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Tamil Nadu Petro Products Ltd.

BSE: 500777 Sector: Consumer
NSE: TNPETRO ISIN Code: INE148A01019
BSE 00:00 | 17 Feb 35.65 -0.35
(-0.97%)
OPEN

36.25

HIGH

36.40

LOW

35.45

NSE 00:00 | 17 Feb 35.45 -0.45
(-1.25%)
OPEN

36.70

HIGH

36.70

LOW

35.15

OPEN 36.25
PREVIOUS CLOSE 36.00
VOLUME 5580
52-Week high 48.00
52-Week low 28.90
P/E 4.97
Mkt Cap.(Rs cr) 321
Buy Price 35.40
Buy Qty 10.00
Sell Price 35.65
Sell Qty 450.00
OPEN 36.25
CLOSE 36.00
VOLUME 5580
52-Week high 48.00
52-Week low 28.90
P/E 4.97
Mkt Cap.(Rs cr) 321
Buy Price 35.40
Buy Qty 10.00
Sell Price 35.65
Sell Qty 450.00

Tamil Nadu Petro Products Ltd. (TNPETRO) - Auditors Report

Company auditors report

To the members of tamilnadu petroproducts limited report on the auditof standalone financial statements opinion

We have audited the accompanying standalone ind as financial statementsof tamilnadu petroproducts limited ("the company") which comprise thebalance sheet as at 31st March 2019 the statement of profit and loss(including other comprehensive income) the statement of cash flows and the statement ofchanges in equity for the year then ended and notes to the financial statements includinga summary of the significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone ind as financial statements give theinformation required by the companies act 2013 ("the act") in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in india including ind as of the state of affairs of the company asat 31st March 2019 and its profit including other comprehensive incomeits cash flows and changes in equity for the year ended on that date.

Basis for opinion

We conducted our audit in accordance with the standards on auditing(sas) specified under section 143(10) of the act. Our responsibilities under thosestandards are further described in the auditor's responsibilities for the audit ofthe financial 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 act and the rules thereunder and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the code of ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion

Key audit matters

Key audit matters are those matters that in our professionaljudgement were ofmostsignificancein our audit of the financial statements of the currentperiod. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters

Accounting for legal and other contractual claims: Our response
The company's operations expose it to the risk of litigation and Contractual claims from third parties including statutory authorities. The recognition and valuation of exposure to tax & other legal Framework related disputes demands and claims across various Specific matters due to the range of potential expected outcome Requires the exercise of management judgement in assessing The amounts recorded and the disclosures made in the financial Statements. This depends upon the probability of their incurrence Involving management judgement. We assessed and tested The judgements made By the Management. In particular We challenged for example by Assessing against past history or agreeing to supporting evidence And compared against our expectations. Where applicable we Have agreed projected costs against historical cost experience. We have discussed the status of current litigation or regulatory Issues with company's legal counsel and external lawyers Throughout our audit process reviewing correspondence with Third parties and related contractual agreements.
For those exposures where provision is made the use of estimates Within those provisions gives rise to inherent subjectivity in the Amounts recorded in the financial statements.
For those exposures where no provision has been made the Obligation to disclose the nature and estimate of its financial Impact gives rise to further judgement in the disclosure within the Financial statements.

Information other than the standalone financial statements andauditor's report thereon

The company's board of directors is responsible for the otherinformation. The other information comprises the board's report including annexuresto board's report management discussion and analysis report report on corporategovernance which we obtained prior to the date of this auditor's report. Our opinionon the standalone financial statements does not cover the other information and we do notand will not express any form of assurance conclusion thereon. In connection with ouraudit of the financial statements our responsibility is to read the other informationidentified above and in doing so consider whether the other information is materiallyinconsistent with the financial statements or our knowledge obtained in the audit orotherwise appears to be materially misstated.

If based on the work we have performed on the other information thatwe obtained prior to the date of this auditor's report we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.

Responsibilities of the management and those charged with governancefor the standalone financial statements

The company's board of directors is responsible for the mattersstated in section 134(5) of the act with respect to the preparation of these standaloneind as financial statements that give a true and fair view of the financial positionfinancial performance including other comprehensive income cash flows and changes inequity of the company in accordance with the accounting principles generally accepted inindia including the indian accounting Standards (ind as)specified under the act read withrules framed thereunder as applicable.

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 standalone ind as financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

In preparing the financial statements the board of directorsresponsible for assessing the company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless the board of directors either intends to liquidate the companyor to cease operations or has no realistic alternative but to do so. Those board ofdirectors are also responsible for overseeing the company's financial reportingprocess.

Auditor's responsibilities for the audit of the standalone ind asfinancial statements

Our objectives are to obtain reasonable assurance about whether the indas financial statements as a whole are free from material misstatement whether due tofraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with sas will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with sas we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the ind asfinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

Obtain an understanding of internal control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3) (i) of the companies act 2013 we are also responsible for expressing our opinionon whether the company has adequate internal financial controls system in place and theoperating effectiveness of such controls.

