You are here » Home » Companies » Company Overview » Dixon Technologies (India) Ltd

Dixon Technologies (India) Ltd.

BSE: 540699 Sector: Consumer
NSE: DIXON ISIN Code: INE935N01012
BSE 00:00 | 22 May 4337.45 41.30
(0.96%)
OPEN

4339.50

HIGH

4378.90

LOW

4244.20

NSE 00:00 | 22 May 4342.40 46.10
(1.07%)
OPEN

4299.00

HIGH

4375.00

LOW

4242.10

OPEN 4339.50
PREVIOUS CLOSE 4296.15
VOLUME 867
52-Week high 4899.00
52-Week low 1830.90
P/E 53.40
Mkt Cap.(Rs cr) 5,018
Buy Price 4275.00
Buy Qty 2.00
Sell Price 4337.45
Sell Qty 2.00
OPEN 4339.50
CLOSE 4296.15
VOLUME 867
52-Week high 4899.00
52-Week low 1830.90
P/E 53.40
Mkt Cap.(Rs cr) 5,018
Buy Price 4275.00
Buy Qty 2.00
Sell Price 4337.45
Sell Qty 2.00

Dixon Technologies (India) Ltd. (DIXON) - Auditors Report

Company auditors report

To the Members of

DIXON TECHNOLOGIES (INDIA) LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of

DIXON TECHNOLOGIES (INDIA) LIMITED ("the Company") which comprise thebalance sheet as at 31 March 2019 and the statement of Profit and Loss including othercomprehensive income statement of changes in equity and statement of cash flows for theyear then ended and notes to the standalone financial statements including 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 standalonefinancialstatementsgivetheinformationrequired 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 amendedand other accounting principles generally accepted in India of the state of affairs ofthe Company as at 31 March 2019 and total comprehensive income changes in equity and itscash flows for the 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 Standards 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 accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India ("theICAI") together with the ethical requirements that are relevant to our audit of thestandalone financial statements under the provisions of the Act and the Rules thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the ICAI's Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate 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 matteर. We have determined the matter described below to be the key auditmatter to be communicated in our report.

Description of the Key audit matter
Key audit matter Auditor's response
The Company has operating facilities at various locations and based on the various incentive schemes of the respective state Government the Company is eligible for the incentives. We have examined the processes and controls relating to recognition and measurement of incentive income. In this connection we have:
The Company is required to fulfil the conditions mentioned in the notification/circular pertaining to that scheme for eligibility of incentive. The management applies its judgement for the recognition of incentive income. Where in the final determination of the claim accepted by the authorities can be modified/delayed. - Reviewed Government schemes and policy relating to incentives of the respective state governments
- Examined registration for the scheme subsequent departmental orders and regulations issued from time to time.
Given the complexity and magnitude of potential exposures across the company and the judgement involved this is a key audit matter - Checked the eligibility criteria including investment made by the Company.
- Performed substantive procedures for calculation of eligible amount of incentives and the claims made by the Company.
- Reviewed management assessment for likelihood of recoverability.

Other Information

Information Other than the Ind AS Standalone Financial Statements and Auditor's Reportthereon

• The Company's Board of Directors is responsible for the other information. Theother information comprises of the Director's Report and Corporate Governance Reportwhich we obtained on the date of this auditor's report.

• Our opinion on the standalone financial statements does not cover the otherinformation and we will not express any form of assurance conclusion thereon.

• In connection with our audit of the standalone financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially 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 that fact. We havenothing to report in this regard

Management's Responsibility for the Standalone 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 standalone financial statementsthat give a true and fair view of the financial position financial performance totalcomprehensive income changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards specified under Section 133 of the Act. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error. In preparing thestandalone financial statements management is responsible for assessing the Company'sability to continue as a going concern disclosing as applicable matters related togoing concern and using the going concern basis of accounting unless management eitherintends to liquidate the Company or to cease operations or has no realistic alternativebut to do so. The Board of Director is also responsible for overseeing the company'sfinancial reporting process.

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 auditor's 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 judgment 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 appropriate toprovide 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 companyhas adequate internal financial controls system in place and the operating effectivenessof 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 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 represent the underlying transactions and events in a manner that achieves fairpresentation. Materiality is the magnitude of misstatements in the standalone financialstatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified 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 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. From the matters communicated withthose charged with governance we determine those matters that were of most significancein the audit of the standalone financial statements of the current period and aretherefore the key audit matteर. We describe these matters in our auditor's reportunless law or regulation precludes public disclosure about the matter or when inextremely rare circumstances we determine that a matter should not be communicated in ourreport because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of Section 143 ofthe Act we give in the "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

2. As required by Section 143(3) of the Act we report that: (a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit. (b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books. (c) The Balance Sheet the Statement of Profit and Lossincluding Other Comprehensive Income Statement of Changes in Equity and the Statement ofCash

