TO THE MEMBERS OF FINE LINE CIRCUITS LIMIITED
REPORT ON THE AUDIT OF STANDALONE IND AS FINANCIAL STATEMENTS
We have audited the accompanying standalone Ind AS financial statements of Fine LineCircuits Limited ("the Company") which comprise the Balance Sheet as at March31 2019 the statement of Profit and Loss including other comprehensive Income the cashFlow Statement and the statement of Changes in Equity for the year then ended and Notesto the Financial Statements including a summary of significant Accounting Policies andother explanatory information.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone 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 2019it's profit including other comprehensive income its cash flows and the changes in equityfor the year ended on that date.
The comparative figures for the previous year ended on March 31 2018 are based on thefinancial statement audited by the predecessor auditor who have expressed an unmodifiedopinion vide their report dated May 19 2018. Our opinion to the Standalone Ind ASfinancial statement is not modified in respect of the above matter
Basis for opinion:
We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing (SAs) as specified under section 143(10) of the Act. Ourresponsibility under those Standards are further described in the 'Auditorsresponsibilities for the Audit of the standalone Ind AS financial statements' section ofour report. 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 standalone Ind AS financial statementsunder the provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the standalone Ind AS financial statements.
The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Management Discussion and AnalysesBoard's Report including Annexures to Board Report Business Responsibility ReportCorporate Governance and Shareholders' Information but does not include the standalone IndAS financial statement and our auditors report thereon.
Our opinion on the standalone Ind AS financial statement does not cover the otherinformation and we do not express any form of assurance conclusion thereon.
In connection with our audit of standalone Ind AS financial statement ourresponsibility is to read the other information and in doing so consider whether suchother information is materially inconsistent with the standalone Ind AS financialstatement or our knowledge obtained in the audit or otherwise appears to be materiallymisstated. If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.
MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE IND AS 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 standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive Income cash flowsand changes in Equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards IND AS prescribedunder Section 133 of the Act read with relevant rules issued thereunder. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of 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 standalone Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
In preparing the standalone Ind AS financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.
The Board of Directors are responsible for overseeing the Company's financial reportingprocess.
AUDITORS' RESPONSIBILITY FOR THE AUDIT OF STANDALONE IND AS FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the standalone 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 in the aggregatethey could reasonably be expected to influence the economic decisions of users taken onthe basis of these standalone Ind AS financial statements.
As part of an audit in accordance with SAs we exercise professional judgement andmaintain professional skepticism throughout the audit. We also:
??Identify and assess the risks of material misstatement of the standalone Ind ASfinancial statements whether due to fraud or error 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 to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theact 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 reasonableness ofaccounting estimates and related disclosures made by management.
??Conclude on the appropriateness of management's use of the going concern basis ofaccounting 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 standalone Ind ASfinancial statements including the disclosures and whether the standalone Ind ASfinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
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 audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditors Report) Order 2016 ("the order")issued by the Central Government in terms of Section 143(11) of the Act we give inAnnexure "1" a statement on the matters specified in paragraph 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 ouropinion proper books of account as required by law have been kept by the Company so faras it appears from our examination of those books c) The Balance Sheet the statement ofProfit and Loss including other comprehensive Income 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 standalone Ind AS Financial statements complywith Accounting Standards specified under Section 133 of the Act read with Companies(Indian Accounting Standard) Rules 2015 as amended e) On the basis of the writtenrepresentations received from the Directors as on March 31 2019 taken on record by theBoard of Directors none of the directors is disqualified as on March 31 2019 from beingappointed as a director in terms of Section 164 (2) of the Act. f) With respect to theadequacy of the internal financial control over financial reporting of the Company and theoperating effectiveness of such controls refer to our separate report in Annexure"2" g) In our opinion the managerial remuneration for the year ended March 312019 has been paid / provided by the Company to its Directors in accordance with theProvisions of Section 197 read with the Schedule V to the Act. h) With respect to theother matters to be included in the Auditor's Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules 2014 as amended in our opinion and to the best ofour information and according to the explanations given to us :
(i) As explained to us the Company does not have any pending litigations which wouldimpact its financial position.
(ii) There are no foreseeable losses as required on long term contracts includingderivative contracts.
(iii) There were no amount which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
For Ratanghayara & Co.
