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DIC India Ltd.

BSE: 500089 Sector: Industrials
NSE: DICIND ISIN Code: INE303A01010
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OPEN 364.00
PREVIOUS CLOSE 374.00
VOLUME 46
52-Week high 493.00
52-Week low 321.00
P/E 35.06
Mkt Cap.(Rs cr) 354
Buy Price 376.55
Buy Qty 11.00
Sell Price 398.00
Sell Qty 5.00
OPEN 364.00
CLOSE 374.00
VOLUME 46
52-Week high 493.00
52-Week low 321.00
P/E 35.06
Mkt Cap.(Rs cr) 354
Buy Price 376.55
Buy Qty 11.00
Sell Price 398.00
Sell Qty 5.00

DIC India Ltd. (DICIND) - Auditors Report

Company auditors report

To The Members of DIC India Limited

Report on the Ind AS Financial Statements

Opinion

We have audited the accompanying financial statements of DIC India Limited (“theCompany”) which comprise the Balance Sheet as at December 31 2021 and theStatement of Profit and Loss (including Other Comprehensive Income) the Cash FlowsStatement and the Statement of Changes in Equity for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 (“the Act”) in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended(“Ind AS”) and other accounting principles generally accepted in India of thestate of affairs of the Company as at December 31 2021 and its profit totalcomprehensive income its cash flows statement and the changes in equity for the yearended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing specified under section 143(10) of the Act (SAs). Our responsibilities underthose Standards are further described in the Auditor's Responsibility for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules made thereunder and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the ICAI's Code of Ethics. We believe that the audit evidence obtained by us issufficient and appropriate to provide a basis for our audit opinion on the financialstatements.

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 financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined the matter described below to be the key audit matters to be communicatedin our report.

Key Audit Matter Auditor's Response
Revenue Recognition 1. Considered the Company's revenue recognition policy and assessed its compliance with Ind AS 115 'Revenue from Contracts with Customers';
The Company recognises revenues when control of the goods is transferred to the customer at an amount that reflects the net consideration which the Company expects to receive for those goods from the customers.
The terms of sales arrangements including the timing of transfer of control create complexities that requires judgement in determining sales revenues. 2. Assessed the design and tested the operating effectiveness of internal controls related to recognition of revenue.
Considering the above factors and risk associated with cut offs relating to revenue recognition we have determined the same to be a key audit matter. 3. Performed sample tests of individual sales transaction and traced to sales invoices sales orders and other related documents. In respect of samples selected tested the timing of recognition of revenue.
4. Selected samples of sales transactions made pre- and post- year end agreed the period of revenue recognition to underlying documents including customer confirmations.
5. Assessed the relevant disclosures made in the Ind AS financial statements.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Board's report including annexuresto Board's Report but does not include the financial statements and our auditor's reportthereon.

Our opinion on the financial statements does not cover the other information and willnot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report the fact. We havenothing to report in this regard.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance including othercomprehensive income cash flows and changes in equity of the Company in accordance withthe Ind AS and other accounting principles generally accepted in India.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatement that give a true and fair view and are free from material misstatement whetherdue 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.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We 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 forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal financial 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 system in place and the operating effectiveness ofsuch controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the 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 we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our 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 financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions 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 areasonably knowledgeable user of the financial statements may be in uenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements 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 ndings 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.

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

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit we report that:

a) We have sought and obtained all the information and explanations which to thebest of 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 and so far as it appears from our examination of those books except that thebackup of the books of account and other records and papers maintained in electronic modehas not been maintained on servers physically located in India.

c) The Balance Sheet the Statement of Profit and Loss including OtherComprehensive Income the Cash Flow Statement and Statement of Changes in Equity dealtwith by this Report are in agreement with the relevant books of account.

d) In our opinion the aforesaid financial statements comply with the Ind ASspecified under Section 133 of the Act.

e) On the basis of the written representations received from the directors as onDecember 31 2021 taken on record by the Board of Directors none of the directors isdisqualified as on December 31 2021 from being appointed as a director in terms ofSection 164(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 “Annexure A”. Our report expresses an unmodi ed opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting. g) With respect to the other matters to be included in theAuditor's Report in accordance with the requirements of section 197(16) of the Act asamended

