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Deepak Fertilizers & Petrochemicals Corp Ltd.

BSE: 500645 Sector: Agri and agri inputs
NSE: DEEPAKFERT ISIN Code: INE501A01019
BSE LIVE 15:40 | 02 Dec 188.10 -4.10
(-2.13%)
OPEN

191.00

HIGH

191.00

LOW

185.50

NSE LIVE 15:30 | 02 Dec 187.95 -3.20
(-1.67%)
OPEN

190.90

HIGH

190.90

LOW

185.00

OPEN 191.00
PREVIOUS CLOSE 192.20
VOLUME 8117
52-Week high 253.45
52-Week low 128.15
P/E 14.94
Mkt Cap.(Rs cr) 1659.04
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 191.00
CLOSE 192.20
VOLUME 8117
52-Week high 253.45
52-Week low 128.15
P/E 14.94
Mkt Cap.(Rs cr) 1659.04
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Deepak Fertilizers & Petrochemicals Corp Ltd. (DEEPAKFERT) - Auditors Report

Company auditors report

To the Members of

DEEPAK FERTILISERS AND PETROCHEMICALS CORPORATION LIMITED

Report on the Standalone Financial Statements

1. We have audited the accompanying standalone financial statements of DeepakFertilisers And Petrochemicals Corporation Limited ("the Company") whichcomprise the Balance Sheet as at 31st March 2016 the Statement of Profit andLoss and the Cash Flow Statement for the year then ended and a summary of the significantaccounting policies and other explanatory information.

Management's Responsibility for the Standalone Financial Statements

2. 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 to 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 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 of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors' Responsibility

3. Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

4. We have taken into account the provisions of the Act and the Rules made thereunderincluding the accounting standards and matters which are required to be included in theaudit report.

5. We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India. Those Standards and pronouncements requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditors' 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.

7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Opinion

8. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2016 and its profit and its cash flows for the year ended onthat date.

Emphasis of Matter

9. We draw attention to Note 37b(i) and (ii) to the financial statements which describethe uncertainty related to the outcome of supply of natural gas and subsidy relatedmatters. Our opinion is not qualified in respect of this matter.

Report on Other Legal and Regulatory Requirements

10. As required by 'the Companies (Auditor's Report) Order 2016' issued by theCentral Government of India in terms of subsection (11) of section 143 of the Act(hereinafter referred to as the "Order") and on the basis of such checks of thebooks and records of the Company as we considered appropriate and according to theinformation and explanations given to us we give in the Annexure I a statement on thematters specified in paragraphs 3 and 4 of the Order.

11. 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 standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

(e) In our opinion in the event of materialisation of contingent liability referred inparagraph 9 under the Emphasis of Matter paragraph the functioning of the Company'sbusiness may have an adverse impact.

(f) On the basis of the written representations received from the directors as on 31stMarch 2016 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 Section 164 (2) of the Act;

(g) 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 II;

(h) With respect to the other matters to be included in the Auditors' 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 as at 31stMarch 2016 on its financial position in its standalone financial statements - Refer Note37;

ii. The Company did not have any long-term contracts including derivative contracts asat 31stMarch 2016 for which there were 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 during the year ended 31stMarch 2016.

FOR B.K. KHARE & CO.
Chartered Accountants
Firm Registration Number: 105102W
NARESH KUMAR KATARIA
Mumbai Partner
Dated 26th May 2016 Membership Number: 037825

Annexure I to the Auditors' Report referred to in our report of even date:

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

b) The fixed assets are physically verified by the Management according to a phasedprogramme designed to cover all the items over a period of three years which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. As informed to us no material discrepancies as compared to book records werenoticed on assets verified during the year.

c) The title deeds of immovable properties as disclosed in Note 11 on fixed assets tothe financial statements are held in the name of the Company.

2. The physical verification of inventory has been conducted at reasonable intervals bythe Management during the year. In respect of inventory lying with third parties thesehave substantially been confirmed by them. The discrepancies noticed on physicalverification of inventory as compared to book records been appropriately dealt with in thebooks of account. In our opinion the frequency of verification is reasonable.

3. The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained underSection 189 of the Companies Act 2013. Therefore the provisions of Clause 3 (iii)(a)(iii) b and (iii) c of the said Order are not applicable to the Company.

4. In our opinion and according to the information and explanations given to usprovisions of section 185 and 186 of the Act in respect of loans and advances giveninvestments made and guarantees and securities given to parties covered under therespective sections have been complied with by the Company.

5. The Company has not accepted any deposits within the meaning of Sections 73 74 75and 76 of the Companies Act 2013 and the rules framed thereunder to the extent notified.

6. We have broadly reviewed the books of account maintained by the Company in respectof products where pursuant to the rules made by the Central Government of India themaintenance of cost records has been prescribed under sub-section (1) of Section 148 ofthe Act and are of the opinion that prima facie the prescribed accounts and recordshave been made and maintained. We have not however made a detailed examination of therecords with a view to determine whether they are accurate or complete.

7. a) According to the records of the Company examined by us and information andexplanations given to us the Company is regular in depositing undisputed statutory duesincluding Provident Fund Employees' State Insurance Income tax Sales tax Value AddedTax (VAT) Service tax Customs duty Excise duty Value Added Tax Cess and otherapplicable statutory dues with the appropriate authorities during the year.

