TO THE MEMBERS OF BIRLA CABLE LIMITED
Report on the Audit of the Standalone Ind AS Financial StatementsOpinion
We have audited the accompanying Standalone Ind AS financial statementsof Birla Cable Limited ("the Company") which comprise the Balance sheet as atMarch 312022 the Statement of Profit and Loss including the statement of OtherComprehensive Income the Cash Flow Statement and the statement of Changes in Equity forthe year then ended and notes to the financial statements including a summary ofsignificant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Standalone Ind AS financial statements give theinformation required by the Companies Act 2013 as amended ("the Act") in themanner 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 March31 2022 its profit including other comprehensive income its cash flows and the changesin equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the Standalone Ind AS financial statements inaccordance with the Standards on Auditing (SAs) as specified under section 143(10) of theAct. Our responsibilities under those Standards are further described in theAuditor?s Responsibilities for the Audit of the Standalone Ind AS FinancialStatements? section of our report. We are independent of the Company in accordancewith the Code of Ethics? issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules there under and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the Standalone Ind ASfinancial statements.
Key Audit Matters
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the Standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the Standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matter described below to bekey audit matters to be communicated in our report.
|S. No. ||Key Audit Matter ||Auditor?s Response |
|1 ||Valuation of Trade Receivable ||Our audit procedure included among others: |
| ||Trade receivables is a significant item in the Company?s financial statements as at March 312022 and assumptions used for estimating the credit loss on certain receivables is an area which is determined by management?s judgment. || Evaluated the accounting policy of the company. |
| || || Inquired with senior management regarding status of collectability of the receivable. |
| || || Amount recovered subsequent to the Balance Sheet date. |
| ||The Company makes an assessment of the estimated credit losses on certain trade receivables based on credit risk project status past history latest discussion/ correspondence with the customer. || |
| || || Discussion of material outstanding balances with the audit committee. |
| || || Assessed the information/assumptions used by the Management to determine the expected credit losses by considering credit risk of the customer cash collection and the level of credit loss over time. |
| ||Given the significance of these receivables in the financial statements as at 31st March 2022 we determined this to be a key audit matter. || |
| || ||Based on our work as stated above no significant deviations were observed in respect of management?s assessment of valuation of trade receivables. |
Information Other than the Financial Statements and Auditor?sReport Thereon
The Company?s Board of Directors is responsible for the otherinformation. The other information comprises the information included in the StandaloneReport 2021-22. Our opinion on the standalone Ind AS financial statements does not coverthe other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the Standalone Ind AS financialstatements our responsibility is to read the other information and in doing so considerwhether such other information is materially inconsistent with the Standalone Ind ASfinancial statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated. If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.
Responsibilities of Management for the Standalone Ind AS FinancialStatements
The Company?s Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these StandaloneInd AS financial statements that give a true and fair view of the financial positionfinancial performance including other comprehensive income cash flows and changes inequity of the Company in accordance with the accounting principles generally accepted inIndia including the Indian Accounting Standards (Ind AS) specified under section 133 ofthe Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and the 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 standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
In preparing the standalone Ind AS financial statements management isresponsible for assessing the Company?s ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing theCompany?s financial reporting process.
Auditor?s Responsibilities for the Audit of the Standalone Ind ASFinancial Statements
Our objectives are to obtain reasonable assurance about whether theStandalone Ind AS financial statements as a whole are free from material misstatementwhether due to fraud or error and to issue an auditor?s report that includes ouropinion. Reasonable assurance is a high level of assurance but is not a guarantee that anaudit conducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone Ind AS financialstatements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of theStandalone Ind AS financial statements whether due to fraud or error design and performaudit procedures responsive to those risks and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.
Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls system in place and theoperating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management?s use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company?s ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor?sreport to the related disclosures in the financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor?s report. However future events or conditionsmay cause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of theStandalone Ind AS financial statements including the disclosures and whether thestandalone Ind AS financial statements represent the underlying transactions and events ina manner that achieves fair presentation.
We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalone IndAS financial statements for the financial year ended March 31 2022 and are therefore thekey audit matters. We describe these matters in our auditor?s report unless law orregulation precludes public disclosure about the matter or when in extremely rarecircumstances we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits 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) ofthe Act we give in "Annexure A" a statement on the matters specified inparagraphs 3 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 explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.
(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet the Statement of Profit and Loss the Cash FlowStatement and Statement of Changes in Equity dealt with by this Report are in agreementwith the books of account.
