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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 | 15 Dec 396.80 9.40
(2.43%)
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384.00

HIGH

406.50

LOW

384.00

NSE 15:59 | 15 Dec 395.50 8.90
(2.30%)
OPEN

397.80

HIGH

405.90

LOW

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OPEN 384.00
PREVIOUS CLOSE 387.40
VOLUME 73524
52-Week high 499.80
52-Week low 165.00
P/E 27.90
Mkt Cap.(Rs cr) 3,500
Buy Price 0.00
Buy Qty 0.00
Sell Price 396.00
Sell Qty 150.00
OPEN 384.00
CLOSE 387.40
VOLUME 73524
52-Week high 499.80
52-Week low 165.00
P/E 27.90
Mkt Cap.(Rs cr) 3,500
Buy Price 0.00
Buy Qty 0.00
Sell Price 396.00
Sell Qty 150.00

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 Ind AS Financial Statements

1. We have audited the accompanying Standalone Ind AS financial statements of DeepakFertilisers And Petrochemicals Corporation Limited ("the Company")which comprise the Balance Sheet as at 31st March 2017 the Statement ofProfit and Loss (including Other Comprehensive Income) the Statement of Cash Flows andthe Statement of Changes in Equity for the year then ended and a summary of thesignificant accounting policies and other explanatory information (hereinafter referred toas "Standalone Ind AS financial statements")

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 Ind AS financial statements to give a true and fair view of the financialposition financial performance including Other Comprehensive Income the Statement ofChanges in Equity and Cash Flows of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)specified under Section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the 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.

Auditors' Responsibility

3. Our responsibility is to express an opinion on these Standalone Ind AS financialstatements based on our audit.

4. 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.

5. We conducted our audit of Standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act and other applicableauthoritative pronouncements issued by the Institute of Chartered Accountants of India.Those Standards and pronouncements require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the financialstatements are free from material misstatement.

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 Standalone Ind AS 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 Ind AS financial statements.

Opinion

8. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including the Ind AS of thestate of affairs of the

Company as at 31st March 2017 and its profit total comprehensive incomeits cash flows and changes in equity for the year ended on that date.

Emphasis of Matter

9. We draw attention to Note no. 41 42 and 43 to the Standalone Ind AS financialstatements which describe the uncertainties related to the outcome of supply of naturalgas related matters and claims by a vendor. Our opinion is not qualified in respect ofthis 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 sub section (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 including Other ComprehensiveIncome the Cash Flow Statement and the Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account;

(d) In our opinion the aforesaid Standalone Ind AS financial statements comply withAccounting Standards specified under Section 133 of the Act;

(e) In our opinion in the event of materialization 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 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 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 as amended inour opinion and to the best of our knowledge and belief and according to the informationand explanations given to us:

i. The Company has disclosed the impact of pending litigations as at 31stMarch 2017 on its financial position in its Standalone Ind AS financial statements.

ii. The Company did not have any long-term contracts including derivative contracts asat 31st March 2017 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 2017.

iv. The Company has provided requisite disclosures in the Standalone Ind AS financialstatements as to the holding of Specified Bank Notes on 8th November 2016 and30th December 2016 as well as dealings in Specified Bank Notes during theperiod from 8th November 2016 to 30th December 2016. Based onaudit procedures and the representation provided to us by the management we report thatthe disclosures are in accordance with books of account maintained by the Company and asproduced to us by the Management.

FOR B.K.KHARE & CO.
Chartered Accountants
Firm Registration Number: 105102W
RAVI KAPOOR
Mumbai Partner
Date: 30th June 2017 Membership Number: 040404

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

The Annexure referred to in the Independent Auditor's Report to the members of theCompany on Standalone Ind AS financial statements for the year ended 31stMarch 2017 we report that:

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

b The fixed assets are physically verified by the Management according to a phasedprogram 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 Standalone Ind AS financialstatements 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 accounts. 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. Therefore the provisions of Clause 3 (iii) (a) (iii) band (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 Section 73 to 76 ofthe 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. According to the information and explanations given to us in respect of statutorydues:

a. According to the records of the Company examined by us and information andexplanations given to us the Company is generally regular in depositing undisputedstatutory dues including Provident Fund Employees' State Insurance Income tax Salestax Service tax Customs duty Excise duty Value Added Tax (VAT) 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 Income Tax Sales Tax Service Tax Customs DutyExcise Duty Value added Tax and Cess which have not been deposited as on 31stMarch 2017 on account of disputes are as under:

