To
The Members of Chennai Petroleum Corporation Limited Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of M/s.Chennai Petroleum Corporation Limited (hereinafter referred as "the Company”), which comprise the Balance Sheet as at 31st March 2025, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flows and Statement of Changes in Equity for the year then ended, and notes to the standalone financial statements, including material accounting policies and other explanatory information (hereinafter collectively referred as "standalone financial statements”).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements, give the information required by the Companies Act, 2013 ("the Act”) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standard) Rules, 2015, as amended ("Ind AS”) and other accounting principles generally accepted in India, of the state of affairs (financial position) of the Company as at 31st March 2025 and, its total comprehensive income (comprising of profit and other
comprehensive income), its cash flows and the 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 Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditors Responsibilities for the audit of the standalone financial statements section of this report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI), together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Companies Act, 2013 and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Emphasis of Matter
We draw attention to Note No. 44.1 of the standalone financial statements, which discusses the implementation of Cauvery Basin Refinery cum Petrochemical Complex and the related arrangements in funding the project. Our opinion is not modified in respect of this matter.
Key Audit Matters
Key Audit Matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the financial year. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key Audit Matter |
How it was addressed during audit |
Measurement of Inventories (excluding stores and spares) |
|
| a. As at 31st March 2025; the value of inventory (excluding stores and spares) is Rs 5,372.84 Crores. This constitutes significant portion of the total inventory of the Company. | a. We have evaluated the appropriateness of the methodology used to record the physical quantity of stock. |
| b. The inventories are initially measured by volume by using various scientific / technical parameters by the Companys in-house experts. | b. We participated in the managements exercise to physically verify the inventory at year end on a test check basis. |
| c. Considering that the quantity is measured using various technical / scientific parameters and the valuation is based on these quantities computed and allocation of cost based on specific parameters which includes significant amount of management judgements and estimates, hence it is considered as a key audit matter. | c. In case of finished products and intermediate products which involve significant amount of measurement including the use of scientific and technical parameters and conversion metrics, we tested the same on sample basis and compared the book quantities with derived values to ensure its accuracy and independently validated the input data from external sources of information. |
| (Please refer Note No 9 and Material Accounting Policies in Note No 1A, Sub Note 7) | d. In case of primary raw material i.e., crude oil, we have test checked the computation of the cost. |
| e. In case of intermediate products (stock-in-process) and finished products, we have verified the methodology of valuation including consistency in the manner of allocation of costs within the joint products and assumptions used. | |
| f. We have compared the cost vis-a-vis net realisable value of the inventory and tested the requirements, if any, for the write down of the inventories to net realisable value. | |
Property, Plant and Equipment |
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| a. The major items in Companys Property Plant and Equipment (PPE) constitutes substantial component of the overall Assets of the Company. | a. Review of the process of maintenance of PPE Register, additions and disposals of PPE and process of physical verification. |
| b. Considering the complexities of the PPE, ensuring its ownership, technical estimates required for determining the life and challenges in physical verification, we have considered PPE as a key audit matter. | b. Review of the title deeds of immovable properties. |
| c. On a sample basis, vouched for the additions and disposals of PPE during the year and evaluated the control environment thereto. | |
| d. Reviewed the exercise of physical verification of PPE by the management. | |
Provisions (excluding employee benefit related) and Contingent Liabilities |
|
| a. The Company has disclosed contingent liabilities in Note No. 33 B, relating to dues disputed with statutory authorities including Central Excise, Customs, Service Tax, Sales Tax, Goods and Services Tax, Income Tax and other statutes. | a. Assessment of the process and relevant controls implemented to identify legal and tax litigations and pending administrative proceedings. |
| b. The above contingent liabilities related to disputes under various statutes which require significant amount of judgement to determine possible outcome which may or may not have a financial impact; and hence disclosed unless there is possibility of outflow of economic resources is considered remote. | b. Assessment of assumptions used in estimating the possible outcome of such disputed claims / cases against the Company based on records and judicial precedents made available. |
| c. The assessment of the risks associated with the litigations is based on complex assumptions which require the use of significant judgement, and such judgement relates primarily to the assessment of the uncertainties connected to the prediction of the outcome of the proceedings and to the adequacy of the disclosures in the standalone financial statements. Because of the judgement required, the materiality of such litigations and the complexity of the assessment process, the area is a key matter of our audit. | c. Inspection of the key relevant documentation and inquiry with the legal and tax departments regarding the status of the most significant disputes. |
| d. Analysis of opinion received from the experts wherever available. | |
| e. Review of the adequacy of the disclosures in the notes to the standalone financial statements. | |
| f. Assessed the disclosures made in the financial statements. |
Other Matters
The standalone financial statements include corresponding financial information that is for the year ending 31st March 2024 which has been audited by another auditor. The predecessor auditors report dated 24th April 2024 contains an unmodified opinion on the standalone financial statements.
