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Duncan Engineering Ltd.

BSE: 504908 Sector: Auto
NSE: N.A. ISIN Code: INE340F01011
BSE LIVE 13:21 | 18 Aug 79.00 3.40
(4.50%)
OPEN

79.00

HIGH

79.00

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79.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 79.00
PREVIOUS CLOSE 75.60
VOLUME 155
52-Week high 98.70
52-Week low 62.55
P/E
Mkt Cap.(Rs cr) 29
Buy Price 79.00
Buy Qty 45.00
Sell Price 85.95
Sell Qty 46.00
OPEN 79.00
CLOSE 75.60
VOLUME 155
52-Week high 98.70
52-Week low 62.55
P/E
Mkt Cap.(Rs cr) 29
Buy Price 79.00
Buy Qty 45.00
Sell Price 85.95
Sell Qty 46.00

Duncan Engineering Ltd. (DUNCANENGG) - Auditors Report

Company auditors report

TO THE MEMBERS OF DUNCAN ENGINEERING LIMITED (Formerly known as Schrader DuncanLimited)

Report on the Financial Statements

1. We have audited the accompanying financial statements of Duncan Engineering Limited(Formerly known as Schrader Duncan Limited) (‘the Company') which comprise theBalance Sheet as at 31st March 2017 the Statement of Profit and Loss the CashFlow Statement for the year then ended and a summary of the significant accountingpolicies and other explanatory information.

Management's Responsibility for the Financial Statements

2. 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 flows 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 judgements 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

3. Our responsibility is to express an opinion on these financial statements based onour audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made thereunder. We conducted our audit inaccordance with the Standards on Auditing specified under Section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amountsand the 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 statement.

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

Opinion

6. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2017 and its loss and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

7. 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 Act we give in the Annexure A a statement on the matters specified in the paragraph3 and 4 of the Order.

8. 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 financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;

e) On the basis of the written representations 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 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 financial statements as stated in Note 26 to the financial statements.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There has been no delay in transferring amounts to the Investor Education andProtection Fund by the Company. iv. The Company has provided requisite disclosures in thefinancial statement as to holdings as well as dealings in Specified Bank Notes during theperiod from 8th November 2016 to 30th December 2016.

Based on the audit procedures performed and relying on management representation wereport that the disclosures are in accordance with the books of accounts maintained inaccordance with books of accounts by the Company as stated in Note 27.14 to the financialStatements.

For Singhi & Co.
Chartered Accountants
Firm Registration No: 302049E
Nikhil Singhi
Place: Mumbai Partner
Date: 17th May 2017 Membership No. 061567

ANNEXURE - A TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 7 with the heading ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

We report that:

i. In respect of its fixed assets:

a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b) As explained to us fixed assets have been physically verified during the year bythe management in phased manner to be covered in a period of three years and no materialdiscrepancies have been noticed on such physical verification. In our opinion thisperiodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its assets.

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 physical verification has been conducted by the management atreasonable intervals during the year in respect of inventory of raw materials stores andspare parts work-in-process and finished goods in the Company's possession. The existenceof stocks lying with third parties as at 31st March 2017 has been evidencedbased on confirmations or statements of account received in most cases. The discrepanciesnoticed on physical verification of inventories as compared to book records were notmaterial and have been properly dealt with in the books of account.

iii. As informed to us the Company has not granted any loans secured or unsecured toCompanies firms or other parties covered in the register maintained under Section 189 ofthe Companies Act.

iv. In our opinion and according to the information and explanations given to us theCompany has not granted any loan provided guarantees or security to the parties coveredunder section 185 of the Act. The Company has not granted loan provided guarantee andmade investment under section 186 of the Act. Accordingly paragraph 3(iv) of the Order isnot applicable.

v. According to the information and explanation given to us the Company has notaccepted any deposits from the public within the meaning of sections 73 to 76 of the Actand the rules framed thereunder.

vi. We have broadly reviewed the books of accounts maintained by the Company in respectof products where pursuant to rules made by the Central Government of India themaintenance of cost records has been prescribed under Sub section (1) of Section 148 ofthe Act and are of the opinion that prima facie the prescribed accounts and records havebeen made and maintained. However we have not made a detailed examination of such recordswith a view to determine whether they are accurate or complete.

vii. According to the information and explanations given to us and the records of theCompany examined by us:

a) The Company is generally regular in depositing amounts deducted/accrued in the booksof accounts in respect of undisputed statutory dues including Provident Fund Employees'State Insurance Investor Education and Protection Fund Income tax Sales tax ServiceTax Custom Duty Excise Duty cess and other statutory dues as applicable to theappropriate authorities.

According to the records and information and explanations given to us no undisputedamount payable in respect of Provident Fund Investor Education and Protection FundEmployees' State Insurance Income Tax Sales Tax Service Tax Customs Duty Excise DutyCess and other material statutory dues is outstanding as at 31st March 2017 for a periodof more than six months from the date they became payable.

b) There are no dues of Income tax sales tax Wealth tax Service tax Customs dutyExcise duty and Cess which have not been deposited with the appropriate authorities onaccount of any dispute except as mentioned below:

Name of the statue Nature of dues Amount (Rs.) Period to which the amount relates Forum where dispute is pending
Central Excise Act 1944 Excise Duty 713907 2005-06 High Court Mumbai
Central Excise Act 1944 Excise Duty 2739813 2009-10 The Additional Commissioner of Central Excise Mumbai III
Central Excise Act 1944 Excise Duty 110413 2012-13 Deputy Commissioner of Central Excise Pune
Central Sales Tax Act 1956 Sales Tax & Interest 2125410 2012-13 Deputy Commissioner of Sales Tax

viii. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not defaulted in repayment ofloans or borrowings to any financial institution bank or Government. The Company hadneither any outstanding debenture at the beginning of the year nor has it issued anydebenture during the year.

ix. The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year. According to the informationand explanation given to us by the management term loans were applied for the purpose forwhich the loans were obtained.

x. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

xi. According to the information and explanations give 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. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

xiv. According to the information and explanations give 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.

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.

For Singhi & Co.
Chartered Accountants
Firm Registration No: 302049E
Nikhil Singhi
Place: Mumbai Partner
Date: 17th May 2017 Membership No. 061567

ANNEXURE - B TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 8 (f) with the heading ‘Report on Other Legal andRegulatory Requirements' section of our report of even date)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 (‘the Act')

1. We have audited the internal financial controls over financial reporting of DuncanEngineering Limited (Formerly known as Schrader Duncan Limited) (‘the Company') as of31st March 2017 in conjunction with our audit of the financial statements ofthe Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

2. 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 Act.

Auditor's Responsibility

3. 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 deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. 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.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the 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 judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

5. 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

6. 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

7. 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

8. 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 31st March 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Singhi & Co.
Chartered Accountants
Firm Registration No: 302049E
Nikhil Singhi
Place: Mumbai Partner
Date: 17th May 2017 Membership No. 061567