(d) In our opinion the aforesaid Ind AS financial statements complywith the Indian Accounting Standards prescribed under section 133 of the Act.
(e) On the basis of the written representations received from thedirectors as on 31st March 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2022 from being appointed as a director interms of Section 164(2) of the Act.
(f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B".
(g) In our opinion Managerial remuneration for the year ended31.03.2022 has been paid /provided by the company to its director in accordance with theprovisions of section 197 read with schedule V to the Act.
(h) With respect to the other matters to be included in theAuditor?s Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:
i. The Company has disclosed the impact of pending litigations on itsfinancial position in its Ind AS financial statements;
ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses;
iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company;
iv. The Management has represented that to the best of its knowledgeand belief no funds (which are material either individually or in the aggregate) havebeen advanced or loaned or invested (either from borrowed funds or share premium or anyother sources or kind of funds) by the Company to or in any other person or entityincluding foreign entity ("Intermediaries") with the understanding whetherrecorded in writing or otherwise that the Intermediary shall whether directly orindirectly lend or invest in other persons or entities identified in any manner whatsoeverby or on behalf of the Company ("Ultimate Beneficiaries") or provide anyguarantee security or the like on behalf of the Ultimate Beneficiaries;
v. The Management has represented that to the best of its knowledgeand belief no funds (which are material either individually or in the aggregate) havebeen received by the Company from any person or entity including foreign entity("Funding Parties") with the understanding whether recorded in writing orotherwise that the Company shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theFunding Party ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries;
vi. Based on the audit procedures that have been considered reasonableand appropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (i) and (ii) of Rule 11(e) as providedunder (a) and (b) above contain any material misstatement; and
vii. (a) The final dividend proposed in the previous year declared andpaid by the Company during the year is in accordance with section 123 of the CompaniesAct 2013 to the extent it applies to payment of dividend.
(b) The Board of Directors of the Company have proposed dividend forthe year which is subject to the approval of the members at the ensuing Annual GeneralMeeting. The amount of dividend proposed is in accordance with section 123 of the Act asapplicable.
Annexure A? to Independent Auditors? Report of BIRLACABLE LIMITED
(Referred to in Paragraph 1 under the heading of "Report on OtherLegal and Regulatory Requirements" of our report of even date)
i. In respect of the Company?s Property Plant and Equipment andIntangible Assets:
(a) (A) The Company has maintained proper records showing fullparticulars including quantitative details and situation of
Property Plant and Equipment.
(B) The Company has maintained proper records showing full particularsof intangible assets.
(b) Property Plant and Equipment have been physically verified by themanagement according to the regular programme of periodical verification which in ouropinion is reasonable having regard to the size of the Company and the nature of itsProperty Plant and Equipment. No material discrepancies were noticed on suchverification.
(c) According to the information and explanations given to us and onthe basis of our examination of records of the Company the title deeds of immovableproperties (other than properties where the company is the lessee & the leaseagreements are duly executed in favour of the lessee) disclosed in the financial statementare held in the name of the Company.
(d) The Company has not revalued any of its Property Plant andEquipment and intangible assets during the year.
(e) According to the information and explanation provided to us noproceedings have been initiated during the year or are pending against the Company as atMarch 312022 for holding any Benami property under the Benami Transactions (Prohibition)Act 1988 (as amended in 2016) and rules made thereunder.
ii. (a) The inventories of the company at all its locations (exceptstock in transit) have been physically verified by the management
at reasonable intervals. In our opinion the procedure and coverage ofsuch physical verification by the management is appropriate. Further no materialdiscrepancies were noticed on such physical verification by the management.
(b) According to the information and explanation provided to usworking capital limit in excess of Rs 5 crore has been sanctioned/ renewed from banksduring the year. Further based on our examination of records of the company thequarterly statement/ returns filed by the company with such banks pursuant to suchworking capital limits are materially in agreement with the books of accounts of thecompany.
iii. The Company has not made investments in provided any guarantee orsecurity or granted any loans secured or unsecured to companies firms limitedliability partnership or any other parties except unsecured loan to employees as percompany?s established policy during the year in respect of which:
(a) The Company has not provided any loans or advances in the nature ofloans or stood guarantee or provided security to any other entity during the year andhence reporting under clause 3(iii) (a) of the Order is not applicable.
(b) In our opinion the terms and conditions of the grant of loans oradvances in the nature of loans during the year are prima facie not prejudicial to theCompany?s interest.
