INDEPENDENT AUDITOR'S REPORT
To the Board of Directors of Great Eastern Energy Corporation Limited
Report on the Audit of Special Purpose Financial Statements
Opinion
We have audited the special purpose financial statements of Great Eastern Energy Corporation Limited ("the Company"), which comprise the statement of financial position as at 31 March, 2023, and the statement of profit and loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the special purpose financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying special purpose financial statements give a true and fair view of the financial position of the Company as at 31 March, 2023, and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs) as issued by International Accounting Standards Board ('IASB').
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the special purpose Financial Statements section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the financial statements in India, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the special purpose financial statements of the current period. These matters were addressed in the context of our audit of the special purpose financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For matter below, our description of how our audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor's responsibilities for the audit of the special purpose financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying special purpose financial statements.
Key audit matters | How our audit addressed the key audit matter |
Estimation of Gas Reserves (as described in note 2.2 of the special purpose financial statements) | |
The estimation of gas reserves and resources | Our work included following procedures: |
is a significant area of judgement due to the | • We have assessed the competence and objectivity of |
technical uncertainty in assessing quantities. | the experts that they were qualified to carry out the |
Reserves and resources are key inputs for | volume's estimation. |
calculation of depreciation and also, it's a | • Through inquiries and reading of reports, we have |
fundamental indicator of the future potential of | understood that the guidelines and methodology used |
the Company's performance. | by the expert to estimate the reserves with the |
relevant industry practices. | |
• We assessed that the updated reserves and | |
resources estimates were included in the company's | |
consideration of impairment assessment and in | |
accounting for depletion, depreciation and | |
amortisation. | |
• Assessed the adequacy of disclosure made by the | |
Company in the financial statements. |
Other Information included in the Company's Annual Report for 2022-23
Other information consists of the information included in the Annual Report, other than the financial statements and our auditor's report thereon. Management is responsible for the other information.
Our opinion on the special purpose 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 special purpose financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the 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 misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Financial Statements.
Management is responsible for the preparation of these special purpose financial statements that give a true and fair view in accordance with IFRSs and for such internal control as management determines is necessary to enable the preparation of special purpose financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the special purpose 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.
Those charged with governance are responsible for overseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the special purpose financial statements as a whole are free from material misstatement, 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 ISAs 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 special purpose financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the special purpose 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.
-
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Company's internal control. - 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 special purpose 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 special purpose financial statements, including the disclosures, and whether the 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 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.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Other Matters