Nature of the Statute Amount of (Rs. in Lacs) Forum where dispute is pending Period to which Amount relates
2167.33 Income Tax (Appeals) Mumbai Assessment Year 2009-10 to 2013-14.
The Income Tax Act 1961
33.22 Supreme Court (SC) Assessment Year 2005-06
The Bombay Stamp Act 1958 26.15 The Chief Revenue Authority Pune Financial Year 1995-96
The Maharashtra Sales Tax on Transfer of Right to User any Goods for any purpose 0.24 Dy. Commissioner of Sales Tax Pune Assessment Year 1990-91
119.55 Bombay High Court Financial Years 2002-03 to 2007-08
628.05 Central Excise & Service Tax Financial Years 2005-06 to 2010-11
Appellate Tribunal Mumbai
34.81 Appeals with Additional Financial Years 2015-16 and to 2016-17
The Central Excise Act 1944 Commissioner
278.93 Supreme Court Financial Years 2008-09 and to 2009-10
1.92 Appeals with Assistant commissioner Financial Years 2015-16 and to 2016-17
29.27 Appeals with commissioner Financial Years 2014-15 and 2015-16
1906.78 Central Excise & Service Tax Appellate Tribunal Mumbai Financial Years 2007-08 to 2011-12
15.06 Dy. Commissioner (Service Tax) Mumbai Financial Years 1999-00 and 2003-04
Finance Act 1994 (Service Tax)
69.20 Commissioner of Appeals (Service Tax) Financial Years 2006-07 2007-08 and 2009-10
15.91 Joint Commissioner (Service Tax) Mumbai Financial Years 2004-05 and 2005-06
The Bombay Sales Tax Act 1959 71.55 Commissioner of Sales Tax (Appeals) Pune Financial Year 2004-05
The Maharashtra Value Added Tax Act 2002 306.84 Commissioner of Sales Tax (Appeals) Pune Financial Years 2005-06 and 2011-12
2242.76 Commissioner of Sales Tax (Appeals) Pune Financial Year from 2007-08 To 2016-17
The Central Sales Tax Act 1956
741.90 Karnataka High Court Financial Years 2005-06 to 2009-10
Entry Tax 3272.40 Assessment order Financial Years 2012-13 to 2015-16
Custom Tariff Act 9347.27 Deputy Commissioner of Customs (Preventive) Alibag Division Marine& Preventive Wing Mumbai Financial Year 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 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 no instance of fraud by theCompany or material fraud on the Company by its officers or employees was noticed orreported to us by the management during 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 hence the provisions of Clause 3(xii) ofthe order are not applicable to the company.

13. In our opinion and according to the information and explanation given to us theCompany is in compliance with the provisions of Section 177 and section 188 of the Actwhere applicable for all the transactions with related parties and the details of relatedparty transactions have been disclosed in the Standalone Ind AS financial statements asrequired by applicable Indian Accounting 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 them. 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 arenot applicable to the Company.

FOR B.K.KHARE & CO.
Chartered Accountants
Firm Registration Number: 105102W
RAVI KAPOOR
Mumbai Partner
Date: 30th June 2017 Membership Number: 040404

Annexure-II to the Independent Auditors' Report referred to in our report of even date:

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 Standalone IndAS financial statements for the year ended 31st March 2017. Report on theInternal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of theCompanies Act 2013 ("the Act")

1. We have audited the Internal Financial Controls over financial reporting of DeepakFertilisers And Petrochemicals Corporation Limited ("the Company") as of 31stMarch 2017 in conjunction with our audit of the Standalone Ind AS financial statements ofthe Company 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').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.

Auditors' Responsibility

3. Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting on our audit. We conducted our audit in accordance withthe Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the"Guidance Note") and the Standards on Auditing issued by ICAI and prescribedunder section 143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal 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.

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 policiesand procedures that (1) pertain to themaintenance of records that in reasonable detailaccurately 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 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

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 2017based 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
RAVI KAPOOR
Mumbai Partner
Date: 30th June 2017 Membership Number: 040404