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Dhabriya Polywood Ltd.

BSE: 538715 Sector: Industrials
NSE: N.A. ISIN Code: INE260R01016
BSE 16:01 | 06 Oct 117.55 4.35
(3.84%)
OPEN

116.95

HIGH

119.00

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113.15

NSE 05:30 | 01 Jan Dhabriya Polywood Ltd
OPEN 116.95
PREVIOUS CLOSE 113.20
VOLUME 2291
52-Week high 137.40
52-Week low 67.60
P/E 57.34
Mkt Cap.(Rs cr) 127
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 116.95
CLOSE 113.20
VOLUME 2291
52-Week high 137.40
52-Week low 67.60
P/E 57.34
Mkt Cap.(Rs cr) 127
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Dhabriya Polywood Ltd. (DHABRIYAPOLY) - Auditors Report

Company auditors report

To the Members of

Dhabriya Polywood Limited

Report on the Consolidated Financial Statements

We have audited the accompanying Consolidated Financial Statements of DHABRIYAPOLYWOOD LIMITED (hereinafter referred to as "the Holding Company") and itsSubsidiaries (the Holding Company and its Subsidiaries together referred to as "theGroup") which comprise the Consolidated Balance

Sheet as at 31st March 2021 the Consolidated Statement of Profit and Loss (includingother comprehensive income) the Consolidated Statement of Changes in Equity and theConsolidated Cash Flow Statement for the year then ended and notes to the ConsolidatedFinancial Statements including a summary of significant accounting policies

(hereinafter referred to as "the Consolidated Financial Statements").

In our opinion and to the best of our information and according to the explanationsgiven to us and based on the consideration of reports of other auditors on separateFinancial Statements and on the other

nancial information of the subsidiaries the aforesaid

Consolidated Financial Statements give the information required by the Companies Act2013 ("the Act") in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India including the IndianAccounting Standards ("Ind AS") of the consolidated state of affairs of theGroup as at March 31 2021 their consolidated pro t including other comprehensive incomeconsolidated changes in equity and their consolidated cash ows for the year ended on thatdate.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) as specifiedunder section 143 (10) of the Act. Our responsibilities under those

Standards are further described in the Auditor's

Responsibilities for the Audit of the Consolidated Financial Statements section of ourreport. We are independent of the Group in accordance with the code of ethics issued bythe Institute of Chartered Accountants of India together with the ethical requirementsthat are relevant to our audit of the Consolidated 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 audit opinion on the Consolidated Financial Statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Consolidated Financial Statements for the financial yearended March 31 2021. These matters were addressed in the context of our audit of theConsolidated Financial Statements as a whole and in forming our opinion thereon and we donot provide a separate opinion on these matters. For each matter below our description ofhow our audit addressed the matter is provided in that context.

We have determined the matters described below to be the key audit matter to becommunicated in our report. We have fulfilled the responsibilities described in the

Auditors' responsibilities for the audit of the

Consolidated Financial Statements section of our report including in relation to thesematters. Accordingly our audit included the performance of procedures designed to respondto our assessment of the risks of material misstatement of the Consolidated FinancialStatements. The results of our audit procedures including the procedures performed toaddress the matters below provide the basis for our audit opinion on the accompanyingConsolidated Financial Statements.

A. Revenue Recognition

Key Audit Matter Description

The Group's revenue is principally derived from sale of products of PVC-uPVC ProfileSections Doors Windows Modular Furniture Products and others. Revenue from sale ofgoods is recognized when control of the products being sold is transferred to the customerand when there are no unfulfilled obligations. The performance obligations in thecontracts are fulfilled at the time of dispatch delivery or upon formal customeracceptance depending on terms of order / contract with the customer. Revenue is measuredat fair value of the consideration received or receivable after deduction of anytrade/volume discounts and taxes or duties collected.

We identified revenue recognition as a key audit matter since revenue is significant tothe financial statements and is required to be recognized as per the requirements ofapplicable accounting framework.

How our audit addressed the Key Audit Matter

We assessed the appropriateness of the revenue recognition accounting policies bycomparing them with applicable Indian Accounting Standards (Ind AS).