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of 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:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements. (Refer Note no 31(a) of the Ind AS financialstatements)

ii. The Company did not have any long-term contracts including derivativecontracts for which there were any material foreseeable losses. (Refer Note no 40 of theInd AS financial statements)

iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company. (Refer Note no31 (c) of the Ind AS financial statements)

2. As required by the Companies (Auditor's Report) Order 2016 (“theOrder”) issued by the Central Government in terms of Section 143(11) of the Act wegive in “Annexure B” a statement on the matters specified in paragraphs 3 and 4of the Order.

For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm's Registration No. 117366W/W-100018)
Place: Gurugram
Date: February 11 2022
Sameer Rohatgi
Partner
Membership No. 094039
UDIN: 22094039ABJVWF9263

Annexure A to the Independent Auditor's Report

(Referred to in paragraph 1(f) under 'Report on Other Legal and RegulatoryRequirements' section of our report of even date)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 (“the Act”)

We have audited the internal financial controls over financial reporting of DIC INDIALIMITED (“the Company”) as of December 31 2021 in conjunction with our audit ofthe financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing 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

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the “Guidance Note”) and the Standards on Auditing issued by the Institute ofChartered Accountants of India and deemed to be prescribed under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controls.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and 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.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe 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 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 judgement including the assessment of the risks ofmaterial 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 Company's internal financial controls systemover financial reporting.

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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (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 Company are being made only in accordance with authorisations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of theCompany's assets that could have a material 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 our opinion to the best 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 December 31 2021 based on “the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India”.

For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm's Registration No. 117366W/W-100018)
Place: Gurugram
Date: February 11 2022
Sameer Rohatgi
Partner
Membership No. 094039
UDIN: 22094039ABJVWF9263

Annexure B to the Independent Auditors' Report

(Referred to in paragraph 2 under 'Report on Other Legal and Regulatory Requirements'section of our report of even date)

i. In respect of its Property plant and equipment:

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Property plant and equipment.

(b) The Company has a program of veri cation of Property plant and equipment tocover all the items in a phased manner over a period of three years which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. Pursuant to the program certain Property plant and equipment were physicallyveri ed by the Management during the year. According to the information and explanationsgiven to us no material discrepancies were noticed on such veri cation.

(c) According to the information and explanations given to us and the recordsexamined by us and based on the examination of the registered sale deed / transfer deed /conveyance deed provided to us we report that the title deeds comprising all theimmovable properties of land and buildings are held in the name of the Company as at thebalance sheet date except as mentioned below. In respect of immovable properties of landand buildings that have been taken on lease and disclosed as Right to use assets in thefinancial statements the lease agreements are in the name of the Company where theCompany is the lessee in the agreement except as mentioned below:

No of Asset Cases Category Gross Block as at December 31 2021 Net Block as at December 31 2021 Remarks
1 Freehold land 0.86 0.86 The title deeds are in the name of Coates of India Limited (erstwhile name of the Company) and mutation of the name is pending
4 Leasehold land 128.77 87.37
2 Building 15.03 4.17

ii. As explained to us the inventories (other than goods in transit) werephysically veri ed during the year by the Management at the reasonable intervals and nomaterial discrepancies have been noticed on physical veri cation. Inventories in transitwere veri ed by the management based on subsequent delivery challans.

iii. The Company has not granted any loans secured or unsecured to companiesrms Limited Liability Partnerships or other parties covered in the register maintainedunder section 189 of the Companies Act 2013.

iv. The Company has not granted any loans made investments or provided guaranteesand hence reporting under clause (iv) of the Order 2016 is not applicable.

v. According to the information and explanations given to us the Company has notaccepted any deposit during the year. The Company does not have any unclaimed deposits andaccordingly the provisions of Sections 73 to 76 or any other relevant provisions of theCompanies Act 2013 are not applicable to the Company.

