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Dilip Buildcon Ltd.

BSE: 540047 Sector: Infrastructure
NSE: DBL ISIN Code: INE917M01012
BSE 12:15 | 18 Jun 837.95 5.05
(0.61%)
OPEN

828.20

HIGH

842.15

LOW

823.45

NSE 12:04 | 18 Jun 838.40 6.70
(0.81%)
OPEN

836.85

HIGH

843.00

LOW

821.95

OPEN 828.20
PREVIOUS CLOSE 832.90
VOLUME 4792
52-Week high 1248.35
52-Week low 405.05
P/E 18.06
Mkt Cap.(Rs cr) 11,461
Buy Price 837.05
Buy Qty 31.00
Sell Price 838.35
Sell Qty 9.00
OPEN 828.20
CLOSE 832.90
VOLUME 4792
52-Week high 1248.35
52-Week low 405.05
P/E 18.06
Mkt Cap.(Rs cr) 11,461
Buy Price 837.05
Buy Qty 31.00
Sell Price 838.35
Sell Qty 9.00

Dilip Buildcon Ltd. (DBL) - Auditors Report

Company auditors report

INDEPENDENT AUDITOR'S REPORT

To the Members of DILIP BUILDCON LIMITED

Report on the Standalone Indian Accounting Standards (Ind AS) Financial Statements

1. We have audited the accompanying standalone Ind AS Financial Statements of DilipBuildcon Limited (the Company) which comprise the Balance Sheet as at 31st March 2017the Statement of Profit and Loss (including Other Comprehensive Income) the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

Management's Responsibility for the Standalone Ind AS Financial Statements

2. 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 Ind AS nancial statements that give a true and fair view of the nancialposition nancial performance (including other comprehensive income) cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) prescribed underSection 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal nancial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone Ind AS nancial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

3. Our responsibility is to express an opinion on these standalone Ind AS nancialstatements based on our audit. In conducting our audit we have taken into account theprovisions of the Act the accounting and auditing standards and matters which arerequired to be included in the audit report under the provisions of the Act and the Rulesmade thereunder. We conducted our audit of the standalone Ind AS nancial statements inaccordance with the Standards on Auditing speci ed under Section 143(10) of the Act. ThoseStandards require that we comply with ethical requirements and plan and perform the auditto obtain reasonable assurance about whether the standalone Ind AS nancial statements arefree from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the standalone Ind AS nancial statements. The procedures selected depend onthe auditor's judgement including the assessment of the risks of material misstatement ofthe standalone Ind AS nancial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal nancial control relevant to the Company'spreparation of the standalone Ind AS nancial statements that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by Company's Directors as well as evaluating the overallpresentation of the standalone Ind AS nancial statements.

We believe that the audit evidence we have obtained is su cient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS nancial statements.

Opinion

4. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS nancial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including the Ind AS of thestate of affairs of the Company as at 31st March 2017 and its profit (including othercomprehensive income) its cash flows and the changes in equity for the year ended on thatdate.

Emphasis of Matter

5. Without qualifying our opinion we draw attention to the following:

Note 43 to the standalone Ind AS Financial Statements in respect of application made toSettlement Commission and the liability for tax/interest thereon made in the books ofaccounts based on the application made with the Settlement Commission

Other Matter

6. The comparative nancial information of the Company for the year ended March 31 2016and the transition date opening balance sheet as at April 1 2015 included in thesestandalone Ind AS nancial statements for the year ended March 31 2016 and March 31 2015are based on the statutory nancial statements prepared in accordance with the Companies(Accounting Standards) Rules 2006 (as amended) audited by us on which we expressed anunmodi ed opinion dated June 17 2016 and June 5 2015 as adjusted for the differences inaccounting principles adopted by the Company on transition to the Ind AS which have beenaudited by us.

Our opinion on the standalone Ind AS nancial statements and our report on Other Legaland Regulatory requirements below is not modi ed in respect of these matters.

Report on Other Legal and Regulatory Requirements

7. 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 ofthe Companies Act 2013 and on the basis of such veri cation of the books and records asconsidered appropriate and available and according to the information and explanationsgiven to us we enclose in the Annexure ‘A' a statement on the matters speci ed inparagraphs 3 and 4 of the order to the extent applicable.

8. 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 Balance Sheet the Statement of Profit and Loss (including other comprehensiveincome) the Cash Flow Statement and the Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account.

(d) In our opinion the aforesaid standalone Ind AS nancial statements comply with theIndian Accounting Standards speci ed under Section 133 of the Act.

(e) On the basis of written representations received from directors as on 31st March2017 and taken on record by the Board of Directors we report that none of the directorsis disquali ed as on 31st March 2017 from being appointed as director in terms of Section164 (2) of the Act.