Firm Registration No. 117626W
Membership No. 103325
Dated :25th May 2019
ANNEXURE "1" REFERRED TO IN PARAGRAPGH 1 OF THE SECTION ON "REPORT ONOTHER LEGAL AND REGULATORY REQUIREMENT" OF OUR REPORT OF EVEN DATE ON THE STANDALONEFINANCIAL IND AS STATEMENT OF FINE LINE CIRCUITS LIMITED:
(Referred to in paragraph 1 under the heading "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 on the basis of available information.
(b) As explained to us majority of the fixed assets have been physically verified bythe management in a phased manner which in our opinion is reasonable having regard tothe size of the Company and the nature of its assets. No material discrepancies werenoticed on such verification.
(c) The Company does not have immovable property therefore the provision of sub clause(c) of clause (1) of the Order is not applicable to the Company.
ii. As explained to us physical verification of Inventories have been conducted atreasonable intervals by the management which in our opinion is reasonable having regardto the size of the Company and the nature of its Inventories.
No material discrepancies were noticed on such physical verification.
iii. As explained to us the Company has not granted any loans secured or unsecured tocompanies firms or other parties as listed in the register maintained under section 189of the Companies Act 2013 and hence clause (iii) of the said Order is not applicable tothe Company.
iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Companies Act 2013in respect of grant of loans making investments and providing guarantees and securitiesas applicable.
v. According to the information and explanations given to us the Company has notaccepted any deposit within the meaning of sections 73 to 76 of the Act and the Companies(Acceptance of Deposits) Rules 2014 (as amended).
Accordingly the provisions of (v) of the said order are not applicable.
vi. We have broadly reviewed the Books of Accounts maintained by the Company pursuantto the Rules made by the Central Government for the maintenance of the Cost records undersection 148(1) of the Companies Act 2013 related to the manufacture of the Company'sproducts and are of the opinion that prima facie the specified accounts and records havebeen made and maintained. We have not however made a detailed examination of the same.
vii. In respect of statutory dues: a) According to the records of the Companyundisputed statutory dues including Provident Fund Employees' State Insurance IncomeTax duty of Customs Goods and Service Tax Cess and other material statutory dues havegenerally been regularly deposited with the appropriate authorities. According to theinformation and explanations given to us no undisputed amounts payable in respect of theaforesaid dues were outstanding as at March 31 2019 for a period of more than six monthsfrom the date of becoming payable. b) According to the information and explanations givento us there are no disputed aforesaid statutory dues pending as on 31st March 2019.
viii. In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of loans to banks. The Company did not have anyoutstanding loans or borrowings dues in respect of the Financial Institutions or to theGovernment or dues to Debenture Holders during the year.
ix. The Company has not raised money by way of initial public offer or further publicoffer including debt instruments or by way of term loans during the year.
x. In our opinion and according to the information and explanations given to us nomaterial fraud by the Company or on the Company by it's officers or Employees has beennoticed or reported during the year.
xi. According to the information and explanations given to us the managerialremuneration has been paid / provided in accordance with the requisite approvals mandatedby the provisions of Section 197 read with Schedule V to the Companies Act 2013.
xii. The Company is not a Nidhi Company and hence reporting under clause (xii) of para3 of the Order is not applicable to the Company.
xiii. In our opinion and according to the information and explanations given to us theCompany's transactions with its Related Party are in compliance with Section 177 and 188of the Companies Act 2013 where applicable and details of related party transactions havebeen disclosed in the Financial Statement as required by the applicable accountingstandards.
xiv. During the year the Company has not made any preferential allotment or PrivatePlacement of Shares or fully or Partly convertible debentures and hence reporting underclause (xiv) of para 3 of the order is not applicable to the Company.
xv. In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsDirectors or persons connected with him and covered under section 192 of the Act andhence reporting under clause (xv) of paragraph 3 of the Order is not applicable to theCompany.
xvi.In our opinion and according to the information and explanations given to us theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.
For Ratanghayara & Co.
Firm Registration No. 117626W
Proprietor Membership No. 103325
Dated :25th May 2019
"Annexure 2" To the Independent Auditor's Report of even date on theStandalone Ind AS Financial Statements of FINE LINE CIRCUITS LIMITED
(Referred to in paragraph 1 (f) under report on other Legal and Regulatory requirementsof our report of even date.)
Report on the Internal Financial Controls over Financial reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of FINE LINECIRCUITS LIMITED ("the Company") as of March 31 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 Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India.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.
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 issued by the ICAI and the Standards on Auditing prescribed undersection 143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.
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 judgement 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 systemover financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide a 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 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.
For Ratanghayara & Co.
Firm Registration No. : 117626W
Proprietor Membership No. 103325
Dated: 25th May 2019