(c) respect of loans and advances in the nature of loan granted by theCompany the schedule of repayment of principal is stipulated and the repayments ofprincipal amounts is regular as per stipulation.
(d) In respect of loans or advances in the nature of loans granted bythe Company there is no overdue amount in respect of loans granted to such employees.
(e) No loan or advances in the nature of loans granted by the Companywhich has fallen due during the year has been renewed or extended or fresh loans grantedto settle the over dues of existing loans given to the same parties.
(f) The Company has not granted any loans or advances in the nature ofloans either repayable on demand or without specifying any terms or period of repaymentduring the year. Hence reporting under clause 3(iii) (f) is not applicable.
iv. In our opinion and according to the information and explanationgiven to us the Company has complied with the provisions of Sections 185 and 186 of theCompanies Act 2013 in respect of loans investments made and guarantees and securitiesprovided as applicable.
v. The Company has not accepted any deposit or amounts which are deemedto be deposits within section 73 to 76 of the act and the companies (Acceptance ofdeposit) Rules 2014 (as amended). Hence reporting under clause 3(v) of the Order is notapplicable.
vi. We have broadly reviewed the books of account maintained by theCompany pursuant to the rules made by the Central Government for the maintenance of costrecords under Section 148(1) of the Companies Act 2013 and are of the opinion thatprima-facie prescribed accounts and records have been made and maintained. We havehowever not made a detailed examination of the said records with a view to determinewhether they are accurate and complete.
vii. In respect of statutory dues:
(a) In our opinion the Company has generally been regular indepositing undisputed statutory dues including Goods and Services tax Provident FundEmployees? State Insurance Income Tax Sales Tax Service Tax duty of Custom dutyof Excise Value Added Tax Cess and other material statutory dues applicable to it withthe appropriate authorities.
There were no undisputed amounts payable in respect of Goods andServices tax Provident Fund Employees? State Insurance Income Tax Sales TaxService Tax duty of Custom duty of Excise Value Added Tax Cess and other materialstatutory dues in arrears as at March 31 2022 for a period of more than six months fromthe date they became payable.
(b) Details of statutory dues referred to in sub-clause (a) above whichhave not been deposited as on March 312022 on account of disputes are given below:
|Nature of the statute ||Nature of dues ||Forum where the dispute is pending ||Period to which the amount relates ||Amount in lakhs |
|The Madhya Pradesh Municipal Corporation Act1956 ||Property tax ||High Court of Madhya Pradesh Jabalpur ||September 2003 to March 2022 ||196.55 |
|The Income Tax Act1961 ||Tax deducted at source ||Income Tax Appellate Tribunal ||AY 2016-17 ||0.83 |
viii. There were no transactions relating to previously unrecordedincome that have been surrendered or disclosed as income during the year in the taxassessments under the Income Tax Act 1961 (43 of 1961).
ix. (a) The Company has not defaulted in repayment of loans orborrowings or in the payment of interest to any lender.
(b) Company has not been declared wilful defaulter by any bank orfinancial institution or government or any government authority or by other lender.
(c) The Company has not taken any term loan during the year and thereare no outstanding term loans at the beginning of the year and hence reporting underclause 3(ix)(c) of the Order is not applicable.
(d) On an overall examination of the financial statements of theCompany funds raised on short-term basis have prima facie not been used during the yearfor long-term purposes by the Company.
(e) On an overall examination of the financial statements of theCompany the Company has not taken any funds from any entity or person on account of or tomeet the obligations of its subsidiary.
(f) The Company has not raised any loans during the year on the pledgeof securities held in its subsidiary and hence reporting on clause 3(ix) (f) of the Orderis not applicable.
x. (a) The Company has not raised moneys by way of initial public offeror further public offer (including debt instruments) during the year and hence reportingunder clause 3(x)(a) of the Order is not applicable.
(b) During the year the Company has not made any preferentialallotment or private placement of shares or convertible debentures (fully or partially oroptionally) and hence reporting under clause 3(x) (b) of the Order is not applicable.
xi. (a) No fraud by the Company and no material fraud on the Companyhas been noticed or reported during the year.
(b) No report under sub-section (12) of section 143 of the CompaniesAct has been filed in Form ADT-4 as prescribed under rule 13 of Companies (Audit andAuditors) Rules 2014 with the Central Government during the year and upto the date ofthis report.
