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Dunlop India Ltd.

BSE: 509130 Sector: Auto
NSE: DUNLOP ISIN Code: INE509A01012
BSE LIVE 16:00 | 27 Aug Stock Is Not Traded.
NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 10.11
PREVIOUS CLOSE 10.64
VOLUME 130254
52-Week high 11.17
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 127
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 10.11
CLOSE 10.64
VOLUME 130254
52-Week high 11.17
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 127
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Dunlop India Ltd. (DUNLOP) - Auditors Report

Company auditors report

INDEPENDENT AUDITORS

TO THE MEMBERS OF DUNLOP INDIA LIMITED

Report on the Financial Statements

We have audited the accompanying financial statement of DUNLOP INDIA LIMITED("the Company") which comprises the Balance sheet as at March 31 2014 and theStatement of Profit and Loss and the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position financial performance and cash flows of theCompany in accordance with the Accounting Standards referred to in sub-section (3C) ofsection 211 of the Companies Act 1956 ("the Act"). This responsibility includesthe design implementation and maintenance of internal control relevant to the preparationand presentation of the financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management aswell as evaluating the overall 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.

Basis for Qualified Opinion

1. Refer to note no. 2.6 regarding non-provision of interest amounting to Rs. 1697.10lakhs on loan from a bank for working capital of Rs. 3920.65 lakhs.

2) Refer to note no. 2.8 regarding non provision of interest on certain loans againstwhich one time settlement is under active consideration (amount not ascertained).

3) Refer to note no. 2.9 regarding decapitalization of Assets of Rs. 29384.14 lakhsrepresenting refurbishment expenditure incurred in earlier years for restoration of fullcapacity of plants.

4) Refer to note no. 2.11 regarding providing of deferred tax assets amounting to Rs.9740.00 lakhs on carry forward loss and unabsorbed depreciation withought virtualcertainty of profit in future years.

5) We could not veify the investment held as non-current of book-value of Rs.7.00 lakhsas neither the share certificates in physical form nor any demat certificate produced tous.

The cumulative effects of above could not be ascertainable on the net Loss andshareholder's fund as amount on certain notes is not quantified.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis for QualifiedOpinion Paragraph the financial statements give the information required by the CompaniesAct 1956 in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India:-

a. in the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2014;

b. in the case of Statement of Profit and Loss of the Loss for the year ended on thatdate ; and

c. in the case of Cash Flow Statement of the Cash Flows for the year ended on thatdate.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2003 ("theOrder")issued by the Central Government of India in terms of sub- section (4A) of section 227 ofthe Act we give in the Annexure a statement on the matters specified in paragraphs 4 and5 of the Order.

2. As required by section 227(3) of the Act we report that

a. We have 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 appears from our examination of those books;

c. The Balance Sheet Statement of Profit & Loss and Cash Flow Statement dealtwith by this Report are in agreement with the books of account;

d. In our opinion the Balance Sheet Statement of Profit & Loss and Cash FlowStatement comply with the Accounting Standards referred to in sub-section (3C) of Section211 of the Companies Act 1956.

e. Based on legal opinion obtained none of the present directors are disqualified ason 31.03.2014 for being appointed as a director in terms of clause (g) of subsection (1)of section 274 of the Companies Act1956.

for GORA & CO.
Chartered Accountants
C/O Abhijit Dutt & Associates Firm s Registration no. 327183E
8/2 K.S.Roy Road 2nd Floor G. C. Mukherjee
Room No. 2 & 3 Kolkata-700001 Partner
Dated: 29th May 2014 Membership No. 017630

ANNEXURE REFERRED TO IN PARA 1 OF OUR REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTSOF EVEN DATE.

I. a) Proper records showing full particulars including quantitative details andsituation of fixed assets were maintained by the company. However as both the plants ofthe Company is under suspension of operation the fixed assets register could not beProduced to us this year and in the previous year and hence we are unable to commentwhether the company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

b) As both the plants of the company is under suspension of operation physicalverification of fixed assets could not be carried out by the management during the yearend and hence we were unable to comment whether there is any discrepancies between thephysical balance and book balance.

c) As per information and explanations given to us and from the records verified nosubstantial part of the fixed assets have been disposed off during the year which affectsthe going concern.

