|BSE: 531227||Sector: Others|
|NSE: N.A.||ISIN Code: INE907E01010|
|BSE 00:00 | 18 Jun||35.05||
|NSE 05:30 | 01 Jan||Deco-Mica Ltd|
Deco-Mica Ltd. (DECOMICA) - Auditors Report
Company auditors report
The Members of
Report on the Audit of the Standalone Financial Statements Opinion
1. We have audited the accompanying Standalone Financial Statementsof Deco Mica Limited (the 'Company') which comprise the Balance Sheet as at 31st March2020 the Statement of Profit and Loss (including Other Comprehensive Income) the CashFlow Statement and the Statement of Changes in Equity for the year then ended and asummary of the significant accounting policies and other explanatory information.
2. In our opinion and to the best of our information and accordingto the explanations given to us the aforesaid Standalone Financial Statements give theinformation required by the Companies Act 2013 (the 'Act') in the manner so required andgive a true and fair view in conformity with the accounting principles generally acceptedin India including Indian Accounting Standards ('Ind AS') specified under Section 133 ofthe Act of the state of affairs of the Company as at 31st March 2020 and its profit(including other comprehensive income) its cash flows and the changes in equity for theyear ended on that date.
Basis for Opinion
3. We conducted our audit in accordance with the Standards onAuditing specified under Section 143(10) of the Act. Our responsibilities under thosestandards are further described in the Auditor's Responsibilities for the Audit of theStandalone Financial Statements section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia ('ICAI') together with the ethical requirements that are relevant to our audit ofthe Standalone Financial Statements under the provisions of the Act and the rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.
Emphasis of Matter
4. As described in Note 46 to the standalone annual financialstatements the extent to which the COVID-19 pandemic will impact the company's operationsand financial performance is dependent on future developments which are highly uncertain.
Our opinion is not modified in respect of the above matters.
Key Audit Matters
5. Key audit matters are those matters that in our professionaljudgment were of most significance in our audit of the Standalone Financial Statementsof the current period. These matters were addressed in the context of our audit of theStandalone Financial Statements as a whole and in forming our opinion thereon and we donot provide a separate opinion on these matters.
6. Key audit matter identified in our audit is on recoverabilityassessment of trade receivables as follows:
Information other than the Financial Statements and Auditor'sReport thereon
7. The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the AnnualReport but does not include the Standalone Financial Statements and our auditor's reportthereon. The Annual Report is expected to be made available to us after the date of thisauditor's report.
Our opinion on the Standalone Financial Statements does not cover theother information and we will not express any form of assurance conclusion thereon.
In connection with our audit of the Standalone Financial Statementsour responsibility is to read the other information identified above when it becomesavailable and in doing so consider whether the other information is materiallyinconsistent with the Standalone Financial Statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated.
When we read the Annual Report if we conclude that there is a materialmisstatement therein we are required to communicate the matter to those charged withgovernance and as may be legally advised.
Responsibilities of Management and Those Charged with Governance forthe Standalone Financial Statements
8. The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Act with respect to the preparation of these StandaloneFinancial Statements that give a true and fair view of the state of affairs (financialposition) profit or loss (financial performance including other comprehensive income)changes in equity and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Ind AS specified under Section 133of the Act. This responsibility also includes maintenance of adequate accounting recordsin accordance 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 Standalone Financial Statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
9. In preparing the financial statements management is responsiblefor assessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.
10. Those Board of Directors are also responsible for overseeingthe Company's financial reporting process.
Auditor's Responsibilities for the Audit of the FinancialStatements
11. Our objectives are to obtain reasonable assurance about whetherthe Standalone Financial Statements as a whole are free from material misstatementwhether due to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with Standards on Auditing will always detect a materialmisstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if individually or in the aggregate they could reasonably beexpected to influence the economic decisions of users taken on the basis of thesefinancial statements.
