We have audited the accompanying standalone Ind AS financial statements of DUKE OFFSHORE LIMITED("the Company"), which comprise the Balance Sheet as at 31st March 2024, and the statement of Profit andLoss including the statement of Other Comprehensive Income, the Statement of Changes in Equity andstatement of Cash Flows for the year then ended, and notes to the standalone 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, theaforesaid standalone Ind AS financial statements give the information required by the Companies Act, 2013,as amended (the "Act") in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India, of the state of affairs of the Company as at March 31,2024, and its profit including other comprehensive income, the changes in equity and its cash flows for theyear ended on that date.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section143(10) of the Act. Our responsibilities under those Standards are further described in the 'Auditor'sResponsibilities for the Audit of the Financial Statements' section of our report. We are independent of theCompany in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of Indiatogether with the ethical requirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules there under, we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.
Key audit matters are those matters that, in our professional judgment, were of most significance in ouraudit of the financial statements of the current period. These matters were addressed in the context of ouraudit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide aseparate opinion on these matters.
We have determined the matters described below to be the key audit matters to be communicated in ourreport. We have fulfilled the responsibilities described in the Auditor's responsibilities for the audit of thestandalone Ind AS financial statements section of our report, including in relation to these matters.Accordingly, our audit included the performance of procedures designed to respond to our assessment ofthe risks of material misstatement of the standalone Ind AS financial statements. The results of our auditprocedures, including the procedures performed to address the matters below, provide the basis for ouraudit opinion on the accompanying standalone Ind AS financial statements.
Contingent Liability
Refer Note 24, For the year ended 31st March 2024 the company has contingent liabilities of Rs. 34.42 lakhstowards contested tax demands/ pending litigation.
A provision is recognised when there is a present obligation as a result of a past event from which it isprobable that an outflow of resources embodying economic benefits will be required to settle the obligation
and a realisable estimate can be made of the amount of the obligation. A disclosure for a contingent liabilityis made when there is a possible obligation or a present obligation that may, but probably will not, requirean outflow of resources. Where there is a possible obligation or a present obligation that the likelihood ofoutflow or resources is remote, no provision or disclosure is made.
This area is considered as a key audit matter, as evaluation of these matters requires Managementjudgement and estimation, interpretation of laws and regulations and application of relevant judicialprecedents to determine the probability of outcome of ongoing proceedings and outflow of economicresources, if any, and the recognition of provisions, disclosure of contingent liabilities and relateddisclosures to be made in the standalone financial statements.
Audit Procedures to address the Key Audit Matter
We have assessed the company's accounting policy as per Ind AS-37 "Provisions, Contingent Liabilities andContingent Assets". Obtained details of completed tax assessments and demands for the year ended March31, 2024 from Management. We reviewed the same to challenge the managements underlying assumptionsin estimating the tax provision and the possible outcome of the disputes. We have also evaluated theappropriateness and adequacy of disclosures prepared and presented by the management in the financialstatements.
The Company's Board of Directors is responsible for the other information. The other information comprisethe information included in the annual report, but does not include the financial statements and ourauditor's report thereon. The annual report is expected to be made available to us after the date of thisauditor's report.
Our opinion on the financial statements does not cover the other information and we will not express anyform of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the otherinformation identified above when it becomes available and, in doing so, consider whether the otherinformation is materially inconsistent with the financial statements or our knowledge obtained in the audit,or otherwise appears to be materially misstated. If, based on the work we have performed, we concludethat there is a material misstatement of this other information; we are required to report that fact. We havenothing to report in this regard.
The Company's Board of Directors is responsible for the matters stated in section 134(5) of the CompaniesAct, 2013 ("the Act") with respect to the preparation of these standalone financial statements that give atrue and fair view of the financial position, financial performance including other comprehensive income,cash flows and changes in equity of the Company in accordance with the accounting principles generallyaccepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of theAct read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisions of the Act forsafeguarding 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 arereasonable and prudent; and design, implementation and maintenance of adequate internal financialcontrols, that were operating effectively for ensuring the accuracy and completeness of the accountingrecords, relevant to the preparation and presentation of the financial statement that give a true and fairview and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Company'sability to continue as a going concern, disclosing, as applicable, matters related to going concern and usingthe 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. The Board of Directors are also responsiblefor overseeing the Company's financial reporting process.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole arefree from material misstatement, whether due to fraud or error, and to issue an auditor's report thatincludes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when it exists. Misstatementscan arise from fraud or error and are considered material if, individually or in the aggregate, they couldreasonably be expected to influence the economic decisions of users taken on the basis of these standalonefinancial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professionalscepticism throughout the audit. We also:
1. Identify and assess the risks of material misstatement of the financial statements, 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 from error,as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the overrideof internal control.
