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Deep Industries Ltd.

BSE: 532760 Sector: Others
NSE: DEEPIND ISIN Code: INE677H01012
BSE LIVE 15:40 | 06 Dec 251.60 1.65
(0.66%)
OPEN

251.00

HIGH

254.20

LOW

248.90

NSE LIVE 15:56 | 06 Dec 251.50 1.80
(0.72%)
OPEN

252.65

HIGH

253.90

LOW

248.55

OPEN 251.00
PREVIOUS CLOSE 249.95
VOLUME 7074
52-Week high 288.45
52-Week low 117.00
P/E 12.40
Mkt Cap.(Rs cr) 734.67
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 251.00
CLOSE 249.95
VOLUME 7074
52-Week high 288.45
52-Week low 117.00
P/E 12.40
Mkt Cap.(Rs cr) 734.67
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Deep Industries Ltd. (DEEPIND) - Auditors Report

Company auditors report

To

The Members

Deep Industries Limited.

(i) We have audited the accompanying standalone financial statements of DeepIndustries Limited ("the Company") which comprise the Balance Sheet as at 31stMarch 2016 and Profit and Loss Account and the Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory informationon that date annexed thereto.

(ii) 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 standalone financial statements that give 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 Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting fraud and other irregularities; selection and applicationof appropriate 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 ofaccounting records relevant to the preparation and presentation of the financialstatements that give true and fair view and are free from material misstatement whetherdue to fraud or error.

(iii) Our responsibility is to express an opinion on these standalone financialstatements based on our audit. We have taken into account the provisions of the Actaccounting and auditing standards and matters which are required to be included in theaudit report underthe provisions of the Act and the Rules made there under. We conductedour audit in accordance with the Standards on Auditing specified under Section 143(10) ofthe Act. Those Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statementsare free from material misstatement.

(iv) An audit involves performing procedures to obtain audit evidence about the amountsand 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 assessment theauditor considers internal financial control relevant to the Company's preparation andfair presentation of the financial statements in order to design audit procedures that areappropriate in the circumstances but not for the purpose of expressing an opinion onwhether the Company has in place adequate internal financial controls system overfinancial reporting and the operating effectiveness of such controls. An audit includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by the Company's Director as well as evaluating the overallpresentation of the financial statements.

(v) We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the standalone financial statements.

(vi) In our opinion and to the best of our information and according to theexplanations given to us the financial statements give the information required by theAct in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India

(a) in the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2016 ; and

(b) in the case of the Profit and Loss Account of the profit for the year ended onthat date ; and

(c) In the case of Cash Flow statement of the cash flows for the year ended on thatdate.

(vii) As required by the Companies (Auditor's report) Order 2015 ("the Order)issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we hereby provide the details as required in the paragraph 3 and 4of the said Order in Annexure to Independent Auditor's Report.

(vii) As required by section 143(3) of the Act we further report that:

1. We have sought and obtained all the information and explanations which to the bestour knowledge and belief were necessary for the purpose of our audit ;

2. In our opinion proper books of accounts as required by law have been kept by theCompany so far as appears from our examination of those books;

3. The Balance Sheet Statement of Profit & Loss Account and Cash Flow Statementdealt with by this report are in agreement with the books of account;

4. In our opinion the aforesaid standalone financial statements comply with applicableAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

5. On the basis of written representation received from the directors as on 31stMarch 2016 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in termsof sub-section (2) of section 164 of the Act;

6. 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

7. 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 ;

(a) The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements as referred to in Note 27 (E)(ii) to thestandalone financial statements.

(b) The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any and as required on long term contractsincluding derivative contracts.

(c) There has not been an occasion in case of the Company during the year under reportto transfer any sums to the Investor Education and Protection Fund. The question of delayin transferring such sums does not arise.

FOR AND ON BEHALF OF
JAYESH M. SHAH & CO.
Chartered Accountants
Firm Reg. no. 104173W
Place : Ahmedabad (JAYESH M. SHAH)
Date :19th May 2016 Proprietor
Mem. No. : 30638

ANNEXURE-A TO THE AUDITORS' REPORT

(Referred to in paragraph (vii) of the Auditors' Report of even date to the members ofDeep Industries Limited on the financial statements for the year ended 31stMarch 2016.)

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

(b) As explained to us a substantial portion of the fixed assets have been physicallyverified by the management during the year and no material discrepancies have been noticedon such verification.

(c) According to information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has an immovable properties whichdoes not require the title deeds in the name of the Company.

2. As per information and explanation given to us inventory of spares and consumableshas been physically verified by the management at the year end. On the basis of ourexamination of the inventory records produced before us in our opinion the Company ismaintaining proper records of inventory. The discrepancies noticed on physicalverification of inventory as compared to book records were not material and have beenproperly dealt with in books of accounts.