II. a) As both the plants of the company are under suspension of operation physicalverification of inventory has not been carried out during the year.

b) As mentioned in (a) above clause 4 (ii) (b) is not applicable during the year.

c) The company was maintaining proper records of inventory. However as stated in (a)above we are unable to make any comment on discrepancy of book balance and physicalbalance as the record of inventory was not produced to us.

III. a) As per information and explanations given to us the Company has not given anyloan secured or unsecured to Companies firms or other parties covered in the registermaintained under section 301of the Companies Act 1956 and as such the provision of clause4 (iii) (b)(c) & (d) are not applicable.

b) As per information & explanation given to us the Company has not taken any loansecured/ unsecured from Companies firms or other parties covered in the register maintainunder section 301 of the Act and as such the provision of clause 4(iii) e to g are notapplicable.

IV. There is an adequate internal control system commensurate with the size of thecompany and the nature of its business for the purchase of inventory and fixed assets andfor the sale of goods and services.

However during the year there is no sale of goods and services and purchase ofinventory.

V. a) The particulars of contract or arrangements referred to in Section 301 of the acthave been entered in the register required to be maintained under that section and

b) No such contracts or arrangements have been made during the year of purchase andsale.

VI. The Company has accepted deposits from the public in earlier years. However theDirectives issued by the Reserve Bank of India and the provision of Section 58A & 58AAor any other relevant provision of the Act and the Rules framed thereunder whereverapplicable have not been complied with. However the company has repaid Rs.345.77 lakhs tothe Fixed Deposit Holders after take over by the present management.

VII. The Company has an internal audit system commensurate with its size and nature ofbusiness. However it should be strengthened.

VIII. As both the plants are under suspension of operation cost records were notmaintained for the year and hence we are unable to make any comment.

IX. a) The Company is generally regular in depositing undisputed statutory dues of thecurrent financial year including Provident Fund. Employees State Insurance Income-taxSales Tax Wealth tax Service tax Customs duty Excise duty Cess and any otherStatutory dues to the extent applicable with the appropriate authorities.

However in respect of above statutory dues including for earlier years areoutstanding for a period of more than six months amounting to Rs. 489.52 lakhs as below :

Particulars Amount(Rs in lakhs)
Provident Fund 161.09
E.S.I 120.44
TDS 20.72
Professional Tax 6.40
Sales Tax 180.87
Total 489.52

b) Details with respect to the amount involved and the forum where dispute is pendingto be provided under this clause with regard to disputed liability in respect of salestax income tax as detailed in Note No. 2.24 are yet to be compiled by the management andtherefore we are unable to provide the same.

X. There is no accumulated loss at the end of the financial year. The Company hasincurred cash losses during the current year and also in the immediately precedingfinancial year.

XI. The management has settled all the liabilities of loan taken by earlier managementfrom financial institution / Bank except two loans amounting to Rs 1083.05 Lakhs.

XII. We have been informed and explained that the Company has not granted any loans andadvances on the basis of security by way of pledge of shares and debentures and othersecurities.

XIII. The Company is not a chit fund or a nidhi/mutual fund/ society. Accordingly theprovisions of clause 4(xiii) of the Companies (Auditor’s Report) Order 2003 are notapplicable to the Company.

XIV. The Company is not dealing in or trading in shares securities debentures andother Investments. Accordingly the provisions of Clause 4(xiv) of the Companies(Auditor’s report) Order 2003 are not applicable to the Company.

XV. As per information and explanations given to us and record verified by us theCompany has given guarantee for loans taken by its associates or subsidiaries or othersfrom bank or financial institutions which is not prejudicial to the interest of thecompany.

XVI. According to the information and explanations given to us no term loans wereraised and hence application for the purposes for which they were raised does not arise.

XVII. On the basis of information received from the management and based on the overallanalysis of the balance sheet of the Company funds raised on short term basis have notbeen utilized for long term investment.