The comparative financial information of the company as at and for the year ended 31 March, 2022 included in the special purpose financial statements were audited by the predecessor auditor, who had expressed unmodified opinion vide their report dated 07 July, 2022.
Our opinion on the special purpose financial statements is not modified in respect of above matter on the comparative financial information.
For S.N. Dhawan & Co LLP
Chartered Accountants
Firm Registration No.: 000050N/N500045
Manish Surana
Partner
Membership No.: 503812
UDIN : 23503812BGYOSI1137
Place: New Delhi
Date: 29 May 2023
Great Eastern Energy Corporation Limited
(All amounts in US dollars unless otherwise stated)
Statement of financial position
As at | |||
Note | |||
31 March 2023 | 31 March 2022 | ||
ASSETS | |||
Non-current assets | |||
Property, plant and equipment | 4.1 | 111,420,235 | 126,442,605 |
Right-of-use asset | 4.2 | 1,074,889 | 1,251,032 |
Capital work-in-progress (including Wells in progress) | 5 | 7,061,370 | 7,383,345 |
Intangible assets | 6 | 69,873 | 84,338 |
Prepayments | 7 | 49,969 | 66,093 |
Trade and other receivables | 8 | 213,303 | 146,853 |
Resctricted deposits with bank | 9b | 16,050 | - |
Deferred tax asset (net) | 16 | - | 469,687 |
Tax assets (net) | 423,922 | 411,407 | |
Total non-current assets | 120,329,611 | 136,255,360 | |
Current assets | |||
Trade and other receivables | 8 | 1,329,364 | 1,370,505 |
Liquid investments | 9a | 10,179,160 | 5,633,109 |
Prepayments | 7 | 88,514 | 103,610 |
Restricted deposits with banks | 9b | 1,696,837 | 1,640,107 |
Cash and cash equivalents | 10 | 37,986 | 21,972 |
Total current assets | 13,331,861 | 8,769,303 | |
Total assets | 133,661,472 | 145,024,663 | |
Equity | |||
Issued capital | 11 | 13,306,007 | 13,306,007 |
Share premium | 91,006,858 | 91,006,858 | |
Reserves | (45,004,130) | (37,886,418) | |
Retained earnings | 25,733,614 | 22,536,677 | |
Total equity attributable to equity holders of the Company | 85,042,349 | 88,963,124 | |
Non-current Liabilities | |||
Interest bearing loans and borrowings | 12 | 36,947,924 | 44,790,453 |
Employee benefit liabilities | 13 | 853,932 | 732,618 |
Deferred tax liabilities (net) | 16 | 161,394 | - |
Provisions | 15 | 259,803 | 284,202 |
Total non-current liabilities | 38,223,053 | 45,807,273 | |
Interest bearing loans and borrowings | 12 | 5,887,057 | 5,789,858 |
Trade and other payables | 14 | 3,600,334 | 3,683,394 |
Employee benefit liabilities | 13 | 908,679 | 781,014 |
Income tax payable (net) | - | - | |
Total current liabilities | 10,396,070 | 10,254,266 | |
Total liabilities | 48,619,123 | 56,061,539 | |
Total equity and liabilities | 133,661,472 | 145,024,663 | |
The accompanying notes form an integral part of the financial statements.
On behalf of Board of Directors
Yogendra Kr. Modi
Executive Chairman
Place: New Delhi
Date: May 29, 2023
Prashant Modi
Managing Director &
Chief Executive Officer
Place: New Delhi
Date: May 29, 2023
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Great Eastern Energy Corporation Limited
(All amounts in US dollars unless otherwise stated)
Statement of profit or loss
For the year ended | ||||
31 March | 31 March | |||
Note | 2023 | 2022 | ||
Revenue from operations | 27 | 29,783,577 | 26,661,983 | |
Other income | 17 | 581,521 | 501,271 | |
30,365,098 | 27,163,254 | |||
Employee benefit expenses | 18 | (4,656,753) | (4,219,451) | |
Other expenses | 19 | (9,981,246) | (9,100,515) | |
Finance income | 20 | 102,751 | 114,830 | |
Finance costs | 21 | (4,623,842) | (5,568,551) | |
Depletion, depreciation and amortisation | 4,6, 2.3 (f) | (5,646,454) | (6,363,617) | |
Exchange fluctuation gain / (loss) (net) | (997,724) | 324,421 | ||
(25,803,268) | (24,812,883) | |||
Profit before tax | 4,561,830 | 2,350,371 | ||
Income tax expense | ||||
Current tax | 16 | (792,286) | (395,668) | |
Income tax for earlier years | 16 | - | (5,908) | |
Deferred tax (expense)/income | 16 | (607,996) | (555,937) | |
Profit for the year | 3,161,548 | 1,392,858 | ||
Profit attributable to: | ||||
Equity holders of the Company | 3,161,548 | 1,392,858 | ||
Earnings per share | ||||
Basic earnings per share | 22 | 0.05 | 0.02 | |
Diluted earnings per share | 22 | 0.05 | 0.02 |
The accompanying notes form an integral part of the financial statements.
On behalf of Board of Directors
Yogendra Kr. Modi | Prashant Modi |
Executive Chairman | Managing Director & |
Chief Executive Officer | |
Place: New Delhi | Place: New Delhi |
Date: May 29, 2023 | Date: May 29, 2023 |
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Great Eastern Energy Corporation Ltd. published this content on 01 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 June 2023 10:46:02 UTC.