The Company did not have the minimum number of Independent Directors required in terms of the provisions contained in the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, for the financial year, on the Board. Further, the Company also does not have any Woman Director on the Board, as required by the above regulations, from 1st May 2024. We are informed that the appointment of Independent Director and Woman Director is in consideration of the Government of India as on the date of this report.
Our opinion is not modified in respect of above matters.
Other Information
The Companys Management and the Board of Directors is responsible for the other information. The other information comprises of financial performance highlights. Boards Report includes annexures to the Boards Report and other information included in the Annual Report but does not include the standalone and consolidated financial statements and our report thereon. The matters to be included in the Annual Report is expected to be made available to us after the date of this auditors report. Our opinion on the standalone financial statements does not cover the other information and will not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated. When we read the other information, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance for appropriate action and if left uncorrected, bring the material misstatement to attention of the user.
Responsibilities of Management and those charged with Governance for the standalone financial statements
The Companys Management and the Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act.
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 controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, the Board of Directors is responsible for assessing the Companys ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. The Board of Directors are also responsible for overseeing the Companys financial reporting process.
Auditors Responsibilities for the audit of the standalone financial statements:
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors report that includes our opinion. Reasonable assurance is a high level of assurance but it is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
a. Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
b. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)
(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.
c. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
d. Conclude on the appropriateness of managements use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companys ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the Company to cease to continue as a going concern.
e. Evaluate the overall presentation, structure, and contents of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2020 ("the Order”) issued by the Central Government of India in terms of sub-section (11) of Section 143 of the
Act and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the "Annexure 1”, a statement on the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.
2. Based on the verification of records of the Company and based on information and explanations provided to us during the audit, we provide here with a report on the Directions issued by the Comptroller and Auditor General of India in terms of Section 143(5) of the Act as Annexure 2.
3. As required by sub-section (3) of Section 143 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 it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows dealt with by this report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act.
e) This being a Government Company, in terms of Notification No. G.S.R.463(E.) dated 5th June 2015; issued by the Ministry of Corporate Affairs, Government of India, the provisions of Section 164(2) of the Act does not apply.
f) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure 3". Our report expresses an unmodified opinion on the adequacy and the operating effectiveness of the internal financial controls with reference to financial statements.
g) This being a Government Company, in terms of Notification No. G.S.R.463(E.) dated 5th June 2015; issued by the Ministry of Corporate Affairs, Government of India, the provisions of Section 197 read with Schedule V of the Act does not apply.
h) With respect to the other matters to be included in the Auditors 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 standalone financial statements in Note No. 33B.
ii. The Company has made provision as required under the applicable law or accounting standards for material foreseeable losses, if any, on the long-term contracts. As informed to us and based on the examination of the books of accounts, the Company did not have any derivative contracts during the year.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
iv. (i) The Management has represented that, to the best of its knowledge and belief, other than as disclosed in the notes to the accounts, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company ("Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(ii) The Management has represented, that, to the best of its knowledge and belief, other than as disclosed in the notes to the accounts, no funds have been received by the company from any person(s) or entity(ies), including foreign entities ("Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
iii. Based on such audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to their notice that has caused them to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (i) and (ii) above, contain any material misstatement.
v. The final dividend for the previous year ending 31st March 2024 has been paid within the timeline prescribed under Section 123 of the
Act. Refer Note 12 (B) and Note 16 (C) of the standalone financial statements for the details of unclaimed dividend. The Company has proposed dividend as given in Note 29, which is subject to approval by Members in the Annual General Meeting.
vi. Based on our examination which included test checks, the Company has used an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software and has been preserved appropriately.
Annexure 1 referred to in Paragraph 1 of Report on Other Legal and Regulatory Requirements of our report of even date to the members of Chennai Petroleum Corporation Limited on the standalone financial statements of the Company, for the year ended 31st March 2025.
Based on the information and explanation provided to us, including inquiries with management, and representations received and based on our examination of records, we report that:
(i) (a) (A) The Company has maintained proper records showing full particulars, including quantitative details and situation
of Property, Plant and Equipment (PPE).
(B) The Company has maintained proper records showing full particulars of intangible assets.
