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Dollar Industries Ltd.

BSE: 541403 Sector: Industrials
NSE: DOLLAR ISIN Code: INE325C01035
BSE 00:00 | 28 May 112.05 3.10
(2.85%)
OPEN

109.20

HIGH

113.40

LOW

109.00

NSE 00:00 | 28 May 112.20 3.55
(3.27%)
OPEN

108.80

HIGH

114.00

LOW

108.75

OPEN 109.20
PREVIOUS CLOSE 108.95
VOLUME 3269
52-Week high 294.00
52-Week low 94.00
P/E 9.25
Mkt Cap.(Rs cr) 635
Buy Price 111.60
Buy Qty 25.00
Sell Price 112.50
Sell Qty 3.00
OPEN 109.20
CLOSE 108.95
VOLUME 3269
52-Week high 294.00
52-Week low 94.00
P/E 9.25
Mkt Cap.(Rs cr) 635
Buy Price 111.60
Buy Qty 25.00
Sell Price 112.50
Sell Qty 3.00

Dollar Industries Ltd. (DOLLAR) - Auditors Report

Company auditors report

To the Members of

Dollar Industries Limited

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the accompanying standalone financial statements of Dollar IndustriesLimited ("the Company") which comprise the Balance sheet as at March 31 2019the 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 notes to thefinancial statements including a summary of significant accounting policies and otherexplanatory information.(hereinafter referred to as "the standalone financialstatements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended and other accounting principles generally accepted in India of the state ofaffairs (financial position) of the Company as at March 31 2019 its profit (financialperformance including other comprehensive income) its cash flows and the changes inequity for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing (SAs) specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements' section of our report. We areindependent of the Company in accordance with the ‘Code of Ethics' issued by theInstitute of Chartered Accountants (ICAI) of India together with the ethical requirementsthat are relevant to our audit of the standalone financial statements under the provisionsof the Act and the Rules there under and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the ICAI's Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. For each matter below our description of how our auditaddressed the matter is provided in that context.

Key audit matter How our audit addressed the key audit matter
Estimation of rebates discounts and sales returns (Refer Note 3.10 to the standalone financial statements) Our procedures included but was not limited to the following:
The Company sells its products through various channels like distributors retailers e-commerce etc. and recognizes liabilities related to rebates discounts and sales returns. Obtained a detailed understanding from the management with regard to controls relating to recording of rebates discounts sales returns and period end provisions relating to estimation of revenue and tested the operating effectiveness of such controls;
As per the accounting policy of the Company the revenue is recognised upon transfer of control of goods to the customer and thus requires an estimation of the revenue taking into consideration the rebates discounts and sales returns as per the terms of the contracts. With regard to the determination of revenue the management is required to make significant estimates in respect of following: Tested the inputs used in the estimation of revenue in context of rebates discounts and sales returns to source data;
the rebates/ discounts linked to sales which will be given to the customers pursuant to schemes offered by the Company; Assessed the underlying assumptions used for determination of rebates discounts and sales returns;
Ensured the completeness of liabilities recognised by evaluating the parameters for sample schemes;
Key audit matter How our audit addressed the key audit matter
provision for sales returns where the customer has the right to return the goods to the Company; and Performed look-back analysis for past trends by comparing recent actuals with the estimates of earlier periods and assessed subsequent events;
compensation (discounts) offered by the customers to the ultimate consumers at the behest of the Company. Tested credit notes issued to customers and payments made to them during the year and subsequent to the year end along with the terms of the related schemes.
The matter has been determined to be a key audit matter in view of the involvement of significant estimates by the management. Our Conclusion :
Based on the above procedures we did not identify any significant deviation to the assessment made by management in respect of estimation of rebates discounts and sales returns.
Recoverability of trade receivables Our procedures included but was not limited to the following:
(Refer Note 3.4.a and 15 to the Standalone financial statements) Evaluated and tested the controls relating to credit control and approval process and assessing the recoverability of overdue receivables by comparing management's views of recoverability of overdue receivables to historical patterns of receipts in conjunction with reviewing receipts subsequent to the financial year end for its e_ect in reducing overdue receivables at the financial year end
The Company has trade receivables amounting to Rs.34761.76 lakhs as at March 31 2019 as detailed in Notes 15 to the standalone financial statements.
Due to the inherent subjectivity that is involved in making judgments in relation to credit risk exposures to determine the recoverability of trade receivables and significant estimates and judgments made by the management for provision for loss allowance under expected credit loss model. Based on above the matter has been considered to be a key audit matter. Checked on sample basis balance confirmations from customers to test whether trade receivables as per books are acknowledged by them.
Reviewed at the adequacy of the management judgements and estimates on the sufficiency of provision for doubtful debts through detailed analyses of ageing of receivables and assessing the adequacy of disclosures in respect of credit risk.
Our Conclusion :
Based on the above procedures we did not identify any significant deviation to the assessment made by management in respect recoverability of trade receivables.
Inventories valuation and existence: Our procedures included but was not limited to the following:
(Refer Note 3.7 and 14 to the standalone financial statements) Obtained a detailed understanding and evaluated the design and implementation of controls that the Company has established in relation to inventory valuation and existence.
The Company has Inventories of Rs.32456.71 lakhs as at March 31 2019 as detailed in Notes 14 to the standalone financial statements. Observed the physical verification of inventories count at the financial year end and assessed the adequacy of controls over the existence of inventories.
Inventories valuation and existence has been determined to be a key audit matter as inventories may be held for long periods of time before being sold making it vulnerable to obsolescence. This could result in an overstatement of the value of the inventories if the cost is higher than the net realisable value. Furthermore the assessment and application of inventories provisions are subject to significant management judgment. Obtained assurance over the appropriateness of management's assumptions applied in calculating the gross profit margin and discounts to be deducted from sales price to arrive at cost of goods.
Evaluated management judgment with regards to the application of provisions to the inventories.
Our Conclusion :
Based on the above procedures we did not identify any significant deviation to the assessment made by management in respect Inventories valuation and existence.

