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Delta Corp Ltd.

BSE: 532848 Sector: Others
NSE: DELTACORP ISIN Code: INE124G01033
BSE LIVE 15:56 | 14 Dec 247.25 0.45
(0.18%)
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247.00

HIGH

249.25

LOW

244.20

NSE 15:49 | 14 Dec 247.40 0.50
(0.20%)
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247.95

HIGH

249.65

LOW

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OPEN 247.00
PREVIOUS CLOSE 246.80
VOLUME 160196
52-Week high 291.35
52-Week low 94.85
P/E 115.00
Mkt Cap.(Rs cr) 6,607
Buy Price 0.00
Buy Qty 0.00
Sell Price 246.90
Sell Qty 974.00
OPEN 247.00
CLOSE 246.80
VOLUME 160196
52-Week high 291.35
52-Week low 94.85
P/E 115.00
Mkt Cap.(Rs cr) 6,607
Buy Price 0.00
Buy Qty 0.00
Sell Price 246.90
Sell Qty 974.00

Delta Corp Ltd. (DELTACORP) - Auditors Report

Company auditors report

Independent Auditor's Report To the Members of Delta Corp Limited

Report on the Standalone Financial Statements

1. We have audited the accompanying standalone financial statements of Delta CorpLimited (‘the Company') which comprise the Balance Sheet as at 31stMarch 2017 the Statement of Profit and Loss (including Other Comprehensive Income) theCash Flow Statement and the Statement of Changes in Equity for the year then ended and asummary of the significant accounting 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 that give a true and fair view of the state ofaffairs (financial position) profit or loss (financial performance including othercomprehensive income) cash flows and changes in equity of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (‘Ind AS') specified under Section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities; selection and application of appropriate accounting policies;making judgments and estimates that are reasonable and prudent; and design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that give a true andfair view and are free from material 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 whetherthese standalone financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the standalone financial statements. The procedures selected dependon the auditor's judgment including the assessment of the risks of material misstatementof the financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial controls relevant to the Company'spreparation of the standalone financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the standalone financial statements.

7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on these 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 including Ind AS specified under Section133 of the Act of the state of affairs (financial position) of the Company as at 31stMarch 2017 and its profit (financial performance including other comprehensive income)its cash flows and the changes in equity for the year ended on that date

Other Matter(s)

9. The comparative financial information for the year ended 31st March 2016and the transition date opening balance sheet as at 1st April 2015 prepared inaccordance with Ind AS included in these standalone financial statements are based on thepreviously issued standalone financial statements for the year ended 31st March2016 and 31st March 2015 respectively prepared in accordance with AccountingStandards prescribed under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014 which were audited by the predecessor auditor whose reports dated25 April 2016 and 17 April 2015 respectively expressed a qualified opinion on thestandalone financial statements for the year ended 31st March 2015 and anunmodified opinion on the standalone financial statements for the year ended 31stMarch 2016 and have been adjusted for the differences in the accounting principlesadopted by the Company on transition to Ind AS which have been audited by us. Our opinionis not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

10. As required by the Companies (Auditor's Report) Order 2016 (‘the Order')issued by the Central Government of India in terms of Section 143(11) of the Act we givein the Annexure A a statement on the matters specified in paragraphs 3 and 4 of the Order.

11. Further to our comments in Annexure A as required by Section 143(3) of the Act wereport that:

a) we have sought and except for the possible effect(s) of the matter described inparagraph g(iv) of Report on Other Legal and Regulatory Requirements below obtained allthe information and explanations which to the best of our knowledge and belief werenecessary for the purpose 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 standalone financial statements dealt with by this report are in agreement withthe books of account;

d) in our opinion the aforesaid standalone financial statements comply with Ind ASspecified under Section 133 of the Act;

e) on the basis of the written representations received from the directors and taken onrecord by the Board of Directors none of the directors is disqualified as on 31stMarch 2017 from being appointed as a director in terms of Section 164(2) of the Act;

f) we have also audited the internal financial controls over financial reporting(IFCoFR) of the Company as on 31st March 2017 in conjunction with our audit ofthe standalone financial statements of the Company for the year ended on that date and ourreport dated 30 May 2017 as per Annexure B expressed an unmodified opinion;

