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-8.55 (-2.2%)
-9.15 (-2.35%) | Auditor's Report (Bharat Petroleum Corporation) | Year End : Mar '12 |
1. We have audited the attached Balance Sheet of BHARAT PETROLEUM CORPORATION LIMITED as at 31st March 2012 and the Statement of Profit and Loss and the Cash Flow Statement of the Company for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company''s management. Our responsibility is to express an opinion on these financial statements based on our audit. 2. We conducted our audit in accordance with the Auditing Standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. As required by the Companies (Auditor''s Report) Order, 2003 issued by the Central Government of India and further as per requirement of Companies (Auditor''s Report) (Amendment) Order, 2004 in terms of sub-section (4A) of the section 227 of the Companies Act, 1956 we enclose in the Annexure a statement on the matters specified in paragraph 4 and 5 of the said Order. 4. Further to our comments in the Annexure referred to in paragraph (3) above, we report that: a) We have obtained all the information and explanations, which to the best of 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 the Company so far as it appears from our examination of the books. c) The Balance Sheet and the Statement of Profit and Loss and the Cash Flow Statement dealt with by this report are in agreement with the books of account. d) In our opinion, the Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 to the extent applicable to the company. e) Disclosure in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956 is not required as per Notification No. GSR 829(E) dated October 21, 2003 issued by the Department of Company Affairs. f) Without qualifying our opinion, we invite attention to Note 21 of Financial Statements regarding recoverability from a Public Sector Undertaking (PSU) making significant losses, based on the assurances given by the PSU. g) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read with the notes thereon give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2012; ii) in the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and iii) in the case of Cash Flow Statement, of the cash flows for the year ended on that date. (Referred to in Paragraph (3) of our report of even date on the accounts of BHARAT PETROLEUM CORPORATION LIMITED for the year ended 31st March 2012) 1. Fixed Assets a) The Company has maintained proper records showing full particulars including the quantitative details and situation of fixed assets except in respect of items like pipes, valves, meters, instruments and other similar items peculiar to a continuous process plant. b) As per the information and explanation given to us, the company has generally physically verified its fixed assets during the previous year, other than LPG cylinders with customers, in accordance with the verification programme and the frequency of verification is reasonable having regard to the size of the company and the nature of its assets. The company has identified certain discrepancies on such verifications which are under reconciliation and consequent adjustment, which in view of management would not be material. c) In our opinion, the disposals of fixed assets during the year are not of a significant value and do not affect the going concern assumption. 2. Inventories a) The management during the year under audit carried out the physical verification of inventories (except those lying with third parties and in transit) at regular intervals. In respect of inventories lying with third parties, these have generally been confirmed by them and the inventory in transit has been verified with subsequent receipts. b) Taking into consideration the nature of business, we are of the opinion that the procedure of physical verification and frequency of such verification is reasonable and adequate in relation to the size of the company and the nature of its business. c) The Company is maintaining proper stock of inventory. The discrepancies noticed on verification between the physical stocks and records were not material in relation to the operation of the company and the same have been properly dealt with in the books of account. 3. Secured or Unsecured Loans Granted or Taken Based on the audit procedures applied by us and according to the information and explanations given to us, the company has not granted or taken any loans, secured or unsecured to / from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Therefore, the provisions of sub-clause (b) to (d), (f) and (g) of sub-para (iii) of para 4 of the Order are not applicable. 4. Internal Control In our opinion and according to the information and explanations given to us, having regard to the explanation that some of the items purchased are of a special nature and suitable alternative sources do not exist, there is generally an adequate internal control procedure commensurate with the size of the Company and the nature of its business, for the purchase of inventories and fixed assets and for the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in the internal control system. 