TO THE MEMBERS
OF
DEKSON CASTINGS LIMITED
Report on the Audit of the Financial Statements - Opinion
We have audited the financial statements of Dekson Castings Limited ("the
Company"), which comprise the balance sheet as at 31st March, 2023, and the statement
of Profit and Loss and statement of cash flows for the year then ended, and notes to the
financial statements, including a summary of significant accounting policies and other
explanatory Information.
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 2023, its profit and loss accounts and its cash flows for the year ended on that
date
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Companies Act, 2013 Our responsibilities under those
Standards are further described in toe Auditors Responsibilities for the Audit of the
Financial Statements section of our report. We are independent of the Company in
accordance with the Code of Ethics issued by toe institute of Chartered Accountants of
India together with the ethical requirements that are relevant to our audit of toe
financial statements under toe provisions of the Companies Act, 2013 and toe Rules
thereunder, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Information other than the financial statements and auditors report thereon
The Companys board of directors is responsible for the preparation of the other
information. The other information comprises the information included in the Boards
Report including Annexures to Boards Report but does not include the financial statements
and our auditors report thereon.
Our opinion on the financial statements does not cover the other information and we do
not express any form of assurance conclusion thereon. in connection with our audit of the
financial statements, our responsibility is to read the other information and. in doing
so. consider whether the other information is materially inconsistent with the financial
statements or our knowledge obtained during the course of our audit or otherwise appears
to be materially misstated.
Emphasis of Matter
Non-Disclosure of certain information in the financial statements as required by
Schedule-Ill of the Companies Act, 2013:
1 Information regarding dues/payments/interest to Micro. Small & Medium Enterprises
i.e bifurcation of MSME & Non-MSME, if any, include in Trade Payable - Refer Note No.
7 & 7A of Financial Statements is as per the data provided by the management.
Our Opinion is not modified in respect of above matters
Responsibilities of Management and Those Charged with Governance for the Standalone
Financial Statements
The Companys 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. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding of the
assets of the Company and for preventing and detecting frauds 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 financial controls, that were operating effectively for ensuring
the accuracy and completeness of the accounting 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 amor.
In preparing the financial statements, management is responsible for assessing the
Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so
Those Board of Directors are also responsible for overseeing the Companys financial
reporting process. Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to
fraud or error, and to issue an auditors report that includes our opinion Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with As will always detect a material misstatement when it exists,
Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of these financial statements.
As pari of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also;
• Identify and assess the risks of material misstatement of the financial
statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of managements use of the going concern basis
of accounting and, based on the audit evidence obtained whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the financial statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditors
report. However, future events or conditions may cause the Company to cease to continue as
a going concern
• Evaluate the overall presentation, structure and content of the financial
statements, including the disclosures, and whether the financial statements represent the
underlying transactions and events in a manner that achieves fair presentation
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the financial statements of the
current period and are therefore the key audit matters We describe these matters in our
auditors report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication
Report on Other Legal and Regulatory Requirements
1 As required by the Companies {Auditors Report) Order, 2016 ("the Order"),
issued by the Central Government of India in terms of sub-section (11) of section 143 of
the Companies Act, 2013, we give in the Annexure A, a statement on the matters specified
in paragraphs 3 and 4 of the Order, to the extent applicable
2 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 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, 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 the written representations received from the directors as on 31st
March, 2023 taken on record by the Board of Directors, none of the directors is
disqualified as on 31 st March, 2023 from being appointed as a director in terms of
Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate Report In "Annexure B,f.
g) With respect to the other matters to be included in the Auditors report in
accordance with the requirements of Sec 107(16) of the Act as amended, we report that
Section 197 is not applicable to a private company Hence reporting as per Section 197(16)
is not required.
h) With respect to the other matters to be included in the Auditors 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:
i The Company does not have any pending litigations which would impact its financial
position.
ii The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses
iii. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company
Annexure to the Independent Auditors Report of even date To
The Members
Dekson Castings Limited,
On the financial statements for the year ended 31st March,2023
Based on the audit procedures performed for the purpose of reporting a true and fair
view on the financial statements of the Company and taking into consideration the
information and explanations given to us and the books of account and other records
examined by us in the normal course of audit We hereby report that;
(i) (A)
(A) The Company has maintained proper records showing full particulars, including
quantitative details and situation of Property, Plant and Equipment.
(B) The Company has maintained proper records showing full particulars of Intangible
Assets.
(b) The major Property, Plant and Equipment of the company have been physically
verified by the management at reasonable intervals during the year and no material
discrepancies were noticed on such verification.
