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GP Petroleums Ltd.

BSE: 532543 Sector: Industrials
NSE: GULFPETRO ISIN Code: INE586G01017
BSE 00:00 | 27 Jan 48.60 0.10
(0.21%)
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47.40

HIGH

49.45

LOW

47.25

NSE 00:00 | 27 Jan 48.60 0.25
(0.52%)
OPEN

47.90

HIGH

49.35

LOW

47.30

OPEN 47.40
PREVIOUS CLOSE 48.50
VOLUME 4890
52-Week high 77.60
52-Week low 34.65
P/E 17.30
Mkt Cap.(Rs cr) 248
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 47.40
CLOSE 48.50
VOLUME 4890
52-Week high 77.60
52-Week low 34.65
P/E 17.30
Mkt Cap.(Rs cr) 248
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 GP Petroleums Limited

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of GP PETROLEUMS LIMITED(the "Company") which comprise the Balance Sheet as at March 31 2021 theStatement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows ended on that date and a summary ofsignificant accounting policies and other explanatory information (hereinafter referred toas the "financial statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial information required by the Companies Act 2013 (the"Act") in the manner so required and give a true and fair view in conformitywith the Indian Accounting Standards prescribed under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended ("Ind AS") andother accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2021 the profit and total comprehensive income changes in equityand its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing ("SA"s) specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India ("ICAI") together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence obtained by us is sufficientand appropriate toprovide a basis for our audit opinion on the financial statements.

Key Audit Matters

There are following key audit matters requiring information to the members of thecompany found during audit.

The management had detected unauthorised sale of its material amounting to Rs. 5.24Crores lying under control of third party. The buyer of such material has not yet paid anymoney against this sale. However the management is of the opinion that it shall recoverwhole of sale consideration except a sum Rs. 45.00 Lakhs. Accordingly the management hasprovided a sum of Rs. 45.00 Lakhs against the amount so recoverable as doubtful debt.

Emphasis of Matter

There is no Emphasis of Matter requiring information to the members of the company Ouropinion is not modified in respect of this matter.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Management Discussion and AnalysisBoard's Report including Annexures to Board's Report Business Responsibility ReportCorporate Governance and Shareholder's Information but does not include the financialstatements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon. In connection with our audit of thefinancial statements our responsibility is to read the other information and in doingso consider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained during the course of our audit or otherwise appearsto be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Management's Responsibilities for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance including othercomprehensive income changes in equity and cash flows of the Company in accordance withthe Ind AS and other accounting principles generally accepted in India. 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. 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.

The Board of Directors are responsible for overseeing the Company's financial reportingprocess.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as-a whole is 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 based onthese financial statements.

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

Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal financial control relevant to the audit to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

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

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 Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe 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 auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in

(i) planning the scope of our audit work and in evaluating the results of our work; and

(ii) to evaluate the effect of any identified misstatements in the financialstatements.

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 compliedwith 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 financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

The consequences of the Covid-19 pandemic on financial statement reporting and auditengagements are complex and have resulted in challenges for management those charged withgovernance (TCWG) and auditors. There is an unprecedented level of uncertainty about theeconomy future earnings and many other inputs that represent fundamental elements offinancial reporting. The uncertainty arising from the current environment increased thechallenge in obtaining the sufficient appropriate audit evidence needed to form anindependent view about the reasonableness of management's estimates and judgments whichpresent practical challenges to the audit engagement.

There are no limitations in audit except measures taken to contain the spread of theCOVID-19 including travel bans quarantines social distancing and closure ofnon-essential services have triggered to perform the audit procedures from the remoteareas.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit 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 the Statement of Profit and Loss including Other ComprehensiveIncome Statement of Changes in Equity and the Statement of Cash Flows dealt with by thisReport agree with the relevant books of account.

d) In our opinion the aforesaid financial statements comply with the Ind AS specifiedunder Section 133 of the Act read with (Indian Accounting Standards) Rules 2015 asamended.

e) On the basis of the written representations received from the directors as on March31 2021 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2021 from being appointed as a director in terms of Section 164(2) of theAct.

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 A". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended: In our opinionand to the best of our information and according to the 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

h) 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements.

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.

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

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

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 (f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the Members of GP Petroleums Limited of evendate)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of GPPETROLEUMS LIMITED (the "Company") as of March 31 2021 in conjunction withour audit of the financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India (the"ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence torespective company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting of the Company based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") issued by the ICAI and the Standardson Auditing prescribed under Section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively 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 evaluating the design and internal financial operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement 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

(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

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 financial of the internal financial reporting tofuture periods are subject to the risk that the internal financial control over financialreporting may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an system over financial reporting andsuch internal financial controls over financial reporting were operating adequate internalfinancial effectively as at March 31 2021 based on the internal financial control overfinancial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the ICAI. The Internal control weaknessobserved in the handling of material lying at third party location consequent upondetection of fraud has been cured by the management by strengthening the process for suchhandling.

ANNEXURE ‘B' TO THE INDEPENDENT AUDITOR'S REPORT

Referred to in paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the Members of GP Petroleums Limited of even date)

1. In respect of the Company's Property Plant and Equipments:

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant and Equipments.

(b) The Company has a regular program of physical verification of its Property Plant& Equipment by which Property Plant & Equipment are verified in a phasedprogramme designed to cover all the items over the period of 3 year. 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 the discrepancies noticed verification has been properly dealt in thepreparation of the Financial such Statements for the subsequent year.

