Deepak Industries Limited 28/07/2020 Regd. & Corporate Office: 16, Hare Street, Kolkata 700 001 Phone: 033-2248-2391/92/93 Fax: 03322489382 Website: wWw.dil-india.com CIN No. : L63022WB1954PLC021638 email: [email protected]The Manager-Listing The Calcutta Stock Exchange Limited 6, Lyons Range, Kolkata-700 001 Dear Sirs, Sub: Copy of the audited financial statement for the year ended 31103/2020 under reg 33 of SEBI(Listing obligation and Disclosure Requirements) Regulations, 2015 Enclosed please find a copy of the captioned result along with the Audit report thereon under the captioned SEBI(LODR) Regulations, 2015 considered and adopted in the Board meeting held on 28/07/2020 at 3.00 P.M and concluded at 5.00 P M. We hereby declare and confirm that the Audit report issued by statutory auditors of the Company on the annual accounts and audited financial Results for the year ended 31 st March, 2020 is unmodified. Please take the above in your record. Thanking you, Yours faithfully, Eor Deepak Industries Limited ., VDMAL Company Secretary
Transcript
Deepak Industries Limited
28/07/2020
Regd. & Corporate Office:16, Hare Street, Kolkata 700 001
The Manager-ListingThe Calcutta Stock Exchange Limited6, Lyons Range,Kolkata-700 001
Dear Sirs,
Sub: Copy of the audited financial statement for the year ended 31103/2020 under reg 33 ofSEBI(Listing obligation and Disclosure Requirements) Regulations, 2015
Enclosed please find a copy of the captioned result along with the Audit report thereon underthe captioned SEBI(LODR) Regulations, 2015 considered and adopted in the Board meetingheld on 28/07/2020 at 3.00 P.M and concluded at 5.00 P M.We hereby declare and confirm that the Audit report issued by statutory auditors of theCompany on the annual accounts and audited financial Results for the year ended 31 st March,2020 is unmodified.
Please take the above in your record.
Thanking you,
Yours faithfully,Eor Deepak Industries Limited.,
VDMALCompany Secretary
- 14 Government place East. Kolkata 700 069. IndiaTelephone: 033_2248_1111/1507/40400000Telefax 033-2248-6960Email [email protected]/ LODHA
&COChartered Accountants
INDEPENDENT AUDITORS' REPORT
The Board of Directors ofDeepak Industries Limited16, Hare Street,Kolkata - 700001
Report on the audit of the Financial Results
Opinion
We have audited the accompanyingfinancial results of Oeepak Industries limited (,the Company') forthe year ended March 31,2020 and the notes thereon (hereinafter referred to as the "Financial Results")attached herewith, being compiled by the Company pursuant to the requirement of Regulation 33 of theSEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("ListingRegulations"). The financial results have been initiated by us for the purpose of identification.
In our opinion and to the best of our information and according to the explanations given to us thesefinancial results:
i. are presented in accordance with the requirements of Regulation 33 of the Listing Regulationsin this regard; and
II. give a true and fair view in conformity with the recognition and measurement principles laiddown in the applicable Indian Accounting Standards and other accounting principles generallyaccepted in India of the net profit for the year ended March 31,2020 and other comprehensiveincome and other financial information for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section143(10) of the Companies Act, 2013 (the Act). Our responsibilities under those Standards are furtherdescribed in the Auditors' Responsibilities for the Audit of the Financial Results section of our report.We are independent of the Company in accordance with the Code of Ethics issued by the Institute ofChartered Accountants of India together with the ethical requirements that are relevant to our audit ofthe financial results under the provisions of the Companies Act, 2013 and the Rules thereunder, andwe have fulfilled our other ethical responsibilities in accordance with these requirements and the Codeof Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion on the financial results.
