Obtain and understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under sectionI 43(J)(i) of the Act we also responsible for expressing our opinion on whether theCompany has adequate internal financial control systems 1n place and the operatingeffectiveness 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 ofthe going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertainty existrelat1ed to events or conditions that may cast significant doubt on the Companies abilityto continue as a going concern. If we conclude that a material uncertainty exist we arerequired to draw attention In our auditor's report to the related disclosures in thestandalone financial statements or if such disclosures are inadequate to modify o uropinion. Our conclusion are based on the audit evidence obtained up to the date of ourauditor's 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 represents the underlying transactions and events in a manner that achievesfair presentation.
Materiality is the magnitude of misstatements in the standalone financial statementsthat. individually or in aggregate makes its probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitatiive factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ji) to evaluate the effect of anyidentified mfastatements in the financial statements.
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 complie:dwith relevant ethical requirements regarding independence and to communicate with themall relationship and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charge with governance we determined thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We described this mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determined that a matter .should notbe communicated in our report because the adverse consequences of doing so wouldreasonably be expected to outweigh the public interest benefits of such communication.
5. Report on Other Legal and Regulatory Requirements
5.1 As required by Section 143(3) of the Act based on our audit we report:
(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit;
(b) In our opinion proper books of account as required by law have been kept by theCompany 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 Chang~s in Equity and the Statementof Cash Flow dealt with by this Report arc in agreement with the relevant books ofaccount;
(d) ln our opinion the aforesaid Standalone financial statements comply withthe Ind AS specified under Section 133 of the Act read with Rule 7 of the Corripanies(Accounts) Rules 2014~
(e) On the basis of the written representations received from the directors as onMarch 31 2020 taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2020 from being appointed as a directors in terms of Section164(2) of the Act;
(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in ~ANNEX URE - A''. Our report expresses and unmodifiedopinion on the adequacy and operating effectiveness of the Company's internalfinancial controls over financial reporting~
(g) With respect to the Other matters to be included in the Auditor's Report inaccordance whh requirement of section 197(16) of the Act as amended in our opinion and tothe best of our information ant! according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of section 197 of the Act;
(h) With respect to the other matters to be jncluded in the Audjtor'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:
(i) The Company does not have any pending litigations which impact its financialposition in its
Standalone financial statements;
(ii) The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts-
Refer Note No. 27.2 to the Standalone financial statements;
(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
5.2 As required by the Companies (Auditors' Report) Order 2016 ('the Order'') asamended issued by the Central Government of India in terms of sub-section (11) of section143 of the Act we give in the "ANNEXURE- B" a statement on the mattersspecified in paragraph 3 and 4 of the said Order.
8 Camac Street
Kolkata - 700 017
The 30th day of June 2020 UDIN : 20053267AAAAAN3780
For NAVIN NAY AR & COMPANY
Firm Registration No. 317117
Membership No. 053267
"ANNEXURE - A'' TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THESTAND~LONE FINANCIAL STATEMENTS OF DHP INJDIA LIMITED
UDIN : 20053267 AAAAAN3780
Report on the Internal Financial Control under Clause (i) of Sub-section3 of Section 143 of the Companies Act 2013 ("the Act") - Referred to inparagraph 5.J (f) of our report of even date to the Standalone financial statementsof the Company for the year ended M:arch 31 2020:
We have audited the internal financial controls over financial re:porting of DHPINDIA LIMITED (''the
Company") as of March 31 2020 in conjunction with our audit of the Standalonefinancial statements of the Company for the year ended on.that date.
Management's Responsibility for Internal Financial Controls
The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internaJ 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 issued by the ln:stitute of Chartered Accountants of India. Theseresponsibilities includes 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 respective Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records. and the timely preparation ofreliable financial infonnation as required under the Companies Act 2013.
Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit i11accordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India and the Standards on Auditing prescribed under section 143(I 0) of the CompaniesAct 2013 to the extent applicabk to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comp1ly with ethical requirements and planand perform the audit to obtain reasonable assurance about whethe:r adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.
Our audit involves performing procedures to obtain audit eviidence about the adequacyof the internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financia.1 reportingassessing the risk that a ri1aterial weakness exists and testing and evaluating thedesign and operaling effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the internal financial-controls system overfinancial reporting of the Company.
