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DE Nora India Ltd.

BSE: 590031 Sector: Engineering
NSE: DENORA ISIN Code: INE244A01016
BSE 00:00 | 03 Dec 485.95 52.00
(11.98%)
OPEN

433.95

HIGH

520.70

LOW

425.60

NSE 00:00 | 03 Dec 486.05 51.70
(11.90%)
OPEN

434.35

HIGH

521.20

LOW

421.20

OPEN 433.95
PREVIOUS CLOSE 433.95
VOLUME 76044
52-Week high 520.70
52-Week low 207.80
P/E 38.88
Mkt Cap.(Rs cr) 258
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 433.95
CLOSE 433.95
VOLUME 76044
52-Week high 520.70
52-Week low 207.80
P/E 38.88
Mkt Cap.(Rs cr) 258
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

DE Nora India Ltd. (DENORA) - Auditors Report

Company auditors report

To the Members of De Nora India Limited

Report on the Audit of the Financial Statements Opinion

We have audited the accompanying financial statements of De Nora India Limited(‘the Company') which comprise the Balance Sheet as at March 31 2021 the Statementof Profit and Loss (including Other Comprehensive Income) the Statement of Changes inEquity and the Statement of Cash Flows for the year then ended and notes to the financialstatements including a summary of significant accounting policies and other explanatoryinformation.

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 theCompanies Act 2013 (‘the Act') in the manner so required and give a true and fairview in conformity with the Indian Accounting

Standards prescribed under section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended and other accounting principles generallyaccepted in India of the state of affairs of the Company as at March 31 2021 and itsprofit (financial performance including other comprehensive income) changes in equity .anditscashflowsforthe year ended onthat date

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statements sectionof our report. We are independent of the Company in accordance with the Code of Ethics issuedby the Institute of Chartered Accountants of India (ICAI) together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.

Emphasis of Matter

We draw attention to Note 42 to the financial statements which states that themanagement has made an assessment of the impact of COVID-19 pandemic on the Company'soperations financial performance and position as at and for the year ended March 31 2021and has concluded that there is in no impact which is required to be recognized in theFinancial Statements. Accordingly no adjustments have been made to the FinancialStatements. Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

Revenue Recognition
Refer the disclosures related to Revenue recognition in Note 2.6 to the accompanying Financial Statements. The Company's revenue is derived from sale and service activities relating to electrolytic and water technology products. The Company recognises revenue when performance obligations as per the underlying contracts are satisfied in accordance with Ind AS 115 - Revenue from Contract with Customers. The terms set out in the Company's sales contracts are varied which affect the timing of revenue recognition.
We have identified Revenue recognition as a Key Audit Matter because timing of revenue recognition involves significant management judgement.
Our audit procedures to assess the recognition of revenue included the following
a. Obtained an understanding and assessed the design implementation and operating effectiveness of internal controls over the existence accuracy and timing of revenue recognition.
b. Verified the contracts on test check basis to identify performance obligations under the contract and to assess whether revenue is recognised in the period in which the performance obligation is satisfied.
c. Performed substantive transactional testing on test check basis.
d. Performed substantive analytical procedure considering the revenue trends of the previous years and the relationship between revenue and other financial statement line items.
e. Reconciled the revenue with sales register.
f. Performed cut-off testing to validate the timing of revenue recognition determined by management.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Directors' Report includingAnnexures but does not include the financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the Financial Statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the FinancialStatements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance changes in equityand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the Accounting Standards specified under section 133 of theAct. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statement that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the financial statements the Board of Directors is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessthe Board of Directors either intends to liquidate the Company or to cease operations orhas no realistic alternative but to do so. Those Board of Directors are also responsiblefor overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

We give in "Annexure A" a detailed description of Auditor's responsibilitiesfor Audit of the Financial Statements.

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 "Annexure B" 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 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 (including Other ComprehensiveIncome) the Statement of Changes in Equity and the Statement of Cash Flow dealt with bythis Report are in agreement with the books of account. (d) In our opinion the aforesaidfinancial statements comply with the Accounting Standards specified under Section 133 ofthe Act read with Rule 7 of the Companies (Accounts) Rules 2014 and the Companies(Indian Accounting Standard) Rules 2015 as amended.

