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D P Wires Ltd.

BSE: 535012 Sector: Metals & Mining
NSE: DPWIRES ISIN Code: INE864X01013
BSE 05:30 | 01 Jan D P Wires Ltd
NSE 00:00 | 05 Mar 117.55 -4.70
(-3.84%)
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D P Wires Ltd. (DPWIRES) - Auditors Report

Company auditors report

To

The Members

D.P. WIRES LIMITED

[Previously known as ‘D.P. WIRES PRIVATE LIMITED’]

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying Financial Statements of D.P. WIRES LIMITED [Previouslyknown as ‘D.P. WIRES PRIVATE LIMITED’]("the Company") whichcomprises the Balance Sheet as at March 31st 2019 the Statement of Profit and Loss theCash Flow Statement for the year then endedand notes to the financial statementsincluding a summary of significant accounting policies and other explanatory information.In our opinion and to the best of our information and according to the explanations givento us the aforesaid Financial Statements give the information required by the CompaniesAct 2013 in the manner sorequired and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31st 2019 and its Profit and its Cash Flows for the year endedon that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor’s Responsibilities for the Audit ofthe Financial Statements section of our report. We are independent of the Company inaccordance with 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 Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Responsibility of Management and Those Charged with Governance for the FinancialStatements

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 Financial Statements that give a true and fair view of the financial positionfinancial performance cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the accounting Standards specified undersection 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statement that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

In preparing the financial statements the Board of Directors is responsible forassessing the Company’s ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless the Board of Directors either intends to liquidate the Company or tocease operations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company’sfinancial reporting process.

Auditor’s Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor’s report that includes our opinion. Reasonable assurance is ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arisefrom fraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofSection 143 of the Act we give in the "Annexure-A"a statement on the mattersspecified in the paragraph 3 and 4 of the Order to the extent applicable.

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 the Companies(Accounts) Rules 2014;

(e) On the basis of the written representations received from the directors as on March31st 2019 taken on record by the Board of Directors none of the directors isdisqualified as on March 31st 2019 from being appointed as a director in terms ofSection 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"; and

(g) With respect to the other matters to be included in the Auditors’ 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 financial statements Refer Note-27 to the financial statements.

(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.

(iii) There were no amountswhich were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For Anil Kamal Garg& Company
Place : Indore Chartered Accountants
Dated : May 18th 2019 ICAI Firm Reg. No. : 004186C
(DevendraBansal)
Mem. No. : 078057 Partner

D.P. WIRES LIMITED

[Previously known as ‘D.P. WIRES PRIVATE LIMITED’]

"ANNEXURE A" TO THE INDEPENDENT AUDITORS' REPORT OF EVEN DATE

The Annexure referred to in Paragraph 1 under ‘Report on Other Legal andRegulatory Requirements’ in the Independent Auditor’s Report of even date wereport that:

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

(b) As explained to us all the fixed assets have been physically verified by themanagement in a phased periodical manner which in our opinion is reasonable havingregard to the size of the Company and the nature of its assets. As explained to us nomaterial discrepancies were noticed on such physical verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable propertiesrecorded in the books of accounts of the Company are held in the name of the Company.

(ii) The inventory has been physically verified by the management during the year. Inour opinion the frequency of verification is reasonable. As informed no materialdiscrepancies were noticed on physical verification carried out during the year.

(iii) In respect of the granting of loans by the Company:

(a) The Company has granted unsecured loan to only one person covered in the registermaintained under section 189 of the Companies Act 2013. In our opinion the terms andconditions of such loan is not prejudicial to the Company’s interest.

(b) The loan has been granted without stipulating any schedule of repayment ofprincipal and interest. As the loan is repayable on Demand along with interest thequestion as to regularity of the repayment or interest receipts does not arise.

(c) There being no stipulated schedule of repayment and the Company having not demandedthe repayment of loan the loan so granted has not become overdue.

(iv) In our opinion and according to the information and explanations given to us theCompany has notgranted any loan or made any investment or provided any guarantees andsecurity in respect of which provisions of section 185 and 186 of the Companies Act 2013are applicable. Accordingly the provision of clause 3(iv) of the Order is not applicableto the Company. (v) In our opinion and according to the information and explanations givento us the Company has not accepted any deposits from the public within the provisions ofSections 73 to 76 of the Act and the rules framed there under.

(vi) We have broadly reviewed the records maintained by the Company pursuant to therules prescribed by Central Government for maintenance of cost records under sub section 1of Section 148 of the Act and are of the opinion that prima facie the prescribed accountsand records have been made and maintained. However we have not made a detailedexamination of the records.

(vii) (a) According to the information and explanations given to us and on the basis ofexamination of the records of the Company in our opinion the Company is regular indepositing the undisputed statutory dues including provident fund employees’ stateinsurance income tax duty of customs goods and services taxcess and any otherstatutory dues as applicable with the appropriate authorities. According to theinformation and explanations given to us no undisputed amount payable in respect ofaforesaid dues were in arrears as on 31st March 2019 for a period more thansix months from the date they became payableexcept Central Sales Tax of Rs.30569/- andValue Added Tax of Rs.77402/-.

