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Fiberweb (India) Ltd.

BSE: 507910 Sector: Industrials
NSE: N.A. ISIN Code: INE296C01020
BSE 00:00 | 04 Mar 29.20 -0.70
(-2.34%)
OPEN

29.85

HIGH

30.00

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29.00

NSE 05:30 | 01 Jan Fiberweb (India) Ltd
OPEN 29.85
PREVIOUS CLOSE 29.90
VOLUME 63106
52-Week high 35.40
52-Week low 8.89
P/E 5.98
Mkt Cap.(Rs cr) 84
Buy Price 29.20
Buy Qty 100.00
Sell Price 29.90
Sell Qty 38.00
OPEN 29.85
CLOSE 29.90
VOLUME 63106
52-Week high 35.40
52-Week low 8.89
P/E 5.98
Mkt Cap.(Rs cr) 84
Buy Price 29.20
Buy Qty 100.00
Sell Price 29.90
Sell Qty 38.00

Fiberweb (India) Ltd. (FIBERWEBINDIA) - Auditors Report

Company auditors report

To

The Members

FIBERWEB (INDIA) LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

1. We have audited the accompanying standalone financial statements of FIBERWEB (INDIA)LIMITED (‘the Company’) which comprise the Balance Sheet as at 31st March2019 and the Statement of Profit and Loss (including the statement of Other ComprehensiveIncome) the Cash Flow Statement and the Statement of Changes in Equity for the year endedon that date and a summary of the significant accounting policies and other explanatoryinformation (hereinafter referred to as ‘The standalone Financial Statements’).

2. In our opinion and to the best of our information and according to the explanationsgiven to us and Subject to Notes the aforesaid standalone financial statementsgive the information required by the Companies Act 2013 (‘the Act’) in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India including Indian Accounting Standards (‘IndAS’) specified under section 133 of the Act of the state of affairs (financialposition) of the Company as at 31st March 2019 and its profit (financial performanceincluding other comprehensive income) its cash flows and the statement of changes inequity for the year ended on that date.

Basis for Opinion

3. We conducted our audit of the standalone Financial Statements in accordance with theStandards on Auditing specified under sub-section 10 of Section 143 of the Act and otherapplicable authoritative pronouncements issued by the institute of Chartered Accountantsof India. Our responsibilities under those standards are further described in theAuditor’s Responsibilities for the Audit of the standalone Financial Statementssection of our report. We are Independent of the Company in accordance with the code ofEthics issued by the Institute of Chartered Accountants of India (‘ICAI’)together with the ethical requirements that are relevant to our audit of the standalonefinancial statements under the provisions of the Act and the Rules thereunder and we havefulfilled our other ethical requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.

Key Audit Matters

4. Key audit matters are those matters that in our professional judgement were ofmost significance in our audit of the standalone financial statements of the currentperiod. 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 provide aseparate opinion on these matters.

5. We have determined the matters described below to be the Key Audit Matters to becommunicated in our report.

Key Audit Matter How our Audit addressed the Key Audit Matter
I. Carrying Value of Property Plant &
Equipment:-
The carrying value of Property Plant & Equipment (Total) as at 31.03.2019 was Rs 8058.87 lakhs including Plant & Machinery value is Rs 5311.48 lakhs and the related depreciation charge for the year was Rs 454.13 lakhs as per w/off of residual value. I. Assessing the reasonableness of the management’s assertions and estimates regarding estimated useful lives and residual values based on historical experience and Govt. approved Valuer’s Report.
Discussing indicators of possible impairment with the management.
Analyzing the assumptions and critical judgements based on historical data.
II. Extraordinary Item
Extraordinary item includes Research & Development Expenses of Rs 138693232/- written off as the Products out of this unique research failed and this department is closed to avoid future losses. I. Extraordinary item was Deferred Revenue Expenses however as per our and bankers’ advise received by the Company & Company’s Policy of Prudence it is w/off fully in the current year.
III. Exceptional Item:- II. Exceptional item is an inevitable event happened due to malicious intention of the fraudulent owners of a finance company against which a criminal complaint had been filed however no sign of recovery was visible and the management correctly written off the full amount in statement of Profit & Loss a/c after waiting for a long time.
Exceptional item consists of the fraud by a Company which promised Rs 50.00 Crores Term Loan @ 9% interest p.a. for a period of 6 years with 2 years moratorium for our Expansion Project. An advance interest of Rs 1.80 Crores was paid and Rs 2.00 lacs for documentation Charges.
It was a fraud for which criminal complaint (F.I.R.) was filed in Chennai. Since there is no chance of recovery it is written off.

