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Dollar Industries Ltd.

BSE: 541403 Sector: Industrials
NSE: DOLLAR ISIN Code: INE325C01035
BSE 00:00 | 17 May 249.05 5.30
(2.17%)
OPEN

246.65

HIGH

251.00

LOW

242.95

NSE 00:00 | 17 May 249.85 6.60
(2.71%)
OPEN

243.00

HIGH

251.00

LOW

242.95

OPEN 246.65
PREVIOUS CLOSE 243.75
VOLUME 3556
52-Week high 256.00
52-Week low 235.00
P/E 17.55
Mkt Cap.(Rs cr) 1,412
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 246.65
CLOSE 243.75
VOLUME 3556
52-Week high 256.00
52-Week low 235.00
P/E 17.55
Mkt Cap.(Rs cr) 1,412
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

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 Standalone Balance sheet as at 31March 2020 the Standalone Statement of Profit and Loss (including Other ComprehensiveIncome) the Standalone Statement of Cash Flow and the Standalone Statement of Changes inEquity for the year then ended and notes to the standalone financial statementsincluding a summary of significant accounting policies and other explanatoryinformation(hereinafter referred to as "the standalone financial statements").

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 31 March 2020 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 standalone financial statements' section of ourreport. We are independent of the Company in accordance with the ‘Code of Ethics'issued by the Institute of Chartered Accountants (ICAI) of India together with the ethicalrequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules there under and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the standalone financial statements

Emphasis of Matter

We invite attention to Note 50 of the standalone financial statements as regards themanagement's evaluation of uncertainties related to COVID-19 a global pandemic and itsconsequential effects on the carrying value of the assets as at 31 March 2020 andoperations of the Company.

Our opinion is not modified in respect of this matter.

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
1. Estimation of rebates discounts and sales returns Our procedures included but was not limited to the following:
(Refer Note 3.10 to the standalone financial statements)
The Company sells its products through various channels like distributors retailers e-commerce etc. and recognises 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. • Tested the inputs used in the estimation of revenue in context of rebates discounts and sales returns to source data;
• Assessed the underlying assumptions used for determination of rebates discounts and sales returns;
With regard to the determination of revenue the management is required to make significant estimates in respect of following • Ensured the completeness of liabilities recognised by evaluating the parameters for sample schemes;
• the rebates/ discounts linked to sales which will be given to the customers pursuant to schemes offered by the Company; • Performed look-back analysis for past trends by comparing recent actuals with the estimates of earlier periods and assessed subsequent events;
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 • 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.
• compensation (discounts) offered by the customers to the ultimate consumers at the behest of the Company.
Our Conclusion :
The matter has been determined to be a key audit matter in view of the involvement of significant estimates by the management. 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.
2. Recoverability of trade receivables Our procedures included but was not limited to the following:
(Refer Note 3.4.a and 16 to the Standalone financial statements)
The Company has trade receivables amounting to H 36009.26 lacs (net of expected credit losses of Rs. 229.67 lacs) as at 31 March 2020 as detailed in Notes 16 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 effect in reducing overdue receivables at the financial year end
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.
3. Inventories valuation and existence: Our procedures included but was not limited to the following:
(Refer Note 3.7 and 15 to the standalone financial statements)
The Company has Inventories of H 30496.54 lacs as at 31 March 2020 as detailed in Notes 15 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.
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. • Observed the physical verification of inventories count at the financial year end and assessed the adequacy of controls over the existence of inventories.
• 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 Standalone 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 standalone financial statements and our auditor's report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether such other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material misstatementof this other information; we are required to report that fact. We have nothing to reportin this regard.

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 standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statements management and the Board of Directorsare responsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so. Those charged with governanceare also responsible for overseeing 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 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 Standards 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 standalone financial statements. As part of an auditin accordance with Standards on Auditing we exercise professional judgment and maintainprofessional scepticism 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 Company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management and the Board ofDirectors.

• 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 standalone financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in

(i) planning the scope of our audit work and in evaluating the results of our work; and

(ii) to evaluate the effect of any identified misstatements in the standalone financialstatements.

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.

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 subsection (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 based on our audit 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 Standalone Balance Sheet the Standalone Statement of Profit and Loss(including Other Comprehensive Income) the Standalone Statement Cash Flow and StandaloneStatement of Changes in Equity dealt with by this Report are in agreement with the booksof account;

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

(e) On the basis of the written representations received from the directors as on 31March 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2020 from being appointed as a director in terms of Section164(2) of the Act;

(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" of this report.

(g) In our opinion the managerial remuneration for the year ended 31 March 2020 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 39;

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.

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 to us the Company has not acceptedany deposits from public during the year. Accordingly paragraph 3(v) of the Order is notapplicable. Vi. To the best of our knowledge and according to information and explanationsgiven to us the Government has not specified maintenance of the cost records underSection 148(1) of the Companies Act 2013 in regard to the activities of the Company.

VI. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company:

a. The Company is regular in depositing undisputed statutory dues including providentfund employee's state insurance income tax sales tax service tax duty of customsvalue added tax cess Goods and Service tax and other statutory dues with the appropriateauthorities. According to the information and explanations given to us no undisputedamounts payable in respect of provident fund employees' state insurance income tax salestax service tax duty of customs value added tax Goods and Service tax cess and othermaterial statutory dues were in arrears as at 31 March 2020 for a period of more than sixmonths from the date they became payable.

b. According to the information and explanations given to us the details of disputeddues of sales tax income tax customs duty Goods & Service Tax service tax andCess as at 31 March 2020 are as follows:

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

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.

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 with reference to financialstatements of Dollar Industries Limited ("the Company") as of 31 March 2020 inconjunction with our audit of the standalone financial statements of the Company for theyear 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 financial statementscriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls with referenceto financial statements issued by the Institute of Chartered Accountants of India(‘ICAI'). These responsibilities include the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding 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 Companies Act 2013.

Auditor's Responsibility

3. Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note on Audit of Internal Financial Controls withreference to financial statements (the "Guidance Note") and the Standards onAuditing issued by ICAI and prescribed under section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal financial controls both applicable to anaudit of Internal Financial Controls with reference to financial statements and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlswith reference to financial statements was established and maintained and if such controlsoperated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls with reference to financial statements and theiroperating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of internal financial controlswith reference to 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'sjudgment including the assessment of the risks of material misstatement of the standalonefinancial 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 withreference to financial statements

Meaning of Internal Financial Controls with reference to financial statements

6. A company's internal financial control with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of standalone financial statements for external purposes inaccordance with generally accepted accounting principles. A Company's internal financialcontrol with reference to financial statements includes those policies and procedures that

(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) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of standalone financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the Company are being madeonly in accordance with authorisations of management and directors of the Company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the Company's assets that could have amaterial effect on the standalone financial statements.

Inherent Limitations of Internal Financial Controls with reference to financialstatements

7. Because of the inherent limitations of internal financial controls with reference tofinancial 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 financial statements to future periods are subject to the risk that theinternal financial control with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

8. In our opinion and to the best of the information and explanation given to us theCompany has in all material respects an adequate internal financial controls system withreference to financial statements and such internal financial controls with reference tofinancial statements were operating effectively as at 31 March 2020 based on theinternal control with reference to financial statements criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.

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