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GP Petroleums Ltd.

BSE: 532543 Sector: Industrials
NSE: GULFPETRO ISIN Code: INE586G01017
BSE 00:00 | 16 Jul 76.45 -3.10
(-3.90%)
OPEN

80.00

HIGH

80.00

LOW

76.00

NSE 00:00 | 16 Jul 76.35 -3.25
(-4.08%)
OPEN

79.40

HIGH

80.20

LOW

75.50

OPEN 80.00
PREVIOUS CLOSE 79.55
VOLUME 4212
52-Week high 101.90
52-Week low 67.80
P/E 23.82
Mkt Cap.(Rs cr) 390
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 80.00
CLOSE 79.55
VOLUME 4212
52-Week high 101.90
52-Week low 67.80
P/E 23.82
Mkt Cap.(Rs cr) 390
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

GP Petroleums Ltd. (GULFPETRO) - Auditors Report

Company auditors report

To

The Members of GP Petroleums Limited

Report on the Financial Statements

1. We have audited the accompanying financial statements of GP Petroleums Limited("the Company") which comprise the Balance Sheet as at 31st March2017 the Statement of Profit and Loss and the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Financial Statements

2. 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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor's Responsibility

3. Our responsibility is to express an opinion on these financial statements based onour audit.

4. We have taken into account the provisions of the Act and the rules made thereunderincluding the accounting standard and matters which are required to be included in theaudit report.

5. We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India. Those Standards and pronouncements requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the 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.

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

8. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2017 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

9. As required by the 'Companies (Auditor's Report) Order 2016' ("theOrder") issued by the Central Government of India in terms of Sub-section (11) ofSection 143 of the Act and on the basis of such checks of the books and records of theCompany as we considered appropriate and according to the information and explanationsgiven to us we give in the Annexure A. a statement on the matters specified in paragraphs3 and 4 of the Order to the extent applicable.

10. 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 purpose 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 Statementdealt with by this Report are in agreement with the books of account;

d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 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 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in termsof 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.

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 knowledge and belief and according to the information andexplanations given to us:

i. The Company has disclosed the impact if any of pending litigations as at March312017 on its financial position in its financial statements.

ii. The Company has made provisions as at March 312017 as required under theapplicable law or accounting standards for material foreseeable losses if any onlong-term contracts including derivative contracts.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the year ended March312017.

iv. The Company has provided requisite disclosures in the financial statements as toholding as well as dealings in Specified Bank Notes during the period from 8thNovember 2016 to 31st December 2016 on the basis of information availablewith the Company. Based on audit procedures and relying on management's representationwe report that disclosures are in accordance with the books of accounts maintained by theCompany and as produced to us by the Management.

For PNG & Co.
CHARTERED ACCOUNTANTS
Firm Registration No. 021910N
Prabhat Kumar
Place : Mumbai Partner
Date : 25h May 2017 Membership No. 087257

ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 9 of the Independent Auditors' Report of even date to themembers of GP Petroleums Limited on the financial statements for the year ended 31stMarch 2017.

I. (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The fixed assets are physically verified by the Management according to a phasedprogramme designed to cover all the items over a period of 3 years which in our opinionis reasonable having regards to the size of the Company and the nature of its assets.Pursuant to the programme a portion of the fixed assets has been physically verified bythe Management during the year and no material discrepancies have been noticed on suchverification.

(c) The title deeds of immovable properties as disclosed in Note 11 on fixed assets tothe financial statements are held in the name of the Company except for land at Mundkaand a flat at Mumbaiboth having a carrying value of Rs. 552.20 Lacs as at 31stMarch 2017.

II. The physical verification of inventory excluding stocks with third parties has beenconducted at reasonable intervals by the management during the year. In respect ofinventory lying with third parties these have substantially been confirmed by them. Thediscrepancies noticed on physical verification of inventory as compared to book recordswere not material and have been appropriately dealt with in the books of accounts.

III. The Company has not granted unsecured loans to the Company covered in the registermaintained under Section 189 of the Companies Act. There are no firms / LLP/ other partiescovered in the register maintained under Section 189 of the Companies Act.(Register ofcontracts and arrangements in which director are interested).

IV. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Companies Act 2013in respect of loans and investment made and guarantees and security provided by it.

V. The Company has not accepted any deposits from the public within the meaning ofSections 73 & 74 75 & 76 of the act and the rules framed thereunder to the extentnotified.

