TO THE MEMBERS OF BIRAL CABLE LIMITED
Report on the Ind AS Financial Statements
We have audited the accompanying Ind AS financial Statement of Biral CableLimited("the Company") which comprise the Balance Sheet as at 31stMarch 2018 and the Statement of Profit and Loss (including Other Comprehensive Income)the Cash Flow Statement and the Statement of Changes in Equity for the year then endedand a summary of the significant accounting policies and other explanatory information.
Management's Responsibility for the 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 Ind AS financial statements that give a true and fair view of the state ofaffairs(financial position) profit or loss (financial performance including othercomprehensive income) cash fl ows and changes in equity of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) prescribed under section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies making judgments and estimates that are reasonable andprudent; and 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 Ind ASfinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these Ind AS financial statements basedon 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 thereunder.
We conducted our audit of the Ind AS financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Ind AS financial statements are free from materialmisstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS financial statements. The procedures selected depend on theauditors' judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the Ind AS of the state ofaffairs (financial position) of the Company as at 31st March 2018 and itsprofit (financial performance including other comprehensive income) its cash fl ows andthe changes in equity for the year ended on that date.
The comparative financial information of the Company for the year ended 31stMarch 2017 and the transition date opening Balance Sheet as at 1st April 2016included in these Ind AS financial Statements are based on the previously issuedstatutory financial statements prepared in accordance with the Companies (AccountingStandards) Rule 2006 audited by V.Sankar Aiyar & Co. Chartered Accountants for theyear ended 31.03.2016 and 31.03.2017 whose reports dated 18.05.2016 and 16.05.2017respectively expressed an unmodified opinion on those financial statements as adjusted forthe differences in the accounting principles adopted by the Company on transition to theInd As which have been audited by us. Our opinion is not modified in respect of thismatter.
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 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in termsof Section 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) TheCompany has disclosed the impact of pending litigations on its financial position in itsInd AS financial statements. (ii) The Company did not have any long term contractsincluding derivative contracts for which 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.
Annexure A' to the 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 in phased manner which in our opinion isreasonable having regard to the size of the company and the nature of its fixed assets. Nomaterial discrepancies 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 the discrepancieswhich were noticed on physical verification of inventory as compared to book records werenot 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 usthe company 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 notaccepted 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 FundEmployees' State Insurance Income tax Sales tax Service 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 2018.
(b) According to the records and information and explanations given to us there are nodues in respect of custom duty that have not been deposited on account of any dispute. Inour opinion and according to the information and explanations given to us the dues inrespect of income tax or sales tax or service tax or excise duty or value added tax thathave not been deposited with the appropriate authority on account of dispute and the forumwhere the dispute is pending are given below:
|Name of Statute ||Nature of Dues ||Amount involved (Rs in lakhs) ||Period to which it relates to ||Forum where matter is pending |
|MP Vat Act 2003 ||Demand of Interest on alleged payment of deferred Sales Tax loan/liability ||Rs 86.86 ||F.Y.-2000-01 ||MP commercial Tax Appellate Board |
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 performedand information and explanation given to us we report that no fraud by the company or anyfraud on the company by its officers or employees has been noticed or reported during thecourse 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. Thecompany has not entered into any non-cash transaction with Directors or persons connectedwith him.
xvi. The company is not required to be registered under section 45-1A of the ReserveBank of India Act 1934.
Annexure "B" to the Independent Auditors' Report of even date on theStandalone Financial Statement of Birla Cable Limited. Report on the Internal FinancialControls 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 BirlaCable Limited as at March 31 2018 in conjunction with our audit of the standalonefinancial 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 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.
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 prescribedunder section 143 (10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the Institute of Chartered Accountants of India. Those standards andthe Guidance Note require that we Comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate Internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects. Our audit involves performing procedures toobtain audit evidence about the adequacy of the Internal financial controls system overfinancial reporting and their operating effectiveness our audit of internal financialcontrols over financial reporting included obtaining and understanding of internalfinancial controls over financial reporting assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgement including the assessment of the risks of material misstatement of the financialstatement whether due to fraud or error. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on theCompany's Internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable details accurately and fairly refl ect 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 authorisations 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 2018 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 |
| ||P.K.Jain |
|Place : New Delhi ||Partner |
|Date : May 24 2018 ||Membership No. 010479 |