Hindustan Petroleum Corporation
BSE: 500104 | NSE: HINDPETRO | ISIN: INE094A01015 | Refineries
- Directors Report
- Chairman's Speech
- Auditors Report
- Notes To Accounts
- Accounting Policy
- Finished Products
- Raw Materials
| Auditor's Report | Year End : Mar '09 |
1. We have audited the attached Balance Sheet of Hindustan Petroleum
Corporation Limited as at March 31, 2009, and also the Profit and Loss
Account 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 Companys management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance widi the auditing standards
generally accepted in India. These Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. 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 (Auditors Report) Order, 2003 as
amended by Companies (Auditors Report) (Amendment) Order, 2004
(together the Order), issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we
give 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 the
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
these books, and proper returns, adequate for the purposes of our
audit, have been received from the branches not visited by us;
(c) The Branch Auditors report, made available to us, has been
appropriately dealt with while preparing our report;
(d) The Balance Sheet, Profit and Loss account and Cash Flow Statement
dealt with by this report are in agreement with the books of account
and with the audited returns from the branches;
(e) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report comply with the Accounting Standards referred
to in sub-section (3C) of Section 211 of the Companies Act, 1956;
(f) On the basis of the written representations received from directors
of the Company, as at March 31, 2009 and taken on record by the Board
of Directors, we report that none of the directors is disqualified as
at March 31, 2009, from being appointed as a director in terms of
clause (g) of sub-section (1) of Section 274 of the Companies Act,
1956; and
(g) In our opinion, and to the best of our information and according to
the explanations given to us, the said accounts read together with
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 March 31, 2009; (ii) in the case of the Profit and Loss
Account, of the profit for the year ended on that date; and (iii) in
the case of the Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure to the Auditors Report
(Referred to in Paragraph 3 of our Report of even date)
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets except for items likes pipes, valves, meters, instruments and
other similar items peculiar to a continuous process industry.
(b) As explained to us, the Company, having regard to the size and
nature of its business, has adopted a practice of carrying out physical
verification of its fixed assets, except LPG cylinders and fixed assets
of the erstwhile Kosan Gas Company undertaking, not handed over, on a
staggered basis, over a period of five years in the case of furniture,
fixtures and office equipment and over a period of three years in the
case of Plant and Machinery and other assets. We were informed that
discrepancies noticed on such verification were not material as
compared to the book records and have been properly dealt with in the
books of account. The existence of fixed assets situated at the
residence of employees has, however, been ascertained on a
self-declaration basis.
(c) Fixed Assets disposed off during the year were not substantial and,
therefore, do not affect the going concern assumption.
2. (a) As explained to us, the inventories were physically verified
during the year by the Management at reasonable intervals. In the case
of materials lying with third parties, certificates confirming stocks
held have been received from them.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of inventory. We
were informed that discrepancies noticed on physical verification, as
compared to the book records, were not material and have been properly
dealt with in the books of account.
3. Based on the audit procedures applied by us and according to the
information and explanations given to us, the Company has neither
granted nor taken loans, secured or unsecured to or from companies,
firms or other parties covered in the register maintained under Section
301 of the Companies Act, 1956. Consequently, sub clauses (b), (c),
(d), (e), (0 and (g) of sub-para (iii) of para 4 of the Order are not
applicable.
4. In our opinion and according to the information and explanations
given to us, and having regard to the explanations that some of the
items are of a specialized nature, in respect of which suitable
alternative sources do not exist for obtaining comparative quotations,
there are adequate internal control procedures commensurate with the
size of the Company and nature of its business for the purchase of
inventory and fixed assets and for the sale of goods and services.
5. In our opinion and according to the information and explanations
given to us, there are no contracts and arrangements referred to in
Section 301 of the Companies Act, 1956 entered into during the year
that need to be entered in the register maintained under that Section.
Accordingly, sub clause (b) of sub-para (v) of para 4 of the Order is
not applicable to the Company for the current year.
6. In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of Section 58A and Section
58AA or any other relevant provisions of the Companies Act, 1956, and
the rules framed thereunder with regard to deposits accepted from the
public. We have been informed that no order has been passed by the
Company Law Board or National Company Law Tribunal or Reserve Bank of
India.
7. In our opinion the Company has an internal audit system
commensurate with its size and the nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government, the maintenance of cost records has been prescribed
under Section 209 (1) (d) of the Companies Act, 1956. We are of the
opinion that prima facie the prescribed accounts and records have been
maintained and are being made. We have not, however, made a detailed
examination of the records with a view to determine whether they are
accurate or complete.
Annexure to the Auditors Report
9. (a) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has,
during the year, been generally regular in depositing with the
appropriate authorities, undisputed statutory dues, including Provident
Fund, Investor Education and Protection Fund, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and any other
material statutory dues.
