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Dhanashree Electronics Ltd.

BSE: 542679 Sector: Engineering
NSE: N.A. ISIN Code: INE413F01016
BSE 00:00 | 27 Sep 18.65 -0.95
(-4.85%)
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NSE 05:30 | 01 Jan Dhanashree Electronics Ltd
OPEN 20.55
PREVIOUS CLOSE 19.60
VOLUME 25865
52-Week high 29.70
52-Week low 12.05
P/E 15.04
Mkt Cap.(Rs cr) 26
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 20.55
CLOSE 19.60
VOLUME 25865
52-Week high 29.70
52-Week low 12.05
P/E 15.04
Mkt Cap.(Rs cr) 26
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Dhanashree Electronics Ltd. (DHANASHREEELECT) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

DHANASHREE ELECTRONICS LIMITED

Report on the Standalone Financial Statements

I have audited the accompanying standalone financial statements of DhanashreeElectronics Limited ("the Company") which comprise the Balance Sheet as at 31stMarch 2021 the Statement of Profit and Loss including the statement of OtherComprehensive Income the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and a summary of significant accounting policies and otherexplanatory information {here in after referred to as "Standalone FinancialStatements").

In my opinion and to the best of my information and according to the explanations givento me the aforesaid financial statements give the information required by the CompaniesAct 2013 in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2021 and its profit for the year ended on that date.

Basis for Opinion

I conducted my audit in accordance with the Standards on Auditing (SAs) specified undersection 143(10) of the Companies Act 2013. My responsibilities under those Standards arefurther described in the Auditor's Responsibilities for the Audit of the FinancialStatements section of my report. I am independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to my audit of the standalone financial statementsunder the provisions of the Act and the Rules there under and I have fulfilled my otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my opinion on the financial statements.

Emphasis of Matter

I draw attention to Note no 31 of the standalone financial statements as regards themanagement's evaluation of COVID-19 impact on the operation and assets of the company. Ouropinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that in my professional judgment were of mostsignificance in my audit of the standalone financial statements of the current period.These matters were addressed in the context of my audit of the standalone financialstatements as a whole and in forming my opinion thereon and I do not provide a separateopinion on these matters.

Responsibilities of Management and Those Charged with Governance for the StandaloneFinancial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese Standalone Financial Statements that give a true and fair view of the FinancialPosition Financial Performance including Other Comprehensive Income Cash Flows and theStatement of Changes in Equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) specifiedunder section 133 of the Act read with the Companies (Indian Accounting Standards)Rules2015as amended.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provision of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofthe appropriate accounting policies; making judgments and estimates that are reasonableand prudent; and design implementation and maintenance of adequate internal financialcontrols that Ire operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and fair 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 financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Board of Directors is also responsible for overseeing the Company's financialreporting process. Auditor's Responsibilities for the Audit of the Financial Statements

My objectives is to obtain reasonable assurance about whether the financial statementsas a whole are free from material misstatement whether due to fraud or error and toissue an auditor's report that includes my opinion. Reasonable assurance is a high levelof assurance but is not a guarantee that an audit conducted in accordance with SAs willalways detect a material misstatement when it exists. Misstatements can arise from fraudor error and are considered material if individually or in the aggregate they couldreasonably be expected to influence the economic decisions of users taken on the basis ofthese financial statements.

As part of an audit in accordance with SAs I exercise professional judgment andmaintain professional skepticism throughout the audit. I 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 sufficient and appropriate to provide a basis formy opinion. The risk of

not detecting a material misstatement resulting from fraud is higher than for oneresulting from error as fraud may involve collusion forgery intentional omissionsmisrepresentations or the override of internal control

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3){i)of the Companies Act 2013 I am also responsible for expressing my opinion on whether thecompany has adequate internal financial controls system in place and the operatingeffectiveness 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 I conclude that a material uncertainty existsI am required to draw attention in my auditor's report to the related disclosures in thefinancial statements or if such disclosures are inadequate to modify my opinion. Myconclusions are based on the audit evidence obtained up to the date of my 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 financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of a reasonablyknowledgeable user of the financial statements may be influenced. I consider quantitativemateriality and qualitative factors in (i) planning the scope of my audit work and inevaluation the results of my work: and (ii) to evaluate the effect of any identifiedmisstatements in the financial statements.

I have communicated with those charged with governance regarding among other mattersthe planned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that I identify during my audit.

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

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

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 of the Act I give inthe "Annexure

A" a statement on the matters specified in paragraphs 3 and 4 of the Order.

2 AsrequiredbySection 143(3) of the Act 1 report that:

a) I have sought and obtained all the information and explanations which to the best ofmy knowledge and belief Ire necessary for the purposes of my audit;

b) In my opinion proper books of account as required by law have been kept by theCompany so far as appears from my examination of those books;

c) The Balance Sheet Statement of Profit and Loss including Other Comprehensive Income the Cash Flow Statement and Statement of Changes in Equity dealt with by this report arein agreement with the books of account;

d) In my opinion the afore said standalone financial statements comply with theaccounting standards specified under section 133 of the Act read with Companies (IndianAccounting Standards) Rules2015 as amended.

e) On the basis of written representations received from the directors as on 31stMarch2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March2021 from being appointed as a director in terms of section164(2) of the Act;

With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to myseparate Report in "Annexure B". My report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting;

f) With respect to the other matters to be included in the Auditor's Report inaccordance with Rules 11 of the Companies (Audit and Auditors) Rules 2014 as amended inmy opinion and to the best of my information and according to the explanations given tome:

i. The Company does not have any pending litigations which could impact its financialposition.

ii. The Company does not have any long-term contracts requiring a provision for anymaterial foreseeable losses.

iii. There were no amounts which are required to be transferred to the InvestorEducation and Protection Fund by the Company for the year ended 31st March 2021.

