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Universal Cables Ltd.

BSE: 504212 Sector: Engineering
NSE: UNIVCABLES ISIN Code: INE279A01012
BSE LIVE 12:22 | 22 Sep 147.55 -6.35
(-4.13%)
OPEN

154.95

HIGH

154.95

LOW

146.00

NSE 12:06 | 22 Sep 148.10 -6.60
(-4.27%)
OPEN

155.00

HIGH

155.00

LOW

145.55

OPEN 154.95
PREVIOUS CLOSE 153.90
VOLUME 34985
52-Week high 161.70
52-Week low 65.25
P/E 18.47
Mkt Cap.(Rs cr) 512
Buy Price 147.20
Buy Qty 47.00
Sell Price 148.30
Sell Qty 47.00
OPEN 154.95
CLOSE 153.90
VOLUME 34985
52-Week high 161.70
52-Week low 65.25
P/E 18.47
Mkt Cap.(Rs cr) 512
Buy Price 147.20
Buy Qty 47.00
Sell Price 148.30
Sell Qty 47.00

Universal Cables Ltd. (UNIVCABLES) - Auditors Report

Company auditors report

TO THE MEMBERS OF UNIVERSAL CABLES LIMITED Report on the Standalone FinancialStatements

We have audited the accompanying standalone fi nancial statements of UNIVERSALCABLES LIMITED ("the Company") which comprise the Balance Sheet as at 31stMarch 2017 the Statement of Profi t and Loss the Cash Flow Statement for the year thenended and a summary of the signifi cant 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 fi nancial statements that give a true and fair view of the fi nancialposition fi nancial performance and cash fl ows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecifi ed under Section 133 of the Act as applicable read with Rule 7 of the Companies(Accounts) Rules 2014 (as amended). This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal fi nancial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone fi nancial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone fi nancial 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 specifi ed 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 standalone fi nancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone fi nancial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe standalone fi nancial statements whether due to fraud or error. In making those riskassessments; the auditor considers internal fi nancial control relevant to the Company'spreparation of the standalone fi nancial statements that give a true and fair view inorder to 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 fi nancial statements.

We believe that the audit evidence we have obtained is suffi cient and appropriate toprovide a basis for our audit opinion on the standalone fi nancial statements.

Opinion

In our opinion and to the best of our information and knowledge and according to theexplanations given to us the aforesaid standalone fi nancial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2017 and its profi t and its cash fl ows for theyear 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 Government of India in terms of sub-section (11) of section 143 of the Actand on the basis of such checks of the books and records of the Company as we consideredappropriate and according to the information and explanations given to us we give in the"Annexure A" a statement on the matters specifi ed in the paragraphs 3 and 4 ofthe said 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 Profi t 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 fi nancial statements comply with theAccounting Standards specifi ed under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014 (as amended).

(e) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors is disqualified as on 31st March 2017 from being appointed as a director in terms of Section 164 (2)of the Act.

(f) With respect to the adequacy of the internal fi nancial controls over fi nancialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

(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. TheCompany has disclosed the impact of pending litigations on its fi nancial position in itsstandalone fi nancial statements – Refer Note 36 to the standalone fi nancialstatements; ii. The Company has made provision as required under the applicable law oraccounting standard for material foreseeable losses if any on long-term contractsincluding derivative contracts. iii. There has been no delay in transferring amountsrequired to be transferred to the Investor Education and Protection Fund by the Company.iv. The Company has provided requisite disclosures in its standalone fi nancial statementsas to holdings as well as dealings in Specifi ed Bank Notes during the period from 8November 2016 to 30 December 2016 and these are in accordance with the books of accountsmaintained by the Company. Refer Note 43 to the standalone fi nancial statements.

For V. Sankar Aiyar & Co.
Chartered Accountants
ICAI Firm Regn. No. 109208W
R. Raghuraman
Partner
Membership No. 081350
Place : New Delhi
Dated : 5th May 2017

