You are here » Home » Companies » Company Overview » Daikaffil Chemicals India Ltd

Daikaffil Chemicals India Ltd.

BSE: 530825 Sector: Industrials
NSE: N.A. ISIN Code: INE789B01018
BSE 00:00 | 20 Feb 22.20 0.75
(3.50%)
OPEN

22.50

HIGH

23.50

LOW

21.25

NSE 05:30 | 01 Jan Daikaffil Chemicals India Ltd
OPEN 22.50
PREVIOUS CLOSE 21.45
VOLUME 385
52-Week high 44.40
52-Week low 16.45
P/E 14.23
Mkt Cap.(Rs cr) 13
Buy Price 21.50
Buy Qty 5.00
Sell Price 22.40
Sell Qty 25.00
OPEN 22.50
CLOSE 21.45
VOLUME 385
52-Week high 44.40
52-Week low 16.45
P/E 14.23
Mkt Cap.(Rs cr) 13
Buy Price 21.50
Buy Qty 5.00
Sell Price 22.40
Sell Qty 25.00

Daikaffil Chemicals India Ltd. (DAIKAFFILCHEM) - Auditors Report

Company auditors report

To the Members of Daikaffil Chemicals India Limited Report on the Ind AS FinancialStatements

We have audited the accompanying standalone Ind AS financial statements of DaikaffilChemicals India Limited ("the Company") which comprise the Balance Sheet as atMarch 31 2018 the Statement of Profit and Loss including the statement of OtherComprehensive Income the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and a summary of significant accounting policies and otherexplanatory information.

Management's Responsibility for the 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 Ind AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) specified undersection 133 of the Act. read with Rule 7 of the Companies (Accounts) Rules 2014 and theCompanies (Indian Accounting Standards) Rules 2015 as amended. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and the designimplementation and maintenance of adequate internal financial control that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the Ind AS financial statements that give a trueand fair 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 Ind AS financial statements basedon our audit. We have taken into 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 of the Ind ASfinancial statements in accordance with the Standards on Auditing issued by the Instituteof Chartered Accountants of India as specified under Section 143(10) of the Act. ThoseStandards require that we comply with ethical requirements and plan and perform the auditto obtain reasonable assurance about whether the financial statements are free frommaterial 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 Ind ASfinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of theInd AS financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the Ind AS financial statements. We believe that the audit evidence we have obtained isto provide a basis for our audit opinion on the Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us theIndASfinancialstatements give the information required by the Act in themanner 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 March31 2018 its profit including other comprehensive income its cash flows and the changesin equity for the year ended on that date.

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 Act we give in the Annexure A a statement on the matters specified in paragraphs 3and 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 ouropinion proper books of account as required by law have been kept by the Company so faras it appears from our examination of those books;

(c) The Balance Sheet Statement of Profit and Loss including the Statement of OtherComprehensive Income the Cash Flow Statement and Statement of Changes in Equity dealtwith by this Report are in agreement with the books of account; (d) In our opinion theaforesaid Ind AS financial statements comply with the Accounting Standards specified undersection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014Companies (Indian Accounting Standards) Rules 2015 as amended; (e) On the basis ofwritten representations received from the directors as on March 31 2018 and taken onrecord by the Board of Directors none of the directors is disqualified as on March 312018 from being appointed as a director in terms of section 164 (2) of the Act; (f) Withrespect to the adequacy of the internal financial controls over financial reporting of theCompany and the operating effectiveness of such controls refer to our separate Report in"Annexure B" to this report; (g) With respect to the other matters to beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 as amended in our opinion and to the best of our information andaccording to the explanations given to us: (i) The company has disclosed the impact ofpending litigation on its financial position in its standalone financial statement.

(ii) The Company has made provision as required under the applicable law or AccountingStandards for material foreseeable losses if any on long term contracts includingderivatives contracts.

(iii) There has been no delay in transferring amounts required to be transferred tothe investor's education and protection fund by the company.company.