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT ON THE STANDALONE FINANCIALSTATEMENTS OF DHANASHREE ELECTRONICS LIMITED (Referred to in Paragraph X under the headingof "Report on other legal and regulatory requirements" of my report of evendate)

i. in respect of its fixed assets:

a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b) The fixed assets are physically verified during the year by the Management inaccordance with a regular programme of verification which in my opinion provides forphysical verification of all the fixed assets at reasonable intervals. However accordingto the information and explanation given to me no material discrepancies were noticed onsuch verification of the asset purchased during the year however with respect to oldassets opening figures are relied and confirmed by the management.

c) According to the information and explanations given to me and the records examinedby me and based on the examination of the registered sale deeds provided to me I reportthat the title deeds comprising all the immovable properties of lands which arefreehold are held in the name of the Company as at the balance sheet date.

ii. in my opinion the inventories are physically verified during the year by theManagement at reasonable intervals and as explained to me no material discrepancies arenoticed on physical verification

iii. in respect of the loans secured or unsecured granted by the company to companiescovered in the register maintained under Sectionl89 of the Act:

a. The terms and conditions of the grant of such loans are in my opinion prima facienot prejudicial to the Company's interest.

b. The repayment of principal and payment of interest are as per stipulated terms.

c. In respect of the said loan in the cases where the overdue amount is more than OneLakh Rupee in My opinion reasonable steps have been taken by the company for the recoveryof the principal amounts and interest.

iv. In my opinion and according to the information and explanations given to me theCompany has complied with the provisions of Sections 185 and 186 of the Act in respect ofgrant of loans making investments and providing guarantees and securities as applicable.

v* According to the information and explanations given to me the Company has notaccepted any deposit within the meaning of provisions of sections 73 to 76 or any otherrelevant provisions of the Act and the rules framed there under. Therefore the provisionsof clause (v) of paragraph 3 of the Order are not applicable to the Company.

vi. The maintenance of cost records has not been specified by the CentralGovernment under section 148(1) of the Act for any of the products of the company.

vii. In respect of statutory dues:

a) According to the records of the Company undisputed statutory dues includingProvident Fund Employee's State Insurance Income-Tax Sales Tax Goods and Service TaxService Tax Customs Duty Excise Duty Value Added Tax cess and any other statutory dueshave been generally regularly deposited with the appropriate authorities. According to theinformation and explanations given to me there are no undisputed amounts in respect ofthe Statutory dues referred above outstanding as at 31st March2021 for a period of morethan six months from the date they became payable.

viii. ln my opinion and according to the information and explanations given to me theCompany has not defaulted in the repayment of loans to banks and dues to debentureholders.

ix. In my opinion and according to the information and explanations given to meCompany has also not raised moneys by way of initial public offer or further public offerduring the year. Also No term loans have been applied by the Company during the year hencereporting under clause (ix) of paragraph 3 of the Order is not applicable to the company.

x. Based on the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and as per information and explanations given to meno fraud by the Company and no fraud on the Company by its officers or employees has beennoticed or reported during the year.

xi. In my opinion and according to the information and explanations given to me theCompany has paid managerial remuneration in accordance with the requisite approvalsmandated by the provisions of section 197 read with Schedule V to the Act.

xii. The Company is not a Nidhi Company and hence reporting under clause (xil) ofparagraph 3 of the Order is not applicable to the company.

xiii. ln my opinion and according to the information and explanations given to me theCompany is in compliance with Section 188 and 177 of the Act where applicable for alltransactions with the related parties and the details of related party transactions havebeen disclosed in the financial statements etc. as required by the applicable accountingstandards.

xiv. The Company has not issued equity shares against the warrants during the year.Company has complied with the requirement of section 42 of the Act and hence reportingunder clause (xiv) of paragraph 3 of the Order is not applicable to the company.

xv. In my opinion and according to the information and explanations given to me theCompany has not entered into any non-cash transaction with the directors or personsconnected with him and covered under section 192 of the Act. Hence clause (xv) of theparagraph 3 of the Order is not applicable to the Company.

xvi. To the best of my knowledge and as explained the Company is not required tobe registered under section 454A of the Reserve Bank of India Act 1934.

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1(f) under -Report on Other Legal and RegulatoryRequirements' of my report of even date) Report on the internal Financial Controls OverFinancial Reporting under Clause (i) of Subsection 3 of Section 143 of the Companies Act2013 ("the Act")

I have audited the internal financial controls over financial reporting of DHANASHREEELECTRONICS LIMITED ["the Company") as of March 31 2021 in conjunction withmy audit of the standalone financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India". These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to 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 Companies Act 2013.

Auditors' Responsibility

My responsibility is to express an opinion on the Company's internal financial controlsover financial reporting based on my audit. I conducted my audit in accordance with theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting {the"Guidance Note") and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of interna! financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that I comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

My audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. My audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my

audit opinion on the Company's internal financial controls system over financialreporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles A company's internal financial control over financialreporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

in my opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2021 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the institute of CharteredAccountants of India.

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