Mar 31, 2023
To The Members of DCM Shriram Limited
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of DCM Shriram Limited ("the Company"), which comprise the Balance Sheet as at March 31,2023, and 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 ended, and a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31,2023, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibility for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a 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 most significance 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 financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
Key Audit Matter |
Auditor''s Response |
1. Impact of government policies/ notifications on recognition of subsidy accruals/claims and their recoverability During the year, the Company has recognized accruals/subsidy claims amounting to Rs. 1,775.88 crores (net) and as at March 31, 2023, the Company has receivables of Rs. 310.22 crores relating to such claims which is significant to standalone financial statements. We considered this to be a Key Audit Matter because recognition of accruals/claims and assessment of recoverability of the claims is subject to significant judgement of the management. The area of judgement includes certainty around the satisfaction of conditions specified in the notifications/policies, collections, provisions thereof, likelihood of variation in the estimation of the related computation rates and the final notification, and basis for determination of accruals/claims. |
Principal audit procedures performed: ⢠Our audit approach consisted evaluation of design and implementation of controls, and testing the operating effectiveness of the internal controls over: - recognition of accruals/ claims; - Preparation and validation of the Subsidy schedule; - assessment of the recoverability of the claims. ⢠We evaluated the management''s assessment regarding reasonable certainty for complying with the relevant conditions as specified in the Notifications / policies and collections. ⢠We considered the relevant notifications/policies issued by various authorities to ascertain the appropriateness of the recognition of accruals/claims, adjustments to claims already recognised pursuant to changes in the rates and basis for determination of claims. |
(Refer to the accompanying notes 1.3(g)(ii), 1.4(vi)(b), 19 and 29 forming integral part of the standalone financial statements) |
⢠We tested the ageing analysis and assessed the information used by the management to determine the recoverability of the claims by considering historical trends of collection against claims, the level of expected credit loss charged over time, provisions created and reversal thereof in the standalone financial statements. |
Based on the above procedures performed, the management''s estimates related to recognition of subsidy accruals/claim and their recoverability are considered to be reasonable. |
Information Other than the Financial Statements and Auditor''s Report Thereon
⢠The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the standalone financial statements and our auditor''s report thereon.
⢠Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon
⢠In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements, or our knowledge obtained 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 misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Company''s Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibility for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional
judgment and maintain professional skepticism throughout the audit. We also
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal financial control relevant to the audit in order to design 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 has adequate internal financial controls with reference to standalone financial statements in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone 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''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. 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 financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
The comparative financial information of the Company for the year ended March 31, 2022 prepared in accordance with Ind AS included in these standalone financial statements have been audited by the predecessor auditor. The report of the predecessor auditor on the comparative financial information dated May 05, 2022 expressed an unmodified opinion.
Report on Other Legal and Regulatory Requirements 1. 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 best of 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 the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on March 31,2023 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2023 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls with reference to standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure A". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls with reference to standalone financial statements.
g) With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements of section 197(16) of the Act, as amended,
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
h) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and 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 financial position in its standalone financial statements. Refer Note 28 to the standalone financial statements.
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on derivative contracts. The Company did not have any long-term contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. (a) The Management has represented that, to the best of
it''s knowledge and belief, other than as disclosed in the note 35 to the financial statements no funds have been advanced or loaned or invested (either from
borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(b) The Management has represented, that, to the best of
it''s knowledge and belief, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.
v. The final dividend proposed in the previous year, declared, and paid by the Company during the year is in accordance with section 123 of the Act, as applicable. The interim dividend declared and paid by the Company during the year and until the date of this report is in compliance with section 123 of the Act.
As stated in note 52 to the standalone financial statements, the Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend proposed is in accordance with section 123 of the Act, as applicable.
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company w.e.f. April 1,2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended March 31,2023.
2. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order") issued by the Central Government in terms of Section 143(11) of the Act, we give in "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order.
For Deloitte Haskins & Sells
Chartered Accountants (Firm''s Registration No.015125N)
(Partner)
(Membership No. 094468) UDIN: 23094468BGYINX8467
Place: New Delhi Date: May 02, 2023
Mar 31, 2022
Report on the Audit of the Standalone Financial Statements
Opinion
1. We have audited the accompanying standalone financial statements of DCM Shriram Limited (âthe Companyâ), which comprise the Standalone Balance Sheet as at March 31,2022, and the Statement of Standalone Profit and Loss (including Other Comprehensive Income), the Statement of Standalone Changes in Equity and the Standalone Cash Flow Statement for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information.
2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (âthe Act") in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31,2022, and total comprehensive income (comprising of profit and other comprehensive income), changes in equity and its cash flows for the year then ended.
3. We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the âAuditor''s responsibilities for the audit of the standalone financial statementsâ section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
4. Key audit matters are those matters that, in our professional judgment, were of most significance 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 financial statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key Audit Matter |
How our audit addressed the key audit matter |
4.1 Assessment of impairment of carrying value of investments |
Our audit procedures included the following: |
and loans/advances given to subsidiaries |
⢠We understood the design and tested the operating effectiveness of |
(Refer to the accompanying notes 1.4 (iii), 3.1,3.2, 7.4, 9, and 31 |
controls as established by management in determination of |
forming integral part of the standalone financial statements) |
appropriateness of the carrying value of investments, loans and |
The Company has given loans and advances to subsidiaries |
advances given to subsidiaries. |
aggregating to Rs. 184.28 crores as at March 31, 2022, and has |
⢠We evaluated the Company''s process regarding impairment |
investments amounting to Rs. 163.62 crores in this regard. |
assessment by involving our valuation experts (auditor''s expert) to |
As at the year end, net worth of most of these subsidiaries stand |
assist in assessing the appropriateness of the impairment model |
substantially eroded, which indicates potential impairment of |
including the independent assessment of the underlying |
investment in those subsidiaries along with loans and advances |
assumptions relating to discount rate, economic growth rate, terminal |
given to such subsidiaries. |
value, sensitivity analysis etc. and also evaluated the cash flow |
The Company has recognized impairment of Rs.108.73 crores as at |
forecasts (with underlying economic growth rate) by comparing them |
March 31,2022 (including Rs. Nil during the year) against the above |
to the updated budgets provided by the management. |
investments including loans and advances. |
⢠We checked the mathematical accuracy of the impairment model and |
We considered this a Key Audit Matter given the relative significance |
the appropriate accounting in the standalone financial statements. |
of value of investment and loans and advances to the standalone |
Based on the above procedures performed, management''s impairment |
financial statements and extent of management''s judgements and estimates involved such as future cash flows, discount rate, terminal value and economic growth rates etc. around the impairment assessment done by the management. |
assessment is considered to be reasonable. |
4.2 Impact of government policies/ notifications on recognition |
Our audit procedures included the following: |
of subsidy accruals/claims and their recoverability |
⢠We understood the design and tested the operating effectiveness of |
(Refer to the accompanying notes 1.3 (g)(ii), 1.4(vi)(b), 19 and 29 |
controls as established by management in recognition and |
forming integral part of the standalone financial statements) |
assessment of the recoverability of the claims. |
During the year, the Company has recognized accruals/subsidy |
⢠We evaluated the management''s assessment regarding reasonable |
claims amounting to Rs. 1,121.70 crores (net) and as at March 31, |
certainty for complying with the relevant conditions as specified in the |
2022, the Company has receivables of Rs. 434.88 crores relating to |
Notifications / policies and collections. |
Key Audit Matter |
How our audit addressed the key audit matter |
such claims which is significant to the standalone financial |
⢠We considered the relevant notifications/policies issued by various |
statements. |
authorities to ascertain the appropriateness of the recognition of |
We considered this to be a Key Audit Matter because recognition of |
accruals/claims, adjustments to claims already recognised pursuant |
accruals/claims and assessment of recoverability of the claims is |
to changes in the rates and basis for determination of claims. |
subject to significant judgement of the management. The area of |
⢠We tested the ageing analysis and assessed the information used by |
judgement includes certainty around the satisfaction of conditions |
the management to determine the recoverability of the claims by |
specified in the notifications/policies, collections, provisions |
considering historical trends of collection against claims, the level of |
thereof, likelihood of variation in the estimation of the related |
expected credit loss charged over time, provisions created and |
computation rates and the final notification, and basis for determination of accruals/claims. |
reversal thereof in the standalone financial statements. Based on the above procedures performed, the management''s estimates related to recognition of subsidy accruals/claim and their recoverability are considered to be reasonable. |
4.3 Appropriateness of Carrying amount of deferred tax assets |
Our audit procedures included the following: |
relating to Minimum Alternate Tax (MAT) credit |
⢠We understood the design and tested the operating effectiveness of |
(Refer to the accompanying notes 1.3 (m), 1.4(iv),1.4 (v), 4, 26 and |
Company''s controls relating to taxation and the assessment of |
42 forming integral part of the standalone financial statements) |
carrying amount of deferred tax assets. |
The Company has recognised deferred tax assets on the unutilised |
⢠We reviewed the Company''s accounting policy in respect of |
tax credits, representing Minimum Alternate Tax (MAT) paid on the |
recognizing deferred tax assets on unutilised MAT credits. |
accounting profit in earlier years over and above the normal taxable |
⢠We evaluated whether the tax credit entitlements are legally available |
profit, in accordance with the provisions of Section 115JB of the |
to the Company in respect of the future years, as estimated by the |
Income-tax Act, 1961 and related rules. The carrying amount of MAT |
management while projecting the taxable profits, considering to the |
Credit, included under Deferred Tax Assets (net) is Rs. 185.20 crores |
provisions of Income-tax Act, 1961. |
as at the balance sheet date. |
⢠We assessed the reasonableness of the assumptions underlying |
We considered this as a Key Audit Matter as the assessment of the |
management''s profit projections such as the growth rates in light of |
appropriateness of the carrying amount of deferred tax asset |
the relevant economic and industry indicators. |
relating to MAT involves significant management judgement in |
⢠We also assessed the sensitivity analysis applied by the Company |
assessing the availability of future taxable profits to offset the |
and evaluated if any change in the assumptions will lead to any |
accumulated MAT credits, assessment of assumptions (internal / |
material change in carrying amount. We checked the mathematical |
external factors) underlying the future profit projections to establish |
accuracy of the underlying calculations of the profit projections. We |
reasonable certainty around utilization of the asset. |
also evaluated the adequacy and appropriateness of disclosures made in the standalone financial statements. Based on the above procedures performed, the carrying amount of deferred tax assets, including disclosure relating to MAT credit, are considered to be reasonable. |
5. The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the annual report, but does not include the standalone financial statements and our auditor''s report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the
work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of management and those charged with governance for the standalone financial statements
6. The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act. This responsibility also includes
maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
7. In preparing the standalone financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditor''s responsibilities for the audit of the standalone financial
statements
8. Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
9. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal control relevant to the audit in order to design 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 has adequate internal financial controls with reference to standalone financial statements in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone 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''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
10. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
11. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
12. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on other legal and regulatory requirements
13. As required by the Companies (Auditor''s Report) Order, 2020 (âthe Orderâ), issued by the Central Government of India in terms of subsection (11) of Section 143 of the Act, we give in the Annexure B a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
14. 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 best of 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 the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Statement of Changes in Equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on March 31,2022 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2022 from being appointed as a director in terms of Section 164(2) of the Act.
(f) With respect to the adequacy of the internal financial controls with reference to standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Aâ.
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 (as amended), in our opinion and 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 financial position in its standalone financial statements - Refer Note 28 to the standalone financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year;
iv. (a) The management has represented that, to the best of its
knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(b) The management has represented that, to the best of its knowledge and belief, no funds have been received by the Company from any persons or entities, including foreign entities (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
(c) Based on such audit procedures that we considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (a) and (b) contain any material misstatement.
v. The dividend declared and paid during the year by the Company is in compliance withSection 123 of the Act.
15. The Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
For Price Waterhouse Chartered Accountants LLP
Firm Registration Number: 012754N/N500016 Chartered Accountants Abhishek Rara
Place: Gurugram Partner
Date: May 05, 2022 Membership Number: 077779
UDIN: 22077779AILRHX4177
Mar 31, 2018
Independent Auditor''s Report
TO THE MEMBERS OF DCM Shriram Limited
Report on the Standalone Indian Accounting Standards (Ind AS)
Financial Statements
1. -we have audited the accompanying standalone financial statements of DCM Shriram Limited (the Company ), which comprise the Balance Sheet as at March 31, 2018 , 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 ended and a summary of the significant accounting policies and other explanatory information.
Managements Responsibility for the Standalone Ind AS Financial
Statements
2. The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ('' the Act") with respect to the preparation of these standalone Ind AS financial statements to give a true and fair view of the financial position, financial performance (including other comprehensive income), cash flow-s and changes in equity of the Company in accordance -with the accounting principles generally accepted in India, including the Indian Accounting Standards specified in the Companies (Indian Accounting Standards ) Rules, 2015 ( as amended) under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities, selection and application of appropriate accounting policies, making judgments and estimates that are reasonable and prudent, and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error,
Auditors Responsibility
3. Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
4. -Ve have taken into account the provisions of the Act and the Rules made there under including the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
5. Ve conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view, in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as -ell as evaluating the overall presentation of the standalone Ind AS financial statements.
7. Ve believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
8. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018, and its total co mp re h e n s i ve i n com e (comprising of pro fit an d other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Other Matter
9. The Ind AS financial statements of the Company for the year ended March 31, 2017 were audited by another firm of chartered accountants under the Companies Act, 2013 wh o, vide their report dated May 01, 2017, expressed an unmodified opinion on those financial statements. Our opinion is not qualified in respect of this matter,
Report on Other Legal and Regulatory Requirements
10. As required by the Companies (Auditor s Report ) Order, 2016, issued by the Central Government of India in terms of sub-section (11) section 143 of the Act (''the Order"), and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure B a statement on the matters specified in paragraphs 3 and 4 of the Order,
11. 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 best of 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 the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Cash Flow Statement and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.
(e) On the basis of written representations received from the directors as on March 31, 2018, taken on record by the Board of Directors, none of the other directors is disqualified as on March 31, 2018, from being appointed as a director in terms of Section 164(2) of the Act.
(f) with respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure A.
(g) with respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors ) Rules, 2014, in our o pinion and to the best of our knowledge and belief and according to the information and explanations given to us!
i The Company has disclosed the impact, if any, of pending litigations as at March 31, 2018 on its financial position in its standalone Ind AS financial statements - Refer Note 28,
ii. The Company did not have any long-term contracts including derivative contracts as at March 31, 2018 for which there were any material foreseeable losses,
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended March 31, 2018, and
iv. The reporting on disclosures relating to Specified Bank Notes is not applicable to the Company for the year ended March 31, 2018.
Annexure A to Independent Auditors Report
Referred to in paragraph 11(f) of the Independent Auditors Report of even date to the members of DCM Shriram Limited on the standalone financial statements for the year ended March 31, 2018
Report on the Internal Financial Controls under Clause (i) of Subsection 3 of Section 143 of the Act
1. -we have audited the internal financial controls over financial reporting of DCM S hriram Limited ( the Company ) as of March 31, 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
2. The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Aud it of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditors Responsibility
3. Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. we conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the Guidance Note ) and the Standards on Auditing deemed to be prescribed under section 143(10) of the Act to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and both issued by the ICAI . Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
5. -Ve believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
6. A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company, (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company, and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs 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 financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Al so, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
8. In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on A udit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
Annexure B to Independent Auditors Report
Referred to in paragraph 10 of the Independent Auditors Report of even date to the members of DCM Shriram Limited on the standalone financial statements as of and for the year ended March 31, 2018
i. (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of fixed
(b) The fixed assets are physically verified by the Management according to a phased programme designed to cover all the items over a period of 3years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme, a portion of the fixed assets has been physically verified by the Management during the year and no material discrepancies have been noticed on such verification.
