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Chennai Petroleum Corporation Ltd.

BSE: 500110 | NSE: CHENNPETRO |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE178A01016 | SECTOR: Refineries

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30-Day
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  • Prev. Close

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  • Open Price

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  • Bid Price (Qty.)

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Annual Report

For Year :
2018 2017 2016 2015 2014 2013 2012 2011 2010

Auditor's Report

To

The Members of

Chennai Petroleum Corporation Limited Chennai

REPORT ON THE FINANCIAL STATEMENTS:

We have audited the accompanying financial statements of Chennai Petroleum Corporation Limited (“the company”), which comprise the Balance Sheet as at 31st March 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information, which we have signed under reference to this report.

MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS:

The Company''s Board of Directors is responsible for the matters in section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

AUDITOR''S RESPONSIBILITY:

Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Company''s Directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

OPINION:

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements, give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India;

a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2016;

b) in the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and

c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS:

1. As required under 143 (5) of The Companies Act, 2013, we give in the Annexure I of our reporton the directions issued by the Comptroller and Auditor General Of India.

2. As required by the Companies (Auditor''s Report) Order, 2016 (“The Order”) issued by the CentralGovernment of India in terms of Section 143(11) of the Act, we give in the Annexure A statementon the matters specified in paragraphs 3 and 4 of the Order.

3. 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 best of 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 the Company so far as appears from our examination of those books.

c) The Balance Sheet, 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 aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

e) Clauses referred to Section 164 (2) of the Companies Act 2013 does not apply to directors of Government Companies as per the notification.

f) With respect to the adequacy of internal financial controls over financial reporting of the Company and the operating effectiveness of such controls refer to our separate report in Annexure B”.

g) With respect to the other matters included in the Auditor''s Report and to our best of our information and according to the explanations given to us:

(i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements (Refer note: 28(1)(a) to financial statements).

(ii) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

(iii) There has been no delay in transferring amounts, required to be transferred to the investor education and protection fund by the company.

The Annexure referred to in paragraph 1 of Our Report of even date to the members of Chennai Petroleum Corporation Limited on the accounts of the company for the year ended 31st March 2016. On the basis of checks as we considered appropriate and according to the information and explanations given to us during the course of audit, we report that

a) The company is in possession of 186.86 acres of Land allotted by Government of Tamil Nadu (classified as Poramboke) for which Assignment deed is yet to be received.

b) There were no material waiver / write off of debts/loans/interest etc other than waiver / write off in the normal course of business which are based on facts of such cases and approval as per delegation of authority.

c) The company has maintained adequate records in respect of inventories lying with third parties. No assets have been received as gifts from Government and Other authorities during the year.

The Annexure referred to in paragraph 2 of our report of even date to the members of Chennai Petroleum Corporation Limited on the accounts of the company for the year ended 31st March 2016.

On the basis of such checks as we considered appropriate and according to the information and explanations given to us during the course of our audit; we report that

1. (a) The company is maintaining proper records showing full particulars including quantitative details and situation of its fixed assets.

(b) The company has a program of physical verification of its fixed assets by which all fixed assets are verified in a phased manner in a period of 4 years. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the company and the nature of its assets. According to the information and explanations given to us, no material discrepancies were observed by the Management on such verification.

(c) The company is in possession of 186.86 acres of Land allotted by Government of Tamil Nadu (classified as Poramboke) for which Assignment deed is yet to be received.

2. According to the Information and explanation given to us, physical verification of inventory has been conducted at reasonable intervals by the management and no material discrepancies were noticed.

3. According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under Section 189 of the Companies Act, 2013. Consequently, the provisions of clauses 3(a) and 3(b) are not applicable.

4. The company has not provided any loan or investments or Guarantees or Securities which falls under the purview of Sec 185 and Sec 186 of Companies Act 2013.

5. According to the information and explanations given to us, the Company has not accepted deposits from the public and consequently the directives issued by the Reserve Bank of India and provisions of Section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and Companies (Acceptance of Deposits) amended Rules, 2015 are not applicable.

6. We have broadly reviewed the records maintained by the Company pursuant to the rules prescribed by the Central Government for maintenance of cost records under sub-section 1 of Section 148 of the Act and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the records.

7. (a) According to the information and explanations given to us, the Company is regular in depositing with the appropriate authorities the undisputed statutory dues in the case of Provident Fund, Employees'' State Insurance and Tax deducted at source. To the best of our knowledge and according to the information and explanations given to us, there are no arrears of outstanding statutory dues as at March 31, 2016 for a period of more than six months from the date they became payable.