(b) The PPE are physically verified by the Management according to a phased programme designed to cover all the items over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme, a portion of the PPE has been physically verified by the Management during the year and no material discrepancies have been noticed on such verification.
(c) The title deeds of immovable properties (freehold land) are held in the name of the Company except in case of certain freehold lands given below:
(d) The Company has not revalued any of its Property, Plant and Equipment (including Right of Use assets) or intangible assets during the year.
(e) There are no proceedings that have been initiated or pending against the Company for holding any benami property under The Benami Transactions (Prohibition) Act, 1988 (45 of 1988), and rules made thereunder.
(ii) (a) The physical verification of inventory has been conducted at reasonable intervals by the management and in our opinion, the coverage and procedure of such verification by the management is appropriate. We did not observe any discrepancies of 10% or more in the aggregate value of inventories.
(b) The Company during the year was sanctioned working capital limits in excess of Rupees Five Crores, in aggregate, from banks and financial institutions on the basis of security of current assets. The quarterly returns or statements filed by the Company with such banks or financial institutions are in agreement with the books of the Company and we did not find any material discrepancies.
(iii) The Company during the year has neither made any investments in companies, firms, limited liability partnerships, and nor has provided any guarantee or security nor granted any loans or advances in the nature of loans, secured or unsecured loans, to companies, firms, limited liability partnerships or any other parties. Hence, reporting under Clause 3(iii)(a), 3(iii) (b), 3(iii)(c), 3(iii)(d), 3(iii)(e) and 3(iii)(f) does not arise.
(a) During the year the Company has not provided loans or provided advances in the nature of loans, or stood guarantee, or provided security to any other entity including joint ventures or associate. Further, the Company does not have any subsidiary. Consequently, the provisions of paragraphs 3(iii)(a)(A) and 3(iii)(a) (B) are not applicable to the Company.
(b) The investments made in Associate and Joint Ventures are not prejudicial to the Companys interest. The Company has not provided any guarantee nor given any security nor any loans or advances in the nature of loans which are prejudicial to the companys interest.
(c) The Company has not given any loans and advances in the nature of loans and hence reporting under Paragraph 3(iii)(c), 3(iii)(d), 3(iii)(e), 3(iii)(f) are not applicable.
(iv) In our opinion and according to the information and explanations given to us, the Company did not grant any loan, make any investment and given guarantees or security during the year which requires compliance under Section 186 of the Act. In respect of loans to parties covered under Section 185, provisions of Section 185 of the Act have been complied with.
(V) The Company has not accepted any deposits or deemed deposits in compliance to the provisions prescribed for accepting deposits under Section 73 to 76 of Companies Act, 2013, and any other relevant provisions of the Act and rules made thereunder. We have been informed by the Management that no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal in this regard.
(vi) We have broadly reviewed accounts and records maintained by the Company pursuant to rules made by the Central Government for the maintenance of cost records under Section 148(1) of the Act, in respect of Companys products to which the said rules are made applicable and are of the opinion that, prima facie the prescribed accounts and records have been made and maintained. We have, however, not made a detailed examination of records with a view to determine whether they are accurate.
(vii) (a) The Company is regular in depositing material undisputed statutory dues including Goods and Services Tax, Provident
Fund, Employees State Insurance, Income-Tax, Sales-Tax, duty of Customs, duty of Excise, Cess, and other statutory dues to the appropriate authorities and there were no material undisputed amounts payable in respect of Goods and Service tax, Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Service Tax, duty of Custom, duty of Excise, Value Added Tax, Cess, and other material statutory dues in arrears as at 31st March 2025 for a period of more than six months from the date they became payable.
