| Report on the Financial Statements
We have audited the accompanying financial statements of Interlink
Petroleum Ltd. ('The Company'), which comprises the Balance Sheet as at
March 31,2015, the Statement of Profit and Loss and the Cash Flow
Statement of the Company for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation and presentation 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 maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding the assets of the company
and for preventing and detecting 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 adequate 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 the
matters which are required to be included in the audit report under the
provisions of the Act, and the Rifles 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 misstatements. 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 a true and fair view in order to design
audit procedures, that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on whether the company has in
place an adequate internal financial controls system over financial
reporting and operating effectiveness of such controls. An audit also
includes evaluating the appropriateness of the accounting policies used
and the reasonableness of the accounting estimates made by the
Company's directors, as well as evaluating the overall presentation of
the financial statements. We believe that the audit evidence that we
have obtained is sufficient and appropriate to provide a basis for our
audit opinion on the financial statements.
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, of the State of affairs of the company as
at 31st March, 2015 and its losses and its cash flows for the year
ended on that date.
Emphasis of Matters
We draw attention to the following matters in the Notes to the
financial statements requiring emphasis by us. Our opinion is not
qualified in respect of these matters.
1. Note No. 3(d) of the Financial Statements regarding non provision
of interest on ECB Borrowings from Loyz Oil Pte Ltd. consequent to the
waiver of interest.
2. Note No. 5(b) of the Financial Statements regarding non provision
of interest on unsecured Borrowings.
3. Note No. 25 of the Financial Statements regarding Impact and
Justification on the Assumption of Going Concern:
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
order") issued by the Central Government of India in terms of
Sub-section (11) of Section 143 of the Act, we give in the annexure a
statement on the matter specified in the Paragraph 3 & 4 of the order,
to the extent applicable.
2. 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
purpose of our audit.
b) In our opinion proper books of accounts as required by law have been
kept by the company so far as it 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 accounts.
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) on the basis of the written representations received from the
directors as on 31st March, 2015, taken on records by board of
directors, none of the directors is disqualified as on 31st March,
2015, from being appointed as a director in terms of section 164(2) of
the Act;
f) with respect to the other matters to be included in the auditor'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 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 31 to the
financial statements;
ii. the company is not required to make any provisions under the
applicable law or accounting standards, for material foreseeable
losses, on long term contracts including derivative contracts;
iii. There were no amounts which were required to be transferred to
the Investor Education and Protection Fund by the Company;
The Annexure referred to in our Independent Auditors Report to the
members of the company on the financial statements for the year ended
31st March, 2015, we report that:
I. In respect of fixed assets
(a) The company has maintained proper records showing full particulars,
including quantitative details and situations of fixed assets
(b) All fixed assets have been physically verified by the management
during the year. There is a regular programme of verification which, in
our opinion, is reasonable having regard to the size of the Company and
the nature of its assets. No material discrepancies were noticed on
such verification.
II. In respect of inventory
(a) The Company is currently in the business of exploration and
production of crude oil and natural gas from the oil and/or gas
field(s), which is supplied as and when they are extracted. There is no
storage of crude oil or natural gas available and hence physical
verification of natural gas stock is not applicable. However, stores
and spare parts have been physically verified by the management at
reasonable intervals during the year.
(b) In our opinion and according to the information and explanation
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 explanation
given to us, the Company has maintained proper records of its inventory
and no material discrepancies were noted on physical verification.
III. The According to the information and explanations given to us,
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. Accordingly, the
provisions of clause 3(iii)(a) and (b) of the Order are not applicable
to the Company and hence not commented upon.
IV. In our opinion and according to information and explanations given
to us, there is an adequate internal control system commensurate with
the size of the company and the nature of its business with regard to
purchase of fixed assets and sale of goods & services. During the
course of audit, we have not observed any major weakness in the
internal control system of the Company in respect of these areas.
V. The company has not accepted any deposits from the public.
VI. 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 148(1) of the Companies Act,
2013, related to the extraction of crude oil and natural gas, and are
of the opinion that pfima facie, the specified accounts and records
have been made and maintained. We have not, however, made a detailed
examination of the same.
VII. (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including income-tax, sales-tax,
wealth-tax, service tax, customs duty, excise duty, value added tax,
cess and other material statutory dues applicable to it. The provisions
relating to provident fund employees' state insurance are not
applicable to the Company.
(b) According to the records of the Company, the dues outstanding of
income-tax, sales-tax, wealth-tax, service tax, customs duty, excise
duty, value added tax and cess on account of any dispute, are as
follows:
Name of the Statute Nature of
the Dues Amount Period for
which Forum where
Rs. in
Lacs amount
Relates dispute is
Pending
Income Tax Act 1961 Income Tax
Penalty and
Interest 37.33 A.Y.
2009-2010 ITAT,
Ahmedabad
(c) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company in accordance
with the relevant provisions of the Companies Act, 1956 (1 of 1956) and
rules made thereunder.
VIII. The accumulated losses of the Company are more than fifty percent
of its net worth. The company has incurred a cash loss of Rs.234.89
Lacs during the financial year covered by our audit and in the
immediately preceding financial year the company had incurred cash Loss
of Rs.140.21 Lacs.
IX. During the Year the ECB taken from DBS Bank in F.Y. 2010-11, F.Y.
2011-12 & F.Y. 2012-i3 of US$ 9 Million has been repaid by the Promoter
Company (Loyz Oil Pte Ltd.) on behalf of the company and resultantly
the refinancing of the same has been done by the Promoter Company,
permission of which has already been taken from Reserve Bank of India.
The company has not issued any debentures till 31st March, 2015.
X. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
XI. In our opinion and according to the information and explanations
given to us, the term loans have been applied by the company during the
year for the purpose for which they were obtained.
XII. Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no material fraud on or by the Company has been noticed or
reported during the year.
For Shirish Desai & Co.
Chartered Accountants
Firm Registration No. 112226W
Jaydeep A. Samani
Date : 30th May, 2015 (Partner)
Place: Noida Membership No.150207 |