You are here » Home » Companies » Company Overview » Deepak Fertilizers & Petrochemicals Corp Ltd

Deepak Fertilizers & Petrochemicals Corp Ltd.

BSE: 500645 Sector: Industrials
NSE: DEEPAKFERT ISIN Code: INE501A01019
BSE 00:00 | 25 Nov 802.75 2.60
(0.32%)
OPEN

805.95

HIGH

815.00

LOW

797.40

NSE 00:00 | 25 Nov 803.40 3.10
(0.39%)
OPEN

802.50

HIGH

815.05

LOW

797.05

OPEN 805.95
PREVIOUS CLOSE 800.15
VOLUME 13046
52-Week high 1061.70
52-Week low 350.40
P/E 34.66
Mkt Cap.(Rs cr) 10,134
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 805.95
CLOSE 800.15
VOLUME 13046
52-Week high 1061.70
52-Week low 350.40
P/E 34.66
Mkt Cap.(Rs cr) 10,134
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Deepak Fertilizers & Petrochemicals Corp Ltd. (DEEPAKFERT) - Auditors Report

Company auditors report

To the Members of

Deepak Fertilisers And Petrochemicals Corporation Limited

Report on the Audit of the Standalone Financial Statements

OPINION

We have audited the Standalone Financial Statements of DeepakFertilisers And Petrochemicals Corporation Limited ("the Company") whichcomprise the Standalone Balance Sheet as at March 31 2022 the Standalone Statement ofProfit and Loss (including Other Comprehensive Income) the Standalone Statement ofChanges in Equity and the Standalone Statement of Cash Flows for the year then ended andnotes to the Standalone Financial Statements including a summary of significantaccounting policies and other explanatory information (hereinafter referred to as"the Standalone Financial Statements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Standalone Financial Statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2022its profit and other comprehensive income its changes in equity and its cash flows forthe year ended on that date.

BASIS FOR OPINION

We conducted our audit in accordance with the Standards on Auditing("SAs") specified under section 143(10) of the Act. Our responsibilities underthose Standards are further described in the Auditor?s Responsibilities for the Auditof the Standalone Financial Statements section of our report. We are independent of theCompany in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India together with the ethical requirements that are relevant to our auditof the 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 have obtained is sufficient andappropriate to provide a basis for our opinion.

KEY AUDIT MATTERS

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the Standalone Financial Statements of thecurrent period. These matters were addressed in the context of our audit of the StandaloneFinancial Statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.

OTHER INFORMATION

The Company?s Board of Directors is responsible for the otherinformation. The other information comprises the Management Discussion and Analysis; Boardof Directors? Report along with its Annexures and Corporate Governance Reportincluded in the Annual Report but does not include the Standalone Financial Statements andour auditor?s report thereon. Our opinion on the Standalone Financial Statements doesnot cover the other information and we do not express any form of assurance conclusionthereon.

In connection with our audit of the Standalone Financial Statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the Standalone Financial Statements orour knowledge obtained in the audit or otherwise appears to be materially misstated. Ifbased on the work we have performed we conclude that there is a material misstatement ofthis other information; we are required to report that fact. We have nothing to report inthis regard.

RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FORTHE STANDALONE FINANCIAL STATEMENTS

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 financial position financialperformance (including other comprehensive income) changes in equity and cash flows ofthe Company in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards ("Ind AS") specified under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the StandaloneFinancial Statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the Standalone Financial Statements the management isresponsible for assessing the Company?s ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing theCompany?s financial reporting process.

AUDITOR?S RESPONSIBILITIES FOR THE AUDIT OF THE STANDALONEFINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether theStandalone Financial Statements as a whole are free from material misstatement whetherdue 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 SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these Standalone Financial Statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit.

