal P. Doshi) (Pradeep Kumar Singhi) (Sunil Singhi)
Partner Partner Partner Partner
M. No. 091007 M. No. 101533 M. No. 050773 M. No. 060854
UDIN: UDIN: UDIN: UDIN:
21091007AAAADN7730 21101533AAAABK9531 21050773AAAAAE7966 21060854AAAABC9278
New Delhi Vadodara Kolkata Kolkata
Plato- Maw 1 Q OC1^1
Mar 31, 2019
INDEPENDENT AUDITORSâ REPORT
To
The Members of Indian Oil Corporation Limited
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of Indian Oil Corporation Limited (-the Company-), which comprise the Balance Sheet as at March 31, 2019, the Statement of Profit and Loss (including other Comprehensive income), Statement of Changes in Equity and Statement of Cash Flows for the year then ended and notes to the financial statements including a summary of significant accounting policies and other explanatory information in which are incorporated the returns for the year ended on that date audited by the Branch Auditor of the Companyâs one Branch, namely Research & Development (R&D) division situated at Faridabad, Haryana, India.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (the -Act-) in the manner so required and give a true and fair view in conformity with accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2019, and profit, total Comprehensive Income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of Act (SAs). Our responsibilities under those Standards are further described in the Auditorsâ Responsibilities for the Audit of the 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 (-ICAI-), 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 there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAIâs 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 judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report:
Key Audit Matters |
Auditors'' response to Key Audit Matters |
Property, Plant & Equipment and Intangible Assets |
|
There are areas where management judgment impacts the |
We assessed the controls in place over the fixed asset cycle, |
carrying value of property, plant and equipment, intangible |
evaluated the appropriateness of capitalization process, |
assets and their respective depreciation/amortization rates. |
performed tests of details on costs capitalized, the timeliness of |
These include the decision to capitalize or expense costs; the |
the capitalization of the assets and the de-recognition criteria for |
annual asset life review; the timeliness of the capitalization of |
assets retired from active use. In performing these procedures, |
assets and the use of management assumptions and estimates |
we reviewed the judgments made by management including the |
for the determination or the measurement and recognition |
nature of underlying costs capitalized; determination of realizable |
criteria for assets retired from active use. Due to the materiality |
value of the assets retired from active use; the appropriateness of |
in the context of the balance sheet of the Company and the level |
asset lives applied in the calculation of depreciation; the useful |
of judgment and estimates required, we consider this to be as |
lives of assets prescribed in Schedule II of the Companies Act, |
area of significance. |
2013 and the useful lives of certain assets as per the technical assessment of the management. We have observed that the management has regularly reviewed the aforesaid judgments and there are no material changes. |
Key Audit Matters |
Auditors'' response to Key Audit Matters |
Capital Work-in-Proeress |
|
The Company is in the process of executing various projects like |
We performed an understanding and evaluation of the system of |
expansion of refineries, installation of new plants, depots, LPG |
internal control over the capital work in progress, with reference to |
bottling plants, terminals, pipelines, etc. Since these projects |
identification and testing of key controls. |
take a substantial period of time to get ready for intended use and due to their materiality in the context of the balance sheet of the Company, this is considered to be an area which had the significant effect on the overall audit strategy and allocation of |
We assessed the progress of the project and the intention and ability of the management to carry forward and bring the asset to its state of intended use. |
resources in planning and completing our audit |
|
Provision for Direct Taxes |
|
The Company has uncertain direct tax positions including matters |
Our audit process involved assessment of the managementâs |
under dispute which involves significant judgment relating to the |
underlying assumptions in estimating the tax provision (as |
possible outcome of these disputes in estimation of the provision |
confirmed by the Companyâs tax consultants) and the possible |
for income tax. Because of the judgments required, the area is a |
outcome of the disputes taking into account the legal precedence, |
key audit matter for our audit. |
jurisprudence and other rulings in evaluating managementâs position on these uncertain direct tax positions. We have observed that the provision for tax estimated as above including the deferred tax, has not resulted in material deviation from the applicable rate of tax after considering the exemptions, deductions and disallowances as per the provisions of the Income Tax Act. |
Provisions and Contingent Liabilities |
|
The Company is involved in various taxes and other disputes |
Our audit procedure in response to this key Audit Matter included, |
for which final outcomes cannot be easily predicted and |
among others, |
which could potentially result in significant liabilities. The assessment of the risks associated with the litigations is based on complex assumptions, which require the use of judgments and such judgments relates, primarily, to the assessment of |
- Assessment of the process and relevant controls implemented to identify legal and tax litigations, and pending administrative proceedings. |
the uncertainties connected to the prediction of the outcome |
- Assessment of assumptions used in the evaluation of potential |
of the proceedings and to the adequacy of the disclosures in |
legal and tax risks performed by the legal and tax department |
the financial statements. Because of the judgments required, |
of the Company considering the legal precedence and other |
the materiality of such litigations and the complexity of the |
rulings in similar cases. |
assessment process, the area is a key matter for our audit. |
- Inquiry with the legal and tax departments regarding the status of the most significant disputes and inspection of the key relevant documentation. - Analysis of opinion received from the experts where available. - Review of the adequacy of the disclosures in the notes to the financial statements. |
Goods and Services Tax (GST) |
|
The country has adopted goods and services tax with effect from |
Our audit process involved assessing the managementâs judgments |
July 1, 2017. The goods and service tax is applicable only in |
on the interpretations involved taking into account the advices and |
case of certain products and services of the Company while major |
opinions received from indirect tax experts. |
products are still covered under the old regime viz., excise duty |
|
and value added tax. Since the Company is covered under both |
|
the regimes, the management is required to apply judgment |
|
in the interpretation with respect to input tax credit available |
|
and taxability of the products and services. Since significant |
|
judgment of the management is required, the area is a key audit |
|
matter for our audit. |
Key Audit Matters |
Auditors'' response to Key Audit Matters |
Investments in Subsidiaries, Joint Ventures and Associates |
|
Investments in subsidiaries, joint ventures and associates are |
With reference to this key audit matter, we considered the |
valued at cost adjusted for impairment losses. In line with |
following: |
-IndAS 36 ImDairment of assets-, in case there is an indication _ . ... ........ |
|
of possible impairment, the Company carries out an impairment |
- Book value of the investments in subsidiaries, joint venture |
test by comparing the recoverable amount of the investments |
and associates as compared to the carrying amount. |
determined according to the value in use method and their |
- Market capitalization in case of listed entities in which |
carrying amount. The valuation process adopted by management |
investments have been made |
is complex and is based on a series of assumptions, such as |
|
the forecast cash flows, the appropriate discounting rate and the |
- The prices of crude/gas being higher than the previous yearâs |
growth rate. These assumptions are, by nature, influenced by |
level in case of upstream companies where the investments |
future expectations regarding the evolution of external market. |
have been made. |
Since judgments of the management is required to determine |
- Some of the entities are still in the construction stage and |
whether there is indication of possible impairment and |
have not begun commercial operations |
considering the subjectivity of the estimates relating to the |
Based on the information and explanations obtained as above, |
determination of the cash flows and the key assumptions of the |
we concluded that the Managementâs judgments regarding |
impairment test, the area is considered a key audit matter for |
indication of impairment in certain investments during the year |
our audit. |
is appropriate. Where there is indication of impairment, we examined the approach taken by management to determine the value of the investments, analyzed the methods and assumptions applied by management to carry out the impairment test and the reports obtained from the experts in valuation. The following audit procedures were adopted: - identification and understanding of the significant controls implemented by the Company over the impairment testing process; analysis of the reasonableness of the principal assumptions made to estimate their cash flows, and obtaining other information from management that we deemed to be significant; - analysis of actual data of the year and previous years in comparison with the original plan, in order to assess the nature of variances and the reliability of the planning process; - assessment of the reasonableness of the discount rate and growth rate; - verification of the mathematical accuracy of the model used to determine the value in use of the investments. We also examined the adequacy of the information provided by the Company about the impairment test and its consistency with the requirements of Ind AS 36. |
Key Audit Matters |
Auditors'' response to Key Audit Matters |
Receivables from Airlines Customers |
|
The Company has trade receivables from certain airlines. |
Our audit procedures included: |
The increasing challenges over the economy and operating environment in the airline industry during the year have increased the risks of default on receivables from the Companyâs airline |
- testing the managementâs judgment with respect to recoverability of the dues from airline companies; |
customers if they fail to meet their contractual obligations in |
- perusing the confirmations from/reconciliations with the |
accordance with the contracts. |
airline customers indicating that there are no material |
The management has determined and assessed that these |
discrepancies or disputes; |
amounts are good of recovery considering the dues receivable |
- perusing the financial bank guarantees received from private |
from a government airline company and financial bank guarantees |
airlines covering the amount due from them. |
received from private airlines covering the amount due from the private airline companies. |
We are also informed that the Company has invoked bank guarantee obtained from one private airline and realized the money against |
Considering the materiality of the amount involved, we considered |
the dues subsequent to the Balance Sheet date. |
this as a key audit matter for our audit |
Information Other than the Standalone Financial Statements and Auditors'' Report Thereon
The Companyâs Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Financial Performance highlights, Boardâs Report including Annexure to Boardâs Report, Management Discussions and Analysis, Business Responsibility Report, Report on Corporate Governance, Shareholders Information and other information in Integrated Annual Report but does not include the standalone financial statements and our auditorsâ report thereon.
The information to the extent available, relating to the standalone financial statements which will be included in the Management discussion and Analysis and Financial Performance Highlights have been made available to us prior to the date of this auditorsâ report and we have not observed any misstatement.
The other information, to the extent not made available to us as of the date of signing this report is expected to be made available to us after the date of this auditorsâ report.
Our opinion on the standalone financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and identified above when it becomes available, and in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of auditorsâ report, we conclude that there is a material misstatement of this information, we are required to report that fact. We have nothing to report in this regard.
When we read the other information, if we conclude that there is material misstatement therein, we are required to communicate the matter to those charged with governance.
Responsibilities of Management and Those Charged with Governance 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, total comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind AS and the other accounting principles generally accepted in India, including Indian Accounting Standards specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
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 management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Companyâs financial reporting process.
Auditors'' 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 auditorsâ 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 controls 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 system in place and the operating effectiveness of such controls.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
- Conclude on the appropriateness of managementâs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Company to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorsâ 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 auditorsâ report. However, future events or conditions may cause the Company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditorsâ 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.
Other Matters
a) We did not audit the standalone financial statements/information of one Branch included in the standalone financial statements of the Company whose financial statements/financial information reflect total assets of Rs,899.80 crore as at March 31, 2019 and total revenues of Rs,25.22 crore for the year ended on that date, as considered in the standalone financial statements. The financial statements/information of this Branch have been audited by the Branch Auditor whose report has been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of this Branch, is based solely on the report of such Branch Auditor.
b) The standalone financial statements include the Companyâs proportionate share (relating to Jointly controlled operations) in assets Rs,544.39 crore, liabilities Rs,140.36 crore, income of Rs,152.52 crore and expenditure Rs,85.00 crore and elements making of the cash flow statement and related disclosures contained in the enclosed standalone financial statements and our observations thereon are based on unaudited statements from the operators to the extent available with the Company in respect of 14 blocks in India and overseas and have been certified by the management.
We have also placed reliance on technical/commercial evaluations by the management in respect of categorization of wells as exploratory, development and dry well, allocation of cost incurred on them, liability under New Exploration Licensing Policy (NELP) and nominated blocks for under-performance against agreed Minimum Work Programme.
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 (-the Order-) issued by the Central Government of India in terms of sub- section (11) of Section 143 of the Act, and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the -Annexure 1- a statement on the matters specified in the paragraphs 3 and 4 of the said Order, to the extent applicable.
2. We are enclosing our report in terms of Section 143 (5) of the Act, on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, in the -Annexure 2- on the directions issued by the Comptroller and Auditor General of India.
3. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books and proper returns adequate for the purpose of our audit have been received from the Branch not visited by us.
c) The report on the accounts of the Branch office of the Company audited under section 143(8) of the Act, by Branch Auditor has been sent to us and has been properly dealt with by us in preparing this report.
d) The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive income),Statement of changes in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account and with the returns received from the Branch not visited by us.
e) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
f) We have been informed that the provisions of Section 164(2) of the Act in respect of disqualification of directors are not applicable to the Company, being a Government Company in terms of notification no. G.S.R.463(E) dated June 5, 2015 issued by Ministry of Corporate Affairs, Government of India.
g) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in -Annexure 3-.
h) With respect to the other matters to be included in the Auditorsâ Report in accordance with the requirements of section 197(16) of the Act, as amended:
We are informed that the provisions of Section 197 read with Schedule V of the Act, relating to managerial remuneration are not applicable to the Company, being a Government Company, in terms of Ministry of Corporate Affairs Notification no. G.S.R. 463 (E) dated June 5, 2015.
i) 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 standalone financial statements
- Refer Note 36 B to the standalone financial statements.
ii. The Company has made provision, as required under the applicable law or Indian accounting standards, for material foreseeable losses, if any, on long term contracts including derivative contracts - Refer Note 17 to standalone financial statements.
