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Dredging Corporation India Ltd.

BSE: 523618 | NSE: DREDGECORP |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE506A01018 | SECTOR: Miscellaneous

BSE Live

Oct 21, 16:00
351.70 -5.65 (-1.58%)
Volume
AVERAGE VOLUME
5-Day
17,670
10-Day
18,929
30-Day
11,839
7,879
  • Prev. Close

    357.35

  • Open Price

    358.55

  • Bid Price (Qty.)

    353.55 (1)

  • Offer Price (Qty.)

    353.55 (1)

NSE Live

Oct 21, 16:01
353.50 -4.05 (-1.13%)
Volume
AVERAGE VOLUME
5-Day
106,566
10-Day
158,734
30-Day
125,252
52,725
  • Prev. Close

    357.55

  • Open Price

    358.00

  • Bid Price (Qty.)

    353.50 (23)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

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

Auditor's Report

1. Report on the Financial Statements We have audited the accompanying financial statements of Dredging Corporation of India Limited (''the Company'') which comprise the Balance Sheet as at March 31, 2014, the Statement of Profit and Loss and the Cash Flow statement for the year then ended and a summary of significant accounting policies and other explanatory information. 2. Management''s Responsibility for the Financial Statements 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 sub-section (3C) of section 211 of the Companies Act, 1956 (the Act) read with the General circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the companies Act,2013. 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. 3. Auditor''s 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 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. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by 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 modified audit opinion(Qualified opinion & Disclaimer of opinion). 4. Opinion I. Basis for Qualified Opinion: We draw attention to the Note VI to the financial statements wherein the company has not recognized impairment of long-term investments of Rs. 3,000 lacs (Last year: Rs. 3,000 lacs) in M/s Sethusamudram Corporation Limited (SCL); which is not in accordance with para 17 of AS- 13 Accounting for Investments as prescribed under sub-section 3C of the section 211 of the companies Act 1956 read with the General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act,2013[Act]. The decline in investment value (other than temporary), is envisaged with reference to Investee''s assets and results , prolonged litigation , expected cash flows, restrictions on distributions by investee or disposal by Investor etc. The above note was carried by way of Qualified Opinion for the year ended Mar31,2013 whereby it was stated that had such provision as stated in paragraph 4(a) been recognized, the profits of the company for the year ended 31st March 2013 and the reserves of the company as 31st March 2013 would have been lower by Rs. 3,000 lakhs; thereby resulting in net loss of Rs. 949.10 Lakhs for the year ending March31, 2013. Though reported profits for the current year ended March31, 2014 remains unaffected, yet Shareholders'' Funds which stood at Rs. 1,39,540.61 lacs as at that date would be lower by Rs. 3,000 lacs. Qualified Opinion: In our opinion, and to the best of our information and according to the explanations given to us, subject to the effect of our remark in paragraph 4(I) in respect of the corresponding figures for the year ended March 31, 2013 of the adjustments , if any , to the results of operations for the year ended March 31, 2013 and to the state of affairs as on that date, the said financial statements read together with the other notes thereon 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: i. in the case of the balance sheet, of the state of affairs of the Company as at March 31, 2014; ii. in the case of the statement of profit and loss, of the profit 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. II Basis of Disclaimer of Opinion: Of the company''s fixed assets which are carried in the balance sheet , the company has not provided for impairment loss on Dredger XVIII [book value / carying amount as on March 31,2014: Rs. 21,266.19 lacs] which was acquired in January 2011 but was not in use since March 2012 on account of technical defects and design flaws. Non provision of impairment loss is a departure from AS-28 Impairment of Assets as prescribed under the Act. Management was unable to provide an Independent Expert''s Technical Evaluation Report as also, a valuation Report in order to arrive at the fair value and , consequently, quantify the possible impairment loss of the dredger. As a result , we were unable to quantify the impairment loss in respect of the said asset. Disclaimer of Opinion: Because of the significance of the matters described in the basis for Disclaimer of Opinion paragraph , we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion. Accordingly, we do not express an opinion on the said matter. III. Emphasis of Matters: We draw attention to note X - Trade Receivables to the financial statements which describes the Uncertainty a to timing of recovery of debts from M/s Sethusamudram Corporation Ltd.(SCL) amounting to Rs. 11,433.18 lakhs in respect of which the company has not provided for doubtful debts for Rs. 8,413.91 lakhs on its trade receivables of Rs. 11,433.18 Lakhs (Last year : Rs. 11,878 Lakhs) due from M/s SCL - against which the company had already made a part provision of Rs. 3,019.27 lakhs in earlier years. Owing to certain recent developments in its favour, the company is confident of recovering the receivables from Government, at whose behest the contract with SCL was entered into. We do not offer a qualified opinion in respect of the above matter. 5. Report on Other Legal and Regulatory Requirements i) As required by the Companies (Auditor''s Report) Order, 2003 (the Order), as amended, issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order. ii) 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 purpose 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, Statement of Profit and Loss and Cash Flow Statement dealt with by this Report are in agreement with the books of account; d. in our opinion, subject to our remark in paragraph 4(I) &4 (II) above, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement comply with the Accounting Standards referred to in the Act; and e. the provisions of Section 274(1)(g) of the Companies Act, 1956 are not applicabe to this Company vide number 2/5/2001- CL-V: General Circular No.8/2002 dated 22-03-2002 issued by Ministry of Law, Justice and Company Affairs, Department of Company Affairs. 