Management's Responsibilities for the Financial Results
These financial results have been prepared on the basis of the financial statements. The Company'sBoard of Directors are responsible for the preparation of these financial results that give a true and fairview of the net profit for the year ended March 31, 2020 and other comprehensive income and otherfinancial information of the company in accordance with the recognition and measurement principleslaid down in Indian Accounting Standard prescribed under Section 133 of the Act read with relevantrules issued thereunder and other accounting principles generally accepted in India and in compliancewith Regulation 33 of the Listing Regulations This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of the assets of the
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Kolkata Mumbai New Delhi Chennai Hyderabad laipur
Company and for preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable and prudent; anddesign, irnptementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the accuracy and completeness of the accounting records, relevant to thepreparation and presentation of the financial results that give a true and fair view and are free frommaterial misstatement, whether due to fraud or error.
In preparing the financial results, the Board of Directors are responsible for assessing the Company'sability to continue as a going concern, disclosing, as applicable, matters related to going concern andusing the going concern basis of accounting unless the Board of Directors either intends to liquidate theCompany or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Company's financial reporting process.
Auditors' Responsibilities for the Audit of the Financial Results
Our objectives are to obtain reasonable assurance about whether the financial results as a whole arefree from material misstatement, whether due to fraud or error, and to issue an auditors' report thatincludes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that anaudit conducted in accordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if, individually or in theaggregate, they could reasonably be expected to influence the economic decisions of users taken onthe basis of these financial results .
..As part of an audit in accordance with SAs, we exercise professional judgment and maintainprofessional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial results, whether due tofraud or error, design and perform audit procedures responsive to those risks, and obtain auditevidence that is sufficient and appropriate to provide a basis for our opinion. The risk of notdetecting a material misstatement resulting from fraud is higher than for one resulting fromerror, as fraud may involve collusion. forgery, intentional omissions, misrepresentations, or theoverride of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, weare also responsible for expressing an opinion whether the company has adequate internalfinancial controls with respect to financial statements in place and the operating effectivenessof such controls but not for the purpose of expressing an opinion on the effectiveness of theCompany's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness ofaccountinq estimates and related disclosures made by the Board of Directors,
• Conclude on the appropriateness of the Board of Directors' use of the going concern basis ofaccounting and, based on the audit evidence obtained, whether a material uncertainty existsrelated to events or conditions that may cast significant doubt on the Company's ability tocontinue as a going concern. If we conclude that a material uncertainty exists, we are requiredto draw attention in our auditors' report to the related disclosures in the financial results or, ifsuch disclosures are inadequate, to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditors' report, However, future events or conditionsmay cause the Company to cease to continue as a going concern,
• Evaluate the overall presentation, structure and content of the financial results, including thedisclosures, and whether the financial results represent the underlying transactions and eventsin a manner that achieves fair presentation
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Materiality is the magnitude of misstatements in the financial results that, individually or in aggregate,makes it probable that the economic decisions of a reasonably knowledgeable user of the financialresults may be influenced. We consider quantitative materiality and qualitative factors in (i) planning thescope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial results.
We communicate with those charged with governance regarding, among other matters, the plannedscope and timing of the audit and significant audit findings, including any significant deficiencies ininternal control that we identify during our audit
We also provide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence, and to communicate \vith them aliI elationships and othermatters that may reasonably be tr.ouqht to bear 0:1 our independence, and where applicable, relatedsafeguards.
Other Matters
a) The outbreak of COVID-19 as stated in Note no. 6 of the financial results dealing with evaluationof Impact of COVID-19 which has caused disruption in operation and physical verification andother yearend exercises, for which alternative audit procedures as reauired in terms ofstandards on auditing (SA) has been applied to obtain sufficient audit evidence on the matter.
\b) These financial results include the results for the quarter ended March 31, being the balancing
figures between the audited figures in respect of tne full financial year and the published yearto date figures upto December 31 of the relevant financial year. These figures were subject tolimited review by us as required under the Listing Reg'jaticns. ....
Our opinion is not modified in respect of the matters stated above. ...,
Place: Kolkata
Date: July 28, 2020
. ,'.: .
For Lodha[l" Co.
Chartered Accountants
t~egistration No.,301051E
1:3c:11anParakh
PartnerM. No. 053400
UDIN:20053400AAAP.AG76R?