Hi. There has been no delay in transferring the amount, required to be transferred to the Investor Education and Protection Fund by the Company.
Annexure referred to in Independent Auditors'' Report of even date to the members of Indian Oil Corporation Limited on the standalone financial statements for the year ended March 31, 2019
(i) (a) The Company has generally maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) There is a regular programme of physical verification of all fixed assets, other than LPG cylinders and pressure regulators with customers, over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its fixed assets. In our opinion and as per the information given by the Management, the discrepancies observed were not material and have been appropriately accounted for in the books.
(c) According to the information and explanations given to us and on the basis of our examination of records of the Company, the title/lease deeds of the immovable properties are held in the name of the Company except in cases given below:
Particulars |
Number of cases |
Gross Block/Value (''in Crore) |
Net Block/Value (''in Crore) |
Leasehold Land- Operating leases |
15 |
33.75 |
29.53 |
Leasehold Land- Finance leases |
9 |
35.59 |
31.51 |
Leasehold Land- Total |
24 |
69.34 |
61.04 |
Freehold Land |
26 |
158.66 |
158.66 |
Building |
7 |
5.58 |
4.97 |
Building- operating Lease |
1 |
20.77 |
20.42 |
(ii) In our opinion and according to the information and explanations given to us, the inventory (excluding inventory lying with third parties and material in transit) has been physically verified by the management during the year 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, during the year, to any companies, firms, and limited liability partnerships or other parties covered in register maintained under Section 189 of the Act.
In view of the above, reporting under clause 3 (iii)(a), 3 (iii)(b) and 3 (iii)(c) of the Order is not applicable.
(iv) In our opinion and according to the information and explanations given to us, the Company is exempted from the provisions of section 186 of the Act as it is engaged in the business of providing infrastructure facilities as provided under Schedule-VI of the Act. There were no transactions during the year to which the provisions of section 185 of the Act were applicable.
(v) In our opinion and according to the information and explanations given to us, during the year, the Company has not accepted deposits from the public in terms of the provisions of sections 73 to 76 of the Act read with the Companies (Acceptance of Deposits) Rules,2014, as amended and other relevant provisions of the Act and no deposits are outstanding at the year end except old cases under dispute aggregating to Rs,0.01 crore, where we are informed that the Company has complied with necessary directions.
(vi) We have broadly reviewed the accounts and records maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records under sub-section (1) of Section 148 of the Act, read with Companies (Cost Records & Audit) Rules, 2014, as amended and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have not, however, made detailed examination of the records with a view to determine whether they are accurate and complete.
(vii) (a) Undisputed statutory dues including provident fund, employeesâ state insurance, income tax, sales-tax, value added tax, service
tax, duty of custom, duty of excise, goods and service tax, cess and other statutory dues have generally been regularly deposited with the appropriate authorities and there are no undisputed dues outstanding as on March 31, 2019 for a period of more than six months from the date they became payable.
(b) The disputed statutory dues that have not been deposited on account of matters pending before appropriate authorities are annexed in -Appendix A- with this report.
(viii)ln our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institutions, banks Government or debenture holders.
(ix) According to the information and explanations given to us, the Company has applied the term loans for the purpose for which those were obtained. During the year the Company has not raised money through initial public offer or further public offer (including debt instruments). However, the Company has issued bonds for working capital requirements in the international market and as per the information and explanations given to us, the funds were applied for the purpose for which those were raised.
(x) According to the information and explanations given to us and as represented by the Management and based on our examination of the books and records of the Company and in accordance with generally accepted auditing practices in India, no material case of frauds by the Company or on the Company by its officers or employees has been noticed or reported during the year.
(xi) The provisions of Section 197 read with Schedule V of the Act, relating to managerial remuneration are not applicable to the Company, being a Government Company, in terms of Ministry of Corporate Affairs Notification no. G.S.R. 463 (E) dated June 5, 2015.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company and therefore, the reporting under Clause 3 (xii) of the Order is not applicable.
(xiii)ln our opinion and according to the information and explanations given by the management, all transactions during the year with the related parties were approved by the Audit Committee and are in compliance with section 177 and 188 of the Act, where applicable and the details have been disclosed in the standalone financial statements, as required by the applicable Indian accounting standards.
(xiv) According to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year and therefore provisions of Section 42 of the Act are not applicable to the Company during the year.
(xv) In our opinion and according to the information and explanations given to us, the Company has not entered into any non-cash transactions specified under section 192 of the Act with directors or persons connected with him.
(xvi) According to the information and explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
REPORTING AS PER COMPANIES (AUDITORâS REPORT) ORDER 2016 (DISPUTED STATUTORY DUES)
Appendix - A
Sl. No. |
Name of the Statute |
Nature of Dues |
Forum Where Dispute is pending |
Gross Amount (''Rs, Crore) |
Amount Paid under Protest (Rs, Crore) |
Amount (net of deposits) (Rs, Crore) |
Period to which the Amount relates (Financial Years) |
1 |
CENTRAL EXCISE |
CENTRAL EXCISE |
Supreme Court |
67.70 |
12.74 |
54.96 |
1989 to 2007 |
ACT, 1944 |
High Court |
251.50 |
0.76 |
250.74 |
1996 to 2018 |
||
Tribunal |
3,308.58 |
29.00 |
3,279.58 |
1980 to 2018 |
|||
Revisionary |
14.78 |
0.10 |
14.68 |
2000 to 2016 |
|||
Authority |
|||||||
Appellate |
173.92 |
0.50 |
173.42 |
1988 to 2018 |
|||
Authority |
|||||||
(Below |
|||||||
Tribunal) |
|||||||
Total |
3,816.48 |
43.10 |
3,773.38 |
||||
2 |
CUSTOMS ACT, |
CUSTOMS DUTY |
Supreme Court |
11.04 |
2.00 |
9.04 |
1998 to 2001 |
1962 |
High Court |
2.10 |
2.05 |
0.05 |
2004 to 2017 |
||
Tribunal |
59.78 |
1.02 |
58.76 |
1994 to 2006 |
|||
Revisionary |
0.13 |
0.01 |
0.12 |
2010-11 |
|||
Authority |
|||||||
Appellate |
14.23 |
0.14 |
14.09 |
2003 to 2017 |
|||
Authority |
|||||||
(Below |
|||||||
Tribunal) |
|||||||
Total |
87.28 |
5.22 |
82.06 |
||||
3 |
SALES TAX/VAT |
SALES TAX/VAT/ |
Supreme Court |
25.19 |
- |
25.19 |
1986 to 2005 |
LEGISLATIONS |
TURNOVER TAX |
High Court |
1,317.69 |
82.30 |
1,235.39 |
1978 to 2017 |
|
Tribunal |
4,063.93 |
950.15 |
3,113.78 |
1984 to 2018 |
|||
Revisionary |
544.69 |
103.49 |
441.20 |
1979 to 2011 |
|||
Authority |
|||||||
Appellate |
1,758.81 |
192.50 |
1,566.31 |
1989 to 2018 |
|||
Authority |
|||||||
(Below |
|||||||
Tribunal) |
|||||||
Total |
7,710.31 |
1,328.44 |
6,381.87 |
||||
4 |
INCOME TAX ACT, |
INCOME TAX |
Supreme Court |
||||
1961 |
High Court |
428.31 |
427.69 |
0.62 |
1986 to 2006 |
||
Tribunal |
2,346.17 |
1,984.96 |
361.21 |
2003 to 2014 |
|||
Appellate |
2,184.72 |
645.50 |
1,539.22 |
2007 to 2016 |
|||
Authority |
|||||||
(Below |
|||||||
Tribunal) |
|||||||
Total |
4,959.20 |
3,058.15 |
1,901.05 |
||||
5 |
FINANCE ACT, |
SERVICE TAX |
Tribunal |
26.62 |
0.64 |
25.98 |
1996 to 2017 |
1994 |
Appellate |
17.06 |
0.33 |
16.73 |
2004 to 2017 |
||
Authority |
|||||||
(Below |
|||||||
Tribunal) |
|||||||
Total |
43.68 |
0.97 |
42.71 |
Sl. |
Name of the Statute |
Nature of Dues |
Forum Where |
Gross Amount |
Amount Paid |
Amount (net |
Period to |
No. |
Dispute is pending |
(RS, Crore) |
under Protest (Rs,Crore) |
of deposits) (''Rs,Crore) |
which the Amount relates (Financial Years) |
||
6 |
STATE |
ENTRY TAX |
Supreme Court |
5,534.02 |
36.59 |
5,497.43 |
1991 to 2018 |
LEGISLATIONS |
High Court |
255.17 |
165.68 |
89.49 |
1999 to 2018 |
||
Tribunal |
38.12 |
25.38 |
12.74 |
2001 to 2015 |
|||
Revisionary |
1.44 |
0.20 |
1.24 |
1999 to 2013 |
|||
Authority |
|||||||
Appellate |
9.41 |
4.10 |
5.31 |
1998 to 2015 |
|||
Authority |
|||||||
(Below |
|||||||
Tribunal) |
|||||||
Total |
5,838.16 |
231.95 |
5,606.21 |
||||
7 |
OTHER |
OTHERS |
Supreme Court |
2.64 |
- |
2.64 |
2010-11 |
CENTRAL/STATE |
COMMERCIAL TAX |
High Court |
90.42 |
10.38 |
80.04 |
2001 to 2019 |
|
LEGISLATIONS |
etc. |
Appellate Authority (Below Tribunal) Total GRAND TOTAL |
8.78 101.84 22,556.95 |
1.27 11.65 4,679.48 |
7.51 90.19 17,877.47 |
1999 to 2009 |
Note: Dues include penalty and interest, wherever applicable.
Sl. No. |
Directions |
Action Taken |
Impact on financial statements |
1. |
Whether the company has system in the place to process all the accounting transactions through it system? If, yes the implications of processing of accounting transaction outside IT system on the integrity of the accounts along with the financial implications, if any, may be stated. |
Company has a robust ERP system (SAP) to process all the accounting transactions through IT system. Some manual intervention is necessitated for valuation of inventories; however, accounting entries for the same are also processed through ERP. |
NIL |
2. |
Whether there is any restructuring of an existing loan or cases of wavier/write off of debts/loans/interest etc. made by a lender to the company due to the companyâs inability to repay the loan? If yes, financial impact may be stated |
Company has been regular in discharging its principal and interest obligations on various loans during 2018-19. Therefore, there are no cases of restructuring of any loan or cases of waiver/write off of debts/loans/interest etc. made by any lender due to the companyâs inability to repay the loan. |
NIL |
3. |
Whether funds received/receivable for specific schemes from central/state agencies were properly accounted for/utilized as per its term and conditions? List the cases of deviation. |
The Company has properly accounted for/ utilized funds received/receivable for specific schemes from central/state agencies as per its term and conditions |
NIL |
ANNEXURE 3 TO THE INDEPENDENT AUDITORSâ REPORT
Annexure referred to in Independent Auditorsâ report of even date to the members of Indian Oil Corporation Limited on the standalone financial statements for the year ended March 31, 2019
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (-the Act-)
We have audited the internal financial controls over financial reporting of Indian Oil Corporation Limited (-the Company-) as of March 31, 2019 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s 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 (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to 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 Act.
Auditors'' 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 -Guidance Note-) and the Standards on Auditing, issued by ICAI and prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and both issued by the Institute of Chartered Accountants of India. 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 were 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 auditorsâ judgments, including the assessment of the risks of material misstatement of the standalone 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 standalone financial statements for external purposes in accordance with the 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 standalone 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 standalone 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, 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, 2019 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 ICAI.
Other Matters
Our aforesaid report under section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls over financial reporting in so far as it relates to one Branch audited by the Branch Auditor, is based on the corresponding report of the Branch Auditor.
For S.K. MEHTA & CO . For V SANKAR AIYAR & CO.