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 as detailed in Note 33 to the standalone financial statements hasdisclosed the impact of pending litigations on its financial position;

ii. the company did not have any long term contracts including derivative contract forwhich 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;

iv. The Company has provided disclosures in note 52 to the financial statementsregarding holdings as well as dealings in specified bank notes during the period from 8thNovember 2016 to 30th December 2016. Based on the audit procedures performedand taking into consideration the information and explanations given to us in ouropinion the total receipts total payments and total amount deposited in banks are inaccordance with the books of account maintained by the Company. However in the absence ofsufficient appropriate audit evidence we are unable to comment upon the appropriatenessof classification between specified bank notes and other denomination notes of‘permitted receipts'/‘non-permitted receipts' and ‘permittedpayments'/‘non-permitted payments.

For Walker Chandiok & Co LLP

Chartered Accountants

Firm's Registration No.: 001076N/N500013

per Khushroo B. Panthaky

Partner

Membership No.: 42423

Place: Mumbai

Date: 30th May 2017

Based on the audit procedures performed for the purpose of reporting a true and fairview on the standalone financial statements of the Company and taking into considerationthe information and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit and to the best of our knowledge and beliefwe report that:

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

(b) The fixed assets have been physically verified by the management during the yearand no material discrepancies were noticed on such verification. In our opinion thefrequency of verification of the fixed assets is reasonable having regard to the size ofthe Company and the nature of its assets.

(c) The title deeds of all the immovable properties (which are included under the head‘Property plant and equipment') are held in the name of the Company.

(ii) In our opinion the management has conducted physical verification of inventory atreasonable intervals during the year and no material discrepancies between physicalinventory and book records were noticed on physical verification .

(iii) The Company has granted unsecured loans to company covered in the registermaintained under Section 189 of the Act; and with respect to the same:

(a) In our opinion the terms and conditions of grant of such loans are not prima facieprejudicial to the company's interest except the terms and conditions of interest freeunsecured loan granted by the company to one party amounting to Rs. 2903 Lakhs (year-endbalance Rs. 20213.28 Lakhs) which is prejudicial to the company's interest on account ofthe fact that the loan have been granted interest free which is significantly lower thanthe cost of funds to the company and also lower than the prevailing yield of governmentsecurity close to the tenor of the loan.

(b) the schedule of repayment of principal and interest (where applicable) has beenstipulated wherein the principal and interest amounts are repayable on demand and sincethe repayment of such loans has not been demanded in our opinion repayment of theprincipal and interest amount is regular;

(c) there is no overdue amount in respect of loans granted to such companies .

(iv) In our opinion the Company has complied with the provisions of sections 185 ofthe Act. Further the Company is exempt from Section 186 accordingly the provisions ofclause 3(iv) of the Order relating to Section 186 is not applicable .

(v) In our opinion the Company has not accepted any deposits within the meaning ofSections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (asamended). Accordingly the provisions of clause 3(v) of the Order are not applicable.

(vi) The Central Government has not specified maintenance of cost records under sub -section (1) of Section 148 of the Act in respect of Company's products/ services.Accordingly the provisions of clause 3(vi) of the Order are not applicable.

(vii) (a) The Company is regular in depositing undisputed statutory dues includingprovident fund employees' state insurance income -tax sales-tax service tax duty ofcustoms duty of excise value added tax cess and other material statutory dues asapplicable to the appropriate authorities. Further no undisputed amounts payable inrespect thereof were outstanding at the year end for a period of more than six months fromthe date they become payable.