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..r~SL.I (Rupees in LakhsNO.1 PARTICULARS QUARTER ENDED YEAR ENDED
I Revenue from Operations :: .:.! 23 9,908.47 10,907.16 41,08253 51,994.35II Other Income ::: 24 20601 392.96 991.46 1,170.57III Total Income (1+11) 8 449.47 10,114.48 11,300.12 42,073.99 53,164.92IV Expenses
Cost of Materials consumed : ::; E 07 3,568.94 5,294.22 14,526.05 25,119.50Changes in inventories of finished goods, Stock -in- Trade and w8-'· - : co 33 (106.10) (983.85) 2,141.08 (1,50800)progressErnolovee benefits Expense ::32 18 1,470.19 1,354.59 5,926.18 5,911.04Finance costs .~:; 32 212.73 237.77 842.19 1,020.27Depreciation and amortization Exoense ::S 92 559.27 53504 2,234.27 2,179.45Other Expenses ;: ::5' 42 2,50523 3,523.40 10,552.29 13,324.03Total Expenses (IV) 7.308.24 8,210.27 9,961.17 36,222.06 46,046.29
V Profitl(Loss) before tax (III-IV) 1.141.23 1,904.21 1,338.95 5,851.93 7,118.63
VI Tax Expense:(1) Current Tax 976 643.32 274.07 1,55175 2,430.00(2) Deferred Tax charge/(Credit) ,,36589 21.87 129.95 (28543 18.91
Total Tax Expense 1356.13 665.19 404.02 1 266.32 2448.91VII ProfitiLoss for the periodtv-Vl) 1,497.36 1,239.02 934.93 4,585.61 4,669.72VIII Other Comprehensive Income _ ..-
(i) Items that will not be reclassified to Profit or loss \;U 90) 2.16 45.57 (4.44) 8.59(ii) Income tax relating to items that will not be reclassified to Profitor loss 338 (076 (1592' 1.12 (3.00\Other Comprehensive Income For the Period, net of tax
(752) 29.651.40 (3.32) 5.59
Total Comprehensive Income for the Period/year (VII+VIII)(comprising profit for the period/year(after Tax) and other
IX comprehensive income(after tax)) 1,489.84 1,240,42 964.58 4,582.29 4,675.31Paid -up equity share capital (Face Value of Rs. 10 per share) 395.64 395.64 395.64 395.64 395.64
X Other Equity 30,409 84 26,543.00(AS at 31.032020) (AS at 3103 2019)
XI Earnino Per share (EPS)-not annualiseda) [Basic 37'.84 31.32 23.63 115.90 118.03b) I Diluted 3784 31.32 23.63 115.90 11803
DEEPAK "1'_+_'5 L( ES LIMITEDCIN _50 ::?,',-=' ~:':P~C021638
website: www.dil-incra ::.- E~a I [email protected] Financial Results for me - arter and Year ended 31st March 2020
DEEPAK INDUSTRIES LIMITEDSTATEMENT OF ASSETS AND LIABILITIES
Note 1
Rupees in LakhsAs at 31st March
Particulars 2020 As at 31st March 2019Amount Amount(Audited) (Audited)
ASSETS11 Non-current assets
a) Property, Plant and Equipment 16,581.68 16.146.36b) Capital work-ln-orocress 68.93 18.07c Intanqible Assets 29.46 56.50d Financial Assetsi Investments 111.72 100.85ii Other Financial Assets 251.68 186.62
e Other non-current assets 944.26 1,392.94Total Non Current Assets 17,987.73 17,901.34
1(2 Current assets(a) Inventories 4,710.50 8,304.25b Financial Assetsi Trade receivables 8.518.42 10,609.23ii Cash and cash equivalents 900.85 96.09iii) Other Bank Balances 14,688.46 8,663.17iv) Other financial assets 506.52 344.42
(c) Other current assets 426.17 731.31Total Current Assets 29,750.92 28,748.47
Total Assets , 47,738.65 46,649.81