(c) The title deeds of immovable properties, as disclosed in Note 2.1 on fixed assets to the financial statements, are held in the name of the Company and in case where such immovable properties has been transferred pursuant to the scheme of amalgamation under section 391 to 394 of the Companies Act, 1956, the transfer is through the Order of the Hon''ble High Courts. Further, freehold land locatedat Hyderabad (Gross block - Rs. 1.56 crores and Net block - Rs. 1.56 crores) and freehold land located at Uttar Pradesh (Gross block - Rs. 0.63 crores and Net block - Rs. 0.63 crores) are pending for registration in favour of the Company.
ii. The physical verification of inventory, excluding stocks with third parties have been conducted at reasonable intervals by the Management during the year. In respect of inventory lying with third parties, these have substantially been confirmed by them. The discrepancies noticed on physical verification of inventory as compared to book records were not material.
iii. The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Act. Therefore, the provisions of Clause 3(iii), (iii)(a), (iii)(b) and (iii)(c) of the said Order are not applicable to the Company.
iv. In our opinion, and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Companies Act, 2013 in respect of the loans and investments made, and guarantees and security provided by it.
v. In our opinion, and according to the information and explanations given to us, the Company has complied with the provisions of Sections 73, 74, 75and 76 or any other relevant provisions of the Act and the Rules framed there under to the extent notified, with regard to the deposits accepted from the public. According to the information and explanations given to us, no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal on the Company in respect of the aforesaid deposits.
vi. Pursuant to the rules made by the Central Government of India, the Company is required to maintain cost records as specified under Section 148(1) of the Act in respect of its products related to Sugar, Cement, Fertilizer, Chemicals, Poly vinyl chloride (PVC) resin, Un plasticized polyvinyl chloride (UPVC) Doors and windows and electrical energy businesses. we have broadly reviewed the same, and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. we have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.
vii. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the
S |
statute Nature of Dues Forum -here Dispute is Pendin |
g |
Period t Amount |
o which the Relates |
\mount Involved* Rs. in crores) |
Amount paid under protest (Rs. in crores) |
Amount Unpaid (Rs. in crores) |
||||||
Central Excise Act, 1944 |
Excise duty |
High Court |
2005-06, 2007-08, 2008-09, 2011-12, 2012-13 |
2.61 |
0.70 |
1.91 |
|||||||
Customs, Excise and Service Tax Appellate Tribunal |
2008-09, 2011-2012, 2012-13, 2013-14 |
1.25 |
1.25 |
||||||||||
Appellate Authority level |
2006-07, 2007-08, 2008-09, 2009-2010, 2010-11, 2011-12 |
0.50 |
0.09 |
0.41 |
|||||||||
Finance Act, 1994 |
Service Tax |
Customs, Excise Appellate Tribunal |
2007-08, 2008-09, 2009-10, 2010-11, 2011-12, 2012-13 |
31.66 |
31.66 |
||||||||
Appellate Authority level |
2005-06 |
0.05 |
0.05 |
||||||||||
Sales Tax Laws |
Sales Tax |
Gujarat VAT Appellate Tribunal |
2011-12 |
0.17 |
0.05 |
0.12 |
|||||||
Rajasthan State Board |
2011-12 |
0.28 |
0.28 |
- |
|||||||||
Appellate Authority level |
1999-2000, 2000-2001, 2001-02, 2002-03, 2004-05, 2005-06, 2007-08,2011-12, 2012-13, 2013-14 |
1.49 |
0.47 |
1.02 |
|||||||||
Customs Tax Act, 1962 |
Customs duty |
Customs, Excise Appellate Tribunal |
2012-13 |
5.51 |
0.56 |
4.95 |
|||||||
Appellate Authority level |
2012-13 and 2014-15 |
0.38 |
0.02 |
0.36 |
|||||||||
Company is regular in depositing the undisputed statutory dues, including provident fund, employees state insurance, income tax, sales tax, service tax, duty of customs ,duty of excise, value added tax, cess, goods and service tax with effect from July 1, 2017 and other material statutory dues, as applicable, with the appropriate authorities.
(b) According to the information and explanations given to us and the records of the Company examined by us, there are no dues of goods and service tax which have not been deposited on account of any dispute. The particulars of dues of income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, as at March 31, 2018 which have not been deposited on account of a dispute, are as follows!
Also refer Note 36
The following matters have been decided in favour of the Company although the Departments have preferred appeal at higher levels.
Name of Statute |
Nature of Dues |
Dispute is pending |
Period to which the amount relates |
Amount involved (Rs. crores) |
Sales Tax Laws |
Sales Tax |
Supreme Court |
2000-01, 2003-04 |
17.05 |
High Court |
2005-06, 2006-07, 2007-08 |
0.85 |
||
Customs, Excise and Service Tax Appellate Tribunal |
2005-06 |
2.19 |
||
Appellate Authority upto Commissioners level |
2010-11, 2011-12 |
0.23 |
||
Rajasthan Tax Board |
2007-08, 2008-09, 2009-10, 2010-11, 2011-12 |
3.65 |
||
Appellate Authority upto Commissioner''s level |
2007-08 |
0.01 |
||
Income Tax Act |
Income Tax |
High Court |
2001-02 |
1.99 |
viii. According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of loans or borrowings to any financial institution or bank or Government or dues to debenture holders as at the balance sheet date.
ix. The Company has not raised any moneys by way of initial public offer, further public offer (including debt instruments).In our opinion and according to the information and explanations given to us, the moneys raised by way of term loans have been applied for the purposes for which they were obtained.
x. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by the Management.
xi. The Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions
of Section 197 read with Schedule V to the Act.
xii. As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it, the provisions of Clause 3( xii) of the Order are not applicable to the Company.
xiii. The Company has entered into transactions with related parties in compliance with the provisions of Sections 177 and 188 of the Act.
The details of such related party transactions have been disclosed in the financial statements as required under Accounting Standard (AS)
18, Related Party Disclosures specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
xiv. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of Clause 3(xiv) of the Order are not applicable to the Company.
xv. The Company has not entered into any non-cash transactions with its directors or persons connected with him. Accordingly, the provisions of 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 Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.
For Price Waterhouse
Chartered Accountants LLP
(Firm Registration Number! 012754N/N500016)
Chartered Accountants
Harinderjit Singh
Place! New Delhi Partner
Date! April 24, 2018 (Membership Number! 086994)
Mar 31, 2017
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of DCM SHRIRAM LIMITED (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2017, 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 ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgements and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2017, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. 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 best of 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 the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.
e) On the basis of the written representations received from the directors as on March 31,2017 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2017 from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Aâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and 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 financial position in its standalone Ind AS financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company;
iv. The Company has provided requisite disclosures in the standalone Ind AS financial statements as regards its holding and dealings in Specified Bank Notes as defined in the Notification S.O. 3407(E) dated 8th November, 2016 of the Ministry of Finance, during the period from 8th November 2016 to 30th December 2016. Based on audit procedures performed and the representations provided to us by the management we report that the disclosures are in accordance with the books of account maintained by the Company and as produced to us by the Management.
2. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
ANNEXURE B TOTHE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 2 under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of property, plant and equipment.
(b) The Company has a program of verification of property, plant and equipment to cover all the items in a phased manner over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, certain property, plant and equipment were physically verified by the Management during the year. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and the records examined by us and based on the examination of the registered sale deeds provided to us, we report that, the title deeds, comprising the immovable properties of land (freehold) and buildings, are held in the name of the Company and in case where such immovable properties has been transferred pursuant to the scheme of amalgamation under section 391 to 394 of the Companies Act, 1956, the transfer is through the Order of the Honâble High Courts. Further, freehold land located at Hyderabad measuring 5.03 acres amounting to Rs.1.56 crores and freehold lands located at Uttar Pradesh measuring 7.79 hectares amounting to Rs. 0.70 crores are pending for registration in favour of the Company.
(ii) As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals and no material discrepancies were noticed on physical verification.
(iii) According to the information and explanations given to us, the Company has, during the year, granted unsecured loans aggregating to Rs. 84.13 crores to three wholly owned subsidiaries covered in the register maintained under section 189 of the Companies Act, 2013. At the year end, the loans granted to five subsidiaries aggregate to Rs. 183.50 crores (net of provision of Rs.7.01 crores). These loans include interest free loan of Rs. 30.78 crores (including Rs 11.45 crores classified as investment) made to a wholly owned subsidiary, which, as explained to us, have been made for setting up new projects. In respect of these loans:
(a) The terms and conditions of the grant of such loans are, in our opinion, prima facie, not prejudicial to the Companyâs interest after considering the purpose for which loans have been granted as indicated above.
(b) The schedule of repayment of principal and payment of interest has been stipulated and repayments or receipts of principal amounts and interest have been regular as per stipulations.
(c) There is no overdue amount remaining outstanding as at the year-end for more than 90 days.
The reporting under clauses (iii) (b) and (c) above has been done without considering the loan amount of Rs 7.01 crores in respect of one subsidiary and interest aggregating Rs. 24.67 crores in respect of three subsidiaries which has been provided/written-off in the books.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of grant of loans and making investments.
(v) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014, as amended, with regard to the deposits accepted. According to the information and explanations given to us, no order has been passed by the Company Law Board or the National Company Law Tribunal or the Reserve Bank of India or any Court or any other Tribunal in respect of contravention of the above said sections and the relevant rules.
(vi) The maintenance of cost records has been specified by the Central Government under section 148(1) of the Companies Act, 2013 in respect of Sugar, Cement, Fertilizer, Chemicals, PVC Resin, UPVC doors and windows, and electrical energy businesses. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended prescribed by the Central Government under subsection (1) of Section 148 of the Companies Act, 2013, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employeesâ State Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, cess and other material statutory dues applicable to it to the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employeesâ State Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, cess and other material statutory dues in arrears as at March 31,2017 for a period of more than six months from the date they became payable.
(c) Details of dues of Income-tax, Sales Tax/ Value Added Tax, Service Tax, Customs Duty and Excise Duty which have not been deposited as on March 31,2017 on account of disputes are given below:
Name of Statute |
Nature of Dues |
Forum where Dispute is Pending |
Period to which the Amount Relates |
Amount Involved* (Rs. in crores) |
Amount paid under protest (Rs. in crores) |
Amount Unpaid (Rs. in crores) |
Central Excise Law |
Excise Duty |
Appellate Authority upto Commissionerâs level |
2006-07, 2007-08, 2008-09, 2009-10, 2010-11, 2011-12, 2012-13, 2013-14 |
0.48 |
0.05 |
0.43 |
Customs, Excise and Service Tax Appellate Tribunal |
1997-98, 2004-05, 2007-08, 2008-09, 2009-10, 2010-11, 2011-12, 2012-13 2013-14 |
4.31 |
0.41 |
3.90 |
||
Finance Act, 1994 |
Service Tax |
Customs, Excise and Service Tax Appellate Tribunal |
2005-06, 2008-09, 2009-10, 2010-11, 2011-12, 2012-13 |
31.83 |
31.71 |
0.12 |
Income-tax Act, 1961 |
Income-tax |
Appellate Authority upto Commissionerâs level |
2010-11, 2011-12, 2012-13 |
6.44 |
6.44 |
|
Income Tax Appellate Tribunal |
2009-10 |
2.21 |
2.21 |
- |
||
Customs Act, 1962 |
Customs Duty |
Customs, Excise and Service Tax Appellate Tribunal |
2012-13 |
5.38 |
0.54 |
4.84 |
Sales Tax Laws |
Sales Tax |
Appellate Authority upto Commissionerâs level |
1983-84, 2001-02, 2005-06, 2007-08, 2010-11, 2011-12, 2012-13, 2013-14 |
1.60 |
0.34 |
1.26 |
Appellate Tribunal |
1994-95, 2009-10 |
2.39 |
0.95 |
1.44 |
* Amount as per demand orders including interest and penalty wherever indicated in the order.
The following matter has been decided in favour of the Company although the department has preferred appeal at higher levels:
Name of Statute |
Nature of Dues |
Forum where |
Period to which the |
Amount involved |
Dispute is pending |
amount relates |
(Rs. crores) |
||
Sales Tax Laws |
Value Added Tax |
Rajasthan Tax Board |
2008-09, 2009-10, 2010-11, 2011-12 |
3.65 |
Central Excise law |
Excise Duty |
Customs, Excise and Service Tax Appellate Tribunal |
2005-06, 2013-14 |
2.45 |
High Court |
2001-02 |
1.31 |
||
Income-tax Act, 1961 |
Income-tax |
Income Tax Appellate Tribunal |
2009-10, 2010-11 |
2.83 |
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to financial institutions, banks and government and dues to debenture holders.
(ix) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments). In our opinion and according to the information and explanation given to us, money raised by way of term loans have been applied by the Company during the year for the purposes for which they were raised.
(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company by its officers or employees has been noticed or reported during the year.
(xi) In our opinion and according to the information and explanations given to us, the Company has paid/provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us, the Company is in compliance with Section 188 and 177 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the standalone IND AS financial statements etc. as required by the applicable Indian accounting standards.
(xiv) During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of the order is not applicable to the Company
(xv) In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or directors of its holding, subsidiary or joint venture company or persons connected with them and hence provisions of section 192 of the Companies Act, 2013 are not applicable.
(xvi) The Company is not required to be registered under section 45-IAofthe Reserve Bank of India Act, 1934.
For Deloitte Haskins & Sells
Chartered Accountants
(Firmâs Registration No. 015125N)
Vijay Agarwal
Place: New Delhi (Partner)
Date: May 1,2017 (Membership No. 094468)
Mar 31, 2016
We have audited the accompanying standalone financial statements of DCM
SHRIRAM LIMITED ("the Company"), which comprise the Balance Sheet as at
March 31, 2016, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
prescribed under section 133 of the Act, as applicable. This
responsibility also includes maintenance of adequate accounting records
in accordance with the provisions of the Act for safeguarding the
assets of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error. Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder and the Order under section 143 (11) of the Act.
We conducted our audit of the standalone financial statements in
accordance with the Standards on Auditing specified under Section
143(10) of the Act. Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company''s Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at March 31, 2016, and its profit and its cash flows for the year ended
on that date. Report on Other Legal and Regulatory Requirements
1. 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 best of 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 the Company so far as it appears from our examination of those
books.
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d) In our opinion, the aforesaid standalone financial statements comply
with the Accounting Standards prescribed under section 133 of the Act,
as applicable.
e) On the basis of the written representations received from the
directors as on March 31, 2016 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2016
from being appointed as a director in terms of Section 164 (2) of the
Act.
f) With respect to the adequacy of the internal financial controls over
financial reporting of the Company and the operating effectiveness of
such controls, refer to our separate Report in "Annexure A". Our report
expresses an unmodified opinion on the adequacy and operating
effectiveness of the Company''s internal financial controls over
financial reporting.
g) With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and 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
financial position in its financial statements;
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses;
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
2. As required by the Companies (Auditor''s Report) Order, 2016 ("the
Order") issued by the Central Government in terms of Section 143(11) of
the Act, we give in "Annexure B" a statement on the matters specified
in paragraphs 3 and 4 of the Order.