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

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we donot 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 workwe have performed we conclude that there is a material misstatement of this otherinformation; we are required to report that fact. We have nothing to report in thisregard.

Responsibility of Management and Those Charged with Governance for the StandaloneFinancial 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 includingother comprehensive income cash flows and changes in equity of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting Standards (Ind AS) specified under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities; selection and application of appropriate accounting policies;making judgments and estimates that are reasonable and prudent; and the designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

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 charged with governance are also responsible foroverseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone 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 withStandards on Auditing will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements.

As part of an audit in accordance with Standards on Auditing we exercise professionaljudgment and maintain professional scepticism 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 control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct 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 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 influenced. 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 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 with those charged with governance we determine 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 describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when 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.

ReportonOtherLegalandRegulatoryRequirements

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 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 Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account;

(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended from time to time;

(e) On the basis of the written representations received from the directors as on March31 2019 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2019 from being appointed as a director in terms of Section 164(2) of theAct;

(f) With respect to the adequacy of the internal financial controls with reference tostandalone financial statement of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure B".

(g) In our opinion the managerial remuneration for the year ended March 31 2019 hasbeen paid/ provided by the Company to its directors in accordance with the provisions ofsection 197 read with Schedule V to the Act; and

(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 Standalone financial statements – Refer Note 40;

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

III. There was no amount which was required to be transferred to the Investor Educationand Protection Fund by the Company.

For Singhi & Co.
Chartered Accountants
Firm Registration No.302049E
(SHRENIK MEHTA)
Place: Kolkata Partner
Dated: 27 May 2019 Membership No. 063769

ANNEXURE ‘A' TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Dollar Industries Limited of evendate)

We report that:

I. In respect of its Fixed Assets:

(a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets which is in the process of furtherupdation.

(b) The Company has a program of verification of property plant and equipment to coverall the items in a phased manner over a period of three years which in our opinion isreasonable having regard to the size of the Company and the nature of its assets. Pursuantto the program certain property plant and equipment were physically verified by themanagement during the year. According to the information and explanations given to us nomaterial discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

II. In respect of inventories physical verification has been conducted at reasonableintervals during the year by the management and in our opinion the frequency ofverification is reasonable. According to the information and explanation given to us nomaterial discrepancies were noticed on physical verification of inventories as compared tothe book records. Inventories lying with outside parties have been confirmed by them atthe year end.

