You are here » Home » Companies » Company Overview » Dredging Corporation of India Ltd

Dredging Corporation of India Ltd.

BSE: 523618 Sector: Others
NSE: DREDGECORP ISIN Code: INE506A01018
BSE LIVE 15:59 | 17 Nov 703.15 -4.65
(-0.66%)
OPEN

711.00

HIGH

721.00

LOW

698.20

NSE 15:59 | 17 Nov 704.75 -3.70
(-0.52%)
OPEN

714.00

HIGH

721.00

LOW

702.20

OPEN 711.00
PREVIOUS CLOSE 707.80
VOLUME 83381
52-Week high 787.90
52-Week low 364.35
P/E 48.80
Mkt Cap.(Rs cr) 1,969
Buy Price 703.15
Buy Qty 734.00
Sell Price 0.00
Sell Qty 0.00
OPEN 711.00
CLOSE 707.80
VOLUME 83381
52-Week high 787.90
52-Week low 364.35
P/E 48.80
Mkt Cap.(Rs cr) 1,969
Buy Price 703.15
Buy Qty 734.00
Sell Price 0.00
Sell Qty 0.00

Dredging Corporation of India Ltd. (DREDGECORP) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

DREDGING CORPORATION OF INDIA LIMITED

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of DREDGINGCORPORATION OF INDIA LIMITED ("the Company") which comprise the BalanceSheet as at March 31 2017 and the Statement of Profit and Loss (including othercomprehensive income) statement of cash flows and statement of changes in equity for theyear then ended and a summary of significant accounting policies and other explanatoryinformation (herein after referred to as "Standalone Ind AS financialstatements").

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 preparationand presentation of these standalone Ind AS financial statements that give a true and fairview of the financial position financial performance including other comprehensiveincome cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)prescribed under Section 133 of the Act read with relevant rules thereunder.

This responsibility also includes the 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 maintenance 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 standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based 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 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 Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the standalone Ind AS financial statements. The procedures selected dependon the auditor's judgment including the assessment of the risks of material misstatementof the standalone Ind AS financial statements whether due to fraud or error. In makingthose risk assessments the auditor considers internal financial control relevant to theCompany's preparation of the standalone Ind AS financial statements that give a true andfair view in order to design audit procedures that are appropriate in the circumstances.An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by the Company's directors as well asevaluating the overall presentation of the standalone Ind AS 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 Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including the Ind AS of thefinancial position of the Company as at March 31 2017 its financial performanceincluding other comprehensive income its cash flows and changes in equity for the yearended on that date.

Emphasis of Matters:

We draw attention to the following matters in the Notes to the financial statements.Our opinion is not qualified in respect of this matter.

a) Componentization: (Refer Note No. 3 of the financial statements)

As per note 4 of Schedule II to the Companies Act 2013 -"Useful life specified inPart C of the Schedule is for whole of the asset. Where cost of a part of the asset issignificant to total cost of the asset and useful life of that part is different from theuseful life of the remaining asset useful life of that significant part shall bedetermined separately." The above requirement is commonly known as ‘componentaccounting'. Companies are required to identify and depreciate significant components withdifferent useful lives separately.

However management is of the view that no component is having more than 10% value oftotal cost of the dredger hence component accounting is not applicable.

b) Trade Receivables includes Rs. 11433.18 lakhs receivable from M/s SethusamudramCorporation Ltd (SCL) which is pending for more than 4 years. Out of the above Companyhas provided for doubtful debts to the extent of Rs. 3019.27 lakhs. The company is of theview that this will be reimbursed by GOI (at whose behest the contract with SCL wasentered)to DCI to compensate the actual expenditure incurred on this project. In view ofthis a provision for doubtful debts is not made in respect of receivables in this regardamounting to Rs. 8413.91 lakhs.

c) The balances of sundry debtors creditors loans and advances other receivable andother payables being subject to confirmation and reconciliation resulting in the balancesas per books of account not verified by us.

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 subsection (11) of section 143 ofthe Act we give in the Annexure A a statement on the matters specified inparagraphs 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 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 Balance Sheet the Statement of Profit and Loss Cash Flow Statement and thestatement of changes in equity dealt with by this Report are in agreement with the booksof account.

d) In our opinion the aforesaid standalone Ind AS financial statements comply with theAccounting Standards specified under section 133 of the Act read with relevant ruleissued thereunder.

e) On the basis of written representations received from the directors as on March 312017 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2017 from being appointed as a director in terms of Section 164(2) of theAct.

