To The Members of DISA India Limited
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of DISA India Limited
("the Company"), which comprise the Balance Sheet as at March 31, 2023, and the
Statement of Profit and Loss (including Other Comprehensive Income), the Statement of
Changes in Equity and the Cash Flow Statement for the year then ended, and 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 standalone financial statements give the information required
by the Companies Act, 2013 ("the Act") in the manner so required and give a true
and fair view in conformity with the Indian Accounting Standards prescribed under section
133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as
amended, ("Ind AS") and other accounting principles generally accepted in India,
of the state of affairs of the Company as at March 31, 2023, and its profit, total
comprehensive income, the changes in equity and its cash flows for the year ended on that
date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the
Standards on Auditing specified under section 143(10) of the Act (SAs). Our
responsibilities under those Standards are further described in the Auditors
Responsibility for the Audit of the Standalone Financial Statements section of our report.
We are independent of the Company in accordance with the Code of Ethics issued by the
Institute of Chartered Accountants of India (ICAI) together with the ethical requirements
that are relevant to our audit of the standalone financial statements under the provisions
of the Act and the Rules made thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the ICAIs Code of Ethics. We
believe that the audit evidence obtained by us is sufficient and appropriate to provide a
basis for our audit opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the standalone financial statements of the current period.
These matters were addressed in the context of our audit of the standalone financial
statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters. We have determined the matter described below to be the
key audit matter to be communicated in our report.
| Sr. No. Key Audit Matter |
Auditors Response |
| 1 Revenue Recognition |
Principal audit procedures performed: |
| Refer Note 3.1 and Note 27 to the standalone financial statements. |
|
| The Company recognizes revenue from sale of goods based on the terms and conditions of
the agreements/arrangements, which vary with different customers. For sale transactions in
a certain period around balance sheet date, it is essential to ensure whether the transfer
of control of the goods by the Company to the customer occurs before the balance sheet
date. |
• We tested the internal controls relating to determination of point in time at
which the transfer of control of goods occurs for revenue recognition in the appropriate
period in accordance with the Companys accounting policy. |
| Considering material sale transactions close to the year end and that revenue
recognition is subject to transfer of control to the customers before the balance sheet
date, we consider the risk of revenue from sale of goods being recognised in the incorrect
period as a key audit matter. |
• For a selection of sale transactions recorded close to the year end, we
performed the following audit procedures: |
|
- Analysed the terms and conditions of the underlying agreements/arrangements with the
customer, and |
|
- Verified evidence for transfer of control of the goods prior to the balance sheet
date or otherwise from relevant supporting documents. |
Information Other than the Financial Statements and Auditors Report Thereon
The Companys Board of Directors is responsible for the other information. The other
information comprises the information included in the Management Discussion and Analysis
report, Boards report including Annexures to the Boards report and Report on Corporate
Governance but does not include the consolidated financial statements, standalone
financial statements and our auditors report thereon.
• Our opinion on the standalone 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 standalone financial statements, our
responsibility is to read the other information and, in doing so, consider whether the
other information is materially inconsistent with the standalone financial statements or
our knowledge obtained during the course of our audit or otherwise appears to be
materially misstated.
• If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.
Managements Responsibility for the Standalone Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Act with respect to the preparation of these standalone financial statements
that give a true and fair view of the financial position, financial performance including
other and other material statutory dues applicable to the Company have generally been
regularly deposited by it with the appropriate authorities in all cases during the year.
There were no undisputed amounts payable in respect of Goods and Services tax, Provident
Fund, Employees State Insurance, Income-tax, cess and other material statutory dues in
arrears as at March 31, 2023 for a period of more than six months from the date they
became payable.
b. Details of statutory dues referred to in sub-clause (a) above which have not been
deposited on account of disputes as on March 31, 2023, are given below:
| Name of the Statue |
Nature of the Dues |
Amount (Rs.) in Million |
Period to which the amount relates |
Forum where the dispute is pending |
| Central Excise Act, 1944 |
Excise Duty |
1.851 |
F.Y. 2013-2018 |
Commissioner (Appeals) |
| Central Sales Tax Act, 1956 |
Central Sales Tax |
4.152 |
F.Y. 2012-2013 |
Karnataka Appellate Tribunal |
| Karnataka Tax on Entry of Goods Act, 1974 |
Entry Tax |
0.113 |
F.Y. 2012-2013 |
Karnataka Appellate Tribunal |
| Income Tax Act, 1961 |
Income Tax |
5.654 |
A.Y. 2013-14 |
Income Tax Appellate Tribunal |
1. Net of Rs.0.16 million paid under protest.
2. Net of Rs.1.78 million paid under protest.
3. Net of Rs.0.56 million paid under protest.
4. Net of Rs.1.41 million paid under protest.
viii. There were no transactions relating to previously unrecorded income that were
surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961
(43 of 1961) during the year.
