You are here » Home » Companies » Company Overview » DE Nora India Ltd

DE Nora India Ltd.

BSE: 590031 Sector: Engineering
NSE: DENORA ISIN Code: INE244A01016
BSE 13:20 | 19 Jan 284.80 -3.20
(-1.11%)
OPEN

289.70

HIGH

292.45

LOW

282.60

NSE 13:14 | 19 Jan 283.25 -3.95
(-1.38%)
OPEN

289.00

HIGH

293.70

LOW

281.00

OPEN 289.70
PREVIOUS CLOSE 288.00
VOLUME 2663
52-Week high 332.00
52-Week low 217.15
P/E 296.67
Mkt Cap.(Rs cr) 151
Buy Price 284.50
Buy Qty 1.00
Sell Price 286.00
Sell Qty 1.00
OPEN 289.70
CLOSE 288.00
VOLUME 2663
52-Week high 332.00
52-Week low 217.15
P/E 296.67
Mkt Cap.(Rs cr) 151
Buy Price 284.50
Buy Qty 1.00
Sell Price 286.00
Sell Qty 1.00

DE Nora India Ltd. (DENORA) - Auditors Report

Company auditors report

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 2017 theStatement of Profit and Loss and the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's 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 andpresentation of these financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with relevant rules issued thereunder.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

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 underSection 143 (10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe 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 theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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.

Opinion

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 2017 and its profits and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 (‘the Order')issued by the Central Government of India in terms of Section 143 (11) of the Act we givein the "Annexure A" a statement on the matters specified in paragraphs 3 and 4of the said 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 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 relevant rules issuedthereunder;

(e) on the basis of the written representations received from the Directors as on 31March 2017 and taken on record by the Board of Directors none of the Directors isdisqualified as on 31 March 2017 from being appointed as a Director in terms of Section164 (2) of the Act; (Rs) with respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B"; and

(g) with respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 financialposition in its financial statements - refer note 27 of the financial statements;

ii. the Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses;

iii. there were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company; and

iv. the Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes (SBN) during the period from 8November 2016 to 30 December 2016. Based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with the books of accountmaintained by the Company and as produced to us by the Management - refer note 38 of thefinancial statements.

For B S R & Associates LLP
Chartered Accountants
Firm's Registration No: 116231W/W-100024
Shabbir Readymadewala
Mumbai Partner
8 May 2017 Membership No: 100060

"Annexure A" to the Independent Auditor's Report -

31 March 2017

Referred to in our report of even date.

(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. Inaccordance with this programme of physical verification the Company has physicallyverified certain fixed assets during the year and we are informed that no materialdiscrepancies were noticed on such verification. In our opinion this periodicity ofphysical verification is reasonable having regard to the size of the Company and thenature of its assets.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties asdisclosed in Note 9 to the financial statements are held in the name of the Company.

(ii) The inventory except goods in transit have been physically verified by theManagement during the year. In our opinion the frequency of such verification isreasonable. No discrepancies have been noticed on verification between the physical stocksand the book records.

(iii) In our opinion and according to information and explanations given to us theCompany has not granted any loans secured or unsecured to companies firms limitedliability partnerships or other parties covered in the register maintained under Section189 of the Act. Accordingly paragraph 3(iii) of the Order is not applicable to theCompany.

(iv) In our opinion and according to the information and explanations given to us theCompany has not granted any loan made any investments given any guarantee or providedany security under Sections 185 and 186 of the Act. Accordingly paragraph 3(iv) of theOrder is not applicable to the Company.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted deposits covered under the directives issued by the Reserve Bankof India under the provisions of Sections 73 to 76 or any other relevant provisions of theAct and the rules framed thereunder. Accordingly paragraph 3(v) of the Order is notapplicable to the Company.

(vi) According to the information and explanations given to us the Central Governmenthas not prescribed the maintenance of cost records under Section 148 (1) of the Act forany of the services provided by the Company. Accordingly paragraph 3(vi) of the Order isnot applicable to 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 2017 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 Duty of customs Sales tax/ Value added tax and Service tax which have notbeen 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 2017 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 Appellate Tribunal Customs Excise and Service Tax

(viii) In our opinion and according to the information and explanations given to usthe Company did not have any outstanding dues to bank outstanding debentures or borrowingfrom government during the year.

(ix) According to the information and explanations given to us the Company has notraised any money by way of initial public offer or further public offer (including debtinstruments) and term loans during the year. Accordingly paragraph 3(ix) of the Order isnot applicable to the Company.

(x) According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during thecourse of our audit.

(xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company as specified in Nidhi Rules 2014. Accordingly paragraph3(xii) of the Order is not applicable to the Company.

(xiii) In our opinion and according to the information and explanations given to us andbased on our examinations of the records of the Company transactions with the relatedparties are in compliance with Sections 177 and 188 of the Act where applicable. Thedetails of such related party transactions have been disclosed in the standalone financialstatements as required under Accounting Standard (AS) 18 Related Party Disclosuresspecified under Section 133 of the Act read with relevant rules issued thereunder.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly paragraph 3(xiv) of the Order is not applicable to the Company.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into any noncashtransactions with Directors or persons connected with them. Accordingly paragraph 3(xv)of the Order is not applicable to the Company.

(xvi) According to the information and explanations given to us the Company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934.Accordingly paragraph 3(xvi) of the Order is not applicable to the Company.

For B S R & Associates LLP
Chartered Accountants
Firm's Registration No: 116231W/W-100024
Shabbir Readymadewala
Mumbai Partner
8 May 2017 Membership No: 100060

"Annexure B" to the Independent Auditor's Report - 31 March 2017

Referred to in our report of even date Report on the Internal Financial Controls underClause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls over financial reporting of De NoraIndia Limited ("the Company") as of 31 March 2017 in conjunction with our auditof the financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to Company's Policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under Section 143 (10) of the Act to the extent applicable to an auditof internal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A Company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial control over financialreporting includes those policies and procedures that:

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorisations of Management and Directors of the Company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the Company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate. Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financials Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For B S R & Associates LLP
Chartered Accountants
Firm's Registration No: 116231W/W-100024
Shabbir Readymadewala
Mumbai Partner
8 May 2017 Membership No: 100060