Evaluated the process followed by the management for revenue recognition includingunderstanding and testing of key controls related to recognition of revenue in correctperiod.

Performed substantive testing on samples selected using statistical sampling of revenuetransactions recorded during the year by testing the underlying documents to determinewhether revenue has been recognized correctly.

Tested on a sample basis specific revenue transactions recorded before and after thefinancial year end date including examination of credit notes issued after the year end todetermine whether the revenue has been recognized in the appropriate financial period. andtimely. Based on the above stated procedures no significant exceptions were noted inrevenue recognition.

. Inventory Existence and Valuation

Key Audit Matter Description

There are complexities and manual process involved in determining inventory quantitieson hand and valuation of the same due to the Group's presence across different locationswithin the country diverse & numerous inventory products and work in progress atdifferent stages of the processes at various manufacturing units. Accordingly inventoryquantities and valuation is identi ed as a key audit Matter.

How our audit addressed the Key Audit Matter

We have attended inventory counts which we selected based on nancial signi cance andrisk observed management's inventory count procedures to assess the effectivenessselected a sample of inventory products and compared the quantities counted to thequantities recorded and ensured inventory adjustments if any are recorded in the booksof accounts.

Assessed whether the management's internal controls relating to inventory's valuationare appropriately designed and implemented.

Discussed with the management on the management's process of identifying the stages ofcompletion and valuing work in progress stock at the time of book closure process.

Veri ed the correctness of valuation made by the management on a sample basis withregard to the cost and net realizable value of inventory.

Information Other than the Consolidated

Financial Statements and Auditor's Report

Thereon

The Holding Company's Board of Directors is responsible for the other information. Theother information comprises the information included in the Annual Report but does notinclude the Consolidated Financial Statements and our auditor's report thereon.

Our opinion on the Consolidated Financial Statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Consolidated Financial Statements ourresponsibility is to read the other information and in doing so consider whether suchother information is materially inconsistent with the Consolidated Financial Statements orour knowledge obtained during the course of the audit or otherwise appears to bematerially misstated. If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.

Responsibilities of Management for the Consolidated Financial Statements

The Holding Company's Board of Directors is responsible for the preparation andpresentation of these Consolidated Financial Statements in terms of the requirements ofthe Act that gives a true and fair view of the financial position financial performance(including other comprehensive income) changes in equity and cash flows of the Group inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) specified under Section 133 of the Act read with theCompanies (Indian accounting standards) Rules 2015 as amended from time to time.

The respective Board of Directors of the companies included in the Group areresponsible for maintenance of adequate accounting records in accordance with theprovisions of the Act for safeguarding the assets of the Group and for preventing &detecting frauds and other irregularities selection and application of appropriateaccounting policies making judgments and estimates that are reasonable and prudent anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Consolidated FinancialStatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error which have been used for the purpose of preparation of theConsolidated Financial Statements by the Directors of the Holding Company as aforesaid.

In preparing the Consolidated Financial Statements the respective Board of Directorsof the companies included in the Group responsible for assessing the ability of the Groupto continue as a going concern disclosing as applicable matters related to goingconcern and using the going concern basis of accounting unless management either intendsto liquidate the Group or to cease operations or has no realistic alternative but to doso.

The respective Board of Directors of the Companies included in the Group are alsoresponsible for overseeing the financial reporting process of the Group.

Auditor's Responsibility for the audit of

Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the ConsolidatedFinancial Statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these Consolidated Financial Statements. As part of an audit inaccordance with SAs we exercise professional judgment and maintain professionalskepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the Consolidated FinancialStatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional 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 Holding Company andits subsidiaries which are companies incorporated in India have adequate internalfinancial controls system in place and the operating 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

Group'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 Consolidated 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 may cause the Group to cease to continue as agoing concern.