Flow dealt with by this Report are in agreement with the books of account. (d) In ouropinion the aforesaid standalone financial statements comply with the Indian AccountingStandards (‘Ind AS') specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. (e) On the basis of the written representations receivedfrom the directors as on 31 March 2019 taken on record by the Board of Directors none ofthe directors is disqualified as on 31 March 2019 from being appointed as a director interms of Section 164 (2) of the Act. (f) With respect to the adequacy of the internalfinancial controls with reference to standalone financial statements of the Company andthe operating effectiveness of such controls refer to our separate Report in"Annexure B". (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 theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance 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 in our opinionand to the best of our information and according to the explanations given to us: i. TheCompany has disclosed the impact of pending litigations on its financial position in itsstandalone financial statements – Refer Note 36 (a) to the financial statements; ii.the Company did not have any long-term contracts including derivative contracts for whichthere were any material foreseeable losses – Refer Note 36 (f) to the standalonefinancial statements iii. There were no amounts which were required to be transferred tothe Investor Education and Protection Fund by the Company - Refer Note 36 (e) to thefinancial statements

For S.N. Dhawan & Co LLP
Chartered Accountants
Firm Registration No.: 000050N/N500045
Vinesh Jain
Place: Noida Partner
Date: 24 May 2019 Membership No.: 087701

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' section of the Independent Auditor's Report of even date to the members ofDIXON TECHNOLOGIES (INDIA) LIMITED on the financial statements as of and for the yearended 31 March 2019

(i) In respect of the Company's fixed assets (comprising of property plant andequipment and other intangible assets)

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

b. The Company has a regular program of physical verification of its fixed assets underwhich fixed assets are verified in a phased manner over a period of three years which inour opinion is reasonable having regard to the size of the Company and the nature of itsassets. In accordance with this program certain fixed assets were verified during theyear and according to the information and explanation given to us no materialdiscrepancies were noticed on such verification.

c. According to the information and explanations given to us and the records examinedby us and based on the examination of the registered sale deed / transfer deed /conveyance deed provided to us we report that the title deeds of all the freeholdimmovable properties (which are included under the head ‘Property plant andequipment') are held in the name of the Company.

(ii) The management has conducted physical verification of inventory at reasonableintervals during the year and according to the information and explanations given to usno material discrepancies between physical inventory and book records were noticed onphysical verification.

(iii) According to the information and explanations given to us the Company hasgranted unsecured loan to a company covered in the register maintained under section 189of the Companies Act 2013.

(a) in our opinion the terms and conditions of grant of such loans are not primafacie prejudicial to the company's interest.

(b) The loan in repayable on demand

(c) there is no overdue amount in respect of loans granted to such company

(iv) In our opinion and according to the information and explanations given to uscompany has complied with the provisions of Sections 185 and 186 of the Act in respect ofloans investments guarantees and security

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits during the year and had no unclaimed deposits at thebeginning of the year within the meaning of Sections 73 to 76 of the Act and the Companies(Acceptance of Deposits) Rules 2014 (as amended). Accordingly the provisions of clause3(v) of the Order are not applicable.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the Rules made by the Central Government for the maintenance of cost records undersub-section (1) of Section 148 of the Act in respect of Company's products and are of theopinion that prima facie the prescribed accounts and records have been made andmaintained. However we have not made a detailed examination of the cost records with aview to determine whether they are accurate or complete.

(vii) a. According to the information and explanations given to us the Company isgenerally been regular in depositing undisputed statutory dues including provident fundemployees' state insurance income-tax duty of customs duty of excise goods andservices tax (‘GST') cess and other material statutory dues as applicable to theappropriate authorities. Further no undisputed amounts payable in respect thereof wereoutstanding at the year-end for a period of more than six months from the date they becomepayable.

b. According to the information and explanations given to us the dues outstanding inrespect of income-tax goods and service tax custom duty duty of excise sales tax andvalue added tax and other statutory dues on account of any dispute are as follows:

Name of statue Nature of dues Amount J /Lakh Amount paid under protest J /Lakh Period to which the amount relates Forum where dispute is pending
Income Tax Act Income Tax 169.62 - 2012-13 Income Tax
1961 Appellate Tribunal
Income Tax 601.81 - 2013-14 2014-15 and 2015-16 Commissioner of Income Tax (Appeals)
771.43 -
Goods and Services Tax Act 2017 Goods and Services Tax 2.73 2.73 2017-18 and 2018- 19 Assistant Commissioner of Goods and Services Tax
2.73 273
Custom Act 1962 Custom Duty 149.50 9.89 2009-10 2010-11 2011-12 2013-14 and 2014-15 Customs Excise and Service Tax
Custom Duty 421.46 1.76 2009-10 2010-11 and 2011-12 Appellate Tribunal Commissioners of Customs
Custom Duty 42.68 120.00 2011-12 Additional Commissioners of Customs
613.64 131.65
Central Excise Act Excise Duty 453.82 - 2007-08 Supreme Court
1944
Excise Duty 406.96 28.16 2006-07 2007-08 2008-09 2009-10 2012-13 2013-14 and 2014-15 Customs Excise and Service Tax
Excise Duty 36.24 - 2008-09 Appellate Tribunal Commissioner of Central Excise
Excise Duty 28.52 - 2009-10 Additional Commissioner of Central Excise
Excise Duty 8.13 2.25 2007-08 Assistant commissioner of Central Excise
933.67 30.41
Central Sales Tax Act 1956 Sales Tax 8.02 1.22 2009-10 2010-11 and 2011-12 High Court
Sales Tax 195.59 32.36 2008-09 2010-11 2011-12 2012-13 2017-18 2018-19 Joint Commissioner
Sales Tax 12.24 8.34 2009-10 2011-12 2016-17 Deputy Commissioner
Sales Tax 0.76 0.76 2014-15 Assistant Commissioner
216.61 42.68