(c) The company has not received any whistle blower complaints hencereporting under clause 3(xi)(c) is not applicable.
xii. The Company is not a Nidhi Company and hence reporting underclause (xii) of the Order is not applicable.
xiii. In our opinion the Company is in compliance with Section 177 and188 of the Companies Act 2013 with respect to applicable transactions with the relatedparties and the details of related party transactions have been disclosed in thestandalone financial statements as required by the applicable accounting standards.
xiv. (a) In our opinion the Company has an adequate internal auditsystem commensurate with the size and the nature of its business. (b) We have consideredthe internal audit reports for the year under audit.
xv. The Company has not entered in to any non-cash transaction withdirector or persons connected with them.
xvi. (a) In our opinion the Company is not required to be registeredunder section 45-IA of the Reserve Bank of India Act 1934.
Hence reporting under clause 3(xvi) (a) (b) and (c) of the Order isnot applicable.
(b) In our opinion there is no core investment company within theGroup (as defined in the Core Investment Companies (Reserve Bank) Directions 2016) andaccordingly reporting under clause 3(xvi) (d) of the Order is not applicable.
xvii. The Company has not incurred cash losses during the financialyear covered by our audit and the immediately preceding financial year.
xviii. There has been no resignation of the statutory auditors of theCompany during the year.
xix. On the basis of the financial ratios ageing and expected dates ofrealization of financial assets and payment of financial liabilities other informationaccompanying the financial statements and our knowledge of the Board of Directors andManagement plans and based on our examination of the evidence supporting the assumptionsnothing has come to our attention which causes us to believe that any materialuncertainty exists as on the date of the audit report indicating that Company is notcapable of meeting its liabilities existing at the date of balance sheet as and when theyfall due within a period of one year from the balance sheet date. We however state thatthis is not an assurance as to the future viability of the Company. We further state thatour reporting is based on the facts up to the date of the audit report and we neither giveany guarantee nor any assurance that all liabilities falling due within a period of oneyear from the balance sheet date will get discharged by the Company as and when they falldue.
xx. (a) There are no unspent amounts towards Corporate SocialResponsibility (CSR) on other than ongoing projects requiring a transfer to a Fundspecified in Schedule VII to the Companies Act in compliance with second proviso tosub-section (5) of Section 135 of the said Act. Accordingly reporting under clause 3(xx)(a) of the Order is not applicable for the year.
(b) In respect of ongoing projects the Company has transferred unspentCorporate Social Responsibility (CSR) amount as at the end of the previous financial yearto a Special account within a period of 30 days from the end of the said financial year incompliance with the provision of section 135(6) of the Act.
Annexure B to the independent Auditors? report of even date on theFinancial Statement 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 financialreporting of Birla Cable Limited. as at March 312022 in conjunction with our audit of thefinancial statements 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 andmaintaining internal financial controls based on the Internal Control over financialreporting criteria established by the Company considering the essential components ofInternal control stated in the Guidance Note on Audit of "the Internal FinancialControls over Financial Reporting issued by the institute of Chartered Accountants ofIndia." 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 Companies Act 2013.
Our responsibility is to express an opinion on the Company?sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with Guidance note on Audit of Internal Financial Controls overFinancial Reporting (the" Guidance Note") and the Standards on Auditing issuedby ICAI and deemed to be prescribed under section 143 (10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls both applicable to anaudit of Internal Financial Controls and both issued by the Institute of CharteredAccountants of India. 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 aboutthe adequacy of the Internal financial controls system over financial reporting and theiroperating effectiveness our audit of internal financial controls over financial reportingincluded obtaining and understanding of internal financial controls over financialreporting 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 ofthe risks of material misstatement of the financial statement whether due to fraud orerror.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company?s Internalfinancial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company?s internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A Company?s internal financial controlover financial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable details accurately and fairly reflect thetransactions and disposition of the assets of the company;(2) provide reasonable assurancethat transactions are recorded as necessary to permit preparation of financial statementin accordance 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 FinancialReporting
Because of the inherent limitation of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and may notbe detected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequateinternal financial control system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2022 basedon the internal control over financial reporting criteria established by the CompanyConsidering the essential components of internal control stated in the "Guidance Noteon Audit of Internal Financial Controls over Financial Reporting issued by the Instituteof Chartered Accountants of India".
| ||For Jain Pramod Jain & Co. |
| ||Chartered Accountants |
| ||Firm Registration No. 016746 N |
| ||Amber Jaiswal |
|Place : New Delhi ||Partner |
|Date : May 24 2022 ||Membership No. 550715 UDIN:22550715AJNRYV5291 |