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Dhoot Industrial Finance Ltd.

BSE: 526971 Sector: Others
NSE: N.A. ISIN Code: INE313G01016
BSE 00:00 | 27 Jan 41.95 1.35
(3.33%)
OPEN

43.35

HIGH

44.65

LOW

38.25

NSE 05:30 | 01 Jan Dhoot Industrial Finance Ltd
OPEN 43.35
PREVIOUS CLOSE 40.60
VOLUME 7034
52-Week high 47.05
52-Week low 11.00
P/E 9.51
Mkt Cap.(Rs cr) 27
Buy Price 41.95
Buy Qty 5.00
Sell Price 43.40
Sell Qty 11.00
OPEN 43.35
CLOSE 40.60
VOLUME 7034
52-Week high 47.05
52-Week low 11.00
P/E 9.51
Mkt Cap.(Rs cr) 27
Buy Price 41.95
Buy Qty 5.00
Sell Price 43.40
Sell Qty 11.00

Dhoot Industrial Finance Ltd. (DHOOTINDLFIN) - Auditors Report

Company auditors report

To the Members of Dhoot Industrial Finance Limited

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the standalone financial statements of Dhoot Industrial Finance Ltd("the Company") which comprise the standalone balance sheet as at 31st March2019 the standalone statement of profit and loss and standalone statement of cash flowsfor the year then ended and notes to the standalone financial statements including asummary of the significant accounting policies and other explanatory information. In ouropinion and to the best of our information and according to the explanations given to usthe aforesaid standalone financial statements give the information required by theCompanies Act 2013 ("Act") in the manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at 31st March 2019 and profit 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) specifiedunder section 143(10) of the Act. Our responsibilities under those SAs are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of the' Company in accordancewith the Code of Ethics issued by the Institute of Chartered Accountants of India togetherwith the ethical requirements that are relevant to our audit of the standalone financialstatements under the provisions of the Act and the Rules there under and we havefulfilled our other ethical responsibilities in accordance with these requirements and theCode 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 judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the standalone financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.

In our opinion and best of the information and explanation given to us we have notfound any matter to be the Key audit matter to be communicated in our audit report

Information Other than the Standalone Financial Statements and Auditors' Reportthereon"

The Company's management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company'sAnnual Report but does not include the standalone financial statements and our auditors'report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated. If based on thework we have performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in thisregard.

Management's Responsibility for the Standalone Financial Statements

The Company's management and Board of Directors are responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the state of affairs profit/loss and cashflows of the Company in accordance with the accounting principles generally accepted inIndia including the Accounting Standards specified under section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and forpreventing and detecting

frauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the standalone financial statements that give atrue and fair view and are free from material misstatement whether due to fraud or error.

In preparing the standalone financial statements management and Board of Directors areresponsible 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.

Board of Directors is also responsible for overseeing the Company's financial reportingprocess.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditors' 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 standalone financial statements.

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

• Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence' that is sufficient and appropriateto provide 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 the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

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

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

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

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the ‘Companies (Auditors' Report) Order 2016 ("theOrder") issued by the Central Government in terms of section 143 (11) of the Act wegive in the "Annexure A" a statement on the matters specified in paragraphs 3and 4 of the Order to the extent applicable.

2. (A) As required by Section 143(3) of the Act we report that:

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

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

c) The standalone balance sheet the standalone statement of profit and loss andstandalone statement of cash flows dealt with by this Report are in agreement with thebooks of account.

d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 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 Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B".

(B) With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations as at 31st March 2019 onits financial position in its standalone financial statements

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company

iv. The disclosures regarding holdings as well as dealing in specified bank notesduring the period from 8th November 2016 to 30th December 2016 have not been made in thesestandalone financial statements since they do not pertain to the financial year ended31st March 2019.

(C) With respect to the matter to be included in the Auditors' Report under section197(16):

In our opinion and according to the information and explanation given to us during thecurrent year the remuneration paid by the company to its directors is in accordance withthe provisions of Section 197 of the Act. The remuneration paid to any director is not inexcess of the limit laid down under Section 197 of the Act. The Ministry of CorporateAffairs has not prescribed other details under Section 197(16) which are required to becommented upon by us.

For BOHRA & CO.
CHARTERED ACCOUNTANTS
Firm Registration No.136492W
Sd/-
Place: MUMBAI RAMESH CHAND BOHRA
Date: 27.05.2019 Partner (M. NO. 073480)

Annexure - A to the Independent Auditors' Report of even date to the members of DhootIndustrial Finance Limited on the standalone financial statements for the year ended 31stMarch 2019.

Annexure A

Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit and to the best of our knowledge and beliefwe report that;

(i) (a) The Company has maintained proper records to show full particulars includingquantitative details and situation of fixed assets.

(b) The Fixed assets have been physically verified by the management during the year.We are informed that no material discrepancies were noticed by the management on suchverification.

(c) The title deeds of immovable properties are held in the name of the Company.

(II) The Company is engaged in the trading of chemicals & papers. All the purchasesin respect of above are directly supplied from the principal's factory/warehouses to therespective consignee's. Hence there are no stocks lying at the company's disposal at anypoint of time. Thus requirements regarding physical verification of inventory is notapplicable.

(III) As per the information furnished to us the Company has not granted any loanssecured or unsecured to companies firms or other parties covered in the registermaintained under section 189 of the Companies Act 2013. Accordingly Clause (iii)(a)relating to regular receipt of principal amount and interest and Clause (iii)(b) relatingto steps taken for recovery of overdue principal and interest of more than rupees onelakh are not applicable.