ix. a. The Company has not taken any loans or other borrowings from any lender. Hence
reporting under clause (ix)(a) of the Order is not applicable to the Company.
b. The Company has not been declared wilful defaulter by any bank or financial
institution or government or any government authority.
c. The Company has not taken any term loan during the year and there are no unutilised
term loans at the beginning of the year and hence, reporting under clause (ix)(c) of the
Order is not applicable.
d. On an overall examination of the financial statements of the Company, funds raised
on short-term basis have, prima facie, not been used during the financial year for
long-term purposes by the Company.
e. The Company has not made any investment in or given any new loan or advances to its
subsidiary during the year and hence, reporting under clauses (ix)(e) of the Order is not
applicable.
f. The Company has not raised any loans during the year and hence reporting on clause
(ix)(f) of the Order is not applicable.
x. a. The Company has not issued any of its securities (including debt instruments)
during the year and hence reporting under clause (x)(a) of the Order is not applicable.
b. During the year, the Company has not made any preferential allotment or private
placement of shares or convertible debentures (fully or partly or optionally) and hence
reporting under clause (x)(b) of the Order is not applicable to the Company.
xi. a. To the best of our knowledge, no fraud by the Company and no material fraud on
the Company has been noticed or reported during the year.
b. To the best of our knowledge, no report under sub-section (12) of section 143 of the
Companies Act has been filed in Form ADT-4 as prescribed under rule 13 of Companies (Audit
and Auditors) Rules, 2014 with the Central Government, during the year and upto the date
of this report.
c. As represented to us by the Management, there were no whistle blower complaints
received by the Company during the year.
xii. The Company is not a Nidhi Company and hence reporting under clause (xii) of the
Order is not applicable to the Company.
xiii. In our opinion, the Company is in compliance with Section 177 and 188 of the
Companies Act, 2013, where applicable, for all transactions with the related parties and
the details of related party transactions have been disclosed in the financial statements
etc. as required by the applicable accounting standards.
xiv. a. In our opinion, the Company has an adequate internal audit system commensurate
with the size and nature of its business.
b. We have considered, the internal audit reports issued to the Company during the year
and covering the period uptoNovember 30, 2022 and the internal audit report where issued
after the balance sheet date for the period December 1, 2022 to February 28, 2023 for the
period under audit.
xv. In our opinion, during the year the Company has not entered into any non-cash
transactions with its directors or directors of its Holding Company or persons connected
with them and hence provisions of section 192 of the Companies Act, 2013 are not
applicable to the Company.
xvi. a. The Company is not required to be registered under section 45-IA of the Reserve
Bank of India Act, 1934. Hence, reporting under clause (xvi)(a), (b) and (c) of the Order
is not applicable.
b. The Group does not have any CIC as part of the group and accordingly, reporting
under clause (xvi)(d) of the Order is not applicable.
xvii. The Company has not incurred cash losses during the financial year covered by our
audit and in the immediately preceding financial year.
xviii. There has been no resignation of the statutory auditors of the Company during
the year.
xix. 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 and 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 not capable 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.
xx. The Company has fully spent the required amount towards Corporate Social
Responsibility (CSR) and there are no unspent CSR amounts for the year requiring a
transfer to a Fund specified in Schedule VII to the Companies Act or special account in
compliance with the provision of subsection (6) of section 135 of the said Act.
Accordingly, reporting under clause (xx) of the Order is not applicable for the year.
|
For Deloitte Haskins & Sells |
|
Chartered Accountants |
|
(Firms Registration No. 008072S) |
|
Monisha Parikh |
|
Partner |
|
(Membership No. 47840) |
|
UDIN:23047840BGUCKY6059 |
| BENGALURU; May 25, 2023 |
|
| MP/UM/2023 |
|
+91-9892691696
