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Dhanuka Agritech Ltd.

BSE: 507717 Sector: Agri and agri inputs
NSE: DHANUKA ISIN Code: INE435G01025
BSE LIVE 15:40 | 23 Nov 660.30 -3.90
(-0.59%)
OPEN

670.40

HIGH

670.40

LOW

660.00

NSE 15:31 | 23 Nov 666.60 0.65
(0.10%)
OPEN

665.95

HIGH

673.75

LOW

659.80

OPEN 670.40
PREVIOUS CLOSE 664.20
VOLUME 778
52-Week high 940.00
52-Week low 631.15
P/E 27.05
Mkt Cap.(Rs cr) 3,242
Buy Price 660.30
Buy Qty 58.00
Sell Price 0.00
Sell Qty 0.00
OPEN 670.40
CLOSE 664.20
VOLUME 778
52-Week high 940.00
52-Week low 631.15
P/E 27.05
Mkt Cap.(Rs cr) 3,242
Buy Price 660.30
Buy Qty 58.00
Sell Price 0.00
Sell Qty 0.00

Dhanuka Agritech Ltd. (DHANUKA) - Auditors Report

Company auditors report

To

The Members of

Dhanuka Agritech Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Dhanuka AgritechLimited (“the Company”) which comprise the Balance Sheet as at 31st March2017 and the statement of Profit and Loss and the Cash flow statement for the year ended31st March 2017 and a summary of Significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act 2013 (‘the Act') with respect to the preparation andpresentation of these standalone financial statements to give a true and fair view of thefinancial position financial performance and Cash flow 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) Rules2014. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintaince of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act and the rulesmade thereunder including the accounting and auditing standards and matters which arerequired to be included in the audit report.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143 (10) of the Act and other applicable authoritative Prouncements 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.

An audit involves performing procedures to obtain audit evidence about the amount andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including assessment of the risk 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 thestandalone financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of the accounting policies used and the reasonableness of theaccounting estimates made by the Company's Directors as well as evaluating the overallpresentation of the standalone financial statements.

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

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 2017 its Profit and its Cash flow for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors' Report) Order 2016 (‘the order')issued by the Central Government of India in terms of sub - section (11) of section 143 ofthe Act (hereinafter referred to as the “order”) and on the basis of suchchecks of the books and records of the Company as we considered appropriate and accordingto the information and explanations given to us we give in the Annexure B astatement on the matters specified in the Paragraph 3 and 4 of the Order to the extentapplicable.

2. 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 of the standalonefinancial statements.

(b). In our opinion proper books of account as required by law relating to preparationof the aforesaid standalone financial statements have been kept by the Company so far itappears 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 maintained for thepurpose of preparation of standalone financial statements

(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). On the basis of the written representation 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 terms of Section164 (2) of the Act.

(f). 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 A.

(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 in our opinionand to the best of our knowledge and belief and according to the information and accordingto the explanations given to us:

(I). The company has disclosed the impact if any of pending litigations as at 31stMarch 2017 on its financial position in its financial statements. - Refer Note No 2(1) (i)(a) to the financial statements;

(ii) There are no foreseeable losses on long term contracts including derivativecontracts as at 31st March 2017. Hence company has not made any provision as requiredunder the applicable law or accounting standards.

(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 31st March2017.

(iv) The Company has provided requisite disclosures in its standalone financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8 November 2016 to 30 December 2016 and these are in accordance with the books ofaccounts maintained by the Company. Refer Note 2(12) to the financial statements

For Dinesh Mehta & Co;
Chartered Accountants
FRN No : 000220-N
Sd/-
Place : Gurugram Anup Mehta
Date : 19 May 2017 Partner
Membership No : 093133

Annexure A to Independent Auditors' Report

Referred to in paragraph 3 (f) of the Independent Auditors' Report of even date to themembers of Dhanuka Agritech Limited on the financial statements for the year ended 31March 2017

1. Report on the Internal Financial Controls under Clause (i) of Sub-section 3 ofsection 143 of the Companies Act 2013 (‘the Act').

We have audited the internal financial controls over financial reporting of DhanukaAgritech Limited (“the Company”) as on 31st March 2017 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.

2. 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 (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 Companies Act 2013.

3. 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 Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the“Guidance Note”) and the Standards On Auditing specified under Section 143 (10)of the Act to the extent applicable to an audit of internal financial controls bothapplicable to an audit of internal financial controls and both issued by 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 internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 controls based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material 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.

4. 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 (i) pertain to the Maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (ii) 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 (iii) 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.

5. 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.

6. Opinion

In our opinion the company has in all material respects an adequate internalfinancial controls over financial reporting were operating effectively as at 31st March2017 based on the internal control over financial reporting criteria established by thecompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls over Financial Reporting issued by theInstitute of Chartered Accountants of India.