Information other than the Standalone Financial Statements and Auditor’s Reportthereon

6. The Company’s Board of Directors is responsible for the other information. Theother information comprises the information included in the Annual Report but does notinclude the standalone financial statements and our auditor’s report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone 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 and Those Charged with Governance for the StandaloneFinancial Statements

7. The Company’s Board of Directors is responsible for the matters stated insub-section 5 of section 134 of the Companies Act 2013 ("the Act") with respectto the preparation and presentation of these standalone financial statements that give atrue and fair view of the state of affairs(standalone financial position) profit or loss(financial performance including other comprehensive income) cash flow and the Statementof Changes in Equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) specified underSection 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015as amended. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error. Independent Internal Auditor hasbeen appointed by the Company to do the Internal Audit and report thereon.

8. In preparing the standalone financial statements management 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 management either intends to liquidate the Company or to ceaseoperation or has no realistic alternative but to do so.

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

Auditor’s Responsibilities for the Audit of the Standalone Financial statements

10. Our objectives are to obtain reasonable assurance about whether the standalonefinancial 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. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with Standards on Auditing will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in aggregate they could reasonably be expected to influence the economicdecisions of users taken on the basis of these standalone financial statements.

11. As part of an audit in accordance with Standards on Auditing we exerciseprofessional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risk 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 explaining our opinion on whether the Companyhas adequate internal financial control 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 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 theCompany’s ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor’s report to therelated disclosures in the standalone financial statements or if such disclosures arebased on the audit evidence obtained up to the date of our auditor’s report. Howeverfuture events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

12. We communicate with those charges with governance regarding among other mattersthe planned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

13. We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicate withthem all relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

14. From the matters communicated with those charged with governance we determinedthose matters that were of most in the audit of the standalone financial statements of thecurrent period and are therefore the key audit matters. We describe these audit matters inour auditor’s report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

15. As required by Section 197(16) of the Act we report that the Company has paidremuneration to its Directors during the year in accordance with the provisions and limitslaid down under Section 197 read with Schedule V to the Act.

16. 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 paragraphs 3 and 4 of the Order to the extent applicable.

17. Further to our comments in Annexure A as required by sub section 3 of Section 143of 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 including other comprehensiveincome the Cash Flow Statement dealt and the statement of changes in equity with by thisReport are in agreement with the relevant books of account.

d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with the Companies(Indian Accounting Standards) Rules 2015 as amended.

e) On the basis of the written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 from being appointed as a director in terms ofsub-section 2 of Section 164 of the Act.

f) We have also audited the internal financial control over financial reporting(IFCoFR) of the Company as on 31st March 2019 in conjunction with our audit of thestandalone financial statements of the Company for the year ended on that date and ourreport as per Annexure B expressed an unmodified opinion; 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 (as amended) inour opinion and to the best of our information and according to the explanations given tous:-

(i) The Company has disclosed the impact of pending litigation on its financialposition in the standalone 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 amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

FOR A. V. Jobanputra & Co.
CHARTERED ACCOUNTANTS
Firm Registration No.: 104314W
Place:- Mumbai A. V. Jobanputra
Date:- 14/08/2019 PROPRIETOR
UDIN NO.: 19016352AAAABU4795 (MEMBERSHIP NO: 016352)

The Annexure A referred to in Para 1 – Report on Other Legal RegulatoryRequirements of our Independent Auditor’s Report to the members of the Company on thestandalone financial statements for the year ended 31 March 2019 we report that:

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

(b) As explained to us the fixed assets have been physically verified by themanagement at reasonable intervals during the year which in our opinion is reasonablehaving regard to the size of the Company and nature of its assets. No materialdiscrepancies were noticed on such 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 properties areheld in the name of the company;

ii) In our opinion the inventories have been physically verified during the year by theManagement at reasonable intervals and as explained to us no material discrepancies werenoticed on physical verification;

iii) According to the information and explanations given to us the company has notgranted any secured or unsecured loans to Companies Firms or other parties covered inthe register maintained under section 189 of the companies Act 2013;

iv) The Company has not given loans or made investments or given guarantees andprovided security in terms of provisions of section 185 and 186 of The Companies Act2013;

v) The Company has not accepted deposits and hence the directive issued by the ReserveBank of India and the provisions of the sections 73 to 76 of the Act and the Companies(acceptance of Deposits) Rules 2014 (as amended). Accordingly the provisions of clause3(v) of the Order are not applicable to the Company;

vi) We have been informed that the Company is not required to maintain cost recordunder sub-section(1) of section 148 of the Companies Act2013.

vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund employee’sstate insurance income tax sales tax custom Duty service tax value added tax cessand any other statutory dues have been regularly deposited during the year by the Companywith the appropriate authorities and no undisputed amounts payable were in arrears as at31 March 2019 for a period of more than six months from the date they became payable

(b) According to the information and explanations given to us there are no disputedamounts of income tax sales tax custom duty service tax or value added tax which havenot been deposited with the concerned authorities;

(c) During the year Central Excise Department has levied an anti dumping duty on thecompany of Rs 13777776/- for the period August 2009 to March 2015 and also penalty ofRs 13777776/- and Interest thereon and of Rs 1500000/- on one of its Directors. Thecompany has filed an appeal against the said order before CESTAT Ahmedabad. The companyhas paid an amount of Rs 1033333/- and Rs 112500/- against the said demand as depositfor filing the appeal.

viii) In our opinion and according to the information and explanation given to us theCompany has not defaulted in repayment of loans or borrowings to a bank. The Company hasnot obtained any borrowing from any financial institutions Government or by way ofdebentures;

ix) On the basis of records examined by us and the information and explanations givento us the Company has not raised money by way of initial public offer or further publicoffer during the year;

x) In our opinion and according to the information and explanations given to us nofraud by the Company or on the Company by its officers or employees has been noticed orreported during the year;

xi) In our opinion and according to the information and explanations given to us andbased on our examination of the records of the Company the Company has paid managerialremuneration as per Section 197 read with Schedule V to the Companies Act 2013;

xii) In our opinion and according to the information and explanations given to us thecompany is not a Nidhi company. Accordingly paragraph 3(xii) is not applicable;

xiii) In our opinion and according to the information and explanations given to us andbased on our examination of the records of the Company all transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable and thedetails of the same have been disclosed in the standalone financial statements as requiredby the applicable accounting standards;

xiv) According to the information and explanations given 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;

xv) 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 any non-cashtransactions with directors or persons connected with them. Accordingly paragraph 3 (15)of the order is not applicable;

xvi) The Company is not required to be registered under section 45-1A of the ReserveBank of India 1934

FOR A. V. Jobanputra & Co.
CHARTERED ACCOUNTANTS
Firm Registration No.: 104314W
Place:- Mumbai A. V. Jobanputra
Date :- 14.08.2019 PROPRIETOR
UDIN NO.: 19016352AAAABU4795 (MEMBERSHIP NO: 016352)

The Annexure B referred to in Para 2(f) - Report on other Regulatory requirements ofour Independent Auditor’s Report to the Members of the Company on the InternalFinancial Controls under clause (i) of subsection 3 of section 143 of the Companies Act2013 ("the act") for the year ended 31st March 2019

We have audited the internal financial controls over financial reporting of FIBEREWB(INDIA) LIMITED ("the company") as of 31st March 2019 in conjunction with ouraudit of the standalone 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 internal financial controls over financial Reportingissued by the institute of Chartered Accountants of India." These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company’s policies the safeguarding of its assetsthe prevention and detection of frauds and errors. The accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the companies Act 2013.

Auditor’s Responsibility

Our responsibility is to express an opinion on the company’s internal financialcontrols over financial reporting based on our audit in accordance with the Guidance Noteon Audit of internal Financial Controls Over Financial Reporting (the "GuidanceNote") and the Standards on Auditing issued by ICAI and deemed to be 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 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 standalone financial statements whether due to fraud orerror.

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 processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of standalone 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 detail accurately and fairly reflect thetransactions and dispositions assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of standalone financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 standalone financialstatements.

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 materials 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 procedure may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2019 based on the internal controlover financial reporting criteria established by the company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

FOR A. V. Jobanputra & Co.
CHARTERED ACCOUNTANTS
Firm Registration No.: 104314W
Place:- Mumbai A. V. Jobanputra
Date :- 14.08.2019 PROPRIETOR
UDIN NO.: 19016352AAAABU4795 (MEMBERSHIP NO: 016352)

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