VI. Pursuant to the rules made by the Central Government of India the Company isrequired to maintain cost records as specified under subsection (1) of the section 148 ofthe act in respect to its products. The Company has also appointed Cost Auditor to auditits cost records in pursuance of the provisions contained in Companies Act 2013 The CostAuditor has audited cost records for the financial year ended on 31st March2016 and we have not noticed any adverse comment in their report issued in pursuance tosuch report.We have broadly reviewed the same and are of the opinion that prima faciethe prescribed accounts and records have been made and maintained. We have not howevermade a detailed examination of the records with a view to determine whether they areaccurate or complete.

VII. (a) According to information and explanations given to us and the records of theCompany examined by us in our opinion the Company is generally regular in depositing theundisputed statutory dues in respect of sales tax including value added tax and isregular in depositing undisputed statutory dues including provident fund employees' stateinsurance income tax service tax duty of customs duty of excise cess and othermaterial statutory dues as applicable with the appropriate authorities.

(b) According to information and explanation given to us and the records of the Companyexamined by us the particulars of dues (net of deposit under protest or under staycondition amounting Rs. 41296459/- and stated under Non Current Assets as recoverable)in respect of income tax sales tax including value added tax service tax duty ofcustoms duty of excise cess as at March 31st 2017 which have not beendeposited on account of a dispute are as follows:

Name of the statute Nature of dues Amount (Rs.) Period to which the amount relates Forum where the dispute is pending
Central Sales Tax 1956 & Local Sales Tax Act Central sales tax & local sales tax 32635074 2003-04 2004-05 2009-10 2010-11 2011-12 2012-13 2014-15 & 2015-16 First Appellate Authorities
Customs Act 1965 Custom Duty 68553884 2012-13 Asst. Registrar CESTAT
Central Excise Act 1944 Excise Duty 17898416 2013-14 Asst. Registrar CESTAT
Central Excise Act 1944 Excise Duty 9908719 Up to 2005 Commissioner of Central Excise Thane - II
Central Excise Act 1944 Excise Duty 1604039 Jan'14 to Sept15 Jt. Commissioner of CEX
Central Excise Act 1944 Excise Duty 5984848 Apr'14 to June'15 Commissioner Appeal - Mumbai

VIII. According to the records of the Company examined by us and the information andexplanation given to us the Company has not defaulted in repayment of loans or borrowingsto any financial institution or bank or Government or dues to debenture holder as at thebalance sheet date.

IX. In our opinion and according to the information and explanations given to us theterms loans have been applied on an overall basis for the purposes for which they wereobtained.

X. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by theManagement.

XI. In our opinion and according to the information and explanations given to us theCompany has not paid/provided for any managerial remuneration except board meetingsitting fees paid to Independent Director(s) during the year as stipulated to section 197read with Schedule V to the Act hence clause (xi) of paragraph 3 of the Order is notapplicable.

XII. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company hence clause (xii) of paragraph 3 of the Order regardingdefault is not applicable.

XIII. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties have beenentered into by the Company in its ordinary course of business on an arm's length basisand therefore the provisions of section 177 and 188 of the Act are not applicable to theCompany however the details of such transactions have been disclosed in the financialstatements as required under Accounting Standard (AS) 18 related party disclosuresspecified under Section 133 of the Act read with Rule 7 of the Companies ( Accounts)Rules 2014.

XIV According to the records of Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year under review. Therefore provisions of clause (xiv) of paragraph 3 of the Orderare not applicable.

XV 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 non-cashtransactions with its directors or persons connected with him. Therefore provisions ofclause (xv) of paragraph 3 of the Order are not applicable.

XVI. In our opinion and according to the information and explanations given to us theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934. Therefore provisions of clause (xvi) of paragraph 3 of the Order are notapplicable.

For PNG & Co.
CHARTERED ACCOUNTANTS
Firm Registration No. 021910N
Prabhat Kumar
Place : Mumbai Partner
Date : 25h May 2017 Membership No. 087257

ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 10(f) of the Independent Auditors' Report of even date to themembers of GP Petroleums Limited on the financial statements for the year ended 31stMarch 2017.

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

1. We have audited the internal financial controls over financial reporting of GPPetroleums Limited ("the Company") as of 31st March 2017 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

Management's Responsibility for Internal Financial Controls

2. 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

3. 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.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the 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 financial statements whether due to fraud or error.

5. 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

6. A Company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally 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 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

(3) 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 Financial Controls Over Financial Reporting

7. 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

8. 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 31stMarch 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 PNG & Co.
CHARTERED ACCOUNTANTS
Firm Registration No. 021910N
Prabhat Kumar
Place : Mumbai Partner
Date : 25h May 2017 Membership No. 087257