For MANISH PATEL & COMPANY
Chartered Accountants
Firm Reg. No. 126272W
MANISH PATEL
Proprietor
Membership No.107367
Mumbai: 28th May 2018

ANNEXURE A TO THE AUDITORS REPORT

ADDITIONAL INFORMATION ANNEXED THE INDEPENDENT AUDITORS' REPORT

1. a. Records showing full particulars including quantitative details and situation offixed assets have not been adequately maintained by the Company. b. As explained to usthe fixed assets have been physically verified by the management once during the year andin our opinion the frequency of verification is reasonable having regard to the size ofthe company and nature of its assets. No material discrepancies were noticed on suchphysical verification. c. During the year the Company has not disposed off anysubstantial / major part of fixed assets. d. According to the information and explanationsgiven to us and the records of the Company examined by us the title deeds of theimmoveable properties are held in the company's name.

2. As per information and explanations given to us the inventories have beenphysically verified by the management during the year at reasonable intervals. In ouropinion the frequency of verification is reasonable. The discrepancies noticed onverification between the physical stocks and the book records were not material inrelation to the size of the Company and the same have been properly dealt with in thebooks of account.

3. The Company has not granted / taken any loans secured or unsecured to / fromCompanies firms limited liability partnerships or other parties covered in the registermaintained under section 189 of the Companies Act 2013.

4. In our opinion and according to the information and explanations given to us theCompany has complied with provisions of section 185 & 186 of the Companies Act 2013in respect of loans investments guarantees and securities.

5. The Company has not accepted any deposits during the year from the public within themeaning of provisions of the Companies Act 2013 and rules made there under.

6. As informed to us the Central Government has not prescribed maintenance of CostRecords under sub section (1) of section 148 of the Act.

7. a. According to the information and explanations given to us and the records of theCompany examined by us in our opinion the Company has generally been regular indepositing undisputed statutory dues including Provident Fund Investor Education andProtection Fund Employees' State Insurance Income Tax Sales Tax Wealth Tax CustomsDuty Excise Duty cess and any other statutory dues with the appropriate authorities. b.According to the information and explanation given to us and the records of the Companyexamined by us there are no disputed amounts in case of dues of sales tax/incometax/custom duty/wealth tax/excise duty/cess.

8. In our opinion and according to the information and explanation given to us theCompany has not defaulted in the repayment of dues to banks. There are no dues tofinancial institutions and debenture holders.

9. The Company did not raise any moneys by way of initial /further public offer duringthe year. In our opinion and according to the information and explanations given to usthe term loans have been applied for the purposes for which they have been obtained.

10. 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.

11. 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 of the Act.

12. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. 13. According to the information and explanations given tous and based on our examination of the records of the Company transactions with relatedparties are in compliance with sections 177 & 188 of the Act and details of suchtransactions have been disclosed in the financial statements as per applicable accountingstandards.

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

15. 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.

16. The Company is not required to be registered under section 45IA of the Reserve Bankof India Act 1934.

For MANISH PATEL & COMPANY
Chartered Accountants
Firm Reg. No. 126272W
MANISH PATEL
Proprietor
Membership No.107367
Mumbai: 28th May 2018

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 DaikaffilChemicals India March 31 2017 in conjunction with our audit of the standalone financialstatements 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 over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls over Financial Reporting issued by theInstitute of Chartered Accountants of India (‘ICAI'). These responsibilities includethe design implementation and maintenance of adequate internal financial were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparations of reliable financial information as required under theCompaniesAct 2013.

Auditor's 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 required 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 operation effectiveness of internal control based on the assessment risk. Theprocedures selected depend on the auditor's judgment including the assessment of the riskof material misstatement of the financial 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 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 thepresentation of financial statements for external purpose 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 transaction anddisposition of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparationoffinancialstatement inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effects 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 anyevaluationoftheinternalfinancialcontrols over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree 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 March 31 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 MANISH PATEL & COMPANY
Chartered Accountants
Firm Reg. No. 126272W
MANISH PATEL
Proprietor
Membership No.107367
Mumbai: 28th May 2018