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Asian Petroproducts & Exports Ltd.

BSE: 524434 Sector: Industrials
NSE: N.A. ISIN Code: INE810M01019
BSE 00:00 | 19 Feb 3.10 0
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NSE 05:30 | 01 Jan Asian Petroproducts & Exports Ltd
OPEN 3.10
PREVIOUS CLOSE 3.10
VOLUME 200
52-Week high 3.13
52-Week low 2.85
P/E
Mkt Cap.(Rs cr) 2
Buy Price 3.25
Buy Qty 25.00
Sell Price 3.10
Sell Qty 100.00
OPEN 3.10
CLOSE 3.10
VOLUME 200
52-Week high 3.13
52-Week low 2.85
P/E
Mkt Cap.(Rs cr) 2
Buy Price 3.25
Buy Qty 25.00
Sell Price 3.10
Sell Qty 100.00

Asian Petroproducts & Exports Ltd. (ASIANPETROPROD) - Auditors Report

Company auditors report

TO THE MEMBERS OF ASIAN PETROPRODUCTS & EXPORTS LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of ASIAN PETROPRODUCTS& EXPORTS LIMITED ("the Company") which comprise the Balance Sheet as atMarch 31 2019 the Statement of Profit and Loss (statement of changes in equity) andstatement of Cash Flow for the year then ended and notes to the financial statementsincluding a summary of significant accounting policies and other explanatory information.

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 2019 and profit/loss changes in equity and its cash flows for the yearended on that date except mentioned in our basis for qualified opinion.

Basis for Qualified Opinion

1) The Company has not prepared its financial statement as on 31st March 2019 as perIND AS which is mandatory for the financial Year 2018-19. And also not complied thesection 133 of the Act read with Rule7 of the Companies (Accounts) rules 2014.

2) The standalone financial statements have been prepared assuming that company willcontinue as a going concern. But our review indicates that:??There is an erosion in thenet worth of the company.

• Current liabilities are far in excess to current assets.??Company is incurringcash losses for last many years.

• Overall liabilities are far in excess to total assets of the company.??ItsTrading Activities do not suggest trend is likely to reverse.

This indicates the existence of material uncertainty that may cast significant doubtabout the company's ability to continue as a going concern.

Qualified Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion except mentionedin our basis for qualified opinion.

Key Audit Matters

Key Audit Matters are these matters that in our professional judgment were of mostsignificance in our Audit of Standalone financial statement of the current period. Thesematters were addressed in the context of our Audit of Standalone financial statement as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. There are no significant key audit matters observed by us except thematters reported in the notes to accounts.

Responsibility of Management for the Standalone 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 (changes in equity) and cash flows of the Company inaccordance with the Accounting Principles generally accepted in India including theAccounting Standards specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities selection and application of appropriate implementation andmaintenance of 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 FinancialStatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so. Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditors Responsibility for the audit of Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

a) Identify and assess the risks of material misstatement of the standalone financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of non detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

b) Obtain an understanding of internal financial control relevant to the audit in orderto design audit procedures that are appropriate in the circumstances. Under section143(3)(I) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

c) Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

d) Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the ability ofthe group to continue as a going concern. If we conclude that a material uncertaintyexists we are required to draw attention in our Auditors' Report to the relateddisclosures in the standalone financial statement or if such disclosures are inadequateto modify our opinion. Our conclusion are based on the audit evidence obtained upto thedate of our Auditors' Report. However future events or conditions may cause the group tocease to continue as a going concern.

e) Evaluate the overall presentation structure and content of the standalone financialstatement including the disclosure and whether the standalone financial statementsrepresent the underline transactions and events in a manner that achieves fairpresentation.

f) Obtain sufficient appropriate audit evidence regarding the financial information ofthe entities or business activities within the group to express an opinion on thestandalone financial statements. We are responsible for the direction supervision andperformance of the audit of the financial statement of such entities include in thestandalone financial statements.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decision of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factor in (I) planning the scope of our auditwork and in evaluating the results of our work and (II) to evaluate the effect of anyidentified misstatements in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compiledwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our Auditors' Report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

As required by ‘the Companies (Auditor's Report) Order 2016 (the order) issued bythe Central Government of India in terms of sub-section (11) of section 143 of theCompanies Act 2013 we give in the Annexure "A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

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 accounts 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 Statementdealt with by this Report are in agreement with the books of account.

d) The financial Statements have not been prepared in accordance with the IndianAccounting Standards (Ind AS) specified under section 133 of the Act read with Rule7 ofthe Companies (Accounts) rules 2014 hence in our opinion the aforesaid StandaloneFinancial Statements do not comply with the Accounting Standards specified under section133 of the Act read with rule 7 of the Companies (Accounts) Rules 2014.

e) On the basis of the written representations received from the directors as on 31stMarch 2019 taken on record by the board of directors none of the directors isdisqualified as on 31st March 2019 from being appointed as a director in terms of section164(2) of the Act.

f) With respect to the adequacy of the internal financial controls over financialreporting of the company and operating effectiveness of such controls refer to ourseparate report in "Annexure A". g) With respect to the other matters to beincluded in the Auditor's report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules2014 in our Opinion and to the best of our information and according tothe explanations given to us:

1) The Company does not have any pending litigations which would impact its financialposition except mentioned in para VII (a) of Annexure A.

