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Chennai Petroleum Corporation Ltd.

BSE: 500110 Sector: Oil & Gas
NSE: CHENNPETRO ISIN Code: INE178A01016
BSE LIVE 15:40 | 22 Sep 415.45 -22.00
(-5.03%)
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433.00

HIGH

436.00

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NSE 15:59 | 22 Sep 415.40 -23.25
(-5.30%)
OPEN

437.70

HIGH

437.70

LOW

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OPEN 433.00
PREVIOUS CLOSE 437.45
VOLUME 54976
52-Week high 466.95
52-Week low 230.80
P/E 10.43
Mkt Cap.(Rs cr) 6,186
Buy Price 0.00
Buy Qty 0.00
Sell Price 415.00
Sell Qty 18.00
OPEN 433.00
CLOSE 437.45
VOLUME 54976
52-Week high 466.95
52-Week low 230.80
P/E 10.43
Mkt Cap.(Rs cr) 6,186
Buy Price 0.00
Buy Qty 0.00
Sell Price 415.00
Sell Qty 18.00

Chennai Petroleum Corporation Ltd. (CHENNPETRO) - Auditors Report

Company auditors report

The Members of Chennai Petroleum Corporation Limited Chennai

REPORT ON THE STANDALONE IND AS FINANCIAL STATEMENTS

We have audited the accompanying standalone IND AS financial statements of ChennaiPetroleum Corporation Limited ("the Company") which comprise the Balance Sheetas at 31 st March 2017 and the Statement of Profit and Loss (including OtherComprehensive Income) the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and a summary of the significant accounting policies and otherexplanatory information.

MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE IND AS FINANCIAL STATEMENTS

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone IND AS financial statements that give a true and fair view of the stateof affairs(financial position) profit or loss (financial performance including othercomprehensive income) cash flows and changes in equity of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (IND AS) prescribed under section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalone INDAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

AUDITOR'S RESPONSIBILITY

Our responsibility is to express an opinion on these standalone IND AS financialstatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made there under. We conductedour audit of the standalone IND AS financial statements in accordance with the Standardson Auditing specified under Section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the standalone IND AS financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone IND AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone IND AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone IND AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone IND ASfinancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide 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 explanationsgiven to us the aforesaid standalone IND AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including the IND AS

a) of the state of affairs (financial position) of the Company as at 31 st March 2017

b) its profit/loss (financial performance including other comprehensive income)

c) its cash flows and the changes in equity for the year ended on that date.

OTHER MATTERS

The comparative financial information of the Company on the transition date openingbalance sheet as at 1st April 2015 included in these standalone IND AS financialstatements are based on the previously issued statutory financial statements prepared inaccordance with the Companies (Accounting Standards) Rules 2006 audited by thepredecessor auditor whose report for the year ended 31st March 2015 dated 23rd May 2015expressed an unmodified opinion on those standalone financial statements as adjusted forthe differences in the accounting principles adopted by the Company on transition to theIND AS which have been audited by us.

Our opinion is not modified in respect of these matters.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required under section 143(5) of the Act 2013 we give in the Annexure A of ourreport on the

directions/sub-directions issued by the Comptroller and Auditor General Of India.

2. As required by the Companies (Auditor's Report) Order 2016 ("The Order")issued by the Central Government of India in terms of section 143(11) of the Act we givein the Annexure B statement on the matters specified in paragraphs 3 and 4 of the Order.

3. As required by section 143(3) of the Act 2013 we reportthat:

a) We have sought and obtained all the information and explanations which to the bestof 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 theCompany 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 andstatement of changes in equity dealt with by this Report are in agreement with the booksof account.

d) In our opinion the aforesaid Standalone IND AS Financial Statements comply with theIndian Accounting Standards specified under section 133 of the Act.

e) Clauses referred to section 164(2) of the Act do not apply to directors ofGovernment Companies as per the notification.

f) With respect the adequacy of internal financial controls over financial reporting ofthe Company and the operating effectiveness of such controls referto our separate reportin Annexure C.

g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 financialposition in its Standalone IND AS Financial Statements (Refer Note 33 to the StandaloneIND AS Financial Statements);

(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses;

(iii) There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company; and

(iv) The company had provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016 and the same were in accordance with thebooks of accounts maintained by the company.

For R.Subramanian and Company LLP For S.Viswanathan LLP
Chartered Accountants Chartered Accountants
FRN: 004137S/S200047 FRN: 004770S/S200025
R.Rajaram V.C.Krishnan
Partner Partner
Membership No: 025210 Membership No: 022167

Place: Chennai Date:15th May 2017

The Annexure referred to in paragraph 1 of Our Report of even date to the members ofChennai Petroleum Corporation Limited on the accounts of the Company for the year endedMarch 312017.

On the basis of checks as we considered appropriate and according to the informationand explanations given to us during course of audit we report that

a) The Company is in possession of 186.86 acres of Land allotted by Government of TamilNadu (classified as Poramboke) for which Assignment deed is yet to be received.

b) There were no material waiver / write off of debts / loans / interest etc. otherthan waivers /write-offs in the normal course of business which were based on facts ofsuch cases and approved as per the delegation of authority policies of the Company.

c) The Company has maintained adequate records in respect of inventories lying withthird parties. No assets have been received as gifts from the Government or otherauthorities during the year. Proper records have been maintained in respect of grantsreceived from the Government or other authorities.