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

Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast doubt on thecompany's ability to continue as significant a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditionsmay cause the company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincludinganysignificantdeficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards. From the matterscommunicated with those charged with governance we determine those matters that were ofmost significance in the audit of the financial statements of the current period and aretherefore the key audit matters.

We describe these matters in our auditor's report unless law orregulation precludes public disclosure about the matter or when in extremely rarecircumstances we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits of such communication.

Report on other legal and regulatory requirements

1) as required by the companies (auditor's report) order 2016("the order") issued by the central government of india in terms of section143(11) of the act we give in annexure-a a statement on the matters specified inparagraphs 3 and 4 of the order.

2) with respect to other matters to be included in auditor'sreport in accordance with the requirements of section 197(16) of the act in our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the company to its directors during the year is in accordance withthe provisions of section 197 of the act.

3) as required by section 143 (3) of the act we report that: (a) wehave sought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit. (b) in our opinionproper books of account as required by law have been kept by the company so far as itappears from our examination of those books. (c) the balance sheetstatement profit andloss the cash flow statement and the statement of changes in equity dealt with by thisreport are in agreement with the books of account.

(d) in our opinion the aforesaid standalone ind as financialstatements comply with the accounting standards specified under section 133 of the actread with relevant rules issued there under.

(e) on the basis of the written representations received from thedirectors as on 31st March 2019 taken on record by the board of directors none of thedirectors is disqualified as on 31st March 2019 from being appointed as a director interms of section 164 (2) of the act.

(f) with respect to the adequacy of the internal financial controlsover financial reporting of the company and the operating effectiveness of such controlsrefer to our separate report in annexure b. Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the company's internalfinancial controls with reference to financial statements.

(g) with respect to the other matters to be included in theauditor's report in accordance with rule 11 of the companies (audit and auditors)rules 2014 in our opinion and to the best of our information and according to theexplanations given to us: i. The company has disclosed the impact of pending litigationson its financial position in its standalone ind as financial statements. Refer note no. 33and no. 34a to the standalone ind as financial statements. Ii. The company has certainlong-term contracts for which there are no material foreseeable losses. The company didnot have any derivative contracts. Iii. There has been no delay in transferring amountsrequired to be transferred to the investor education and protection fund by the company.

For r.g.n. Price & co.
Chartered accountants
(firm regn no.002785s)
Mahesh krishnan
Partner
Chennai 21st may 2019 (membership no. 206520)

Annexure a to the independent auditor's report

(referred to in paragraph 1 under ‘report on other legal andregulatory requirements' section of our report of even date to the members of thecompany on the standalone financial statements of the company for the year ended 31 stMarch 2019)

(i) (a) the company has maintained proper records showing fullparticulars including quantitative details and situation of its fixed assets.

(b) the fixed assets were physically verified by the Management duringthe year in accordance with a regular program of verification which in our opinionprovides for physical verification of all the fixed assets at reasonable intervals.According to the information and explanation given to us discrepancies noticed on suchverification were not material and have been properly dealt with in the books of accounts.

(c) according to the information and explanations given to us and onthe basis of our examination we report that the title deeds of land and the buildingsconstructed thereon are held in the name of the company as at the balance sheet date. Alsorefer note.3a to the financial statements.

(ii) physical verification of inventories has been conducted atreasonable intervals by the management. The discrepancies noticed on physical verificationwhich were not material have been properly dealt with in the books of accounts. (iii) thecompany has not granted any loans secured or unsecured to companies firms limitedliability partnerships or other parties covered in the register maintained under section189 of the companies act 2013.

(iv) the company has not granted any loans nor any guarantee orsecurity to the directors or to any company body corporate or to any other person coveredby section 185 of the act. The investment made by the company during the the year is incompliance with section 186 of the act.

(v) the company has not accepted any deposits and the provisions ofsection 73 to section 76 or any other relevant provisions of the companies act 2013 andthe rules framed there under are not applicable to the company.

(vi) We have broadly reviewed the cost records maintained by thecompany pursuant to the companies (cost records and audit) rules 2014 prescribed by thecentral government under section 148 (1) of companies act 2013 and are of the opinionthat prima facie the prescribed cost records have been made and maintained. We havehowever not made a detailed examination of the cost records with a view to determinewhether they are accurate or complete. (vii) (a) on the basis of our examination of booksand records the company has been regular in depositing undisputed statutory duesincluding provident fund employees' state insurance income-tax goods and servicetax duty of customs cess and any other statutory dues to the appropriate authorities.There are no arrears of outstanding undisputed statutory dues as on the last day of thefinancial year for a period of more than six months from the date they became payable.