We also:

• Identify and assess the risks of material misstatement of theStandalone Financial Statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal controls 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 expressing our opinion onwhether the Company has adequate internal financial controls with reference to theStandalone Financial Statements in place and the operating 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 thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company?s ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor?sreport to the related disclosures in the Standalone Financial Statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor?s report. However future events orconditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of theStandalone Financial Statements including the disclosures and whether the StandaloneFinancial Statements represent the underlying transactions and events in a manner thatachieves fair presentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal controls that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave 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.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the StandaloneFinancial Statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor?s report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor?s Report) Order 2020("the Order") issued by the Central Government of India in terms of sub-section(11) of section 143 of the Act we give in the Annexure A; a statement on the mattersspecified in paragraphs 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 explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

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 Balance Sheet the Statement of Profit and Loss (including othercomprehensive income) the Statement of Changes in Equity and the Statement of Cash Flowsdealt with by this Report are in agreement with the books of account.

d) In our opinion the aforesaid Standalone Financial Statements complywith the Indian Accounting Standards specified under Section 133 of the Act read withCompanies (Indian Accounting Standards) Rules 2015 as amended.

e) On the basis of the written representations received from thedirectors as on March 31 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2022 from being appointed as a director in termsof Section 164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls withreference to the Standalone Financial Statements of the Company and the operatingeffectiveness of such controls refer to our separate Report in Annexure B.

g) As required by section 197 (16) of the Act; in our opinion andaccording to information and explanation provided to us the remuneration paid/ providedby the Company to its directors for the current year is in accordance with the provisionsof section 197 of the Act and remuneration paid/ provided to directors is not in excess ofthe limit laid down under this section.

h) With respect to the other matters to be included in theAuditor?s Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:

(i) The Company has disclosed the impact of pending litigations on itsfinancial position in its Standalone Financial Statements – Refer Note 42;

(ii) The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses as at March 312022.

(iii) There is no delay in amount required to be transferred to theInvestor Education and Protection Fund by the Company during the year ended March 31 2022except the following:

Year Type of dividend Dividend unpaid in Lakhs Status
1997- 1998 Final 0.37 Not yet transferred to Investor Education and Protection Fund due to legal dispute with regards to ownership of shares which remains unresolved

(iv) (a) The management has represented to us that to the best of itsknowledge and belief other than as disclosed in the notes to the accounts (refer note 13)to the Standalone Financial Statements no funds have been advanced or loaned or invested(either from borrowed funds or share premium or any other sources or kind of funds) by theCompany to or in any other person or entity including foreign entities("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediary shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theCompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries.

(b) the management has represented to us that to the best of itsknowledge and belief no funds have been received by the Company from any person or entityincluding foreign entities ("Funding Parties") with the understanding whetherrecorded in writing or otherwise that the Company shall whether directly or indirectlylend or invest in other persons or entities identified in any manner whatsoever by or onbehalf of the Funding Party ("Ultimate Beneficiaries") or provide any guaranteesecurity or the like on behalf of the Ultimate Beneficiaries.

(c) Based on the information and explanation given to us and auditprocedures performed as considered reasonable and appropriate in the circumstancesnothing has come to our notice that has caused us to believe that the representations madeby the management and as mentioned under sub-clause (iv)(a) and (iv)(b) above contain anymaterial misstatement.

(v) The dividend declared and paid during the year by the Company is incompliance with Section 123 of the Act.

(vi) The requirement to the use of accounting software for maintainingCompany?s books of account which has a feature of recording audit trail (edit log)facility is deferred to financial years commencing on or after April 1 2023therefore reporting under Rule 11(g) of Companies (Audit & Auditors) Rules 2014 isnot applicable for financial year ended on March 31 2022.

ANNEXURE A TO THE INDEPENDENT AUDITORS? REPORT

Referred to in paragraph 1 under the heading "Report on Otherlegal and Regulatory Requirements" of our report on even date:

i. (a) (A) The Company is maintaining proper records showing fullparticulars including quantitative details and situation of property plant andequipment.

(B) The Company is maintaining proper records showing full particularsof intangible assets.

(b) The Company has a regular program of physical verification of itsproperty plant and equipment by which its property plant and equipment are verified in aphased manner over a period of three years. In our opinion the periodicity of physicalverification of property plant and equipment is reasonable having regard to the size ofthe Company and the nature of its assets. In accordance with this program majority of theproperty plant and equipment were verified during the year and according to theinformation and explanation provided to us by the Management no material discrepancieswere noticed on such verification.

(c) According to the information and explanations given to us and onthe basis of our examination of the records of the Company title deeds of immovableproperties as disclosed in the Standalone Financial Statements (refer note 3) are held inthe name of the Company except as specified below:

Description of Property Gross carrying Value (` Lakhs) Held in name of Whether promoter director or their relative or employee Period held – indicate range where appropriate Reason for not being held in name of company
Land and building 17193 Yerrowda Investments Limited No it is Joint Operation From 1998 Economic rights held by the Company

(d) According to the information and explanations provided to us theCompany has not revalued its property plant and equipment (including Right of Use assets)or intangible assets or both during the year.

