| We have audited the accompanying Financial Statements of Dalmia
Refractories Limited ("the Company") which comprise the Balance Sheet
as at 31stMarch, 2015, and the Statement of Profit and Loss, the Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the 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 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 fraud 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 controls, that
were operating effectively for ensuring the accuracy and completeness
of the accounting records relevant to the preparation and presentation
of 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 financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and the 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 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 financial statement that gives 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 the 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 financial
statements.
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, of the state of affairs of the Company as
at 31st March, 2015, and its loss and its cashflows for the year ended
on that date.
Report On Other Legal and Regulatory Requirements
As required by the Companies (Auditor's 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 paragraph 3 and 4 of the Order;
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 accounts 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 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 written representations received from the
directors as on 31st March 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March 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 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 accordingly to the explanations given to us;
i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 1.2 to the
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.
Re: Dalmia Refractories Limited (Formerly known as Shri Nataraj
Ceramic and Chemical Industries Limited)
Annexure to Independent Auditors' Report
Referred to in Paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our Report of even date.
(i) (a) The Company has maintained reasonable records showing full
particulars including quantitative details and situation of fixed
assets.
(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 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 programme, a portion of the fixed assets has been
physically verified by the management during the year and no material
discrepancies were noticed on such verification.
(ii) (a) The Management has conducted physical verification of
inventory at reasonable intervals during the year, except stocks in
transit which have been verified with reference to confirmations
and/or subsequent receipt of material. In our opinion, the frequency
of such verification is reasonable.
(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 are 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 is maintaining proper records of inventories.
As explained to us, the discrepancies noticed on verification between
the physical stocks and the book records were not material and have
been properly dealt with in the books of account.
(iii) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under section 189 of the Act. Accordingly clauses 3 (iii) (a) & (b) of
the Order are not applicable.
(iv) In our opinion and according to the information and explanations
given to us during the course of audit, there are reasonable internal
control systems commensurate with size of the Company and the nature
of its business with regard to purchase of inventory and fixed assets
and with regard to the sale of goods and services. Further, on the
basis of our examination of the books and records of the Company
carried out in accordance with the generally accepted auditing
practices in India, we have neither come across nor have been informed
of any instance of a continuing failure to correct major weaknesses in
the aforesaid internal control systems.
(v) The Company has not accepted any deposits in terms of Sections 73
to 76 of the Act and/or directives issued by the Reserve Bank of India
or any other relevant provisions of the Act and the Rules framed
thereunder.
(vi) We have broadly reviewed the cost records maintained by the
company pursuant to 'The Companies (Cost Records and Audit) Rules,
2014' as notified by notification no. G.S.R. 425(E) dated 30th June,
2014 of Ministry of Corporate Affairs, Government of India under
section 148 of the Companies Act, 2013. We are of the opinion that
prima facie the prescribed records have been made and maintained by
the company. We are, however, not required to make a detailed
examination of such records.
(vii) (a) According to the information and explanations given to us
and the records of the Company, examined by us, in our opinion, the
Company is generally regular in depositing undisputed statutory dues
in respect of provident fund, employees' state insurance, income tax,
sales tax, wealth tax, service tax, custom duty, excise duty, Cess and
other material statutory dues, as applicable, with the appropriate
authorities. Further, there were no undisputed amount outstanding at
the year-end 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 dues of income tax,
value added tax, sales tax, custom duty, wealth tax, service tax,
excise duty and cess which have not been deposited on account of any
dispute, except the following in respect of disputed Excise duty and
Service tax:
(c) The Company does not have any amount which is required to be
transferred to Investor Education and Protection Fund in accordance
with relevant provisions of Companies Act, 1956 and rules made
thereunder.
(viii) The Company does not have any accumulated losses as at the
close of the financial year. The Company has incurred cash losses
during the financial year 2014-15, covered by our audit, while there
were no such cash losses in the immediately preceding financial year.
(ix) According to the records of the Company examined by us and the
information and explanations given to us, in our opinion, the Company
has not defaulted in repayment of dues to any financial institutions,
banks or debenture holders.
(x) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
(xi) As per the information and explanations given to us and on the
basis of our examination of the records, in our opinion, the term
loans taken by the Company have been applied for the purpose for which
the said loans were obtained, whenever such end use has been
stipulated by the lender(s).
(xii) 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, we have neither come across any instance
of fraud on or by the Company, noticed and reported during the year,
nor have we been informed of such case by the management.
For S.S. KOTHARI MEHTA & CO.
Chartered Accountants
Firm Registration No.000756N
KAMAL KISHORE
Place: New Delhi PARTNER
Date: May 21,2015 Membership No.078017 | 