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
(I) 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 nec~ssary 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.
Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreportingi 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.
In our opinion to the based of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2020 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the fnstitute of Chartered Accountants
I. In respect of the Company's - Property plant and equipment i.e. Fixed Assets:
(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Fixed Assets.
(b) The Fixed Assets have been physically verified by the management in a phasedmanner designed to cover all the ite.ms over a period of three years which in ouropinion is reasonable having regard to the size of the Company and nature of itsbusiness. Pursuant to the program a portion of the fixed assets has physically verifiedby the management during the year and no material discrepancies between the books recordsand the physical fixed assets have been noticed.
(c) According to the information and explanations given to us the records examined byus and based on examination of the conveyance deeds/registered sale deeds provided to uswe report that the title deeds comprising all the immovable properties of land andbuildings which are freehold are held in the name of the Company as at the Balance Sheetdate.
2. In respect of its Inventories :
(a) The management has conducted the physical verification of inventory at reasonableintervals.
(b) The discrepancies noticed on physical verification of the inventory as compared tobooks records which has been properly dealt with in the books of account were notmaterial.
3. The Company has not granted any loans secured or unsecured to the companies firmsor other Limited Liability Partnerships or other parties covered in the Registermaintained under Section 189 of the Act. Accordingly the provisions of clause 3 (iii) (a)to (c) of the Order are not applicable to the Company and hence not commented upon.
4. In our opinion and according to t he information and explanations gfven to us theCompany has complied with the provisions of section 185 and 186 of the Companies Act2013 in respect of loans investments guarantees and security.
5. The Company has not accepted any deposits from public and hence t he directivesissued by the Reserve Bank of India and the provisions of Section 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from public are not applicable.
6. We have broadly reviewed the cost records maintained by the Company pursuant toCompanies (Cost Records and Audit) Rules 2014 read with Companies (Cost Records andAudit) Amendment Rules 2014 prescribed by the Central Government under Section 148 of theCompanies Act 2013 and are of the opinion that prima facie the prescribed cost recordshave been maintained. We have however not made a detailed examination of the cost recordswith a view to determine whet her they are accurate or complete.
7. (a) According to the information and explanations given to us and on the basis ofour examination of the books of accounts and records the Company has been generallyregular in depositing undisputed statutory dues including Provident Fund EmployeesState Insurance Income-Tax Duty of Customs Value Added Tax Cess Goods & ServiceTaxes (IGST/CGST/SGST) and any other statutory dues with the appropriate authorities.According to the information and explanations given to us no undisputed amounts payablein respect of the above were in arrears as at March 31 2020 for a period of more than sixmonths from the date on when they become payable.
(b) According to the information and explanations given to us there are no dues ofincome-tax duty of customs value added tax goods & service tax (IGST/CGST/SGST)outstanding on account of any dispute.
8. In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of dues to banks. The Company has not takenloan either from financial institutions or from the government and has not issued anydebentures.
9. Based upon the audit procedures performed and the information and explanations givenby the management the Company has not raised money by way of initial public offer orfurther public offer including debt instruments and term loans. Accordingly theprovisions of clause 3 (ix) of the Order are not applicable to the .company and hence notcommented upon.
10. Based upon the audit procedures performed and the information and explanation givenby the management we report that no fraud by the Company or on the Company by its Officeror Employees has been noticed or reported during the year.
11. Based upon the audit procedures performed and the information and explanation givenby the management the managerial remuneration has been paid or provided in accordancewith the requisite approvals mandated by the provisions of section 197 read with ScheduleV to the Companies Act.
12. In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 4 (xii) of the Order are not applicable to the Company.
13. In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of the Companies Act 2013 and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards.
14. Based upon the audit procedures performed and the Information and explanationsgiven by the management the Company has not made any preferenttal i311otment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of clause 3 (xiv) of the Order are notapplicable to the Company and hence not commented upon.
15. Based upon the audit procedures performed and the information and explanationsgiven by the management the Company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of clause 3 (xv) ofthe Order are not applicable to the Company and hence not commented upon.
16. In our opinion the Company is not required to be registered under section 45 IA ofthe Reserve bank of India Act 1934 and accordingly the provislons of clause 3 (xvi)of the Order are not applicable to the Company and hence not commented upon.