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Deccan Cements Ltd.

BSE: 502137 Sector: Industrials
NSE: DECCANCE ISIN Code: INE583C01021
BSE LIVE 15:42 | 21 Sep 592.90 -7.00
(-1.17%)
OPEN

594.50

HIGH

595.45

LOW

588.00

NSE 15:42 | 21 Sep 593.25 -3.45
(-0.58%)
OPEN

599.00

HIGH

599.00

LOW

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OPEN 594.50
PREVIOUS CLOSE 599.90
VOLUME 1189
52-Week high 639.95
52-Week low 385.00
P/E 17.82
Mkt Cap.(Rs cr) 830
Buy Price 0.00
Buy Qty 0.00
Sell Price 592.90
Sell Qty 23.00
OPEN 594.50
CLOSE 599.90
VOLUME 1189
52-Week high 639.95
52-Week low 385.00
P/E 17.82
Mkt Cap.(Rs cr) 830
Buy Price 0.00
Buy Qty 0.00
Sell Price 592.90
Sell Qty 23.00

Deccan Cements Ltd. (DECCANCE) - Auditors Report

Company auditors report

To

The Members of

Deccan Cements Limited

Report on the Financial Statements

We have audited the accompanying financial statements of Deccan Cements Limited ("theCompany") which comprise the Balance Sheet as at March 31 2017 the Statement ofProfit and Loss the Cash Flow Statement for the year then ended and a summary of thesignificant accounting policies and other explanatory information (hereinafter referred toas "the financial statements").

Management’s Responsibility for the Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

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 there under. We conducted our audit in accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.

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 ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial controls relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company’s Directors as well as evaluating theoverall 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.

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 March31 2017 and its profit 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 ("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’ a statement on the mattersspecified in paragraphs 3 and 4 of the Order.

2. As required by section 143(3) of the Act we report that: a. We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purpose of our audit; b. In our opinion proper books ofaccount as required by law have been kept by the Company so far as appears from ourexamination of those books;

c. The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt by this Report are in agreement with the books of account; d. In our opinion theaforesaid financial statements comply with the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014;

e. On the basis of written representations received from the directors as on March 312017 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of Section 164 (2) ofthe Act.

f. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in ‘Annexure B’; and g. With respect to the other matters to beincluded in the Auditor’s Report in accordance with Rule 11 of the Companies (Auditand Auditor’s) Rules 2014 in our opinion and to the best of our information andaccording to the explanations given to us:

i. the Company has disclosed the impact of all pending litigations on its financialposition in its financial statements - Refer Note 29 to the financial statements;

ii. the Company does not have any long term contracts including derivative contractsfor which there are any material foreseeable losses.

iii. there has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company. iv. the Company has providedrequisite disclosures in financial statements as to the holdings as well as dealings inSpecified Bank Notes during the period from 08th November 2016 to 30thDecember 2016 and these are in accordance with the books of account maintained by theCompany. Refer Note 40 to the financial statements.

For M. Bhaskara Rao & Co.
Chartered Accountants
Firm Registration No. 000459S
V K Muralidhar
Place : Hyderabad Partner
Date : 19.05.2017 Membership No. 201570

Annexure A to the Independent Auditors’ Report

(Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements’ section of our report of even date to the members of Deccan CementsLimited) (i) In respect of its Fixed Assets:

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.

(b) According to the information and explanations given to us the fixed assets havebeen physically verified during the year by the Management in accordance with a programmeof verification which in our opinion provides for physical verification of all thefixed assets at reasonable intervals having regard to the size of the Company and thenature of their assets The discrepancies noticed on such verification were not materialand have been properly dealt with in the books of account.

(c) According to the information and explanations given to us the title deeds of theimmovable properties are held in the name of the company.

(ii) The inventory (excluding stocks with third parties) have been physically verifiedby the Management during the year. In respect of inventory lying with third parties thesehave substantially been confirmed by them. In our opinion the frequency of verificationis reasonable. The discrepancies noticed on physical verification of inventory as comparedto book records were not material in relation to the operations of the Company and thesame have been properly dealt with in the books of account.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms limited liability partnershipsor other parties covered in the register maintained under section 189 of the CompaniesAct 2013 and accordingly paragraph 3(iii) of the Order are not applicable at present.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made.