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a program of verification of fixed assets to cover
all the items in a phased manner over a period of three years which, in
our opinion, is reasonable having regard to the size of the Company and
the nature of its assets. Pursuant to the program, certain fixed assets
were physically verified by the Management during the year. According
to the information and explanations given to us, no material
discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and the
records examined by us and based on the examination of the registered
sale deeds and lease agreements provided to us, we report that, the
title deeds, comprising the immovable properties of land (freehold and
leasehold) and buildings, are held in the name of the Company and in
case where such immovable properties has been transferred pursuant to
the scheme of amalgamation under Section 391 to 394 of the Companies
Act, 1956, the transfer is through the order of the Hon''ble High
Courts. Further, lands located at Rajasthan measuring 808.70 Bighas
amounting to Rs 13.03 Crores, land located at Hyderabad measuring 5.03
acres amounting to Rs.1.56 Crores and lands located at Uttar Pradesh
measuring 7.79 hectares amounting to Rs 0.70 Crores, are pending for
registration in favour of the Company.
(ii) As explained to us, the inventories were physically verified
during the year by the Management at reasonable intervals except for
inventory lying with third parties at the end of the year for which
confirmations have been obtained in most of the cases and no material
discrepancies were noticed on physical verification.
(iii) According to the information and explanations given to us, the
Company has, during the year, granted unsecured loans aggregating to
Rs.26.93 Crores to five wholly owned subsidiaries covered in the
register maintained under section 189 of the Companies Act, 2013. At
the year end, the loans granted to six subsidiaries aggregate to
Rs.157.11 Crores (net of provision of Rs.7.01 Crores). These loans
include interest free loan of Rs.30.78 Crores made to a wholly owned
subsidiary, which, as explained to us, have been made for setting up
new projects. In respect of these loans:
(a) The terms and conditions of the grant of such loans are, in our
opinion, prima facie, not prejudicial to the Company''s interest after
considering the purpose for which loans have been granted as indicated
above.
(b) The schedule of repayment of principal and payment of interest has
been stipulated and repayments or receipts of principal amounts and
interest have been regular as per stipulations.
(c) There is no overdue amount remaining outstanding as at the year-end
for more than 90 days.
The reporting under clauses (iii)(b) and (c) above has been done
without considering the loans against which provision have been made in
earlier years.
(iv) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
185 and 186 of the Companies Act, 2013 in respect of grant of loans and
making investments.
(v) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
73 to 76 or any other relevant provisions of the Companies Act, 2013
and the Companies (Acceptance of Deposits) Rules, 2014, as amended,
with regard to the deposits accepted. According to the information and
explanations given to us, no order has been passed by the Company Law
Board or the National Company Law Tribunal or the Reserve Bank of India
or any Court or any other Tribunal in respect of contravention of the
above said sections and the relevant rules.
(vi) The maintenance of cost records has been specified by the Central
Government under section 148(1) of the Companies Act, 2013 in respect
of Sugar, Cement, Fertilizer, Chemicals, PVC Resin, UPVC doors and
windows businesses. We have broadly reviewed the cost records
maintained by the Company pursuant to the Companies (Cost Records and
Audit) Rules, 2014, as amended prescribed by the Central Government
under sub-section (1) of Section 148 of the Companies Act, 2013, and
are of the opinion that, prima facie, the prescribed cost records have
been made and maintained. We have, however, not made a detailed
examination of the cost records with a view to determine whether they
are accurate or complete.
(vii) According to the information and explanations given to us, in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
statutory dues, including Provident Fund, Employees'' State Insurance,
Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value
Added Tax, cess and other material statutory dues applicable to it to
the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident
Fund, Employees'' State Insurance, Income- tax, Sales Tax, Service Tax,
Customs Duty, Excise Duty, Value Added Tax, cess and other material
statutory dues in arrears as at March 31, 201 6 for a period of more
than six months from the date they became payable.
(c) Details of dues of Income-tax, Sales Tax/ Value Added Tax, Service
Tax, Customs Duty and Excise Duty which have not been deposited as on
March 31, 2016 on account of disputes are given below:
Name of Nature of Forum where Dispute Period to which
the Amount Relates
Statute Dues is Pending
Central Excise Excise Duty Appellate Authority 2005-06, 2006-07,
2007-08,
Law upto Commissioner''s 2008-09,2009-10,
2010-11,
level 2011-12,2012-13
Customs, Excise and 1997-98, 2004-05,
2005-06,
Service Tax Appellate 2006-07, 2007-08,
2008-09,
Tribunal 2009-10, 2010-11,
2011-12, 2012-13
Finance Act, Service Tax Customs, Excise and 2005-06, 2007-08,
2008-09,
1994 Service Tax Appellate 2009-10,2010-11,
2011-12,2012-13
Tribunal
Income-tax Income-tax Appellate Authority 2010-11,2011-12
Act, 1961 upto Commissioner''s
level
Income Tax Appellate 2009-10
Tribunal
Customs Act, Customs Duty Customs, Excise and 2012-13
1962 Service Tax Appellate
Tribunal
Sales Tax Sales Tax Appellate Authority 1983-84,2001-02,
2005-06,
Laws upto Commissioner''s 2006-07,2007-08,
2010-11,
level 2011-12
Appellate Tribunal 1994-95, 2009-10
Name of Statute Amount Amount paid Amount
Involved * under protest Unpaid
(Rs.in Crores) (Rs.in Crores) (Rs.in Crores)
Central Excise Law 3728 5705 3.23
5747 1.02 4.45
Finance Act, 1994 31.94 31.71 0.22
Income-tax Act, 1961 5.71 5.71 -
2.21 2.21 -
Customs Act, 1962 5.38 0.54 4.84
Sales Tax 1.89 0.41 1.48
2.39 0.95 1.44
*Amount as per demand orders including interest and penalty wherever
indicated in the order.
The following matter has been decided in favour of the Company although
the department has preferred appeal at higher levels:
Name of
Statute Nature of
Dues Forum where
Dispute is
Pending Period to which
the Amount Relates Amount
Involved
(Rs.in
Crores)
Sales Tax
Laws Value Added
Tax Rajasthan Tax
Board 2008-09,2009-10,
2010-11,2011-12 3.65
High Court 2001-02 1.31
Income-
tax Act,
1961 Income-tax Income Tax
Appellate
Tribunal 2009-10 0.45
(viii) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
financial institutions, banks and government and dues to debenture
holders.
(ix) The Company has not raised moneys by way of initial public offer
or further public offer. Further, during the year, the Company has
raised money by way of debt instruments including commercial papers. In
our opinion and according to the information and explanation given to
us, money raised by way of debt instruments and term loans have been
applied by the Company during the year for the purposes for which they
were raised.
(x) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company by its officers or employees has been noticed or
reported during the year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has paid/provided managerial remuneration in
accordance with the requisite approvals mandated by the provisions of
section 197 read with Schedule V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and hence reporting under
clause (xii) of the CARO 2016 Order is not applicable.
(xiii) In our opinion and according to the information and explanations
given to us the Company is in compliance with Section 1 88 and 1 77 of
the Companies Act, 2013, where applicable, for all transactions with
the related parties and the details of related party transactions have
been disclosed in the financial statements etc. as required by the
applicable accounting standards.
(xiv) During the year the Company has not made any preferential
allotment or private placement of shares or fully or partly convertible
debentures and hence reporting under clause (xiv) of CARO 2016 is not
applicable to the Company.
(xv) In our opinion and according to the information and explanations
given to us, during the year the Company has not entered into any non-
cash transactions with its directors or persons connected with him and
hence provisions of section 192 of the Companies Act, 2013 are not
applicable.
(xvi) The Company is not required to be registered under section 45-IA
of the Reserve Bank of India Act, 1934.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm''s Registration No. 015125N)
Vijay Agarwal
Place : New Delhi Partner
Date : May 10, 2016 (Membership No.094468)
Mar 31, 2016
We have audited the accompanying standalone financial statements of DCM
SHRIRAM LIMITED ("the Company"), which comprise the Balance Sheet as at
March 31, 2016, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
prescribed under section 133 of the Act, as applicable. This
responsibility also includes maintenance of adequate accounting records
in accordance with the provisions of the Act for safeguarding the
assets of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error. Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder and the Order under section 143 (11) of the Act.
We conducted our audit of the standalone financial statements in
accordance with the Standards on Auditing specified under Section
143(10) of the Act. Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company''s Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at March 31, 2016, and its profit and its cash flows for the year ended
on that date. Report on Other Legal and Regulatory Requirements
1. 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 best of 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 the Company so far as it appears from our examination of those
books.
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d) In our opinion, the aforesaid standalone financial statements comply
with the Accounting Standards prescribed under section 133 of the Act,
as applicable.
e) On the basis of the written representations received from the
directors as on March 31, 2016 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2016
from being appointed as a director in terms of Section 164 (2) of the
Act.
f) With respect to the adequacy of the internal financial controls over
financial reporting of the Company and the operating effectiveness of
such controls, refer to our separate Report in "Annexure A". Our report
expresses an unmodified opinion on the adequacy and operating
effectiveness of the Company''s internal financial controls over
financial reporting.
g) With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and 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
financial position in its financial statements;
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses;
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
2. As required by the Companies (Auditor''s Report) Order, 2016 ("the
Order") issued by the Central Government in terms of Section 143(11) of
the Act, we give in "Annexure B" a statement on the matters specified
in paragraphs 3 and 4 of the Order.
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a program of verification of fixed assets to cover
all the items in a phased manner over a period of three years which, in
our opinion, is reasonable having regard to the size of the Company and
the nature of its assets. Pursuant to the program, certain fixed assets
were physically verified by the Management during the year. According
to the information and explanations given to us, no material
discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and the
records examined by us and based on the examination of the registered
sale deeds and lease agreements provided to us, we report that, the
title deeds, comprising the immovable properties of land (freehold and
leasehold) and buildings, are held in the name of the Company and in
case where such immovable properties has been transferred pursuant to
the scheme of amalgamation under Section 391 to 394 of the Companies
Act, 1956, the transfer is through the order of the Hon''ble High
Courts. Further, lands located at Rajasthan measuring 808.70 Bighas
amounting to Rs 13.03 Crores, land located at Hyderabad measuring 5.03
acres amounting to Rs.1.56 Crores and lands located at Uttar Pradesh
measuring 7.79 hectares amounting to Rs 0.70 Crores, are pending for
registration in favour of the Company.
(ii) As explained to us, the inventories were physically verified
during the year by the Management at reasonable intervals except for
inventory lying with third parties at the end of the year for which
confirmations have been obtained in most of the cases and no material
discrepancies were noticed on physical verification.
(iii) According to the information and explanations given to us, the
Company has, during the year, granted unsecured loans aggregating to
Rs.26.93 Crores to five wholly owned subsidiaries covered in the
register maintained under section 189 of the Companies Act, 2013. At
the year end, the loans granted to six subsidiaries aggregate to
Rs.157.11 Crores (net of provision of Rs.7.01 Crores). These loans
include interest free loan of Rs.30.78 Crores made to a wholly owned
subsidiary, which, as explained to us, have been made for setting up
new projects. In respect of these loans:
(a) The terms and conditions of the grant of such loans are, in our
opinion, prima facie, not prejudicial to the Company''s interest after
considering the purpose for which loans have been granted as indicated
above.
(b) The schedule of repayment of principal and payment of interest has
been stipulated and repayments or receipts of principal amounts and
interest have been regular as per stipulations.
(c) There is no overdue amount remaining outstanding as at the year-end
for more than 90 days.
The reporting under clauses (iii)(b) and (c) above has been done
without considering the loans against which provision have been made in
earlier years.
(iv) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
185 and 186 of the Companies Act, 2013 in respect of grant of loans and
making investments.
(v) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
73 to 76 or any other relevant provisions of the Companies Act, 2013
and the Companies (Acceptance of Deposits) Rules, 2014, as amended,
with regard to the deposits accepted. According to the information and
explanations given to us, no order has been passed by the Company Law
Board or the National Company Law Tribunal or the Reserve Bank of India
or any Court or any other Tribunal in respect of contravention of the
above said sections and the relevant rules.
(vi) The maintenance of cost records has been specified by the Central
Government under section 148(1) of the Companies Act, 2013 in respect
of Sugar, Cement, Fertilizer, Chemicals, PVC Resin, UPVC doors and
windows businesses. We have broadly reviewed the cost records
maintained by the Company pursuant to the Companies (Cost Records and
Audit) Rules, 2014, as amended prescribed by the Central Government
under sub-section (1) of Section 148 of the Companies Act, 2013, and
are of the opinion that, prima facie, the prescribed cost records have
been made and maintained. We have, however, not made a detailed
examination of the cost records with a view to determine whether they
are accurate or complete.
(vii) According to the information and explanations given to us, in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
statutory dues, including Provident Fund, Employees'' State Insurance,
Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value
Added Tax, cess and other material statutory dues applicable to it to
the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident
Fund, Employees'' State Insurance, Income- tax, Sales Tax, Service Tax,
Customs Duty, Excise Duty, Value Added Tax, cess and other material
statutory dues in arrears as at March 31, 201 6 for a period of more
than six months from the date they became payable.
(c) Details of dues of Income-tax, Sales Tax/ Value Added Tax, Service
Tax, Customs Duty and Excise Duty which have not been deposited as on
March 31, 2016 on account of disputes are given below:
Name of Nature of Forum where Dispute Period to which
the Amount Relates
Statute Dues is Pending
Central Excise Excise Duty Appellate Authority 2005-06, 2006-07,
2007-08,
Law upto Commissioner''s 2008-09,2009-10,
2010-11,
level 2011-12,2012-13
Customs, Excise and 1997-98, 2004-05,
2005-06,
Service Tax Appellate 2006-07, 2007-08,
2008-09,
Tribunal 2009-10, 2010-11,
2011-12, 2012-13
Finance Act, Service Tax Customs, Excise and 2005-06, 2007-08,
2008-09,
1994 Service Tax Appellate 2009-10,2010-11,
2011-12,2012-13
Tribunal
Income-tax Income-tax Appellate Authority 2010-11,2011-12
Act, 1961 upto Commissioner''s
level
Income Tax Appellate 2009-10
Tribunal
Customs Act, Customs Duty Customs, Excise and 2012-13
1962 Service Tax Appellate
Tribunal
Sales Tax Sales Tax Appellate Authority 1983-84,2001-02,
2005-06,
Laws upto Commissioner''s 2006-07,2007-08,
2010-11,
level 2011-12
Appellate Tribunal 1994-95, 2009-10
Name of Statute Amount Amount paid Amount
Involved * under protest Unpaid
(Rs.in Crores) (Rs.in Crores) (Rs.in Crores)
Central Excise Law 3728 5705 3.23
5747 1.02 4.45
Finance Act, 1994 31.94 31.71 0.22
Income-tax Act, 1961 5.71 5.71 -
2.21 2.21 -
Customs Act, 1962 5.38 0.54 4.84
Sales Tax 1.89 0.41 1.48
2.39 0.95 1.44
*Amount as per demand orders including interest and penalty wherever
indicated in the order.
The following matter has been decided in favour of the Company although
the department has preferred appeal at higher levels:
Name of
Statute Nature of
Dues Forum where
Dispute is
Pending Period to which
the Amount Relates Amount
Involved
(Rs.in
Crores)
Sales Tax
Laws Value Added
Tax Rajasthan Tax
Board 2008-09,2009-10,
2010-11,2011-12 3.65
High Court 2001-02 1.31
Income-
tax Act,
1961 Income-tax Income Tax
Appellate
Tribunal 2009-10 0.45
(viii) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
financial institutions, banks and government and dues to debenture
holders.
