You are here » Home » Companies » Company Overview » Dixon Technologies (India) Ltd

Dixon Technologies (India) Ltd.

BSE: 540699 Sector: Consumer
NSE: DIXON ISIN Code: INE935N01012
BSE 09:39 | 23 Apr 3418.00 30.55
(0.90%)
OPEN

3398.00

HIGH

3425.00

LOW

3391.20

NSE 09:34 | 23 Apr 3415.00 20.35
(0.60%)
OPEN

3395.00

HIGH

3429.45

LOW

3395.00

OPEN 3398.00
PREVIOUS CLOSE 3387.45
VOLUME 207
52-Week high 4490.85
52-Week low 2510.00
P/E 69.83
Mkt Cap.(Rs cr) 3,873
Buy Price 3413.75
Buy Qty 6.00
Sell Price 3420.05
Sell Qty 11.00
OPEN 3398.00
CLOSE 3387.45
VOLUME 207
52-Week high 4490.85
52-Week low 2510.00
P/E 69.83
Mkt Cap.(Rs cr) 3,873
Buy Price 3413.75
Buy Qty 6.00
Sell Price 3420.05
Sell Qty 11.00

Dixon Technologies (India) Ltd. (DIXON) - Auditors Report

Company auditors report

To the Members of Dixon Technologies (India) Private Limited

(Now Dixon Technologies (India) Limited)

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of DixonTechnologies (India) Private Limited (Now Dixon Technologies (India) Limited)("the company") which comprise the Balance Sheet as on 31st March2017 the Statement of Profit and Loss and the Cash Flow Statement for the year thenended 31st March 2017 and a Summary of Significant Accounting Policies and OtherExplanatory Information

Management's Responsibility for the Standalone 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 standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepte d 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

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

We have tak en 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 accordance with th e 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.

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 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 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 on 31st March 2017 and its profit and its cash flows for the year ended on that date.

Emphasis of Matters

1. Note No. 27[B][xii] regarding non Reconciliations/Confirmations in respect ofcertain accounts of Sundry Debtors having debit balance of Rs. 129671905/- and creditbalance of Rs. 31923460/- Creditors having credit balance of Rs. 74810643/- and debitbalance of Rs. 1740880/- other loan and advance to Supplier Contractors etc. have notbeen received and they are subject to confirmations and reconciliation. The management isof the opinion that adjustments if any arising out of such reconciliation would not bematerial effecting financial statements of the current year.

Our Opinion is not qualified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the Annexure-A a statement on the matters specifiedin paragraphs 3 and 4 of the Order to the extent applicable.

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. 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 the written representations received from the directors as on 31stMarch 2016 and 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 termsof Section 164 (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 -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) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements – Refer Note No. 27B i (d)(e)(f)(g) & (h)to the Financial Statements

ii. The Company did not have any material foreseeable losses on long term contractsincluding derivative contracts;

iii. There were no amount which were required to be transfe rred to the investoreducation & protection fund.

iv. The Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016 and these are in accordance with the books of accountmaintained by the company. Refer Note 27B (xxi) to the financial statements.

For Singhi & Co.
Chartered Accountants
Firm Reg. No. 302049E
SD/-
B.L.Choraria
Place: New Delhi Partner
Date: 13 TH July 2017 Membership No.: 022973

Annexure - A referred to in paragraph 1 of our report of even date on the other legaland regulatory requirements

Re: Dixon Technologies (India) Private Limited

(Now Dixon Technologies (India) Limited)

On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we report that:

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

b. As informed to us the company has a phased programme of physical verif ication ofits fixed assets which in our opinion is reasonable having regard to the size of thecompany and the nature of its fixed assets. Management has physically verified certainfixed assets during the year and as informed to us no material discrepancies were noticedas compared to books of account.

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

(ii) As explained to us inventories (except stock in-transit) were physically verifiedduring the year by the management. In our opinion the frequency of verification isreasonable and the discrepancy between physical stock and book stock were not significantand the same has been properly adjusted in the books of account.

(iii) 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' 2013 therefore provisions of this clause are notapplicable to the company.

(iv) In our opinion and According to the information and explanation given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the guarantee given & Investment made in its subsidiary and Joint venture duringthe year.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public within the meanin g of directivesissued by the Reserve Bank of India and hence provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and rules framed thereunder with regard to the depositsaccepted from the public are not applicable to the company.