12. As part of an audit in accordance with Standards on Auditingwe exercise professional judgment and maintain professional scepticism throughout theaudit. We also:
Identify and assess the risks of material misstatement of thefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.
Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. UnderSection 143(3) (i) of the Act we are also responsible for explaining our opinion onwhether the Company has adequate internal financial controls system in place and theoperating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the Standalone Financial Statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the Standalone FinancialStatements represent the underlying transactions and events in a manner that achieves fairpresentation.
13. We communicate with those charged with governance regardingamong other matters the planned scope and timing of the audit and significant auditfindings including any significant deficiencies in internal control that we identifyduring our audit.
14. We also provide those charged with governance with a statementthat we have complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
15. From the matters communicated with those charged withgovernance we determine those matters that were of most significance in the audit of theStandalone Financial Statements of the current period and are therefore the key auditmatters. We describe these matters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.
Report on Other Legal and Regulatory Requirements
16. As required by the Companies (Auditor's Report) Order 2016(the 'Order') issued by the Central Government of India in terms of Section 143(11) of theAct we give in the Annexure A a statement on the matters specified in paragraphs 3 and 4of the Order.
17. Further to our comments in Annexure A as required by Section143(3) of the Act we report that:
a) we have sought and obtained all the information and explanationswhich to the best of 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 beenkept by the Company so far as it appears from our examination of those books;
c) the Standalone Financial Statements dealt with by this report are inagreement with the books of account;
d) in our opinion the aforesaid Standalone Financial Statements complywith Ind AS specified under Section 133 of the Act;
e) on the basis of the written representations received from thedirectors and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 from being appointed as a director in terms of Section164(2) of the Act;
f) we have also audited the internal financial controls over financialreporting (IFCoFR) of the Company as on 31st March 2020 in conjunction with our audit ofthe Standalone Financial Statements of the Company for the year ended on that date and ourreport as per Annexure B expressed an unmodified opinion;
g) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:
i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone Ind AS financial statements.(Refer Note 35 to thefinancial statements);
ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company.
ANNEXURE "A" TO INDEPENDENT AUDITORS' REPORT
Referred to in paragraph 15 of our Report of even date to the Membersof DECO-MICA LIMITED for the year ended 31st March 2020.
1. In respect of Fixed Assets :
(a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of Fixed Assets on the basis of availableinformation.
(b) As per the information and explanations given to us the managementat reasonable intervals during the year in accordance with a programme of physicalverification physically verified the fixed assets and no material discrepancies werenoticed on such verification as compared to the available records.
(c) As explained to us the title deeds of all the immovable propertiesare held in the name of the company.
2. In respect of its Inventories :
(a) The inventory has been physically verified during the year by themanagement. In our opinion the frequency of verification is reasonable.
(b) The procedures of physical verification of inventories followed bythe management are reasonable and adequate in relation to the size of the Company and thenature of its business.
(c) On the basis of our examination of the records of inventory we areof opinion that the Company is maintaining proper records of inventory. The discrepanciesnoticed on verification between the physical stocks and books records were not material.
3. In respect of Loans and Advances granted during the year:
As regards the loans the company has not granted any loans securedor unsecured during the year under audit to the companies firms Limited LiabilityPartnership or other parties covered in the register maintained under section 189 of thecompanies Act 2013 and therefore the clauses (iii) (a) to (c) of the companies(Auditor's Report) Order 2016 are not applicable.
4. Loans Investments and gurantees:
The company has not granted any loan or made investments or providedany guarantee or security to the parties covered under section 185 and 186. Thereforeclauses (iv) of companies (Auditor's Report) Order 2016 is not applicable.
5. During the year the company has not accepted any deposits andhence the directives issued by the Reserve Bank of India and the provisions of sections 73to 76 or any other relevant provisions of the Companies Act and the rules framed thereunder are not applicable to the company. Therefore clauses (v) of companies (Auditor'sReport) Order 2016 is not applicable.