(e) According to the information and explanations provided to us thereare no proceedings that have been initiated or are pending against the Company for holdingany benami property under the Prohibition of Benami Property Transactions Act 1988 (asamended in 2016) and rules made thereunder.

ii. (a) The inventory except goods in transit has been physicallyverified by the management during the year. In our opinion the frequency coverage andprocedure of such verification is reasonable and appropriate. In respect ofgood-in-transit subsequent goods delivery documents have been verified by the management.The discrepancies noticed on verification between the physical stocks and the book recordswere not 10% or more in the aggregate for each class of inventory and have been properlydealt with in the books of account.

(b) According to the information and explanations provided to us theCompany has been sanctioned working capital limits in excess of five crore rupees inaggregate from banks or financial institutions on the basis of security of currentassets.

The Management of the Company has provided us with the quarterlyreturns or statements which they have represented to us have been filed by the Companywith their banks or financial institutions based on the sanction terms. We have comparedsuch quarterly returns or statements with the unaudited books of accounts for the quartersending June 2021 September 2021 December 2021 and March 31 2022. Based on ourprocedures and in our opinion the quarterly returns or statements filed by the Companywith such banks or financial institutions are in agreement/reconciled with the books ofaccount of the Company.

iii. According to the information and explanations provided to usduring the year the Company has made investments in other entities. The Company hasprovided guarantee and has granted unsecured loans to its subsidiary companies.

(a) According to the information and explanations provided to usduring the year the Company has provided loans and stood guarantee for its subsidiarycompanies.

Aggregate amount during the year (` Lakhs) Balance outstanding at the balance sheet date (` Lakhs) Subsidiaries joint ventures associates and others Nature of transaction
52880 96506 Wholly owned subsidiary company Unsecured Loan
204400 283710 against which 150291 loan is outstanding Subsidiary and step-down subsidiaries Corporate Guarantees

(b) According to the information and explanations provided to us andbased on our review of the terms conditions and circumstances the investments made andguarantees provided and the terms and conditions of the grant of loans are not prejudicialto the Company?s interest.

(c) According to the information and explanations provided to us inrespect of loans the schedule of repayment of principal and payment of interest have beenstipulated. The repayments or receipts are as per the schedule stipulated.

(d) According to the information and explanations provided to us andbased on the terms and conditions of the loans no amount is overdue.

(e) According to the information and explanations provided to us noloan granted which has fallen due during the year has been renewed or extended or freshloans granted to settle the over dues of existing loans given to the same parties.

(f) According to the information and explanations provided to us theCompany has granted loans repayable on demand of `76.75 Lakhs. These have been given torelated parties as defined in clause (76) of section 2 of the Act (refer note 13 to theStandalone Financial Statement) which are 0.08 % of the total loans to related parties.

iv. In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of Sections 185 and 186 of theAct with respect to loans investments guarantees and security as applicable.

v. According to the information and explanations given to us theCompany has not accepted any deposits from the public within the meaning of Sections 73 to76 of the Act and the Rules made thereunder or amounts which are deemed to be deposits.Accordingly reporting on clause 3 (v) of the Order is not applicable.

vi. We have broadly reviewed the cost records maintained by the Companypursuant to the Companies (Cost Records and Audit) Rules 2014 prescribed by the CentralGovernment under Section 148(1) of the Act and are of the opinion that prima facie theprescribed 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.

vii. (a) According to the information and explanations given to us andon the basis of our examination of the records of the Company amounts deducted/ accruedin the books of account in respect of undisputed statutory dues including Goods andServices Tax Provident Fund Employees? State Insurance Income-Tax Sales-TaxService Tax Duty of Customs Duty of Excise Value Added Tax Cess and any other materialstatutory dues have been regularly deposited during the year by the Company with theappropriate authorities. As explained to us during the year the Company did not have anydues on account of Cess.

According to the information and explanations given to us noundisputed amounts payable in respect of statutory dues referred in sub clause (a) abovewere in arrears as at March 31 2022 for a period of more than six months from the datethey became payable.