(ix) The Company has not raised moneys by way of initial public offer
or further public offer. Further, during the year, the Company has
raised money by way of debt instruments including commercial papers. In
our opinion and according to the information and explanation given to
us, money raised by way of debt instruments and term loans have been
applied by the Company during the year for the purposes for which they
were raised.
(x) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company by its officers or employees has been noticed or
reported during the year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has paid/provided managerial remuneration in
accordance with the requisite approvals mandated by the provisions of
section 197 read with Schedule V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and hence reporting under
clause (xii) of the CARO 2016 Order is not applicable.
(xiii) In our opinion and according to the information and explanations
given to us the Company is in compliance with Section 1 88 and 1 77 of
the Companies Act, 2013, where applicable, for all transactions with
the related parties and the details of related party transactions have
been disclosed in the financial statements etc. as required by the
applicable accounting standards.
(xiv) During the year the Company has not made any preferential
allotment or private placement of shares or fully or partly convertible
debentures and hence reporting under clause (xiv) of CARO 2016 is not
applicable to the Company.
(xv) In our opinion and according to the information and explanations
given to us, during the year the Company has not entered into any non-
cash transactions with its directors or persons connected with him and
hence provisions of section 192 of the Companies Act, 2013 are not
applicable.
(xvi) The Company is not required to be registered under section 45-IA
of the Reserve Bank of India Act, 1934.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm''s Registration No. 015125N)
Vijay Agarwal
Place : New Delhi Partner
Date : May 10, 2016 (Membership No.094468)
Mar 31, 2016
We have audited the accompanying standalone financial statements of DCM
SHRIRAM LIMITED ("the Company"), which comprise the Balance Sheet as at
March 31, 2016, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
prescribed under section 133 of the Act, as applicable. This
responsibility also includes maintenance of adequate accounting records
in accordance with the provisions of the Act for safeguarding the
assets of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error. Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder and the Order under section 143 (11) of the Act.
We conducted our audit of the standalone financial statements in
accordance with the Standards on Auditing specified under Section
143(10) of the Act. Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company''s Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at March 31, 2016, and its profit and its cash flows for the year ended
on that date. Report on Other Legal and Regulatory Requirements
1. 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 best of 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 the Company so far as it appears from our examination of those
books.
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d) In our opinion, the aforesaid standalone financial statements comply
with the Accounting Standards prescribed under section 133 of the Act,
as applicable.
e) On the basis of the written representations received from the
directors as on March 31, 2016 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2016
from being appointed as a director in terms of Section 164 (2) of the
Act.
f) With respect to the adequacy of the internal financial controls over
financial reporting of the Company and the operating effectiveness of
such controls, refer to our separate Report in "Annexure A". Our report
expresses an unmodified opinion on the adequacy and operating
effectiveness of the Company''s internal financial controls over
financial reporting.
g) With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and 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
financial position in its financial statements;
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses;
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
2. As required by the Companies (Auditor''s Report) Order, 2016 ("the
Order") issued by the Central Government in terms of Section 143(11) of
the Act, we give in "Annexure B" a statement on the matters specified
in paragraphs 3 and 4 of the Order.
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a program of verification of fixed assets to cover
all the items in a phased manner over a period of three years which, in
our opinion, is reasonable having regard to the size of the Company and
the nature of its assets. Pursuant to the program, certain fixed assets
were physically verified by the Management during the year. According
to the information and explanations given to us, no material
discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and the
records examined by us and based on the examination of the registered
sale deeds and lease agreements provided to us, we report that, the
title deeds, comprising the immovable properties of land (freehold and
leasehold) and buildings, are held in the name of the Company and in
case where such immovable properties has been transferred pursuant to
the scheme of amalgamation under Section 391 to 394 of the Companies
Act, 1956, the transfer is through the order of the Hon''ble High
Courts. Further, lands located at Rajasthan measuring 808.70 Bighas
amounting to Rs 13.03 Crores, land located at Hyderabad measuring 5.03
acres amounting to Rs.1.56 Crores and lands located at Uttar Pradesh
measuring 7.79 hectares amounting to Rs 0.70 Crores, are pending for
registration in favour of the Company.
(ii) As explained to us, the inventories were physically verified
during the year by the Management at reasonable intervals except for
inventory lying with third parties at the end of the year for which
confirmations have been obtained in most of the cases and no material
discrepancies were noticed on physical verification.
(iii) According to the information and explanations given to us, the
Company has, during the year, granted unsecured loans aggregating to
Rs.26.93 Crores to five wholly owned subsidiaries covered in the
register maintained under section 189 of the Companies Act, 2013. At
the year end, the loans granted to six subsidiaries aggregate to
Rs.157.11 Crores (net of provision of Rs.7.01 Crores). These loans
include interest free loan of Rs.30.78 Crores made to a wholly owned
subsidiary, which, as explained to us, have been made for setting up
new projects. In respect of these loans:
(a) The terms and conditions of the grant of such loans are, in our
opinion, prima facie, not prejudicial to the Company''s interest after
considering the purpose for which loans have been granted as indicated
above.
(b) The schedule of repayment of principal and payment of interest has
been stipulated and repayments or receipts of principal amounts and
interest have been regular as per stipulations.
(c) There is no overdue amount remaining outstanding as at the year-end
for more than 90 days.
The reporting under clauses (iii)(b) and (c) above has been done
without considering the loans against which provision have been made in
earlier years.
(iv) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
185 and 186 of the Companies Act, 2013 in respect of grant of loans and
making investments.
(v) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
73 to 76 or any other relevant provisions of the Companies Act, 2013
and the Companies (Acceptance of Deposits) Rules, 2014, as amended,
with regard to the deposits accepted. According to the information and
explanations given to us, no order has been passed by the Company Law
Board or the National Company Law Tribunal or the Reserve Bank of India
or any Court or any other Tribunal in respect of contravention of the
above said sections and the relevant rules.
(vi) The maintenance of cost records has been specified by the Central
Government under section 148(1) of the Companies Act, 2013 in respect
of Sugar, Cement, Fertilizer, Chemicals, PVC Resin, UPVC doors and
windows businesses. We have broadly reviewed the cost records
maintained by the Company pursuant to the Companies (Cost Records and
Audit) Rules, 2014, as amended prescribed by the Central Government
under sub-section (1) of Section 148 of the Companies Act, 2013, and
are of the opinion that, prima facie, the prescribed cost records have
been made and maintained. We have, however, not made a detailed
examination of the cost records with a view to determine whether they
are accurate or complete.
(vii) According to the information and explanations given to us, in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
statutory dues, including Provident Fund, Employees'' State Insurance,
Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value
Added Tax, cess and other material statutory dues applicable to it to
the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident
Fund, Employees'' State Insurance, Income- tax, Sales Tax, Service Tax,
Customs Duty, Excise Duty, Value Added Tax, cess and other material
statutory dues in arrears as at March 31, 201 6 for a period of more
than six months from the date they became payable.
(c) Details of dues of Income-tax, Sales Tax/ Value Added Tax, Service
Tax, Customs Duty and Excise Duty which have not been deposited as on
March 31, 2016 on account of disputes are given below:
Name of Nature of Forum where Dispute Period to which
the Amount Relates
Statute Dues is Pending
Central Excise Excise Duty Appellate Authority 2005-06, 2006-07,
2007-08,
Law upto Commissioner''s 2008-09,2009-10,
2010-11,
level 2011-12,2012-13
Customs, Excise and 1997-98, 2004-05,
2005-06,
Service Tax Appellate 2006-07, 2007-08,
2008-09,
Tribunal 2009-10, 2010-11,
2011-12, 2012-13
Finance Act, Service Tax Customs, Excise and 2005-06, 2007-08,
2008-09,
1994 Service Tax Appellate 2009-10,2010-11,
2011-12,2012-13
Tribunal
Income-tax Income-tax Appellate Authority 2010-11,2011-12
Act, 1961 upto Commissioner''s
level
Income Tax Appellate 2009-10
Tribunal
Customs Act, Customs Duty Customs, Excise and 2012-13
1962 Service Tax Appellate
Tribunal
Sales Tax Sales Tax Appellate Authority 1983-84,2001-02,
2005-06,
Laws upto Commissioner''s 2006-07,2007-08,
2010-11,
level 2011-12
Appellate Tribunal 1994-95, 2009-10
Name of Statute Amount Amount paid Amount
Involved * under protest Unpaid
(Rs.in Crores) (Rs.in Crores) (Rs.in Crores)
Central Excise Law 3728 5705 3.23
5747 1.02 4.45
Finance Act, 1994 31.94 31.71 0.22
Income-tax Act, 1961 5.71 5.71 -
2.21 2.21 -
Customs Act, 1962 5.38 0.54 4.84
Sales Tax 1.89 0.41 1.48
2.39 0.95 1.44
*Amount as per demand orders including interest and penalty wherever
indicated in the order.
The following matter has been decided in favour of the Company although
the department has preferred appeal at higher levels:
Name of
Statute Nature of
Dues Forum where
Dispute is
Pending Period to which
the Amount Relates Amount
Involved
(Rs.in
Crores)
Sales Tax
Laws Value Added
Tax Rajasthan Tax
Board 2008-09,2009-10,
2010-11,2011-12 3.65
High Court 2001-02 1.31
Income-
tax Act,
1961 Income-tax Income Tax
Appellate
Tribunal 2009-10 0.45
(viii) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
financial institutions, banks and government and dues to debenture
holders.
(ix) The Company has not raised moneys by way of initial public offer
or further public offer. Further, during the year, the Company has
raised money by way of debt instruments including commercial papers. In
our opinion and according to the information and explanation given to
us, money raised by way of debt instruments and term loans have been
applied by the Company during the year for the purposes for which they
were raised.
(x) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company by its officers or employees has been noticed or
reported during the year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has paid/provided managerial remuneration in
accordance with the requisite approvals mandated by the provisions of
section 197 read with Schedule V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and hence reporting under
clause (xii) of the CARO 2016 Order is not applicable.
(xiii) In our opinion and according to the information and explanations
given to us the Company is in compliance with Section 1 88 and 1 77 of
the Companies Act, 2013, where applicable, for all transactions with
the related parties and the details of related party transactions have
been disclosed in the financial statements etc. as required by the
applicable accounting standards.
(xiv) During the year the Company has not made any preferential
allotment or private placement of shares or fully or partly convertible
debentures and hence reporting under clause (xiv) of CARO 2016 is not
applicable to the Company.
(xv) In our opinion and according to the information and explanations
given to us, during the year the Company has not entered into any non-
cash transactions with its directors or persons connected with him and
hence provisions of section 192 of the Companies Act, 2013 are not
applicable.
(xvi) The Company is not required to be registered under section 45-IA
of the Reserve Bank of India Act, 1934.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm''s Registration No. 015125N)
Vijay Agarwal
Place : New Delhi Partner
Date : May 10, 2016 (Membership No.094468)
Mar 31, 2016
We have audited the accompanying standalone financial statements of DCM
SHRIRAM LIMITED ("the Company"), which comprise the Balance Sheet as at
March 31, 2016, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
prescribed under section 133 of the Act, as applicable. This
responsibility also includes maintenance of adequate accounting records
in accordance with the provisions of the Act for safeguarding the
assets of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error. Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder and the Order under section 143 (11) of the Act.
We conducted our audit of the standalone financial statements in
accordance with the Standards on Auditing specified under Section
143(10) of the Act. Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company''s Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at March 31, 2016, and its profit and its cash flows for the year ended
on that date. Report on Other Legal and Regulatory Requirements
1. 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 best of 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 the Company so far as it appears from our examination of those
books.
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d) In our opinion, the aforesaid standalone financial statements comply
with the Accounting Standards prescribed under section 133 of the Act,
as applicable.
e) On the basis of the written representations received from the
directors as on March 31, 2016 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2016
from being appointed as a director in terms of Section 164 (2) of the
Act.
f) With respect to the adequacy of the internal financial controls over
financial reporting of the Company and the operating effectiveness of
such controls, refer to our separate Report in "Annexure A". Our report
expresses an unmodified opinion on the adequacy and operating
effectiveness of the Company''s internal financial controls over
financial reporting.
g) With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and 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
financial position in its financial statements;
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses;
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
2. As required by the Companies (Auditor''s Report) Order, 2016 ("the
Order") issued by the Central Government in terms of Section 143(11) of
the Act, we give in "Annexure B" a statement on the matters specified
in paragraphs 3 and 4 of the Order.
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a program of verification of fixed assets to cover
all the items in a phased manner over a period of three years which, in
our opinion, is reasonable having regard to the size of the Company and
the nature of its assets. Pursuant to the program, certain fixed assets
were physically verified by the Management during the year. According
to the information and explanations given to us, no material
discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and the
records examined by us and based on the examination of the registered
sale deeds and lease agreements provided to us, we report that, the
title deeds, comprising the immovable properties of land (freehold and
leasehold) and buildings, are held in the name of the Company and in
case where such immovable properties has been transferred pursuant to
the scheme of amalgamation under Section 391 to 394 of the Companies
Act, 1956, the transfer is through the order of the Hon''ble High
Courts. Further, lands located at Rajasthan measuring 808.70 Bighas
amounting to Rs 13.03 Crores, land located at Hyderabad measuring 5.03
acres amounting to Rs.1.56 Crores and lands located at Uttar Pradesh
measuring 7.79 hectares amounting to Rs 0.70 Crores, are pending for
registration in favour of the Company.
(ii) As explained to us, the inventories were physically verified
during the year by the Management at reasonable intervals except for
inventory lying with third parties at the end of the year for which
confirmations have been obtained in most of the cases and no material
discrepancies were noticed on physical verification.
(iii) According to the information and explanations given to us, the
Company has, during the year, granted unsecured loans aggregating to
Rs.26.93 Crores to five wholly owned subsidiaries covered in the
register maintained under section 189 of the Companies Act, 2013. At
the year end, the loans granted to six subsidiaries aggregate to
Rs.157.11 Crores (net of provision of Rs.7.01 Crores). These loans
include interest free loan of Rs.30.78 Crores made to a wholly owned
subsidiary, which, as explained to us, have been made for setting up
new projects. In respect of these loans:
(a) The terms and conditions of the grant of such loans are, in our
opinion, prima facie, not prejudicial to the Company''s interest after
considering the purpose for which loans have been granted as indicated
above.
(b) The schedule of repayment of principal and payment of interest has
been stipulated and repayments or receipts of principal amounts and
interest have been regular as per stipulations.
(c) There is no overdue amount remaining outstanding as at the year-end
for more than 90 days.
The reporting under clauses (iii)(b) and (c) above has been done
without considering the loans against which provision have been made in
earlier years.
(iv) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
185 and 186 of the Companies Act, 2013 in respect of grant of loans and
making investments.
(v) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
73 to 76 or any other relevant provisions of the Companies Act, 2013
and the Companies (Acceptance of Deposits) Rules, 2014, as amended,
with regard to the deposits accepted. According to the information and
explanations given to us, no order has been passed by the Company Law
Board or the National Company Law Tribunal or the Reserve Bank of India
or any Court or any other Tribunal in respect of contravention of the
above said sections and the relevant rules.
(vi) The maintenance of cost records has been specified by the Central
Government under section 148(1) of the Companies Act, 2013 in respect
of Sugar, Cement, Fertilizer, Chemicals, PVC Resin, UPVC doors and
windows businesses. We have broadly reviewed the cost records
maintained by the Company pursuant to the Companies (Cost Records and
Audit) Rules, 2014, as amended prescribed by the Central Government
under sub-section (1) of Section 148 of the Companies Act, 2013, and
are of the opinion that, prima facie, the prescribed cost records have
been made and maintained. We have, however, not made a detailed
examination of the cost records with a view to determine whether they
are accurate or complete.