6. We have broadly reviewed the books of accounts relating tomaterials labour and other items of cost maintained by the company pursuant to the Rulesmade by the Central Government for the maintenance of cost records under Section 148 (1)of the Companies Act 2013 and we are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. We have not however made a detailedexamination of the records with a view to determine whether they are accurate or complete.
7. In respect of Statutory Dues :
(a) According to the records of the Company the Company is by andlarge regular in depositing with appropriate authorities undisputed statutory duesincluding provident fund employees' state insurance income tax Goods and ServiceTax(GST) duty of customs duty of excise cess and any other statutory due except therewere delay in payment of Professional Tax & TDS.
According to the information and explanations given to us undisputedamounts payable in respect statutory dues no amount was outstanding as at 31st March 2020for a period of more than six months from the date they became payable except there is anundisputed amount of Rs.23.28 lacs in respect of Advance Tax of current financial yearwhich has remained unpaid and Interest and fees payable on TDS Rs.1.13 Lacs for a periodexceeding six months from the date it became payable.
(b) According to the records of the company there is no dues of incometax sales tax wealth tax or service tax or duty of customs or duty of excise or valueadded tax which have not been deposited on account of dispute.
8. Based on our audit procedure and according to the informationand explanation given to us we are of the opinion that the Company has not defaulted inrepayment of dues to a Financial Institutions Banks or debenture holders.
9. According to the information and explanations given to us thecompany had not raised any money by way of public issue during the year. According to theinformation and explanations given to us and on an overall examination of the balancesheet of the company in our opinion the term loans taken during the year were appliedfor the purpose for which they were obtained.
10. Based upon the audit procedures performed and information andexplanations given by the management we report that no fraud by the Company or any fraudon the company by it's officer or employees has been noticed or reported during the courseof our audit.
11. In our opinion and according to the information andexplanations given to us the company had paid managerial remuneration which is inaccordance with the requisite approvals mandated by the provisions of section 197 readwith schedule V of The Companies Act 2013.
12. In our opinion and according to the information andexplanations given to us the provisions of special statute applicable to chit funds andnidhi / mutual benefit funds / societies are not applicable to the company. Hence clause(xii) of the Company's (Auditor's Report) Order 2016 is not applicable.
13. In our opinion and according to the information andexplanations given to us the transactions entered by the company with related parties arein compliance with the provisions of section 177 and 188 of The Companies Act 2013 anddetails thereof are properly disclosed in the financial statements.
14. In our opinion and according to the information and explanationgiven to us no preferential allotment or private placement of shares or fully or partlyconvertible debentures made during the year under review and hence clause (xiv) of theCompany's (Auditor's Report) Order 2016 is not applicable.
15. The company had not entered in to any non-cash transactionswith the directors or persons connected with him during the year and hence clause (xv) ofCompany's (Auditor's Report) Order 2016 is not applicable. 16. In our opinion andaccording to the information and explanation given to us the company is not registeredunder section 45-IA of Reserve Bank of India Act 1934 hence clause (xvi) of Company's(Auditor's Report) Order 2016 is not applicable.
ANNEXURE "B" TO INDEPENDENT AUDITORS' REPORT
Referred to in paragraph 17 (f) of our Report of even date to theMembers of DECO-MICA LIMITED for the year ended 31st March 2020.
Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financialreporting of DECO-MICA LIMITED as of 31st March 2020 inconjunction with our audit of the Standalone Financial Statements of the Company for theyear ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India. 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.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of Standalone Financial Statements for external purposes inaccordance with generally accepted accounting principles. A company's internal financialcontrol over financial reporting includes those policies and procedures that (1)Pertain tothe maintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) Provide reasonableassurance that transactions are recorded as necessary to permit preparation of StandaloneFinancial Statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements.
Inherent Limitations of Internal Financial Controls over FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting including the 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 overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31st March 2020 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.