vi. The maintenance of cost records has been specified by the Central Governmentunder section 148(1) of the Companies Act 2013. We have broadly reviewed the cost recordsmaintained by the Company pursuant to the Companies (Cost Records and Audit) Rules 2014as amended prescribed by the Central Government under sub-section (1) of Section 148 ofthe Companies Act 2013 and are of the opinion that prima facie the prescribed costrecords have been made and maintained. We have however not made a detailed examinationof the cost records with a view to determine whether they are accurate or complete.

vii. According to the information and explanations given to us in respect of statutorydues:

(a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Employees' State Insurance Income-tax Sales Tax Goods andServices Tax Custom Duty Value Added Tax and Cess with the appropriate authorities.Also refer to the note 33(d) to the financial statements regarding management assessmenton certain matters relating to the provident fund.

(b) There are no undisputed amounts payable in respect of Provident FundEmployees' State Insurance Income-tax Sales Tax Goods and Services Tax Custom DutyValue Added Tax and Cess in arrears as at December 31 2021 for a period of more than sixmonths from the date they became payable.

(c) Details of dues of Income tax Sales Tax Service Tax Custom Duty and ExciseDuty which have not been deposited as on December 31 2021 on account of disputes aregiven below:

Name of Statute Nature of Dues Forum where Dispute is Pending Period to which the amount relates Amount Involved (Rupees in Lakhs) Amount Unpaid (Rupees in Lakhs)
Income Tax Act 1961 Income Tax Deputy Commissioner of Income tax 2012-13 102.80 -
Income Tax Appellate Tribunal 2013-14 209.90 -
Hon'ble High court at Calcutta 1989-1990 and 1988-1989 27.77 27.77
Central sales Tax Act 1956 Central Sales tax Commercial Taxes Tribunal 2008-09 6.00 6.00
Joint commissioner of Sales Tax (Appeals) 2010-11 and 2012-13 7.58 2.36
Deputy Commissioner 2003-04 2011-12 1.42 1.42
Uttar Pradesh Value Added Tax Act 2008 Value Commercial Taxes Tribunal 2009-10 2010-11 35.27 15.66
Added Tax Additional Commissioner (Appeals) 2013-14 3.81 -
Central Excise Act 1944 Excise Duty Custom Excise & Service Tax Appellate Tribunal 1994-95 to 1996-97 2008-09 89.74 87.78
Commissioner of Central Excise 1997-98 120.24 120.24
Joint Commissioner CGST & Central Excise 1998-99 7.32 7.32
Commissioner (Appeals) 2005-06 to 2007-08 74.16 74.16
Finance Act 1944 Custom Service Tax Commissioner (Appeals) 2001-02 to 2004-05 172.20 172.20
Act 1962 Customs Duty Customs Excise & Service Tax Appellate Tribunal 2005-06 2009-10 to 254.02 250.08
2010-11

We have been informed that there are no dues of Goods and Services Tax which have notbeen deposited as on December 31 2021 on account of disputes.

Annexure B to the Independent Auditors' Report

viii. In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of loans or borrowings to banks. TheCompany has neither obtained any loan or borrowings from government or financialinstitution nor has it issued any debentures.

ix. The Company has not raised moneys by way of initial public offer or furtherpublic offer (including debt instruments) or term loans and hence reporting under clause(ix) of the Order is not applicable.

x. To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company and no material fraud on the Company by its of cersor employees has been noticed or reported during the year.

xi. In our opinion and according to the information and explanations given to usthe Company has paid / provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.

xii. The Company is not a Nidhi Company and hence reporting under clause 3(xii) ofthe Order is not applicable.

xiii. In our opinion and according to the information and explanations given to usthe Company is in compliance with Section 188 and 177 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the financial statements etc. as required by theapplicable accounting standards.

xiv. During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause 3(xiv) of the Order is not applicable to the Company.

xv. In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsdirectors or persons connected with him and hence provisions of section 192 of theCompanies Act 2013 are not applicable.

xvi. The Company is not required to be registered under section 45-IA of theReserve Bank of India Act 1934.

For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm's Registration No. 117366W/W-100018)
Place: Gurugram
Date: February 11 2022
Sameer Rohatgi
Partner
Membership No. 094039
UDIN: 22094039ABJVWF9263

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