(vii) According to the information and explanations given to us, in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
statutory dues, including Provident Fund, Employees'' State Insurance,
Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value
Added Tax, cess and other material statutory dues applicable to it to
the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident
Fund, Employees'' State Insurance, Income- tax, Sales Tax, Service Tax,
Customs Duty, Excise Duty, Value Added Tax, cess and other material
statutory dues in arrears as at March 31, 201 6 for a period of more
than six months from the date they became payable.
(c) Details of dues of Income-tax, Sales Tax/ Value Added Tax, Service
Tax, Customs Duty and Excise Duty which have not been deposited as on
March 31, 2016 on account of disputes are given below:
Name of Nature of Forum where Dispute Period to which
the Amount Relates
Statute Dues is Pending
Central Excise Excise Duty Appellate Authority 2005-06, 2006-07,
2007-08,
Law upto Commissioner''s 2008-09,2009-10,
2010-11,
level 2011-12,2012-13
Customs, Excise and 1997-98, 2004-05,
2005-06,
Service Tax Appellate 2006-07, 2007-08,
2008-09,
Tribunal 2009-10, 2010-11,
2011-12, 2012-13
Finance Act, Service Tax Customs, Excise and 2005-06, 2007-08,
2008-09,
1994 Service Tax Appellate 2009-10,2010-11,
2011-12,2012-13
Tribunal
Income-tax Income-tax Appellate Authority 2010-11,2011-12
Act, 1961 upto Commissioner''s
level
Income Tax Appellate 2009-10
Tribunal
Customs Act, Customs Duty Customs, Excise and 2012-13
1962 Service Tax Appellate
Tribunal
Sales Tax Sales Tax Appellate Authority 1983-84,2001-02,
2005-06,
Laws upto Commissioner''s 2006-07,2007-08,
2010-11,
level 2011-12
Appellate Tribunal 1994-95, 2009-10
Name of Statute Amount Amount paid Amount
Involved * under protest Unpaid
(Rs.in Crores) (Rs.in Crores) (Rs.in Crores)
Central Excise Law 3728 5705 3.23
5747 1.02 4.45
Finance Act, 1994 31.94 31.71 0.22
Income-tax Act, 1961 5.71 5.71 -
2.21 2.21 -
Customs Act, 1962 5.38 0.54 4.84
Sales Tax 1.89 0.41 1.48
2.39 0.95 1.44
*Amount as per demand orders including interest and penalty wherever
indicated in the order.
The following matter has been decided in favour of the Company although
the department has preferred appeal at higher levels:
Name of
Statute Nature of
Dues Forum where
Dispute is
Pending Period to which
the Amount Relates Amount
Involved
(Rs.in
Crores)
Sales Tax
Laws Value Added
Tax Rajasthan Tax
Board 2008-09,2009-10,
2010-11,2011-12 3.65
High Court 2001-02 1.31
Income-
tax Act,
1961 Income-tax Income Tax
Appellate
Tribunal 2009-10 0.45
(viii) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
financial institutions, banks and government and dues to debenture
holders.
(ix) The Company has not raised moneys by way of initial public offer
or further public offer. Further, during the year, the Company has
raised money by way of debt instruments including commercial papers. In
our opinion and according to the information and explanation given to
us, money raised by way of debt instruments and term loans have been
applied by the Company during the year for the purposes for which they
were raised.
(x) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company by its officers or employees has been noticed or
reported during the year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has paid/provided managerial remuneration in
accordance with the requisite approvals mandated by the provisions of
section 197 read with Schedule V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and hence reporting under
clause (xii) of the CARO 2016 Order is not applicable.
(xiii) In our opinion and according to the information and explanations
given to us the Company is in compliance with Section 1 88 and 1 77 of
the Companies Act, 2013, where applicable, for all transactions with
the related parties and the details of related party transactions have
been disclosed in the financial statements etc. as required by the
applicable accounting standards.
(xiv) During the year the Company has not made any preferential
allotment or private placement of shares or fully or partly convertible
debentures and hence reporting under clause (xiv) of CARO 2016 is not
applicable to the Company.
(xv) In our opinion and according to the information and explanations
given to us, during the year the Company has not entered into any non-
cash transactions with its directors or persons connected with him and
hence provisions of section 192 of the Companies Act, 2013 are not
applicable.
(xvi) The Company is not required to be registered under section 45-IA
of the Reserve Bank of India Act, 1934.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm''s Registration No. 015125N)
Vijay Agarwal
Place : New Delhi Partner
Date : May 10, 2016 (Membership No.094468)
Mar 31, 2016
We have audited the accompanying standalone financial statements of DCM
SHRIRAM LIMITED ("the Company"), which comprise the Balance Sheet as at
March 31, 2016, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
prescribed under section 133 of the Act, as applicable. This
responsibility also includes maintenance of adequate accounting records
in accordance with the provisions of the Act for safeguarding the
assets of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error. Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder and the Order under section 143 (11) of the Act.
We conducted our audit of the standalone financial statements in
accordance with the Standards on Auditing specified under Section
143(10) of the Act. Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company''s Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at March 31, 2016, and its profit and its cash flows for the year ended
on that date. Report on Other Legal and Regulatory Requirements
1. 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 best of 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 the Company so far as it appears from our examination of those
books.
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d) In our opinion, the aforesaid standalone financial statements comply
with the Accounting Standards prescribed under section 133 of the Act,
as applicable.
e) On the basis of the written representations received from the
directors as on March 31, 2016 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2016
from being appointed as a director in terms of Section 164 (2) of the
Act.
f) With respect to the adequacy of the internal financial controls over
financial reporting of the Company and the operating effectiveness of
such controls, refer to our separate Report in "Annexure A". Our report
expresses an unmodified opinion on the adequacy and operating
effectiveness of the Company''s internal financial controls over
financial reporting.
g) With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and 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
financial position in its financial statements;
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses;
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
2. As required by the Companies (Auditor''s Report) Order, 2016 ("the
Order") issued by the Central Government in terms of Section 143(11) of
the Act, we give in "Annexure B" a statement on the matters specified
in paragraphs 3 and 4 of the Order.
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a program of verification of fixed assets to cover
all the items in a phased manner over a period of three years which, in
our opinion, is reasonable having regard to the size of the Company and
the nature of its assets. Pursuant to the program, certain fixed assets
were physically verified by the Management during the year. According
to the information and explanations given to us, no material
discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and the
records examined by us and based on the examination of the registered
sale deeds and lease agreements provided to us, we report that, the
title deeds, comprising the immovable properties of land (freehold and
leasehold) and buildings, are held in the name of the Company and in
case where such immovable properties has been transferred pursuant to
the scheme of amalgamation under Section 391 to 394 of the Companies
Act, 1956, the transfer is through the order of the Hon''ble High
Courts. Further, lands located at Rajasthan measuring 808.70 Bighas
amounting to Rs 13.03 Crores, land located at Hyderabad measuring 5.03
acres amounting to Rs.1.56 Crores and lands located at Uttar Pradesh
measuring 7.79 hectares amounting to Rs 0.70 Crores, are pending for
registration in favour of the Company.
(ii) As explained to us, the inventories were physically verified
during the year by the Management at reasonable intervals except for
inventory lying with third parties at the end of the year for which
confirmations have been obtained in most of the cases and no material
discrepancies were noticed on physical verification.
(iii) According to the information and explanations given to us, the
Company has, during the year, granted unsecured loans aggregating to
Rs.26.93 Crores to five wholly owned subsidiaries covered in the
register maintained under section 189 of the Companies Act, 2013. At
the year end, the loans granted to six subsidiaries aggregate to
Rs.157.11 Crores (net of provision of Rs.7.01 Crores). These loans
include interest free loan of Rs.30.78 Crores made to a wholly owned
subsidiary, which, as explained to us, have been made for setting up
new projects. In respect of these loans:
(a) The terms and conditions of the grant of such loans are, in our
opinion, prima facie, not prejudicial to the Company''s interest after
considering the purpose for which loans have been granted as indicated
above.
(b) The schedule of repayment of principal and payment of interest has
been stipulated and repayments or receipts of principal amounts and
interest have been regular as per stipulations.
(c) There is no overdue amount remaining outstanding as at the year-end
for more than 90 days.
The reporting under clauses (iii)(b) and (c) above has been done
without considering the loans against which provision have been made in
earlier years.
(iv) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
185 and 186 of the Companies Act, 2013 in respect of grant of loans and
making investments.
(v) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
73 to 76 or any other relevant provisions of the Companies Act, 2013
and the Companies (Acceptance of Deposits) Rules, 2014, as amended,
with regard to the deposits accepted. According to the information and
explanations given to us, no order has been passed by the Company Law
Board or the National Company Law Tribunal or the Reserve Bank of India
or any Court or any other Tribunal in respect of contravention of the
above said sections and the relevant rules.
(vi) The maintenance of cost records has been specified by the Central
Government under section 148(1) of the Companies Act, 2013 in respect
of Sugar, Cement, Fertilizer, Chemicals, PVC Resin, UPVC doors and
windows businesses. We have broadly reviewed the cost records
maintained by the Company pursuant to the Companies (Cost Records and
Audit) Rules, 2014, as amended prescribed by the Central Government
under sub-section (1) of Section 148 of the Companies Act, 2013, and
are of the opinion that, prima facie, the prescribed cost records have
been made and maintained. We have, however, not made a detailed
examination of the cost records with a view to determine whether they
are accurate or complete.
(vii) According to the information and explanations given to us, in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
statutory dues, including Provident Fund, Employees'' State Insurance,
Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value
Added Tax, cess and other material statutory dues applicable to it to
the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident
Fund, Employees'' State Insurance, Income- tax, Sales Tax, Service Tax,
Customs Duty, Excise Duty, Value Added Tax, cess and other material
statutory dues in arrears as at March 31, 201 6 for a period of more
than six months from the date they became payable.
(c) Details of dues of Income-tax, Sales Tax/ Value Added Tax, Service
Tax, Customs Duty and Excise Duty which have not been deposited as on
March 31, 2016 on account of disputes are given below:
Name of Nature of Forum where Dispute Period to which
the Amount Relates
Statute Dues is Pending
Central Excise Excise Duty Appellate Authority 2005-06, 2006-07,
2007-08,
Law upto Commissioner''s 2008-09,2009-10,
2010-11,
level 2011-12,2012-13
Customs, Excise and 1997-98, 2004-05,
2005-06,
Service Tax Appellate 2006-07, 2007-08,
2008-09,
Tribunal 2009-10, 2010-11,
2011-12, 2012-13
Finance Act, Service Tax Customs, Excise and 2005-06, 2007-08,
2008-09,
1994 Service Tax Appellate 2009-10,2010-11,
2011-12,2012-13
Tribunal
Income-tax Income-tax Appellate Authority 2010-11,2011-12
Act, 1961 upto Commissioner''s
level
Income Tax Appellate 2009-10
Tribunal
Customs Act, Customs Duty Customs, Excise and 2012-13
1962 Service Tax Appellate
Tribunal
Sales Tax Sales Tax Appellate Authority 1983-84,2001-02,
2005-06,
Laws upto Commissioner''s 2006-07,2007-08,
2010-11,
level 2011-12
Appellate Tribunal 1994-95, 2009-10
Name of Statute Amount Amount paid Amount
Involved * under protest Unpaid
(Rs.in Crores) (Rs.in Crores) (Rs.in Crores)
Central Excise Law 3728 5705 3.23
5747 1.02 4.45
Finance Act, 1994 31.94 31.71 0.22
Income-tax Act, 1961 5.71 5.71 -
2.21 2.21 -
Customs Act, 1962 5.38 0.54 4.84
Sales Tax 1.89 0.41 1.48
2.39 0.95 1.44
*Amount as per demand orders including interest and penalty wherever
indicated in the order.
The following matter has been decided in favour of the Company although
the department has preferred appeal at higher levels:
Name of
Statute Nature of
Dues Forum where
Dispute is
Pending Period to which
the Amount Relates Amount
Involved
(Rs.in
Crores)
Sales Tax
Laws Value Added
Tax Rajasthan Tax
Board 2008-09,2009-10,
2010-11,2011-12 3.65
High Court 2001-02 1.31
Income-
tax Act,
1961 Income-tax Income Tax
Appellate
Tribunal 2009-10 0.45
(viii) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
financial institutions, banks and government and dues to debenture
holders.
(ix) The Company has not raised moneys by way of initial public offer
or further public offer. Further, during the year, the Company has
raised money by way of debt instruments including commercial papers. In
our opinion and according to the information and explanation given to
us, money raised by way of debt instruments and term loans have been
applied by the Company during the year for the purposes for which they
were raised.
(x) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company by its officers or employees has been noticed or
reported during the year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has paid/provided managerial remuneration in
accordance with the requisite approvals mandated by the provisions of
section 197 read with Schedule V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and hence reporting under
clause (xii) of the CARO 2016 Order is not applicable.
(xiii) In our opinion and according to the information and explanations
given to us the Company is in compliance with Section 1 88 and 1 77 of
the Companies Act, 2013, where applicable, for all transactions with
the related parties and the details of related party transactions have
been disclosed in the financial statements etc. as required by the
applicable accounting standards.
(xiv) During the year the Company has not made any preferential
allotment or private placement of shares or fully or partly convertible
debentures and hence reporting under clause (xiv) of CARO 2016 is not
applicable to the Company.
(xv) In our opinion and according to the information and explanations
given to us, during the year the Company has not entered into any non-
cash transactions with its directors or persons connected with him and
hence provisions of section 192 of the Companies Act, 2013 are not
applicable.
(xvi) The Company is not required to be registered under section 45-IA
of the Reserve Bank of India Act, 1934.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm''s Registration No. 015125N)
Vijay Agarwal
Place : New Delhi Partner
Date : May 10, 2016 (Membership No.094468)
Mar 31, 2015
We have audited the accompanying standalone financial statements of DCM
SHRIRAM LIMITED ("the Company"), which comprise the Balance Sheet as at
March 31, 2015, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditors'' judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company''s Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at March 31, 2015, and its profit and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors'' Report) Order, 2015 ("the
Order"), 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
statement on the matters specified in paragraphs 3 and 4 of the Order.
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 best of 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 the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on March 31, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditors''
Report in accordance with Rule 11 of the Companies (Audit and
Auditors'') Rules, 2014, in our opinion and 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
financial position in its financial statements;
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses;
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT (Referred to in paragraph
1 under ''Report on Other Legal and Regulatory Requirements'' section of
our report of even date)
(i) In respect of the Company''s fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) As explained to us, the Company has a programme of physically
verifying all its fixed assets over a period of three years, which in
our opinion is reasonable having regard to the size of the Company and
nature of its fixed assets. In accordance with this programme, some of
the fixed assets were physically verified by the management during the
year. The discrepancies noticed on such verification between the
physical balances and the fixed assets records were not material and
have been properly dealt with in the books of account.
(ii) In respect of the Company''s inventories:
(a) Inventories have been physically verified during the year by the
Management at reasonable intervals except for inventory lying with
third parties at the end of the year for which confirmations have been
obtained in most of the cases.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
(iii) (a) According to the information and explanations given to us,
the Company has, during the year, granted unsecured loans aggregating
Rs 34.22 crores to two wholly owned subsidiaries covered in the
register maintained under section 189 of the Act. At the year end, the
outstanding loans granted to four wholly owned subsidiaries aggregates
to Rs 144.17 crores.
(b) According to the information and explanations given to us, the
parties, to whom the loans have been granted by the Company, as
referred to in paragraph 3 (iii) (a) above, have been regular in
repayment of principal amount as stipulated and have been regular in
payment of interest where charged and for loans repayable on demand, as
being not recalled during the year.
