INDEPENDENT AUDITORS REPORT
TO THE MEMBERS OF CONFIDENCE PETROLEUM INDIA LIMITED
Report on the Audit of the Standalone Financial Statements
Qualified Opinion
We have audited the accompanying standalone financial statements of Confidence Petroleum India
Ltd(“the Company”), which comprise the balance sheet as at 31st March, 2023, and the Statements of
Profit and Loss (including Other Comprehensive Income), the Statements of changes in Equity and
statements of cash flows for the year then ended, and notes to the standalone financial statements,
including a summary of significant accounting policies and other explanatory information.
(hereinafter referred to as ‘the 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
(‘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 Standards) Rules, 2015, as amended, (“Ind AS”) and other accounting principles generally
accepted in India, except the effects of the matter described in the basis for qualified opinion
paragraph, of the state of affairs of the Company as at 31st March, 2023, its Profit, total
comprehensive income, changes in equity and cash flows for the year ended on that date.
Basis for Qualified Opinion
We conducted our audit of the standalone financial statements in accordance with the standards on
auditing specified under section 143 (10) of the Companies Act, 2013. Our responsibilities under
those Standards are further described in the auditor's responsibilities for the audit of the standalone
financial statements section of our report. We are independent of the Company in accordance with the
code of ethics issued by the Institute of Chartered Accountants of India together with the ethical
requirements that are relevant to our audit of the standalone financial statements under the
provisions of the Act and the rules there under, 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
The gratuity liability is to be provided as per Actuarial Valuation using PUCM (Projected Unit Credit
Method). In the opinion of the management, the fair liability of gratuity will not be material. However,
as informed by the management, the company has appointed the consultant for working the gratuity
liability as per Actuarial Valuation using PUCM and will be provided once the report of the consultant
is received.
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 current period. These matters were addressed
in the context of our audit of the financial statements as a whole, and in forming our opinion thereon,
and we do not provide a separate opinion on these matters. We have determined that there are no key
audit matters to communicate in our report.
Information other than the financial statements and auditors' report thereon
The Company's Board of Directors is responsible for the other information. The other information
comprises the information included in the Annual report, but does not include the Financial
Statements and our auditors' report thereon.
Our opinion on the Standalone Financial Statements does not cover the other information and we do
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 and, in doing so, consider whether such other information is materially inconsistent
with the standalone financial statements or our knowledge obtained in the audit or otherwise appears
to be materially misstated. If, based on the work we have performed, we conclude that there is a
material mis-statements of this other information, we are required to report that fact. We have
nothing to report in this regard as no other information as described above has been made available
for review.
Management's Responsibility for the Standalone Financial Statements
The Company's board of directors are 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 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 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 of 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 misstatements, whether due to
fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the
Company's ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless management either intends to
liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The board of directors is also responsible for overseeing the Company's financial r eporting process.
Auditor's 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 misstatements, whether due to fraud or error, and to issue an
auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not
a guarantee that an audit conducted in accordance with SAs will always detect a material
misstatements 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 skepticism throughout the audit. We also:
Identify and assess the risks of material misstatements 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 misstatements 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.
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.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
Conclude on the appropriateness of management's 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 Company's ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditor's
report to the related disclosures in the standalone 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 auditor's report. However, future events or conditions may cause the Company to cease to
continue as a going concern.
Evaluate the overall presentation, structure and content 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.
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 statements 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 (Auditor's Report) Order, 2020 (“the Order”), issued by the
Central Government of India in terms of sub-section (11) of section 143 of the Companies Act,
2013, we give in the Annexure “A”, a statements on the matters specified in paragraphs 3 and 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 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 statements of profit and loss including the Statements of Other
Comprehensive Income, the cash flow statements and Statements 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 accounting
standards specified under section 133 of the Act, read with Companies (Indian Accounting
Standards) Rules,2015, as amended;
(e) On the basis of the written representations received from the directors as on 31st March,
2023 taken on record by the board of directors, none of the directors is disqualified as on 31st
March, 2023 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 with reference to these Standalone Financial Statements and the operating
effectiveness of such controls, refer to our separate Report in “Annexure B” to this report; and
(g) With respect to the other matters to be included in the Auditor's Report in accordance with
the requirement of section 197(16) of the Act, as amended In our opinion and according to the
information and explanation given to us, the remuneration paid by the company to its directors
during the year is in accordance with the provisions of section 197 read with Schedule V to the
Act for the year ended 31st March, 2023;
(h) With respect to the other matters to be included in the Auditor's Repor t 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 does not have any pending litigations which would impact its standalone
financial position;
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
iv. (a)The Management has represented that, to the best of its knowledge and belief, as disclosed
in the notes to the accounts, no funds (which are material either individually or in the
aggregate) 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;
(b) The Management has represented, that, to the best of its knowledge and belief, no funds
(which are material either individually or in the aggregate) have been received by the
Company from any person or entity, including foreign entity (“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;
(c) Based on the audit procedures that have been considered reasonable and appropriate in the
circumstances, nothing has come to our notice that has caused us to believe that the
representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b)
above, contain any material misstatements. (Refer note no 40 (iv) & (v) of the standalone
financial statements)
v. (a)The final dividend paid by the Company during the year in respect of the previous year is in
accordance with Section 123 of the Act to the extent it applies to payment of dividend.
(b) No interim dividend declared and paid by the Company during the year.
(c) As stated in the note 42 to the standalone financial statements, the Board of Directors of the
Company has proposed final dividend for the year is subject to the approval of the members at
the ensuring annual general meeting, The dividend declared is in accordance with Section 123
of the Act to the extent it applies to the declaration of dividend.
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account
using accounting software which has a feature of recording audit trail (edit log) facility is
applicable to the Company with effect from April 1, 2023, and accordingly, reporting under
Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial
year ended 31st March, 2023.
As per our Report of even date
For L N J & Associates For Koshal & Associates
Chartered Accountants Chartered Accountants
Sumit V Lahoti Koshal Maheshwari
Partner Proprietor
M.N.138908 M.N.043746
FRN: 135772W FRN: 121233W
UDIN : 23138908BGWRQG1060 UDIN : 23043746BGXBEF7919
Date :29th May, 2023 Date: 29th May, 2023
Place : Nagpur Place: Mumbai
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