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Hathway Bhawani Cabletel & Datacom Ltd.

BSE: 509073 Sector: Services
NSE: N.A. ISIN Code: INE525B01016
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OPEN 4.35
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VOLUME 99
52-Week high 5.07
52-Week low 3.16
P/E
Mkt Cap.(Rs cr) 4
Buy Price 4.35
Buy Qty 1.00
Sell Price 0.00
Sell Qty 0.00
OPEN 4.35
CLOSE 4.35
VOLUME 99
52-Week high 5.07
52-Week low 3.16
P/E
Mkt Cap.(Rs cr) 4
Buy Price 4.35
Buy Qty 1.00
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 Sheetas at March 31 2016 the Statement of Profit and Loss the Cash Flow Statement for theyear then ended and a summary of significant accounting policies and other explanatoryinformation.

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 and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial 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 the Act and the Rules made there under.

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 performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the 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 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 Companyas at March 31 2016 and its loss and its cash flows 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")as amended issued by the Central Government of India in terms of section 143(11) of theAct we give in the "Annexure A" statement on the matters specified in paragraph3 and 4 of the Order.

2. 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 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 standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

(e) On the basis of the written representations received from the directors as on March31 2016 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2016 from being appointed as a director in terms of Section164(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 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 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company does not have any pending litigations which would impact its financialposition ;

ii. The Company did not have any long term contract 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.

For G. M. Kapadia & Co
Chartered Accountants
Firm Registration No.104767W
Atul Shah
Partner
Membership No. 39569
Place : Mumbai
Date: May 24 2016

"Annexure A" to the Auditor's Report

Referred to in Paragraph 1 under the heading "Report on Other Legal and RegulatoryRequirements" of our report of even date to the financial statements of the Companyfor the year ended March 31 2016:

i. (a) The company has maintained records of fixed assets other than distributionequipments showing particulars of assets including quantitative details and locationexcept 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 subscribers. The Company hasmaintained proper records showing full particulars including quantitative details andsituation of fixed assets;

(b) According to the information and explanations given to us fixed assets other thandistribution equipments including Cable TV / Internet Access Devices with the subscriberswere physically verified during the year as per the programme of verification which inour opinion is reasonable. Material discrepancies arising on such physical verificationhave been properly dealt within the books of accounts. However in absence of physicalverification for distribution equipments and access devices discrepancies have not beenascertained and not 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 not applicable;

iv. According to the information and explanations given to us the provisions ofSection 185 and 186 of the Act with respect to loans and investments made are notapplicable to the Company.

v. In our opinion and according to the information and explanations given to us theCompany has not accepted deposits from the public and therefore the provisions containedin sections 73 to 76 or any other relevant provisions of the Act and Rules framed thereunder are not applicable to the Company.

We have been informed that no order has been passed by Company Law Board or NationalCompany Law Tribunal or Reserve Bank of India or any Court or any other Tribunal;

vi. The Central Government has prescribed maintenance of cost records under section148(1) of the Act in respect of certain service activities of the Company. We have broadlyreviewed the accounts and records of the Company in this connection and are of theopinion that prima facie the prescribed accounts and records have been made andmaintained subject to our comments as stated above. We have not however made a detailedexamination of the same;

vii. (a) Based on the records produced before us the Company has been generallyregular in depositing with appropriate authorities undisputed statutory dues such asprovident fund employees state insurance income-tax sales-tax wealth tax service taxduty of customs duty of excise value added tax cess and other statutory dues applicableto it. According to the information and explanations given to us no undisputed amountpayable in respect of outstanding statutory dues were in arrears as at March 31 2016 fora period of 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 March31 2016;

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. In our opinion and according to the information and explanations given to us andbased on the records examined by us the term loan have been applied for the purpose forwhich the loan were obtained; However the Company did not raise any money by way ofinitial public offer or further public offer or debt instrument;

x. During the course of our examination of the books and records of the Company carriedout in accordance with generally accepted auditing practices in India and according to theinformation and explanations given to us no material fraud by the Company or on theCompany by its officers or employees 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 not paid/provided managerialremuneration. Accordingly paragraph 3(xi) of the Order is not applicable;

xii. The Company is not a Nidhi company. Accordingly paragraph 3(xii) of the Order isnot 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 sections 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. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placements of shares or partly convertible debentures during theyear. Accordingly paragraph 3(xiv) of the Order is not applicable;

xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable;

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 paragraph 3(xvi) of the Order isnot applicable to the Company.

For G. M. Kapadia & Co.
Chartered Accountants
Firm Registration No.104767W
Atul Shah
Partner
Membership No. 39569
Place : Mumbai
Date: May 24 2016

"Annexure B" to the Auditor's Report

Referred to in Paragraph 2(f) under the heading "Report on Other Legal andRegulatory Requirements" of our report of even date to the financial statements ofthe Company for the year ended March 31 2016

We have audited the internal financial controls over financial reporting of HATHWAYBHAWANI CABLETEL & DATACOM LIMITED ("the Company") as of March 31 2016 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 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 Reportingissued by the Institute of Chartered Accountants of India ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

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 on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate 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 judgment 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 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 authorizations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 March 31 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For G. M. Kapadia & Co.
Chartered Accountants
Firm Registration No.104767W
Atul Shah
Partner
Membership No. 39569
Place : Mumbai
Date: May 24 2016