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DCM Shriram Ltd.

BSE: 523367 | NSE: DCMSHRIRAM |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE499A01024 | SECTOR: Diversified

BSE Live

Jan 19, 16:00
1098.40 85.35 (8.43%)
Volume
AVERAGE VOLUME
5-Day
22,376
10-Day
14,506
30-Day
7,223
78,427
  • Prev. Close

    1013.05

  • Open Price

    1101.00

  • Bid Price (Qty.)

    1085.00 (325)

  • Offer Price (Qty.)

    1095.00 (187)

NSE Live

Jan 19, 15:59
1094.75 82.40 (8.14%)
Volume
AVERAGE VOLUME
5-Day
350,241
10-Day
201,980
30-Day
98,927
1,361,288
  • Prev. Close

    1012.35

  • Open Price

    1105.00

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    1094.75 (471)

Annual Report

For Year :
2018 2017 2016 2015 2014 2013 2012 2011 2010

Auditor's Report

1. We have audited the attached balance sheet of DCM Shriram Consolidated Limited as at March 31, 2008, the profit and loss account and also the cash flow statement of the Company for the year ended on that date 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 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 disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by 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 issued by the Central Government of India 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 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 appears from our examination of those books; c) the balance sheet, profit and loss account and cash flow statement dealt with by this report are in agreement with the books of account; d) in our opinion, the balance sheet, profit and loss account and cash flow statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956; e) on the basis of written representations received from the directors as on March 31,2008 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on March 31, 2008 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956; f) without qualifying our opinion, we draw attention to note 20 of schedule 13 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 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, 2008; 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 for the year ended on that date. ANNEXURE Annexure referred to in paragraph 3 of Auditors Report to the Members of DCM Shriram Consolidated Limited on the accounts for the year ended March 31, 2008. (i) (a) The Company is maintaining 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, most 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) In our opinion and according to the information and explanations given to us, a substantial part of fixed assets has not been disposed off by the Company during the year. (ii) (a) During the year, the inventories have been physically verified by the management except for inventory lying with third parties at the end of the year for which confirmations have been obtained in most of the cases. In our opinion, the frequency of the verification is reasonable. (b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of stocks followed by the management are 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. 127.46 crores granted during the year to three wholly owned subsidiaries covered in the register maintained under Section 301 of the Companies Act, 1956. These loans includes interest free loan aggregating to Rs. 57.25 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. The maximum amount due during the year of above loans was Rs. 93.94 crores and the year end balance of loans so granted was Rs. 64.47 crores. (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, the unsecured loan taken by the Company from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956, is by way of fixed deposit of Rs 0.07 crore (maximum amount outstanding during the year Rs 0.07 crore) from a director, 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 are adequate internal control system commensurate with the size of the Company and the nature of its business with regard to the purchase of inventories and fixed assets and with regard to sale of goods. There are no sale of services. Further, on the basis of our examination and according to the information and explanations given to us, we have neither come across nor have been informed of any instance of major weaknesses in the aforesaid internal control system. (v) According to the information and explanations given to us, during the year, there were no transactions that were required to be entered in the register maintained in pursuance of section 301 of the Companies Act, 1956 ( The Act). For this purpose the Company has taken the view that the transactions which are subjected to the provisions of section 299(6) of the Act are not required to be entered in this register. In any case, notwithstanding the view of section 299(6) of the Act taken by the Company, in respect of certain transactions, exceeding the value of Rs. 5 lacs in respect of any party during the year have been made at prices which are reasonable having regard to 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 Company has an internal audit system commensurate with the size and 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, 2008 are as follows: Nature of the Nature of statute the dues Central Excise Law Excise duty Sales Tax Laws Sales tax Income Tax Act, 1961 Income tax Forum where Amount* pending (Rs.Crores) Appellate authority up 2.16 to commissioners level Central Excise and 0.11 Service Ta x Appellate Tribunal Appellate authority up 2.57 to commissioners level Sales Ta x Tribunal 1.51 Commissioner (Appeal) 49.79 Amount paid Period to which the under protest amount relates (Rs. Crores) - 1995-96, 2001-02, 2003-04, 2005-06, 2006-07 0.06 1997-98 0.80 1983-84, 1994-95, 1995-96 to 2000-01 - 1990-91, 1991-92, 1992-93, 1995-96 49.79 2002-03, 2003-04, 2004-05 The following matters, which have been excluded from the table above, have been decided in favour of the Company but the department has preferred appeals at higher levels. The details are given below: Nature of the statute Nature of the dues Forum where pending Income Ta x Act, 1961 Income Tax High Court Amount (Rs. Crores) Period to which the amount relates 9.85 1996-97, 1997-98, 1998-99 (x) The Company does not have accumulated losses at the end of the financial year March 31, 2008. Further, the Company has not incurred any cash losses during the financial year ended March 31, 2008 and in the immediately preceding financial year ended March 31, 2007. (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 or debenture holders. (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. (xiii) The provisions of any special statute as specified under paragraph 4 (xiii) of the Order are not applicable to the Company. (xiv) As the Company is not dealing or trading in shares, securities, debentures and other investments, paragraph 4 (xiv) 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) As at April 1, 2007, the Company had short term loans amounting to Rs. 212.71 crores invested in fixed assets. According to the information and explanations given to us and on an overall examination of the balance sheet of the Company, short term loans so utilised have since been refinanced during the year with funds from long term sources. As such we report that as at year end, short term funds have not been used to finance long term investment. (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) Based upon the audit procedures performed and information and explanations given by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit for the year ended March 31, 2008. For A. F. FERGUSON & CO. Chartered Accountants Jitendra Agarwal New Delhi Partner Date : May 13, 2008 Membership No.: 87104