(b) According to the information and explanations given to us thereare no dues of statutory dues referred in sub clause (a) above as at March 31 2022 whichhave not been deposited by the Company on account of disputes except for the following:

Name of Statute Nature of Dues Amount (` Lakhs)# Amount paid under protest (` Lakhs) Period to which the amount relates Forum where the dispute is pending
The Income Tax Act 1961 Income tax demands 2.26 - Assessment Year 1993- 1994 Income Tax Appellate Tribunal
The Income Tax Act 1961 Income tax demands 6500.20 1901 Assessment Years 1997-1998 2013-2014 to 2015-2016 2019 -2020 and 2020-21 Commissioner of Income Tax (Appeals)
The Income Tax Act 1961 Income tax demands 10.89 - Assessment Years 1993- 1994 and 2003-2004 Income Tax Assessing Officer
The Central Excise Act 1944 Excise duty demands 1355.17 19.66 Financial Years 2007-2008 to 2010-2011 and 2014- 2015 Customs Excise and Service Tax Appellate Tribunal
The Central Excise Act 1944 Excise duty demands 892.74 - Financial Years 2008-2009 to 2009-2010 Supreme Court
The Central Excise Act 1944 Excise duty demands 28.88 - Financial Year 2017-2018 Commissioner of GST & Central Excise
Finance Act 1994 (Service Tax) Service tax Demands 431.00 18 Financial Year 2015-2016 Customs Excise and Service Tax Appellate Tribunal
Finance Act 1994 (Service Tax) Service tax Demands 1881.00 - Financial Years 2006- 2007 to 2011- 2012 Bombay High Court
Finance Act 1994 (Service Tax) Service tax Demands 142.00 7.05 Financial Years 2016-2017 and 2017-2018 Customs Excise and Service Tax Appellate Tribunal Ahmedabad
The Bombay Sales Tax Act 1959 Sales tax demands 71.55 - Financial Year 2004-2005 Maharashtra Sales Tax Tribunal
The Central Sales Tax Act 1956 Sales tax demands 2071.82 155 Financial Years 2004-2005 to 2006-2007 and 2010- 2011 to 2013-2014 Maharashtra Sales Tax Tribunal
The Central Sales Tax Act 1956 Sales tax demands 775.47 233.00 Financial Years 2005-2006 to 2009-2010 Additional Commissioner of Commercial Taxes (Appeals) Bengaluru
The Central Sales Tax Act 1956 Sales tax demands 912.20 - Financial Year 2014-2015 Joint Commissioner of Appeals of Sales Tax Pune
The Maharashtra Value Added Tax Act 2002 Sales tax demands 876.97 27.00 Financial Years 2005-2006 2011-2012 and 2012-2013 Maharashtra Sales Tax Tribunal Mumbai
The Maharashtra Value Added Tax Act 2002 Sales tax demands 279.42 14.44 Financial Year 2016-2017 Joint Commissioner Appeals
The Central Sales Tax Act 1956 Sales tax demands 478.42 33 Financial Year 2015-2016 Joint Commissioner Appeals
The Central Sales Tax Act 1956 Sales tax demands 1595.55 4 Financial Year 2016-2017 Joint Commissioner Appeals
The Maharashtra Sales Tax on Transfer of Right to Use any Goods for any purpose 1985 Lease tax on crane hire charges 0.24 - Financial Year 1990-1991 Dy. Commissioner of Sales Tax Pune
The Maharashtra Tax on the Entry of Goods in Local Areas of Act 2002 Entry tax on natural gas procured from outside Maharashtra 4540.33 1635.00 Financial Years 2012-2013 to 2016-2017 Maharashtra Sales Tax Tribunal Mumbai
Custom Tariff Act 1975 Tariff heading classification 5.33 - Financial Years 2005-2006 to 2009-2010 Deputy Commissioner of Customs (Preventive) Alibaug Division Marine & Preventive Wing Mumbai
Custom Tariff Act 1975 Custom Valuation rules 368.74 - Financial Years 2012-2013 to 2015-2016 The Directorate of Revenue Intelligence Kolkata
The Central Sales Tax Act 1956 Sales tax demand 240.22 - Financial Year 2017-2018 Joint Commissioner Appeals Maharashtra

 

#Amount disclosed above includes interest and penalty whereverapplicable

viii. According to the information and explanations given to us andrecords examined by us there are no transactions which were not recorded in the books ofaccount and have been surrendered or disclosed as income during the year in the taxassessments under the Income Tax Act 1961 (43 of 1961).

ix. (a) Based on our audit procedures; in our opinion and according tothe information and explanations given to us the Company has not defaulted in repaymentof loans or borrowings or interest thereon to any lender.

