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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

We have audited the accompanying financial statements of Dredging Corporation of India 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 significant accounting policies and other explanatory information. 2. 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 the 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 the appropriate accounting policies; making judgments and estimates that are reasonable and prudent; design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accenting 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. 3. 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 matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under. 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 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 but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial control 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 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. 4. Opinion I. Basis for Qualified Opinion: The Company had not complied with the provisions of Section 135, 149 (1),149(4) 177 and 178 of the Companies Act, 2013. At this stage, we are unable to comment on the consequential impact of non-compliance of these provisions, if any. Qualified Opinion: In our opinion and to the best of our information and according to the explanations given to us, except for the possible effects of the matter described in the Basis for Qualified opinion paragraph, 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 Profit and its cash flows for the year ended on that date. EMPHASIS OF MATTERS: We draw attention to the following matters in the Notes to the financial statements: a) We draw attention to the Note No. VI of the financial statements, where in the Company has made investments in Equity shares amounting to Rs.3,000 lakhs in Sethusamudram Corporation Limited (SCL), a special purpose vehicle was incorporated on 06.1.2004 for developing the Sethusamudram Channel Project. The dredging work at Palk Strait was suspended from 16- 07-2009. The management does not consider any diminution in the value of the investment and the same has been carried at cost. With regard to the previous statutory auditors qualification in this respect on the accounts for the financial year 2012-13, National Stock Exchange of India Ltd. (NSE) vide its letter No. NSE/LIST/8500 dated 26/12/2014 advised the Company to restate the financial statements for FY 2012-13. In response Company has filed review petition dated 21/01/ 2015 to the NSE to review its decision. We were informed that, SEBI has given personal hearing on the review petition filed by the DCI and decision from the SEBI is awaited, hence the provision for diminution on investment is not made. b) Trade Receivables includes, Rs.11,433.18 lakhs receivable from M/s. Sethusamudram Corporation Ltd. (SCL) which is pending for more than 3 years. Out of the above, Company has provided for doubtful debts to the extent of Rs.3019.27 lakhs. The Company is of the view that an amount of Rs.30897.00 lakhs will be reimbursed by GOI (at whose behest the contract with SCL was entered) to DCI to compensate the actual expenditure incurred on this project. In view of this, a provision for doubtful debts is not made in respect of receivables in this regard amounting to Rs.8413.91 lakhs. c) DCI acquired Dredge XVIII from Mazagon Dock Limited, Mumbai (MDL) in Jan 2011 with performance Bank Guarantee of Rs.27 cr. Since there were major guarantee defects and MDL was failed to attend the performance defects, BG of Rs.27 cr. has been invoked by the DCI. DCI had entered into new agreement with L&T for Rs.30 cr. to remedy the manufacturing defects and Rs.20 cr. has been capitalized during the current financial year. d) The balance of sundry debtors, creditors, loans and advances, other receivables and other payables being subject to confirmation and reconciliation resulting in the balances as per books of account not verified by us. 5. Report on Other Legal and Regulatory Requirements i) As required by the Companies (Auditor''s Report) Order, 2015 (the Order), issued by the Central Government in terms 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. ii) 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 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 it 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, the afore said 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 representation received from the directors as on 31 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 according to the explanations given to us: * The company has disclosed the impact of pending litigations on its financial position in its financial statements- refer note XVI 5b-5e to the financial statements; * The company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses. * There are no amounts which are required to be transferred to the Investor Education and Protection Fund by the company. ANNEXURE TO THE AUDITORS'' REPORT (Referred to in Paragraph 1under Report on other Legal and Regulatory requirements section 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 fixed assets were physically verified during the year by the management in accordance with a regular program of verification which in our opinion, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verification. (ii) In respect of its inventory: (a) Records evidencing the physical verification of inventories are not provided to us, hence, we are not able to comment on physical verification of inventories. (iii) The company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained u/s 189 of the Act. Accordingly, the provisions of Clause 3 (iii) of the Order are not applicable to the Company. (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 the purchase of inventory and fixed assets and for 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) The Company has not accepted any deposits from the public. (vi) To the best of our knowledge, the Central Government has not prescribed maintenance of the cost records under Section 148 (1) of the Act in respect of the nature of business carried on by the Company. (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, Income Tax, Service Tax, Duty of Customs,Value Added Tax, Cess and other material statutory dues applicable to it with the appropriate authorities. (b) According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Income Tax, Service Tax, Duty of Customs,Value Added Tax, Cess and other material statutory dues in arrear, 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 provided by the management, there are dues in respect of Service Tax given below, which have not been deposited on account of dispute : Name of the Nature of Amount Period to which statute dues (Rs,in lakhs) relates to 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 Name of the Pending before Remarks CESTAT, Bangalore Non-eligibility of Cenvat Finance Act,1994 Service Tax 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 service tax but disputed by Company (d) We are informed that there are no amounts which are required to be transferred to Investor Education and Protection Fund in accordance with the relevant provisions of the Companies Act 1956. Accordingly, the provisions of Clause 3 (vii) (c) of the Order are not applicable to the Company. (viii) The Company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the current and 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 Banks, debenture holders and financial institutions. (x) According to the information and explanations given to us, the company has not given guarantees for loans taken by others from Banks and financial institutions. (xi) In our opinion, and according to the information and explanations given to us, no fresh term loans have been obtained by the Company, accordingly, the provisions of Clause 3 (xi) of the Order are not applicable to the Company. (xii) 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 Tukaram & Co Chartered Accountants [Firm Regn No. 004436S] -sd- Place : Hyderabad (P.MURALI ) Date : 26.05.2015 Partner : Membership No. 221625