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Donear Industries Ltd.

BSE: 512519 Sector: Industrials
NSE: DONEAR ISIN Code: INE668D01028
BSE 00:00 | 18 Jan 42.30 -0.75
(-1.74%)
OPEN

41.80

HIGH

44.15

LOW

41.80

NSE 00:00 | 18 Jan 42.15 -0.70
(-1.63%)
OPEN

42.00

HIGH

43.80

LOW

41.80

OPEN 41.80
PREVIOUS CLOSE 43.05
VOLUME 42670
52-Week high 76.25
52-Week low 30.00
P/E 15.38
Mkt Cap.(Rs cr) 220
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 41.80
CLOSE 43.05
VOLUME 42670
52-Week high 76.25
52-Week low 30.00
P/E 15.38
Mkt Cap.(Rs cr) 220
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Donear Industries Ltd. (DONEAR) - Auditors Report

Company auditors report

INDEPENDENT AUDITOR’S REPORT

To

The Members of DONEAR INDUSTRIES LIMITED

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

We have audited the accompanying Ind AS financial statements of DONEAR INDUSTRIESLIMITED ("the Company") which comprise the Balance Sheet as at March 312018 and the Statement of Profit and Loss (including other comprehensive income) and theCash Flow Statement and the Statement of Changes in Equity for the year then ended and asummary of significant accounting policies and other explanatory information (hereinafterreferred to as "Ind AS financial statements’’).

Management’s Responsibility for the Ind AS Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section134(5) of Companies Act 2013 ("the Act") with respect to the preparation andpresentation of these Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) specifiedunder Section 133 of the Act read with relevant rules issued thereunder.

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

Ind AS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made thereunder.

We conducted our audit of the Ind AS financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act and other applicableauthoritative pronouncements issued by the institute of Chartered Accountants of india.Those Standards and pronouncements require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the Ind ASfinancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe Ind AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to theCompany’s preparation of the Ind AS financial statements that give a true and fairview in order to design audit procedures that are appropriate in the circumstances.

An audit also includes evaluating the appropriateness of the accounting policies usedand the reasonableness of the accounting estimates made by the Company’s Directorsas well as evaluating the overall presentation of the Ind AS financial statements. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the Ind AS of the state ofaffairs (financial position) as at March 31 2018 and its total comprehensive income(comprising of profit and other comprehensive income) its cash flows and the changes inequity for the year ended on that date.

Other Matter

The Comparative financial information of the Company for the year ended 31stMarch 2017 and the transition date opening balance sheet as at 1st April 2016 includedin these Ind AS financial statements are based on the previously issued financialstatements for the year ended 31 st March 2017 and 31st March 2016 preparedin accordance with the Companies (Accounting Standard) Rules 2006 audited by thepredecessor auditor whose report for the year ended 31st March 2016 and 31stMarch 2017 dated 30th May 2017 and dated 30th May 2016respectively expressed an unmodified opinion on those financial statements as adjustedfor the differences in the accounting principles adopted by the Company on transition tothe ind AS have been audited by us.

Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) order 2016 ("theorder") issued by the Central Government of india in terms of sub-section

(11) of section 143 of the Act we give in the Annexure A a statement on the mattersspecified in paragraphs 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 purpose of our audit of the aforesaidInd AS financial statements.

b) In our opinion proper books of account as required by law relating to preparationof the aforesaid Ind AS financial statements have been kept by the Company so far as itappears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss (including other comprehensiveincome) the Cash Flow Statement and the Statement of Changes in equity dealt with by thisreport are in agreement with the books of account maintained for the purpose ofpreparation of the Ind AS financial statements.

d) In our opinion the aforesaid Ind AS financial statements comply with the AccountingStandards specified under Section 133 of Companies Act 2013 read with rule 7 of theCompanies (Accounts) Rules 2014.

e) on the basis of the written representations received from the directors as on March31 2018 and taken on record by the Board of Directors we report that none of thedirectors is disqualified as on March 31 2018 from being appointed as a director in termsof Section 164(2) of the Companies Act 2013.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in ‘Annexure B’ and;

g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its Ind AS financial statements - Refer Note 30 to the Ind AS financialstatements;

ii. The Company did not have any material foreseeable losses on long term contractsincluding derivatives contracts.

iii. There were no amounts which were required to be transferred to the investoreducation and Protection Fund by the Company during the year ended March 31 2018.

iv. The reporting on disclosures relating to Specified Bank Notes is not applicable tothe Company for the year ended March 31 2018.

For KANU DOSHI ASSOCIATES LLP

Chartered Accountants

FRN: 104746W/W100096

Arati Parmar

Partner

Membership no. 102888

Place: Mumbai

Date: May 30 2018

ANNEXURE A TO THE INDEPENDENT AUDITOR’S REPORT

Referred to in paragraph 1 of ‘Report on other Legal and RegulatoryRequirements’ in our Report of even date on the accounts of DONEAR INDUSTRIESLIMITED for the year ended 31st March 2018.

On the basis of the records produced to us for our verification / perusal such checksas we considered appropriate and in terms of information and explanation given to us onour enquiries we state that:

(i) (a) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The fixed assets of the Company are physically verified by the Management accordingto a phased programme designed to cover all the items over a period of three years whichin our opinion is reasonable having regard to the size of the Company and the nature ofits assets. Pursuant to the programme a portion of the fixed assets has been physicallyverified by the Management during the year and discrepancies noticed between the bookrecords and the physical inventories were not material and have been properly dealt within the accounts.

(c) According to information and explanations gives 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) During the year the inventories have been physically verified by the management.In our opinion the frequency of verification is reasonable. The discrepancies noticed onphysical verification of inventories as compared to the book records were not material andhave been properly dealt with in the books of account.

