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Petronet LNG Ltd.

BSE: 532522 Sector: Others
NSE: PETRONET ISIN Code: INE347G01014
BSE LIVE 15:40 | 18 Aug 229.25 0.95
(0.42%)
OPEN

228.00

HIGH

233.35

LOW

224.35

NSE 15:57 | 18 Aug 228.55 0.40
(0.18%)
OPEN

226.15

HIGH

233.15

LOW

224.00

OPEN 228.00
PREVIOUS CLOSE 228.30
VOLUME 261969
52-Week high 236.65
52-Week low 160.85
P/E 19.48
Mkt Cap.(Rs cr) 34,388
Buy Price 0.00
Buy Qty 0.00
Sell Price 228.70
Sell Qty 969.00
OPEN 228.00
CLOSE 228.30
VOLUME 261969
52-Week high 236.65
52-Week low 160.85
P/E 19.48
Mkt Cap.(Rs cr) 34,388
Buy Price 0.00
Buy Qty 0.00
Sell Price 228.70
Sell Qty 969.00

Petronet LNG Ltd. (PETRONET) - Auditors Report

Company auditors report

To the Members of Petronet LNG Limited

1. Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Petronet LNGLimited ("the Company"} which comprise the balance sheet as at 31stMarch 2016 the statement of profit and loss the cash flow statement for the year thenended and a summary of significant accounting policies and other explanatory information.

2. Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5} of the Companies Act 2013 ("the Act"} with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts}Rules 2014. . This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making Judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

3. Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We have conducted our audit in accordance with the Standards on Auditing specifiedunder Section 143(10} of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's Judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

4. Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2016 and its profit and its cash flows for the year ended on that date.

5. Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report} Order 2016 ("the Order"}issued by the Central Government of India in terms of sub-section (11) of Section 143 ofthe Act we give in the "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order.

As required by Section 143(3) of the Act we report that:

a. We have sought and obtained all the information and explanations which to the 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 Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;

d. In our opinion the aforesaid Standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e. On the basis of written representations received from the Directors as on 31stMarch 2016 taken on record by the Board of Directors none of the Directors isdisqualified as on 31st March 2016 from being appointed as a Director interms of Section 164 (2) of the Act.

f. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B"; and

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 financial statements - Refer Note 27B to the financial statements;

ii. The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses - Refer Note 27 A (b) to thefinancial statements;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For T R Ohadha & Co LLP
Chartered Accountants
Firm Regn No. 006711N / N500028
Sd /-
Neena Goel
(Partner) Date: 16th May 2016
M.N.057986 Place: New Delhi

petronet lng limited

"Annexure A" referred to in paragraph 5 of our report of even date

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

(b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of two years. Inaccordance with this programme certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion the periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

2. The inventory has been physically verified by the management at reasonableintervals. No material discrepancies were noticed on such physical verification.

3. The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties in the register maintained under section189 of the Companies Act 2013. Therefore the provisions of clause 3 (iii) (a) (b) and(c) of the Companies (Auditors Report) Order 2016 are not applicable.

4. In our opinion and according to the information and explanation given to us theCompany has not granted any loan or given any guarantee or security or made any investmentcovered under Section 185 and 186 of the Companies Act 2013.

5. The Company has not accepted any deposits from the public within the provisions ofSections 73 to 76 or any other relevant provisions and the Rules framed thereunder.Accordingly the provisions of Clause 3 (v) of the Order are not applicable to theCompany.

6. We have broadly reviewed the books of accounts maintained by the Company pursuant toRules made by the Central Government for the maintenance of cost records under Section148(1) of the Companies Act 2013 and are of the opinion that prima facie the prescribedaccounts and records have been maintained.

7. (a) The Company is generally regular in depositing with appropriate authoritiesundisputed statutory dues including

Provident Fund Income Tax Sales Tax Service tax Custom Duty value added tax cessand other material statutory dues applicable to it. There were no arrears of undisputedstatutory dues as at 31st March 2016 which were outstanding for a period of more than sixmonths from the date they became payable. We are informed that there is no liabilitytowards Employees State Insurance and Excise Duty for the year under audit.

(b) According to the information and explanations given to us there are no materialdues of service tax which have not been deposited with the appropriate authorities onaccount of any dispute. However according to information and explanations given to usthe following dues of income tax and service tax have not been deposited by the Companyon account of disputes:

Name of the Statute Nature of the Dues (Rs in lacs) Period to which the amount relates Forum where dispute is pending
Service Tax Service Tax and Interest 65 FY 2003-04 to 2007-08 CESTAT Delhi
Service Tax Service Tax and Interest 754 FY 2006-07 to 2010-11 CESTAT Delhi
Service Tax Service Tax and Interest 31 FY 2011-12 CESTAT Delhi
Service Tax Service Tax and Interest 2 FY 2012-13 Additional Commissioner Delhi
Service Tax Service Tax and Interest 4 FY 2013-14 Additional Commissioner Delhi
Service Tax Service Tax and Interest 57 FY 2014-2015 Principal Commissioner Delhi
Income Tax Act 1961 Income Tax and Interest 1244 FY 2007-08 CIT (Appeals)

8. The Company has not defaulted in repayment of dues to financial institutions banksGovernment or debenture holders.

9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year. Accordingly paragraph3 (ix) of the Order is not applicable.

10. Based upon the audit procedures performed and information and explanations given bythe management we report that no fraud on or by the Company has been noticed or reportedduring the course of our audit.

11. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act.

12. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

13. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Sections 177 and 188 of the Companies Act 2013 where applicable anddetails of such transactions have been disclosed in the financial statements as requiredby the applicable Accounting Standards.

14. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

15. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into any non-cashtransactions with Directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

16. In our opinion and according to the information and explanation given to us theCompany is not required to be registered under Section 45-IA of the Reserve Bank of IndiaAct 1934.

For T R Ohadha & Co LLP
Chartered Accountants
Firm Regn No. 006711N / N500028
Sd /-
Neena Goel
(Partner) Date: 16th May 2016
M.N.057986 Place: New Delhi

"Annexure B" as referred to in paragraph 5(f) of our report of even date

Report on the internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of PetronetLNG Limited ("the Company") as of 31 March 2016 in conjunction with our audit ofthe standalone financial statements of the Company for the year ended on that date.

Management's Responsibility for internal Financial Controls

The Company's management is responsible for establishing and maintaining 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 included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or 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 financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that:

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

b) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorisations of management and Directors of the company; and

c) Provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements. Inherent Limitations of internal FinancialControls 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 31 March 2016 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 T R Chadha & Co LLP
Chartered Accountants
Firm Regn No. 006711N / N500028
Sd/-
Neena Goel
(Partner) Date: 16th May 2016
M.N.057986 Place: New Delhi