(b) The dues outstanding in respect of income -tax sales-tax service-tax duty ofcustoms duty of excise and value added tax on account of any dispute are as follows :

Statement of Disputed Dues

Name of the statute Nature of dues Amount Amount paid under Protest Period to which the amount relates Forum where dispute is pending Remarks if any
Income Tax Act1961 Income Tax Rs. 146.22 Lakhs Nil FY 2006-07 CIT Appeals
Custom Act 1962 Custom duty Rs. 1844.75 Lakhs Rs. 716.78 Lakhs (Additional bond of Rs. 3580.74 Lakhs) FY 2010-11 CESTAT Bangalore

(viii) The Company has not defaulted in repayment of loans or borrowings to any bank orfinancial institution or government during the year. The Company did not have anyoutstanding debentures during the year.

(ix) The Company did not raise moneys by way of initial public offer or further publicoffer (including debt instruments). In our opinion the term loans were applied for thepurposes for which the loans were obtained.

(x) No fraud by the Company or on the company by its officers or employees has beennoticed or reported during the period covered by our audit.

(xi) Managerial remuneration has been paid and provided by the company in accordancewith the requisite approvals mandated by the provisions of Section 197 of the Act readwith Schedule V to the Act.

(xii) In our opinion the Company is not a Nidhi Company. Accordingly provisions ofclause 3(xii) of the Order are not applicable.

(xiii) In our opinion all transactions with the related parties are in compliance withSections 177 and 188 of Act where applicable and the requisite details have beendisclosed in the financial statements etc. as required by the applicable Ind AS.

(xiv) During the year the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures.

(xv) In our opinion the company has not entered into any non-cash transactions withthe directors or persons connected with them covered under Section 192 of the Act.

(xvi) The company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

For Walker Chandiok & Co LLP

Chartered Accountants

Firm's Registration No.: 001076N/N500013

per Khushroo B. Panthaky

Partner

Membership No.: 42423

Place: Mumbai

Date: 30th May 2017

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT

on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 ofthe Companies Act 2013 ("the Act")

1. In conjunction with our audit of the financial statements of Delta Corp Limited("the Company") as of and for the year ended 31st March 2017 we haveaudited the internal financial controls over financial reporting (IFCoFR) of the companyof as of that date.

Management's Responsibility for Internal Financial Controls

2. The Company's Board of Directors is responsible for establishing and maintaininginternal financial controls based on the criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting (the "Guidance Note")issued 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 thecompany's business including adherence to company's policies the safeguarding of itsassets the prevention and detection of frauds and errors the accuracy and completenessof the accounting records and the timely preparation of reliable financial informationas required under the Act.

Auditors' Responsibility

3. Our responsibility is to express an opinion on the Company's IFCoFR based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by(ICAI) and deemed to be prescribed under section 143(10) of the Act to the extentapplicable to an audit of IFCoFR and the Guidance Note issued by the ICAI. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate IFCoFR wereestablished 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 IFCoFR and their operating effectiveness. Our audit of IFCoFR included obtaining anunderstanding of IFCoFR assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement including theassessment of the risks of material misstatement of the financial statements whether dueto 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 IFCoFR.

Meaning of Internal Financial Controls over Financial Reporting

6. A company's IFCoFR is a process designed to provide reasonable assurance regardingthe reliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A company'sIFCoFR 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or position 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 IFCoFR including the possibility ofcollusion or improper management override of controls material misstatements due to erroror fraud may occur and not be detected. Also projections of any evaluation of the IFCoFRto future periods are subject to the risk that IFCoFR may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.

Opinion

8. In our opinion the Company has in all material respects adequate internalfinancial controls over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31st March 2017 based onthe internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Noteissued by the ICAI.

For Walker Chandiok & Co LLP

Chartered Accountants

Firm's Registration No.: 001076N/N500013

per Khushroo B. Panthaky

Partner

Membership No.: 42423

Place: Mumbai

Date: 30th May 2017