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Hathway Bhawani Cabletel & Datacom Ltd.

BSE: 509073 Sector: Services
NSE: N.A. ISIN Code: INE525B01016
BSE 14:46 | 15 Jan 3.65 -0.15
(-3.95%)
OPEN

3.61

HIGH

3.65

LOW

3.61

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 3.61
PREVIOUS CLOSE 3.80
VOLUME 659
52-Week high 5.07
52-Week low 3.16
P/E
Mkt Cap.(Rs cr) 3
Buy Price 3.65
Buy Qty 21.00
Sell Price 0.00
Sell Qty 0.00
OPEN 3.61
CLOSE 3.80
VOLUME 659
52-Week high 5.07
52-Week low 3.16
P/E
Mkt Cap.(Rs cr) 3
Buy Price 3.65
Buy Qty 21.00
Sell Price 0.00
Sell Qty 0.00

Hathway Bhawani Cabletel & Datacom Ltd. (HATHWAYBHAWANI) - Auditors Report

Company auditors report

To the Members of Hathway Bhawani Cabletel & Datacom Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Hathway BhawaniCabletel & Datacom Limited ('the Company') which comprise the Balance Sheet as atMarch 312017 the Statement of Profit and Loss (including Other Comprehensive Income)the Cash Flow Statement and the Statement of Changes in Equity for the year then endedand a summary of the significant accounting policies and other explanatory information(herein after referred to as "standalone financial statements").

Management's Responsibility for the Standalone 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 standalone financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges 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 the Act read with the relevant rules issued thereunder.

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 standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

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 theAct and the Rules made thereunder.

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under Section 143(10) of theAct. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone financial statements are free frommaterial misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the standalone financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thestandalone financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the standalone financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the standalone financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby theAct in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the Ind AS of the state ofaffairs of the Company as at March 312017 and its losses including (other comprehensiveincome) its cashflows and the changes in equity for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of Section 143(11) of the Act we givein the "Annexure A" a statement on the matters specified in the paragraph 3 and4 of the Order.

2. As required by Section 143 (3) of theAct we report that:

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary forthe 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 the Cash Flow Statement and theStatement of Changes in Equity dealt with by this Report are in agreement with the booksof account;

d) In our opinion the aforesaid standalone financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with relevant rulesissued thereunder;

e) On the basis of the written representations received from the directors as on March31 2017 taken on record by the Board of Directors none of the directors is disqualifiedas on March 312017 from being appointed as a director in terms of Section 164(2) of theAct;

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 B"; and

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 as amended bythe Companies (Audit and Auditors) Rules 2017 in our opinion and to the best of ourinformation and according to the explanations given to us:

i. The Company does not have any pending litigation which would impact its financialposition in its financial statement;

ii. The Company did not have any material foreseeable losses on long term contractsincluding derivative contracts;

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

iv. The Company has provided requisite disclosures in its standalone financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom November 8 2016 to December 30 2016 and these are in accordance with the books ofaccounts maintained by the Company. Refer Note 2.07 to the standalone financialstatements.

For G. M. Kapadia & Co.
Chartered Accountants
Firm's Registration No: 104767W
Atul Shah
Place : Mumbai Partner
Dated : May 23 2017 Membership No: 39569

"Annexure A" to the Independent Auditor's Report

Referred to in paragraph 1 under the heading "Report on Other Legal &Regulatory Requirements" of our report on even date to the financial statements ofthe Company for the year ended March 312017:

(i) (a) The Company has maintained records of Property Plant and Equipments otherthan distribution equipments showing particulars of assets including quantitative detailsand location except the following:

- Location-wise particulars of some of the Distribution Equipments like cabling andother line equipments. As explained to us nature of such assets is such that maintaininglocation-wise particulars is impractical; and

- Location-wise particulars of Access Devices with the end users. The Company hasmaintained proper records showing full particulars including quantitative details andsituation of Property Plant and Equipments

(b) According to the information and explanations given to us Property Plant andEquipments were physically verified during the year as per the programme of verificationwhich in ouropinion is reasonable. Material discrepancies arising on such physicalverification have been properly dealt within the books of accounts

(c) The Company does not hold any immovable properties. Accordingly the paragraph3(i)(c) of the Order regarding title deeds of immovable properties is not applicable;