(c) According to the information and explanations given to us, there
are no overdue amounts in respect of the loans granted as referred to
in paragraph 3 (iii) (a) above and interest thereon where charged.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory and fixed assets and the sale of goods and
services. During the course of our audit, we have not observed any
major weakness in such internal control system.
(v) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Section 73
to 76 or any other relevant provisions of the Companies Act, 2013 and
the Companies (Acceptance of Deposits) Rules, 2014, as amended, with
regard to the deposits accepted from the public. According to the
information and explanations given to us, no order has been passed by
the Company Law Board or National Company Law Tribunal or the Reserve
Bank of India or any Court or any other Tribunal on the Company.
(vi) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Records and Audit) Rules, 2014,
as amended and prescribed by the Central Government under sub-section
(1) of Section 148 of the Companies Act, 2013, and are of the opinion
that, prima facie, the prescribed cost records have been made and
maintained. We have, however, not made a detailed examination of the
cost records with a view to determine whether they are accurate or
complete.
(vii) According to the information and explanations given to us, in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
statutory dues, including Provident Fund, Employees'' State Insurance,
Income-tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise
Duty, Value Added Tax, Cess and other material statutory dues
applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident
Fund, Employees'' State Insurance, Income-tax, Sales Tax, Wealth Tax,
Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other
material statutory dues in arrears as at March 31, 2015 for a period of
more than six months from the date they became payable.
(c) According to the information and explanations given to us and the
records of the Company examined by us, there are no disputed dues of
Wealth Tax and Cess matters. The details of disputed dues not paid of
Excise Duty, Service Tax, Income-tax, Customs Duty and Sales Tax/ Value
Added Tax dues as at March 31, 2015 are as follows:
Nature of Statute Nature of Dues Forum where pending
Central Excise Law Excise Duty Appellate authority upto
Commissioner''s level
Customs, Excise and Service
Tax
Appellate Tribunal
Finance Act, 1994 Service Tax Customs, Excise and
Service Tax
Appellate Tribunal
Income Tax Act, 1961 Income Tax Appellate authority upto
Commissioner''s level
Income Tax Appellate
Tribunal
Customs Act, 1962 Customs Duty Customs, Excise and
Service Tax
Appellate Tribunal
Sales Tax Laws Sales Tax Appellate authority upto
Commissioner''s level
Appellate Tribunal
Nature of Statute Amount * Amount paid Period to which the
(Rs. in
Crores) under protest amount relates
(Rs.in Crores)
Central Excise Law 3.30 0.05 1995-96, 2005-06,
2006- 07, 2007-08,
2008- 09, 2009-10,
2010-11, 2011-12
4.01 1.17 1997-98, 2004-05,
2005-06, 2006-07,
2007- 08, 2008-09,
2009- 10, 2010-11
Finance Act, 1994 31.92 31.71 2005-06, 2007-08,
2008- 09, 2009-10,
2010- 11, 2011-12,
2012-13
Income Tax Act, 1961 8.08 8.08 2010-11, 2011-12
2.92 2.92 2007-08, 2008-09,
2009- 10
Customs Act, 1962 5.38 0.54 2012-13
Sales Tax Laws 1.43 0.49 1983-84, 2001-02,
2005-06, 2006-07,
2007-08, 2009-10,
2011-12
2.39 0.95 1994-95, 2009-10
* Amount as per demand orders including interest and penalty wherever
quantified in the Order.
(d) In our opinion and according to the information and explanations
given to us, the amount required to be transferred to investor
education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules made
thereunder has been transferred to such fund within time.
(viii) The Company does not have accumulated losses. The Company has
not incurred cash losses during the financial year covered by our audit
and in the immediately preceding financial year.
(ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
financial institutions, banks and debenture holders.
(x) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantee given by the
Company for loan taken by others from a financial institution is not,
prima facie, prejudicial to the interests of the Company.
(xi) In our opinion and according to the information and explanations
given to us, the term loans have been applied by the Company during the
year for the purposes for which they were obtained.
(xii) To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud by the Company and
no material fraud on the Company has been noticed or reported during
the year.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm''s Registration No. 015125N)
Vijay Agarwal
New Delhi, Partner
May 1, 2015 (Membership No.094468)
Mar 31, 2014
We have audited the accompanying financial statements of DCM SHRIRAM
LIMITED ("the Company"), which comprise the Balance Sheet as at 31st
March, 2014, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards notified under the Companies
Act, 1956 ("the Act") (which continue to be applicable in respect of
Section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate
Affairs) and in accordance with the accounting principles generally
accepted in India. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company's preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company's internal control. An audit also includes
evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the Management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2003 ("the
Order") issued by the Central Government in terms of Section 227(4A) of
the Act, we give in the Annexure a statement on the matters specified
in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of 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 the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement comply with the Accounting Standards
notified under the Act (which continue to be applicable in respect of
Section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate
Affairs).
(e) On the basis of the written representations received from the
directors as on 31st March, 2014 and taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2014
from being appointed as a director in terms of Section 274(1)(g) of the
Act.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT (Referred to in paragraph
1 under 'Report on Other Legal and Regulatory Requirements' section of
our report of even date)
Having regard to the nature of the Company's business/activities and
results for the year, clauses (x), (xiii) and (xiv) of Companies
(Auditor's Report) Order, 2003 ("the Order") are not applicable.
(i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
(b) As explained to us, the Company has a programme of physically
verifying all its fixed assets over a period of three years, which in
our opinion is reasonable having regard to the size of the Company and
nature of its fixed assets. In accordance with this programme, some of
the fixed assets were physically verified by the management during the
year. The discrepancies noticed on such verification between the
physical balances and the fixed assets records were not material and
have been properly dealt with in the books of account.
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
(ii) In respect of its inventory :
(a) As explained to us, the inventories were physically verified during
the year by the Management at reasonable intervals except for inventory
lying with third parties at the end of the year for which confirmations
have been obtained in most of the cases.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) On the basis of our examination of the records of inventories, we
are of the opinion that, the Company is maintaining proper records of
inventories. The discrepancies noticed on physical verification of
inventories as compared to book records were not material and have been
properly dealt with in the books of account.
(iii) (a) According to the information and explanations given to us,
the Company has, during the year, not granted any loan, secured or
unsecured to companies, firms and other parties covered in the register
maintained under Section 301 of the Companies Act, 1956, other than
unsecured loans aggregating Rs. 21.46 crores granted during the year to
five wholly owned subsidiaries covered in the register maintained under
Section 301 of the Companies Act, 1956. At the year end, the loans
granted to eight subsidiaries aggregate to Rs. 110.89 crores. The
maximum amount due during the year of these loans was Rs. 111.00
crores. These loans include interest free loans aggregating Rs. 76.71
crores made to two wholly owned subsidiaries, which, as explained to
us, have been made for setting up new projects and making strategic
investments in other subsidiaries.
(b) In our opinion and according to the information and explanations
given to us, after considering the purpose for which loans have been
granted as indicated in paragraph 4(iii)(a) of the Order, the rate of
interest and other terms and conditions of the loans granted, are,
prima facie, not prejudicial to the interest of the Company.
(c) According to the information and explanations given to us, the
parties, to whom the loans have been granted by the Company, as
referred to in paragraph 4(iii)(a) above, have been regular in
repayment of principal amount as stipulated and have been regular in
payment of interest where charged.
(d) According to the information and explanations given to us, there
are no overdue amounts in respect of the loans granted as referred to
in paragraph 4(iii)(a) above and interest thereon where charged.
(e) According to the information and explanations given to us, during
the year the Company has taken loan from a subsidiary covered in the
register maintained under Section 301 of the Companies Act, 1956,
amounting to Rs. 4.50 crores which has been fully repaid during the
year. Further opening balance of loan taken from another subsidiary
amounting to Rs. 1.31 crores is outstanding at year end. The maximum
amount due during the year of these loans was Rs. 5.86 crores.
(f) The rate of interest and other terms and conditions of such loans
are, in our opinion, prima facie not prejudicial to the interests of
the Company.
(g) The payments of principal amounts and interest in respect of such
loans are as per stipulations.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory and fixed assets and the sale of goods and
services. During the course of our audit, we have not observed any
major weakness in such internal control system.
(v) In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
(a) The particulars of contracts or arrangements referred to in Section
301 that needed to be entered in the Register maintained under the said
Section have been so entered.
(b) Where each of such transaction is in excess of Rs.5 lakhs in
respect of any party, the transactions have been made at prices which
are prima facie reasonable having regard to the prevailing market
prices at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Section
58A, Section 58AA or any other relevant provisions of the Companies
Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975, with
regard to the deposits accepted from the public. As per information and
explanations given to us, no order under the aforesaid sections has
been passed by the Company Law Board or National Company Law Tribunal
or Reserve Bank of India or any Court or any other Tribunal on the
Company.
(vii) In our opinion, the internal audit functions carried out during
the year by the Company and the firms of Chartered Accountants
appointed by the Management have been commensurate with the size of the
Company and the nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government, the maintenance of cost records has been prescribed
under Section 209(1)(d) of the Companies Act, 1956 and are of the
opinion that, prima facie, the prescribed accounts and records have
been made and maintained. We have not, however, made a detailed
examination of the records with a view to determining whether they are
accurate or complete.
(ix) (a) According to the information and explanations given to us and
the records of the Company examined by us, the Company has generally
been regular in depositing undisputed statutory dues, including
Provident Fund, Investor Education and Protection Fund, Employees'
State Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty, Cess and other material statutory dues
applicable to it with the appropriate authorities. We are informed that
there are no undisputed statutory dues as at the year end outstanding
for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no disputed dues of
Wealth Tax, Customs Duty and Cess matters. The details of disputed dues
not paid of Excise Duty, Service Tax, Income-tax and Sales Tax dues as
at March 31, 2014 are as follows:
(xiii) In our opinion and according to the information and explanations
given to us, the term loans have been applied by the Company during the
year for the purposes for which they were obtained.
(xiv) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that short term funds have not been used to finance long term
investments.
(xv) As the Company has not made any preferential allotment of shares
during the year, paragraph 4 (xviii) of the Order is not applicable.
Nature of the Nature of Forum where pending
statute the dues
Central Excise Law Excise Duty Appellate authority up to
Commissioners' level
Central Excise and Service
Tax Appellate Tribunal
Finance Act, 1994 Service Tax Appellate authority up to
Commissioners' level
Central Excise and Service
Tax Appellate Tribunal
Income Tax Income Tax Appellate authority up to
Act, 1961 Commissioners' level
Income Tax Appellate
Tribunal
Sales Tax Laws Sales Tax Appellate authority up to
Commissioners' level
Appellate Tribunal
Nature of the Amount* Amount paid
statute (Rs. in under protest
Crores) (Rs. in Crores)
Central Excise Law 5.30 0.05
3.96 1.03
Finance Act, 1994 0.15 -
0.26 0.05
Income Tax 1.01 1.01
Act, 1961 0.71 0.71
Sales Tax Laws 1.43 0.49
2.54 0.83
Nature of the Period to which the amount relates
Act, 1961
Central Excise Law 1995-96, 2005-06, 2006-07, 2007-08,
2008-09, 2009-10, 2010-11, 2011-12
1997-98, 2004-05, 2005-06, 2006-07,
2007-08, 2008-09, 2009-10, 2010-11
Finance Act, 1994 2008-09, 2009-10, 2010-11
2005-06, 2006-07, 2007-08, 2008-09,
2009-10, 2010-11
Income Tax 2009-10, 2010-11
Act, 1961
2007-08, 2008-09
Sales Tax Laws 1983-84, 2001-02, 2005-06, 2006-07,
2007-08, 2009-10, 2011-12
1994-95, 2009-10
* Amount as per demand orders including interest and penalty wherever
quantified in the Order.
(x) According to the records of the Company examined by us and the
information and explanations given to us, the Company, during the year,
has not defaulted in repayment of dues to financial institutions, banks
and debenture holders.
(xi) As the Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities, paragraph 4 (xii) of the Order is not applicable.
(xii) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company, for loans taken by others from banks or financial institutions
during the year, are not prejudicial to the interest of the Company.
(xvi) The Company has not issued any debenture during the year.
(xvii) Since, the Company has not raised any money by way of public
issue during the year, paragraph 4 (xx) of the Order is not applicable.
(xviii) To the best of our knowledge and according to the information
and explanations given to us, no fraud by the Company and no material
fraud on the Company has been noticed or reported during the year.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm's Registration No. 015125N)
Jaideep Bhargava
GURGAON Partner
April 28, 2014 (Membership No. 90295)
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of DCM SHRIRAM
CONSOLIDATED LIMITED ("the Company"), which comprise the Balance Sheet
as at 31st March , 2013, the Statement of Profit and Loss and the Cash
Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards referred to in Section 211(3C)
of the Companies Act, 1956 ("the Act") and in accordance with the
accounting principles generally accepted in India. This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company''s internal control. An audit also includes
evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the Management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31s* March, 2013;
(b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government in terms of Section 227(4A) of
the Act, we give in the Annexure a statement on the matters specified
in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of 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 the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement comply with the Accounting Standards
referred to in Section 211(3C) of the Act.
(e) On the basis of the written representations received from the
directors as on 31s* March, 2013 and taken on record by the Board of
Directors, none of the directors is disqualified as on 31s* March, 2013
from being appointed as a director in terms of Section 274(1)(g) of the
Act.
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT (Referred to in paragraph
1 under ''Report on Legal and Regulatory Requirements'' section of our
report of even date)
Having regard to the nature of the Company''s business/activities and
results for the year, clauses (x), (xiii) and (xiv) of Companies
(Auditor''s Report) Order, 2003 (hereinafter referred to as the Order)
are not applicable.
(i) In respect of its fixed assets :
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
(b) As explained to us, the Company has a programme of physically
verifying all its fixed assets over a period of three years, which in
our opinion is reasonable having regard to the size of the Company and
nature of its fixed assets. In accordance with this programme, some of
the fixed assets were physically verified by the management during the
year. The discrepancies noticed on such verification between the
physical balances and the fixed assets records were not material and
have been properly dealt with in the books of account.
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
(ii) In respect of its inventory :
(a) As explained to us, the inventories were physically verified during
the year by the Management at reasonable intervals except for inventory
lying with third parties at the end of the year for which confirmations
have been obtained in most of the cases.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) On the basis of our examination of the records of inventories, we
are of the opinion that, the Company is maintaining proper records of
inventories. The discrepancies noticed on physical verification of
inventories as compared to book records were not material and have been
properly dealt with in the books of account.
(iii) (a) According to the information and explanations given to us,
the Company has, during the year, not granted any loan, secured or
unsecured to companies, firms and other parties covered in the register
maintained under Section 301 of the Companies Act, 1956, other than
unsecured loans aggregating Rs. 13.74 crores granted during the year to
three wholly owned subsidiaries covered in the register maintained
under Section 301 of the Companies Act, 1956. At the year end, the
loans granted to five subsidiaries aggregate to Rs. 91.81 crores. The
maximum amount due during the year of these loans was Rs. 92.22
crores. These loans include interest free loans aggregating Rs. 72.16
crores made to two wholly owned subsidiaries, which, as explained to
us, have been made for setting up new projects and making strategic
investments in other subsidiaries.
(b) In our opinion and according to the information and explanations
given to us, after considering the purpose for which loans have been
granted as indicated in paragraph 4(iii)(a) of the Companies (Auditor''s
Report) Order, 2003 (hereinafter referred to as the Order), the rate of
interest and other terms and conditions of the loans granted, are,
prima-facie, not prejudicial to the interest of the Company.