(b) According to the information and explanations given to us there are no materialdues of income tax sales tax service tax duty of customs goods and servicestaxcesswhich have not been deposited with the appropriate authorities on account of anydispute. However according to information and explanations given to us the followingdues of excise duty value added tax central sales tax and entry tax have not beendeposited as on 31st March 2019 by the Company on account of disputes :

Sr. No. Name of the Statute Nature of Dues Amount Period for which the Amount Relates Forum where dispute is pending
(Rs. in Lakhs) (F.Y.)
1 Central Excise Act 1944 Excise Duty 24.67 2012-13 Commissioner Appeal Bhopal
Total (A) 24.67
2 MP VAT Act 2002 Value Added Tax 25.58 2004-05 M.P.C.T Appellate Board Bhopal
3 MP VAT Act 2002 Value Added Tax 24.90 2005-06 M.P.C.T Appellate Board Bhopal
4 MP VAT Act 2002 Value Added Tax 20.36 2006-07 M.P.C.T Appellate Board Bhopal
5 MP VAT Act 2002 Value Added Tax 6.29 2015-16 M.P.C.T Appellate Board Bhopal
6 MP VAT Act 2002 Value Added Tax 11.81 2016-17 M.P.C.T Appellate Board Bhopal
Total (B) 88.94
7 Central Sales Tax Act 1956 Central Sales Tax 20.79 2006-07 M.P.C.T Appellate Board Bhopal
8 Central Sales Tax Act 1956 Central Sales Tax 58.12 2008-09 M.P.C.T Appellate Board Bhopal
9 Central Sales Tax Act 1956 Central Sales Tax 6.90 2009-10 M.P.C.T Appellate Board
10 Central Sales Tax Act 1956 Central Sales Tax 12.87 2010-11 M.P.C.T Appellate Board Bhopal
11 Central Sales Tax Act 1956 Central Sales Tax 19.74 2011-12 Appellate Authority Indore do
12 Central Sales Tax Act 1956 Central Sales Tax 13.66 2012-13
13 Central Sales Central Sales Tax 15.05 2013-14 do
Tax Act 1956
14 Central Sales Central Sales Tax 40.06 2014-15 do
Tax Act 1956
15 Central Sales Central Sales Tax 76.98 2015-16 do
Tax Act 1956
16 Central Sales Central Sales Tax 109.02 2016-17 do
Tax Act 1956
Total (C) 373.19
17 Entry Tax Entry-Tax 5.19 2014-15 Appellate Authority Indore
Total (D) 5.19
Grand Total (A+B+C+D) 491.99

(viii) According to the records of the Company examined by us and the information andexplanation given to us the Company has not defaulted in repayment of loans or borrowingto a financial institution or bank. There is no borrowing from the Government and thereare no debenture holders.

(ix) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordingly theprovision of clause 3(ix) of the Order is not applicable to the company.

(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud by the Company or any fraud on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such instance by themanagement.

(xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the managerial remuneration has beenpaid/provided in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a NidhiCompany. Accordingly the paragraph 3(xii) of the Order is notapplicable to the Company.

(xiii) 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 sections 177 and 188 of the Act where applicable.The details of suchrelated party transactions have been disclosed in the notes to the financial statementsas required by the applicable accounting standards.

(xiv) 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. Accordingly the paragraph 3(xiv) of the Order is not applicable tothe Company. (xv) According to the information and explanations given to us the Companyhas not entered into any non-cash transactions with directors or persons connected withhim as referred to in section 192 of the Companies Act 2013.

(xvi) According to the information and explanation given to us the Company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act

1934. For Anil Kamal Garg& Company
Place : Indore Chartered Accountants
Dated : May 18th 2019 ICAI Firm Reg. No. : 004186C
(DevendraBansal)
Partner
Mem. No. : 07805

"ANNEXURE–B" TO THE INDEPENDENT AUDITORS' REPORT OF EVEN DATE

[Referred to in paragraph 9(f) under ‘Report on Other Legal and RegulatoryRequirements’ in the Independent Auditor’s Report of even date]

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 D.P.Wires Limited [Previously known as 'D.P. Wires Private Limited']("theCompany") as of 31st

March 2019 in conjunction with our audit of the financial statements of the Companyfor 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

Reporting issued by the Institute of Chartered Accountants of India (‘ICAI’).These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company’s policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith 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 controlssystem 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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent 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.

Opinion

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 31st March 2019 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.For Anil Kamal Garg& Company

Chartered Accountants
ICAI Firm Reg. No. : 004186C
(DevendraBansal)
Place : Indore Partner
Dated : May 18th 2019 Mem. No. : 078057

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