2. 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, we arealso responsible for expressing our opinion on whether the company has adequate internalfinancial controls system in place and the operating effectiveness of such controls.
3. Evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimates and related disclosures made by management.
4. Conclude on the appropriateness of management's use of the going concern basis of accountingand, based on the audit evidence obtained, whether a material uncertainty exists related to eventsor conditions that may cast significant doubt on the Company's ability to continue as a goingconcern. If we conclude that a material uncertainty exists, we are required to draw attention in ourauditor's report to the related disclosures in the financial statements or, if such disclosures areinadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained upto the date of our auditor's report. However, future events or conditions may cause the Companyto cease to continue as a going concern.
5. Evaluate the overall presentation, structure and content of the standalone financial statements,including the disclosures, and whether the standalone financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.
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 with them all relationships andother 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 mattersthat were of most significance in the audit of the standalone financial statements of the current periodand are therefore the key audit matters. We describe these matters in our auditor's report unless lawor 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 adverseconsequences of doing so would reasonably be expected to outweigh the public interest benefits ofsuch communication.
As required by the Companies (Auditor's Report) Order, 2020 ("the Order"), issued by the Central
Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure A
a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
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 ourknowledge 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 faras it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including the Statement of OtherComprehensive Income, the Statement of Changes in Equity and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act, read with Companies (IndianAccounting Standards) Rules, 2015 as amended.
e) On the basis of the written representations received from the directors as on 31st March, 2024taken on record by the Board of Directors, none of the directors is disqualified as on 31st March,2024 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 theCompany and the operating effectiveness of such controls, refer to our separate Report in"Annexure B"
g) In our opinion, the Company has paid/ provided managerial remuneration in accordance with therequisite approvals mandated by the provisions of section 197 read with schedule V of the Act.
h) With respect to the other matters to be included in the Auditor's Report in accordance with Rule11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of ourinformation and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in itsfinancial statements - Refer Note 24 to the financial statements;
ii. The Company has made provision, as required under the applicable law or IndianAccounting Standards, for material foreseeable losses, if any, on long-term contractsincluding derivative contracts
iii. The Company has delayed transferring Rs. 5.08 lakhs to the Investor Education andProtection Fund
iv. (a) As per the information and explanation given to us by the management, no funds havebeen advanced or loaned or invested (either from borrowed funds or share premium orany other sources or kind of funds) by the company to or in any other person or entity,including foreign entities ("Intermediaries"), with the understanding, whether recordedin writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend orinvest in other persons or entities identified in any manner whatsoever by or on behalf ofthe company ("Ultimate Beneficiaries") or provide any guarantee, security or the like onbehalf of the Ultimate Beneficiaries;
(b) As per the information and explanation given to us by the management, no funds have beenreceived by the company from any person or entity, including foreign entities ("FundingParties"), with the understanding, whether recorded in writing or otherwise, that thecompany shall, whether, directly or indirectly, lend or invest in other persons or entitiesidentified in any manner whatsoever by or on behalf of the Funding Party ("UltimateBeneficiaries") or provide any guarantee, security or the like on behalf of the UltimateBeneficiaries; and
(c) On the basis of above representations, nothing has come to our notice that has caused usto believe that the above representations contained any material misstatement.
v. The Company has not declared or paid any dividend during the year.
vi. Based on our examination, which included test checks, and other generally accepted auditprocedures performed by us, we report that the company has not used accountingsoftware for maintaining its books of account which has a feature of recording audit trail(edit log) facility. Accordingly, we are not in a position to comment on operation andtempering of audit trail.
Further, as provision to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable fromApril 1, 2023, reporting under Rule 11 (g) of the Companies (Audit and Auditors) Rules,2014 on preservation of audit trail as per the statutory requirements of record retentionis not applicable for the financial year ended March 31, 2024.
Chartered Accountants
FRN: W100662
Sd/-
S M Chitnis
(Partner)
Membership No.: 043152
Place: Mumbai
Date: 30th May 2024
UDIN: 24043152BKHJMY5376