(b) According to the information and explanations given to us ouraudit procedures and as represented to us by the management we report that the Companyhas not been declared wilful defaulter by any bank or financial institution or governmentor any government authority.

(c) According to the information and explanations given to us and inour opinion no term loans availed by the Company in the current year. Accordinglyreporting on clause 3 (ix) (c) is not applicable.

(d) According to the information and explanations given to us theprocedures performed by us and on an overall examination of the financial statements ofthe Company we report that no funds raised on short-term basis have been used forlong-term purposes by the Company.

(e) According to the information and explanations given to us and on anoverall examination of the financial statements of the Company we report that the companyhas not taken any funds (borrowings) from any entity or person on account of or to meetthe obligations of its subsidiaries associates or joint ventures.

(f) According to the information and explanations given to us andprocedures performed by us we report that the company has not raised loans during theyear on the pledge of securities held in its subsidiaries joint ventures or associatecompanies.

x. a) The Company has not raised moneys by way of initial public offeror further public offer (including debt instruments) during the year.

(b) According to the information and explanations given to us theCompany has made preferential allotment or private placement of shares through theQualified Institutional Placement of Rs 51000.00 Lakhs during the year. According to theinformation and explanation given to us and in our opinion the requirements of section 42and section 62 of the Act have been complied with and the funds raised have been used forthe purposes for which the funds were raised. Refer Note 43 to the Standalone FinancialStatements.

xi. (a) Based upon the audit procedures performed by us and accordingto the information and explanation provided to us by the management no fraud by theCompany or no fraud on the Company has been noticed or reported to us during the year.

(b) According to information and explanation provided to us and basedon our examination of records no report under sub-section (12) of section 143 of theCompanies Act has been filed in Form ADT-4 as prescribed under rule 13 of Companies (Auditand Auditors) Rules 2014 with the Central Government during the year and up to the dateof this report.

(c) According to information and explanation provided to us and basedon our audit procedures and enquiry with the vigil mechanism committee there were nowhistle-blower complaints received by the Company during the year and up to the date ofthis report.

xii. In our opinion and according to the information and explanationsgiven to us the Company is not a Nidhi company and the Nidhi Rules 2014 are notapplicable to it. Accordingly reporting on clause 3 (xii) (a) (b) & (c) of the Orderis not applicable.

xiii. According to the information and explanations given to us andbased on our examination of the records of the Company transactions with related partiesare in compliance with Sections 177 and 188 of the Act where applicable and the detailsof transactions have been disclosed in the Standalone Financial Statements as required byInd AS 24 ‘Related Party Disclosures?. Refer note 41(b)

xiv. (a) According to the information and explanations given to us andin our opinion the Company has an internal audit system commensurate with the size andnature of its business.

(b) We have taken into consideration the reports made available to usby the management of the Internal Auditors for the period under audit.

xv. According to the information and explanations given to us and basedon our examination of the records of the Company the Company has not entered into anynon-cash transactions with the directors or persons connected with them during the year.Accordingly reporting on clause 3(xv) of the Order is not applicable.

xvi. (a) In our opinion and according to the information andexplanations given to us the Company is not required to be registered under Section 45-IAof the Reserve Bank of India 1934. Accordingly reporting on clause 3(xvi) (b) & (c)of the Order is not applicable.

(b) According to the information and explanations given to us thereare no Core Investment Company within the Group. xvii. The company has not incurred cashlosses in the financial year and in the immediately preceding financial year.

xviii. There has been no resignation of the statutory auditors duringthe year. Accordingly reporting on clause 3 (xviii) of the Order is not applicable.

xix. According to the information and explanations given to us and onthe basis of the financial ratios ageing and expected dates of realization of financialassets and payment of financial liabilities other information accompanying the financialstatements our knowledge of the Board of Directors and management plans and based on ourexamination of the evidence supporting the assumptions nothing has come to our attentionwhich causes us to believe that any material uncertainty exists as on the date of theaudit report that company is not capable of meeting its liabilities existing at the dateof balance sheet as and when they fall due within a period of one year from the balancesheet date.