Evaluate the overall presentation structure and content of the Consolidated FinancialStatements including the disclosures and whether the Consolidated Financial Statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

Obtain suf cient appropriate audit evidence regarding the nancial information of theentities or business activities within the Group to express an opinion on the ConsolidatedFinancial Statements. We are responsible for the direction supervision and performance ofthe audit of the Financial Statements of such entities included in the ConsolidatedFinancial Statements of which we are the independent auditors. For the other entitiesincluded in the Consolidated Financial Statements which have been audited by otherauditors such other auditors remain responsible for the direction supervision andperformance of the audits carried out by them. We remain solely responsible for our auditopinion.

We communicate with those charged with governance of the Holding Company and such otherentities included in the Consolidated Financial Statements of which we are the independentauditors regarding among other matters the planned scope and timing of the audit andsignificant audit findings including any significant deficiencies in internal controlthat 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 Consolidated FinancialStatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.

Other Matters

We did not audit the financial statements and other financial information in respectof three subsidiaries whose Ind AS financial statements reflects total assets ofRs.3631.89 Lacs as at March 31 2021 total revenues of Rs.5878.74 Lacs total net profitafter tax of Rs.385.82 Lakhs total comprehensive income of Rs.391.15 Lacs and net cashoutflow of Rs.1.35 Lakhs for the year ended on that date as considered in theConsolidated Financial Statements. These Ind AS financial statements and other financialinformation have been audited by other auditors whose reports have been furnished to us bythe Management and our opinion on the Consolidated Financial Statements in so far as itrelated to the amounts and disclosures included in respect of these subsidiaries and ourreport in terms of section 143(3) of the Act in so far as it relates to aforesaidsubsidiaries are based solely on the reports of the other auditors.

Our opinion on the Consolidated Financial Statements and our report on the Other Legaland Regulatory

Requirements below is not modified in respect of above matters with respect to ourreliance on the work done and the reports of the other auditors and financial informationcertified by the management.

Report on Other Legal and Regulatory Requirements As required by Section 143(3) ofthe Act based on our audit and on the consideration of report of the other auditors onseparate financial statements and the other financial information of subsidiaries as notedin the ‘other matters' paragraph we report to the extent applicable that:

(a) We/the other auditors whose report we have relied upon have sought and obtained allthe information and explanations which to the best of our knowledge and belief werenecessary for the purposes of our audit of the aforesaid Consolidated FinancialStatements.

(b) In our opinion proper books of account as required by law relating to preparationof the aforesaid Consolidated Financial Statements have been kept so far as it appearsfrom our examination of those books and the reports of the other auditors.

(c) The Consolidated Balance Sheet the Consolidated Statement of Profit and Loss(including Other Comprehensive Income) the Consolidated Cash Flow Statement andConsolidated Statement of Changes in Equity dealt with by this Report are in agreementwith the books of account maintained for the purpose of preparation of the ConsolidatedFinancial Statements.

(d) In our opinion the aforesaid Consolidated Financial Statements comply with theAccounting Standards specified under Section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended.

(e) On the basis of the written representations received from the Directors of theHolding Company as on 31st March 2021 taken on record by the Board of Directors of theHolding Company and the reports of the statutory auditors of its subsidiary companiesincorporated in India none of the directors of the Group companies in India isdisqualified as on 31st March 2021 from being appointed as a Director in terms of Section164(2) of the Act.

(f) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Holding Company and its subsidiary companies incorporated inIndia and the operating effectiveness of such controls refer to our separate Report in"Annexure" to this report.

(g) In our opinion and based on the consideration of reports of other statutoryauditors of the subsidiaries incorporated in India the managerial remuneration for theyear ended March 31 2021 has been paid/provided by the Holding Company and itssubsidiaries to their directors in accordance with the provisions of Section 197 read withSchedule V to the Act.

(h) 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 as amended inour opinion and to the best of our information and according to the explanations given tous and based on the consideration of the report of the other auditors on separatefinancial statements as also the other financial information of the subsidiaries as notedin the ‘Other Matters' paragraph:

(i) The Consolidated Financial Statements discloses the impact of pending litigationson its consolidated financial position of the Group;

(ii) The Group did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

(iii) There were no amounts required to be transferred to the Investor Education andProtection Fund by the Holding Company and its subsidiary companies.

ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT

Referred to under "Report on Other Legal and Regulatory Requirements" of ourreport of even date to the members of Dhabriya Polywood Limited on the ConsolidatedFinancial Statements for the year ended March 31 2021

Report on the Internal Financial Controls with reference to Financial Statements underClause (i) of Sub-section 3 of Section 143 of the

Companies Act 2013 ("the Act")

In conjunction with our audit of the Consolidated Financial Statements of the Companyas of and for the year ended March 31 2021 we have audited the internal financialcontrols over financial reporting of

DHABRIYA POLYWOOD LIMITED (hereinafter referred to as "the HoldingCompany") and its subsidiaries (the Holding Company and in subsidiaries togetherreferred to as "the Group) as of that date.

Management's Responsibility for Internal

Financial Controls

The respective Board of Directors of the Holding Company and its subsidiary companieswhich are companies incorporated in India are 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

(the "Guidance Note") issued by the Institute of

Chartered Accountants of India. These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to the respective Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the

Group's internal financial controls with reference to the financial statements ofHolding Company and its subsidiary companies which are companies incorporated in Indiabased on our audit. We conducted our audit in accordance with the Guidance Note and theStandards on Auditing prescribed under Section 143(10) of the Act to the extentapplicable to an audit of internal financial controls. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting with reference to these Consolidated Financial Statements wasestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system with reference to nancial statements and theiroperating effectiveness. Our audit of internal financial controls over financial reportingwith reference to these Consolidated Financial Statements included obtaining anunderstanding of internal financial controls over financial reporting with reference tothese Consolidated Financial Statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgement including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error.

We believe that the audit evidence obtained by us and the audit evidence obtained bythe other auditors of the subsidiary company in terms of their reports referred to in theOther Matters paragraph below is sufficient and appropriate to provide a basis for ouraudit opinion on the Group's internal financial controls with reference to financialstatements.

Meaning of Internal Financial Controls over Financial Reporting with reference to theseConsolidated Financial Statements

A Group's internal financial controls over financial reporting with reference to theseConsolidated Financial Statements is a process designed to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of financialstatements for external purposes in accordance with generally accepted accountingprinciples. A Group's internal financial controls with reference to nancial statementsincludes those policies and procedures that (1) pertain to the maintenance of recordsthat in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Group; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Group are being made only in accordance with authorizations ofManagement and Directors of the respective company in the Group; and (3) providereasonable assurance regarding prevention or timely detection of unauthorized acquisitionuse or disposition of the Group's assets that could have a material effect on thefinancial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting withreference to these Consolidated Financial Statements

Because of the inherent limitations of internal financial controls over financialreporting with reference to these Consolidated Financial Statements including thepossibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls over financial reporting with referenceto these Consolidated Financial Statements to future periods are subject to the risk thatthe internal financial control over financial reporting with reference to theseconsolidated nancial 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 to the best of our information and according to the explanations givento us and based on the consideration of reports of the other auditors as referred to inthe Other Matters below the Holding Company and its subsidiary Companies which areCompanies incorporated in India have in all material respects an adequate internalfinancial controls over financial reporting with reference to these Consolidated FinancialStatements and such internal financial controls over financial reporting with reference tothese Consolidated Financial Statements were operating effectively as at March 31 2021based on the internal control over financial reporting criteria established by the HoldingCompany 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.

Other Matters

Our aforesaid report under section 143(3)(i) of the Act on the adequacy and operatingeffectiveness of the internal financial controls over financial reporting with referenceto these Consolidated Financial Statements of the Holding Company in so far as it relatesto separate financial statements of three subsidiary companies which are companiesincorporated in India is based on the corresponding report of the auditors of suchsubsidiary companies incorporated in India.

For TAMBI ASHOK & ASSOCIATES
Chartered Accountants
(Firm Regn. No.005301C)
Sd/-
(CA ASHOK KUMAR TAMBI)
Partner
Membership No. 74100
UDIN: 21074100AAAADO7287
Jaipur June 29 2021

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