3. As per information and explanations given to us the Company has not granted anyloans secured or unsecured to Companies Firms Limited Liability Partnerships or otherparties covered in the register maintained u/s 189 of the Companies Act 2013.Consequently paragraph 3(iii)(a) 3(iii)(b) and 3(iii)(c) of the Order is not applicableto the Company.

4. According to information and explanations given to us there are no transactions ofloans investments guarantees and securities which attract provision of section 185 and186 of the Companies Act 2013 during the year under audit. Consequently the paragraph3(iv) of the Order is not applicable to the Company.

5. In our opinion and according to the information and explanations given to us theCompany has accepted Deposits which are under exemption category during the year andconsequently directives issued by Reserve Bank of India and the provisions of Section 73to 76 or any other relevant provision of the Companies Act and rules framed there underare not applicable to the Company. Consequently paragraph 3(v) of the Order is notapplicable to the Company.

6. We are informed that maintenance of cost records as prescribed by the CentralGovernment of India under subsection (1) of Section 148 of the Companies Act 2013 inrespect of the Company products are not applicable. Hence the provisions of Clause (vi)of paragraph 3 of the Order are not applicable to the Company.

7 (a.) According to the information and explanations given to us and the records of theCompany examined by us in our opinion the Company is generally regular in depositingundisputed statutory dues including provident fund investor education and protectionfund employees' state insurance income tax sales tax wealth tax service tax customduty excise duty cess and other material statutory dues to the extent applicable withthe appropriate authorities in India. However in case of delays in few instances the samehas been deposited along with interest due thereon. According to information andexplanations given to us no undisputed amounts payable in respect of provident fundincome tax sales tax value added tax duty of customs service tax cess and any othermaterial statutory dues were in arrears as at 31st March 2016 for a period ofmore than six months from the date they became payable.

(b.) According to the information and explanations given to us and the records of theCompany examined by us there are no dues of income tax wealth tax sales tax customduty excise duty and cess which have not been deposited on account of any dispute.However the particulars of dues as at 31st March 2016 which have not beendeposited on account of a dispute are as follows:

Name of Statute Nature of Dues Amount (' Lacs) Related Period From where the dispute is pending
Service tax Short payment of Service tax 96.36 F.Y 2006-07 to F.Y 2011-2012 CESTAT Ahmedabad
Service tax Short Payment of Service tax 49.91 FY 2012-13 to 30.09.2013 CESTAT Ahmedabad
Gujarat VAT Short Payment of Gujarat VAT 401.07 FY 2010-11 Gujarat VAT Tribunal

8. In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of loans or borrowings to financialinstitution/bank/government/debenture holders.

9. According to information and explanations given to us the Company has not raisedmoney by ways of initial public offer or further public offer (including debt instruments)during the year under audit. According to further information and explanations given tous the term loans raised during the year were applied for the purpose for which thosewere raised.

10. During the course of our examination of the books and records of the Companycarried out in accordance with the auditing standards generally accepted in India we haveneither come across any instance of fraud on or by the Company noticed or reported duringthe year nor have we been informed of such case by the management.

11. According to information and explanations given to us the managerial remunerationhas been paid/provided in accordance with requisites approvals mandated by the provisionsof section 197 read with Schedule-V to the Companies Act 2013.

12. In our opinion and according to information and explanations given to us theCompany is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable.

13. According to information and explanations given to us and based on our examinationsof the records of the Company transactions with the related parties are in compliancewith Sections 177 and 188 of the Act where applicable and details of such transactionshave been disclosed in the financial statements as required by the applicable accountingstandards.

14. According to information and explanations given to us and based on our examinationsof the records of the Company the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the year.Consequently paragraph-3(xiv) of the Order is not applicable to the Company.

15. According to information and explanations given to us and based on our examinationsof the records of the Company the Company has not entered into non-cash transactions withdirectors or persons connected with him. Accordingly paragraph 3(xv) of the Order is notapplicable.

16. The Company is not required to register under Section 45-IA of the Reserve Bank ofIndia Act 1934.

FOR AND ON BEHALF OF
JAYESH M. SHAH & CO.
Chartered Accountants
Firm Reg. no. 104173W
Place : Ahmedabad (JAYESH M. SHAH)
Date : 19th May 2016 Proprietor
Mem. No. : 30638

ANNEXURE-B TO THE INDEPENDENT AUDITORS' REPORT

(Referred to clause (6) of Paragraph (viii) of the Auditor's Report of even date to themembers of Deep Industries Limited on the financial statements for the year ended 31stMarch 2016)

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 DeepIndustries Limited ("the Company") as of March 312016 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancialcontrols based on internal control over financial reporting criteria establishedby the Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India (ICAI). These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe 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 ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a 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 March 312016 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 AND ON BEHALF OF
JAYESH M. SHAH & CO.
Chartered Accountants
Firm Reg. no. 104173W
Place : Ahmedabad (JAYESH M. SHAH)
Date : 19th May 2016 Proprietor
Mem. No. : 30638

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