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DIC India Ltd.

BSE: 500089 Sector: Industrials
NSE: DICIND ISIN Code: INE303A01010
BSE 16:01 | 27 Mar 2018 DIC India Ltd
NSE 05:30 | 01 Jan 1970 DIC India Ltd
OPEN 466.20
PREVIOUS CLOSE 452.45
VOLUME 2176
52-Week high 635.00
52-Week low 432.65
P/E
Mkt Cap.(Rs cr) 426
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 466.20
CLOSE 452.45
VOLUME 2176
52-Week high 635.00
52-Week low 432.65
P/E
Mkt Cap.(Rs cr) 426
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

DIC India Ltd. (DICIND) - Auditors Report

Company auditors report

To the Members of DIC India Limited

Report on the Financial Statements

1. We have audited the accompanying financial statements of DIC India Limited("theCompany") which comprise the Balance Sheet as at December 31 2015 the Statement ofProfit and Loss the Cash Flow Statement for the year then ended and a summary of thesignificant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

2. The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements to give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditors' Responsibility

3. Our responsibility is to express an opinion on these financial statements based onour audit.

4. We have taken into account the provisions of the Act and the Rules made thereunderincluding the accounting standards and matters which are required to be included in theaudit report.

5. We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10)of the Act and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India. Those Standards and pronouncements requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditors' judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.

7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

8. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as atDecember 31 2015 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

9. As required by 'The Companies (Auditor's Report) Order 2015' issued by the CentralGovernment of India in terms of Sub-section (11) of Section 143 of the Act (hereinafterreferred to as the "Order") and on the basis of such checks of the books andrecords of the Company as we considered appropriate and according to the information andexplanations given to us we give in the Annexure a statement on the matters specified inparagraphs 3 and 4 of the Order.

10. As required by Section 143 (3) of the Act we report that:

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books except that the back-upof the books of account and other books and papers maintained in electronic mode has notbeen maintained on servers physically located in India.

(c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid financial statements comply with the AccountingStandards 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 onDecember 31 2015 taken on record by the Board of Directors none of the Directors aredisqualified as on December 31 2015 from being appointed as a Director in terms ofSection 164 (2) of the Act.

(f) With respect to the maintenance of accounts and other matters connected therewithreference is made to our comment in Paragraph 10 (b) above that the back up of the booksof account and other books and papers maintained in electronic mode has not beenmaintained on servers physically located in India.

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

i. The Company has disclosed the impact if any of pending litigations as at December31 2015 on its financial position in its financial statements - Refer Note 26(b) to thefinancial statements;

ii. There were no material foreseeable losses on the Company's long-term contractsincluding derivative contracts as at December 31 2015.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the year ended December31 2015.

For Lovelock & Lewes
Firm Registration Number 301056E
Chartered Accountants
Pinaki Chowdhury
Kolkata Partner
February 5 2016 Membership Number 57572

ANNEXURE TO INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 9 of the Independent Auditors' Report of even date to themembers of DIC India

Limited on the financial statements as of and for the year ended December 31 2015

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

(b) The fixed assets are physically verified by the Management according to a phasedprogramme designed to cover all the items over a period of three years which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. Pursuant to the programme a portion of the fixed assets has been physicallyverified by the Management during the year and no material discrepancies have been noticedon such verification.

ii. (a) The inventory (excluding stocks with third parties)has been physically verifiedby the Management during the year. In respect of inventory lying with third parties thesehave substantially been confirmed by them. In our opinion the frequency of verificationis reasonable.

(b) In our opinion the procedures of physical verification of inventory followed bythe Management are reasonable and adequate in relation to the size of the Company and thenature of its business.

(c) On the basis of our examination of the inventory records in our opinion theCompany is maintaining proper records of inventory. The discrepancies noticed on physicalverification of inventory as compared to book records were not material.

iii. The Company has not granted any loans secured or unsecured to companies firmsor other parties covered in the register maintained under Section 189 of the Act.Therefore the provisions of Clause 3(iii) (iii)(a) and (iii)(b) of the said Order arenot applicable to the Company.

iv. In our opinion and according to the information and explanations given to usthere is an adequate internal control system commensurate with the size of the Company andthe nature of its business for the purchase of inventory and fixed assets and for the saleof goods and services. Further on the basis of our examination of the books and recordsof the Company and according to the information and explanations given to us we haveneither come across nor have been informed of any continuing failure to correct majorweaknesses in the aforesaid internal control system.