There are no arrears of outstanding undisputed statutory dues as at the last day of thefinancial year concerned for a period of more than six months from the date they becomepayable.

b) According to the information and explanations given to us and records of the Companyexamined by us particulars of dues of Sales Tax Value Added Tax (VAT) Customs DutyExcise Duty and Cess which have not been deposited on account of disputes are as under:

Nature of the Statute Amount in (Rs. in Lacs) Forum where dispute is pending Period to which Amount relates
The Income Tax Act1961 115.35 Income Tax Appellate Tribunal Assessment Years 2009-10 2010-11 and 2012-13.
The Income Tax Act1961 33.22 Supreme Court Assessment Year 2005-06
The Bombay Stamp Act 1958 26.15 The Chief Revenue Authority Pune Financial Year 1995-96
The Central Excise Act 1944 119.55 Bombay High Court Financial Years 2000-01 to 2007-08
The Central Excise Act1944 644.68 Central Excise & Service Tax Appellate Tribunal Mumbai Financial Years 2000-01 to 2010-11
The Central Excise Act1944 4.59 Commissioner Appeals (Excise) Raigad Financial Year 2013-14
The Central Excise Act1944 3.38 Assistant Commissioner of Central Excise Kalamboli Division Financial Years 2014-15 and 2015-16
The Central Excise Act1944 278.93 Supreme Court Financial Years 2008-09 and 2009-10
Finance Act 1994 (Service Tax) 25.91 Central Excise & Service Tax Appellate Tribunal Mumbai Financial Years 2008-09 and 2009-10
Finance Act 1994 (Service Tax) 15.06 Dy. Commissioner (Service Tax) Mumbai Financial Years 1999-2000 2000-01 and 2003-04
Finance Act 1994 (Service Tax) 1880.87 Central Excise & Service Tax Appellate Tribunal Mumbai Financial Years 2007-08 to 2011-12
Finance Act 1994 (Service Tax) 69.20 Commissioner of Appeals (Service Tax) Financial Years 2006-07 2007-08 and 2009-10
Finance Act 1994 (Service Tax) 15.91 Joint Commissioner (Service Tax) Mumbai Financial Years 2004-05 and 2005-06
The Maharashtra Sales Tax on Transfer of Right to Use any Goods for any purpose. 0.24 Dy. Commissioner of Sales Tax Pune Assessment Year 1990-91
The Bombay Sales Tax Act1959 71.55 Commissioner of Sales Tax (Appeals) Pune Financial Year 2004-05
The Central Sales Tax Act1956 2242.76 Commissioner of Sales Tax (Appeals) Pune Financial Years 2004-05 2005-06 2006-07 2009-102010-11 and 2011-12
The Central Sales Tax Act1956 741.9 Karnataka High Court Financial Year 2005 - 06 to 2009-10
The Maharashtra Value Added Tax Act 2002 306.84 Commissioner of Sales Tax (Appeals) Pune Financial Years 2005-06 and 2011-12
Custom Tariff Act 9347.27 Deputy Commissioner of Customs (Preventive) Alibag Division Marine & Preventive Wing Mumbai Financial Years 2005-06 to 2009-10

8. Based on the records examined by us and according to the information andexplanations given to us the Company has not defaulted in repayment of dues to anyfinancial institution or bank or Government or debenture holders as at the Balance Sheetdate.

9. Based on the records examined by us and according to the information andexplanations given to us during the year term loans were applied for the purpose forwhich the loans were obtained. According to the information and explanations given by themanagement the Company has not raised any money by way of initial public offer / furtherpublic offer.

10. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have not come across anyinstances of frauds by the Company or any material fraud on the Company by its officers oremployees nor have any instances of material fraud been reported to us by the managementduring the year.

11. The Company has paid/ provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V to theAct.

12. As the Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it the said provisions of the Order are not applicable to the Company.

13. The Company has entered into transactions with related parties in compliance withthe provisions of Section 177 and Section 188 of the Act. The details of related partytransactions have been disclosed in the financial statements as required by applicableAccounting Standards.

14. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review. Accordingly theClause 3(xiv) of the Order is not applicable to the Company.

15. The Company has not entered into any non-cash transactions with its directors orpersons connected with him. Accordingly the Clause 3(xv) of the Order is not applicableto the Company.

16. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of Clause 3(xvi) of the Order are notapplicable to the Company.

FOR B.K. KHARE & CO.
Chartered Accountants
Firm Registration Number: 105102W
NARESH KUMAR KATARIA
Mumbai Partner
Dated 26th May 2016 Membership Number: 037825

Annexure II to Independent Auditors' Report

Referred to in paragraph 11 (g) of the Independent Auditors' Report of even date to themembers of Deepak Fertilisers And Petrochemicals Corporation Limited on the standalonefinancial statements for the year ended 31st March 2016.

Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section143 of the Act

1. We have audited the internal financial controls over financial reporting of DeepakFertilisers And Petrochemicals Corporation Limited ("the Company") as of 31stMarch 2016 in conjunction with our audit of the standalone financial statements of theCompany for the year ended on that date.

Management's Responsibility for Internal Financial Controls

2. 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). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

Auditors' Responsibility

3. 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 deemed to be prescribedunder Section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the 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.

5. 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

6. 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 themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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

7. 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

8. 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 31st March 2016based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

FOR B.K. KHARE & CO.
Chartered Accountants
Firm Registration Number: 105102W
NARESH KUMAR KATARIA
Mumbai Partner
Dated 26th May 2016 Membership Number: 037825

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