2) The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses.

3) There were no amounts which were required to be transferred to the investoreducation and protection fund by the company.

For Dinesh Bangar & Co.
(CHARTERED ACCOUNTANTS)
Firm Reg. No : 102588W
CA. Hitesh Laddha
(Partner)
Membership No. 168647
Place : Mumbai
Date: 30-05-2018

Annexure A to the Independent Auditor's Report (Referred to in paragraph (1) of ourreport of even date)

I a) The Company has maintained the fixed assets records including quantitativedetails and situation of fixed assets and is in the process of updating the same.

b) As explained to us the fixed assets have been physically verified by themanagement at reasonable interval in a phased manner during the year and no materialdiscrepancy has been noticed on such verification and has been properly dealt with in theBooks of Accounts.

c) As per the information and explanations given to us the Title Deeds ofImmovable Properties are held in the name of company.

II The Stock of finished goods stores spare parts and raw material have beenphysically verified by the management at reasonable intervals during the year and as perthe information and explanation given to us and according to the records produced to usno material discrepancies noticed on such physical verification as compared to bookrecords.

III The Company has not update register under section 189 of companies Act 2013hence we cannot rely on the same. The company has given interest free loan to variousgroup companies. As the loans are interest free and there is no stipulation of repaymentdate we consider that prima facie the term and conditions of such loan are prejudicial tothe interest of the company.

IV According to the information and explanations given to us the company has givenloans to parties covered under section 185 and section 186 of the companies Act 2013 inrespect of which no interest has been charged by the company.

V The Company has not accepted any deposits from public.

VI We have been informed by the management no cost records have been prescribedunder section 148(1) of the Companies Act 2013 in respect of products manufactured by thecompany.

VII a) As per the information and explanation given by the management andaccording to the records of the company with regard to undisputed statutory dues includingProvident Fund Employees State Insurance Income Tax Sales Tax Wealth Tax Service TaxCustom Duty and Other Statutory dues applicable to it except as mentioned herein belowthe company is generally regular in depositing with appropriate authorities. There are noundisputed amount payable in respect of such statutory dues which have remainedoutstanding as at 31st March 2019 for a period more than six months.

Nature of Status Nature of Dues Financial Years Amount (RS)
Income Tax Act1961 ITAT 2008-09 154500/-
Income Tax Act1961 ITAT 2010-11 1770430/-
Income Tax Act1961 ITAT 2012-13 51500/-

b) According to the information and explanations given to us and based on the recordsof the company examined by us there are no dues of Income Tax Wealth Tax Service TaxSales Tax Customs Duty and Excise Duty which have not been deposited on account of anydisputes.

VIII According to the records of the Company the company has not borrowed fromfinancial institutions or banks or Government or has not issued any debentures till 31stMarch 2018. Accordingly provisions of Clause 3(viii) of the Order are not applicable tothe company.

IX The Company has not raised any money by way of Initial Public Offer or FurtherPublic Offer (including debt instruments) and term loans during the year.

X To the best of our knowledge and beliefs and according to the information andexplanation given to us no fraud by the company or any fraud on the company by itsofficers or employees has been noticed or reported during the year under review.

XI To the best of our knowledge and beliefs and according to the information andexplanations given to us the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith schedule V to the Companies Act 2013.

XII The Company is not a Nidhi Company as per the provisions of section 406 of theCompanies Act 2013.

XIII As per the information and explanation given to us all the transactions withthe related parties are in compliance with section 177 and 188 of the Companies Act 2013and the details have been disclosed in the note no. 28 on financial statements as requiredby the applicable accounting standards.

XIV The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.

XV As per the information and explanation given to us the company has not enteredinto any non cash transactions with directors or person connected with him.

XVI As per the information and explanations given to us the company is notrequired to be registered under section 45-1A of the Reserve Bank of India Act 1934.

For Dinesh Bangar & Co.
(CHARTERED ACCOUNTANTS)
Firm Reg. No : 102588W
CA. Hitesh Laddha
(Partner)
Membership No. 168647
Place : Mumbai
Date: 30-05-2018

Annexure - B to the Independent Auditor's Report

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 ASIANPETROPRODUCTS & EXPORTS Limited ("the Company") as of 31 March 2019 inconjunction with our audit of the standalone financial statements of the Company for theyear 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'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required 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 statement of the standalone Ind AS financial statementswhether due to fraud or error. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the Company'sinternal 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 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 (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of standalone Ind ASfinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have a material effect on the standaloneInd 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 31 March 2019 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 Dinesh Bangar & Co.
(CHARTERED ACCOUNTANTS)
Firm Reg. No : 102588W
CA. Hitesh Laddha
(Partner)
Membership No. 168647
Place : Mumbai
Date: 30-05-2018