Chartered Accountants Chartered Accountants
(Firm Regn. No. 000478N) (Firm Regn. No.l09208W)
Sd/- Sd/-
(CA. ROHIT MEHTA) (CA. M.S. BALACHANDRAN)
Partner Partner
M. No. 091382 M. No. 024282
For CK PRUSTY & ASSOCIATES For V. SINGHI & ASSOCIATES
Chartered Accountants Chartered Accountants
(Firm Regn. No. 323220E) (Firm Regn. No. 311017E)
Sd/- Sd/-
(CA. GV. JAYABAL) (CA. V. K. SINGHI)
Partner Partner
M. No. 015616 M. No. 050051
Place of Signature: New Delhi
Date: 17th May, 2019
Mar 31, 2018
To
The Members of Indian Oil Corporation Limited Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Indian Oil Corporation Limited ("the Company"), 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 in which are incorporated the returns for the year ended on that date audited by the branch auditor of the Company''s one branch, namely R&D division situated at Faridabad, Haryana, India.
Management''s Responsibility for the Standalone Ind AS Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134 (5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the state of affairs (financial position), profit or loss (financial performance including other comprehensive income), cash flows and changes in the equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended.
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.
Auditors'' 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 of standalone Ind AS 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 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 the standalone Ind AS financial statements. The procedures selected depend on the auditor''s 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 Company''s 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 Company''s 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 the Ind AS, of the state of affairs (financial position) of the Company as at 31st March, 2018, and its profit (financial performance including other comprehensive income) and its cash flows and the changes in equity for the year ended on that date.
Other Matters
a) We did not audit the financial statements/information of one branch included in the standalone Ind AS financial statements of the Company whose financial statements / financial information reflect total assets of Rs, 895.90 crores as at 31st March, 2018 and total revenues of Rs, 19.08 crores for the year ended on that date, as considered in the standalone Ind AS financial statements. The financial statements/information of this branch have been audited by the branch auditor whose report has been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of this branch, is based solely on the report of such branch auditor.
b) The standalone Ind AS financial statements include the Company''s proportionate share (relating to Jointly controlled operations) in assets Rs, 447.04 crores, liabilities Rs, 115.50 crores, income of Rs,18.92 crores and expenditure Rs, 41.01 crores and elements making of the cash flow statement and related disclosures contained in the enclosed standalone Ind AS financial statements and our observations thereon are based on unaudited statements from the operators to the extent available with the Company in respect of 14 blocks in India and overseas and have been certified by the management.
We have also placed reliance on technical / commercial evaluations by the management in respect of categorization of wells as exploratory, development and dry well, allocation of cost incurred on them, liability under New Exploration Licensing Policy (NELP) and nominated blocks for under-performance against agreed Minimum Work Programme.
Our opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Government of India in terms of sub- section (11) of Section 143 of the Act, and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the "Annexure 1" a statement on the matters specified in the paragraphs 3 and 4 of the said Order.
2. We are enclosing our report in terms of Section 143 (5) of the Act, on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, in the "Annexure 2" on the directions issued by the Comptroller and Auditor General of India.
3. As required by Section 143 (3) of the Act, we report that:
(a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
(b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books and proper returns adequate for the purpose of our audit have been received from the branch not visited by us;
(c) the report on the accounts of the branch office of the Company audited under section 143(8) of the Act, by branch auditor have been sent to us and have been properly dealt with by us in preparing this report;
(d) the Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account and with the returns received from the Branch not visited by us;
(e) in our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended;
(f) we have been informed that the provisions of Section 164(2) of the Act in respect of disqualification of directors are not applicable to the Company, being a Government Company in terms of notification no. G.S.R.463(E) dated 5th June, 2015 issued by Ministry of Corporate Affairs, Government of India;
(g) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure 3";
(h) with respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements - Refer Note 36 B.1 to the standalone Ind AS financial statements;
ii. The Company has made provision, as required under the applicable law or Indian accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts;
iii. There has been no delay in transferring the amounts required to be transferred to Investor Education and Protection Fund by the Company in accordance with the relevant provisions of the Act and the Rules made there under.
Annexure referred to in Independent Auditors'' Report of even date to the members of Indian Oil Corporation Limited on the standalone Ind AS financial statements for the year ended 31st March 2018
(i) (a) The Company has generally maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) There is a regular programme of physical verification of all fixed assets, other than LPG cylinders and pressure regulators with customers, over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its fixed assets. In our opinion and as per the information given by the Management, the discrepancies observed were not material and have been appropriately accounted for in the books.
(c) According to the information and explanations given to us and on the basis of our examination of records of the Company, the title/ lease deeds of the immovable properties are held in the name of the Company except in cases given below:
Particulars |
Number of cases |
Gross Block/ Value (Rs, in Crore) |
Net Block/ Value (Rs, in Crore) |
Leasehold Land- Operating leases |
16 |
36.53 |
32.67 |
Leasehold Land- Finance leases |
9 |
35.59 |
31.51 |
Leasehold Land- Total |
25 |
72.12 |
64.18 |
Freehold Land |
21 |
170.76 |
170.76 |
Building |
7 |
5.59 |
5.13 |
(ii) In our opinion and according to the information and explanations given to us, the inventory (excluding inventory lying with third parties and material in transit) has been physically verified by the management during the year 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, during the year, to any companies, firms, limited liability partnerships or other parties covered in register maintained under Section 189 of the Act.
In view of the above, reporting under clause 3 (iii)(a), 3 (iii)(b) and 3 (iii)(c) of the Order is not applicable.
(iv) In our opinion and according to the information and explanations given to us, the Company is exempted from the provisions of section 186 of the Act as it is engaged in the business of providing infrastructure facilities as provided under Schedule-VI of the Act. There were no transactions during the year to which the provisions of section 185 of the Act were applicable.
(v) In our opinion and according to the information and explanations given to us, during the year, the Company has not accepted deposits from the public in terms of the provisions of sections 73 to 76 of the Act read with the Companies (Acceptance of Deposits) Rules,
2014, as amended and other relevant provisions of the Act and no deposits are outstanding at the year end except old cases under dispute aggregating to Rs, 0.01 crore, where we are informed that the Company has complied with necessary directions.
(vi) We have broadly reviewed the accounts and records maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records under sub-section (1) of Section 148 of the Act, read with Companies (Cost Records & Audit) Rules, 2014, as amended and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have not, however, made detailed examination of the records with a view to determine whether they are accurate and complete.
(vii) (a) Undisputed statutory dues including provident fund, employees'' state insurance, income tax, sales-tax, value added tax, service
tax, duty of custom, duty of excise, goods and service tax, cess and other statutory dues have generally been regularly deposited with the appropriate authorities and there are no undisputed dues outstanding as on 31st March, 2018 for a period of more than six months from the date they became payable.
(b) The disputed statutory dues that have not been deposited on account of matters pending before appropriate authorities are annexed in "Appendix A" with this report.
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institutions, banks, Government or debenture holders.
(ix) According to the information and explanations given to us, the Company has applied the term loans for the purpose for which those were obtained. During the year the Company has not raised moneys through initial public offer or further public offer (including debt instruments).
(x) According to the information and explanations given to us and as represented by the Management and based on our examination of the books and records of the Company and in accordance with generally accepted auditing practices in India, no material case of frauds by the Company or on the Company by its officers or employees has been noticed or reported during the year.
(xi) The provisions of Section 197 read with Schedule V of the Act, relating to managerial remuneration are not applicable to the Company, being a Government Company, in terms of Ministry of Corporate Affairs Notification no. G.S.R. 463 (E) dated 5th June, 2015.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company and therefore, the reporting under Clause 3 (xii) of the Order is not applicable.
(xiii) In our opinion and according to the information and explanations given by the management, all transactions during the year with the related parties were approved by the Audit Committee and are in compliance with sections 177 and 188 of the Act, where applicable and the details have been disclosed in the standalone Ind AS financial statements, as required by the applicable Indian accounting standards.
(xiv) According to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year and therefore provisions of Section 42 of the Act are not applicable to the Company during the year.
(xv) In our opinion and according to the information and explanations given to us, the Company has not entered into any non-cash transactions specified under section 192 of the Act with directors or persons connected with him.
(xvi) According to the information and explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
REPORTING AS PER COMPANIES (AUDITORS'' REPORT) ORDER 2016 (DISPUTED STATUTORY DUES)
Appendix - A
Sl. No. |
Name of the Statute |
Nature of Dues |
Forum Where Dispute is pending |
Gross Amount (Rs, Crore) |
Amount Paid under Protest (Rs, Crore) |
Amount (net of deposits) (Rs, Crore) |
Period to which the Amount relates (Financial Years) |
1 |
CENTRAL EXCISE |
CENTRAL EXCISE |
|||||
ACT, 1944 |
|||||||
Supreme Court |
98.89 |
10.00 |
88.89 |
1989 to 2007 |
|||
High Court |
14.74 |
0.38 |
14.36 |
1992 to 2017 |
|||
Tribunal |
1,825.57 |
23.24 |
1,802.33 |
1998 to 2017 |
|||
Revisionary Authority |
7.14 |
0.04 |
7.10 |
2000 to 2016 |
|||
Appellate Authority |
48.88 |
0.87 |
48.01 |
1988 to 2017 |
|||
(Below Tribunal) |
|||||||
Total |
1,995.22 |
34.53 |
1,960.69 |
||||
2 |
CUSTOMS ACT, |
CUSTOMS DUTY |
|||||
1962 |
|||||||
Supreme Court |
8.98 |
2.00 |
6.98 |
1998 to 2001 |
|||
High Court |
2.10 |
2.05 |
0.05 |
2004 to 2017 |
|||
Tribunal |
60.17 |
1.02 |
59.15 |
1994 to 2005 |
|||
Revisionary Authority |
0.13 |
0.01 |
0.12 |
2011 to 2011 |
|||
Appellate Authority |
85.22 |
0.22 |
85.00 |
1994 to 2017 |
|||
(Below Tribunal) |
|||||||
Total |
156.60 |
5.30 |
151.30 |
||||
3 |
SALES TAX/ VAT |
SALES TAX/ VAT/ |
|||||
LEGISLATIONS |
TURNOVER TAX |
||||||
Supreme Court |
13.87 |
- |
13.87 |
1986 to 2004 |
|||
High Court |
1,279.96 |
85.70 |
1,194.26 |
1982 to 2017 |
|||
Tribunal |
2,393.07 |
503.71 |
1,889.36 |
1984 to 2018 |
|||
Revisionary Authority |
896.07 |
93.68 |
802.39 |
1979 to 2011 |
|||
Appellate Authority |
3,432.28 |
600.41 |
2,831.87 |
1978 to 2017 |
|||
(Below Tribunal) |
|||||||
Total |
8,015.25 |
1,283.50 |
6,731.75 |
||||
4 |
INCOME TAX ACT, |
INCOME TAX |
|||||
1961 |
|||||||
Supreme Court |
|||||||
High Court |
428.31 |
428.31 |
- |
1986 to 2006 |
|||
Tribunal |
2,033.40 |
1,783.29 |
250.11 |
2003 to 2013 |
|||
Revisionary Authority |
- |
- |
- |
||||
Appellate Authority |
1,218.24 |
35.21 |
1,183.03 |
2007 to 2015 |
|||
(Below Tribunal) |
|||||||
Total |
3,679.95 |
2,246.81 |
1,433.14 |
||||
5 |
FINANCE ACT, 1994 |
SERVICE TAX |
|||||
Tribunal |
494.64 |
0.51 |
494.13 |
1996 to 2016 |
|||
Appellate Authority |
10.65 |
0.13 |
10.52 |
2001 to 2017 |
|||
(Below Tribunal) |
|||||||
Total |
505.29 |
0.64 |
504.65 |
Sl. No. |
Name of the Statute |
Nature of Dues |
Forum Where Dispute is pending |
Gross Amount (Rs, Crore) |
Amount Paid under Protest (Rs, Crore) |
Amount (net of deposits) (Rs, Crore) |
Period to which the Amount relates (Financial Years) |
6 |
STATE LEGISLATIONS |
ENTRYTAX |
Supreme Court High Court Tribunal |
3.08 26,056.29 1,753.66 |
16,963.18 220.70 |
3.08 9,093.11 1,532.96 |
1991 to 2002 1999 to 2018 2001 to 2015 |
Revisionary Authority |
9.50 |
6.76 |
2.74 |
1999 to 2013 |
|||
Appellate Authority (Below Tribunal) Total |
11.38 27,833.91 |
3.63 17,194.27 |
7.75 10,639.64 |
1998 to 2015 |
|||
7 |
OTHER CENTRAL / STATE LEGISLATIONS |
OTHERS COMMERCIAL TAX etc. |
Supreme Court |
9.78 |
9.78 |
2005 to 2011 |
|
High Court |
69.23 |
10.00 |
59.23 |
2001 to 2013 |
|||
Revisionary Authority |
7.64 |
3.35 |
4.29 |
2010 to 2010 |
|||
Appellate Authority (Below Tribunal) Total |
21.74 108.39 |
1.27 14.62 |
20.47 93.77 |
1999 to 2018 |
|||
GRAND TOTAL |
42,294.61 |
20,779.67 |
21,514.94 |
||||
Note: Dues include penalty and interest, wherever applicable. |
Annexure referred to in Independent Auditors'' Report of even date to the members of Indian Oil Corporation Limited on the standalone Ind AS financial statements for the year ended 31st March 2018
Directions issued by the Comptroller & Auditor General of India under Section 143(5) of the Companies Act, 2013, indicating the areas to be examined by the Statutory Auditors during the course of audit of annual accounts of Indian Oil Corporation Limited (Standalone) for the year ended 31st March, 2018:
Sl. No. |
Directions |
Action Taken |
Impact on Ind AS financial statements |
||
1 |
Whether the Company has clear title/ lease deeds for freehold and leasehold respectivelyRs, If not, please state the area of freehold and leasehold land for which title/ lease deeds are not availableRs, |
The title/lease deeds for freehold and leasehold land are available and held in the name of the Company except title/lease deeds in 46 cases of 2222170 square meters land (Freehold Land in 21 cases of 1088528 square meters and Leasehold Land in 25 cases of 1133642 square meters) are pending for execution in the name of the Company. |
NIL |
||
2 |
Whether there are any cases of waiver/ write off of debts/loans/ interest etc., if yes, the reasons there for and the amount involved. |
According to the information and explanations given to us, there are no material cases of waiver/write off of debts/ loans/interest etc. However, in the normal course of business there are cases of waiver/write off etc. which are based on the facts of each case and specific approval as per "Delegation of Authority" Details of waiver/ write off during the year is as under: |
NIL |
||
Particulars |
'' in crore |
||||
Write off of Doubtful Debts |
8.09 |
||||
Write off of Doubtful Advances |
2.39 |
||||
Total |
10.48 |
||||
3 |
Whether proper records are maintained for inventories lying with third parties & assets received as gift / grant(s) from Govt. or other authorities. |
In our opinion proper records are maintained for inventories lying with third parties and also for assets received by the Company as gift / grants from government or other authorities. |
NIL |
Annexure referred to in Independent Auditors'' Report of even date to the members of Indian Oil Corporation Limited on the standalone Ind AS financial statements for the year ended 31st March 2018
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Indian Oil Corporation Limited ("the Company") as of 31st March 2018 in conjunction with our audit of the standalone Ind AS financial statements for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls 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 (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls 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 "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls 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 auditor''s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of standalone Ind AS financial statements for external purposes in accordance with generally accepted accounting principles including the Ind AS. A company''s 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 standalone Ind AS financial statements in accordance with generally accepted accounting principles including the Ind AS, 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 Company''s assets that could have a material effect on the standalone Ind AS 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, 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, 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 on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI.
