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Birla Cable Ltd.

BSE: 500060 Sector: Engineering
NSE: BIRLACABLE ISIN Code: INE800A01015
BSE 00:00 | 18 Jun 89.50 -1.30
(-1.43%)
OPEN

90.15

HIGH

92.95

LOW

84.55

NSE 00:00 | 18 Jun 89.50 -1.25
(-1.38%)
OPEN

91.20

HIGH

93.00

LOW

86.00

OPEN 90.15
PREVIOUS CLOSE 90.80
VOLUME 102367
52-Week high 95.00
52-Week low 42.35
P/E 135.61
Mkt Cap.(Rs cr) 269
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 90.15
CLOSE 90.80
VOLUME 102367
52-Week high 95.00
52-Week low 42.35
P/E 135.61
Mkt Cap.(Rs cr) 269
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Birla Cable Ltd. (BIRLACABLE) - Auditors Report

Company auditors report

TO THE MEMBERS OF BIRLA CABLE LIMITED

Report on the Audit of the Standalone Ind AS Financial Statements

Opinion

We have audited the accompanying Annual Ind AS financial statements of Birla CableLimited ("the Company") which comprise the Balance sheet as at March 31 2020the 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 Annual 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 31 2020its 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 Annual Ind AS financial statements in accordance with theStandards 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 Annual Ind AS Financial Statements' section of ourreport. 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 Annual Ind AS financial statements.

Emphasis of matter

We draw attention to Note 36 to the financial result which describes the uncertaintiesand the impact of the COVID-19 pandemic on the company's operations and results asassessed by the management. The actual results may differ from such estimates depending onthe future developments. Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Annual financial statements of the current period. Thesematters were addressed in the context of our audit of the Annual financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. We have determined the matters described below to be the key audit mattersto be communicated in our report. We have fulfilled the responsibilities described in theAuditor's responsibility for the audit of the Annual Ind AS financial statements sectionof our report including in relation to these matters. Accordingly our audit included theperformance of procedures designed to respond to our assessment of the risks of materialmisstatement of the Annual Ind AS financial including the procedures performed to addressthe matters below provide the basis for our audit opinion on the accompanying Annual IndAS financial statements.

Key Audit Matter Auditor's Response
IND AS 116 Leases Our audit procedures on adoption of Ind AS 116 include:
• Assessed and tested new processes and controls in respect of the lease accounting standard (Ind AS 116);
As described in Note 1.5(n) to the financial statements the Company has adopted Ind AS116 Leases in the current year. The application and transition to this accounting standard is complex and is an area of focus in ouraudit. • Assessed the Company's evaluation on the identification of leases based on the contractual agreements and our knowledge of the business;
Ind AS 116 introduces a new lease accounting model wherein lessees are required to recognize a right-of-use (ROU) asset and a lease liability arising from a lease on the balance sheet. • On a statistical sample we performed the following procedures:
The lease liabilities are initially measured by discounting future lease payments during the lease term as per the contract/ arrangement. • assessed the key terms and conditions of each lease with the underlying lease contracts; and
Adoption of the standard involves significant judgments and estimates including determination of the discount rates and the lease term. • evaluated computation of lease liabilities and verified the key estimates such as discount rates and the lease term.
Additionally the standard mandates detailed disclosures in respect of transition. Refer Note 41to the Annual financial statements. • Assessed and tested the presentation and disclosures relating to Ind AS 116 including disclosures relating to transition.

We have determined that there are no other key audit matters 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 2019-20. Our opinionon the Annual Ind AS financial statements does not cover the other not express any form ofassurance conclusion thereon.

In connection with our audit of the Annual Ind AS financial statements ourresponsibility is to read the other so consider whether such other information ismaterially inconsistent with the Annual Ind AS financial statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated. If based on thework we have performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in thisregard.

Responsibilities of Management for the Annual 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 Annual Ind AS financialstatements that give a true and fair view of the financial performance includingother position 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 Annual Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error. In preparing the Annual 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 arealso responsible for overseeing the Company's financial reporting process.

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

Our objectives are to obtain reasonable assurance about whether the Annual 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 Annual Ind AS financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the Annual Ind ASfinancial statements whether due to fraud or 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 Annual Ind ASfinancial statements including the disclosures and whether the Annual Ind AS financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

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 We also providethose charged with governance with a statement that we have complied with relevant ethicalrequirements regarding independence and to communicate with them all relationships andother matters that may reasonably be thought to bear on our independence and whereapplicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Annual Ind AS financialstatements for the financial year ended March 31 2020 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 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 from being appointed as a director in terms of 164(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
P. K. Jain
Partner
Place : New Delhi Membership No. 010479
Date : June 1 2020 UDIN: 20010479AAAAAT4085

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 verification of physicalstores 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 Customs 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 2020;

(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 tobanks.

ix. The Company did not raise any money by way of initial/further public offer(including debt instruments) and term loans taken during the year have been applied forthe 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 on the company by its officers or employeeshas 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 them.

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
P. K. Jain
Partner
Place : New Delhi Membership No. 010479
Date : June 1 2020 UDIN: 20010479AAAAAT4085

Annexure B to the independent Auditors' report of even date on the Annual 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 Cableour audit of the Annual financial statements of the Company for the year ended on thatdate.

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 inaccordance with Guidance note on Audit of Internal Financial Controls over FinancialReporting (the" Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143 (10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. 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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the Internalfinancial controls system over financial reporting and their operating effectiveness ouraudit of internal financial controls over financial reporting included obtaining andunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the financial 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 processreliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A Company'sinternal financial control over financial (1) pertain to the maintenance of records thatin reasonable details accurately and fairly reflect the transactions and disposition ofthe assets of the company; (2) provide reasonable assurance that transactions are recordedas necessary to permit preparation of financial statement in accordance with generallyaccepted accounting principles and that receipts and expenditures of the Company arebeing made only in accordance with authorizations of management and directors of theCompany; and (3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial 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 may 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 financial reporting maybecome inadequate because of changes in conditions or that the degree of compliancecontrol over with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial control system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2020 based on"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
ICAI Firm Registration No. 016746N
P. K. Jain
Partner
Place : New Delhi Membership No. 010479
Date : June 1 2020 UDIN: 20010479AAAAAT4085