v. The Company has not accepted any deposits from the public within the meaning ofSections 73 74 75 and 76 of the Act and the rules framed there under to the extentnotified.

vi. We have broadly reviewed the books of account maintained by the Company in respectof products where pursuant to the Rules made by the Central Government of India themaintenance of cost records has been specified under Sub-section (1) of Section 148 of theAct and are of the opinion that prima facie the prescribed accounts and recordshave been made and maintained. We have not however made a detailed examination of therecords 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 ofthe Company examined by us in our opinion the Company is generally regular in depositingundisputed statutory dues in respect of income tax and sales tax though there has been aslight delay in a few cases and is regular in depositing undisputed statutory duesincluding provident fund employees' state insurance wealth tax service tax duty ofcustoms duty of excise value added tax cess and other material statutory dues asapplicable with the appropriate authorities.

(b) According to the information and explanations given to us and the records of theCompany examined by us there are no dues of wealth-tax and cess as applicable whichhave not been deposited on account of any dispute. The particulars of dues of income taxsales tax service tax duty of customs duty of excise and value added tax as at December31 2015 which have not been deposited on account of a dispute are as follows:

Name of the statute Nature of dues Amount Period to which the amount relates Forum where the dispute is pending
(Rs. in Million)
Income-tax Act 1961 Income Tax 9.94 2009-10 and 2010-11 Commissioner of Income Tax (Appeals)
Central Sales Tax Act 1956 Central Sales Tax 7.03 2005-06 and 2010-11 Appellate and Revisional Board
0.68 2012-13 Additional Commissioner of Sales Tax
0.05 2003-04 Deputy Commissioner
West Bengal Value Added Tax Act 2003 Value Added Tax 3.03 2005-06 Appellate and Revisional Board
6.78 2012-13 Additional Commissioner of Sales Tax
Uttar Pradesh Value Added Tax Act 2008 Value Added Tax 1.30 2008-09 and 2009-10 Commercial Taxes Tribunal
1.14 2011-12 2012-13 and 2013-14 Additional Commissioner Grade 2 (Appeals)
Delhi Value Added Tax Act 2004 Value Added Tax 3.00 2009-10 Appellate Tribunal
Central Excise Act 1944 Excise Duty 18.86 1994-95 to 1996-97 2000-01 to 2005-06 Customs Excise & Service Tax Appellate Tribunal
14.33 1993-94 1994-95 1997-98 2005-06 to 2010-11 Commissioner (Appeals)
Finance Act 1994 Service Tax 4.17 2004-05 to 2007-08 Customs Excise & Service Tax Appellate Tribunal
3.30 2008-09 to 2012-13 Appeal being field with Customs Excise & Service Tax Appellate Tribunal
34.62 2001-02 to 2011-12 Commissioner (Appeals)
Customs Act 1962 Customs Duty 3.43 1999-2000 Hon'ble High Court at Calcutta
25.01 2005-06 2009-10 to 2010-11 Customs Excise & Service Tax Appellate Tribunal

c) The amount required to be transferred to Investor Education and Protection Fund hasbeen transferred within the stipulated time in accordance with the provisions of theCompanies Act 1956 and the rules made thereunder.

viii. The Company has no accumulated losses as at the end of the financial year and ithas not incurred any cash losses in the financial year ended on that date. The Company hadincurred cash losses in the immediately preceding financial year.

ix. According to the records of the Company examined by us and the information andexplanation given to us the Company has not defaulted in repayment of dues to anyfinancial institution or bank or debenture holders as applicable as at the balance sheetdate.

x. In our opinion and according to the information and explanations given to us theCompany has not given any guarantee for loans taken by others from banks or financialinstitutions during the year. Accordingly the provisions of Clause 3(x) of the Order arenot applicable to the Company.

xi. In our opinion and according to the information and explanations given to us theterm loans have been applied on an overall basis for the purposes for which they wereobtained.

xii. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud on or by the Company noticed or reported during the year norhave we been informed of any such case by the Management.

For Lovelock & Lewes
Firm Registration Number 301056E
Chartered Accountants
Pinaki Chowdhury
Kolkata Partner
February 5 2016 Membership Number 57572