Other Matters
Our aforesaid report under section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls over financial reporting in so far as it relates to one branch audited by the branch auditor, is based on the corresponding report of the branch auditor.
For S. K. MEHTA & CO.
Chartered Accountants
Firm Regn. No. 000478N
Sd/-
(CA. ROHIT MEHTA)
Partner
For V SANKAR AIYAR & CO.
Chartered Accountants
Firm Regn. No. 109208W
Sd/-
(CA. G SANKAR)
Partner
For CK PRUSTY & ASSOCIATES
Chartered Accountants
Firm Regn. No. 323220E
Sd/-
(CA. CHANDRAKANTA PRUSTY)
Partner
M. No. 057318
For V. SINGHI & ASSOCIATES
Chartered Accountants
Firm Regn. No. 311017E
sd/-
(CA. ANIRUDDHA SENGUPTA)
Partner
M. No. 051371
Place of Signature: New Delhi
Dated: 22nd May, 2018
Mar 31, 2017
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone financial statements of Indian Oil Corporation Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March 2017, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information in which are incorporated the returns for the year ended on that date audited by the branch auditors of the companyâs four branches, at locations of the branches.
Managementâs Responsibility for the Standalone Ind AS 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 state of affairs (financial position),profit or loss (financial performance including other comprehensive income),cash flows and changes in the equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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.
Auditorsâ Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit of standalone Ind AS 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 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 the standalone Ind-AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone 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 the Ind AS, of the state of affairs (financial position) of the Company as at 31st March, 2017, and its profit (financial performance including other comprehensive income) and its cash flows and the changes in equity for the year ended on that date.
Other Matters
a) The comparative financial information of the company for the year ended 31st March Rs.2016 and the transition date opening balance sheet as at 1st April Rs.2015 included in these standalone Ind-AS financial statements, are based on previously issued statutory financial statements prepared in accordance with Companies (Accounting Standards) Rules, 2016 audited by us for the year ended 31st March 2016, our report dated 27th May 2016, and audited by one of us and two predecessor auditors for the year ended 31st March 2015 whose report dated 29th May 2015, expressed an unmodified opinion on those standalone financial statements, as adjusted for the differences in accounting principles adopted by the company on transition to the Ind AS, which have been audited by us.
We did not audit the financial statements/information of 4 branches included in the standalone Ind AS financial statements of the Company whose financial statements / financial information reflect total assets of Rs.38,440.12 crore as at 31st March, 2017 and revenues of Rs.2,41,849.10 crore for the year ended on that date, as considered in the standalone financial statements. The financial statements/ information of these branches have been audited by the branch auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of these branches, is based solely on the report of such branch auditors.
b) The standalone Ind AS financial statements include the Companyâs proportionate share (relating to Jointly controlled operations) in assets Rs.430.29 crore, liabilities Rs.132.40 crore, income of Rs.0.37 crore and expenditure Rs.90.62 crore and elements making of the cash flow statement and related disclosures contained in the enclosed financial statements and our observations thereon are based on unaudited statements from the operators to the extent available with the Company in respect of 17 blocks in India and overseas and have been certified by the management.
We have also placed reliance on technical / commercial evaluation by the management in respect of categorization of wells as exploratory, development and dry well, allocation of cost incurred on them, liability under new exploration licensing policy (NELP) and nominated blocks for under-performance against agreed Minimum Work Programme.
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 Government of India in terms of sub-section (11) of section 143 of the Act, and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure 1, a statement on the matters specified in the paragraphs 3 and 4 of the said Order.
2. We are enclosing our report in terms of Section 143 (5) of the Act, on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, in the Annexure 2 on the directions issued by the Comptroller and Auditor General of India.
3. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books and proper returns adequate for the purpose of our audit have been received from the branches not visited by us.
(c) The reports on the accounts of the branch offices of the Company audited under section 143(8) of the Act, by branch auditors have been sent to us and have been properly dealt with by us in preparing this report
(d) The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
(e) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.
(f) We are informed that the provisions of Section 164(2) of the Act in respect of disqualification of directors are not applicable to the Company, being a Government Company in terms of notification no. G.S.R.463(E) dated 5th June 2015 issued by Ministry of Corporate Affairs.
(g) With respect to the adequacy of the internal financial controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate report in Annexure 3.
(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 Ind AS financial statements - Refer Note 36 (B1) to the financial statements;
ii. The Company has made provision, as required under the applicable law or Indian accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
iii. There has been no delay in transferring the amount required to be transferred to Investor Education and Protection Fund by the company, in accordance with the relevant provisions of the Companies Act and Rules made there under by the Company.
iv. The Company has provided requisite disclosures in the standalone Ind AS financial statements as regards its holding and dealings in Specified Bank Notes as defined in Notification SO 3407(E) dated 8th November, 2016 of the Ministry of Finance, during the period from 8th November 2016 to 30th December 2016; and such disclosures are in accordance with the books of account maintained by the Company- Refer Note 50 (4) of the standalone Ind AS financial statements.
ANNEXURE 1 TO THE INDEPENDENT AUDITORSâ REPORT
Annexure referred to in Independent Auditorsâ Report of even date to the members of Indian Oil Corporation Limited on the accounts for the year ended 31st March 2017
(i) (a) The Company has generally maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) There is a regular programme of physical verification of all fixed assets, other than LPG cylinders and pressure regulators with customers, over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In our opinion and as per the information given by the Management, the discrepancies observed were not material and have been appropriately accounted in the books.
(c) The title/ lease deeds of the immovable properties are held in the name of the Company except cases of Leasehold Land of 20,31,353 square meters having cost of Rs.119.28 crore and Freehold land of 12,08,962 square meters having cost of Rs.116.40 crore and buildings having cost of Rs.5.64 crore, of which title/ lease deeds are pending for execution in the name of the Company.
(ii) The inventory has been physically verified by the management at reasonable intervals and no material discrepancies were noticed on physical verification.
(iii) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured, during the year, to any companies, firms, limited liability partnerships or other parties covered in register maintained under Section 189 of the Companies Act, 2013.
In view of above, the clauses 3 (iii)(a), 3 (iii)(b) and 3 (iii)(c) of the Order are not applicable.
(iv) According to the information and explanations given to us, the Company, being a Government Company, is exempted from the provisions of section 186 as it is engaged in the business of providing infrastructure facilities as provided under Schedule-VI of the Companies Act Rs.2013. According to the information and explanations given to us, there were no transactions during the year to which the provisions of section 185 were applicable.
(v) In our opinion and according to the information and explanations given to us, during the year, the company has not accepted public deposits and no deposits are outstanding at the year end except old cases under dispute aggregating to â0.01 crore, where we are informed that the company has complied with necessary directions.
(vi) We have broadly reviewed the accounts and records maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records under sub-section (1) of Section 148 of the Companies Act, 2013 read with Companies (Cost Records & Audit) Rules, 2014 and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have not, however, made detailed examination of the records with a view to determine whether they are accurate and complete.
(vii) (a) Undisputed statutory dues including provident fund, employeesâ state insurance, income tax, sales-tax, value added tax, service tax, duty of custom, duty of excise, cess and other statutory dues have generally been regularly deposited with the appropriate authorities and there are no undisputed dues outstanding as on 31st March 2017 for a period of more than six months from the date they became payable.
(b) The disputed statutory dues that have not been deposited on account of matters pending before appropriate authorities are annexed in Appendix A with this report.
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institutions, banks, and Government or debenture holders.
(ix) According to the information and explanations given to us, the Company has applied the term loans for the purpose for which they were obtained. During the year the Company has not raised any amount through initial public offer or further public offer.
(x) According to the information and explanations given to us and as represented by the Management and based on our examination of the books and records of the Company and in accordance with generally accepted auditing practices in India, we have been informed that no material case of frauds by the Company or on the company by its officers or employees has been noticed or reported during the year. However, the Management has informed us of an alleged fraudulent act by an employee of the Company involving an amount of Rs.0.89 crore in the dispatches of products without generation of invoices and deviation from established procedures. We are further informed that punitive actions are in process against the officials involved.
(xi) As informed, the provisions of Section 197 relating to managerial remuneration are not applicable to the Company, being a Government Company, in terms of MCA Notification no. G.S.R. 463 (E) dated 5th June 2015.
(xii) The Company is not a Nidhi Company and hence the requirement of Clause 3 (xii) of the order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us, all transactions during the year with the related parties were approved by the Audit Committee and are in compliance with sections 177 of the Companies Act, 2013 where applicable and since the said transactions were in the ordinary course of business of the company and were at armâs length basis, the provisions of section 188 are not applicable, and the details have been disclosed in the Standalone Ind AS Financial Statements, as required by the applicable Indian accounting standards;
(xiv) According to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review.
(xv) In our opinion and according to the information and explanations given to us, the Company has not entered into any non-cash transactions with directors or persons connected with him.