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of loans or borrowings to any financialinstitutions and banks. The company has no outstanding dues in respect of government loansand there are no dues payable to any debenture holder during the year.

(ix) In our opinion and according to the information and explanations given to usmoney raised by further public offer of equity shares and term loans availed by theCompany during the year were prima facie applied by the Company for the purposes forwhich the moneys were raised other than temporary deployment pending allocation.

(x) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company or on the company by its officers or employees hasbeen noticed or reported during the period covered by our audit.

(xi) In our opinion and according to the information and explanations given to usmanagerial remuneration has been paid / provided by the company in accordance with therequisite approvals mandated by the provisions of Section 197 of the Act read withSchedule V to the Act.

(xii) The Company is not a Nidhi Company. Accordingly provisions of clause 3(xii) ofthe Order are not applicable.

(xiii) In our opinion and according to the information and explanations given to usall transactions with the related parties are in compliance with Sections 177 and 188 ofAct where applicable and the requisite details have been disclosed in the financialstatements etc. as required by the applicable accounting standards.

(xiv) During the year the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures. Accordingly provisions ofclause3 (xiv) of the order are not applicable.

(xv) In our opinion and according to the information and explanations given to us thecompany has not entered into any non-cash transactions with the directors or personsconnected with them covered under Section 192 of the Act. Accordingly provisions ofclause3 (xv) of the order are not applicable.

(xvi) The company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly provisions of clause3 (xvi) of the order are notapplicable.

For S.N. Dhawan & Co LLP
Chartered Accountants
Firm Registration No.: 000050N/N500045
Vinesh Jain
Place: Noida Partner
Date: 24 May 2019 Membership No.: 087701

ANNEXURE B

TO THE INDEPENDENT AUDITOR'S REPORT

of even date on the financial statements of DIXON TECHNOLOGIES (INDIA) LIMITED

(Referred to in paragraph 2(f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the Members of DIXON TECHNOLOGIES (INDIA) LIMITEDof even date)

Independent Auditor's report on the Internal Financial Controls with reference tostandalone financial statements under Clause (i) of Subsection 3 of Section 143 of theCompanies Act 2013 ("the Act")

1. We have audited the internal financial controls with reference to the financialstatements of DIXON TECHNOLOGIES (INDIA) LIMITED ("the Company") as of 31 March2019 in conjunction with our audit of the standalone financial statements of the Companyfor the year ended on that date.

Management's Responsibility for Internal Financial Controls

2. The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control with reference to the financialstatements criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of the company's business including adherence to 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 information as required under the Act.

Auditors' Responsibility

3. Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to the financial statements based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") and the Standards on Auditing issuedby the Institute of Chartered Accountants of India (ICAI) and deemed to be prescribedunder section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls with reference to the financial statementswere established and maintained and if such controls operated effectively in all materialrespects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls with reference to the financial statements and theiroperating effectiveness. Our audit of internal financial controls with reference to thefinancial statements included obtaining an understanding of internal financial controlswith reference to the financial statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgement including the assessment of the risks of material misstatement of the financialstatements whether due to 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 internal financial controls systemwith reference to the financial statements.

Meaning of Internal Financial Controls with reference to the financial statements

6. A company's internal financial controls with reference to the financial statementsis a process designed to provide reasonable assurance regarding the reliability offinancial reporting and the preparation of financial statements for external purposes inaccordance with generally accepted accounting principles. A company's internal financialcontrols with reference to the financial statements includes those policies and proceduresthat (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) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements.

Inherent Limitations of Internal Financial Controls with reference to the financialstatements

7. Because of the inherent limitations of internal financial controls with reference tothe financial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to the financial statements to future periods are subject to the risk that theinternal financial controls with reference to the financial statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.

Opinion

8. In our opinion the Company has in all material respects adequate internalfinancial controls system with reference to the financial statements and such internalfinancial controls with reference to the financial statements operating effectively as at31 March 2019 based on the internal control with reference to the financial statementscriteria 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 Institute of Chartered Accountants of India.

For S.N. Dhawan & Co LLP
Chartered Accountants
Firm Registration No.: 000050N/N500045
Vinesh Jain
Place: Noida Partner
Date: 24 May 2019 Membership No.: 087701