(ii) According to the information and explanations given to us the Company does nothold any inventories and accordingly paragraph 3(ii) of the Order is not applicable;

(iii) The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Act. Accordingly paragraph 3(iii)(a) (b)and (c) of the Order are notapplicable;

(iv) The Company has not granted any loans or made any investments or provided anyguarantees or security to the parties covered under Sections 185 and 186 of the Act.Accordingly paragraph 3(iv) of the order is not applicable to the Company;

(v) In our opinion and according to the information and explanation given to us theCompany has not accepted deposits from the public and therefore the provisions sections73 to 76 or any other relevant provisions of the Act and the rules framed there under arenot applicable to the Company. We have been informed by the management that no order hasbeen passed by the Company Law Board or National Company Law Tribunal or Reserve Bank ofIndia or any Court or any other Tribunal in this regard;

(vi) The Central Government has not prescribed maintenance of cost records undersection 148(1) of the Act for the services rendered by the Company;

(vii) (a) The Company has generally been regular in depositing with appropriateauthorities undisputed statutory dues such as provident fund employees' state insuranceincome tax sales tax service tax duty of customs duty of excise value added tax cessand other applicable statutory dues. According to information and explanations given tous no undisputed statutory dues payable were in arrears as at March 312017 for a periodof more than six months from the date they became payable;

(b) According to the information and explanations given to us there are no outstandingdisputed dues payable by the Company in case of income tax sales tax service tax dutyof customs duty of excise value added tax cess and any other statutory dues as on March312017;

(viii) The Company has not taken any Loans from Banks Financial Institutions andGovernment during the year. Further the Company has not issued any debentures.Accordingly paragraph 3(viii) of the Order is not applicable;

(ix) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) nor any term loans during period under audit.Accordingly paragraph 3 (ix) of the Order is not applicable to the Company;

(x) During the course of our examination of the books and records of the Companycarried out in accordance with generally accepted auditing practices in India andaccording to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe year;

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not paid/provided managerialremuneration. Accordingly paragraph 3(xi) of the Order is not applicable;

(xii) In our opinion and according to information and explanation given to us theCompany is not a Nidhi Company. Accordingly paragraph 3 (xii) of the Order is notapplicable to the Company;

(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 sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the standalone financial statements as required by theapplicable accounting standards;

(xiv) Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to information and explanations givenby the management the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year.Accordingly paragraph 3(xvi) of the Order is not applicable to the Company;

(xv) Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements the Company has not entered into any non-cashtransactions with directors. We have been informed that no such transactions have beenentered into with person connected with directors. Accordingly paragraph 3(xv) of theOrder is not applicable to the Company; and

(xvi) In our opinion the Company is not required to be registered under section 45 IAof the Reserve Bank of India Act 1934 and accordingly the provision of clause 3(xvi) ofthe Order are not applicable to the Company.

For G. M. Kapadia & Co.
Chartered Accountants
Firm's Registration No: 104767W
Atul Shah
Place : Mumbai Partner
Dated : May 23 2017 Membership No: 39569

"Annexure B" to the Independent Auditor's Report

Referred to in paragraph 2(f) under the heading 'Report on Other Legal and RegulatoryRequirements' of our report on even date to the financial statements of the Company forthe year ended March 312017:

Report on the Internal Financial Controls under Section 143(3)(i) of the Act

We have audited the internal financial controls over financial reporting of HathwayBhawani Cabletel & Datacom Limited ('the Company') as of March 312017 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's Board of Directors are responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (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's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required undertheAct.

Auditor's 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 theAct to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects. Our audit involves performing procedures toobtain audit evidence about the adequacy of the internal financial controls system overfinancial reporting and their operating effectiveness. Our audit of internal financialcontrols over financial reporting included obtaining an understanding of internalfinancial controls over financial reporting assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the standalonefinancial 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 controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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 overfinancialreporting 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 controloverfinancial 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 March 312017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on issued by theInstitute of Chartered Accountants of India.

For G. M. Kapadia & Co.
Chartered Accountants
Firm's Registration No: 104767W
Atul Shah
Place : Mumbai Partner
Dated : May 23 2017 Membership No: 39569