(xvi) According to the information and explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
APPENDIX- A
REPORTING AS PER COMPANIES (AUDITORSâ REPORT) ORDER 2016 (DISPUTED STATUTORY DUES)
Sl. No. |
Name of the Statute / Nature of Dues |
Forum Where Dispute is pending |
Gross Amount (Rs. Crore) |
Amount Paid under Protest (Rs. Crore) |
Amount (net of deposits) (Rs. Crore) |
Period to which the Amount relates (Financial Years) |
1 |
CENTRAL EXCISE ACT, 1944 |
|||||
CENTRAL EXCISE |
Supreme Court |
26.49 |
- |
26.49 |
2006 to 2016 |
|
|
High Court |
27.97 |
0.38 |
27.59 |
2002 to 2016 |
|
|
Tribunal |
2,040.62 |
23.81 |
2,016.81 |
1991 to 2017 |
|
|
Revisionary Authority |
7.13 |
0.04 |
7.09 |
2000 to 2016 |
|
|
Appellate Authority |
14.01 |
0.85 |
13.16 |
2005 to 2017 |
|
|
(Below Tribunal) |
|||||
|
Total |
2,116.22 |
25.08 |
2,091.14 |
||
2 |
CUSTOMS ACT, 1962 |
|||||
CUSTOMS DUTY |
Supreme Court |
8.98 |
2.00 |
6.98 |
1998 to 2016 |
|
|
High Court |
0.21 |
- |
0.21 |
2004 to 2005 |
|
|
Tribunal |
66.58 |
3.07 |
63.51 |
1998 to 2016 |
|
|
Revisionary Authority |
0.13 |
0.01 |
0.12 |
2014 to 2015 |
|
|
Appellate Authority |
57.70 |
- |
57.70 |
2012 to 2016 |
|
|
(Below Tribunal) |
|||||
|
Total |
133.60 |
5.08 |
128.52 |
||
3 |
SALES TAX/ VAT LEGISLATIONS |
|||||
SALES TAX/ VAT/ TURNOVER TAX |
Supreme Court |
12.98 |
5.38 |
7.60 |
1999 to 2015 |
|
|
High Court1 |
3,570.93 |
116.27 |
3,454.66 |
1982 to 2016 |
|
|
Tribunal |
1,656.17 |
101.17 |
1,555.00 |
1988 to 2017 |
|
|
Revisionary Authority |
797.51 |
85.28 |
712.23 |
1990 to 2015 |
|
|
Appellate Authority |
3,893.00 |
914.21 |
2,978.79 |
1992 to 2017 |
|
|
(Below Tribunal) |
|||||
|
Total |
9,930.59 |
1,222.31 |
8,708.28 |
||
4 |
INCOME TAX ACT, 1961 |
|||||
INCOME TAX |
High Court |
426.40 |
426.40 |
- |
1986 to 2004 |
|
|
Tribunal |
1,836.54 |
1,582.89 |
253.65 |
2001 to 2012 |
|
|
Appellate Authority |
4,151.66 |
701.07 |
3,450.59 |
2007 to 2015 |
|
|
(Below Tribunal) |
|||||
|
Total |
6,414.60 |
2,710.36 |
3,704.24 |
||
5 |
FINANCE ACT, 1994 |
|||||
SERVICE TAX |
Tribunal |
35.12 |
0.67 |
34.45 |
2003 to 2017 |
|
|
Appellate Authority |
8.99 |
0.08 |
8.91 |
2007 to 2017 |
|
|
(Below Tribunal) |
|||||
|
Total |
44.11 |
0.75 |
43.36 |
||
6 |
STATE LEGISLATIONS |
|||||
ENTRY TAX |
Supreme Court |
28,027.85 |
15,637.23 |
12,390.62 |
1991 to 2017 |
|
|
High Court |
3,716.92 |
1,149.19 |
2,567.73 |
2003 to 2017 |
|
|
Tribunal |
102.53 |
36.92 |
65.61 |
1998 to 2016 |
|
|
Revisionary Authority |
9.50 |
1.22 |
8.28 |
1999 to 2013 |
|
|
Appellate Authority |
8.66 |
1.88 |
6.78 |
2007 to 2016 |
|
|
(Below Tribunal) |
|||||
|
Total |
31,865.46 |
16,826.44 |
15,039.03 |
||
7 |
OTHER CENTRAL / STATE |
|||||
LEGISLATIONS |
||||||
OTHERS COMMERCIAL TAX etc. |
Supreme Court |
9.10 |
- |
9.10 |
2004 to 2011 |
|
|
High Court |
69.11 |
10.00 |
59.11 |
2001 to 2009 |
|
|
Tribunal |
1.85 |
1.85 |
- |
2010 to 2011 |
|
|
Appellate Authority |
10.17 |
1.17 |
9.00 |
1999 to 2016 |
|
|
(Below Tribunal) |
|||||
|
Total |
90.23 |
13.02 |
77.21 |
||
|
GRAND TOTAL |
50,594.81 |
20,803.03 |
29,791.78 |
* Includes Rs.2,216.70 crore which has not been deposited on account of dispute with regard to the deferment of liability. (Refer Point No. 7 of Note-50 of the Standalone Ind-As Financial Statements)
NOTE: Dues include penalty and interest, wherever applicable.
ANNEXURE 2 TO THE INDEPENDENT AUDITORSâ REPORT
Directions issued by the Comptroller & Auditor General of India under Section 143(5) of the Companies Act, 2013, indicating the areas to be examined by the Statutory Auditors during the course of audit of annual accounts of Indian Oil Corporation Limited (Standalone) for the year 2016-17:
S. No. |
Directions |
Action Taken |
Impact on financial statement |
||
A. Directions |
|||||
1 |
Whether the Company has clear title/ lease deeds for freehold and leasehold respectively? If not, please state the area of freehold and leasehold land for which title/ lease deeds are not avaiable? |
The title/ lease deeds for freehold and leasehold land are available and held in the name of the Company except title/ lease deeds of 32,40,315 square meter land (Freehold Land 12,08,962 square meters and Leasehold Land 20,31,353 square meters) are pending for execution in the name of the Company. |
NIL |
||
2 |
Whether there are any cases of waiver/ write off of debts/loans/ interest etc., if yes, the reasons therefor and the amount involved. |
According to the information and explanations given to us, there are no material cases of waiver/write off of debts/ loans/interest etc. However, in the normal course of business there are cases of waiver/write off etc. which are based on the facts of each case and specific approval as per âDelegation of Authorityâ. Detail of waiver/ write off is as under: |
NIL |
||
Particulars |
Rs. in crore |
||||
Write off of Doubtful Debts |
66.72 |
||||
Waiver of penalty and interest etc. |
0.47 |
||||
Total |
67.19 |
||||
3 |
Whether proper records are maintained for inventories lying with third parties & assets received as gift/ grant(s) from Govt. or other authorities. |
Proper records are maintained for inventories lying with third parties and assets received by the company as gift / grants from government or other authorities. |
NIL |
For J GUPTA & CO. For S.K. MEHTA & CO. For V SANKAR AIYAR & CO. For CK PRUSTY & ASSOCIATES
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
(Firm Regn. No. 314010E) (Firm Regn. No. 000478N) (Firm Regn. No. 109208W) (Firm Regn. No.323220E)
Sd/- Sd/- Sd/- Sd/-
(CA. NANCY MURARKA) (CA. ROHIT MEHTA) (CA. M.S. BALACHANDRAN) (CA. GV. JAYABAL)
Partner Partner Partner Partner
M. No. 067953 M. No. 091382 M. No. 024282 M. No. 015616
Place of Signature : New Delhi
Dated : 25th May, 2017
Mar 31, 2015
Report on the standalone financial statements
We have audited the accompanying standalone financial statements of
Indian Oil Corporation Limited ("the Company"), which comprise the
Balance Sheet as at 31st March 2015, the Statement of Profit and Loss,
the Cash Flow Statement for the year then ended, and a summary of 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 standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
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
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 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 the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its profit and its cash flow for the year
ended on that date.
Other Matters
a) We did not audit the financial statements/information of 10 branches
included in the standalone financial statements of the Company whose
financial statements / financial information reflect total assets of
Rs. 40,285.61 Crores as at 31st March, 2015 and total revenues of Rs.
2,58,884.05 Crores for the year ended on that date, as considered in
the standalone financial statements. The financial
statements/information of these branches have been audited by the
branch auditors whose reports have been furnished to us, and our
opinion in so far as it relates to the amounts and disclosures included
in respect of these branches, is based solely on the report of such
branch auditors.
b) The financial statements include the Company''s proportionate share
(relating to Jointly controlled operations) in assets Rs. 399.29
Crores, liabilities Rs. 33.72 Crores, income of Rs.1.35 crore and
expenditure Rs. 263.55 Crores and the elements making up the Cash Flow
Statement and related disclosures contained in the enclosed financial
statements and our observations thereon are based on unaudited
statements from the operators to the extent available with the Company
in respect of 18 blocks in India and overseas and have been certified
by the management.
We have also placed reliance on technical / commercial evaluation by
the management in respect of categorization of wells as exploratory,
development and dry well, allocation of cost incurred on them,
liability under NELP and nominated blocks for under-performance against
agreed Minimum Work Programme.
Our opinion is not modified in respect of other matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2015 ("the
Order") issued by the Government of India in terms of sub-section (11)
of section 143 of the Act, and on the basis of such checks of the books
and records of the Company as we considered appropriate and according
to the information and explanations given to us, we give in the
Annexure 1 a statement on the matters specified in the paragraphs 3 and
4 of the said Order.
2. We are enclosing our report in terms of Section 143 (5) of the Act,
on the basis of such checks of the books and records of the Company as
we considered appropriate and according to the information and
explanations given to us, in the Annexure 2 on the directions and
sub-directions issued by Comptroller and Auditor General of India.
3. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of written representations received from the directors
none of the directors is disqualified from being appointed as a
director in terms of Section 164(2) of the Act as on 31st March 2015.
(f) With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements. Refer Note 28 to the
financial statements;
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses on
long-term contracts including derivative contracts;
iii. There has been no delay in transferring the amount to Investor
Education and Protection Fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and Rules made there
under by the Company.
ANNEXURE 1 TO THE AUDITORS'' REPORT
Annexure referred to in our report of even date to the members of
Indian Oil Corporation Limited on the accounts for the year ended 31st
March 2015
(i) (a) The Company has generally maintained proper records showing
full particulars including quantitative details and situation of fixed
assets.
(b) There is a regular programme of physical verification of all fixed
assets, other than LPG cylinders and pressure regulators with
customers, over a period of three years which, in our opinion, is
reasonable having regard to the size of the Company and the nature of
its assets. In our opinion and as per the information given by the
Management, the discrepancies observed were not material and have been
appropriately accounted in the books.
(ii) (a) The inventory has been physically verified by the management
at reasonable intervals.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. No material
discrepancies were noticed on physical verification.
(iii) The Company has not granted any loans, secured or unsecured to
any companies, firms or other parties covered in register maintained
under Section 189 of the Companies Act, 2013.
In view of the above, the clauses 3 (iii)(a) and 3 (iii)(b) of the
Order are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business for
purchase of inventory & fixed assets and for sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
systems.
(v) In our opinion and according to the information and explanations
given to us, during the year, the company has not accepted public
deposits and no deposits are outstanding at the year end except old
cases under dispute aggregating to Rs. 0.01 crore, where the company
has complied with necessary directions.
(vi) We have broadly reviewed the accounts and records maintained by
the Company pursuant to the Rules made by the Central Government for
the maintenance of cost records under sub-section (1) of Section 148 of
the Companies Act, 2013 read with Companies (Cost Records & Audit)
Rules, 2014 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. We have not,
however, made detailed examination of the records with a view to
determine whether they are accurate and complete.
(vii) (a) Undisputed statutory dues including provident fund, income
tax, sales- tax, wealth tax, service tax, custom duty, excise duty,
value added tax, cess and other statutory dues have generally been
regularly deposited with the appropriate authorities and there are no
undisputed dues outstanding as on 31st March 2015 for a period of more
than six months from the date they became payable.
(b) The disputed statutory dues aggregating to Rs. 20,606.32 crore that
have not been deposited on account of matters pending before
appropriate authorities, details of which are annexed in annexure A
with this report.
(c) According to the information and explanations given to us, the
Company has transferred the amount required to be transferred to the
Investor Education and Protection Fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and Rules made there
under.
(viii) The Company has no accumulated losses and has not 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 repayment of dues to
financial institutions, banks or debenture holders.
(x) According to the information and explanations given to us, in
respect of the guarantee given by the Company for the loans taken by
others from a bank, the terms and conditions thereof are not, prima
facie, prejudicial to the interest of the company.
(xi) According to the information and explanations given to us, the
term loans have been applied for the purpose for which they were
obtained.
(xii) According to the information and explanations given to us and as
represented by the Management and based on our examination of the books
and records of the Company and in accordance with generally accepted
auditing practices in India, we have been informed that no case of
frauds has been committed on or by the Company during the year.
