DREDGING CORPORATION OF INDIA LIMITED
ANNUAL REPORT 2011-2012
AUDITORS` REPORT
To
The Members,
DREDGING CORPORATION OF INDIA LIMITED,
VISAKHAPATNAM.
1. We have audited the attached Balance Sheet of DREDGING CORPORATION OF
INDIA LIMITED, VISAKHAPATNAM as at 31st March, 2012 and also the Statement
of Profit and Loss of the Company for the year ended on that date annexed
thereto and the Cash Flow Statement for the year ended on that date. These
financial statements are the responsibility of the Company`s 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 misstatement. An audit includes assessing the
accounting principles used and significant estimates made by the
management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis of our
opinion.
3. As required by the Companies (Auditor`s Report), 2003 issued by the
Central Government of India in terms of sub-section (4A) of Section 227 of
the Companies Act, 1956, we enclose in the Annexure hereto a statement on
the matters specified in paragraph 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(i) 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.
(ii) In our opinion, the Company has kept proper books of account as
required by law so far as appears from our examination of those books.
(iii) 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.
(iv) In our opinion, the Balance Sheet, Statement of Profit and Loss 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.
(v) The provisions of Section 274(1)(g) of the Companies Act, 1956 are not
applicable 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.
(vi) In our opinion and to the best of our information and according to the
explanations given to us, the said accounts read together with the
Accounting Policies and Notes on 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.
(a) In the case of Balance Sheet, of the state of affairs of the Company as
at 31st March, 2012;
(b) In the case of the Statement of Profit and Loss, of the profit of the
Company for the year ended on that date; and
(c) In the case of Cash Flow Statement, of the cash flows of the Company
for the year ended on that date.
For G.R. Kumar & Co.
Chartered Accountants
Firm Reg No. 004941S
-sd-
(CA P. VIKAM)
Place: New Delhi Partner
Date : 28/05/2012 Membership No. 216542
ANNEXURE TO AUDITORS` REPORT:
(Referred to in paragraph (3) of our Report of even date)
(i) (a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) All the fixed assets have been physically verified by the management
during the year in a phased manner. 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) (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
spares/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 spares/spares-in-ransit, 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) (a) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained under
section 301 of the Companies Act, 1956.
(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 Companies Act, 1956.
(iv) 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.
(v) According to the information and explanations given to us, there were
no contracts or arrangements referred to in Section 301 of Companies Act,
1956 that need to be entered into the Register required to be maintained in
pursuance of Section 301 of the Companies Act, 1956.
In view of the above, Clause 4(v)(b) is not applicable.
(vi) The Company has not accepted any deposits from the public during the
year.
(vii) 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 into risk-based audit and focus on internal controls,
risk assessment etc.
(viii) The Central Government has not prescribed maintenance of cost
records under Section 209(1)(d) of the Companies Act, 1956 in respect of
the nature of business carried on by the Company.
(ix) (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 31st March, 2012
for the period of more than six months from the date they became payable.
(b) According to information and explanations given to us, there were no
statutory dues that they have not been deposited on account of dispute.
(x) 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) The Company has not defaulted in repayment of dues to financial
institutions or banks. As there are no debentures, the question of
repayment does not arise.
(xii) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) The Company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore, clause 4(xiii) of the Companies (Auditor`s Report)
Order, 2003 is not applicable to the company.
(xiv) The Company has not been dealing or trading in shares, securities,
debentures and other investments. Therefore, clause 4(xiv) of the Companies
(Auditor`s Report) Order, 2003 is not applicable to the Company.
(xv) The Company has not given any guarantee for loans taken by others from
banks or financial institutions. Therefore, clause 4(xv) of the Companies
(Auditor`s Report) Order, 2003 is not applicable to the Company.
(xvi) The Company has availed External Commercial Borrowings (ECB),Term
Loans during the year for acquisition of Dredgers and the term loan is
utilised for the pupose for which it was obtained.
(xvii) The Company has not raised any funds on short-term basis or long-
term basis during the year and therefore, clause 4(xvii) of the Companies
(Auditor`s Report) Order, 2003 is not applicable.
(xviii) The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section 301
of the Companies Act, 1956.
(xix) The Company has not issued debentures during the year and therefore,
the clause 4(xix) of the Companies (Auditor`s Report) Order, 2003 is not
applicable.
(xx) The Company has not raised money by public issue during the year and
therefore, the clause 4 (xx) of the Companies (Auditor`s Report) Order,
2003 is not applicable.
(xxi) 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
misstated.
For G.R. Kumar & Co.
Chartered Accountants
Firm Reg No. 004941S
-sd-
(CA P. VIKAM)
Place: New Delhi Partner
Date : 28/05/2012 Membership No. 216542
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 619
(4) OF THE COMPANIES ACT, 1956 ON THE ACCOUNTS OF DREDGING CORPORATION OF
INDIA LIMITED, VISAKHAPATNAM, FOR THE YEAR ENDED 31st MARCH, 2012.
The preparation of financial statements of Dredging Corporation of India
Limited, Visakhapatnam for the year ended 31st March 2012 in accordance
with the financial reporting framework prescribed under the Companies Act,
1956 is the responsibility of the management of the company. The Statutory
Auditor appointed by the Comptroller and Auditor General of India under
Section 619 (2) of the Companies Act, 1956 is responsible for expressing
opinion on these financial statements under Section 227 of the Companies
Act, 1956 based on the independent audit in accordance with the auditing
and assurance standards prescribed by their professional body, the
Institute of Chartered Accountants of India. This is stated to have been
done by them vide their Audit Report dated 28th May, 2012.
I, on the behalf of the Comptroller and Auditor General of India have
conducted a supplementary audit under section 619(3)(b) of the Companies
Act, 1956 of the financial statements of Dredging Corporation of India
Limited, Visakhapatnam for the year ended 31st March 2012. This
supplementary audit has been carried out independently without access to th
working papers of Statutory Auditors and is limited primarily to inquiries
of the Statutory Auditor and company personnel and a selective examination
of some of the accounting records. On the basis of my audit, nothing
significant has come to my knowledge which would give raise to any comment
upon or supplement to Statutory Auditor`s report under section 619(4) of
the Companies Act, 1956.
For and on behalf of the
Comptroller and Auditor General of India
-sd-
(Y.N THAKARE)
Principal Director of Commercial Audit
and Ex-officio Member, Audit Board,
Hyderabad.
Place: HYDERABAD
Dated: 7-6-12. |