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Birla Cable Ltd.

BSE: 500060 Sector: Engineering
BSE 00:00 | 29 Jan 58.35 0






NSE 00:00 | 29 Jan 58.55 0.20






OPEN 58.50
52-Week high 187.00
52-Week low 38.10
P/E 8.05
Mkt Cap.(Rs cr) 175
Buy Price 58.00
Buy Qty 94.00
Sell Price 60.00
Sell Qty 12.00
OPEN 58.50
CLOSE 58.35
52-Week high 187.00
52-Week low 38.10
P/E 8.05
Mkt Cap.(Rs cr) 175
Buy Price 58.00
Buy Qty 94.00
Sell Price 60.00
Sell Qty 12.00

Birla Cable Ltd. (BIRLACABLE) - Auditors Report

Company auditors report


Report on the Audit of the Standalone Ind AS Financial Statements Opinion

We have audited the accompanying standalone Ind AS financial statements of Birla CableLimited ("the Company") which comprise the Balance sheet as at March 31 2019the Statement of Profit and Loss including the statement of Other Comprehensive Incomethe Cash Flow Statement and the statement of Changes in Equity for the year then endedand notes to the financial statements including a summary of significant accountingpolicies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Companies Act 2013 as amended ("the Act") in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 312019its profit including other comprehensive income its cash flows and the changes in equityfor the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing (SAs) as specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the ‘Auditor'sResponsibilities for the Audit of the Standalone Ind AS Financial Statements' section ofour report. We are independent of the Company in accordance with the ‘Code of Ethics'issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules there under and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion on the Standalone Ind AS financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements 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 becommunicated in our report. We have fulfilled the responsibilities described in theAuditor's responsibility for the audit of the standalone Ind AS financial statementssection of our report including in relation to these matters. Accordingly our auditincluded the performance of procedures designed to respond to our assessment of the risksof material misstatement of the standalone Ind AS financial statements. The results of ouraudit procedures including the procedures performed to address the matters below providethe basis for our audit opinion on the accompanying standalone Ind AS financialstatements.

Key Audit Matters Auditors' Response
Revenue Recognition Principal Audit Procedures
(as described in note 33 of the financial statements) For the year ended March 312019 the Company has recognised revenue from contracts with customers amounting to 49532.01 Lacs. Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration entitled in exchange for those goods or services. Revenue is measured at the fair value of the consideration received or receivable taking into account contractual terms and conditions. Revenue is recognised to the extent it is probable that the economic benefits will flow to the Company and the revenue and costs if applicable can be measured reliably. Revenue is disclosed net of returns incentives and returns as applicable. Variable consideration includes volume discounts price concessions liquidity damages incentives etc. Assessed the Company's revenue recognition policy prepared as per Ind AS 115 ‘ Revenue from contracts with customers'.
• Assessed the design and tested the operating effectiveness of internal controls related to revenue recognition.
• Performed sample tests of individual sales transaction and traced to sales invoices sales order and other related documents further in respect of the samples checked that the revenue has been recognised as per the shipping terms.
• To test cut off selected sample of sales transaction made pre- and post-year end agreeing the period of revenue recognition to third party support such as transporter invoice and customer confirmation of receipt of goods.
• Performed monthly analytical procedures of revenue by streams to identify any unusual trends.
Accordingly due to the significant risk associated with revenue recognition in accordance with terms of Ind AS 115 ‘Revenue from contracts with customers' it was determined to be a key audit matter in our audit of the standalone Ind AS financial statements. • Obtained confirmations from customers on sample basis to support existence assertion of trade receivables and assessed the relevant disclosures made in the financial statements; to ensure revenue from contracts with customer are in accordance with the requirements of relevant accounting standards.

We have determined that there are no other key audit matter to communicate in eachreport Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual report 2018-19. Our opinionon the Standalone Ind AS financial statements does not cover the other information and wedo not express any form of assurance conclusion thereon.

In connection with our audit of the standalone Ind AS financial statements ourresponsibility is to read the other information and in doing so consider whether suchother information is materially inconsistent with the standalone Ind AS financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated. If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Responsibilities of Management for the Standalone Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these Standalone Ind AS financialstatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income cash flows and changes in equity of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind As) specified under section 133 of the Act read with [theCompanies (Indian Accounting Standards) Rules 2015 as amended. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and the designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Standalone Ind As financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the Standalone Ind AS financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Standalone Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the Standalone Ind ASfinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these Standalone Ind AS financial statements. As part of an audit inaccordance with SAs we exercise professional judgment and maintain professionalskepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the Standalone Ind ASfinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the Standalone IndAS financial statements including the disclosures and whether the Standalone Ind ASfinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Standalone Ind AS financialstatements for the financial year ended March 31 2019 and are therefore the key auditmatters. We describe these matters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.