(c) According to the information and explanation given to us, the title deeds of the
Immovable properties are held in the name of the company.
(d) The Company has not revalued its Property, Plant and Equipment or intangible assets
or both during the year.
(e) According to the information and explanation given to us, no proceedings have been
initiated or are pending against the company for holding any benami property under the
Benami Transactions (Prohibition) Act. 1988 (45 of 1988) and rules made thereunder during
the year.
(ii) (a) The management has conducted physical verification of inventory at reasonable
intervals during the year, in our opinion, the coverage and procedure of such verification
by the management is appropriate. As informed to us, any discrepancies of 10% or more in
the aggregate for each class of inventory were not noticed on such verification However,
in respect of certain items, like Aluminium turning scrap and alumimiumdross the
inventories were verified by the management on a visual estimation basis which has been
relied upon by us Recovery percentage of Aluminium from dross is as estimated by the
management.
(b) The company has been sanctioned working capital limits of Rs 8 Crores by Saraswat
Co-op Bank Ltd , Cidco Aurangabad Branch , on the basis of security of current assets. The
Company files monthly stock - debt statements to the bank The information filed in these
statements generally matches with the books of accounts
(iii) The company has not granted any loans, secured or unsecured to company, firms or
other parties covered in the register maintained u/s 189 of the Companies Act,
2013.However advances (Rent Deposits) against properties of Directors totaling to Rs.
29,04,000/- Lakhs is given, It is informed by the company that this deposit rs given to
Directors for Repairs & Maintenance of the property rented to the company (a) No
receipt of the principal amount and interest against these loans has been received by the
company during the financial year (b) The company plans to recover this amount over the
period of three years through adjustment of rent payable
In our opinion
The terms and conditions of the grant of such loans are not prejudicial to the
companys interest
- As per the information provided by the management these advances will be recovered
within 3 years.
(iv) The Company has during the year, not made investments in, provided any guarantee
or security or granted any loans or advances in the nature of loans, secured or unsecured,
to companies, firms. Limited Liability Partnerships or any other parties. Accordingly, the
provisions of clauses 3(iii) of the Order are not applicable.
(v) The Company has not accepted any deposits or amounts which are deemed to be
deposits under the directives of the Reserve Bank of India and the provisions of Sections
73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed
thereunder, where applicable. Accordingly, the provisions of clause 3(v) of the Order are
not applicable The company has accepted the unsecured loans of Rs. 1,29,86,156/- from its
directors as follows:
| Vikram Ashok Dekate |
Rs 66,87,231/- |
| Chetan Ashok Dekate |
Rs 62,98,925/- |
| Total |
Rs. 1,29,86,156/- |
The above unsecured loans are not treated as deposits as per the Companies (Acceptance
of Deposits) Rules 2014 as these loans are obtained from the directors of the company
Further the company has obtained a declaration from the directors specifying that these
amount is not being given out of funds acquired by them from borrowings or accepting loans
or deposits from others
(vi) To the best of our knowledge and belief, the Central Government has not specified
maintenance of cost records under sub-section (1) of Section 148 of the Act, in respect of
Companys products/ services. Accordingly, the provisions of clause 3(vi) of the Order are
not applicable.
(vii) (a) The Company is regular in depositing undisputed statutory dues including
Goods and Services Tax, provident fund, employees state insurance, income-tax, sales,
duty of customs and any other statutory dues, as applicable, with the appropriate
authorities Further, no undisputed amounts payable in respect thereof were outstanding at
the year- end for a period of more than six months from the date they became payable (b)
There are no dues in respect of Goods and Services Tax, provident fund,employees state
insurance, income-tax. duty of customs, and any other statutory dues.
(viii) (a) In our opinion, the company has not defaulted in repayment of loans or other
borrowings or in the payment of interest thereon to any lender during the year;
(b) Company is not declared wilful defaulter by any bank or financial institution or
other lender;
(c) According to the information and explanation given to us, term loans were applied
for the purpose for which the loans were obtained;
(d) According to the information and explanation given to us, funds raised on short
term basis have not been utilised for long term purposes.
