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Dharamsi Morarji Chemicals Co Ltd.

BSE: 506405 Sector: Agri and agri inputs
NSE: DHARAMORAR ISIN Code: INE505A01010
BSE LIVE 10:38 | 15 Dec 112.00 -0.05
(-0.04%)
OPEN

114.95

HIGH

114.95

LOW

112.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 114.95
PREVIOUS CLOSE 112.05
VOLUME 1820
52-Week high 148.00
52-Week low 90.55
P/E 24.14
Mkt Cap.(Rs cr) 279
Buy Price 112.00
Buy Qty 50.00
Sell Price 112.80
Sell Qty 550.00
OPEN 114.95
CLOSE 112.05
VOLUME 1820
52-Week high 148.00
52-Week low 90.55
P/E 24.14
Mkt Cap.(Rs cr) 279
Buy Price 112.00
Buy Qty 50.00
Sell Price 112.80
Sell Qty 550.00

Dharamsi Morarji Chemicals Co Ltd. (DHARAMORAR) - Auditors Report

Company auditors report

TO THE MEMBERS OF THE DHARAMSI MORARJI CHEMICAL COMPANY LIMITED Report on the FinancialStatements

We have audited the accompanying financial statements of THE DHARAMSI MORARJICHEMICAL COMPANY LIMITED ("the Company") which comprise the Balance Sheetas at 31st March 2016 the Statement of Profit and Loss the Cash Flow Statement for theyear then ended and a summary of the significant accounting policies and otherexplanatory information.

Management’s Responsibility for the Financial Statements

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 financial statements that give a true and fair view of the financial positionfinancial performance and cash fl ows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. 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. We conducted our audit in accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that 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 amounts andthe 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.

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

Basis for Qualified Opinion

The Company had recognized net deferred tax asset in earlier years aggregating toRs.2654.15 Lacs till 31st March 2009 considering unabsorbed loss up to 31stMarch 2008 and unabsorbed depreciation up to 31st March 2009. For subsequent nancial periods further net deferred tax asset has not been recognized in view ofmanagements perceptions and reasons detailed in Note No. V(c). We are not in a positionto opine on the realisability of the said net deferred tax asset. Consequently theAccumulated Losses as at the year-end would have been higher by Rs.2654.15 Lacs.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us and except for the possible effects of the matter described in the Basisfor Quali ed Opinion Paragraph the aforesaid financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2016 and its profit and its cash fl ows for theyear ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the ‘Annexure A’ a statement on the mattersspecified in paragraphs 3 and 4 of the Order.

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 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) Except for the possible effects of the matter described in the Basis for QualifiedOpinion paragraph above in our opinion the aforesaid financial statements comply withthe Accounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

(e) 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 terms of Section164 (2) of the Act. (f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B".

(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)

ANNEXURE TO THE AUDITORS’ REPORT

Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us: i. The Company has disclosed the impact of pending litigationson its financial position (net of provision made) in its financial statements 2A(i) to thefinancial statements; ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses. iii. There hasbeen no delay in transferring amounts required to be transferred to the InvestorEducation and Protection Fund by the Company.

For K.S.AIYAR & Co
Chartered Accountants
ICAI Firm’s Registration No. 100186W
RAJESH S. JOSHI
Place of Signature: Mumbai Partner
Date: 27th May 2016 Membership No. 38526

ANNEXURE A

Re: THE DHARAMSI MORARJI CHEMICAL COMPANY LIMITED.

Referred to in paragraph 1 on Report on Other Legal and Regulatory Requirements of ourreport.

(i) (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;

(b) A substantial portion of these fixed assets has been physically verified by themanagement during the year. In our opinion the same is reasonable having regard to thesize of the Company and the nature of its fixed assets. No material discrepancies werenoticed on such verification.

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

(ii) Physical verification of inventory has been conducted at reasonable intervals bythe management and No material discrepancies were noticed on physical verification. (iii)The Company has not granted any secured or unsecured loans to companies firms limitedliability partnership or other parties covered in the register maintained under section189 of the Companies Act 2013. Therefore the requirements of sub-clause (a) (b) and (c)of clause (iii) are not applicable to the Company.