We however state that this is not an assurance as to the futureviability of the company. We further state that our reporting is based on the facts up tothe date of the audit report and we neither give any guarantee nor any assurance that allliabilities falling due within a period of one year from the balance sheet date will getdischarged by the company as and when they fall due.

xx. (a) There are no unspent amounts towards Corporate SocialResponsibility (CSR) on other than ongoing projects requiring a transfer to a Fundspecified in Schedule VII to the Companies Act in compliance with second proviso tosub-section (5) of Section 135 of the said Act. Accordingly reporting under clause3(xx)(a) of the Order is not applicable for the year.

(b) According to the information and explanations given to us there isno amount remaining unspent towards Corporate Social Responsibility (CSR) undersub-section (5) of section 135 of the Act pursuant to any ongoing project. Accordinglyreporting on clause 3 (xx) (b) is not applicable.

ANNEXURE B TO THE INDEPENDENT AUDITORS? REPORT

Referred to in paragraph 2 (f) under the heading "Report on Otherlegal and Regulatory Requirements" of our report on even date:

REPORT ON THE INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO STANDALONEFINANCIAL STATEMENTS UNDER CLAUSE _I_ OF SUB SECTION 3 OF SECTION 143 OF THE COMPANIESACT 2013 _"THE ACT"_

We have audited the internal financial controls with reference to theStandalone Financial Statements of Deepak Fertilisers and Petrochemicals CorporationLimited ("the Company") as of March 31 2022 in conjunction with our audit ofthe Standalone 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 andmaintaining internal financial controls based on the internal controls over financialreporting criteria established by the Company considering the essential components ofinternal controls 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 safeguardingof its 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.

AUDITORS? RESPONSIBILITY

Our responsibility is to express an opinion on the Company?sinternal financial controls with reference to the Standalone Financial Statements based onour audit. We conducted our audit in accordance with the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting (the "Guidance Note") andthe Standards on Auditing to the extent applicable to an audit of internal financialcontrols both issued by the Institute of Chartered Accountants of India. Those Standardsand the Guidance Note require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether adequate internal financialcontrols with reference to the Standalone Financial Statements were established andmaintained and if such controls operated effectively in all material respects. Our auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls with reference to the Standalone Financial Statements and theiroperating effectiveness. Our audit of internal financial controls with reference to theStandalone Financial Statements included obtaining an understanding of internal financialcontrols with reference to the Standalone Financial Statements assessing the risk that amaterial weakness exists and testing and evaluating the design and operatingeffectiveness of internal controls based on the assessed risk. The procedures selecteddepend on the auditor?s judgement including the assessment of the risks of materialmisstatement of the Standalone 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 internalfinancial controls with reference to the Standalone Financial Statements.

MEANING OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE STANDALONEFINANCIAL STATEMENTS

A company?s internal financial controls with reference to theStandalone Financial Statements is a process designed to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of StandaloneFinancial Statements for external purposes in accordance with generally acceptedaccounting principles. A company?s internal financial controls with reference to theStandalone Financial Statements 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 withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company?s assets that could have a material effect on theStandalone Financial Statements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TOTHE STANDALONE FINANCIAL STATEMENTS

Because of the inherent limitations of internal financial controls withreference to the Standalone Financial Statements including the possibility of collusionor improper management override of controls material misstatements due to error or fraudmay occur and not be detected. Also projections of any evaluation of the internalfinancial controls with reference to the Standalone Financial Statements to future periodsare subject to the risk that the internal financial controls with reference to theStandalone Financial

Statements may become inadequate because of changes in conditions orthat the degree of compliance with the policies or procedures may deteriorate.

OPINION

In our opinion the Company has in all material respects adequateinternal financial controls with reference to the Standalone Financial Statements and suchinternal financial controls with reference to the Standalone Financial Statements wereoperating effectively as at March 31 2022 based on the internal controls over financialreporting criteria established by the Company considering the essential components ofinternal controls stated in the Guidance Note on Audit of

Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.

For P G BHAGWAT LLP
Chartered Accountants
Firm Registration Number: 101118W/W100682
Abhijeet Bhagwat
Partner
Membership Number: 136835
UDIN: 22136835AKQCOW8039
Pune
May 25 2022

.