(vi) The company is required to maintain cost records pursuant to the rules made by thecentral government for the maintenance of cost records under sub -section (1) of section148 of the Act we 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 determining whether they are accurate or complete

(vii) a. According to the records of the Company there has been some delays ofdepositing undisputed provident fund and employee state insurance with the appropriateauthority however there are no outstanding at the end of the year. Other statutory duesincluding investor education and protection fund sales-tax service tax custom dutyexcise duty income tax cess etc. have been deposited in time with the appropriateauthorities.

b. According to the information and explanation given to us and records of the Companythere are dues outstanding of income tax or sales tax or service tax or duty of customs orduty of excise or value added tax on account of disputes as stated below:

Nature Of Dues Amount Involved Amount Paid under Protest Forum Where the dispute is pending Year
(In Rs) (In Rs)
4 021 628 3242567 Joint Commissioner 2010-13 2015-17
488215 488215 High Court 2009-10
Sales Tax excl. penalty & Interest 1244654 1012348 Deputy Commissioner 2009-10 2011-12 2014-15 2016-17
1476000 1476000 Asst. Commissioner 2014-15 2016-17
2189523 0 Joint Commissioner (Appeal) 2008-09 2011-13
9420020 6219130
Services Tax excl. Penalty & Interest Custom Duty 3042239 - Commissioner Appeal 2006-09
4267533 12000000 Add. Commissioner of Custom 2011-12
45580523 989169 Commissioner of Custom 2009-12
14949954 0 CESTAT 2009-12 2013-15
64798010 12989169
2851897 - Add. Commissioner of Central Excise 2009-10
Central Excise excl. penalty & interest 917723 813474 Ass. commissioner of Central Excise 2009-10 2015-16
37549227 - CESTAT 2012-15
3624184 - Commissioner of Central Excise 2008-09
45381869 - Supreme Court 2007-08
90324900 813474
Income Tax 16962223 Dispute Resolution Panel 2013-14

(viii) Based on our audit procedures and on the information and explanations given bythe management we are of the opinion that the Company has not defaulted in repayment ofdues to financial institutions banks and debentures holders.

(ix) To the best of our knowle dge and belief and according to the information andexplanations given to us term loans availed by the Company were prima facie applied bythe Company for the purpose for which loans were obtained. The company has not raised anymoneys by way of Public issue/ Follow-on offer.

(x) Based on our examination of the books and records of the Company carried out inaccordance with the generally accepted auditing practice in India and according to theinformation and explanations given to us no fraud by the Company or on the Company by itsofficers/employees has been noticed or reported during the year.

(xi) This being private limited company (Till 31st March 2017) provisions ofsection 197 of read with schedule V to the Companies Act 2013 not applicable to thecompany.

(xii) The Company is not a Nidhi Company therefore provisions of this clause are notapplicable to the company.

(xiii) Based on our examination of the books and records of the Company alltransactions with related parties are in compliance with sections 177 and 188 of the Actwhere applicable and details of such transactions have been disclosed in the financialstatements 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 thereforeprovisions of this clause are not applicable to the company.

(xv) To the best of our knowledge and belief and according to the information andexplanations given to us the company hasn't entered into any non -cash transactions withdirectors or persons connected with him therefore provisions of this clause are notapplicable to the company.

(xvi) Company is not required to be registered under section 45 -IA of the Reserve Bankof India Act 1934 therefore provisions of this clause are not applicable to the company.

For SINGHI & CO.
Chartered Accountants
Firm Reg. No. 302049E
SD/-
B.L. Choraria
Place: Noida Partner
Dated: 13 TH July 2017 Membership No.: 022973

Annexure – B to the Auditors' Report

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 DixonTechnologies (India) Private Limited (Now Dixon Technologies (India) Limited) ("theCompany") as of 31stMarch 2017 in conjunction with our audit of thestandalone financial statements of the Company for the 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 thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of fra uds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe 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 !udit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by the Institute ofChartered Accountants of India and deemed to be prescribed under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsboth applicable to an audit of Internal Financial Controls and both issued by theInstitute of Chartered Accountants of India. Those Standards and the Guidancenote requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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 th e 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 controls systemo ver financial reporting.

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 (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 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 31 st 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 SINGHI & CO.
Chartered Accountants
Firm Registration No. 302049E
SD/-
B.L. Choraria
Place: Noida Partner
Date: 13 TH July 2017 Membership No. 022973