For R.Subramanian and Company LLP For S.Viswanathan LLP
Chartered Accountants Chartered Accountants
FRN: 004137S/S200047 FRN: 004770S/S200025
R.Rajaram V.C.Krishnan
Partner Partner
Membership No: 025210 Membership No: 022167

Place: Chennai

Date: 15th May 2017

The Annexure referred to in paragraph 2 of our report of even date to the members ofChennai Petroleum Corporation Limited. On the accounts of the Company for the year endedMarch 312017.

(i) On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we report that:

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Company has a program of physical verification of its fixed assets by which allfixed assets are verified in a phased manner in a period of 4 years. In our opinion thisperiodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its assets. According to the information and explanations givento us no material discrepancies were observed by the management on such verification.

(c) The title deeds of immovable properties are in the name of the Company except inthe case of 186.86 acres of land allotted by the Government of Tamil Nadu for whichassignment deeds are yet to be received.

(ii) According to the information and explanations given to us physical verificationof inventory has been conducted at reasonable intervals by the management and no materialdiscrepancies were noticed.

(iii) According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not granted any loans secured orunsecured to companies firms or other parties covered in the register maintained undersection 189 of the Act. Consequently the provisions of clauses 3(a) and 3(b) are notapplicable.

(iv) The Company has not provided any loan or investments or guarantees or Securitieswhich fall under the purview of section 185 or section 186 of the Act.

(v) According to the information and explanations given to us the Company has notaccepted deposits from the public and consequently the directives issued by the ReserveBank of India and provisions of section 73 to 76 or any other relevant provisions of theAct and Companies (Acceptance of Deposits) Amendment Rules 2015 are not applicable.

(vi) We have broadly reviewed the records maintained by the Company pursuant to therules prescribed by the Central Government for maintenance of cost records under section148(1) of the Act and are of the opinion that prima facie the prescribed accounts andrecords have been made and maintained. However we have not made a detailed examination ofthe records.

(vii) (a) According to the information and explanations given to us the Company hasbeen regular in

depositing with the appropriate authorities the undisputed statutory dues in the caseof provident Fund employees' state insurance income-tax customs duty sales tax andvalue added tax cess and any other material statutory dues. To the best of our knowledgeand according to the information and explanations given to us there are no arrears ofoutstanding statutory dues as at March 312017 for a period of more than six months fromthe date they became payable.

(b) The details of disputed dues of income-tax sales tax excise duty customs dutyand value added tax which have not been deposited as on March 312017 are given in theAnnexure T to our report.

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of any dues to financial institutions banksgovernments or debenture holders.

(ix) In our opinion and according to the information and explanations given to us theCompany has not raised any money by the way of initial public offer or further publicoffer (including debt instruments) hence clause (ix) is not applicable.

(x) According to the information and explanations given to us by the Company no fraudby the company or any fraud on the company by its officers and employees has been noticedor reported during the year.

(xi) Managerial remuneration paid by the Company is as per the section 197 read withschedule V of the Act.

(xii) The Company is not a Nidhi Company; hence clause (xii) is not applicable.

(xiii) Transactions with related parties are in compliance with section 177 and section188 of the Companies Act 2013 where applicable and the details have been disclosed in thefinancial statements as required under the relevant Indian Accounting Standard (IND AS).

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partially convertible debentures during theyear under review.Accordingly clause (xiv) is not applicable.

(xv) The Company has not entered into any non-cash transactions with the Directors orany persons connected with him. Accordingly clause (xv) is not applicable.

(xvi) The Company is not engaged in non-banking financial services therefore clause(xvi) is not applicable

For R.Subramanian and Company LLP For S.Viswanathan LLP
Chartered Accountants Chartered Accountants
FRN: 004137S/S200047 FRN: 004770S/S200025
R.Rajaram V.C.Krishnan
Partner Partner
Membership No: 025210 Membership No: 022167

Place: Chennai

Date: 15th May 2017

Report on the Internal Financial Controls under Clause (i) of Section 143(3) of theCompanies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of ChennaiPetroleum Corporation Limited ("the Company") as of March 312017 in conjunctionwith our audit of the standalone IND AS Financial Statements of the Company for the yearended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the Standalone IND AS Financial Statements whether due to fraudor error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of Standalone IND AS Financial Statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that:

1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;

2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of Standalone IND AS Financial Statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the Company arebeing made only in accordance with authorizations of management and directors of theCompany; and

3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the Company's assets that could have amaterial 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 financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India

For R.Subramanian and Company LLP For S.Viswanathan LLP
Chartered Accountants Chartered Accountants
FRN: 004137S/S200047 FRN: 004770S/S200025
R.Rajaram V.C.Krishnan
Partner Partner
Membership No: 025210 Membership No: 022167

Place: Chennai

Date: 15th May 2017