(b) there are no dues of income tax or sales tax or service tax or gstor duty of customs or duty of excise or value added tax or cess which have not beendeposited on account of any dispute as at 31st March 2019 except for:

(र in lakhs)
Nature of statute Nature of Dues Forum where dispute Is pending Financial year Amount Involved Amount Unpaid
Income tax act Income tax Dcit 1998-99 2002-03 2003-04 & 2005-06 4676.72 135.92
Cit (appeals) 2000-01 2006-07 to 2010-11 2012-13 2013-14& 2015-16 10552.40 7042.20
Dispute resolution 2011-12 824.94 248.99
Panel
Supreme court 2001-02 2645.60 151.16
Various states sales Sales tax High court 2006-07 58.09 58.09
Tax acts Sales tax appellate 1993-94 1629.00 1629.00
Tribunal
Deputy commissioner (commercial taxes) 1995-96 to 2002-03 2005-06 44.17 32.97
Finance act1994 Service tax Cestat chennai 2006-07 to 2008-09 2011-12 To 2014-15 415.86 375.52
Central excise act Excise duty High court 1998-99 13.89 13.89
Principal commissioner Gst & ce 1994-95 to 1996-97 23.47 23.47
Cestat chennai 2005-06 to 2012-13 405.13 375.98
Customs act Customs Duty Deputy commissioner Of customs 1999-00 34.25 34.25

(viii) according to the information and explanation given to us andthe records of the company examined by us the company has not defaulted in repayment ofloans or borrowing from any financial institutions banks or government. The company hasnot issued any debentures.

(ix) the company has not raised any moneys by way of initial publicoffer or further public offer (including debt instruments) or term loans and hencereporting under clause 3 (ix) of the ‘order' is not applicable.

(x) during the course of our examination of the books and records ofthe company carried out in accordance with the generally accepted auditing practices inindia and according to the information and explanation given to us we have neitherobserved any instance of fraud by the company or any fraud on the company by its officersinformed of such case by the management during the year.

(xi) in our opinion and according to the information and explanationsgiven to us managerial remuneration has been paid/ provided in accordance with therequisite approval mandated by the provisions of section 197 read with schedule v to thecompanies act 2013.

(xii) the company is not a nidhi company and hence clause 3(xii) of the‘order' is not applicable.

(xiii) transactions with related parties have been disclosed in thestandalone ind as financial statements with details as prescribed by indian accountingstandard 24 "related party transactions". These transactions are in compliancewith section 177 and section 188 of companies act 2013.

(xiv) the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year.

(xv) according to the information and explanation provided to us andbased on our examination of records the company has not entered into any non-cashtransactions with directors or persons connected with him.

(xvi) the company is not required to be registered under section 45-iaof the reserve bank of india act 1934.

For r.g.n. Price & co.
Chartered accountants
(firm regn no.002785s)
Mahesh krishnan
Partner
Chennai 21st may 2019 (membership no. 206520)

Annexure-b to the independent auditor's report

(referred to in clause (f) of paragraph 2 of report on other legal andregulatory requirements of our report of even date to the members of the company on theinternal financial controls over financial reporting for the year ended 31st March2019.)

We have audited the internal financial reporting of tamilnadupetroproducts limited (‘the company') as of 31st March 2019 in conjunctionwith our audit of the standalone financial statements of ended on that date.

Management's responsibility for internal financial controls

The company's management is responsible for establishing andmaintaining internal financial controls based on the internal control overfinancialreporting 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 institute of chartered accountants ofindia. These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company'spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the companies act 2013.

Auditor's responsibility

Our responsibility is to express an opinion on the company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the guidance note on audit of internal financial controls overfinancial reporting and the standards of auditing to the extent applicable to an audit ofinternal financial controls both issued by the institute of chartered accountants ofindia. Those standards and guidance note require that we comply with ethical requirementsand plan and perform the audit to obtain reasonable assurance about whether adequateinternal financial controls over financial reporting was established and maintained and ifsuch controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness.

Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the company's internal financial controlssystem over financial reporting.

Meaning controls over financial of internal financial controls overfinancial reporting

A company's internal financial control over financial reporting isthe company for the year a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. Acompany's internal financial control over financial reporting includes those policiesand procedures that (1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany; (2) provide reasonable assurance that transactions are recorded as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the company's assets that could have a materialeffect on the financial statements.

Inherent limitations of internal financial controls over financialreporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

According to the information and explanations given to us and based onour audit the company has in all material respects adequate internal financial controlover financial reporting and such internal financial control over financial reporting wereoperating effectively as at 31st March 2019 based on the internal control overfinancial reporting criteria established by the company considering the essentialcomponents of internal control stated in the guidance note of internal financial controlsover financial reporting issued by the institute of chartered accountants of india.

For r.g.n. Price & co.
Chartered accountants
(firm regn no.002785s)
Mahesh krishnan
Partner
Chennai 21st may 2019 (membership no. 206520)