(b) The details of disputed dues of Income tax, Sales tax, Excise duty, Customs duty and value added tax which have not been deposited as on 31st March 2016 are given in the Annexure ''''II” to our report.

8. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of any dues to financial institutions, banks and debenture holders.

9. In our opinion and according to the information and explanations given to us, the Company has not raised any money by the way of initial public offer (including debt instruments) and hence this clause is not applicable.

10. According to the information and explanations given to us, by the Company, no fraud on or by the Company has been noticed or reported, during the year.

11. The managerial remuneration paid by the company is as per the Sec 197 of The Companies Act 2013 and Schedule V of the Companies Act 2013.

12. The Company is not a Nidhi company hence this clause is not applicable.

13. All transactions mentioned are in compliance with Sec 177 and Sec 188 of the Companies Act 2013 and are disclosed as required under the applicable Accounting Standard.

14. The Company has made a preferential allotment of Non Convertible Redeemable Preference Shares for Rs 100000/- lakhs and the company has complied with the requirements of Sec 42 of the Companies Act 2013 and the amounts raised were used for the purpose for which the funds were raised.

15. The company has not entered into any non-cash transactions with the Directors or the persons connected with him which will come under the purview of Sec 192 of the Companies Act 2013.

16. As the Company is not in non banking financial services this clause is not applicable.

Statement of Disputed Dues

Name of the Statute

Nature of the dues

Disputed Amounts ( Rs, in Lakhs) (Including Interest)

Amount paid under protest / Predeposit ( Rs, in Lakhs)

Period to which the amount relates

Forum where the dispute is pending

Tamil Nadu Value Added Tax Act Tamil Nadu Value Added Tax Act

Tamil Nadu Value Added Tax Act Tamil Nadu Value Added Tax Act

Tamil Nadu Value Added Tax Act Tamil Nadu Value Added Tax Act

Value Added Tax Dues Value Added Tax Dues

Value Added Tax Dues Value Added Tax Dues

Value Added Tax Dues Value Added Tax Dues

5592.08

1029.75

6871.86

399.73

3916.48

1543.07

470.16

129.18

762.80

2007-08

2007-08

2008-09

2008-09

2009-10 2009-10

High Court (Tamil Nadu)

Tribunal & Dy. Commissioner CT - III Tamil Nadu High Court (Tamil Nadu)

Tribunal & Dy. Commissioner CT - III Tamil Nadu High Court (Tamil Nadu)

Tribunal & Dy. Commissioner CT - III Tamil Nadu

Tamil Nadu Value Added Tax Act

Value Added Tax Dues

1624.00

812.00

2012-13,

2013-14 ,

2014-15

( Upto Oct''14)

Joint Commissioner Appeal

Tamil Nadu Value Added Tax Act

Value Added Tax Dues

26223.00

2627.07

2010-11

High Court (Tamil Nadu)

Tamil Nadu Value Added Tax Act

Value Added Tax Dues

10114.00

1264.44

2011-12

Joint Commissioner Appeal

Tamil Nadu Value Added Tax Act

Value Added Tax Dues

2122.90

530.73

Nov-2014 to March 2015

Joint Commissioner Appeal

Andhra Pradesh Value Added Tax Act

Value Added Tax Dues

1731.81

626.20

Apr 2005 to Nov 2007

AP State Appellate Tribunal

Central Sales Tax Act

Sales Tax Dues

161.99

-

1991-92

Dy. Commissioner CT - III Tamil Nadu

Central Excise Act

Excise Dues

98.78

Jan 2005 to Jun 2005

Customs Excise and Service Tax Appellate Tribunal

Central Excise Act

Service Tax Dues

25.62

1.92

2015-16

Commissioner Appeal

Income Tax Act

Income Tax Dues

2749.50

1228.00

AY 2011-12

Commissioner of Income Tax ( Appeals)

Income Tax Act

Income Tax Dues

2226.58

-

AY 2010-11

Commissioner of Income Tax ( Appeals)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (the Act”)

We have audited the internal financial controls over financial reporting of Chennai Petroleum Corporation Limited (“the Company”) as of 31st March 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

MANAGEMENT''S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS

The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

AUDITORS'' RESPONSIBILITY

Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that:

1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;

2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and

3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

OPINION

In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

For R.Subramanian and Company For S. Viswanathan LLP

Chartered Accountants Chartered Accountants

FRN: 004137S FRN: 004770S/S200025

R.Rajaram V C Krishnan

Partner Partner

Membership No: 025210 Membership No: 022167

Place : Chennai

Date : 23rd May 2016