(b) There are no dues of income tax, sales tax, value added tax, service tax, goods and service tax, duty of customs, duty of excise and other material statutory dues which have not been deposited with the appropriate authorities on account of any dispute as on 31st March 2025 other than those given below:
Name of the Statute |
Nature of Dues | Forum where dispute is pending | Period to which the amount relates (financial years) | Gross Amount* (Rs In Crores) | Amount paid under protest (Rs In Crores) |
| Central Excise Act, 1944 | Central Excise | CESTAT | 2012-13 to 2014-15 2012-13 to 2014-15 Aug 2015 to Feb 2017 March 2012 | 555.77 | 10.00 |
| Asst. Commissioner of Central Tax (GST) and Central Excise | January 2005 to June 2005 | 0.99 | |||
| Sales Tax / VAT Legislations | Sales Tax / VAT | High Court | 2007- 08 2008- 09 2009- 10 2016- 17 (Jan 2017 to Mar 2017) 2017- 18 (Apr 2018 to Jun 2018) | 66.91 | 14.62 |
| Deputy Commissioner | 2014-15 (Apr 2014 to Oct 2014) 2016-17 (Apr 2016 to Sep 2016) 2016-17 (Oct 2016 to Dec 2016) | 79.91 | 16.69 | ||
| Central Sales Tax | CST | Deputy Commissioner | 1991-92 | 1.62 | |
| Finance Act 1994, | Service Tax | CESTAT | 2010-11 to 2014-15 2009 to 2014 2015- 16 and 2016-17 (Upto June 2017). 2014-15 2016- 17 & Nov 2015 | 37.19 | 0.75 |
| Goods and Servies Tax Act 2017 | GST | Joint Commissioner (ST) (GST Appeals) | 2017-18, 2018-19, 2019-20, 2020-21 | 320.23 | 7.01 |
| Income Tax Act, 1961 | Income Tax | Commissioner of Income Tax | 2015-16 | 1.50 | - |
* Gross amount includes penalty and interest, wherever applicable
(viii) Based on our examination of records and inquiry with the management, there are no transactions in the nature of undisclosed income or income surrendered under the Income Tax Act, 1961, which needs to be accounted in the books of accounts.
(ix) (a) As per the records of the Company examined by us and the information and explanations given to us, the Company
has not defaulted in repayment of loans or other borrowings to any lender during the year.
(b) The Company has not been declared a defaulter by any bank, financial institution, or any other lender.
(c) The Company has utilised the money obtained by way of term loans during the year for the purposes for which they were obtained.
(d) According to the information and explanations given to us, and the procedures performed by us, and an overall examination of the standalone financial statements of the Company, we report that no funds raised on short-term basis have been used for long-term purposes by the Company.
(e) The Company has not taken any funds from any entity or person on account of or to meet the obligations of its Joint Ventures or Associate. The Company does not have any subsidiary.
(f) The Company has not raised loans during the year on the pledge of securities held in its joint ventures or associate. The Company does not have any subsidiary.
(x) (a) The Company has not raised funds from a public offer (equity or debt capital) as per the Initial Public Offer / Follow
on Public Offer during the year, hence reporting under this clause does not apply.
(b) The Company has not made private placement or preferential allotment of shares or convertible debentures (fully, partially, or optionally convertible) under Section 42 and Section 62 of the Act during the year.
(xi) (a) No fraud by the Company has been noticed or reported during the year. During the course of our audit, we were informed by the Management that the Vigilance Department, based on a complaint received from an outsider, has identified and reported a fraud on the Company amounting to Rs 1.82 crores pertaining to the year 2019-20, by one of its vendors, by submitting fabricated bank statements to the Company. We were informed that the Management is in the process of investigating this fraud in all respects, including identification of the extent of the financial loss, if any, and whether any officer or employee of the Company is involved in this matter.
(b) There were no report(s) under sub-section (12) of Section 143 of the Act filed by us in Form ADT-4 as prescribed under Rule 13 of the Companies (Audit and Auditors) Rules, 2014 with the Central Government.
(c) In our opinion and as per the information and explanation given to us, and based on our examination of records, there were no whistleblower complaints received during the year.
(xii) The Company is not a Nidhi Company and therefore the reporting under this clause does not apply.
(xiii) The related party transactions are entered in to by the Company are in compliance with Sections 188 and Sections 177 (to the extent where the Audit Committee was constituted) of the Act where applicable, and the details of such transactions have been disclosed in the standalone financial statements, as required by Ind AS 24 - Related Party Transactions.
(xiv) (a) The Company has an internal audit system commensurate with the size and nature of its business.
(b) We have considered, the internal audit reports for the year under audit, issued to the Company during the year and till date, in determining the nature, timing and extent of our audit procedures.
(xv) According to the information and explanation provided to us and based on our examination of records, the Company has not entered into any non-cash transactions with directors or persons connected with them.
(xvi) (a) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934), and hence reporting under this clause does not apply.
(b) The Company has not conducted any Non-Banking Financial or Housing Finance activities without a valid Certificate of Registration (CoR) from the Reserve Bank of India as per Reserve Bank of India Act, 1934 and hence reporting under this clause does not apply.
(c) The Company is not a Core Investment Company as defined in the regulations made by RBI and hence reporting under this clause and in sub-clause (d) does not apply.
(xvii) On an overall examination of the financial statements of the Company, the Company has not incurred any cash loss during the current year or in the immediately preceding financial year.