EQUITY AND LIABILITIESEc uitv
a) Equity Share capital 395.64 395.64b) Other Euuitv I 30,409.84 26.543.00Total Equitv 30,805.48 26,938.64
Liabilities1(1) Non-current liabilities
a Financial Liabilitiesi Borrowinos I 1.752.33 2.249.90ii) Other financial liabilities i 432.92 438.88
b Provisions 203.03 17919(c) Deferred Tax Liabilities (Net) 818.14 1.104.69d) Other Non-current Liabilities 0.51Total Non Current Liabilities 3,206.42 3,973.17
(a) Total Outstanding dues of microenterprises & small enterprises 226.00 471.14
(b) Total Outstanding dues to creditorsother than micro enterprises & smallenterorises 3,667.54 4.155.54(iii) Other financial liabilities 2,137.96 1,901.53
b Other current liabilities 1,541.28 1,407.30c Provisions 276.32 221.67d Current Tax Liabilities - 24.98
Total Current Liabilities 13,726.75 15,738.00
Total Liabilities 16,933.17 19,711.17
Total Equity and Liabilities 47,738.65 46,649.81
. Limited>sh Flows for the year ended March 31, 2020
Note 2
•
Particulars:::-:.:,e ,ear ended March 31, 2020 For the year ended March 31, 2019
Rupees Rupees Rupees Rupees(Audited) (Audited)
CASH FLOW FROM OPERATING ACTIVITIES:,~ET PROFIT BEFORE TAX 5,851.93 7,118.63ADJUSTMENTS FOR -Depreciation 2234.27 2,179.45(Profit)/Loss on sale/ discard of Property, Plant and Equipment (267) (3.26)Interest Income 339.15) (66582)Liabilities no longer required written back (86.18) (214.19)Finance costs 842.19 1,020.27Amortisation of Deferred financial instruments 52.31 23.41
2,200.77 2,339.86OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES 8,052.70 9,458.49ADJUSTMENTS FOR -Trade and other receivables 2.090.81 (1,103.89)Inventories 3 593 75 (1.39495)Loans and advances 218.16 (17003)Trade Payables and other liabilities (226.22) 5,676.50 (1,478.40) (4,147.27)CASH GENERATED FROM OPERATIONS 13,729.20 5,311.22Direct Taxes Paid (1,906.13) (2,245.68)NET CASH FLOW FROM/(USED IN) OPERATING ACTIVITIES 11,823.07 3,065.54B. CASH FLOW FROM INVESTING ACTIVITIES:Deposits with Bank (original maturity more than three months) (602595) 5,789.62Interest Income 65870 955.70Purchase of Property, Plant and Equipment (1.850.37) (3,758.45)Sale of Property, Plant and Equipment 1000 11.15
(7,207.62) 2,998.02NET CASH FLOW FROM/(USED IN) INVESTMENT ACTIVITIES (7,207.62) 2,998.02C. CASH FLOW FROM FINANCING ACTIVITIES:Interest Paid (81127) (1,031.09)Repayment of Long term Borrowings from Bank (59276) (1,072.30)Repayment of Sales Tax Deferment Loan (2311 ) (23.10)Repayment of Short Term Borrowings from Bank (1648.19) (3,840.53)Repayment of Short Term Borrowings from Bodies Corporate (30.00) (50.00)Dividend paid including Dividend Distribution Taxes there on (705.36)
Net Increase/(Decrease) in CASH AND CASH EQUIVALENTS (A+B+C) 804.76 46.54Cash and Cash Equivalents as at beginning of the Year 96.09 49.55Cash and Cash Equivalents as at the end of the year 900.85 96.09
(Rupees In lakhs)
The above Cash Flow Statement has been prepared under the "Indirect Method" as set out in tr.e Indian Accounting Standard· 7 on Statement of Cash Flows.