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 in terms of Section 143(11) of the Act we give in"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

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 the Cash Flow Statement andStatement of Changes in Equity dealt with by this Report are in agreement with the booksof account

(d) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards prescribed under section 133 of the Act.

(e) On the basis of the written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 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".

(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 Ind AS 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.

For Jain Pramod Jain & Co.
Chartered Accountants
ICAI Firm Registration No. 016746N
Place : New Delhi Partner
Date : May 17 2019 Membership No. 010479

Annexure ‘A' to Independent Auditors' Report of BIRLA CABLE LIMITED

(Referred to in Paragraph 1 under the heading of "Report on Other Legal andRegulatory Requirements" of our report of even date)

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

(b) Fixed assets have been physically verified by the management according to theregular programme of periodical verification which in our opinion is reasonable havingregard to the size of the Company and the nature of its fixed assets. No materialdiscrepancies were noticed on such verification;

(c) The title deeds of immovable properties are held in the name of the company.

ii. The inventories of the Company at all its locations (except stock in transit) havebeen physically verified by the management at reasonable intervals and no discrepancieswere noticed on physical verification of inventories except on physical verification ofstores and spares which were not material.

iii. The Company has not granted any loan to companies firms or other parties coveredin the Register maintained under section 189 of the Act. Therefore the provisions ofclause 3 (iii) of the order are not applicable to the company and hence not commentedupon.

iv. In our opinion and according to the information and explanations given to us thecompany has complied with provisions of section 185 and 186 of the Companies Act 2013with respect of loans investments guarantees and securities. .

v. The Company has not accepted any deposit from public.

vi. We have broadly reviewed the books of account maintained by the Company pursuant tothe rules made by the Central Government for the maintenance of cost records under Section148(1) of the Companies Act 2013 and are of the opinion that prima-facie prescribedaccounts and records have been made and maintained. We have however not made a detailedexamination of the said records with a view to determine whether they are accurate andcomplete;

vii. (a) According to the information and explanations and records of the Company thecompany is regular in depositing undisputed statutory dues including Provident FundIncome tax Sales tax Service tax Goods and Services Tax Custom Duty Excise DutyValue Added Tax Cess and other statutory dues with the appropriate authorities. There areno arrears of outstanding statutory dues for a period of more than six months from thedate they became payable as on 31st March 2019;

(b) According to the records and information and explanations given to us there are nodues in respect of custom duty income tax or sales tax or service tax or Goods andService Tax or excise duty or value added tax that have not been deposited on account ofany dispute.

viii. The Company has not defaulted in repayment of loans or borrowings to banks.

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

x. Based upon the audit procedure performed and information and explanation given tous we report that no fraud by the company or any fraud on the company by its officers oremployees has been noticed or reported during the course of our audit.

xi. Managerial Remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provision of Section 197 read with schedule V of the CompaniesAct 2013.

xii. Provision of Nidhi Company is not applicable to the Company.

xiii. According to the information and explanation give to us and based on ourexamination of the records of the company all transactions with the related parties arein compliance with Section 177 and 188 of the Companies Act 2013 and the details havebeen disclosed in the financial statements etc as required by the applicable accountingstandard.

xiv. The company has not made any preferential allotment or private placements ofshares or fully or partly convertible debentures during the year under review.

xv. The company has not entered into any non-cash transaction with Directors or personsconnected with him.

xvi. The company is not required to be registered under section 45-1A of the ReserveBank of India Act 1934.

For Jain Pramod Jain & Co.
Chartered Accountants
ICAI Firm Registration No. 016746N
Place : New Delhi Partner
Date : May 17 2019 Membership No. 010479

Annexure B to the independent Auditors' report of even date on the standalone FinancialStatement of Birla Cable Limited Report on the Internal Financial Controls under Clause(i) of sub-section 3 of section 143 of the Companies Act 2013

We have audited the internal financial controls over financial reporting of Birla CableLimited as at March 312019 in conjunction with our audit of the standalone financialstatements 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 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 "the Internal Financial Controls Over FinancialReporting issued by the institute of Chartered Accountants of India." Theseresponsibilities include the design implementation and maintenance of adequate InternalFinancial Controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required 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 Guidance note on Audit of Internal Financial Controls over Financial Reporting(the" Guidance Note") and the Standard on Auditing issued by ICAI and deemed tobe prescribed under section 143 (10) of the Companies Act 2013 to the extent applicableto an audit of internal financial controls both applicable to an audit of InternalFinancial Controls and both issued by the Institute of Chartered Accountants of India.Those standards and the Guidance Note require that we Comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate Internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 and 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 statement whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial 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 details accurately and fairly reflect the transactions anddisposition of the assets of the company;(2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statement 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 limitation 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.