For Dinesh Mehta & Co;
Chartered Accountants
FRN No : 000220-N
Sd/-
Anup Mehta
Place : Gurugram Partner
Date: 19th May 2017 Membership No : 093133

Annexure B to the Independent Auditors' Report

I As required by the Companies (Auditor's Report) Order 2016 (the Order) issued by theCentral Government of India in terms of sub section (11) of Section 143 of the CompaniesAct 2013 and in terms of information and explanations given to us and also on the basisof such checks as we considered appropriate we report on the matters specified inparagraphs 3 and 4 of the said order as follows:-

(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 at reasonableintervals and no material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of ourexaminations of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

(ii) The Physical verification of inventory (excluding goods in transit and stock lyingwith third parties) has been conducted at reasonable intervals by the Management duringthe year. The discrepancies noticed on physical verification of inventory as compared tobook records were not material.

(iii) As per information and explanations given to us the Company has not granted anyloans secured or unsecured to the companies firms or other parties covered in theregister under section 189 of the Companies Act 2013 (‘the Act') thereforeparagraph 3 (iii) (a) (iii) (b) and (iii) (‘c) of the order are not applicable tothe company.

(iv). In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made.

(v) As per information and explanation given to us the Company has not accepted anydeposits and accordingly directives issued by Reserve Bank of India and the provisions ofsection 73 to 76 or any other relevant provision of Companies Act and the rules framedthereunder would not apply and accordingly paragraph 3(v) of the order is not applicable.

(vi). Pursuant to the rules made by the Central Government of India the Company isrequired to maintain cost records as specified under section 148(1) of the Act in respectof its products. We have broadly reviewed the same and are opinion that prima facie theprescribed accounts and records have been made and maintained. We have not however madea detailed examination of the records with a view to determine whether they are accurateand complete.

(vii). (a) According to the information and explanations given to us and on the basisof our examination of records of the company amount deducted / accrued in books ofaccounts in respect of undisputed statutory dues including provident fund investoreducation and protection fund employees' state insurance income-tax wealth-tax servicetax sales tax customs duty excise duty cess and other material statutory duesapplicable to it have generally been regularly deposited with the appropriate authorities.

Although there are no material outstanding undisputed statutory dues as at the last dayof the financial year ended on 31-03-2017 for a period of more than six months from thedate they become payable.

(b) According to the information and explanation given to us the following dues ofExcise Duty and cess Service Tax and Cess and Income Tax and Cess have not been depositedon account of some dispute with the concerned authority:

(Rs. in Lacs)
Nature of Dues Amount Period to which the amount relates Forum where dispute pending
Service Tax 140.25 Jan 2005 - Aug 2007 Addl. / Dy. Commissioner
Service Tax 36.00 Oct 2008 - March 2009 CESTAT Delhi
Central Excise 9.41 1996 Addl. / Dy. Commissioner
Central Excise 48.21 1999-2000 CESTAT Delhi
Central Excise 14.60 2010-2011 CESTAT Delhi
Central Excise 357.31 Jan 2014 - Sep 15 CESTAT Chandigarh
Central Excise 132.70 April 2012 - Sept 2016 Commissioner
WB -VAT 19.95 2009-10 WB Appellate Tribunal
Bihar-VAT 14.89 2008-09 Tribunal Commercial Tax Deptt
U.P-VAT 7.21 2016-2017 Commissioner
Gujarat VAT 138.00 2012-2013 Commissioner

(viii). According to the information and explanations given to us the company has notdefaulted in the repayment of loans and borrowing to a Financial Institution Bank orGovernment. Further there are no debenture holders during the year.

(ix) The Company has not raised any moneys by way of initial public offer furtherpublic offer (including dent instruments) and term loans during the year. AccordinglyParagraph 3 (ix) of the order is not applicable to the company.

(x) 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 been informed of any such case by themanagement.

(xi) According to the information and explanation given to us and based on ourexamination of the records of the Company the Company has paid/ provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

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

(xiii) The Company has entered into transactions with related parties in compliancewith the provisions of Section 177 and 188 of the Act. The details of such related partytransactions have been disclosed in the financial statements as required under AccountingStandard (AS) 18 Related Party Disclosures specified under section 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules 2014.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly the provisions of Paragraph 3 (xiv) of the order is not applicableto the Company.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe order is not applicable.

(xvi) The Company is not required to be registered under Section 45 IA of the ReserveBank of India Act 1934. Accordingly the provisions of Paragraph 3 (xvi) of the order isnot applicable to the Company.

For Dinesh Mehta & Co.
Chartered Accountants
FRN No: 000220-N
Sd/-
Anup Mehta
Place: Gurugram Partner
Date: 19th May 2017 Membership No.093133