(f) With respect to the adequacy of the internal nancial controls over nancialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in Annexure ‘B'

(g) 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 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 on its nancial positionin its nancial statements to the extent determinable/ascertainable. Refer Note 25 to thenancial statements.

ii) The Company does not have any long term contracts including derivative contractsfor which there are 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 during the year ended March 312017.

iv) The Company has provided requisite disclosures in the standalone Ind AS nancialstatements as regards to holdings as well as dealings in Speci ed Bank Notes during theperiod from 8th November 2016 to 30th December 2016. Based on audit procedures and relyingon representations provided to us by the management we report that the disclosures are inaccordance with the books of account maintained by the Company and as produced to us bythe Management. Refer Note 48 to the standalone Ind AS

Financial Statements.

Financial Statements.
For Mukund M. Chitale & Co. For Naresh Rajani & Co.
Chartered Accountants Chartered Accountants
Firm Registration Firm Registration
No. 106655W No. 008422C
SD/- SD/-
(S.M. Chitale) (Naresh Rajani)
Partner Place: Mumbai Proprietor Place: Bhopal
M.No. 111383 Date: 17.05.2017 M. No. 077500 Date: 17.05.2017

Annexure 'A' to the Auditors' Report

Statement on the matters speci ed in paragraphs 3 and 4 of Companies (Auditor's Report)Order 2016 (Referred to in paragraph 7 of our Audit Report of even date)

I) a) The Company has maintained proper records showing full particulars includingquantitative details and situations of xed assets except for certain items of plant andmachinery and vehicles for which location of said assets were under process of beingcompiled/updated.

b) According to information and explanations given to us xed assets of the Company arebeing physically veri ed according to a phased programme of veri cation so as to verifyall assets within a period of three years which in our opinion is reasonable havingregard to the size of the Company and the nature of its xed assets. As informed duringthe year no material discrepancies to the extent reconciled with the records available inthis respect were noticed on such veri cations.

c) According to the information and explanations given to us the title deeds ofimmovable properties are in the name of the Company except the following wherein theCompany is in the process of updating the documents in the name of the Company.

Particulars Gross Value (Amt. in Net Value (Amt. in
Lakhs) Lakhs)
Land 22.61 22.61

ii) As per information and explanations given to us the inventory has been physicallyveri ed by the management at intervals as Defined by the management. In our opinion thefrequency of veri cation needs to be further improved having regard to the size of theCompany and nature of its business. As informed to us the discrepancies noticed on verication to the extent reconciled with the records available in this respect between thephysical stocks and the book records were not material and have been appropriately dealtwith.

iii) According to the information and explanations provided to us the Company hasgiven unsecured loan/advance to nineteen parties (subsidiaries) covered in the Registermaintained under Section 189 of the Companies Act 2013.

a) We have been explained that these loans were given in view of the said companiesbeing wholly flowned subsidiaries where the Company is having long term strategic interestand thus such loans are not prejudicial to the interests of the Company.

b) Interest has not been charged and stipulations for repayment of principal amount hasnot been made against loans outstanding at the year end from the subsidiaries as given in(iii) (a) above. Having regard to the above facts and explanations it is not possible toascertain and comment whether the receipt of principal amount and interest are regular ornot.

c) Since the repayment schedule for such loans is not stipulated no loan is overduefor more than ninety days. Hence it is not possible to ascertain and comment whether theCompany has taken reasonable steps for recovery of the Principal and the Interest.

iv) In our opinion and according to the information and explanations provided to usthe Company has complied with the provisions of Section 185 and 186 of the Companies Act2013 in respect of loans given Investments made guarantees given.

v) According to the information and explanations given to us the Company has notaccepted any deposits during the year from public within the meaning of the directivesissued by Reserve Bank of India and the provisions of sections 73 to 76 or any otherrelevant provisions of the Companies Act 2013 and rules framed thereunder and thus theprovisions of Clause 3(v) of the Order are not applicable.

vi) The Company is required to maintain cost records as prescribed by the CentralGovernment under section 148(1) of the Companies Act 2013. We have broadly reviewed thecost records maintained by the Company pursuant to the rules made by the CentralGovernment for the maintenance of the cost records under section 148(1) of the CompaniesAct 2013 and are of the opinion that prima facie the prescribed records have beenmaintained. We have however not made a detailed examination of the said records.

vii) a) According to the information and explanations given to us the Company isgenerally regular in depositing with appropriate authorities undisputed statutory duesincluding Provident Fund Employees' State Insurance Income Tax Sales Tax Service TaxCustom Duty Excise Duty Value Added Tax Cess except for Provident Fund and Tax deductedat source wherein certain delays in payments were observed during the year ended31.03.2017. There were no undisputed amounts of statutory dues including Provident FundEmployees' State Insurance Income Tax Sales Tax Service Tax Custom Duty Excise DutyValue Added Tax Cess which were due for more than six months from the date they becomepayable as at the year end.

b) According to the records examined by us and as per the information and explanationsgiven to us the particulars of statutory dues as at March 31 2017 which have not beendeposited on account of disputes and the forum where the dispute is pending is as under:

