You are here » Home » Companies » Company Overview » Deepak Nitrite Ltd

Deepak Nitrite Ltd.

BSE: 506401 Sector: Industrials
NSE: DEEPAKNTR ISIN Code: INE288B01029
BSE LIVE 15:44 | 05 Dec 90.55 -0.30
(-0.33%)
OPEN

90.50

HIGH

91.00

LOW

89.00

NSE LIVE 15:44 | 05 Dec 90.20 -0.80
(-0.88%)
OPEN

92.70

HIGH

92.70

LOW

88.60

OPEN 90.50
PREVIOUS CLOSE 90.85
VOLUME 18014
52-Week high 134.25
52-Week low 56.10
P/E 15.32
Mkt Cap.(Rs cr) 1053.10
Buy Price 90.55
Buy Qty 5.00
Sell Price 0.00
Sell Qty 0.00
OPEN 90.50
CLOSE 90.85
VOLUME 18014
52-Week high 134.25
52-Week low 56.10
P/E 15.32
Mkt Cap.(Rs cr) 1053.10
Buy Price 90.55
Buy Qty 5.00
Sell Price 0.00
Sell Qty 0.00

Deepak Nitrite Ltd. (DEEPAKNTR) - Auditors Report

Company auditors report

To the Members of Deepak Nitrite Limited Report on the Standalone Financial Statements

1. We have audited the accompanying standalone financial statements of Deepak NitriteLimited ("the Company") which comprise the balance sheet as at March 31 2016and the related statements of profit and loss and cash flow for the year then ended and asummary of the significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

2. The Company’s Board of Directors is responsible for the matters stated inSection 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these standalone financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting 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 (as amended). This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

Auditor’s 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 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.

5. 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.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the 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 control 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.

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 March 31 2016 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

9. 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 (the"Order") and on the basis of such checks of the books and records of theCompany as we considered appropriate and according to the information and explanationsgiven to us we give in the Annexure I a statement on the matters specified in paragraphs3 and 4 of the Order.

10. 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 purpose of our audit; b. In our opinionproper books of account as required by law have been kept by the Company so far as itappears from our examination of those books;

c. The Balance Sheet the Statement of Profit and Loss and Cash Flow dealt with by thisReport 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 (as amended);

e. On the basis of written representations received from the directors as on March 312016 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2016 from being appointed as a director in terms of Section 164(2) of theAct.

f. With respect to the adequacy of internal financial controls over financial reportingof the Company and the operating effectiveness of such controls refer to our separatereport in Annexure II.

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 (as amended) inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements Refer Note 33 and 34 to the financial statements.

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For B. K. Khare & Co.
Chartered Accountants
Firm’s Registration Number 105102W
Himanshu Chapsey
Mumbai Partner
May 9 2016 Membership Number: 105731

Annexure I to the AudItor’s report

Referred to in paragraph 9 of our report of even date on the standalone financialstatements of Deepak Nitrite Limited for the year ended March 31 2016

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

(ii) The Company has a rotational programme for verification of its fixed assets over aperiod of 3 years. In our opinion the frequency of verification is reasonable havingregard to the size of the Company and the nature of its assets. The fixed assets have notbeen physically verified by the Company during the year and hence it is not possible todetermine whether there are any discrepancies with respect to the same.

(iii) The title deeds of immovable properties are held in the name of the Company.

2. Inventories have been physically verified by management at reasonable intervalsduring the year. The discrepancies noticed on such verification were not material and havebeen adjusted in the books of account of the Company.

3. The Company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained under section 189 of the Act.Accordingly the provisions of para 3(iii) of the Order are not applicable to the Company.

4. The Company has not granted any loans or provided any guarantees or security to theparties covered under Section 185 and 186. According to the information and explanationsgiven to us and to the best of our knowledge the provisions of sections 185 and 186 havebeen complied with in respect of the investment made by the Company.

5. In our opinion and according to the information and explanations given to us and asdescribed in Note 10 to the financial statements the Company has in respect of thedeposits accepted by it complied with the directives issued by the Reserve Bank of Indiato the extent applicable and the provisions of Sections 73-76 of the Act read with theRules framed thereunder. According to the information and explanations given to us and tothe best of our knowledge and belief no order has been passed by the Company Law Board orthe National Company Law Tribunal or the RBI or any other court or tribunal which is to becomplied with by the Company.