(e) On the basis of the written representations received from the directors as on March31 2021 taken on record by the Board of Directors none of the directors are disqualifiedas on March 31 2021 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 with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure C".

(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. TheCompany has disclosed the impact financialposition in its financial of pendinglitigations its statements Refer Note 38 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 intransferring amounts required to be transferred to the Investor Education and

Protection Fund by the Company

3. As required by The Companies (Amendment) Act 2017 in our opinion according toinformation explanations given to us the remuneration paid by the Company to itsdirectors is within the limits laid prescribed under Section 197 of the Act and the rulesthereunder.

For MSKA & Associates
Chartered Accountants
ICAI Firm Registration No. 105047W
Darryl Frank
Partner
Place : Panaji Goa Membership No. 104096
Date : May 10 2021 UDIN: 21104096AAAACE8678

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT ON EVEN DATE ON THE FINANCIAL STATEMENTSOF DE NORA INDIA LIMITED

Auditor's Responsibilities for the Audit of the Financial Statements

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficientand appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the company hasinternal financial controls with reference to financial statements in place and theoperating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

Evaluate the overall presentation structure and content of the financial whether thefinancial statements represent presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of theauditandsignificant findings including any significantdeficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

For MSKA & Associates
Chartered Accountants
ICAI Firm Registration No. 105047W
Darryl Frank
Partner
Place : Panaji Goa Membership No. 104096
Date : May 10 2021 UDIN: 21104096AAAACE8678

ANNEXURE B TO INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS OFDE NORA INDIA LIMITED FOR THE YEAR ENDED MARCH 31 2021

[Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' in the Independent Auditors' Report on even date to the Members of De NoraIndia Limited on the Financial Statements for the year ended March 31 2021] i. (a) Thecompany has maintained proper records showing full particulars including quantitativedetails and situation of fixed assets (Property Plant and Equipment).

(b) All the fixed assets (Property Plant and Equipment)havebeenphysicallyverifiedbythe management during the year and no material discrepancies were identified on suchverification.

(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. The inventory has been physically verified during theyear by the management. In our opinion the frequency of verification is reasonable. Nomaterial discrepancies were noticed on verification between the physical stock and thebook records. iii. The Company has not granted any loans secured or unsecured toCompanies Firms Limited Liability Partnerships (LLP) or other parties covered in theregister maintained under section 189 of the Companies Act 2013 (‘the Act').Accordingly the provisions stated in paragraph 3 (iii) (a) to (c) of the Order are notapplicable to the Company. iv. In our opinion and according to the information andexplanations given to us the Company has not either directly or indirectly granted anyloan to any of its directors or to any other person in whom the director is interested inaccordance with the provisions of section 185 of the Act and the Company has not madeinvestments through more than two layers of investment companies in accordance with theprovisions of section 186 of the Act. Accordingly provisions stated in paragraph 3(iv) ofthe Order are not applicable to the Company. v. In our opinion and according to theinformation and explanations given to us the Company has not accepted any deposits fromthe public within the meaning of Sections 73 to 76 of the Act and the rules framed thereunder. vi. The provisions of sub-section (1) of section 148 of the Act are not applicableto the Company as the Central Government of India has not specified the maintenance ofcost records for any of the products of the Company. Accordingly the provisions stated inparagraph 3 (vi) of the Order are not applicable to the Company. vii (a) According to theinformation and explanations given to us and the records of the Company examined by us inour opinion the Company has been generally regular in depositing with appropriateauthorities undisputed statutory dues relating to the investor education and protectionfund provident fund employees state insurance income-tax goods and service tax customduty and other statutory dues applicable to it. According to the information andexplanations given to us there are no arrears of outstanding undisputed statutory dues asat March 31 2021 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us and the records examinedby us there are no dues of income-tax goods and service tax custom duty cess and otherstatutory dues that has not been deposited with the appropriate authorities on account ofany dispute. viii. In our opinion and according to the information and explanations givento us the Company has not defaulted in repayment of dues to the banks. The Company doesnot have dues to financial institutions and has not issued any debentures and thereforerepayment to the financial institutions and debenture holders is not applicable. ix. TheCompany did not raise any money by way of initial public offer or further public offer(including debt instruments) and term loans during the year. Accordingly the provisionsstated in paragraph 3 (ix) of the Order are not applicable to the Company. x. During thecourse of our audit examination of the books and records of the Company carried out inaccordance with the generally accepted auditing practices in India and according to theinformation and explanations given to us we have neither come across any instance ofmaterial fraud by the Company or on the Company by its officersor employees. xi. Accordingto the information and explanations given to us and based on our examination of therecords of the Company the Company has paid / provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Act. xii. In our opinion and according to the information andexplanations given to us the Company is not a Nidhi Company. Accordingly the provisionsstated in paragraph 3(xii) of the Order are not applicable to the Company.

