TO THE MEMBERS OF
INTERLINK PETROLEUM LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of INTERLINK PETROLEUM
LIMITED ("the Company"), which comprise the Balance Sheet as at 31 March, 2018,
the Statement of Profit and Loss (including other comprehensive income), the Cash Flows
Statement and the statement of changes in equity for the year then ended and a summary of
the significant accounting policies and other explanatory information (herein after
referred to as "Standalone Financial Statements").
Managements Responsibility for the Standalone Financial Statements
The Companys 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 standalone financial statements that give a true and fair view
of the financial position, financial performance (including other comprehensive income),
cash flows and changes in equity of the Company in accordance with the accounting
principles generally accepted in India, including the Indian Accounting Standards (Ind AS)
prescribed under Section 133 of the Act read with the Companies (Indian Accounting
Standards) Rules, 2015 (as amended).
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.
Auditors Responsibility
Our responsibility is to express an opinion on these standalone financial statements
based on our audit. While conducting 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 and the Order issued under section 143(11) of the Act.
We conducted our audit of standalone financial statements 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 standalone financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
the disclosures in the standalone financial statements. The procedures selected depend on
the auditors judgment, including the assessment of the risks of material misstatement of
the standalone financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant to the Companys
preparation of the standalone financial statements that give a true and fair view in order
to design audit procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the Companys Directors, as well as
evaluating the overall presentation of the standalone financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the standalone financial statements.
Opinion
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 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 31 March, 2018, and its losses (including other comprehensive income), its cash
flows and the changes in equity for the year ended on that date.
Emphasis of Matter
We draw attention to the following matters in the notes to the standalone financial
statements of 31 March 2018. Our opinion is not modified in respect of this matter:
1. Note No. 9A(iii) 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. 9B(i) of the Financial Statements regarding non provision of interest on
unsecured Borrowings.
3. Note No. 22 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 (Auditors Report) Order, 2016 ("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", a statement on the matters specified in
the paragraph 3 and 4 of the Order.
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 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 Cash Flow Statement and the statement of changes in equity 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
Indian Accounting Standards specified in the Companies (Indian Accounting Standards)
Rules, 2015 (as amended) under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on 31
March, 2018 taken on record by the Board of Directors, none of the directors is
disqualified as on 31 March, 2018 from being appointed as a director in terms of Section
164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate report in "Annexure B"; and
(g) 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, as amended, 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-refer note no. 21 to the standalone
financial statements of 31 March 2018;
ii. the company is not required to make any provisions under the applicable law or Ind
AS, 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;
For Santosh Gupta & Co
Chartered Accountants
(Firms Registration No. 009713N)
Santosh Gupta (Partner)
Membership No. 088409
Place: Faridabad Date: 30 May 2018
Annexure A to Independent Auditors Report
Referred to Paragraph 1 under the heading of "Report on Other Legal and Regulatory
Requirements" of our report of even date
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.
(c) No immovable property has been owned by the company during the year for which title
deed is required.
ii. The Company does not have any inventory of raw material and finished goods during
the year. Accordingly paragraphs 3 (ii) (a), (b) and (c) of the order are not applicable.
iii. In our opinion and 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 paragraphs 3 (iii) (a), (b) and (c) of the order are not applicable.
iv. In our opinion and according to information and explanations given to us, the
company has complied with the provisions of Section 185 and 186 of the Companies Act, 2013
in respect of grant of loans, making investments and providing guarantees and securities,
as applicable.
v. According to information and explanations gives to us, the company has not accepted
any deposit and hence reporting under paragraph 3(v) (a), (b) and (c) of the order is not
applicable.
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 prima facie, the specified accounts and records have been made and
maintained. We have not, however, made a detailed examination of the same. vii.
(a) According to the information and explanations given to us in respect of statutory
and other dues we are informed that the provisions of Employees Provident Fund Act &
Employees State Insurance Act, 1948 are not applicable to the Company during the year.
According to the records of the Company, undisputed statutory dues including Investors
Education and Protection Fund, Income-tax, Sales-tax/ VAT, Wealth Tax, Custom Duty,
Service Tax, Excise Duty, Cess, and other material statutory dues have been generally
regularly deposited with the appropriate authorities.
According to the information and explanations given to us, there is no undisputed
amounts payable in respect of the aforesaid dues were outstanding as at March 31, 2018 for
a period of more than six months from the date they become payable.
(b) According to the information and explanations given to us, no disputed amounts
payable in respect of Wealth-tax, Sales Tax/VAT, Custom duty, Excise duty and Cess were in
arrears as at 31st March, 2018. However, according to the information and explanation
given to us, the following dues of income tax have not been disposed of by the company on
account of disputes:
| Name of the Statute |
Nature of the Dues |
Amount ( ) |
Period for which amount Relates |
Forum where dispute is Pending |
| Income Tax Act, 1961 |
Income Tax and Interest Under Section 143 (3) |
4,520/- |
A.Y. 2011-2012 |
Circle1(1)(2), Vadodara |
viii. In our opinion and according to information and explanation given to us, the
company has not defaulted in the repayment of loans or borrowings to financial
institutions, banks and government. The company has not issued any debentures. ix. The
company did not raise any money by way of initial public offer or further public office
(including debt instruments) & term loans during the year. Accordingly, Paragraph
3(IX) of the order is not applicable.
x. To the best of our knowledge and according to information & explanations given
to us, no material fraud by the company or on the company by its officers or employees has
been noticed or reported during the year.
xi. In our opinion and according to the information & explanations given to us
& based on our examination of the records of the company, the company has
provided/paid for managerial remuneration in accordance with the requisite approvals
mandated by the provisions of section 197 read with schedule V to the Act.
xii. In our opinion & according to the information & explanations given to us,
the company is not a Nidhi company.
Accordingly, paragraph 3(Xii) of the order is not applicable.
xiii. In our opinion and according to information & explanations given to us &
based on our examination of the records of the company, transactions with related parties
are in compliance with section 177 & 188 of the Companies act, 2013 where applicable
& details of such related party transaction have been disclosed in the financial
statements as required by the applicable accounting standards.
xiv. During the year the company has not made any preferential allotment or private
placement of shares or fully or partly convertible debentures and hence reporting under
paragraph 3(xiv) of the order is not applicable to the company.
xv. In our opinion and according to the information and explanations given to us &
based on our examination of the records of the company, the company has not entered into
non-cash transactions with directors or persons connected with him. According the
paragraph 3(xv) of the order is not applicable.
xvi. The Company is not required to be registered under section 45-IA of the Reserve
Bank of India Act, 1934
For Santosh Gupta & Co
Chartered Accountants
(Firms Registration No. 009713N)
Santosh Gupta (Partner)
Membership No. 088409
Place: Faridabad Date: 30 May 2018
Annexure B to Independent Auditors Report
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 INTERLINK
PETROLEUM LIMITED ("the Company") as of 31 March, 2018 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 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 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 Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys 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 auditors 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 Companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys 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 companys 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
companys 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 31 March, 2018, 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 Santosh Gupta & Co
Chartered Accountants
(Firms Registration No. 009713N)
Santosh Gupta (Partner)
Membership No. 088409
Place: Faridabad Date: 30 May 2018
+91-9892691696