(c) According to the information and explanations given to us the records examined byus and based on the examination of the record we report that the title deeds of all theimmovable properties of land and buildings are held in the name of the Company as at thebalance sheet date except a flat at Mumbai classified as "Asset held for sale'having carrying value ofRs. 411.78 Lakhs as at March 31 2021.

2. In respect of Inventories

The physical verification of inventory excluding for goods-in-transit & stocks withthird parties has been conducted at reasonable by the management during the year. Thediscrepancies noticed on physical verification of inventory as compared to book recordsmaterial and have been appropriately dealt with in the books of accounts.

3. In respect of Loans given by the company

According to the information and explanations given to us and based on our examinationof the records of the Company the Company has not granted loans secured and unsecured tocompanies firms limited liability partnerships or other parties in the registermaintained under section 189 of the Companies Act 2013 ("the Act"). (Registerof contracts and arrangements in which director are interested). Therefore reportingunder paragraph 3(iii) is not applicable.

4. In respect of Loans to Directors and Investments made by the Company

In our opinion and according to the information and explanations given to us and basedon our examination of the records of the Company the company has not granted any loan orprovided any guarantees or security to any party covered under section 185 of the act. TheCompany has complied with the provisions of Sections 185 and 186 of the Act in respect ofgrant of loans making investments and providing guarantees and securities as applicable.

5. In respect of Deposits

In our opinion and according to the information and explanations given to us and basedon our examination of the records of the Company the Company has not accepted anydeposits from the public to which the directives issued by the Reserve Bank of India andthe provisions of Section 73 to Section 76 or any other relevant provisions of the Act andthe rules framed thereunder apply. Thus paragraph 3(v) of the Order is not applicable tothe Company.

6. In respect of maintenance of Cost Records

Pursuant to the rules made by the Central Government of India the Company is requiredto maintain cost records as specified under subsection (1) of the section 148 of the actin respect to its products. The Company has also appointed Cost Auditor to audit its costrecords in pursuance of the provisions contained in Companies Act 2013. The Cost Auditorhas audited cost records for the financial year ended on 31st March2021.

7. In Respect of Statutory Due

According to the information and explanations given to us in respect of statutorydues: a) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company The Company has generally been regular indepositing undisputed statutory dues including Provident Fund Employees' StateInsurance Income Tax Goods and Service Tax Customs Duty Cess and other materialstatutory dues applicable to it with the appropriate authorities.

b) According to the information and explanations given to us and the records of theCompany examined by us the particulars of dues amounting to Rs. 371.84/- Lakhs inrespect of service tax Central Sales Tax including Value added tax and other materialstatutory dues were in arrears which have not been deposited on account of dispute are asfollows:

Name of the statute Nature of dues Forum where Dispute is Pending Period to which the Amount Relates Disputed Amount (in Lakhs )
Finance Act 1994 Service Tax CESTAT May 2016 to March 2017 6.65
Central Sales tax Act and Local Sales Tax Central Sales Tax and Local Tax Value added Tax including Entry Tax Apellate Authority Upto Commissioner's Level F.Y. 2003-2004 to 2015-2016 365.19

8. In respect of Repayment of Loan

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 as at the balance sheet date.

The company has not issued any debentures. Hence reporting under clause 3 (viii) of theOrder is not applicable to the Company for debenture.

9. In respect of utilization of IPO further Public offer & Term Loans

The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) or term loans and hence reporting under clause 3 (ix)of the Order is not applicable to the Company.

10. In respect of Reporting of Fraud

The Company came across an instance of unauthorised sale of inventory lying at thethird-party location by associate employee of the Company. The company has estimated aloss of Rs. 45.00 Lakhs on this account and has made provisions for this loss in Books ofAccounts. Necessary legal actions are being taken in this respect by the Company.

11. In respect of approval of Managerial Remuneration

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

12. In respect of reporting in a Nidhi Company

The Company is not a Nidhi Company and hence reporting under clause 3 (xii) of theOrder is not applicable to the Company.

13. In respect of Related Party Transactions

According to the information and explanations given to us and based on our examinationof the records of the Company transactions with the related parties have been enteredinto by the company in its ordinary course of business on an arm's length basis and are incompliance with provisions of section 177 and 188 of the Act where applicable and detailsof such transactions have been disclosed in the financial statements as required underIndian Accounting Standard (Ind AS) 24 related party disclosures specified under section133 of the Act read with rule 7 of the Companies ( Accounts) Rules 2014.

14. In respect of reporting of Private placement / preferential allotment of shares /debentures

According to the records of Company the Company has not made preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review and complied with provisions of clause (xiv) of paragraph 3 of the Order notapplicable.

15. In respect of reporting of Non-Cash Transactions

In our opinion and according to the information and explanations given to us and basedon our examination of the records of the Company during the year the Company has notentered into any non-cash transactions with its Directors or persons connected to itsdirectors and hence provisions of section 192 of the Companies Act 2013. Accordinglyreporting under paragraph 3(xv) of the Order is not applicable.

16. In respect of reporting of Registration u/s 45-IA of RBI Act 1934

The Company is not required to be registered under section 45-IA of the Reserve Bank ofIndia Act 1934. Therefore provisions of clause (xvi) of paragraph 3 of the Order are notapplicable.

For PNG & Co.
Chartered Accountants
Firm Registration No.021910N
Sd/-
Prabhat Kumar
Partner
Place: New Delhi Membership No. 087257
Date: August 12 2021 UDIN: 21087257AAAALR4624

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