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) In respect of its fixed assets: (a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. (b) The Company has a regular program of physical verification of its fixed assets by which fixed assets are verified in a phased manner. Accordingly, certain fixed assets have been verified during the year and as informed to us, no material discrepancies were noticed on such verification. (c) The Company has not disposed off substantial part of the fixed assets during the year and the going concern status of the Company is not affected. (ii) In respect of its inventories: (a) Physical verification of inventory has been conducted by the management at reasonable intervals during the year; except in case of Stock of stores/spares-in-transit. (b) In respect of procedure of physical verification of Stock of stores / spares-in-transit followed by the management, the same needs substantial improvement, which should commensurate with the size of the Company and the nature of its business. (c) Except in case of stock of stores/spares-in-transit, the Company has maintained proper records of Inventory; and as informed to us, no material discrepancies were noticed on physical verification as compared to the book records. (iii) In respect of loans granted and taken to / from parties covered in the register maintained u/s 301 of the Companies Act, 1956 (the Act) (a) The company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained u/s 301 of the Act. (b) 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 Act. (iv) In respect of internal control In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for sale of goods and services. However, our test checks revealed weaknesses in the internal control system which requires that substantial improvement viz. omission of entries, lack of checks/controls to prevent omission/duplication of entries, delay in quarterly provisions etc. (v) In respect of contracts or arrangements need to be entered into a register maintained u/s 301 of the Act. According to the information and explanations given to us, there were no contracts or arrangements referred to in Section 301 of the Act that need to be entered into the Register required to be maintained in pursuance of Section 301 of the Act. In view of the above, clause 4(v)(b) is not applicable. (vi) In respect of deposits from public The Company has not accepted any deposits from the public during the year. (vii) In respect of internal audit system: In our opinion, although the company has an internal audit system commensurate with its size and nature of its business; yet the same needs to be transformed from a transaction-based audit into risk-based audit and focus on internal controls, risk assessment, risk mitigation plans etc. Further, it was observed that, Management, in majority of cases, has neither furnished replies to audit queries/findings nor has initiated any action on them. (viii) In respect of maintenance of cost records To the best of our knowledge, the Central Government has not prescribed maintenance of cost records under Section 209(1)(d) of the Act in respect of the nature of business carried on by the Company. (ix) In respect of statutory dues (a) The Company is generally regular in depositing the undisputed statutory dues including Provident Fund, Investor education and protection Fund, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Cess and any other statutory dues with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of aforementioned dues were in arrears, as at March 31, 2014 for the period of more than six months from the date they became payable. (b) As at March 31 2014, according to the records of the company and information an explanations given to us, the following are the particulars of dues on account of Service tax matters that have not been deposited on account of any dispute : Name of the Nature of dues Amount Period to which the statute (Rs. in lakhs) amount relates Various years covering the period 6243.32 2005-2010 Finance Act,1994 Service Tax 728.66 2010-2011 318.87 2005-2008 206.95 2011-2012 19.32 2007-2008 TOTAL 7517.12 Name of the Forum where Subject matters statute pending CESTAT, Bangalore Non-eligibility of Cenvat Finance Act,1994 CESTAT, Bangalore Credit in respect of Dredger CESTAT, Bangalore and spare parts but disputed CESTAT, Bangalore by Company CESTAT, Bangalore Penalty on account of delay in payment of sevice tax but disputed by Company (x) In respect of accumulated losses and cash losses The Company has no accumulated losses and has not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year. (xi) In respect of dues to financial institution / banks / debentures The company has not defaulted in repayment of dues to financial institutions or banks. (xii) In respect of loans and advances granted on the basis of security The company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. (xiii) In respect of provisions applicable to Chit fund The Company is not a chit fund or a nidhi or mutual benefit fund / society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the company. (xiv) In respect of dealing or trading in shares, securities, debentures and other investment The company has not been dealing or trading in shares, securities, debentures and other investments. Therefore, the provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the company. (xv) In respect of guarantee given for loans taken by others The company has not given any guarantee for loans taken by others from banks or financial institutions. Therefore, the provisions of clause 4(xv) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the company. (xvi) In respect of application of term loans The company has availed External Commercial Borrowings (ECB) term loans during the year for acquisition of Dredgers and the term loans were utilized for the purpose for which they were obtained. (xvii) In respect of fund used The company has not raised any funds on short-term basis or long-term basis during the year and therefore, the provisions of clause 4(xvii) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the company. (xviii) In respect of preferential allotment of shares The company has not made any preferential allotment of shares to parties and companies covered in the register maintained u/s 301 of the Act, during the year. (xix) In respect of securities created for debentures The company has not issued any debentures during the year. (xx) In respect of end use of money raised by public issues We have verified the end use of money raised by public issue as disclosed in Note to Accounts. (xxi) In respect of fraud In our opinion and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the year that causes the financial statements to be materially mis-stated. For G.R.KUMAR & Co. LLP Chartered Accountants [Firm Regd No. 004941S] ( CA N.S.S.H.Bhaskar ) Partner : M. No. 204962 Place : Visakhapatnam Date : 28th May, 2014