REPORTING AS PER COMPANIES (AUDITORS'' REPORT) ORDER 2015 (DISPUTED
CASES)
SL NAME OF THE
STATUTE/ FORUM WHERE
DISPUTE AMOUNT PERIOD TO WHICH
NO. NATURE OF DUES IS PENDING (Net of
deposits) THE AMOUNT RELATES
(Rs. in
Crore) (FINANCIAL YEARS)
1 CENTRAL EXCISE High Court 1,223.79 2002 to 2015
Tribunal 1,177.09 1980 to 2015
Revisionary
Authority 34.20 2000 to 2015
Appellate
Authority
(Below Tribunal) 15.90 1993 to 2015
Total 2,450.98
2 CUSTOMS DUTY Supreme Court 0.52 1998 to 2015
Tribunal 64.65 1980 to 2015
Revisionary
Authority 0.11 2011 to 2015
Appellate
Authority
(Below Tribunal) 0.61 2011 to 2015
Total 65.89
3 SALES TAX/
VAT/ TURNOVER
TAX Supreme Court 30.87 1999 to 2015
High Court 769.21 1978 to 2015
Tribunal 3,698.81 1985 to 2015
Revisionary
Authority 1,170.56 1979 to 2015
Appellate
Authority
(Below Tribunal) 1,983.58 1981 to 2015
Total 7,653.03
4 INCOME TAX Tribunal 11.27 2003 to 2015
Appellate
Authority
(Below Tribunal) 134.47 2002 to 2015
Total 145.74
5 SERVICE TAX Tribunal 30.33 2002 to 2015
Appellate
Authority (Below
Tribunal) 39.24 2001 to 2015
Total 69.57
6 ENTRY TAX Supreme Court 8,177.59 1991 to 2015
High Court 1,863.93 2003 to 2015
Tribunal 83.15 2000 to 2015
Revisionary
Authority 2.57 2010 to 2015
Appellate
Authority (Below
Tribunal) 33.17 1998 to 2015
Total 10,160.41
7 Others
(Commercial
Tax/ Supreme Court 6.48 1995 to 2015
Entertainment
Tax etc.) High Court 41.03 1989 to 2015
Tribunal 1.17 1998 to 2015
Appellate
Authority
(Below Tribunal) 12.02 1999 to 2015
Total 60.70
GRNAD TOTAL 20,606.32
ANNEXURE 2 TO THE AUDITORS'' REPORT
Annexure referred to in our report of even date to the members of
Indian Oil Corporation Limited on the accounts for the year ended 31st
March 2015
Sl.
No. Directions /
Sub-Directions Action Taken Impact on
financial
statement
A. Directions
1 If the Company has
been selected for
disinvestment, The department of disinvestment
had floated a request for Nil
a complete status
report in terms of
valuation of Proposal (RFP) for engagement
of merchant bankers and
Assets (including
intangible assets
and land) and selling brokers for
disinvestment of 10% stake in
IOCL
Liabilities (including
Committed and General through the offer of sale by
the promoters through stock
Reserves) may be
examined including
the mode exchanges (OFS method) in
the domestic market and the
and present stage of
disinvestment process last date of submission was
04.02.2015.
As informed by management no
further progress was made in
the matter till 31st March
2015. Therefore, the process
of valuation of assets &
liabilities has not been
undertaken till that date.
2 Please report whether
there are any cases of According to information
and explanations given to us, Nil
waiver/write off of
debts/loans/interest
etc., if yes, there are no material cases
of waiver/write off of debts/
the reasons therefor
and the amount
involved. loans/interest etc. However,
in the normal course of
business there are cases of
waiver/write off etc. which
are based on the facts of each
case and specific approval as
per "Delegation of Authority".
3 Whether proper records
are maintained for Proper records are maintained
for inventories lying with Nil
inventories lying with
third parties & assets third parties. No assets have
been received by the
received as gift from
Govt. or other
authorities? company as gifts from
government or other authorities
during the current year.
4 A report on age-wise
analysis of pending There are 1041 pending legal/
arbitration cases against Nil
legal/arbitration
cases including the
reasons of the company. The age-wise
classification obtained from
pendency and existence/
effectiveness of a the management is as under:
monitoring mechanism
for expenditure on
all legal More than 25 years : 34
cases (foreign and
local) may be given. Fifteen to Twenty
Five years : 84
Five to Fifteen
years : 433
Less than Five
years : 490
These cases are pending for
hearing /disposal at the
respective forums. The Company
has a system for monitoring
expenditure on legal cases
(foreign and local) which in
our view is effective.
B. Sub - Directions: NIL
For DASS GUPTA &
ASSOCIATES For J GUPTA & CO. For PARAKH & CO.
Chartered Accountants Chartered Accountants Chartered Accountants
(Firm Regn.No.000112N) (Firm Regn.No.314010E) (Firm Regn.No.001475C)
Sd/- Sd/- Sd/-
(CA. Naresh Kumar) (CA. Nancy Murarka) (CA. Indra Pal Singh)
Partner Partner Partner
M. No. 082069 M. No. 067953 M. No. 410433
Place : New Delhi
Date : 29th May, 2015
Mar 31, 2014
We have audited the accompanying financial statements of Indian Oil
Corporation Limited ("the Company"), which comprise the Balance Sheet
as at March 31, 2014, and the Statement of Profit and Loss and Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards notified under the Companies Act, 1956 ("the
Act") read with General Circular 15/2013 dated September 13, 2013 of
the Ministry of Corporate Affairs in respect of section 133 of the
Companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgement, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Other Matters
The financial statements include the Company''s proportionate share in
jointly controlled assets Rs. 366.67 crore, liabilities Rs. 66.82 crore,
expenditure Rs. 271.28 crore and the elements making up the Cash Flow
Statement and related disclosures in respect of 18 blocks under New
Exploration Licensing Policy (NELPs) / Joint Venture (JVs) accounts for
exploration and production, which are based on statements from the
respective operators and have been certified by the management. Our
observations thereon are based on such statements from the operators
and certification of the management. Our opinion is not qualified in
respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 as
amended by the Companies (Auditor''s Report) (Amendment) Order 2004
("the Order") issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose
in the Annexure a statement on the matters specified in paragraph 4 and
5 of the said Order.
2. As required by section 227(3) of the Act, we report that:
i. 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;
ii. In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of the
books;
iii. The reports on the accounts of the branch offices audited under
section 228 of the Act by auditors appointed by the office of the
Comptroller Auditor General of India have been forwarded to us as
required by clause (c) of sub-section (3) of section 228 of the Act and
have been dealt with in preparing our report in the manner considered
necessary by us;
iv. The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
v. In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards notified under the Companies Act, 1956 read with
the General Circular 15/2013 dated September 13, 2013 of the Ministry
of Corporate Affairs in respect of section 133 of the Companies Act,
2013
vi. Disclosure in terms of clause (g) of sub-section (1) of section 274
of the Companies Act, 1956 is not required for Government Companies as
per Notification No. GSR 829(E) dated October 21, 2003 issued by the
Department of Company Affairs
ANNEXURE TO THE AUDITORS'' REPORT
(Referred to in Paragraph 1 under "other legal and regulatory
requirements" of our report of even date)
Based upon the information and explanations furnished to us and the
books and records examined by us in the normal course of our audit, we
report that to the best of our knowledge and belief:
i) The Company has generally maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
The Fixed Assets of the Company, other than LPG cylinders and pressure
regulators with customers, are physically verified by the Management in
a phased program of three years cycle which, in our opinion, is
reasonable having regard to the size of the Company and the nature of
its assets. In our opinion and as per the information given by the
Management, the discrepancies observed were not material and have been
appropriately accounted in the books.
Fixed assets disposed off during the year were not substantial and,
therefore, do not affect the going concern assumption.
ii) In our opinion, physical verification of inventory has been
conducted at reasonable intervals by the management.
In our opinion, the procedures of physical verification of inventory
followed by the management are adequate in relation to the size of the
Company and the nature of its business.
The Company has maintained proper records of inventory. No material
discrepancies have been noticed on physical verification between
physical stock and book records.
iii) The Company has not taken / granted any loans secured or unsecured
from/to companies, firms or other parties covered in the register
maintained under section 301 of the Act. Hence the question of
reporting under sub-clause a to g of clause (iii) of paragraph 4 of the
Order does not arise.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for purchase of inventory and fixed assets and sale of goods
and services. We have not observed any major weakness in the internal
controls during the course of audit.
v) In our opinion and according to the information and explanations
given to us, there are no transactions made in pursuance of contracts
or arrangements entered in the register maintained under Section 301 of
the Act exceeding the value of Rupees five lakhs in respect of any
party during the year.
vi) In our opinion and according to the information and explanations
given to us, during the year, the Company has not accepted public
deposits and no deposits are outstanding at the year-end except old
cases under dispute aggregating to Rs. 0.01 crore, where the Company has
complied with necessary directions.
vii) In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the order made by the Central Government for the
maintenance of cost records under section 209(1)(d) of the Act and we
are of the opinion that prima facie the prescribed accounts and records
have been made and maintained. We have not however, made a detailed
examination of these records.
ix) A) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company is
generally regular in depositing with appropriate authorities undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees'' State Insurance, Income Tax, Sales Tax,
Service Tax, Wealth Tax, Customs Duty, Excise Duty, Cess and other
material statutory dues applicable to it.
According to the records examined by us and information and
explanations given to us, no undisputed dues payable in respect of
income tax, wealth tax, sales tax, service tax, customs duty, excise
duty, investor education and protection fund and cess were in arrears,
as at March 31, 2014 for more than six months from the date they became
payable.
B) The details of dues of Sales Tax, Service Tax, Income Tax, Customs
Duty, Wealth Tax, Excise Duty and Cess, which have not been deposited
on account of any dispute are given in the Annexure to this report.
x) The Company neither has any accumulated losses as on March 31, 2014,
nor it has incurred any cash loss during the financial year ended on
that date 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 a
financial institution, bank or debenture holders.
xii) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) The Company is not a chit fund or a Nidhi / Mutual benefit fund /
society.
xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments.
xv) In our opinion, in respect of the guarantee given by the Company
for the loans taken by others from a bank, the terms and conditions
thereof are not, prima facie, prejudicial to the interest of the
Company.
xvi) On the basis of review of utilization of funds pertaining to term
loans on overall basis and related information as made available to us,
the term loans taken by the Company have been utilized for the purposes
for which they are obtained.
xvii) On the basis of review of utilization of funds, which is based on
overall examination of the balance sheet of the Company, related
information as made available to us and as represented to us by the
management, funds raised on short-term basis have not been used for
long-term investments.
xviii) The Company has not made any preferential allotment of shares
during the year.
xix) The Company has created necessary securities or charge as per the
debenture trust deed in respect of bonds/debentures issued and
outstanding at the year end.
xx) The Company has not raised any money by way of public issue during
the financial year. Accordingly, the provisions of clause (xx) of
paragraph 4 of the Order are not applicable to the Company.
xxi) As represented to us by the management and based on our
examination of the books and records of the company in accordance with
the generally accepted auditing practices in India, we have neither
come across any material fraud on or by the Company noticed or reported
during the year nor we have been informed of any such case by the
management that causes the financial statements to be materially
misstated.
For DASS GUPTA & ASSOCIATES For G M
KAPADIA & CO. For J
GUPTA & CO. For PARAKH
& CO.
Chartered Accountants Chartered
Accountants Chartered
Accountants Chartered
Accountants
(Firm Regn. No. 000112N) (Firm Regn.
No. 104767W) (Firm Regn.
No. 314010E) (Firm Regn.
No.001475C)
Sd/- Sd/- Sd/- Sd/-
(CA. Pankaj Mangal) (CA. Rajen Ashar) (CA. J N
Gupta) (CA. Prakash
Sharma)
Partner Partner Partner Partner
M. No. 097890 M. No. 048243 M. No.
051428 M. No. 072332
Place : New Delhi
Date : 29th May, 2014
Mar 31, 2013
We have audited the accompanying financial statements of Indian Oil
Corporation Limited ("the Company"), which comprise the Balance
Sheet as at March 31, 2013, and the Statement of Profit and Loss and
Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 as
amended by the Companies (Auditor''s Report) (Amendment) Order 2004
("the Order") issued by the Central Government of India in terms of
sub- section (4A) of Section 227 of the Companies Act, 1956, we enclose
in the Annexure a statement on the matters specified in paragraph 4 and
5 of the said Order.
2. As required by section 227(3) of the Act, we report that:
i. 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;
ii. In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of the
books;
iii. The Branch Auditors'' Reports have been forwarded to us and have
been appropriately dealt with while preparing our report;
iv. The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
v. In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956;
vi. Disclosure in terms of clause (g) of sub-section (1) of section
274 of the Companies Act, 1956 is not required for Government Companies
as per Notification No. GSR 829(E) dated October 21, 2003 issued by the
Department of Company Affairs.