(v) In our opinion and according to the information and explanation given to us theCompany has complied with the provisions of Section 73 and Section 74 of the Act and therules framed there under and applicable directives issued by Reserve Bank of India withregard to deposits accepted.

(vi) On the basis of records produced to us we are of the opinion that prima facie theCost Records and Accounts prescribed by the Central Government under Section 148(1) of theAct have been maintained. However we are not required to and have not carried out anydetailed examination of such Records and Accounts.

(vii) According to the information and explanations given to us and according to thebooks and records as produced and examined by us in accordance with the generally acceptedauditing practices in India in respect of statutory dues:

(a) The Company is regular in depositing undisputed statutory dues including providentfund employees’ state insurance income tax sales-tax service tax duty of customduty of excise value added tax cess and any other statutory dues applicable to it withthe appropriate authorities during the year. There were no undisputed amounts payable inrespect of provident fund employees’ state insurance income tax sales tax servicetax duty of custom duty of excise value added tax cess and any other statutory dueswhich were in arrears as at March 31 2017 for a period of more than six months from thedate they became payable.

(b) According to the information and explanations given to us there are no dues ofincome tax sales tax duty of custom duty of excise or value added tax which have notbeen deposited as on March 31 2017 on account of disputes except :

Name of the Statue Nature of Dues Assessment year to which the amount relates Rsin Lakh Forum where dispute is pending
Income Tax Act 1961 Disallowance of debenture issue expenses and bad debts. 1997-98 6.46 Income Tax appellate Tribunal Hyderabad. High Court of Andhra
Sales Tax on packing material 1993-94 11.52 Pradesh
Andhra Pradesh General Sales tax demand for the deemed excess production based on energy audit 1999-00 & 2000-01 85.68 High Court of Andhra Pradesh Deputy
Sales Tax Act/ VAT Act. Sales Tax Demand for interest 137.24 Commissioner (Appeals) Hyderabad
Sales Tax Demand – recovery of excess paid interest. 2002-03 to 2004 - 05 51.61 High Court of Andhra Pradesh
AP Electricity Demand on water consumed for generation of power 1997-2008 723.29 High Court of Andhra
Duty Amendment Act 2003 Dispute on duty on electricity generated and consumed 2003-04 to 2008-09 316.23 High Court of Andhra Pradesh
Demand towards District Mineral Foundation Contribution 12th January 2015 to 09th February 2016 391.50 Stay given by Honorable High Court of Andhra Pradesh and Telangana

(viii) According to the information and explanations given to us the company has notdefaulted in repayment of dues to the financial institutions or the banks during the year.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3 (ix) of the Order is not applicable.

(x) During the course of our examination of the books and other records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe year nor have we been informed of such case by the management.

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company managerial remuneration has been paid orprovided during the year in accordance with the requisite approvals mandated by theprovisions of Section 197 read with Schedule V to the Act. (xii) According to theinformation and explanations given to us and based on our examination of the records theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(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.

(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 non-cashtransactions with directors or persons connected with him during the year. (xvi) TheCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.

For M. Bhaskara Rao & Co.
Chartered Accountants
Firm Registration No. 000459S
V K Muralidhar
Place : Hyderabad Partner
Date : 19.05.2017 Membership No. 201570

Annexure B to the Independent Auditors’ Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of DeccanCements Limited ("the Company") as of March 31 2017 in conjunction with ouraudit of 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 safeguardingof its 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 Companies Act 2013.

Auditors’ 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 Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia.

Those Standards and the Guidance Note require that we comply with ethical requirementsand plan and perform the audit to obtain reasonable assurance about whether adequateinternal financial controls over financial reporting was established and maintained and ifsuch controls operated effectively in all material respects. Our audit involves performingprocedures to obtain audit evidence about the adequacy of the internal financial controlssystem over financial reporting and their operating effectiveness.

Our audit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor’s judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company’s internal financial controls system over financialreporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting 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 havea 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 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 Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For M. Bhaskara Rao & Co.
Chartered Accountants
Firm Registration No. 000459S
V K Muralidhar
Place : Hyderabad Partner
Date : 19.05.2017 Membership No. 201570