(IV) In our opinion and according to information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the Companies Act 2013in respect of loans investment guarantees and security.

(V) During the year the Company has not accepted any deposits from public. Accordinglyprovisions of section 73 to 76 of the Act and other relevant provisions of the Act and therules framed there under and the directives issued by the Reserve Bank of India are notapplicable.

As informed to us No order has been passed by Company Law Board or Reserve Bank ofIndia or any Court or any other Tribunal during the year.

(VI) The maintenance of cost records has not been specified by the Central Governmentunder section 148(1) of the Act read with Rule 3 of the Companies (Cost Records andAudit) Rules 2014 notified by Ministry of Corporate Affairs Government of India videnotification dated December 312014

(VII) (a) According to the information and explanations given to us and the recordsexamined by us the Company has generally been regular in depositing with appropriateauthorities undisputed statutory dues (except in respect of Central Sales Tax Rs.239/-Maharashtra Value Added Tax Rs.16694/- and Gujarat Value Added Tax Rs.20433/- outstandingas at 31st March 2019 for a period of more than 6 month from the date theybecame payable.

(b) According to the information and explanations given to us and on the basis of thebooks and records examined by us as applicable given here in below are the details ofdues of Income-tax Wealth Tax Service Tax Customs Duty Excise Duty Value Added TaxCess which have not been deposited with appropriate authority on account of disputes andthe form where the dispute is pending.

Name of the Statute Nature of the Dues Amount (') Period to which the amount relates (Ass. Yr.) Forum where dispute is pending
Income Tax Act 1961 Income Tax 227160 2014-15 Commissioner of Income tax (Appeals)
Income Tax Act 1961 Income Tax 1480428 2016-17 Commissioner of Income tax (Appeals)

(VIII) As per the information and explanation given to us the Company has notdefaulted in the repayment of loans or borrowings to a financial institution bankGovernment or dues to debenture holders during the year.

(IX) Since the Company has not raised money by way of initial public offer or furtherpublic offer including debt instruments and term loans. Accordingly paragraph 3(VIII) ofthe Order is not applicable.

(X) Based on the audit procedures performed and information and explanations given tous by the management we report that no fraud by the Company or on the Company by itsofficers or employees has been noticed or reported during the course of our audit.

(XI) The Management remuneration has been paid or provided in accordance with therequisite approvals mandated by the provisions of section 197 read with schedule V to theAct.

(XII) In our opinion the Company is not a Nidhi Company accordingly paragraph 3(XII)of the Order is not applicable.

(XIII) According to the information and explanation given to us all transactions withthe related parties are in compliance with section 177 and 188 of the Act where applicableand the details have been disclosed in the standalone Ind AS Financial Statements asrequired by the applicable accounting standards.

(XIV) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has made preferential allotment of299000 fully paid equity shares of Rs.10/- each to Mr. Rishikesh Dhoot @Rs.53/- pershare (including premium of Rs.43/- per share) on conversion of share warrant 299000 ofRs.15847000/- (balance 75% money of share warrant received during the year) the moneyused by the company for the purpose for which it was raised.

(XV) The Company has not entered into any non cash transaction during the year withpersons connected with him as contemplated in section 192 of the Act.

(XVI) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For BOHRA & CO.
CHARTERED ACCOUNTANTS
Firm Registration No.136492W
Sd/-
Place: MUMBAI RAMESH CHAND BOHRA
Date: 27.05.2019 Partner (M. NO. 073480)

"Annexure - B" to the Independent Auditor's Report of even date to themembers of Dhoot Industrial Finance Limited on the standalone financial statements for theyear ended 31st March 2019.

Independent Auditor's Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013( the "Act")

1. In Conjunction with our audit of the standalone financial statements of DhootIndustrial Finance Limited (the "Company") as at and for the year ended 31stMarch 2019 we have audited the internal financial controls over financial reporting(IFCoFR) of the Company as on that date.

Management's Responsibility for Internal Financial Controls

2. The Company's Board of Directors is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential Components of Internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting( the "Guidance note") issued by the ICAI. These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of theCompanies business including adherence to company's policies the safeguarding of itsassets the prevention and detection of frauds and errors the accuracy and completenessof the accounting records and the timely preparation of reliable financial informationas required under the Act.

Auditors' Responsibility

3. Our responsibility is to express an opinion on the Company's IFC oFR based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Act to the extent applicable toan audit of IFCoFR and the Guidance Note issued by the ICAI. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate IFCoFR were established andmaintained and if such controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the IFCoFR and their operating effectiveness. Our audit of IFCoFR included obtaining anunderstanding of IFCoFR assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's IFCoFR.

Meaning of Internal Financial Controls Over Financial Reporting

6. A company's IFCoFR is a process designed to provide reasonable assurance regardingthe reliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A company'sIFCoFR 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

7. Because of the inherent limitations of IFCoFR including the possibility ofcollusion or improper management override of controls material misstatements due to erroror fraud may occur and not be detected. Also projections of any evaluation of the IFCoFRto future periods are subject to the risk that the IFCoFR may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.

Opinion

8. In our opinion the Company has in all material respects adequate internalfinancial controls over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31st March 2019 based on theinternal controls over financial reporting criteria established by the Company consideringthe essential components of internal controls stated in the Guidance Note issued by theICAI.

For BOHRA & CO.
CHARTERED ACCOUNTANTS
Firm Registration No.136492W
Sd/-
Place: MUMBAI RAMESH CHAND BOHRA
Date: 27.05.2019 Partner (M. NO. 073480)

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