In our opinion the Company has in all material respect an adequate internal financialcontrols systems over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at March 31 2019 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 Jain Pramod Jain & Co.
Chartered Accountants
ICAI Firm Registration No. 016746N
Place : New Delhi Partner
Date : May 17 2019 Membership No. 010479

Sensitivity on Variable Rate Borrowings

Particulars 2018-19 2017-18
Interest Rate increase by 0.25% (14.04) (9.79)
Interest Rate decrease by 0.25% 14.04 9.79

(iii) Commodity Price Risk:

The Company is affected by the price volatility of certain commodities. Its operatingactivities require the purchase of raw material for manufacturing of Cables and thereforerequire a continuous supply of certain raw materials such as optical fibre plastic andpolymers copper etc. To mitigate the commodity price risk the company has an approvedsupplier base to get the best competitive prices for the commodities and to manage thecost without any compromise on quality.

(iv) Equity Price Risk:

The Company's exposure to equity instruments price risk arises from investments held bythe company and classified in the Balance Sheet at fair value through OCI. Having regardto the nature of securities intrinsic worth intent and long term nature of investment insecurities held by the company fluctuation in their prices are considered acceptable anddo not warrant any management estimation.

(b) Credit Risk:

Credit risk is the risk that counterparty might not honour its obligations under afinancial instrument or customer contract leading to a financial loss. The Company isexposed to credit risk from its operating activities (primarily Trade Receivables) andcorporate guarantee given to banks as collateral against term loan(s) and working capitalcredit facilities to a body Corporate Vindhya Telelinks Limited.

(i) Trade Receivables:

Customer credit risk is managed based on Company's established policy procedures andcontrols relating to customer credit risk management. Company assesses the credit qualityof the counterparties taking into account their financial position past experience andother factors. Credit risk is reduced by receiving pre-payments and export letter ofcredit to the extent possible. Outstanding customer receivables are regularly monitoredand assessed. The Company follows the simplified approach for recognition of impairmentloss and the same if any is provided as per its respective customer's credit risk as onthe reporting date.

The lenders assesses the credit quality of Vindhya Telelinks Limited and afterconsidering its financial position intrinsic value its business profile and futureprospects Credit risk is low. The Company has also accepted corporate guarantee fromVindhya Telelinks Limited (Cross Corporate Guarantee) against total credit facilities andterm loan(s) availed from consortium of banks.

(ii) Deposits with Bank:

The fixed deposits with banks predominantly comprises of margin money against bankguarantees letter(s) of credit etc. as per the terms of sanction of non fund basedcredit facilities and in the opinion of the Company are not exposed to credit risk basedon historical records of no or stray cases of invocation of bank guarantees ordevelopments of LC's.

(c) Liquidity Risk:

Liquidity risk is the risk where the Company may encounter difficulty in meeting theobligations associated with its financial liabilities that are settled by delivering cashor another financial asset. The Company's approach is to ensure as far as possible thatit will have sufficient liquidity to meet its liabilities when due.

The table below summarises the maturity profile of Company's financial liabilitiesbased on contractual undiscounted payments:

(Rs in lakhs)

Particulars Carrying Value Payable on Demand* Upto 12 Months 1 to 5 years
As at 31st March 2019
Borrowings* 5935.40 3971.79 670.27 1293.34
Trade and Other Payables 9893.06 39.20 9853.86 -
Total 15828.46 4010.99 10524.13 1293.34
As at 31st March 2018
Borrowings* 4459.61 2775.42 489.50 1194.69
Trade and Other Payables 7992.46 29.72 7962.74 -
Total 12452.07 2805.14 8452.24 1194.69

* Including working capital facility from consortium banks renewed every year.

44. Capital Management:

The Company's policy is to maintain an adequate capital base so as to maintaincreditworthiness and to sustain future growth. Capital includes issued capital securitiespremium and all other equity reserves attributable to equity holders.

The Company monitors capital using a gearing ratio which is net debt divided by totalcapital plus net debt. Net Debt is calculated as borrowings less cash and cashequivalents.

(Rs in lakhs)

Particulars As at 31s1 March 2019 As at 31st March 2018
Borrowings 5935.40 4459.61
Less: Cash and Cash Equivalents 49.98 57.98
Net Debt 5885.42 4401.63
Equity Share Capital 3000.00 3000.00
Other Equity 14173.08 9144.30
Total Capital 17173.08 12144.30
Capital and Net Debt 23058.50 16545.93
Gearing Ratio 0.26 0.27

45. Previous year figures have been regrouped/ rearranged wherever considerednecessary to confirm to current year's classification.