.res:The above audited financial results for the quarter and year enoec Vcr:;- ;' 2C20 alonqwrth notes thereupon including Statement of Assets and Uabilitiesand Statement of Cash Flows as given in Note 1 and 2 respect ve, ~ '!;' •.~ by the audit committee and thereafter approved by the Board of Directorsand were taken on record at their meetings held on July 28 202:
4 The Company, effective 1st April, 2019 has adopted Ind AS ",0 .~as-=; :- a _ease contracts exrstrnq as on the date and entered thereafter, under themodified restrospective approach with cummulative effect of c: a ac::-:- :" -;; ~;ven effect to on the date of application. Consequently. such assets havebeen recognised as "Right of use" and have been amortised o.e' :-" :e~; c' ease Further, finance costs in respect of lease liability where applicable havebeen measured and considered in the financial result Trus no•••",. e' ooes ~:t ~ave any significant impact on the profit/loss and earning per share for theperiod.
5 The Company has during the quarter ended March 31, 2020 exerc sec ::-e cot.ens for paying income tax at concessional rates subject to the compliances,conditions as specified under section 115BAA of the Income Tax .:.:::: ':0:;' new tax regime) effective April 01, 2019 as introduced by the Taxation Laws(Amendment) Ordinance, 2019 and promulgated as the Taxatior- a•••-s ':'-e1ament) Act, 2019 enacted on December 11, 2019. Accordingly, Deferred TaxUability (net) recognised earlier as at March 31, 2019 has been rer-eas.-;;.:: ana the estimate for tax expense comprising of both current and deferred tax forthe year ended March 31, 2020 have been revised Consequent, a +cac: " tn,s respect has been given effect to during the current quarter. Accordingly,charge on account of taxation for the current quarter is lower by Rs =2: 50! a.ns (Including reversal of tax expenses of Rs. 514.10 lakhs recognised duringthe nine months period ended 31st December, 2019 )
6 Consequent to outbreak of COVID 19 ,which has been declare: a ca-oermc by World Health Organisation (WHO), Government of India and StateGovernments have declared lockdown effective from 25th March 2:2: •••- en have affected business in general. The Company's primary source of revenue isfrom manufacturing and selling of automobile and industrial gears T~e cc-icanvs operation have been affected due to loss of production, suspension of theoperation, disruption in supply chain, increase in credit period In rescec: of customer dues and non availability of personnel during lockdown and variousother facilities affecting the overall liquidity due to blockage of funds or in .entones receivables, etc. The production have started gradually from May, 2020 inall plants of the company. The Company has considered Internal an: e,re--a'rformation while finalizing various estimates and taking assumptions in relationto its Financial Statements preperation upto the date of approval of roe ~ -anclal Statements by the Board of Directors and no material impact of COVID-19 onthe financial performance interalia Including the carrying value of var C~S current and non current assets or on the gomg concern assumptions of theCompany is expected to arise.However, the estimates used for assessing the carrying value of assets and liabilities at 31st March 2020 during the COVID 19pandemic may undergo change as these are dependent upon future deveroprnent of the economy and Industry. The company will continue to monitor thevariation in situations and consider the same as and when determinable
7 Segment Wise Revenue, Results, Assets and Liabilities are as follows, (Rupees in Lakhs)
QUARTER ENDED YEAR ENDED
SL. PARTICULARS 3103.2020 I 31.12.2019 31.03.2019 I 31.03.2020 I 31.03.2019NO. Audited Unaudited Audited Audited Audited
8 During the quarter, the company has paid an interim dividend at the rate 50% of the face value of Rs. 101, (Rs. 5/- per equity share) for the financial year 2019·20. The interim dividend paid by the company has been confirmed at the Board meeting held on 28072020 as the final dividend for the financial year 2019-2020
9 The figures for the quarter ended March 31 are the balancing figures between audited figures in respect of full Financial year ended March 31 and theunaudited year to date figures upto December 31
10 Previous period's figures have been regrouped by the Company, wherever necessary
Place KolkataDate :The28th day of July 2020
Fr. . DDEEEE,PAKINDUSTRIES LIMITED
~c-ff _DIN 0004~Vice Chairman-cum- Joint Managing Director