(iii) The Company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained underSection 189 of the Companies Act 2013 during the year. Accordingly clause 3 (iii) of theorder is not applicable to the Company.

(iv) The Company has not granted any loans has not made investments and has notprovided any guarantees and security to directors or to any other parties during the year.Accordingly clause 3 (iv) of the order is not applicable to the Company.

(v) The company has not accepted any any deposits from the public during the yearcovered by the audit. Accordingly clause 3 (v) of the order is not applicable to theCompany.

(vi) The Central Government has prescribed maintenance of cost records for the companyunder sub section (1) of section 148 of the Companies Act 2013 and such accounts havebeen made and maintained by the company. However no detailed examinations of such recordsand accounts have been carried out by us.

(vii) (a) According to the records of the Company the Company is regular in depositingundisputed statutory dues including Provident Fund employees’ State insuranceincome Tax Sales Tax Service Tax excise Duty Customs Duty Value Added Tax CessGoods and Services Tax (GST) w.e.f. July 01 2017 and other statutory dues applicable toit with the appropriate authorities. According to the information and explanations givento us no undisputed amounts payable were outstanding as at the last day of the financialyear for a period of more than six months from the date they became payable.

(b) According to the records of the Company there are no dues of income Tax SalesTax Value Added Tax Service Tax and Customs Duty which have not been deposited onaccount of any dispute.

The disputed amounts that have not been deposited in respect of excise Duty are asunder:

Name of Statute Nature of Dues Financial Year Amount (Rs.) Forum where dispute is pending
Central excise Act 1944 Dues of excise Duty 2008-09 4.17 lakhs Commissioner Central excise Customs & Service Tax Surat (Appeal)

(viii) According to the records of the Company examined by us and the information andexplanation given to us the Company has not defaulted in repayment of dues to banksduring the year. The Company has not taken any loan or borrowing from governmentfinancial institutions and has not issued debentures during the year.

(ix) on the basis of our examination of the documents and records and according to theinformation and explanations given to us we are of the opinion that term loans have beenapplied for the purposes for which they were obtained. The company has not raised moneysby way of initial Public offer or further public offer (including debt instruments) duringthe year.

(x) Based upon the audit procedures performed and information and explanations given bythe management we report that no fraud by the Company or no fraud on the Company by itsofficers or employees has been noticed or reported during the year.

(xi) in our opinion and according to the information and explanations given to us themanagerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of Sec 197 read with Schedule V to the Companies Act2013.

(xii) in our opinion and according to the information and explanations given to us thenature of activities of the Company does not attract any special statute applicable tonidhi Company. Accordingly clause 3 (xii) of the order is not applicable to the Company.

(xiii) According to the information and explanation given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Sec 177 and 188 of Companies Act 2013 where applicable and details ofsuch transactions have been disclosed in the financial statements as required by theapplicable accounting standards.

(xiv) in our opinion and according to the information and explanations given to us andbased on our examination of the records of the Company the company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year. Accordingly clause 3 (xiv) of the order is not applicable tothe Company.

(xv) in our opinion and according to the information and explanations given to us andbased on our examination of the records of the Company the company has not entered intoany non-cash transactions with directors or persons connected with him. Accordinglyclause 3 (xv) of the order is not applicable to the Company.

(xvi) The company is not required to be registered under Sec 45-iA of the Reserve Bankof india Act 1934. Accordingly clause 3 (xvi) of the order is not applicable to theCompany.

For KANU DOSHI ASSOCIATES LLP

Chartered Accountants

FRn: 104746W/W100096

Arati Parmar

Partner

Membership no. 102888

Place: Mumbai

Date: May 30 2018

ANNEXURE B TO THE INDEPENDENT AUDITORS’ REPORT

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

We have audited the internal financial controls over financial reporting of DONEARINDUSTRIES LIMITED ("the Company") as of March 31 2018 in conjunction with ouraudit of the Ind AS financial statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s Board of Directors are responsible for establishing and maintaininginternal financialcontrols based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note

Audit of internal Financial Controls over Financial Reporting issued by the instituteof Chartered Accountants of india (‘iCAi’). These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the and efficient conduct of its business includingadherence to Company’s policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies Act 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance note on Audit of internal Financial Controls over Financial Reporting(the "Guidance note") and the Standards on Auditing issued by 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 ICAI. Those Standards and the Guidancenote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively in all material respects. Our audit involves performing procedures to obtainaudit evidence about the adequacy of the internal financial controls system over financialreporting and their operating effectiveness. Our audit of internal financial controls overfinancial reporting included obtaining an understanding of internal financial controlsover financial reporting assessing the risk that a material weakness exists and testingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor’s judgment including the assessment of the risks of materialmisstatement of the Ind AS financial statements whether due to fraud or error. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion on the Company’s internal financial controls system overfinancial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the financial reporting and the preparation offinancial statements for external purposes in accordance with generally acceptedaccounting principles. A Company's internal financial control over financial in reasonabledetail accurately and fairly reflect the transactions and dispositions of the assets ofthe Company; (2) provide reasonable assurance that transactions are recorded as necessaryto permit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the Company are being madeonly in accordance with authorizations of management and directors of the

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

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols over financial reporting to future periods are subject to the risk that theinternal financial control over financial reporting may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.

Opinion in our opinion to the best of our information and according to theexplanations given to us the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as reporting criteria established bythe Company considering the essential components atMarch312018 based on the internalcontrol over financial of internal control stated in the Guidance note on Audit ofinternal Financial Controls over Financial Reporting issued by the institute of CharteredAccountants of india.

For KANU DOSHI ASSOCIATES LLP
Chartered Accountants
FRn: 104746W/W100096
Arati Parmar
Partner
Membership no. 102888
Place: Mumbai
Date: May 30 2018