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. The details of suchtransactions have been disclosed financial statements as required under IndianAccounting the Standard (Ind AS) 24 "Related Party Disclosure" specified undersection 133 of the Act read with relevant rules issued thereunder. xiv. According to theinformation and explanations given to us and based on our examination of the records ofthe Company the Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year. Accordingly theprovisions stated in paragraph 3 (xiv) of the Order are not applicable to the Company. xv.According to the information and explanations given to us and based on our examination ofthe records of the Company the Company has not entered into non-cash transactions withdirectors or persons connected with him. Accordingly provisions stated in paragraph 3(xv)of the Order are not applicable to the Company. xvi. In our opinion the Company is notrequired to be registered under section 45 IA of the Reserve Bank of India Act 1934 andaccordingly the provisions stated in paragraph clause 3 (xvi) of the Order are notapplicable to the Company.

For MSKA & Associates
Chartered Accountants
ICAI Firm Registration No. 105047W
Darryl Frank
Partner
Place : Panaji Goa Membership No. 104096
Date : May 10 2021 UDIN: 21104096AAAACE8678

ANNEXURE C TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTSOF DE NORA INDIA LIMITED

[Referred to in paragraph 2(f) under ‘Report on Other Legal and RegulatoryRequirements' in the Independent Auditors' Report on even date to the Members of De NoraIndia Limited on the Financial Statements for the year ended March 31 2021]

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 with reference to financial statementsof De Nora India Limited ("the Company") as of March 31 2021 in conjunctionwith our audit of the financial statements 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 internal control with reference to financial statementscriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India (ICAI) (the"Guidance Note"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence toCompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note and the Standards on Auditing issued by ICAI anddeemed to be prescribed under section 143(10) of the Act to the extent applicable to anaudit of internal financial controls. Those Standards and the Guidance Note require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether internal financial controls with reference to financial statementswas established and maintained and if such controls operated effectively in all materialrespects. Our audit involves performing procedures to obtain audit evidence about theinternal financial controls with reference to financial statements and their operatingeffectiveness. Our audit of internal financial controls statements included obtaining anunderstanding of internal financial controls with reference to financial assessing therisk that a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the financial statements 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 withreference to financial statements.

Meaning of Internal Financial Controls With Reference to Financial Statements

A Company's internal financial control with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A Company's internal financial control withreference to financial statements includes those policies and procedures that (1) pertainto the maintenance of records that in reasonable detail accurately and fairly reflectthe transactions and dispositions of the assets of the company; (2) 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 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 effect on the financial statements.

Inherent Limitations of Internal Financial Controls With Reference to FinancialStatements

Because of the inherent limitations financial statements including the ofinternal controls with reference to possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statementstofutureperiodsaresubjecttotheriskthattheinternalfinancialcontrol with reference tofinancial statements 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 internal financial controlswith reference to financial statements and such internal financial controls with referenceto financial statements were operating effectively as at March 31 2021 based on theinternal control with reference to financial statements criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote.

For MSKA & Associates
Chartered Accountants
ICAI Firm Registration No. 105047W
Darryl Frank
Partner
Place : Panaji Goa Membership No. 104096
Date : May 10 2021 UDIN: 21104096AAAACE8678

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