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"; and

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 standalone Ind AS financial statements – Refer Note to the standaloneInd AS financial statements.

ii. The company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if anyon long term contracts includingderivative contracts – Refer Note to the standalone Ind AS financial statements.

iii. There are no delays in transferring amounts required to be transferred to theInvestor Education and Protection fund by the company during the year and

iv. The Company has provided requisite disclosures in its standalone Ind AS financialstatements as to holding 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 to the standalone Ind AS financialstatements.

3. Directions under section 143(5) of the Companies Act. 2013 are form part of thisreport.

For Tukaram & Co
Chartered Accountants
[Firm Regn No. 004436S]
Place : New Delhi (P.MURALI)
Date : 29-05-2017 Partner : Membership No. 221625

ANNEXURE A TO AUDITOR'S REPORT

The Annexure referred to in Independent Auditor's Report to the members of the Companyon the standalone Ind AS financial statements for the year ended 31 March 2017 we reportthat:

(i) (a) The Company has generally maintained proper records showing full particularsincluding quantitative details and situation of its fixed assets.

(b) Fixed assets have been physically verified by the management during the year and nomaterial discrepancies were identified on such verification.

(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) According to the explanation and information provided by the company that theCompany has carried out physical verification of spares on board dredgers. It was informedthat the company is in the process of reconciling the excess/ deficit stock. Hence we areunable to comment on this at the moment.

(iii) According to the information and explanations given to us and based on ourexamination of the records of the company that the Company has not granted any loanssecured or unsecured to companies firms limited liability partnerships or other partiescovered in the Register maintained under Section 189 of the Companies Act 2013.

(iv) The Company has not granted any loans made investments or provide guarantees andaccordingly the clause 3 (iv) of the Companies (Auditors Report) Order is not applicableto the Company.

(v) According to the information and explanations given to us that the company has notaccepted any deposit from the public pursuant to sections 73 to 76 or any other relevantprovisions of the Companies Act 2013 and rules framed thereunder.

(vi) To the best of our knowledge the Central Government has not prescribedmaintenance of cost records under Section 148(1) of the Act in respect of the nature ofbusiness carried on by the Company.

(vii)According to the information and explanations given to us in respect of statutorydues:

(a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Income-tax sales tax Service Tax Customs Duty Value AddedTax Cess and other material statutory dues applicable to it with the appropriateauthorities.

(b) There were no undisputed amounts payable in respect of Provident Fund Income TaxService Tax Customs Duty Value Added Tax Cess and other material statutory dues inarrears as at 31 March 2017 for a period of more than six months from the date theybecame payable.

(c) There are no dues in respect of Income Tax Service Tax Customs Duty and ValueAdded Tax as on 31 March 2017 on account of disputes.

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of loans or borrowings to banks financialinstitutions and government.

(ix) During the period the Company has not raised moneys by way of initial public offeror further public offer (including debt instruments) or term loans and hence reportingunder clause (ix) of the CARO 2016 Order is not applicable.

(x) According to the information and explanations given to us and to the best of ourknowledge and belief no material fraud by the Company or on the Company by its officers oremployees has been noticed or reported during the course of the audit.

(xi) According to the information and explanations 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) The Company is not a Nidhi Company hence clause 3(xii) of Companies (AuditorsReport) Order 2016 is not applicable to the company. (xiii) According to the informationand explanations given to us and based on our examination of the records of the companytransactions with the related parties are in compliance with Section 177 and 188 of theCompanies Act 2013 where applicable and details of such transactions have been disclosedin the standalone Ind AS financial statements as required by the applicable accountingstandards.

(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 / private placement of shares or fully or partly convertible debentures duringthe year.

Accordingly the clause 3 (xiv) of Companies (Auditors Report) Order 2016 is notapplicable to 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 any non-cashtransactions with directors or persons connected with him. Accordingly the clause 3 (xv)of the Companies (Auditors Report) Order is not applicable to the Company.

(xvi) The nature of business and the activities of the Company are such that theCompany is not required to obtain registration under section 45-IA of the Reserve Bank ofIndia Act 1934.

For Tukaram & Co.
Chartered Accountants
Place: New Delhi FRN:004436S
Date: 29th May 2017 P Murali
Partner Membership No. 221625

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 DREDGINGCORPORATION OF INDIA LIMITED ("the Company") as of March 31 2017 inconjunction with our audit of the standalone Ind AS financial statements of the Companyfor 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 (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required 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 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 control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the standalone Ind AS financial statements whether due to fraudor 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.

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 were operating effectively as at March31 2017 based on the internal control over financial reporting criteria established bythe Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India.

For Tukaram & Co
Chartered Accountants
[Firm Regn No. 004436S]
Place : Delhi (P.MURALI )
Date : 29-05-2017 Partner : Membership No. 221625