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Duncan Engineering Ltd.

BSE: 504908 Sector: Auto
NSE: N.A. ISIN Code: INE340F01011
BSE 00:00 | 17 Jan 81.00 -0.45
(-0.55%)
OPEN

77.40

HIGH

85.00

LOW

77.40

NSE 05:30 | 01 Jan Duncan Engineering Ltd
OPEN 77.40
PREVIOUS CLOSE 81.45
VOLUME 499
52-Week high 108.50
52-Week low 60.20
P/E 18.79
Mkt Cap.(Rs cr) 30
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 77.40
CLOSE 81.45
VOLUME 499
52-Week high 108.50
52-Week low 60.20
P/E 18.79
Mkt Cap.(Rs cr) 30
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Duncan Engineering Ltd. (DUNCANENGG) - Auditors Report

Company auditors report

Independent Auditor's Report

TO THE MEMBERS OF DUNCAN ENGINEERING LIMITED (Formerly known as Schrader DuncanLimited)

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 (Formerly known as Schrader Duncan Limited) (‘the Company')which comprise the Balance Sheet as at 31st March 2018 the Statement of Profitand Loss (including Other Comprehensive Income) the Statement of Cash Flow and theStatement of Changes in Equity for the year then ended and a summary of the significantaccounting policies and other explanatory information.

Management's Responsibility for the Ind AS Financial Statements

2. The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 (‘the Act') with respect to the preparation ofthese standalone Ind AS Financial Statements that give a true and fair view of thefinancial position financial performance (including Other Comprehensive Income) and cashflows and change in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards specified in theCompanies (Indian Accounting Standards) Rule 2015 (as amended) under Section 133 of theAct. 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 judgements 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 standalone IndAS Financial Statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

3. Our responsibility is to express an opinion on these standalone Ind AS FinancialStatements based on our audit. We have taken into account the provisions of the Act andRule made thereunder including the accounting and auditing standards and matters which arerequired to be included in the audit report under the provisions of the Act and the Rulesmade thereunder. We conducted our audit in accordance with the Standards on Auditingspecified under Section 143(10) of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the Ind AS Financial Statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the standalone Ind AS Financial Statements. The procedures selecteddepend on the auditors' judgment including the assessment of the risks of materialmisstatement of the Ind AS Financial Statements whether due to fraud or error. In makingthose risk assessments the auditor considers internal financial control relevant to theCompany's preparation of the Ind AS Financial Statements that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the Ind AS Financial Statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS Financial Statements.

Opinion

6. In our opinion and to the best of our information and according to the explanationgiven to us the aforesaid Standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at 31st March 2018 and its profit (including other ComprehensiveIncome) its cash flows and the Changes in equity for the year ended on that date.

Report on Other Legal and Regulatory Requirements

7. 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 in the paragraph3 and 4 of the Order.

8. 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 the statement of change in Equity 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;

e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 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 over financialreporting of the company and 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 Standalone Ind AS financial statements as stated in Note 36 to theStandalone Ind AS Financial Statements.

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

iii. There has been no delay in transferring amounts to the Investor Education andProtection Fund by the Company.

iv. The disclosure requirements relating to holdings as well as dealings in specifiedbank notes were applicable for the period from 8th November 2016 to 30thDecember 2016 which are not relevant to these financial statements. Hence reportingunder this clause is not applicable.

For Singhi & Co.
Chartered Accountants
Firm Registration No: 302049E
Nikhil Singhi
Place: Pune Partner
Date: 25th May2018 Membership No. 061567

ANNEXURE - A TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 7 with the heading ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

We report that:

i. In respect of its fixed assets:

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

b) As explained to us fixed assets of the Company have been physically verified duringthe year by the management As informed no material discrepancies have been noticed onsuch physical verification. In our opinion the frequency of physical verification isreasonable having regard 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 immovable properties areheld in the name of the Company.

ii. As explained to us physical verification of inventories has been conducted by themanagement at reasonable intervals during the year. 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. As informed to us the Company has not granted any loan secured or unsecured toCompanies firm or other parties covered in the register maintained under Section 189 ofthe Companies Act.

iv. In our opinion and according to the information and explanations given to us theCompany has not granted any loan provided guarantees or security to the parties coveredunder section 185 of the Act. The Company has not granted loan provided guarantee andmade investment under section 186 of the Act. Accordingly paragraph 3(iv) of the Order isnot applicable.

v. According to the information and explanations 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 the Company in respectof products where pursuant to rules made by the Central Government of India themaintenance of cost records has been prescribed under Sub section (1) of Section 148 ofthe Act and are of the opinion that prima facie the prescribed accounts and records havebeen made and maintained. However we have not made a detailed examination of such recordswith a view to 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 the dues in respect of undisputedstatutory dues including Provident Fund Employees' State Insurance Income tax Salestax Service Tax Goods and Service Tax Custom Duty cess and other statutory dues asapplicable to the appropriate 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 Cess and other material statutorydues is outstanding as at 31st March 2018 for a period of more than six months from thedate they became payable.

c) There are no dues of Income tax sales tax Wealth tax Service tax Customs dutyExcise duty and Cess which have not been deposited with the appropriate authorities onaccount of any dispute except as mentioned below:

Name of the statue Nature of dues Amount (Rs.) Period to which the amount relates Forum where dispute is pending
Central Excise Act Excise Duty 713907 2005-06 High Court Mumbai
1944
Central Excise Act 1944 Excise Duty 2739813 2009-10 The Additional Commissioner of Central Excise Mumbai III
Central Excise Act 1944 Excise Duty 110413 2012-13 Deputy 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. The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year. According to the informationand explanations given to us by the management term loans were applied for the purposefor which the loans were obtained.

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 give 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 Ind AS Financial Statements as required by theapplicable 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.

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 non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe 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
Nikhil Singhi
Place: Pune Partner
Date: 25th May2018 Membership No. 061567

ANNEXURE - B TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 8 (Rs.) with the heading ‘Report on Other Legal andRegulatory Requirements' section of our report of even date)

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

1. We have audited the internal financial controls over financial reporting of DuncanEngineering Limited (Formerly known as Schrader Duncan Limited) (‘the Company') as of31st March 2018 in conjunction with our audit of the Ind AS FinancialStatements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

2. The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control 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 Act.

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 deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 judgement 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. Company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorisations 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. In our opinion 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 at March 31 2018 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components 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 Singhi & Co.
Chartered Accountants
Firm Registration No: 302049E
Nikhil Singhi
Place: Pune Partner
Date: 25th May2018 Membership No. 061567