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Birla Cable Ltd.

BSE: 500060 Sector: Engineering
NSE: BIRLACABLE ISIN Code: INE800A01015
BSE LIVE 15:40 | 08 Dec 41.55 -0.45
(-1.07%)
OPEN

42.50

HIGH

42.50

LOW

41.50

NSE LIVE 15:31 | 08 Dec 41.25 -0.75
(-1.79%)
OPEN

43.00

HIGH

43.00

LOW

41.00

OPEN 42.50
PREVIOUS CLOSE 42.00
VOLUME 1807
52-Week high 59.10
52-Week low 29.35
P/E 14.89
Mkt Cap.(Rs cr) 124.65
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 42.50
CLOSE 42.00
VOLUME 1807
52-Week high 59.10
52-Week low 29.35
P/E 14.89
Mkt Cap.(Rs cr) 124.65
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Birla Cable Ltd. (BIRLACABLE) - Auditors Report

Company auditors report

TO THE MEMBERS OF BIRLA ERICSSON OPTICAL LIMITED

Report on Financial Statements

We have audited the accompanying financial statements of Birla Ericsson Optical Limited("the Company") which comprise the Balance Sheet as at 31st March 2016 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement. An audit involves performingprocedures to obtain audit evidence about the amounts and the disclosures in the financialstatements. The procedures selected depend on the auditor’s judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.

In making those risk assessments the auditor considers internal financial controlrelevant to the Company’s preparation of the financial statements that give a trueand fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by theCompany’s Directors as well as evaluating the overall presentation of the financialstatements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2016 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements 1. As required by Section 143 (3) ofthe Act we report that:

(a) We have sought and obtained all the information and explanations which to the bestof 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 theCompany 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 Statementdealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid financial statements comply with the AccountingStandards 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 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in termsof Section 164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure A". Our report express an unmodified opinion on theadequacy and operating effectiveness of the Company’s internal financial controlsover financial reporting.

(g) With respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note 29 to the financial statements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

2. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Government of India in terms of sub-section (11) of section 143of the Act and on the basis of such checks of the books and records of the Company as weconsidered appropriate and according to the information and explanations given to us wegive in the "Annexure B" a statement on the matters specified in the paragraphs3 and 4 of the said Order.

For V. Sankar Aiyar & Co.
Chartered Accountants
ICAI Firm Regn. No. 109208W
R.Raghuraman
Place : New Delhi Partner
Date : May 18 2016 Membership No. 081350

Annexure "A" to the Independent Auditors’ Report

(Referred to in Paragraph 1(f) under ‘Report on Other Legal and Regulatoryrequirements’ of our report on even date)

Report on the Internal Financial Controls over Financial Reporting under Clause(i) ofSub-section 3 of Section 143 of the Act

We have audited the internal financial controls over financial reporting of the Companyas of March 312016 in conjunction with our audit of the financial statements of theCompany for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India(ICAI). These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to Company’spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand issued by ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A Company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the Company are being made only in accordance with authorisations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of theCompany’s 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 financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note issued by theICAI.

For V. Sankar Aiyar & Co.
Chartered Accountants
ICAI Firm Regn. No. 109208W
R.Raghuraman
Place : New Delhi Partner
Date : May 18 2016 Membership No. 081350

Annexure "B" to the Independent Auditors’ Report

(Referred to in Paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements’ section of our Report on even date).

i (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) Major items of fixed assets were physically verified during the year by themanagement in accordance with regular programme of verification which in our opinionprovides for physical verification of all the fixed assets at reasonable intervals. Nomaterial discrepancies were noticed on such verification.

(c) In our opinion and according to the information and explanations given to us andrepresentation obtained from the management the title deeds of immovable properties areheld in the name of the Company.

Immovable properties whose title deeds have been mortgaged as security for loansguarantees etc. are held in the name of the Company based on theconfirmations/Memorandum of entry of Mortgage of Mortgage by deposit of Title Deedsreceived from lenders.

ii The inventories except goods-in-transit have been physically verified by themanagement at reasonable intervals during the year. In our opinion the frequency ofverification is reasonable and no material discrepancies were noticed on physicalverification.

iii The Company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties required to be covered in the registermaintained under section 189 of the Act. Therefore the provisions of clause 3(iii) (a) to(c) of the Order are not applicable.

iv The Company has not granted any loans or provided any guarantees or security to theparties covered under Section 185 of the Act. The Company has complied with the provisionsof Section 186 of the Act in respect of investments made or loans or guarantee or securityprovided to parties covered under Section 186.

v The Company has not accepted deposits from the public in accordance within theprovisions of sections 73 to 76 of the Act and the rules framed there under.

vi We have broadly reviewed the books of accounts maintained by the Company pursuant tothe rules made by the Central Government for the maintenance of cost records under section148(1) of the Act and are of the opinion that prima facie the prescribed accounts andrecords have been maintained. We have not however made a detailed examination of therecords for the year with a view to determine whether they are accurate and complete.

vii (a) According to the records of the Company the Company has been generally regularin depositing undisputed statutory dues including provident fund income-tax sales-taxservice tax duty of customs duty of excise value added tax cess and other materialstatutory dues with the appropriate authorities. There were no arrears of undisputedstatutory dues as at 31st March 2016 which were outstanding for a period of more thansix months from the date they became payable. We are informed that there is no liabilityon account of Employees’ state insurance.

(b) There are no disputed dues which have remained unpaid as on 31st March 2016 inrespect of income tax or sale tax or service tax or duty of customs or duty of excise orvalue added tax except as follows.

Name of the Statute Nature of dues Forum where Dispute is pending Period to which amount relates Amount Involved (Rs. in lacs)
MP VAT Act 2003 Demand of Interest on alleged payment of deferred sales tax loan/liability MP Commercial Tax Appellate Board FY 2011-12 86.86

viii On the basis of the verification of records and information and explanations givento us the Company has not defaulted in repayment of loans and borrowings to banks. TheCompany does not have any loans or borrowings from financial institution government ordebenture holders in the books of accounts at any time during the year.

ix The Company did not raise any money by way of initial / further public offer(including debt instruments) and term loans taken during the year have been applied forthe purpose for which they were obtained.

x Based on the audit procedure performed and the representation obtained from themanagement no material fraud by the Company or on the Company by its officers andemployees has been noticed or reported during the year.

xi According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid / provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V of the Act.

xii The Company is not a Nidhi Company. Therefore the provisions of clause 3(xii) ofthe Order are not applicable.

xiii According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with section 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

xiv During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures. Therefore the provisionsof clause 3(xiv) of the Order are not applicable.

xv According to the information and explanations given to us and the representationobtained from the management the Company has not entered into any non-cash transactionswith directors or persons connected with him. Therefore the provisions of clause 3(xv) ofthe Order are not applicable.

xvi In our opinion and according to the information and explanations given to us theCompany is not required to be registered under section 45-I of the Reserve Bank of IndiaAct 1934.

For V. Sankar Aiyar & Co.
Chartered Accountants
ICAI Firm Regn. No. 109208W
R.Raghuraman
Place : New Delhi Partner
Date : May 18 2016 Membership No. 081350

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