Name of the Statute Nature of Dues Disputed Amount Period to which it pertains Forum where pending
M. P. VAT ACT 2002 VAT & Entry Tax Rs.156.56 lakhs F.Y 2008-09 M.P. Commercial Tax Appellate

viii) According to information and explanations given to us the Company has notdefaulted in repayment of dues of loans taken from banks and nancial institutions. TheCompany has not borrowed any amount from Debenture holders during the year.

ix) According to the information and explanations given to us the Company raised moneyby way of initial public offer of equity shares during the year. The Company has used themoney raised by way of initial public offer of equity shares and term loans during theyear for the purpose for which they were raised.

x) According to the information and explanations given to us no material fraud on theCompany by its Officers or employees has been noticed and reported during the year norhave we been informed of such case by the management.

xi) According to the information and explanations given to us and based on ourexamination of the records the Company has paid / provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V of the Companies Act 2013.

xii) In our opinion and according to the information and explanation given to us theCompany is not a nidhi Company. Accordingly provision of clause 3 (xii) of the Order isnot applicable.

xiii) According to the information and explanation given to us and based on our verication of the records of the Company and on the basis of review and approvals by the Boardof Directors and Audit Committee the transactions with the related parties are incompliance with Section 177 and 188 of the Act where applicable and the details have beendisclosed in the nancial statements as required by applicable accounting standard.

xiv) According to the information and explanation given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year therefore provisions of Clause 3(xiv) of the order is not applicable.

xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or person connected with them. Accordingly paragraph 3 (xv)of the Order is not applicable.

xvi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company is not required to be registeredunder Section 45 IA of the Reserve Bank of India Act 1934. Accordingly provisions ofClause 3 (xvi) of the Order is not applicable to the Company.

For Mukund M. Chitale & Co. For Naresh Rajani & Co.
Chartered Accountants Chartered Accountants
Firm Registration Firm Registration
No. 106655W No. 008422C
SD/- SD/-
(S.M. Chitale) (Naresh Rajani)
Partner Place: Mumbai Proprietor Place: Bhopal
M.No. 111383 Date: 17.05.2017 M. No. 077500 Date: 17.05.2017

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

(Referred to in paragraph 8 (f) of our Audit Report of even date)

1. We have audited the internal nancial controls over nancial reporting of DilipBuildcon Limited (“the Company”) as of March 31 2017 in conjunction with ouraudit of the standalone Ind AS nancial statements of the Company for the year ended onthat date.

Management's Responsibility for Internal Financial Controls

2. The Company's management is responsible for establishing and maintaining internalnancial controls based on the internal control over nancial reporting criteria establishedby the Company considering the essential components of internal control stated in the“Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India” (ICAI). Theseresponsibilities include the design implementation and maintenance of adequate internalnancial controls that were operating effectively for ensuring the orderly and e cientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable nancialinformation as required under the Companies Act 2013.

Auditors' Responsibility

3. Our responsibility is to express an opinion on the Company's internal nancialcontrols over nancial 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 ICAI and deemed tobe prescribed under Section 143(10) of the Companies Act 2013 to the extent applicableto an audit of internal nancial controls both applicable to an audit of InternalFinancial Controls and both issued by the Institute of Chartered Accountants of India.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 internalnancial controls over nancial 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 nancial controls system over nancial reporting and their operatingeffectiveness. Our audit of internal nancial controls over nancial reporting includedobtaining an understanding of internal nancial controls over nancial reporting assessingthe risk that a material weakness exists and testing and evaluating the design andoperating 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

nancial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is su cient and appropriate toprovide a basis for our audit opinion on the Company's internal nancial controls systemover nancial reporting.

Meaning of Internal Financial Controls over Financial Reporting

4 A company's internal nancial control over nancial reporting is a process designed toprovide reasonable assurance regarding the reliability of nancial reporting and thepreparation of nancial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal nancial control over nancialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly re ect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of nancial 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 nancial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

5 Because of the inherent limitations of internal nancial controls over nancialreporting 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 nancial controls over nancialreporting to future periods are subject to the risk that the internal nancial control overnancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

6 In our opinion to the best of our information and according to the explanationsgiven to us the Company has in all material respects an adequate internal nancialcontrols system over nancial reporting and such internal nancial controls over nancialreporting were operating effectively as at March 31 2017 based on the internal controlover nancial 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 Institute of Chartered Accountants ofIndia.

For Mukund M. Chitale & Co. For Naresh Rajani & Co.
Chartered Accountants Chartered Accountants
Firm Registration Firm Registration
No. 106655W No. 008422C
SD/- SD/-
(S.M. Chitale) (Naresh Rajani)
Partner Place: Mumbai Proprietor Place: Bhopal
M.No. 111383 Date: 17.05.2017 M. No. 077500 Date: 17.05.2017