TO THE MEMBERS OF DUNCAN ENGINEERING LIMITED
Report on the Standalone Indian Accounting Standard ( Ind AS) Financial Statements
1. We have audited the accompanying Standalone Ind AS financial statements of DUNCANENGINEERING LIMITED ("the Company") which comprise the Balance Sheet as atMarch 312019 the Statement of Profit and Loss (including Other Comprehensive Income)the Cash Flow Statement and the Statement of Changes in Equity for the year then endedand notes to the financial statements including a summary of significant accountingpolicies and other explanatory information.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Ind AS financial statements give the informationrequired by the Companies Act 2013 ("the Act") in the manner so required andgive a true and fair view in conformity with the Indian Accounting Standards prescribedunder section 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015 as amended ("Ind AS") and other accounting principles generally acceptedin India of the state of affairs of the Company as at March 312019 its profit(including other comprehensive income) its cash flows and the changes in equity for theyear ended on that date.
Basis for Opinion
2. 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 Financial Statementssection of our report. We are independent of the Company in accordance with the "Codeof Ethics" issued by the Institute of Chartered Accountants of India together withthe ethical requirements that are relevant to our audit of the financial statements underthe provisions of the Companies Act 2013 and the Rules thereunder and we have fulfilledour other ethical responsibilities in accordance with these requirements and the Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the financial statements.
Key Audit Matters
3. Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements for the financial year ended March312019. These matters were addressed in the context of our audit of the Standalone Ind ASfinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined that there are no key auditmatters to communicate in our report.
Information Other than the Financial Statements and Auditor's ReportThereon
4. The Company's Board of Directors is responsible for the other information. The otherinformation comprises of the Board's Report including its Annexures and other reportplaced by the management before the members. Our opinion on the Standalone Ind ASfinancial statements does not cover the other information and we do not express any formof assurance conclusion thereon.
In connection with our audit of the Standalone Ind AS financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the Standalone Ind AS financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated. 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.
Responsibilities of Management and Those Charged with Governance for the Ind ASFinancial Statements
5. 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 Ind AS financialstatements that give a true and fair view of the financial position financial performance(including other comprehensive income) changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting 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 of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and 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 Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
In preparing the Standalone Ind AS financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so. The Board of Directors are also responsible foroverseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the Standalone Ind AS Financial Statements
6. Our objectives are to obtain reasonable assurance about whether the Standalone IndAS financial statements as a whole are free from material misstatement whether due tofraud or error and to issue an auditor's report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs 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 Ind AS financial statements.
7. 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 Standalone Ind ASfinancial 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 system in place and the operating effectiveness ofsuch 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 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 Standalone IndAS financial statements including the disclosures and whether the Standalone Ind ASfinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
8. We communicate with those charged with governance regarding among other mattersthe planned 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.
Report on Other Legal and Regulatory Requirements
9. As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of sub-section (11) of section 143 of the Act (hereinafterreferred to as the "Order") we give in "Annexure A" a statement onthe matters specified in paragraphs 3 and 4 of the Order.
10. 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) Statement of Changes in Equity and Statement of Cash Flow dealt with by thisReport are in agreement with the books of account;
d) In our opinion the aforesaid Standalone Ind AS financial statements comply with theIndian Accounting Standards specified under Section 133 of the Act read with Companies(Indian Accounting Standards) Rules 2015 as amended;
e) On the basis of the written representations received from the directors and taken onrecord by the Board of Directors none of the directors is disqualified as on March312019 from being appointed as a director in terms of Section 164 (2) of the Act;
f) With respect to the adequacy of internal financial controls over financial reportingof the company and the operating effectiveness of such controls refer to our separateReport in Annexure B to this report.
g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended in our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe 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) The Company has disclosed the impact of pending litigations on its financialposition in its Standalone Ind AS financial statements - Refer Note No. 31 to theStandalone Ind AS financial statements;
ii) The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses; and
iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company. There has been no delays in transferringamounts to the Investor Education and Protection Fund by the Company
| ||For Singhi & Co. |
| ||Chartered Accountants |
| ||Firm's Registration No.: 302049E |
| ||Sudesh Choraria |
|Place: Noida ||Partner |
|Date : May 06 2019 ||Membership no: 204936 |
ANNEXURE - A TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in paragraph 9 of the Independent Auditors' Report of even date to themembers of DUNCAN ENGINEERING LIMITED on the Standalone Ind AS financial Statements as ofand for the year ended March 312019)
We report that:
i. In respect of its fixed assets:
a) According to information and explanations given to us the Company has maintainedproper records showing full particulars including quantitative details and situation offixed assets.
b) As explained to us fixed assets of the Company have been physically verified duringthe year by the management . As informed to us no material discrepancies have beennoticed on such physical verification. In our opinion the frequency is reasonable havingregard to the size of the Company and the nature of its assets.
