To the Members of Dolphin Offshore Enterprises (India) Limited
Report on the Standalone Financial Statements
We have audited the accompanying Standalone Financial Statements of Dolphin OffshoreEnterprises (India) Limited (the Company) which comprise the Balance Sheet asat March 31 2017 the Statement of Profit and Loss the Cash Flow Statement forthe year then ended and a summary of significant accounting policies and other explanatoryinformation.
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 accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with relevant rules framed thereunder. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of 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 andensuring their operating effectiveness and the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
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 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 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 Standalone Financial Statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the Standalone Financial Statements. The procedures selected depend on theauditors' judgment including the assessment of the risks of material misstatement of theStandalone
Financial Statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company's preparation ofthe standalone 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 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 qualified audit opinion on the standalone financial statements.
Basis for Qualified Opinion
We are unable to assess the recoverability of following receivables of the Company:
a) Note No 36(a) to the Standalone Financial Statements regarding trade receivableamounting to '803.03 lacs receivable from a party which has been wound up;
b) Note No 36(b) to the Standalone Financial Statements regarding trade receivable andaccrued income aggregating to '891.65 lacs receivable from a party which has beendeclared sick;
c) Note No 36(c) to the Standalone Financial Statements regarding trade receivableamounting to '99.28 lacs receivable from a related party having negative net worth; and
d) Note No 36(d) to the Standalone Financial Statements regarding advances recoverableamounting to '213.18 lacs which is outstanding for a long period of time payment forwhich are not forthcoming.
In our opinion and to the best of our information and according to the explanationsgiven to us except for the possible effects of the matter described in the Basisfor Qualified Opinion paragraph the aforesaid Standalone 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 2017 its loss and its cash flows for the yearended on that date.
Emphasis of Matter
We draw attention to the following matters in the notes to the Standalone FinancialStatements:
a) Note No 36(e) to the Standalone Financial Statements with regard to nonavailability of confirmations of balances in respect of receivables and payables; and
b) Note No 36(f) and 36(g) to the Standalone Financial Statements with regard torecognition of aggregate
revenue of '12548.07 lacs and the status of admission of amounts claimed by theCompany.
Our opinion is not modified in respect of these matters.
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 we give in Annexure 1 a statement on the matters specified inparagraphs 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 except for the matter described in the Basis for QualifiedOpinion paragraph obtained all the information and explanations which to the best of ourknowledge 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 FlowStatement dealt with by this Report are in agreement with the books of account;
d. In our opinion the aforesaid standalone financial statements read with Note theretocomply with the Accounting Standards specified under Section 133 of the Act read withrelevant rules framed thereunder.
e. The matter described under the Basis for Qualified Opinion and Emphasis of Matterparagraph above in our opinion may have an adverse effect on the functioning of theCompany;
f. On the basis of written representations received from the directors as on March 312017 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of Section 164 (2) of theAct;
g. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls we give ourseparate Report in Annexure 2; and
h. 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 opinion and to the best of ourinformation and according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements -Refer Note No 27 on ContingentLiabilities to the standalone financial statements;
(ii) The Company has long term contracts as at March 312017 for which there were nomaterial foreseeable losses. The Company did not have any derivative contracts hence thequestion of any material foreseeable losses does not arise;
(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 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. Based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with the books of accountmaintained by the company and as produced to us by the Management (Refer Note No 38 to theStandalone Financial Statements).
|For Haribhakti & Co. LLP |
|Chartered Accountants |
|ICAI Firm Registration No.103523W/W100048 |
|Snehal Shah |
|Membership No.048539 |
|Place : Mumbai |
|Date : May 17 2017 |