6. As informed to us the maintenance of cost records has been prescribed by theCentral Government under section 148(1) of the Companies Act 2013 in respect of theactivities carried on by the Company. We have broadly reviewed the books of accountrelating to materials labour and other items of cost maintained by the Company pursuantto the Rules made by the Central Government for the maintenance of cost records and are ofthe opinion that prima facie the prescribed accounts and records have been maintained. Wehave not however made a detailed examination of the records with a view to determinewhether they are accurate or complete.

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 regular in depositing theundisputed statutory dues including provident fund employees’ state insuranceincome tax sales tax service tax duty of customs duty of excise value added tax cessand other material statutory dues as applicable with the appropriate authorities.According to the information and explanations given to us no undisputed amounts payable inrespect of such statutory dues are in arrears as on March 31 2016 for a period of morethan six months from the date they became payable.

(b) According to the information and explanations given to us dues of income-taxsales tax service tax excise duty customs duty and work contract tax which have notbeen deposited on account of any dispute are as follows:

Name of the Statue Nature of Dues Rs in Lacs Period to which the amount relates Forum where pending
Work Contract Tax Act of Maharashtra Work Contract Tax 11.65 1998-99 to 2004-05 Commissioner Works Contract Tax (Appeals)
Central Excise Act 1944 Excise Duty 1.28 April’11 to Oct’14 Assistant Commissioner Central Excise
Central Excise Act 1944 Excise Duty 10.34 Oct’10 to Nov’13 Commissioner Central Excise
Central Excise Act 1944 Excise Duty 206.79 July ‘98 to March ‘14 Central Excise & Service Tax Appellate Tribunal
Central Sales Tax Act Sales Tax 47.78 2005-06 2010-11 Additional Commissioner Sales Tax
and 2011-12
Mumbai Stamp Act Stamp Duty 22.85 Mar-10 Chief Controller of Revenue Authorities
Hyderabad Metropolitan Water Sewerage 11.13 2008-09 to 2013-14 High Court of Andhra Pradesh
Supply & Sewerage Act 1989 Cess

8. According to the records of the Company examined by us and the information andexplanations given to us the Company has not defaulted in repayment of loans orborrowings to any financial institution or bank or Government. The Company has not raisedany money via debentures.

9. The Company has not raised any moneys by way of initial public offer or furtherpublic offer during the year and hence the provisions of para 3(ix) of the Order are notapplicable to the Company. According to the information and explanations given to us andto the best of our knowledge and belief the money raised by way of term loans have beenapplied for the purposes for which these were raised.

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 neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by theManagement.

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. According to the information and explanations given to us the Company is not aNidhi Company and hence the provisions of para 3(xii) of the Order are not applicable tothe Company.

13. According to the information and explanations given to us the related partytransactions entered into by the Company are in accordance with the provisions of section177 and 188 of the Act.

14. According to the information and explanations given to us and to the best of ourknowledge and belief the placement of equity shares of the Company to QualifiedInstitutional Buyers during the year under is in in compliance with the requirements ofSection 42 of the Act. The amounts raised have been used for the purpose for which thesehave been raised and pending such utilisation have been deployed in liquid mutual funds asper permissible under the Placement Document issued by the Company at the time of theissue 15. According to the information and explanations given to us and to the best of ourknowledge and belief the Company has not entered into any non-cash transactions with itsdirectors or persons connected with them. Accordingly the provisions of para 3(xv) of theOrder are not applicable to the Company.

16. 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.

For B. K. Khare & Co.
Chartered Accountants
Firm’s Registration Number 105102W
Himanshu Chapsey
Mumbai Partner
May 9 2016 Membership Number: 105731

ANNEXURE II TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE STANDALONEFINANCIAL STATEMENTS OF DEEPAK NITRITE LIMITED

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 DeepakNitrite Limited ("the Company") as of March 31 2016 in conjunction with ouraudit of the standalone financial statements of the Company for 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatoperate effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the 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 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 judgement 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 controlssystem over financial reporting.

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 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

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 31 2016 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 B. K. Khare & Co.
Chartered Accountants
Firm’s Registration Number 105102W
Himanshu Chapsey
Mumbai Partner
May 9 2016 Membership Number: 105731

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard