To the Members of
De Nora India Limited
Report on the Financial Statements
We have audited the accompanying financial statements of De Nora India Limited("the Company") which comprise the Balance Sheet as at 31 March 2016 theStatement of Profit and Loss and the Cash Flow Statement for the period beginning from 1January 2015 and ended on 31 March 2016 (the period) and a summary of thesignificant accounting policies and other explanatory information. ManagementsResponsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters stated insub-section 5 of Section 134 of the Companies Act 2013 ("the Act") with respectto the preparation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014 ("the Rules"). This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit.
We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified undersub-section 10 of Section 143 of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditors judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial controls relevant to the Companyspreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Companys Directors aswell as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31March 2016 and its profits and its cash flows for the period ended on that date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditors Report) Order 2015 (theOrder) issued by the Central Government of India in terms of sub-section (11) ofSection 143 of the Act we give in the Annexure a statement on the matters specified inparagraphs 3 and 4 of the said Order.
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 bestof 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 theCompany so far as it appears from our examination of those books;
c) the Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account;
d) in our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;
e) on the basis of the written representations received from the Directors as on 31March 2016 taken on record by the Board of Directors none of the Directors isdisqualified as on 31 March 2016 from being appointed as a Director in terms of Section164 (2) of the Act; and
f) With respect to the other matters to be included in the Auditors Report inaccordance with Rule 11 of the Companie s (Audit and Auditors) Rules 2014
in our opinion and to the best of our information and according to the explanationsgiven to us:
i. the Company has disclosed the impact of pending litigations on its financialposition in its financial statements - refer note 28 to the financial statements;
ii. the Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses; and
iii. there has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.
For B S R & Associates LLP
Firms Registration No: 116231W/W-100024
Membership No: 100060
25 May 2016
Annexure to the Independent Auditors Report - 31 March 2016
With reference to the Annexure referred to in our report of even date we report that:
i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets bywhich all fixed assets are verified in a phased manner over a period of three years. Inour opinion this periodicity of physical verification is reasonable having regard to thesize of the Company and the nature of its assets. In accordance with this programme ofphysical verification the Company has physically verified certain fixed assets during theyear and no material discrepancies were noticed on such verification.
ii. (a) The inventory except goods in transit has been physically verified by themanagement during the period. In our opinion the frequency of such verification isreasonable.
(b) The procedures for the physical verification of inventories followed by themanagement are reasonable and adequate in relation to the size of the Company and thenature of its business.
(c) The Company is maintaining proper records of inventory. The discrepancies noticedon verification between the physical stocks and the book records were not material.
iiii. The Company has not granted any loans secured or unsecured to Companies firmsor other parties covered in the register maintained under Section 189 of the Act.Accordingly paragraph 3(iii) of the Order is not applicable.
iv. In our opinion and according to the information and explanations given to us andhaving regard to the explanation that purchases of certain items of inventories are forthe Companys specialised requirements and similarly certain items of inventoriessold and services rendered are for the specialised requirements of the buyers for whichsuitable alternative sources are not available to obtain comparable quotations there isan adequate internal control system commensurate with the size of the Company and thenature of its business with regard to purchase of inventories and fixed assets and withregard to the sale of goods and services. In our opinion and according to the informationand explanations given to us we have not observed any major weakness in the internalcontrol system during the course of the audit.
v. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits as per the directives issued by the Reserve Bank ofIndia under the provisions of
Sections 73 to 76 or any other relevant provisions of the Act and the rules framedthere under. Accordingly paragraph 3(v) of the Order is not applicable.
vi. According to the information and explanation given to us the Central Governmenthas not prescribed the maintenance of cost records under Section 148 of the Act for any ofthe activities carried out by the Company.
vii. (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including Employees State InsuranceProvident fund Income tax Duty of excise Duty of customs Sales tax/ Value added taxService tax cess and any other material statutory dues have generally been regularlydeposited with the appropriate authorities except in few cases where there have beenslight delays.
According to the information and explanations given to us no undisputed amountspayable in respect of Employees State Insurance Provident fund Income tax Duty ofexcise Duty of customs Sales tax Value added tax Service tax cess and any othermaterial statutory dues were in arrears as at 31 March 2016 for a period of more than sixmonths from the date they became payable.
(b) According to the information and explanations given to us there are no dues ofIncome tax Provident fund Duty of customs Sales tax/ Value added tax and Service taxwhich have not been deposited with the appropriate authorities on account of any dispute.
According to the information and explanations given to us the following dues of Dutyof excise have not been deposited as on 31 March 2016 by the Company on account ofdisputes.
|Name of the Statute ||Nature of the Dues ||Amount Rs. ||Period to which the amount relates ||Forum where dispute is pending |
|Central Excise Act 1944 ||Excise duty on assessable value consequent to the benefit availed under the Goa Value Added Tax Deferment- cum-net present value compulsory payment scheme 2005 ||1132341 ||2003-2007 ||Additional Commissioner of Central Excise Goa |
(c) According to the information and explanations given to us there are no dues onaccount of Investor Education and Protection Fund in accordance with the relevantprovisions of the Companies Act 1956 and rules made thereunder.
viii. The Company does not have any accumulated losses at the end of the financial yearand has not incurred cash losses in the current financial year and in the immediatelypreceding financial year.
ix. The Company did not have any outstanding dues to any financial institution banksor debenture holders during the year.
x. According to the information and explanations given to us the Company has not givenany guarantee for loans taken by others from banks or financial institutions.
xi. The Company did not have any term loans outstanding during the year.
xii. According to the information and explanations given to us no fraud on or by theCompany has been noticed or reported during the course of our audit.
| ||For B S R & Associates LLP |
| ||Chartered Accountants |
| ||Firms Registration No: 116231W/W-100024 |
| ||Shabbir Readymadewala |
|Mumbai ||Partner |
|25 May 2016 ||Membership No: 100060 |