XVIII. The Company has not made any preferential allotment of shares during the year.

XIX. The Company has not issued unsecured debentures during the year.

XX. The Company has not raised any money through a public issue during the year XXI.According to information and explanation given to us and based on our examination of thebooks and records of the Company in accordance with the generally accepted auditingpractices in India we have neither come across any incidence of fraud on or by theCompany nor have we been informed of any such case by the management.

for GORA & CO.
Chartered Accountants
Firm’s Registration No. 327183E
C/O Abhijit Dutt & Associates
8/2 K.S.Roy Road 2nd Floor G. C. Mukherjee
Room No. 2 & 3 Kolkata-700001 Partner
Dated: 29th May 2014 Membership No. 017630

INDEPENDENT AUDITORS’ REPORT

TO THE BOARD OF DIRECTORS OF DUNLOP INDIA LIMITED

Report on the Financial Statements

We have audited the accompanying consolidated financial statements of DUNLOP INDIALIMITED ("the Company") and its subsidiary/ies which comprises theconsolidated Balance sheet as at March 31 2014 and the consolidated Statement of Profitand Loss and the consolidated Cash Flow Statement for the year then ended and a summaryof significant accounting policies and other explanatory information.

Management’s Responsibility for the Consolidated Financial Statements

Management is responsible for the preparation of these consolidated financialstatements that give a true and fair view of the consolidated financial positionconsolidated financial performance and consolidated cash flows of the Company inaccordance with the accounting principles generally accepted in India. This responsibilityincludes the design implementation and maintenance of internal control relevant to thepreparation and presentation of the consolidated financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these consolidated financial statementsbased on our audit. We conducted our audit in accordance with the Standards on Auditingissued by the Institute of Chartered Accountants of India. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the consolidated financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the consolidated financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe consolidated financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal control relevant to the Company's preparationand presentation of the consolidated financial statements that give a true and fair viewin order to design audit procedures that are appropriate in the circumstances. An auditalso includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by management as well as evaluating theoverall presentation of the consolidated financial statements.

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

Basis of Qualified Opinion

We draw attention to following notes:

1) Refer to note no. 2.6 regarding non-provision of interest amounting to Rs. 1697.10laks on loan from a bank for working capital of Rs. 4025.90 lakhs.

2) Refer to note no. 2.8 regarding non provision of interest on certain loans againstwhich one time settlement is under active consideration (amount not ascertained).

3) Refer to note no. 2.9 regarding decapitalization of Assets of Rs. 29384.14 lakhsrepresenting refurbishment expenditure incurred in earlier years for restoration of fullcapacity of plants.

4) Refer to note no. 2.11 regarding providing of deferred tax assets amounting to Rs.9740.00 lakhs on carry forward loss and unabsorbed depreciation withought virtualcertainty of profit in future years.

5) We could not verified the investments held as non-current of book-value of Rs.7.00lakhs as neither the share certificates in physical form nor any demat certificateproduced to us.

The cumulative effects of above could not be ascertainable on the net Loss andshareholder's fund as amount on certain notes is not quantified.

Qualified Opinion

Subject to above in our opinion and to the best of our information and according tothe explanations given to us and based on the consideration of the reports of the otherauditors on the financial statements of the subsidiaries as noted below the consolidatedfinancial statements give a true and fair view in conformity with the accountingprinciples generally accepted in India:-

(a) in the case of the consolidated Balance Sheet of the state of affairs of theCompany as at 31st March 2014;

(b) in the case of consolidated Statement of Profit and Loss of the Profit for theyear ended on that date; and

(c) in the case of consolidated Cash Flow Statement of the Cash Flows for the yearended on that date.

Other Matter

We did not audit the financial statements of subsidiaries whose financial statementsreflect total assets(net) of Rs. 363.27 lakhs as at 31st March2014 total revenuesamounting to Rs.0.44 lakh and net cash inflows amounting to Rs. 0.26 lakh for the yearthen ended. These financial statements have been audited by other auditors whose reportshave been furnished to us by the Management and our opinion is based solely on thereports of the other auditors. Our opinion is not qualified in respect of this matter.

for GORA & CO.
Chartered Accountants
C/O Abhijit Dutt & Associates Firm s Registration No. 327183E
8/2 K.S.Roy Road 2nd Floor G. C. Mukherjee
Room No. 2 & 3 Kolkata-700001 Partner
Dated: 29th May 2014 Membership No. 017630