Based upon the information and explanations furnished to us and the
books and records examined by us in the normal course of our audit, we
report that to the best of our knowledge and belief:
i) The Company has generally maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
The Fixed Assets of the Company, other than LPG cylinders and pressure
regulators, are physically verified by the Management in a phased
program of three years cycle which, in our opinion, is reasonable
having regard to the size of the Company and the nature of its assets.
In our opinion and as per the information given by the Management, no
material discrepancies were noticed during such verification.
Fixed assets disposed off during the year were not substantial and,
therefore, do not affect the going concern assumption.
ii) In our opinion, physical verification of inventory has been
conducted at reasonable intervals by the management.
In our opinion, the procedures of physical verification of inventory
followed by the management are adequate in relation to the size of the
Company and the nature of its business.
The Company has maintained proper records of inventory. No material
discrepancies have been noticed on physical verification between
physical stock and book records.
iii) The Company has not taken / granted any loans secured or unsecured
from/to companies, firms or other parties covered 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 there are adequate internal control procedures commensurate
with the size of the Company and the nature of its business for
purchase of inventory and fixed assets and sale of goods and services.
We have not observed any major weakness in the internal controls during
the course of audit.
v) In our opinion and according to the information and explanations
given to us, there are no transactions made in pursuance of contracts
or arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 exceeding the value of Rupees five lakhs in
respect of any party during the year.
vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of Section 58A and 58AA or any
other relevant provisions of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) Rules, 1975 with regard to the deposits
accepted from the public. In respect of orders passed by the court, the
same have been complied with.
vii) In our opinion, the company has an internal audit system
commensurate with its size and the nature of its business.
viii) We have broadly reviewed the books of account maintained by the
company pursuant to the order made by the Central Government for the
maintenance of cost records under section 209(1)(d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. We have not
however, made a detailed examination of these records.
ix) A) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company is
generally regular in depositing with appropriate authorities undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees'' State Insurance, Income Tax, Sales Tax,
Service Tax, Wealth Tax, Customs Duty, Excise Duty, Cess and other
material statutory dues applicable to it.
According to the records examined by us and information and
explanations given to us, no undisputed dues payable in respect of
income tax, wealth tax, sales tax, service tax, customs duty, excise
duty, investor education and protection fund and cess were in arrears,
as at 31st March, 2013 for more than six months from the date they
became payable.
B) The details of dues of Sales Tax, Service Tax, Income Tax, Customs
Duty, Wealth Tax, Excise Duty and Cess, which have not been deposited
on account of any dispute are given in the Annexure to this report.
x) The Company neither has any accumulated losses as on 31st March,
2013, nor it has incurred any cash loss during the financial year ended
on that date 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 a
financial institution, bank or debenture holders.
xii) The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) The company is not a chit fund or a Nidhi/Mutual benefit
fund/society.
xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments.
xv) In our opinion, in respect of the guarantee given by the company
for the loans taken by others from a bank, the terms and conditions
thereof are not, prima facie, prejudicial to the interest of the
company.
xvi) On the basis of review of utilization of funds pertaining to term
loans on overall basis and related information as made available to us,
the term loans taken by the Company have been utilized for the purposes
for which they are obtained.
xvii) On the basis of review of utilization of funds, which is based on
overall examination of the balance sheet of the company, related
information as made available to us and as represented to us by the
management, funds raised on short-term basis have not been used for
long-term investments.
xviii) The Company has not made any preferential allotment of shares
during the year.
xix) The Company has created necessary securities or charge as per the
debenture trust deed in respect of bonds/debentures issued and
outstanding at the year end.
xx) The Company has not raised any money by way of public issue during
the financial year.
xxi) As represented to us by the management and based on our
examination of the books and records of the company in accordance with
the generally accepted auditing practices in India, we have neither
come across any material fraud on or by the Company noticed or reported
during the year nor we have been informed of any such case by the
management that causes the financial statements to be materially
misstated.
REPORTING AS PER COMPANIES (AUDITOR''S REPORT) ORDER 2003 (DISPUTED
CASES)
SR NAME OF THE STATUTE/ FORUM WHERE DISPUTE
NO NATURE OF DUES IS PENDING
1 CENTRAL ExCISE High Court
Tribunal
Appellate Authority (Below Tribunal)
Total
2 CUSTOMS DUTY Tribunal
Appellate Authority (Below Tribunal)
Total
3 SALES TAX/VAT/TURNOVER TAX Supreme Court
High Court
Tribunal
Revisionary Authority
Appellate Authority (Below Tribunal)
Total
4 INCOME TAX Tribunal
Appellate Authority (Below Tribunal)
Total
5 SERVICE TAX Tribunal
Appellate Authority (Below Tribunal)
Total
6 ENTRY TAX Supreme Court
High Court
Tribunal
Appellate Authority (Below Tribunal)
Total
7 OTHERS (COMMERCIAL TAX/ Supreme Court
ENTERTAINMENT TAX ETC.) High Court
Tribunal
Total
GRAND TOTAL
NAME OF THE STATUTE NET AMOUNT PERIOD TO WHICH
(Rs. in Crore) THE AMOUNT RELATES
(FINANCIAL YEARS)
CENTRAL EXCISE 56.82 2002 to 2013
1.246.00 1980 to 2013
15.91 1993 to 2013
TOTAL 1,318.73
CUSTOMS DUTY 84.87 1994 to 2013
1.49 2011 to 2013
TOTAL 86.36
SALES TAX/VAT/TURNOVER TAX 298.40 2002 to 2013
873.86 1978 to 2013
3.140.00 1979 to 2013
625.63 1993 to 2013
2,512.95 1981 to 2013
TOTAL 7,450.84
INCOME TAX 0.42 2003 to 2013
4.58 2001 to 2013
TOTAL 5.00
SERVICE TAX 93.81 2004 to 2013
2.91 2004 to 2013
TOTAL 96.72
ENTRY TAX 8,365.98 1991 to 2013
486.09 2003 to 2013
103.86 1999 to 2013
11.51 1997 to 2013
TOTAL 8,967.44
OTHERS (COMMERCIAL TAX/
ENTERTAINMENT TAX ETC.) 33.31 2008 to 2013
0.06 2010 to 2013
1.07 1998 to 2013
TOTAL 34.44
GRAND TOTAL 17,959.53
For B.M. CHATRATH & CO. For DASS GUPTA &
ASSOCIATES For PARAKH & CO.
Chartered Accountants Chartered Accountants Chartered Accountants
(Firm Regn.No.301011E) (Firm Regn.No.000112N) (Firm Regn.No.001475C)
Sd/- Sd/- Sd/-
(CA. P.R. Paul) (CA. Raaja Jindal) (CA. Thalendra Sharma)
Partner Partner Partner
M. No.051675 M. No. 504111 M. No. 079236
Place : New Delhi
Date : 30th May, 2013
Mar 31, 2012
We have audited the attached Balance Sheet of Indian Oil Corporation
Limited as at 31st March, 2012 and the Statement of Profit and Loss and
also the Cash Flow Statement for the year ended on that date annexed
thereto, in which are incorporated accounts of the branches audited by
the Branch Auditors whose reports have been considered in preparing
this report. 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.
We conducted our audit in accordance with the auditing standards
generally accepted in India, which require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
1. As required by the Companies (Auditor's Report) Order, 2003 as
amended by the Companies (Auditor's Report) (Amendment) Order 2004
("the Order") issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose
in the Annexure a statement on the matters specified in paragraph 4 and
5 of the said Order.
2. Further to our comments in the Annexure referred to 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 appears from our examination of the books
and proper returns adequate for the purposes of our audit have been
received from the branches not visited by us;
c) The Branch Auditors' Reports have been forwarded to us and have been
appropriately dealt with while preparing our report;
d) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account and with the audited returns from the branches;
e) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956;
f) Disclosure in terms of clause (g) of sub-section (1) of Section 274
of the Companies Act, 1956 is not required for Government Companies as
per Notification No. GSR 829(E) dated October 21, 2003 issued by the
Department of Company Affairs;
g) We invite attention, without qualifying our report, to Point 'E'
in . Note-10 regarding impairment loss wherein, we have relied on the
estimates and assumptions made by the company in arriving at
recoverable value of assets;
h) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, read in conjunction
with the Significant Accounting Policies (Note -1), Notes to Financial
Statements (Note - 2 to 46), give the information required by the
Companies Act, 1956 in the manner so required and give a true and fair
view in conformity with 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 flow for the
year ended on that date.
Based upon the information and explanations furnished to us and the
books and records examined by us in the normal course of our audit, we
report that to the best of our knowledge and belief:
i) The Company has generally maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
The Fixed Assets of the Company, other than LPG cylinders and pressure
regulators, are physically verified by the Management in a phased
program of three years cycle which, in our opinion, is reasonable
having regard to the size of the Company and the nature of its assets.
In our opinion and as per the information given by the Management, no
material discrepancies were noticed during such verification.
Fixed assets disposed off during the year were not substantial and,
therefore, do not affect the going concern assumption.
ii) In our opinion, physical verification of inventory has been
conducted at reasonable intervals by the management.
In our opinion, the procedures of physical verification of inventory
followed by the management are adequate in relation to the size of the
Company and the nature of its business.
The Company has maintained proper records of inventory. No material
discrepancies have been noticed on physical verification between
physical stock and book records.
iii) The Company has not taken / granted any loans secured or unsecured
from/to companies, firms or other parties covered 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 there are adequate internal control procedures commensurate
with the size of the Company and the nature of its business for
purchase of inventory and fixed assets and sale of goods and services.
We have not observed any major weakness in the internal controls during
the course of audit.
v) In our opinion and according to the information and explanations
given to us. there are no transactions made in pursuance of contracts
or arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 exceeding the value of Rupees five lakhs in
respect of any party during the year.
vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of Section 58A and 58AA or any
other relevant provisions of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) Rules, 1975 with regard to the deposits
accepted from the public. In respect of orders passed by the court, the
same have been complied with.
vii) In our opinion, the company has an internal audit system
commensurate with its size and the nature of its business.
viii) We have broadly reviewed the books of account maintained by the
company pursuant to the order made by the Central Government for the
maintenance of cost records under Section 209(1 )(d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. We have not
however, made a detailed examination of these records.
ix) A) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company is
generally regular in depositing with appropriate authorities undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees' State Insurance, Income Tax, Sales Tax,
Service Tax, Wealth Tax, Customs Duty, Excise Duty, Cess and other
material statutory dues applicable to it.
According to the records examined by us and information and
explanations given to us, no undisputed dues payable in respect of
income tax, wealth tax, sales tax, service tax, customs duty, excise
duty, investor education and protection fund and cess were in arrears,
as at 31st March, 2012 for more than six months from the date they
became payable.
B) The details of dues of Sales Tax, Service Tax, Income Tax, Customs
Duty, Wealth Tax, Excise Duty and Cess, which have not been deposited
on account of any dispute are given in the Annexure to this report.
x) The Company neither has any accumulated losses as on 31st March,
2012, nor it has incurred any cash loss during the financial year ended
on that date 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 a
financial institution, bank or debenture holders.
xii) The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) The company is not a chit fund or a Nidhi/Mutual benefit
fund/society.
xiv) In our opinion, the company is not dealing in or trading in shares,
securities, debentures and other investments.
xv) In our opinion, in respect of the guarantee given by the company
for the loans taken by others from a bank, the terms and conditions
thereof are not, prima facie, prejudicial to the interest of the
company.
xvi) On the basis of review of utilization of funds pertaining to term
loans on overall basis and related information as made available to us,
the term loans taken by the Company have been utilized for the purposes
for which they are obtained.
xvii) On the basis of review of utilization of funds, which is based on
overall examination of the balance sheet of the company, related
information as made available to us and as represented to us by the
management, funds raised on short-term basis have not been used for
long-term investments.
xviii) The Company has not made any preferential allotment of shares
during the year.
xix) The Company has created necessary securities or charge as per the
debenture trust deed in respect of debentures issued and outstanding at
the year end.
xx) The Company has not raised any money by way of public issue during
the financial year.
xxi) As represented to us by the management and based on our
examination of the books and records of the company in accordance with
the generally accepted auditing practices in India, we have neither
come across any material fraud on or by the Company noticed or reported
during the year nor we have been informed of any such case by the
management that causes the financial statements to be materially
misstated.
For B.M. CHATRATH & CO. For DASS GUPTA & ASSOCIATES For PARAKH & CO.
Chartered Accountants Chartered Accountants Chartered
Accountants
(Firm Regn.
No. 301011E) (Firm Regn. No. 000112N) (Firm Regn.