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 the immovable properties areheld in the name of the Company.
ii. As explained to us physical verification has been conducted by the management atreasonable intervals during the year in respect of inventory of raw materials work inprogress finished goods and by products. The discrepancies noticed on physicalverification of inventories as compared to book records were not material and have beenproperly dealt with in the books of account.
iii. In our opinion and according to the information and explanations given to us theCompany has not granted any loans secured or unsecured to Companies firms LimitedLiability partnerships or other parties covered in the register maintained under Section189 of the Companies Act. Therefore the provision of clause 3(iii) (iii)(a) (iii)(b)and (iii)(c) of the said Order are not applicable to the company.
iv. As informed to us the company has not granted any loans or made any investment orprovided any guarantees or security to the parties covered under section 185 and 186.Therefore the provision of clause 3(iv) of the said Order are not applicable to thecompany.
v. According to the information and explanation given to us the Company has notaccepted any deposits from the public within the meaning of sections 73 to 76 of the Actand the rules framed thereunder.
vi. We have broadly reviewed the books of accounts maintained by Company in respect ofproduct where pursuant to the rule made by the Central Government of India themaintenance of cost records has been prescribed under section 148 (1) of the Companies Act2013 and are of the opinion that prima facie the prescribed records have been made andmaintained. We have not however made a detailed examination of the records with a viewto determine whether they are accurate or complete.
vii. According to the information and explanations given to us and the records of theCompany examined by us:
a) The Company is generally regular in depositing undisputed statutory dues includingProvident fund Employees' state insurance Income Tax Sales tax Service Tax Goods andService tax Customs Duty Cess and other material statutory dues as applicable to theappropriate authorities
b) According to the records and information and explanations given to us no undisputedamount payable in respect of Provident fund Employees' state insurance Income Tax SalesTax Service Tax Goods and Service tax Customs Duty Excise Duty Cess and othermaterial statutory dues is outstanding as at March 312019 for a period of more than sixmonths from the date they became payable.
c) There are no dues of Income tax Sales tax Service tax Goods and Service taxCustoms duty Excise duty and Cess which have not been deposited with the appropriateauthorities on account of any dispute except as stated below :
|Name of the Statute ||Nature of dues ||Amount (Rs.) ||Period to which the amount relates ||Forum where the dispute is pending |
|Central Excise Act 1944 ||Excise Duty ||713907 ||2005-06 ||High Court Mumbai |
|Central Excise Act 1944 ||Excise Duty ||2739813 ||2009-10 ||The Addl Commissioner of Central Excise Mumbai III |
|Central Excise Act 1944 ||Excise Duty ||110413 ||2012-13 ||Dy. Commissioner of Central Excise Pune |
viii. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not defaulted in repayment ofloans or borrowings to any financial institution bank or Government. The Company hadneither any outstanding debenture at the beginning of the year nor has it issued anydebenture during the year.
ix. According to the information and explanation given to us by the management theCompany did not raise any money by way of initial public offer or further public offer(including debt instruments) during the year. The Company had not availed term loans fromBank. Thus the provisions of clause 3(ix) of the order are not applicable to the Company.
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 course of our audit.
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 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 the provision of clause 3(xii) of the Orderare not applicable to the company.
xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with related parties are incompliance with the provisions of sections 177 and 188 of the Act. The details of suchrelated party transactions have been disclosed in the Ind AS financial statements asrequired under the applicable Indian Accounting Standards
xiv. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly the provisions of the clause 3(xiv) of the Order are not applicableto the company.
xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into any non-cashtransactions with directors or persons connected with him. Accordingly the provisions ofthe clause 3(xv) of the Order are not applicable to the company.
xvi. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.Accordingly the provisions of the clause 3(xvi) of the Order arenot applicable to the company.
| ||For Singhi & Co. |
| ||Chartered Accountants |
| ||Firm's registration number: 302049E |
| || |
| ||Sudesh Choraria |
|Place : Noida ||Partner |
|Dated: May 06 2019 ||Membership Number: 204936 |