(xviii) There has been no resignation of statutory auditors and hence reporting under this clause does not apply.
(xix) (a) According to the information and explanations given to us and on the basis of the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying the financial statements, our knowledge of the Board of Directors and management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report that Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date.
We, however, state that this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the Company as and when they fall due.
(xx) (a) The Company does not have any unspent amount towards Corporate Social Responsibility (CSR) and there are no ongoing projects. The Company is not required to make any provision for the same and no amount is required to be transferred to separate bank account within six months from the end of the financial year which is 30th September 2025.
(b) In respect of ongoing projects, the Company does not have any unspent CSR amount that needs to be transferred to a special account within a period of thirty days from the financial year in compliance with provisions of section 135(6) of the Act.
Annexure 2 referred to in Paragraph 2 of Report on Other Legal and Regulatory Requirements of our report of even date on the standalone financial statements of the Company for the year ended March 31, 2025:
Based on the verification of records of the Company and based on the information and explanations given to us, we give below a report on the directions issued by the Comptroller and Auditor General of India (C&AG) in terms of Section 143(5) of the Act:
Sl. No. Directions under section 143(5) of the Act |
Auditors Comment |
| 1 Whether the Company has system in place to process all the accounting transactions through IT SystemRs If yes, the implications on the integrity of the accounts along with the financial implications, if any, may be stated. | As per the information and explanations furnished to us and based on the procedures performed by us, the Company has an Enterprise Resource Planning (ERP) system (SAP) to process the accounting transactions. However, there are few other accounting processes such as valuation of inventory, interest calculation with respect to borrowings, ageing in the case of trade receivables and payables, ageing of capital work-inprogress are performed through excel spreadsheets wherein we did not observe any implications on the integrity of the accounting transactions. |
| 2 Whether there is any restructuring of an existing loan or cases of waiver/write off of debts/loans/ interest etc. made by a lender to the company due to the companys inability to repay the loanRs If yes, the financial impact may be stated. | There are no cases of restructuring of any loan or cases of waiver/ write off debts/ loans/ interest etc. made by any lender to the Company have been noticed during the financial year 2024-25. |
| 3 Whether funds (grants/subsidy etc.) received/ receivable for specific schemes from Central/State Government or its agencies were properly accounted for/utilized as per its term and conditionsRs List the cases of deviation. | As per the information and explanations furnished to us and based on the procedures performed by us, the funds received /receivable by the Company for specific schemes from Central/State agencies were properly accounted as per the term and conditions. |
Annexure 3 referred to in Clause (f) of Paragraph 2 of Report on Other Legal and Regulatory Requirements of our report of even date on the standalone financial statements of the Company for the year ended 31st March 2025:
We have audited the internal financial controls with reference to standalone financial statements of Chennai Petroleum Corporation Limited (the Company) as of 31st March 2025, in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys Management is responsible for establishing and maintaining internal financial controls based on the internal control with reference to standalone financial statements 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. 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 Companys 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 Act.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial controls with reference to standalone financial statements 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, to the extent applicable to an audit of internal financial controls, both issued by the Institute of Chartered Accountants of India. Those Standards and 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 with reference to standalone financial statements were 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 with reference to standalone financial statements and their operating effectiveness. Our audit of internal financial controls with reference to standalone financial statements included obtaining an understanding of internal financial controls with reference to standalone financial statements, 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 auditors judgement, 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 Companys internal financial controls with reference to standalone financial statements.
Meaning of Internal Financial Controls with reference to standalone financial statements
A Companys internal financial controls with reference to standalone financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of standalone financial statements for external purposes in accordance with generally accepted accounting principles. A Companys internal financial controls with reference to standalone financial statements 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 authorisations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Companys assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with reference to standalone financial statements
Because of the inherent limitations of internal financial controls with reference to financial statements, 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 with reference to financial statements to future periods are subject to the risk that the internal financial controls with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
According to the information and explanation given to us and based on our audit, the Company has, in all material respects, an adequate internal financial controls with reference to standalone financial statements and such internal financial controls with reference to standalone financial statements were operating effectively as at 31st March 2025 based on the internal financial controls with reference to financial statements criteria established by the Company considering the essential components of the internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by Institute of Chartered Accountants of India.
For R.G.N. Price & Co., |
K Venkatakrishnan |
| Chartered Accountants | Partner |
| FRN:002785S | Membership No.208591 |
| UDIN: 25208591BMOGSL7836 | |
| Place: Chennai | |
| Date : 25th April 2025 |
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