(b) According to the information and explanations given to us and on
the basis of our examination of the books of account, no undisputed
amounts payable in respect of Income Tax, Sales Tax, Wealth Tax,
Service Tax, Custom Duty, Excise Duty, Cess were in arrears, as at
March 31, 2009, for a period of more than six months from the date they
became payable.
(c) According to the information and explanations given to us, dues
relating to Income Tax, Sales Tax, Custom Duty, Service Tax, Excise
Duty which have not been deposited on account of disputes with the
related authorities, have been reflected in the table below:
STATUTE FORUM WHERE
DISPUTE IS PENDING
Income Tax Act, 1961 Appellate Tribunal
Central Excise Act, 1944 Commissioner (A)
Assistant Commissioner
CESTAT
Revisionary Authority
Various Central & Board of Revenue
State Sales Tax Acts Rajasthan Kar Board
CESTAT
High Court
Supreme Court
Commissioner / DCCT /
ADC/JCCT/ACCT
Custom Act, 1962 CESTAT
Commissioner (A)
Service Tax CESTAT
Commissioner (A)
Grand Total
AMOUNT IN PERIOD TO WHICH
Rs. / Crores THE AMOUNT RELATES
0.20 2006-07.
0.20
13.31 1998-99, 1999-00, 2000-01, 2001-02, 2002-03,
2003-04, 2004-05, 2005-07, 2006-08.
47.81 1994 -96, 1997-98, 1994-01, 1999-00, 2001-02,
2000-02, 2002-03, 2003-04, 2004-05.
367.58 1992-97, 1994-99, 1999-00, 2000-01,
2001- 05, 2005-06, 2006-07.
1.66 1994-96, 1999-02, 1994-95, 1997-98, 1999-02,
2001-02, 2002-03, 2003-04, 2004-05, 2004-06.
430.36
0.19 1985-86, 1986-87.
1.41 1999-00.
597.45 1987-88, 1988-99, 1994-97, 1997-00, 2000-03,
2003-04, 2004-05, 2005-06.
605.77 1984-85, 1987-88, 1994-98, 1990-91, 1993-94,
1994-95, 1990-91, 1998-99, 2001-02, 2002-03,
2003-04, 2004-05, 2005-06, 2006-07.
1.23 2005-2006 to 2007-2008.
4055.02 1976-77, 1977-78, 1978-79, 1985-86, 1986-87,
1987-88, 1991-93, 1993-94 ,1994-95, 1995-96
1996-97,1997-98,1999, 1999-00, 2000-01,
2001-02, 2002-03, 2003-04, 2004-05, 2005-06.
5261.07
27.65 1993-97, 1995-98, 1998-99, 2002-03, 2002-04.
3.97 1998-02, 2004-05.
31.62
16.49 2002-03, 2003-06, 2005-06, 2005-07,
1.61 2002-06, 2004-05, 2005-06, 2006-07, 2004-06.
18.09
5741.34
10. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the financial year immediately preceding such financial year.
11. According to the information and explanations given to us, and
based on checks carried out by us, the Company has not defaulted in
repayment of dues to financial institutions or banks. The question of
default in repayment of dues to debenture holders does not arise since
no debentures were outstanding during the financial year.
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 information and explanations given
to us, the Company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore, the provisions of sub-para (xiii) of para 4 of
the Order are not applicable to the Company.
14. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Therefore, the provisions of sub-para (xiv) of para
4 of the Order are not applicable to the Company.
15. In our opinion and according to information and explanations given
to us, the Company has not given guarantees for loans taken by others
from banks and financial institutions.
16. In our opinion and according to information and explanations given
to us, the term loans taken during the year, prima facie, have been
applied for the purpose for which they were raised.
17. According to the information and explanation given to us, and
based on our overall examination of Balance Sheet and considering
investment in Oil Bonds issued by the Government of India towards
under-recoveries on sale of sensitive petroleum products as short term
application of funds, funds raised on short- term basis have, prima
facie, not been used for making long-term investments.
18. According to the information and explanations given to us, during
the year the Company has not made any preferential allotment of shares
to parties and companies covered in the Register maintained under
Section 301 of the Companies Act, 1956.
19. The Company has not raised any monies byway of issue of
debentures. Therefore, the provisions of sub-para (xix) of para 4 of
the Order are not applicable to the Company.
20. The Company has not raised any money by way of public issue during
the financial year.
21. According to information and explanations given to us and based on
audit procedures performed and representations obtained from the
management, we report that no material fraud on or by the Company, has
been noticed or reported during the year under audit.
For Sudit K. Parekh & Co. For V. Sankar Aiyar & Co.
Chartered Accountants Chartered Accountants
Raman Jokhakar G. Sankar
Partner Partner
Membership No. 103241 Membership No. 46050
Place : New Delhi
Date : June 02, 2009 |
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| Source : Religare Technova | |
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