(e) According to the information and explanation given to us. the company has not taken
any funds from any entity or person on account of or to meet the obligations of its
subsidiaries, associates or joint ventures;
(f) According to the information and explanation given to us. the company has not
raised loans during the year on the pledge of securities held in its subsidiaries, joint
ventures or associate companies;
(ix) (a) The Company has not raised moneys by way of initial public offer or further
public offer (including debt instruments) during the year;
(b) According to the information and explanation given to us, the Company has not made
any preferential allotment or private placement of shares or convertible debentures
(fully, partially or optionally convertible) during the year
(x) According to the information and explanation given to us, any fraud by the company
or any fraud on the company has not been noticed or reported during the year;
(xi) Company is not a Nidhi company, accordingly provisions of the Clause 3(xii) of the
Order is not applicable to the company,
(xii) According to the information and explanations given to us, we are of the opinion
that all transactions with related parties are in compliance with Section 177 and 188 of
Companies Act, 2013 where applicable and the details have been disclosed in the Financial
Statements etc., as required by the Accounting Standards and the Companies Act,2013.
(xiii) (a) The Company has not raised moneys by way of initial public offer or further
public offer (including debt instruments) during the year;
(b) According to the information and explanation given to us, the Company has not made
any preferential allotment or private placement of shares or convertible debentures
(fully, partially or optionally convertible) during the year
(xiv) According to the information and explanations given to us, we are of the opinion
that the company has not entered into any non-cash transactions with directors or persons
connected with him and accordingly, the provisions of clause 3(xv) of the Order is not
applicable.
(xv) According to the information and explanations given to us.we are of the opinion
that the company is not required to be registered under section 45-IA of the Reserve Sank
of India Act, 1934 and the company is not a Core Investment Company (CIC) as defined in
the regulations made by the Reserve Bank of lndia, accordingly the provisions of clause
3(xvi)of the Order are not applicable
(xvi) According to the information and explanations given to us and based on the audit
procedures conducted we are of opinion that the company has not incurred any cash losses
in the financial year and the immediately preceding financial year;
(xvii) There has been no resignation of the statutory auditors during the year and
accordingly, the provisions of clause 3(xviii) of the Order is not applicable;
(xviii) On the basis of the financial ratios, ageing and expected dates of realization
of financial assets and payment of financial liabilities, other information accompanying
the financial statements, our knowledge of the Board of Directors and management plans and
based on our examination of the evidence supporting the assumptions, nothing has come to
our attention, which causes us to believe that any material uncertainty exists as on the
date of the audit report indicating that company is incapable of meeting its liabilities
existing at the date of balance sheet as and when they fall due within a period of one
year from the balance sheet date We. however, state that this is not an assurance as to
the future viability of the company. We further state that our reporting is based on the
facts up to the date of the audit report and we neither give any guarantee nor any
assurance that all liabilities falling due within a period of one year from the balance
sheet date, will get discharged by the company as and when they fall due
(xix) The provisions of Section 135 towards corporate social responsibility are not
applicable on the company Accordingly, the provisions of clause 3(xx) of the Order is not
applicable
(\x) The reporting under clause (xxi) is not applicable in respect of audit of
standalone financial statements of the Company. Accordingly, no comment has been included
in respect of said clause under this report.
Annexure B
To the Independent Auditors Report of even date on the financial statements of Dekson
Castings Limited for the year ended 31st March 2023.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ( ‘the Act")
We have audited the internal financial controls over financial reporting of Dekson
Castings Limited ("the Company") as of 31st March, 2023 in conjunction with
our audit of the financial statements of the Company for the period ended on that date
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
issued by the Institute of Chartered Accountants of India (ICAIJ. These responsibilities
include the design, implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the orderly and efficient conduct of its
business, including adherence to Companys policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation of reliable financial information, as
required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
(the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed
to be prescribed under section 143(10) of the Companies Act. 2013, to the extent
applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, both issued by the Institute of Chartered Accountants of
India. Those Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error We
believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinion on the Companys internal financial controls system over
financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles A Companys internal financial control over financial
reporting includes those policies and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the Company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and
expenditures of the Company are being made only in accordance with authorizations of
management and directors of the Company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the
Companys assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected Also,
projections of any evaluation of the internal financial controls over financial reporting
to future periods are subject to the risk that the internal financial control over
financial reporting may become inadequate because of changes in conditions, or that the
degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at 31 March 2023, based on . the
internal control over financial reporting criteria established by the Company considering
the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting, issued by the Institute of Chartered
Accountants of India
| ForMKMM& Associates |
| Chartered Accountants |
| FRN- 137189 W |
| CA Avinash Mahamuni |
| (Partner) |
| M. No. :117992 |
| UDIN:23117992BGTYPG8075 |
| Place: Aurangabad |
| Date: 30.05.2023 |
+91-9892691696