No.001475C)
Sd/- Sd/- Sd/-
(CA. P.R. Paul) (CA. Naresh Kumar) (CA. Aditya Kumar
Rawat)
Partner Partner Partner
M. No.051675 M. No. 082069 M. No. 071767
Place : New Delhi
Date : May 28, 2012
Mar 31, 2011
We have audited the attached Balance Sheet of Indian Oil Corporation
Limited as at 31st March, 2011 and the Profit and Loss Account and also
the Cash Flow Statement for the year ended on that date annexed
thereto, in which are incorporated accounts of the branches audited by
the Branch Auditors whose reports have been considered in preparing
this report. 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.
We conducted our audit in accordance with the auditing standards
generally accepted in India, which require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
1. As required by the Companies (Auditors' Report) Order, 2003 as
amended by the Companies ( Auditors' Report ) ( Amendment ) Order 2004
( "the Order" ) issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose
in the Annexure a statement on the matters specified in paragraph 4 and
5 of the said Order.
2. Further to our comments in the Annexure referred to 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 appears from our examination of the books
and proper returns adequate for the purposes of our audit have been
received from the branches not visited by us;
c) The Branch Auditors' Reports have been forwarded to us and have been
appropriately dealt with while preparing our report;
d) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account
and with the audited returns from the branches;
e) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956;
f) Disclosure in terms of clause (g) of sub-section (1) of Section 274
of the Companies Act, 1956 is not required for Government Companies as
per Notification No. GSR 829(E) dated October 21, 2003 issued by the
Department of Company Affairs;
g) We invite attention, without qualifying our report, to Note No. 21
regarding impairment loss wherein, we have relied on the estimates and
assumptions made by the company in arriving at recoverable value of
assets.
h) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, read in conjunction
with the Significant Accounting Policies (Schedule ÃQ'), Notes on
Accounts (Schedule ÃR') and other schedules (ÃS' to ÃX'), give the
information required by the Companies Act, 1956 in the manner so
required and give a true and fair view in conformity with 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 flow for the
year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in paragraph 1 of our Report of even Date)
Based upon the information and explanations furnished to us and the
books and records examined by us in the normal course of our audit, we
report that to the best of our knowledge and belief :
(i) The Company has generally maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
The Fixed Assets of the Company, other than LPG cylinders and pressure
regulators, are physically verified by the Management in a phased
programme of three years cycle which, in our opinion, is reasonable
having regard to the size of the Company and the nature of its assets.
In our opinion and as per the information given by the Management, no
material discrepancies were noticed during such verification.
Fixed assets disposed off during the year were not substantial and,
therefore, do not affect the going concern assumption.
ii) In our opinion, physical verification of inventory has been
conducted at reasonable intervals by the management.
In our opinion, the procedures of physical verification of inventory
followed by the management are adequate in relation to the size of the
Company and the nature of its business.
The Company has maintained proper records of inventory. No material
discrepancies have been noticed on physical verification between
physical stock and book records.
iii) The Company has not taken / granted any loans secured or unsecured
from/to companies, firms or other parties covered 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 there are adequate internal control procedures commensurate
with the size of the Company and the nature of its business for
purchase of inventory and fixed assets and sale of goods and services.
We have not observed any major weakness in the internal controls during
the course of audit.
v) In our opinion and according to the information and explanations
given to us, there are no transactions made in pursuance of contracts
or arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 exceeding the value of Rupees five lakhs in
respect of any party during the year.
vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of Section 58A and 58AA or any
other relevant provisions of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) Rules, 1975 with regard to the deposits
accepted from the public. In respect of orders passed by the court, the
same have been complied with.
vii) In our opinion, the company has an internal audit system
commensurate with its size and the nature of its business.
viii) We have broadly reviewed the books of account maintained by the
company pursuant to the order made by the Central Government for the
maintenance of cost records under Section 209(1)(d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. We have not
however, made a detailed examination of these records.
ix) A) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company is
generally regular in depositing with appropriate authorities undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees' State Insurance, Income Tax, Sales Tax,
Service Tax, Wealth Tax, Customs Duty, Excise Duty, Cess and other
material statutory dues applicable to it.
According to the records examined by us and information and
explanations given to us, no undisputed dues payable in respect of
Income Tax, Wealth Tax, Sales Tax, Service Tax, Customs Duty, Excise
Duty, Investor Education And Protection Fund And Cess were in arrears,
as at 31st March, 2011 for more than six months from the date they
became payable.
B) The details of dues of Sales Tax, Service Tax, Income Tax, Customs
Duty, Wealth Tax, Excise Duty and Cess, which have not been deposited
on account of any dispute are given in the Annexure to this report.
x) The Company neither has any accumulated losses as on 31st March,
2011, nor it has incurred any cash loss during the financial year ended
on that date 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 a
financial institution, bank or debenture holders.
xii) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) The Company is not a chit fund or a Nidhi/Mutual benefit
fund/society.
xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments.
xv) In our opinion, in respect of the guarantee given by the company
for the loans taken by others from a bank, the terms and conditions
thereof are not, prima facie, prejudicial to the interest of the
Company.
xvi) On the basis of review of utilization of funds pertaining to term
loans on overall basis and related information as made available to us,
the term loans taken by the Company have been utilized for the purposes
for which they are obtained.
xvii) On the basis of review of utilization of funds, which is based on
overall examination of the balance sheet of the Company, related
information as made available to us and as represented to us by the
management, funds raised on short-term basis have not been used for
long-term investments.
xviii) The Company has not made any preferential allotment of shares
during the year.
xix) The Company has created necessary securities or charge as per the
debenture trust deed in respect of debentures issued and outstanding at
the year end.
xx) The Company has not raised any money by way of public issue during
the financial year.
xxi) As represented to us by the management and based on our
examination of the books and records of the Company in accordance with
the generally accepted auditing practices in India, we have neither
come across any material fraud on or by the Company noticed or reported
during the year nor we have been informed of any such case by the
management that causes the financial statements to be materially
misstated.
For V.K.DHINGRA & CO.
Chartered Accountants
(Firm Regn. No. 000250N)
Sd/-
(CA. Lalit Ahuja)
Partner
M. No. 085842
For PKF SRIDHAR & SANTHANAM
Chartered Accountants
(Firm Regn. No. 003990S)
Sd/-
(CA. V. Kothandaraman)
Partner
M. No. 025973
For B.M. CHATRATH & CO.
Chartered Accountants
(Firm Regn. No. 301011E)
Sd/-
(CA. P. R. Paul)
Partner
M. No.051675
Place : New Delhi
Date : May 30, 2011
Mar 31, 2010
We have audited the attached Balance Sheet of Indian Oil Corporation
Limited as at 31st March, 2010 and the Profit and Loss Account and also
the Cash Flow Statement for the year ended on that date annexed
thereto, in which are incorporated accounts of the branches audited by
the Branch Auditors whose reports have been considered in preparing
this report. 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.
We conducted our audit in accordance with the auditing standards
generally accepted in India, which require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
1. As required by the Companies (Auditors Report) Order, 2003 as
amended by the Companies (Auditors Report) (Amendment) Order 2004
("the Order") issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose
in the Annexure a statement on the matters specified in paragraph 4 and
5 of the said Order.
2. Further to our comments in the Annexure referred to 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 appears from our examination of the books
and proper returns adequate for the purposes of our audit have been
received from the branches not visited by us,
c) The Branch Auditors Reports have been forwarded to us and have been
appropriately dealt with while preparing our report;
d) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account
and with the audited returns from the branches;
e) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956;
f) Disclosure in terms of clause (g) of sub-section (1) of section 274
of the Companies Act, 1956 is not required for Government Companies as
per Notification No. GSR 829(E) dated October 21, 2003 issued by the
Department of Company Affairs;
g) We invite attention, without qualifying our report, to Note No. 21
regarding impairment loss wherein, we have relied on the estimates and
assumptions made by the company in arriving at recoverable value of
assets.
h) In our opinion and to the best of our information and according to
the explanations given to us. the said accounts, read in conjunction
with the Significant Accounting Policies (Schedule Q), Notes on
Accounts (Schedule R) and other schedules (S to X), give the
information required by the Companies Act, 1956 in the manner so
required and give a true and fair view in conformity with 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 flow for the
year ended on that date.
Annexure to the Auditors Report (Referred to in paragraph 1 of our
Report of even Date) Based upon the information and explanations
furnished to us and the books and records examined by us in the normal
course of our audit, we report that to the best of our knowledge and
belief:
i) The Company has generally maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
The Fixed Assets of the Company are physically verified by the
Management in a phased program of three years cycle which, in our
opinion, is reasonable having regard to the size of the Company and the
nature of its assets. In our opinion and as per the information given
by the Management. no material discrepancies were noticed during such
verification.
Fixed assets disposed off during the year were not substantial and,
therefore, do not affect the going concern assumption.
ii) In our opinion, physical verification of inventory has been
conducted at reasonable intervals by the management.
In our opinion, the procedures of physical verification of inventory
followed by the management are adequate in relation to the size of the
Company and the nature of its business.
The Company has maintained proper records of inventory. No material
discrepancies have been noticed on physical verification between
physical stock and book records.
iii) The Company has not taken / granted any loans secured or unsecured
from/to companies, firms or other parties covered 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 there are adequate internal control procedures commensurate
with the size of the Company and the nature of its business for
purchase of inventory and fixed assets and sale of goods and services.
We have not observed any major weakness in the internal controls during
the course of audit.
v) In our opinion and according to the information and explanations
given to us, there are no transactions made in pursuance of contracts
or arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 exceeding the value of Rupees five lakhs in
respect of any party during the year.
vi) In our opinion and according to the information and explanations
given to us, the company has complied with the directives issued by the
Reserve Bank of India and the provisions of Section 58A and 58AA or any
other relevant provisions of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) Rule, 1975 with regard to the deposits
accepted from the public. In respect of orders passed by the courts,
the same have been complied with.
vii) In our opinion, the company has an internal audit system
commensurate with its size and the nature of its business.
viii) We have broadly reviewed the books of account maintained by the
company pursuant to the order made by the Central Government for the
maintenance of cost records under section 209(1 )(d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. We have not
however, made a detailed examination of these records.
ix) A) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company is
generally regular in depositing with appropriate authorities undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees State Insurance, Income Tax, Sales Tax,
Service Tax, Wealth Tax, Customs Duty, Excise Duty, Cess and other
material statutory dues applicable to it, According to the records
examined by us and information and explanations given to us, no
undisputed dues payable in respect of aforesaid dues were outstanding
as at 31 st March, 2010 for a period of more than six months from the
date they became payable.
B) The details of dues of Sales Tax/Entry Tax/Service Tax/Income
Tax/Customs Duty/Wealth Tax/Excise Duty and Cess, which have not been
deposited on account of any dispute are given in the Annexure to this
report.
x) The Company neither has any accumulated losses as on 31st March.
2010, nor has it incurred any cash loss during the financial year ended
on that date 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 a
financial institution, bank or debenture holders.
xii) The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) The company is not a chit fund or a Nidhi/Mutual benefit
fund/society.
xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments.
xv) In our opinion, in respect of the guarantees given by the company
for the loans taken by others from a bank, the terms and conditions
thereof are not, prima facie, prejudicial to the interest of the
company.
xvi) On the basis of review of utilization of funds pertaining to term
loans on overall basis and related information as made available to us.
the term loans taken by the Company have been utilized for the purposes
for which they are obtained.
xvii) On the basis of review of utilization of funds, which is based on
overall examination of the balance sheet of the company, related
information as made available to us and as represented to us by the
management, funds raised on short-term basis have not been used for
long-term investments.
xviii) The Company has not made any preferential allotment of shares
during the year.
xix) The Company has created necessary securities or charge as per the
debenture trust deed in respect of debentures issued and outstanding at
the year end.
xx) The Company has not raised any money by way of public issue during
the financial year.
xxi) As represented to us by the management and based on our
examination of the books and records of the company in accordance with
the generally accepted auditing practices in India, we have neither
come across any material fraud on or by the Company noticed or reported
during the year nor we have been informed of any such case by the
management that causes the financial statements to be materially
misstated.
for V.K. DHINGRA & CO. for PKF SRIDHAR & SANTHANAM for B.M. CHATRATH &
CO.
Chartered Accountants Chartered Accountants Chartered Accountants
(Firm Regn. Mo.
000250N) (Firm Regn. No. 003990S)
Sd/- Sd/- Sd/-
(CA. VIPUL GIROTRA) (CA. S. NARASIMHAN) (CA. P.R. PAUL)
Partner Partner Partner
M. No. 084312 M. No. 206047 M. No. 051675
Place : New Delhi
Date : May 28. 2010