(c) According to the information and explanations given to us, the
parties, to whom the loans have been granted by the Company, as
referred to in paragraph 4(iii)(a) above, have been regular in
repayment of principal amount as stipulated and have been regular in
payment of interest where charged.
(d) According to the information and explanations given to us, there
are no overdue amounts in respect of the loans granted as referred to
in paragraph 4(iii)(a) above and interest thereon where charged.
(e) According to the information and explanations given to us, during
the year the Company has taken loan from one party covered in the
register maintained under section 301 of the Companies Act, 1956,
amounting to Rs. 1.36 crore (maximum amount outstanding during the year
Rs.1.36 crore), which is outstanding as at the year end.
(f) The rate of interest and other terms and conditions of such loans
are, in our opinion, prima facie not prejudicial to the interests of
the Company.
(g) The payments of principal amounts and interest in respect of such
loans are as per stipulations.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory and fixed assets and the sale of goods and
services. During the course of our audit, we have not observed any
major weakness in such internal control system.
(v) In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
(a) The particulars of contracts or arrangements referred to Section
301 that needed to be entered in the Register maintained under the said
Section have been so entered.
(b) Where each of such transaction is in excess of Rs.5 lakhs in
respect of any party, the transactions have been made at prices which
are prima facie reasonable having regard to the prevailing market
prices at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of section
58A, section 58AA or any other relevant provisions of the Companies
Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975, with
regard to the deposits accepted from the public. As per information and
explanations given to us, no order under the aforesaid sections has
been passed by the Company Law Board or National Company Law Tribunal
or Reserve Bank of India or any Court or any other Tribunal on the
Company.
(vii) In our opinion, the internal audit functions carried out during
the year by the Company and the firms of Chartered Accountants
appointed by the Management have been commensurate with the size of the
Company and the nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government, the maintenance of cost records has been prescribed
under section 209(1) (d) of the Companies Act, 1956 and are of the
opinion that, prima facie, the prescribed accounts and records have
been made and maintained. We have not, however, made a detailed
examination of the records with a view to determining whether they are
accurate or complete.
(ix) (a) According to the information and explanations given to us and
the records of the Company examined by us, the Company has generally
been regular in depositing undisputed statutory dues including
provident fund, investor education protection fund, employees'' state
insurance, income-tax, sales tax, wealth tax, service tax, customs
duty, excise duty, cess and other material statutory dues applicable to
it. We are informed that there are no undisputed statutory dues as at
the year end outstanding for a period of more than six months from the
date they became payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no disputed dues of
wealth tax, customs duty and cess matters. According to the information
and explanations given to us and the records of the Company examined by
us, the details of disputed dues not paid of excise duty, service tax,
income-tax and sales tax dues as at March 31, 2013 are as follows:
Nature of the Nature of Forum where
statute the dues pending
Central Excise Law Excise duty Appellate authority up
to Commissioners'' level
Central Excise and Service
Tax Appellate Tribunal
Finance Act, 1994 Service Tax Appellate authority up to
Commissioners'' level
Central Excise and Service
Tax Appellate Tribunal
Income Tax Act, 1961 Income tax Appellate authority up to
Commissioners'' level
Income Tax Appellate Tribunal
Sales Tax Laws Sales tax Appellate authority up to
Commissioners'' level
Appellate Tribunal
Nature of the
Statute Amount* Amount paid Period to which the
(Rs. in under protest amount relates
Crores) (Rs. in Crores)
Central Excise Law 2.90 0.12 1995-96, 2006-07,
2007-08, 2008-09,
2009-10, 2010-11,
2011-12
6.59 1.75 1997-98, 2004-05,
2005-06, 2006-07,
2007-08, 2008-09,
2009-10, 2010-11
Finance Act, 1994 0.09 # 2007-08, 2008-09,
2009-10, 2010-11
0.22 0.05 2005-06, 2006-07,
2007-08, 2008-09,
2009-10
Income Tax Act 1961 0.55 0.55 2009-10
0.71 0.71 2007-08, 2008-09
Sales Tax Laws 1.73 0.55 1983-84, 2001-02,
2006-07, 2007-08,
2010-11
2.47 0.80 1994-95
* amount as per demand orders including interest and penalty wherever
quantified in the Order.
# Rs. 15,000
(x) According to the records of the Company examined by us and the
information and explanations given to us, the Company, during the year,
has not defaulted in repayment of dues to financial institutions, banks
and debenture holders.
(xi) As the Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities, paragraph 4 (xii) of the Order is not applicable.
(xii) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company, for loans taken by others from banks or financial institutions
during the year, are not prejudicial to the interest of the Company.
(xiii) In our opinion and according to the information and explanations
given to us, the term loans taken have been applied for the purpose for
which they were obtained, other than temporary deployment pending
allocation.
(xiv) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that short term funds have not been used to finance long term
investments.
(xv) As the Company has not made any preferential allotment of shares
during the year, paragraph 4 (xviii) of the Order is not applicable.
(xvi) The Company has not issued any debenture during the year.
(xvii) Since, the Company has not raised any money by way of public
issue during the year, paragraph 4 (xx) of the Order is not applicable.
(xviii) To the best of our knowledge and according to the information
and explanations given to us, no fraud by the Company and no material
fraud on the Company has been noticed or reported during the year.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Registration No. 015125 N)
Jaideep Bhargava
Gurgaon Partner
Date : 02nd May, 2013 (Membership No.: 90295)
Mar 31, 2012
1. We have audited the attached Balance Sheet of DCM SHRIRAM
CONSOLIDATED LIMITED ("the Company") as at March 31, 2012, the
Statement of Profit and Loss and the Cash Flow Statement of the Company
for the year ended on that date, both annexed thereto. These financial
statements are the responsibility of the Company's Management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and the disclosures in the financial statements. An audit also includes
assessing the accounting principles used and the significant estimates
made by the Management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003
(CARO) issued by the Central Government in terms of Section 227(4A) of
the Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report as follows:
(a) we have obtained all the information and explanations which to the
best of 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 the Company so far as it appears from our examination of
those books;
(c) the Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account;
(d) in our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement dealt with by this report are in compliance
with the Accounting Standards referred to in Section 211(3C) of the
Companies Act, 1956;
(e) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2012;
(ii) in the case of the Statement of Profit and Loss, of the loss of
the Company for the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
5. On the basis of the written representations received from the
Directors as on March 31, 2012 and taken on record by the Board of
Directors, none of the Directors is disqualified as on March 31, 2012
from being appointed as a director in terms of Section 274(1)(g) of the
Companies Act, 1956.
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in paragraph 3 of our report of even date)
Having regard to the nature of the Company's business/ activities and
results for the year, clauses (x), (xiii) and (xiv) of Companies
(Auditor's Report) Order, 2003 (hereinafter referred to as the Order)
are not applicable.
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of the fixed
assets.
(b) As explained to us, the Company has a programme of physically
verifying all its fixed assets over a period of three years, which in
our opinion is reasonable having regard to the size of the Company and
nature of its fixed assets. In accordance with this programme, some of
the fixed assets were physically verified by the management during the
year. The discrepancies noticed on such verification between the
physical balances and the fixed assets records were not material and
have been properly dealt with in the books of account.
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
(ii) (a) As explained to us, the inventories were physically
verified during the year by the Management at reasonable intervals
except for inventory lying with third parties at the end of the year
for which confirmations have been obtained in most of the cases.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) On the basis of our examination of the records of inventories, we
are of the opinion that, the Company is maintaining proper records of
inventories. The discrepancies noticed on physical verification of
inventories as compared to book records were not material and have been
properly dealt with in the books of account.
(iii) (a) According to the information and explanations given to us,
the Company has, during the year, not granted any loan, secured or
unsecured to companies, firms and other parties covered in the register
maintained under Section 301 of the Companies Act, 1956, other than
unsecured loans aggregating Rs. 5.89 crores granted during the year to
six wholly owned subsidiaries covered in the register maintained under
Section 301 of the Companies Act, 1956.
The maximum amount due during the year of above loans was Rs. 80.34
crores and the year end balance of loans so granted was Rs. 77.64
crores. These loans includes interest free loans aggregating Rs. 62.93
crores made to two wholly owned subsidiaries, which, as explained to
us, have been made for setting up new projects and making strategic
investments in other subsidiaries.
(b) In our opinion and according to the information and explanations
given to us, after considering the purpose for which loans have been
granted as indicated in paragraph 4(iii)(a) of the Companies
(Auditor's Report) Order, 2003 (hereinafter referred to as the
Order), the rate of interest and other terms and conditions of the
loans granted, are, prima-facie, not prejudicial to the interest of the
Company.
(c) According to the information and explanations given to us, the
parties, to whom the loans have been granted by the Company, as
referred to in paragraph 4(iii)(a) above, have been regular in
repayment of principal amount as stipulated and have been regular in
payment of interest where charged.
(d) According to the information and explanations given to us, there
are no overdue amounts in respect of the loans granted as referred to
in paragraph 4(iii)(a) above and interest thereon where charged.
(e) According to the information and explanations given to us, the
Company has not taken any loans, secured or unsecured from companies,
firms or other parties covered in the register maintained under section
301 of the Companies Act, 1956. Accordingly, paragraph (iii)(f) and
(g) of the Order are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory and fixed assets and the sale of goods and
services. During the course of our audit, we have not observed any
major weakness in such internal control system.
(v) In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
(a) The particulars of contracts or arrangements referred to in Section
301 that needed to be entered in the Register maintained under the said
Section have been so entered.
(b) Where each of such transaction is in excess of Rs.5 lakhs in
respect of any party, the transactions have been made at prices which
are prima facie reasonable having regard to the prevailing market
prices at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of section
58A, section 58AA or any other relevant provisions of the Companies
Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975, with
regard to the deposits accepted from the public. As per information and
explanations given to us, no order under the aforesaid sections has
been passed by the Company Law Board or National Company Law Tribunal
or Reserve Bank of India or any Court or any other Tribunal on the
Company.
(vii) In our opinion, the internal audit functions carried out during
the year by the Company and the firms of Chartered Accountants
appointed by the Management have been commensurate with the size of the
Company and the nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government, the maintenance of cost records has been prescribed
under section 209(1) (d) of the Companies Act, 1956 and are of the
opinion that, prima facie, the prescribed accounts and records have
been made and maintained. We have not, however, made a detailed
examination of the records with a view to determining whether they are
accurate or complete.
(ix) (a) According to the information and explanations given to us and
the records of the Company examined by us, the Company has generally
been regular in depositing undisputed statutory dues including
provident fund, investor education protection fund, employees' state
insurance, income-tax, sales tax, wealth tax, service tax, customs
duty, excise duty, cess and other material statutory dues applicable to
it. We are informed that there are no undisputed statutory dues as at
the year end outstanding for a period of more than six months from the
date they became payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no disputed dues of
wealth tax, customs duty and cess matters.
According to the information and explanations given to us and the
records of the Company examined by us, the details of disputed dues not
paid of excise duty, service tax, income-tax and sales tax dues as at
March 31, 2012 are as follows:
(xiv) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that short term funds have not been used to finance long term
investments.
(xv) As the Company has not made any preferential allotment of shares
during the year, paragraph 4 (xviii) of the Order is not applicable.
(xvi) The Company has not issued any debenture during the year.
(xvii) Since, the Company has not raised any money by way of public
issue during the year, paragraph 4 (xx) of the Order is not applicable.
Nature of the Nature of Forum where Amount*
statute the dues pending (Rs. in
Crores)
Central Excise Law Excise duty Appellate authority up 3.11
to Commissioners' level
Central Excise and 5.56
Service Tax Appellate
Tribunal
High Court 2.56
Finance Act, 1994 Service Tax Appellate authority up 0.11
to Commissioners' level
Central Excise and 0.26
Service Tax Appellate
Tribunal
Income Tax Act, 1961 Income tax Appellate authority
up to 0.20
Commissioners' level
Sales Tax Laws Sales tax Appellate authority
up to 2.71
Commissioners' level
Appellate Tribunal 2.59
Nature of the Amount paid Period to which the
statute under protest amount relates
(Rs. in Crores)
Central Excise Law 0.07 1995-96, 2005-06, 2006-07,
2007-08, 2008-09, 2009-10,
2010-11
Finance Act, 1994 1.70 1997-98, 2004-05, 2005-06
2006-07, 2007-08, 2008-09
2009-10, 2010-11
0.06 2006-07, 2007-08, 2008-09,
2009-10, 2010-11
0.01 2007-08, 2008-09, 2009-10
2010-11
0.06 2005-06, 2006-07, 2007-08,
2008-09, 2009-10
Income Tax Act, 1961 0.20 2007-08
Sales Tax Laws 0.50 1983-84, 2001-02, 2005-06,
2006-07, 2007-08, 2008-09
0.83 1994-95, 2007-08, 2008-09
* amount as per demand orders including interest and penalty wherever
quantified in the Order.
(x) According to the records of the Company examined by us and the
information and explanations given to us, the Company, during the year,
has not defaulted in repayment of dues to financial institutions, banks
and debenture holders.
(xi) As the Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities, paragraph 4 (xii) of the Order is not applicable.
(xii) As the Company has not given any guarantees during the year for
loans taken by others from banks or financial institutions, paragraph
4(xv) of the Order is not applicable.
(xiii) In our opinion and according to the information and explanations
given to us, the term loans taken during the year have been applied for
the purpose for which they were obtained, other than temporary
deployment pending allocation.
(xviii) To the best of our knowledge and according to the information
and explanations given to us, no fraud by the Company and no material
fraud on the Company has been noticed or reported during the year.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Registration No.015125 N)
Jaideep Bhargava
Gurgaon Partner
Date : May 11, 2012 Membership No.: 90295
Mar 31, 2011
1. We have audited the attached Balance Sheet of DCM SHRIRAM
CONSOLIDATED LIMITED ("the Company") as at March 31, 2011, the Profit
and Loss Account and the Cash Flow Statement of the Company for the
year ended on that date, both annexed thereto. These financial
statements are the responsibility of the Company's Management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and the disclosures in the financial statements. An audit also includes
assessing the accounting principles used and the significant estimates
made by the Management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 (CARO)
issued by the Central Government in terms of Section 227(4A) of the
Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report as follows:
(a) we have obtained all the information and explanations which to the
best of 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 the Company so far as it appears from our examination of
those books;
(c) the Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) in our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report are in compliance
with the Accounting Standards referred to in Section 211(3C) of the
Companies Act, 1956;
(e) on the basis of the written representations received from the
Directors as on March 31, 2011 and taken on record by the Board of
Directors, none of the Directors is disqualified as on March 31, 2011
from being appointed as a director in terms of Section 274(1)(g) of the
Companies Act, 1956.
(f) without qualifying our opinion, we draw attention to note 20 of
schedule 12 relating to accounting for cane purchase liability for the
sugar season 2007- 08 at Rs. 110 per quintal instead of State Advised
Price of Rs. 125 per quintal fixed by the Uttar Pradesh State
Government. Pending completion of legal
proceedings in the matter, the effect thereof on these accounts can not
be determined at this stage.
(g) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2011;
(ii) in the case of the Profit and Loss Account, of the loss of the
Company for the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORSÃ REPORT
(Referred to in paragraph 3 of our report of even date)
Having regard to the nature of the Company's business/ activities and
results for the year, clauses (x), (xiii) and (xiv) of Companies
(Auditor's Report) Order, 2003 (hereinafter referred to as the Order)
are not applicable. (i) (a) The Company has maintained proper records
showing full particulars, including quantitative details and situation
of the fixed assets.