III. The Company has not granted any loan to parties covered in the register maintainedunder section 189 of the Companies Act 2013. Accordingly paragraph 3(iii) of the Orderis not applicable.

IV. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made. V. According to information and explanations given tous the Company has not accepted any deposits from public during the year. Accordinglyparagraph 3(v) of the Order is not applicable.

VI. To the best of our knowledge and according to information and explanations given tous the Government has not specified maintenance of the cost records under Section 148(1)of the Companies Act 2013 in regard to the activities of the company. VII. According tothe information and explanations given to us and on the basis of our examination of therecords of the Company: a. The Company is regular in depositing undisputed statutory duesincluding provident fund employee's state insurance income tax sales tax service taxduty of customs value added tax cess Goods and Service tax and other statutory dueswith the appropriate authorities. According to the information and explanations given tous no undisputed amounts payable in respect of provident fund employees' state insuranceincome tax sales tax service tax duty of customs value added tax Goods and Servicetax cess and other material statutory dues were in arrears as at March 31 2019 for aperiod of more than six months from the date they became payable. b. According to theinformation and explanations given to us the details of disputed dues of sales taxincome tax customs duty Goods & Service Tax service tax and Cess as at 31stMarch 2019 are as follows:

Name of the Statute Nature of Dues Amount ( H in lakhs) Period to which the Amount relates Assessment Year Forum where dispute is pending
Income Tax Act 1961 Tax and Interest 1.49 2009-10 DCIT
Income Tax Act 1961 Tax and Interest 4.54 2010-11 CIT(A)
Income Tax Act 1961 Tax and Interest 78.02 2012-13 CIT(A)
Income Tax Act 1961 Tax and Interest 4.05 2014-15 CIT(A)
Income Tax Act 1961 Tax and Interest 23.50 2015-16 CPC
Central Excise Act 1944 Tax and Interest 3.06 1st April 2003 to July 2004 CESTAT

VIII. Based on our audit procedures and according to information and explanations givento us we are of the opinion that the Company has not defaulted in repayment of dues tofinancial institutions and banks. There were no debentures outstanding at any time duringthe year.

IX. In our opinion and according to the information and explanations given to us thecompany did not raise any money by way of initial public offer or further public offer(including debt instruments) however term loans raised during the year have been utilisedfor the purposes for which they were raised.

X. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe year.

XI. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

XII. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

XIII. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the Standalone financial statements as required by theapplicable Indian Accounting Standards.

XIV. According to the information and explanations given to us the Company has notmade any preferential allotment during the year and hence the provisions of section 42 ofthe Companies Act 2013 is not applicable.

XV. According to the information and explanations given to us and as represented to usby the management and based on our examination of the records of the Company the Companyhas not entered into non-cash transactions with directors or persons connected with him.Accordingly paragraph 3(xv) of the Order is not applicable.

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

For Singhi & Co.
Chartered Accountants
Firm Registration No.302049E
(SHRENIK MEHTA)
Place: Kolkata Partner
Dated: 27 May 2019 Membership No. 063769

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2 (f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Dollar Industries Limited of evendate)

Report on the Internal Financial Controls with reference to financial statement underClause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

1. We have audited the internal financial controls over financial reporting of DollarIndustries Limited ("the Company") as of March 31 2019 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

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 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 (‘ICAI'). Theseresponsibilities include 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 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 financialinformation as required under the Companies Act 2013.

AUDITOR'S RESPONSIBILITY

3. 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 ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the 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 judgment including the assessment of the risks ofmaterial misstatement of the financial statements 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 systemover financial reporting.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

6. A company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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

7. 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

8. InouropiniontheCompanyhasinallmaterialrespects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at March 31 2019 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 Singhi & Co.
Chartered Accountants
Firm Registration No.302049E
(SHRENIK MEHTA)
Place: Kolkata Partner
Dated: 27 May 2019 Membership No. 063769