5. Transactions under Section 301 a) According to the information and explanation given to us and as verified by us, there were no transactions exceeding the value of Rs. five lakhs in case of any party that need to be entered in the Register maintained in pursuance of section 301 of the Companies Act, 1956. b) As there are no transactions exceeding the value of Rs. five lakhs in case of any party that need to be entered in the Register maintained pursuant to section 301 of the Companies Act, 1956, sub-clause (b) of sub-para (v) of Para 4 of the Order regarding reasonability of price at which such transactions have been entered is not applicable. 6. Public Deposits According to the information and explanation given to us, the Company has not accepted any deposits from the public. 7. Internal Audit System The Company has an internal audit system which is carried out by the inhouse department and also by outsourced firms for certain areas. In our view, the same is generally commensurate with the size and the nature of its business. 8. Cost Records We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 209(1)(d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed records have been kept and maintained. We have not made a detailed examination of these records. 9. Statutory Dues The company has been generally regular in depositing its undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance Fund, Income Tax, Sales Tax, Value Added Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and any other statutory dues as applicable with the appropriate authorities during the year. According to the information and explanation given to us, no material undisputed amounts payable in respect of Provident Fund, Investor Education and Protection Fund, Employees State Insurance Fund, Income Tax, Sales Tax, Value Added Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and any other statutory dues were in arrears as at 31.3.2012 for a period of more than six months from the date they became payable. The details of disputed dues of sales tax, income tax, customs duty, wealth tax, service tax, excise duty, cess, etc. which have not been deposited, are given in Annexure I. 10. The company does not have any accumulated losses at the end of the financial year and it has not incurred any cash losses during the financial year covered by our audit and in the immediately preceding financial year. 11. According to the information and explanations given to us and based on the documents and records produced before us, the Company has not defaulted in repayment of dues to Financial Institutions / Banks. 12. According to the information and explanations given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. 13. In our opinion and according to the information and explanations given to us, the nature of activities of the Company does not attract any special statute applicable to chit fund and nidhi/ mutual benefit fund/ societies. Therefore, the provisions of clause 13 of Para 4 of the Companies (Auditor''s Report) Order are not applicable to the Company. 14. According to the information and explanations given to us and as verified by us, the Company is not dealing or trading in shares, securities, debentures and other investments. The shares, securities, debentures and other investments are held by the Company in its own name except to the extent of the exemption granted under section 49 of the Companies Act, 1956. 15. The Company has given guarantees for loans taken by others from banks or financial institutions, aggregating to Rs. 1818.30 Crores where the terms and conditions, in our opinion, are not prima facie prejudicial to the interest of the Company. 16. In our opinion, the term loans obtained during the year, prima facie, have been applied for the purpose for which the loans were raised. 17. According to the information and explanation given to us and on an overall examination of the Balance Sheet and Cash Flow Statement of the Company, we report that funds raised on short-term basis have not been used for long-term investment. 18. According to the information and explanations given to us and verified by us, the Company has not made any preferential allotment of shares during the year to parties and companies covered in the Register maintained under section 301 of Companies Act, 1956. 19. According to the information and explanations given to us, the Company has not issued any debentures during the year. 20. The company has not raised any money by public issues during the year. 21. As represented to us by the management and based on our examination in the course of our audit, except for the instances at (a) and (b) below, no material fraud on or by the Company has been noticed or reported during the year. a) The company has identified a fraud at Budge Budge where there was a shortage in the products lying with a repacker. The cost price of the products is Rs. 69.93 lacs and the sale value of the same is Rs. 124 lacs. The amount is still pending recovery. b) The company has identified another fraud made by an advocate relating to misappropriation of compensation amount deposited for land acquisition at Bijwasan Installation and other court cases, amounting to Rs. 188.40 lacs, which has since been recovered. For and on behalf of For and on behalf of T R CHADHA & Co. K. VARGHESE & Co. Chartered Accountants Chartered Accountants FR No: 006711N FR No:004525S Sd/- Sd/- KASHYAP VAIDYA K.VARGHESE Partner Partner Membership No: 37623 Membership No: 20674 Mumbai Dated: 25th May 2012 |
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| Source : Dion Global Solutions Limited | |
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