(iv) There are no loans given no investments made no guarantees given and nosecurity given by the Company in terms of provisions of section 185 and 186 of theCompanies Act 2013. (v) The Company has not accepted any deposits during the year.Therefore the question of complying with directives issued by the Reserve Bank of Indiaand the provisions of sections 73 to 76 or any other relevant provisions of the CompaniesAct 2013 and the rules framed thereunder do not arise. (vi) The Central Government hasspecified the maintenance of cost records under sub-section (1) of section 148 of theCompanies Act 2013. Such accounts and records have been made and maintained by theCompany.

(vii) (a) The Company is generally regular in depositing undisputed statutory duesincluding provident fund employees’ state insurance income tax sales-tax servicetax duty of customs duty of excise value added tax cess and any other statutory dueswith the appropriate authorities. (b) Dues of income tax or sales tax or service tax orduty of customs or duty of excise or value added tax that have not been deposited onaccount of any dispute are as under.

Name of the Nature of Dues Forum where dispute is Pending Period to which relate Amount
Statute (Rs in Lacs)
Central Excise Act Duty/Interest/Penalty Asst.Commissioner April 2008 to February 2013 24.48
Duty/Interest/Penalty Asst.Commissioner August 2002 to March 2007 0.57
Duty/Interest/Penalty Asst.Commissioner 2005 to 2006 1.18
Duty/Interest/Penalty Asst.Commissioner October 2008 to August 2013 56.59
Duty Dy. Commissioner March 2013 to September 2013 3.79
Duty CESTAT West Zone Bench. Sept 13 to Aug 14 14.70
Duty Additional Commissioner of Central Excise Nov 10 to Sept 13 5.96
Duty Suptd. Of Central Excise(Tech)-IVth Oct 13 to Aug 14 0.50
Division Mahad
Duty Additional Commissioner of Central Excise Oct 2013 to June 2014 14.28
Duty Asst. Commissioner of Central Excise September 2014 to December 2014 4.43
Duty Asst. Commissioner of Central Excise January 2015 to April 2015 1.58
Transport Fees on SDS Bombay High Court 2007-08 to 2015-16 46.38
Total 174.44

(viii) The Company has not defaulted in repayment of loans or borrowings to a financialinstitution bank government or dues to debenture holders.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) or any term loans during the year.

(x) Any fraud by the Company or any fraud on the Company by its officers or employeeshas not been noticed or reported during the year.

(xi) Managerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct.

(xii) The Company is not a Nidhi Company and therefore the compliance requirementsrelevant to a Nidhi Company are not applicable.

(xiii) All transactions with related parties are in compliance with section 177 and 188of the Companies Act 2013 where applicable and the details have been disclosed in thefinancial statements etc. as required by the applicable accounting standards.

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review thereforethe compliance of the requirement of section 42 of the Companies Act 2013 are notapplicable. (xv) Pursuant to the provisions of section 192 of the Companies Act 2013 theCompany has not entered into any non-cash transactions with directors or persons connectedwith him/her.

(xvi) The Company is not required to be registered under section 45-1(A) of the ReserveBank of lndia Act 1934.

For K.S.AIYAR & Co
Chartered Accountants
ICAI Firm’s Registration No. 100186W
RAJESH S. JOSHI
Place of Signature: Mumbai Partner
Date: 27th May 2016 Membership No. 38526

ANNEXURE B TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE FINANCIALSTATEMENTS OF THE DHARAMSI MORARJI CHEMICAL COMPANY LIMITED. Report on the InternalFinancial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act2013 ("the Act")

We have audited the internal financial controls over financial reporting of THEDHARAMSI MORARJI CHEMICAL COMPANY LIMITED ("the Company") as of March 312016 in conjunction with our audit of the financial statements of the Company for the yearended 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 thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding 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.

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 included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor’s judgement including the assessment of the risks of materialmisstatement 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 refl ect 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

The internal financial control system over financial reporting that has beenestablished by the management consists mainly of manual/automated controls in variousbusiness processes. These controls were verified by us on a test basis during the yearand were found to be operating effectively in all material respects. We are informed thatthe Company is in the process of implementing SAP ERP for improved integration and systemdriven controls. In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols were operating effectively as at March 31 2016 based on the internal controlover financial reporting criteria established by the Company as stated in the precedingparagraph 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 K.S.AIYAR & Co
Chartered Accountants
ICAI Firm’s Registration No. 100186W
RAJESH S. JOSHI
Place of Signature: Mumbai Partner
Date: 27th May 2016 Membership No. 38526