TO THE MEMBERS OF BOMBAY WIRE ROPES LTD
Report on the Financial Statement
We have audited the accompanying financial statements of BOMBAY WIRE ROPES LTDwhich comprise the Balance Sheet as at March 31 2017 the Statement of Profit and Lossand the Cash Flow Statement for the year then ended and a summary of the significantaccounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Board of Directors of the Company is responsible for the matters stated in section134 of sub section 5 of the Companies Act 2013 with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under section133 of the Companies Act 2013 read with Rule 7 of the Companies (Account) Rules 2014.This responsibility also includes maintenance of adequate accounting records in accordancewith provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation 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 financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
Our responsibility is to express an opinion on these financial statements based on ouraudit.
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 in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation offinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of accountingestimates made by the company's Directors as well as evaluating the overall presentationof the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India a) in the case of the Balance Sheet of the stateof affairs of the Company as at 31st March 2017; b) in the case of the Statement ofProfit and Loss of the Loss for the year ended on that date; and c) in the case of theCash Flow Statement of the cash flows for the year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")as amended issued by the Central Government of India in terms of sub-section (1) ofsection 143 of the Act we give in the "Annexure A" a statement on the mattersspecified in paragraphs 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 explanations which to the bestof our knowledge and belief were necessary for the purpose 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 and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.
d. In our opinion the aforesaid financial statements comply with the AccountingStandards specified under
Section 133 of the Act read with Rule 7 of Companies (Accounts) Rules 2014.
e. On the basis of written representations received from the directors as on March 312017 taken on record by the
Board of Directors none of the directors is disqualified as on March 31 2017 frombeing appointed as a director in terms of sub-section (2) of section164 of the CompaniesAct 2013.
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" and
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 opinion and to the best of ourinformation and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements-
Refer Note 19.1 contingent liability to the financial statements;
ii. The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
iv. The Company has provided requisite disclosures in its standalone financialstatements as to holding as well as dealings in Specified Bank Notes during the periodfrom 8 November 2016 to 30 December 2016 and these are in accordance with the books ofaccounts maintained by the Company. Refer Note 19.8 to the financial statements.
REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF BOMBAY WIRE
ROPE LTD (THE COMPANY') ON THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH 2017
On the basis of the information and explanation furnished to us and the books andrecord examined by us in the normal course of audit and to the best of our knowledge andbelief we report that
1. a) The Company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.
b) According to the information and explanation given to us the fixed assets have beenphysically verified by the management at the end of the year and the discrepancies noticedon such verification have been properly dealt with in the books of accounts.
c) According to information and explanation given to us and on the basis of ourexamination of records of the company the tittle deed of immovable properties are held inname of the Company.
2. There is no Inventory at the year end March 31 2017.
3. The Company has not granted any loans secured or unsecured in the financial year2016-17 but balance carried forward from previous year amounting to Rs. 28639000 andinterest accrued for the year thereon up to 31st March 2017 of Rs. 2473432 has beenreceived and balance stands amounting to Rs. 28774000 as on 31st March 2017 fromcompanies covered in register maintained under section 189 of the Companies Act 2013.
4. In our opinion and according to the information and explanations given to us thecompany has complied with wherever applicable the provisions of section 185 and 186 ofthe Companies Act 2013 in respect of loans and investment made.
5. The Company has not accepted any deposit and hence the directive issued by theReserve bank of India and provisions of sections 73 to 76 or any other provisions ofcompanies act 2013 and rules frames there under will not be applicable to the company.
6. As per information and explanation given by the management the Company has notcarried out any manufacturing activity during the financial year ended March 31 2017.Therefore maintenance of cost records as prescribed under sub section 1 of section 148 ofthe Companies Act 2013 is not applicable to the Company.
7. a) According to the information and explanations given to us and on the basis of ourexamination of the books of accounts the company is generally regular in depositing withthe appropriate authorities undisputed statutory dues including Provident Fund Employee'sState Insurance Income Tax Wealth Tax Custom Duty Excise Duty Service Tax Sales TaxValue Added Tax Cess and other statutory dues applicable to the Company. There are noundisputed amount payable as at 31.03.2017 for a period of more than six months from thedate they became payable.
b) According to the information & explanations given to us there is no amount duepayable in respect of Income Tax Wealth Tax Service tax VAT Customs Duty Sales taxExcise Duty that have not been deposited with the appropriate authorities on account ofdispute.
c) According to the information & explanations given to us and on the basis of ourexamination of the books of accounts the amount required to be transferred to investoreducation and protection fund is in accordance with the relevant provisions of theCompanies Act 1956 (1 of 1956) and rules made thereunder no amount is due for transferduring the year.
8. In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of dues to banks. The Company has not taken anyloan either from financial institutions or from the government and has not issued anydebentures.
9. Based upon the audit procedures performed and the information and explanations givenby the management the Company has not raised moneys by way of initial public offer orfurther public offer including debt instruments and Term Loans. Accordingly theprovisions of clause 3 (ix) of the Order are not applicable to the Company.
10. Based upon the audit procedures performed and the information and explanationsgiven by the management we report that no fraud by the Company or on the company by itsofficers or employees has been noticed or reported during the year.
11. Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act.
12. In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 3(xii) of the Order are not applicable to the Company.
13. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with section 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standard.
14. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year under review and therefor the provisions of clause 3(XIV) of the Companies(Auditor's Report) Order 2016 are not applicable to the Company.
15. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with them. Accordingly paragraph 3(xv)of the Order is not applicable.
16. The Company is not required to be registered under section 45-IA of the ReserveBank ofIndia Act 1934
Annexure - B to the Auditors' Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of BOMBAY WIREROPES LTD as of 31 March 2017 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 Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (ICAI'). 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 the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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 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 an 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 judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to 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 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 detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements 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 unauthorised 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 limitations 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 respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2017 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.
|UNIT NO.30 NEPTUNE BUILDING ||For SINGHI & CO. |
|EVERSHINE MILLENIUM PARADISE ||Chartered Accountants |
|THAKUR VILLAGE KANDIVALI EAST ||FRN -110283W |
|MUMBAI- 400101. || |
| ||PRAVEEN KUMAR SINGHI |
|Dated : 8th May 2017 || |
| ||Partner |
| ||Membership No -051471 |