(b) As explained to us, the Company has a programme of physically
verifying all its fixed assets over a period of three years, which in
our opinion is reasonable having regard to the size of the Company and
nature of its fixed assets. In accordance with this programme, some of
the fixed assets were physically verified by the management during the
year. The discrepancies noticed on such verification between the
physical balances and the fixed assets records were not material and
have been properly dealt with in the books of account.
(c) The fixed assets disposed off during the year, in our Opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
(ii) (a) As explained to us, the inventories were physically verified
during the year by the Management at
reasonable intervals except for inventory lying with third parties at
the end of the year for which confirmations have been obtained in most
of the cases.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) On the basis of our examination of the records of inventories, we
are of the opinion that, the Company is maintaining proper records of
inventories. The discrepancies noticed on physical verification of
inventories as compared to book records were not material and have been
properly dealt with in the books of account.
(iii) (a) According to the information and explanations given to us,
the Company has, during the year, not granted any loan, secured or
unsecured to companies, firms and other parties covered in the register
maintained under Section 30I of the Companies Act, 1956, other than
unsecured loans aggregating Rs. 7.89 crores granted during the year to
five wholly owned subsidiaries covered in the register maintained under
Section 301 of the Companies Act, 1956.
The maximum amount due during the year of above loans was Rs. 74.47
crores and the year end balance of loans so granted was Rs. 73.96
crores. These loans includes interest free loans aggregating Rs. 62.25
crores made to two wholly owned subsidiaries, which, as explained to
us, have been made for setting up new projects and making strategic
investments in other subsidiaries.
(b) In our opinion and according to the information and explanations
given to us, after considering the purpose for which loans have been
granted as indicated in paragraph 4(iii)(a) of the Companies (Auditor's
Report) Order, 2003 (hereinafter referred to as the Order), the rate of
interest and other terms and conditions of the loans granted, are,
primafacie, not prejudicial to the interest of the Company.
(c) According to the information and explanations given to us, the
parties, to whom the loans have been granted by the Company, as
referred to in paragraph 4(iii)(a) above, have been regular in
repayment of principal amount as stipulated and have been regular in
payment of interest where charged.
(d) According to the information and explanations given to us, there
are no overdue amounts in respect of the loans granted as referred to
in paragraph 4(iii)(a) above and interest thereon where charged.
(e) According to the information and explanations given to us,
unsecured loans taken by the Company from companies, firms or other
parties covered in the register maintained under section
30I of the Companies Act, 1956, are by way of fixed deposits
aggregating Rs. 0.11 crore (maximum amount outstanding during the year
Rs 0.11 crore) from a director and his relative, which is outstanding
as at the year end.
(f) In our opinion, the rate of interest and other terms and conditions
of unsecured loan taken by the Company are not, prima facie,
prejudicial to the interest of the Company.
(g) In our opinion, the Company is regular in payment of the principal
amount and the interest thereon.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory and fixed assets and the sale of goods and
services. During the course of our audit, we have not observed any
major weakness in such internal control system.
(v) In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
(a) The particulars of contracts or arrangements referred to Section
301 that needed to be entered in the Register maintained under the said
Section have been so entered.
(b) Where each of such transaction is in excess of Rs.5 lakhs in
respect of any party, the transactions have been made at prices which
are reasonable having regard to the prevailing market prices at the
relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of section
58A, section 58AA or any other relevant provisions of the Companies
Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975, with
regard to the deposits accepted from the public. As per information and
explanations given to us, no order under the aforesaid sections has
been passed by the Company Law Board or National Company Law Tribunal
or Reserve Bank of India or any Court or any other Tribunal on the
Company.
(vii) In our opinion, the internal audit functions carried out during
the year by the Company and the firms of Chartered Accountants
appointed by the Management have been commensurate with the size of the
Company and the nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government, the maintenance of cost records has been prescribed
under section 209(1) (d) of the Companies Act, 1956 and are of the
opinion that, prima facie, the prescribed accounts and records have
been made and maintained. We have not, however, made a detailed
examination of the records with a view to determining whether they are
accurate or complete.
(ix) (a) According to the information and explanations given to us and
the records of the Company examined by us, the Company has generally
been regular in depositing undisputed statutory dues including
provident fund, investor education protection fund, employees' state
insurance, income-tax, sales tax, wealth tax, service tax, customs
duty, excise duty, cess and other material statutory dues applicable to
it. We are informed that there are no undisputed statutory dues as at
the year end outstanding for a period of more than six months from the
date they became payable. (b) According to the information and
explanations given to us and the records of the Company examined by us,
there are no disputed dues of wealth tax, customs duty and cess
matters. According to the information and explanations given to us and
the records of the Company examined by us, the details of disputed dues
not paid of excise duty, service tax, income tax and sales tax dues as
at March 31, 2011 are as follows:
(xiii) In our opinion and according to the information and explanations
given to us, the term loans taken during the year have been applied for
the purpose for which they were obtained.
(xiv) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that short term funds have not been used to finance long term
investments.
(xv) As the Company has not made any preferential allotment of shares
during the year, paragraph 4 (xviii) of the Order is not applicable.
(xvi) According to information and explanations given to us, no
security has been created for debentures issued during the year since
they are unsecured.
(xvii) Since, the Company has not raised any money by way of public
issue during the year, paragraph 4 (xx) of the Order is not applicable.
(xviii) To the best of our knowledge and according to the information
and explanations given to us, no fraud by the Company and no fraud on
the Company has been noticed or reported during the year.
Nature of the Nature of Forum where Amount* Amount
paid Period to which
the
statute the dues pending (Rs.
in under
protest amount relates
Crores) (Rs. in
Crores)
Central Excise
Law Excise duty Appellate aut
hority up 17.51 0.32 1995-96, 2002-
03, 2003-04,
to Commissioners'
level 2004-05, 2005-
06, 2006-07,
2007-08, 2008-
09, 2009-10
Central Excise
and 4.26 0.92 1997-98, 2005-
06, 2006-07
Service Tax App
ellate Tribunal 2007-08, 2008-
09, 2009-10
Finance Act,
1994 Service Tax Appellate autho
rity up 0.11 - 2007-08,2008-
09, 2009-10
to Commission
ers' level 2010-11
Central Excise
and 2.15 0.02 2005-06, 2006-
07, 2007-08,
Service Tax Appe
llate Tribunal 2008-09
Income Tax
Act, 1961 Income tax Appellate autho
rity up to 2.57 2.57 2006-07, 2007-
08
CommissionersÃ
level
Sales Tax
Laws Sales tax Appellate autho
rity up to 2.58 0.83 1983-84,1994-
95,
Commissioners'
level 2000-01, 2001-
02,
Appellate
Tribunal 0.27 0.14 2007-08, 2008-
09
* amount as per demand orders including interest and penalty wherever
quantified in the Order.
(x) According to the records of the Company examined by us and the
information and explanations given to us, the Company, during the year,
has not defaulted in repayment of dues to financial institutions, banks
and debenture holders.
(xi) As the Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities, paragraph 4 (xii) of the Order is not applicable.
(xii) As the Company has not given any guarantees during the year for
loans taken by others from banks or financial institutions, paragraph 4
(xv) of the Order is not applicable.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Registration No. 015125 N)
Jaideep Bhargava
Gurgaon Partner
Date : May 6, 2011 Membership No.: 90295
Mar 31, 2010
1. We have audited the attached Balance Sheet of DCM Shriram
Consolidated Limited ("the Company") as at March 31, 2010, the Profit
and Loss Account and the Cash Flow Statement of the Company for the
year ended on that date, both annexed thereto. These financial
statements are the responsibility of the Companys Management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and the disclosures in the financial statements. An audit also includes
assessing the accounting principles used and the significant estimates
made by the Management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 (CARO)
issued by the Central Government in terms of Section 227(4A) of the
Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report as follows:
(a) we have obtained all the information and explanations which to the
best of 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 the Company so far as it appears from our examination of
those books;
(c) the Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) in our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report are in compliance
with the Accounting Standards referred to in Section 211 (3C) of the
Companies Act, 1956;
(e) on the basis of the written representations received from the
Directors as on March 31, 2010 taken on record by the Board of
Directors, none of the Directors is disqualified as on March 31, 2010
from being appointed as a director in terms of Section 274(1 )(g) of
the Companies Act, 1956.
(f) without qualifying our opinion, we draw attention to note 20 of
schedule 12 relating to accounting for cane purchase liability for the
sugar season 2007-08 at Rs. 110 per quintal instead of State Advised
Price of Rs. 125 per quintal fixed by the Uttar Pradesh State
Government. Pending completion of legal proceedings in the matter, the
effect thereof on these accounts can not be determined at this stage.
(g) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2010;
(ii) in the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date and
(iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT (Referred to in paragraph 3 of our
report of even date)
Having regard to the nature of the Companys business/ activities and
results for the year, clauses (x), (xiii) and (xiv) of Companies
(Auditors Report) Order, 2003 (hereinafter referred to as the Order)
are not applicable.
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of the fixed
assets.
(b) As explained to us, the Company has a programme of physically
verifying all its fixed assets over a period of three years, which in
our opinion is reasonable having regard to the size of the Company and
nature of its fixed assets. In accordance with this programme, some of
the fixed assets were physically verified by the management during the
year. The discrepancies noticed on such verification between the
physical balances and the fixed assets records were not material and
have been properly dealt with in the books of account.
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
(ii) (a) As explained to us, the inventories were physically verified
during the year by the Management at reasonable intervals except for
inventory lying with third parties at the end of the year for which
confirmations have been obtained in most of the cases.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) On the basis of our examination of the records of inventories, we
are of the opinion that, the Company is maintaining proper records of
inventories. The discrepancies noticed on physical verification of
inventories as compared to book records were not material and have been
properly dealt with in the books of account.
(iii) (a) According to the information and explanations given to us,
the Company has, d uring the year, not granted any loan, secured or
unsecured to companies, firms and other parties covered in the register
maintained under Section 301 of the Companies Act, 1956, other than
unsecured loans aggregating Rs. 33.48 crores granted during the year to
five wholly owned subsidiaries covered in the register maintained under
Section 301 of the Companies Act, 1956.
The maximum amount due during the year of above loans was Rs. 97.35
crores and the year end balance of loans so granted was Rs. 68.45
crores. These loans includes interest free loan aggregating to Rs.
60.41 crores made to two wholly owned subsidiaries, which, as explained
to us, have been made for setting up new projects and making strategic
investments in other subsidiaries
(b) In our opinion and according to the information and explanations
given to us, after considering the purpose for which loans have been
granted as indicated in paragraph 4(iii)(a) of the Companies (Auditors
Report) Order, 2003 (hereinafter referred to as the Order), the rate of
interest and other terms and conditions of the loans granted, are,
prima-facie, not prejudicial to the interest of the Company.
(c) According to the information and explanations given to us, the
parties, to whom the loans have been granted by the Company, as
referred to in paragraph 4(iii)(a) above, have been regular in
repayment of principal amount as stipulated and have been regular in
payment of interest where charged.
(d) According to the information and explanations given to us, there
are no overdue amounts in respect of the loans granted as referred to
in paragraph 4(iii)(a) above and interest thereon where charged.
(e) According to the information and explanations given to us,
unsecured loans taken by the Company from companies, firms or other
parties covered in the register maintained under section 301 of the
Companies Act, 1956, are by way of fixed deposits aggregating Rs. 0.11
crore (maximum amount outstanding during the year Rs 0.11 crore) from a
director and his relative, which is outstanding as at the year end.
(f) In our opinion, the rate of interest and other terms and conditions
of unsecured loan taken by the Company are not, prima facie,
prejudicial to the interest of the Company.
(g) In our opinion, the Company is regular in payment of the principal
amount and the interest thereon.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory and fixed assets and the sale of goods and
services. During the course of our audit, we have not observed any
major weakness in such internal controlsystem.
(v) In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
(a) The particulars of contracts or arrangements referred to Section
301 that needed to be entered in the Register maintained under the said
Section have been so entered.
(b) Where each of such transaction is in excess of Rs.5 lakhs in
respect of any party, the transactions have been made at prices which
are reasonable having regard to the prevailing market prices at the
relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of section
58A, section 58AA or any other relevant provisions of the Companies
Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975, with
regard to the deposits accepted from the public. As per information and
explanations given to us, no order under the aforesaid sections has
been passed by the Company Law Board or National Company Law Tribunal
or Reserve Bank of India or any Court or any other Tribunal on the
Company.
(vii) In our opinion, the internal audit functions carried out during
the year by the Company and the firms of Chartered Accountants
appointed by the Management have been commensurate with the size of the
Company and the nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government, the maintenance of cost records has been prescribed
under section 209(1) (d) of the Companies Act, 1956 and are of the
opinion that, prima facie, the prescribed accounts and records have
been made and maintained. We have not, however, made a detailed
examination of the records with a view to determining whether they are
accurate or complete.
(ix) (a) According to the information and explanations given to us and
the records of the Company examined by us, the Company has generally
been regular in depositing undisputed statutory dues including
provident fund, investor education protection fund, employees state
insurance, income-tax, sales tax, wealth tax, service tax, customs
duty, excise duty, cess and other material statutory dues applicable to
it. We are informed that there are no undisputed statutory dues as at
the year end outstanding for a period of more than six months from the
date they became payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no disputed dues of
wealth tax, customs duty, service tax and cess matters.
According to the information and explanations given to us and the
records of the Company examined by us, the details of disputed dues not
paid of excise duty, sales tax and income-tax dues as at March 31, 2010
are as follows:
Nature
of the Nature of Forum where Amount* Amount
paid Period to which
the
statute the dues pending (Rs.
Crores) under
protest amount relates
(Rs.
Crores)
Central
Excise
Law Excise duty Appellate
authority up 3.50 - 1995-96,2001-02,
2002-03,
to commiss-
ioners level 2003-04, 2005-06
2006-07, 2007-08
2008-09
Central
Excise and 2.78 - 1997-98,2005-06,
2006-07
Service Tax
Appellate
Tribunal
Sales
Tax Laws Sales tax Appellate
authority up to 2.58 0.83 1983-84,1994-95,
commissioners
level 2000-01,2001-02
2005-06,2006-07,
2007-08
Appellate
Tribunal 0.21 0.21 2005-06,2006-07
Income
Tax Act,
1961 I ncome tax Commissioner
(Appeal) 0.56 0.56 2006-07
Income Tax
Appellate
Tribunal 0.03 0.03 2005-06
(xi) According to the records of the Company examined by us and the
information and explanations given to us, the Company, during the year,
has not defaulted in repayment of dues to financial institutions, banks
and debentureholders.
(xii) As the Company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities, paragraph 4
(xii) of the Order is not applicable.
(xv) As the Company has not given any guarantees during the year for
loans taken by others from banks or financial institutions, paragraph
4(xv) of the Order is not applicable.
(xvi) In our opinion and according to the information and explanations
given to us, the term loans taken during the year have been applied for
the purpose for which they were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that short term funds have not been used to finance long term
investments.
(xviii) As the Company has not made any preferential allotment of
shares during the year, paragraph 4 (xviii) of the Order is not
applicable.
(xix) According to information and explanations given to us, no
security has been created for debentures issued during the year since
they are unsecured.
(xx) Since, the Company has not raised any money by way of public issue
during the year, paragraph 4 (xx) of the Order is not applicable.
(xxi) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no fraud on the
Company has been noticed or reported during the year.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Registration No. 015125 N)
Jaideep Bhargava
Gurgaon Partner
Date : May 5, 2010 Membership No.: 90295