"Annexure A" referred to in the Independent Auditors' report to theshareholders of UNIVERSAL CABLES LIMITED on the accounts for the year ended 31st March2017 i a) The Company is maintaining proper records showing full particularsincluding quantitative details and situation of fi xed assets. b) Major items of fi xedassets were physically verifi ed during the year by the management in accordance withregular programme of verifi cation which in our opinion provides for physical verification of all the fi xed assets at reasonable intervals. No material discrepancies werenoticed on such verifi cation. c) In our opinion and according to the information andexplanations given to us and representation obtained from the management the title deedsof immovable properties are held in the name of the Company. ii The inventories exceptstock in transit have been physically verifi ed by the management at reasonable intervalsduring the year and no material discrepancies were noticed on physical verifi cation. iiiThe Company has not granted any loans during the year secured or unsecured to companiesfi rms limited liability partnerships or other parties required to be covered in theregister maintained under section 189 of the Act 2013. Therefore the provisions of clause3(iii) (a) (b) and (c) of the Order are not applicable. iv In our opinion and accordingto the information and explanations given to us and the representation obtained from themanagement the Company has not granted any loans or provided any guarantees or security tothe parties covered under Section 185 of the Act. The Company has complied with theprovisions of Section 186 of the Act in respect of investments made or loans or guaranteeor security provided to parties covered under Section 186. v The Company has not accepteddeposits during the year from the public within the provisions of section 73 to 76 or anyother provisions of the Companies Act 2013 and the Rules framed there under. vi We havebroadly reviewed the books of accounts maintained by the Company pursuant to rules madeby the Central Government for the maintenance of cost records under subsection (1) ofsection 148 of the Act and are of the opinion that prima facie the prescribed accountsand records have been maintained and the required statement are in the process ofcompilation. We have not however made a detailed examination of the records with a viewto determine whether they are accurate or complete. vii a) According to the records of theCompany the Company has been generally regular in depositing undisputed statutory duesincluding provident fund employees' state insurance income-tax sales tax service taxduty of customs duty of excise value added tax cess and any other statutory dues withthe appropriate authorities. There were no arrears of undisputed statutory dues as at 31stMarch 2017 which were outstanding for a period of more than six months from the datethey became payable. b) There are no disputed dues which have remained unpaid as on 31stMarch 2017 on account of Income-tax sales-tax value added tax and service tax. viii Onthe basis of verifi cation of records the Company has not defaulted in repayment of loansor borrowings to banks. The Company did not have any outstanding debentures and loans fromfi nancial institutions or government during the year. ix According to the information andexplanations given to us term loans were applied for the purpose for which they wereobtained. The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments).

x Based on the audit procedure performed and the representation obtained from themanagement we report that no case of material fraud by the Company or by its offi cers oremployees on the Company has been noticed or reported during the year under audit. xiAccording to the information and explanations given to us the Company has paid/providedmanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of section 197 read with schedule V to the Companies Act. xii In our opinionand according to the information and explanations given to us the Company is not a nidhicompany. Accordingly paragraph 3(xii) of the Order is not applicable. xiii According tothe information and explanations given to us and based on our examination of the recordsof the Company transactions with the related parties are in compliance with sections 177and 188 of the Act where applicable and details of such transactions have been disclosedin the standalone fi nancial statements as required by the applicable accountingstandards. xiv According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. 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 and according to the information andexplanations given to us the Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934.

For V. Sankar Aiyar & Co.
Chartered Accountants
ICAI Firm Regn. No. 109208W
R. Raghuraman
Partner
Membership No. 081350
Place : New Delhi
Dated : 5th May 2017

"Annexure B" referred to in the Independent Auditors' report to theshareholders of UNIVERSAL CABLES LIMITED on the accounts for the year ended 31st March2017

We have audited the internal fi nancial controls over fi nancial reporting of theCompany as of March 31 2017 in conjunction with our audit of the standalone fi nancialstatements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internal financial controls based on the internal control over fi nancial 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 fi nancial controls that were operating effectively for ensuring theorderly and effi cient 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 fi nancial information as required under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal fi nancialcontrols over fi nancial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal fi nancial 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 fi nancial controls over fi nancial reporting was establishedand maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal fi nancial controls system over fi nancial reporting and their operatingeffectiveness. Our audit of internal fi nancial controls over fi nancial reportingincluded obtaining an understanding of internal fi nancial controls over fi nancialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material misstatement of the fi nancial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is suffi cient and appropriate toprovide a basis for our audit opinion on the Company's internal fi nancial controls systemover fi nancial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company's internal fi nancial control over fi nancial reporting is a process designedto provide reasonable assurance regarding the reliability of fi nancial reporting and thepreparation of fi nancial statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal fi nancial control over fi nancialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly refl ect the transactions anddispositions of the assets of the

Company; (2) provide reasonable assurance that transactions are recorded as necessaryto permit preparation of fi nancial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the Company are being madeonly in accordance with authorisations of management and directors of the Company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the Company's assets that could have a material effecton the fi nancial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal fi nancial controls over fi nancialreporting 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 fi nancial controls over fi nancialreporting to future periods are subject to the risk that the internal fi nancial controlover fi nancial 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 internal financial controls system over fi nancial reporting and such internal fi nancial controlsover fi nancial reporting were operating effectively as at March 31 2017 based on theinternal control over fi nancial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note issued

For V. Sankar Aiyar & Co.
Chartered Accountants
ICAI Firm Regn. No. 109208W
R. Raghuraman
Partner
Membership No. 081350
Place : New Delhi
Dated : 5th May 2017