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Fine Line Circuits Ltd.

BSE: 517264 Sector: Engineering
NSE: N.A. ISIN Code: INE087E01011
BSE 00:00 | 24 Jan 69.65 -3.65
(-4.98%)
OPEN

71.10

HIGH

75.95

LOW

69.65

NSE 05:30 | 01 Jan Fine Line Circuits Ltd
OPEN 71.10
PREVIOUS CLOSE 73.30
VOLUME 8280
52-Week high 77.55
52-Week low 16.35
P/E 83.92
Mkt Cap.(Rs cr) 34
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 71.10
CLOSE 73.30
VOLUME 8280
52-Week high 77.55
52-Week low 16.35
P/E 83.92
Mkt Cap.(Rs cr) 34
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Fine Line Circuits Ltd. (FINELINECIR) - Auditors Report

Company auditors report

TOTHE MEMBERS OF

FINE LINE CIRCUITS LIMIITED

REPORT ON THE AUDIT OF FINANCIAL STATEMENTS

Opinion

We have audited the accompanying financial statements of Fine Line Circuits Limited("the Company") which comprise the Balance Sheet as at March 31 2021 thestatement of Profit and Loss (including other comprehensive Income) the cash FlowStatement and the statement of Changes in Equity for the year then ended and Notes to theFinancial Statements including a summary of significant Accounting Policies and otherexplanatory information. (hereinafter referred to as "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 theCompanies Act 2013 as amended ("the Act") in the manner so required and givea true and fair view in conformity with the Accounting principles generally accepted inIndia of the state of affairs of the Company as at March 31 2021 it'sprofit and othercomprehensive income its cash flows and the changes in equity for the year ended on thatdate.

Basis for opinion:

We conducted our audit of the financial statements in accordance with the Standards onAuditing (SAs) as specified under section 143(10) of the Act. Our responsibility underthose Standards are further described in the ‘Auditors responsibilities for the Auditof the financial statements' section of our report. We are independent of the Company inaccordance with the ‘Code of Ethics' issued by the Institute of Chartered Accountantsof India together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theICAI's Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the financial statements.

Other information

The Company's management and Board of Directors is responsible for the otherinformation. The other information comprises the information included in the Company'sAnnual Report but does not include the financial statement and our auditors reportthereon.

Our opinion on the financial statement does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of financial statement our responsibility is to read theother information and in doing so consider whether such other information is materiallyinconsistent with the financial statement or our knowledge obtained in the audit orotherwise appears to be materially misstated. If based on the work we have performed weconclude that there is a material misstatement of this other information we are requiredto report that fact. We have nothing to report in this regard.

MANAGEMENT'S AND BOARD OF DIRECTOR'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 financial statements that give a true and fair view of the financial positionfinancial performance including other comprehensive Income cash flows and changes inEquity of the Company in accordance with the accounting principles generally accepted inIndia including the Indian Accounting Standards IND AS prescribed under Section 133 ofthe Act read with relevant rules issued thereunder.

This responsibility also includes maintenance of adequate accounting records inaccordance 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 ofthefinancial statements that give a true and fair view and are free from materialmisstatement 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 as applicablematters related to going concern and using the going concern basis of accounting unlessthe Board of Directors intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Company's financialreporting process.

AUDITORS' RESPONSIBILITY FOR THE AUDIT OF 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 a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud 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.

As part of an audit in accordance with SAs we exercise professional judgement andmaintain professional scepticism throughout the audit.

We also:

• Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• 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 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 reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the 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 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 financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in

(i) planning the scope of our audit work and in evaluating the results of our work; and

(ii) to evaluate the effect of any identified misstatement in the financial statements.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 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 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 and statement of changes in Equity dealt with by thisReport are in agreement with the books of account.

d) In our opinion the aforesaid Financial statements comply with the Indian AccountingStandards specified under Section 133 of the Act read with Companies (Indian AccountingStandard) Rules 2015 as amended

e) On the basis of the written representations received from the Directors as on March31 2021 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2021 from being appointed as a director in terms of Section 164 (2) ofthe Act.

f) With respect to the adequacy of the internal financial control over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in Annexure "2"

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) 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.

3. With reference to other matters to be included in Auditors report in accordance withthe requirements of Section 197(16) ; In our opinion and to the best of our informationand according to the explanations given to us the remuneration paid by the Company to itsdirectors during the year is in accordance with the provisions of section 197 of the Act.

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 FINANCIALSTATEMENT OF FINE LINE CIRCUITS LIMITED: i. (a) The Company has maintained properrecords showing full particulars including quantitative details and situation of fixedAssets 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 during the year which in our opinion is reasonablehaving regard to the size of the Company and the nature of its Inventories. No materialdiscrepancies 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 theprovisions of section 185 and 186 of the Companies Act 2013 with respect to the loansinvestments guarantees and security are not 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 Company undisputed statutory dues includingProvident Fund Employees' State Insurance Income Tax duty of Customs Goods and ServiceTax Cess and other material statutory dues have generally been regularly deposited withthe appropriate authorities. According to the information and explanations given to us noundisputed amounts payable in respect of the aforesaid dues were outstanding as at March31 2021 for a period of more than six months from the date of becoming payable.

b) According to the information and explanations given to us there are no disputedaforesaid statutory dues pending as on 31stMarch 31 2021.

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.

"Annexure 2" To the Independent Auditor's Report of even date on theFinancial Statements of FINE LINE CIRCUITS LIMITED

(Referred to in paragraph 2 (f) under report on other Legal and Regulatory requirementsof our report of even date.) Report on the Internal Financial Controls with reference tothe aforesaid financial statements under Clause (i) of Sub-section 3 of Section 143 of theCompanies Act 2013 ("the Act")

We have audited the internal financial controls with reference to financial statementsof FINE LINE CIRCUITS LIMITED("the Company") as of March 31 2021 inconjunction with our audit of the financial statements of the Company for the year endedon 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 with reference to the financial statementcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of CharteredAccountants of India. These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statement based on our audit. We conducted our auditin accordance with the Guidance Note issued by the ICAI and the Standards on Auditingprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls with reference tofinancial statement was established and maintained and if such controls operatedeffectively in all material respects. Our audit involves performing procedures to obtainaudit evidence about the adequacy of the internal financial controls system with referenceto financial statement and their operating effectiveness. Our audit of internal financialcontrols with reference to financial statement included obtaining an understanding ofinternal financial with reference to financial statement assessing the risk that amaterial weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system with reference tofinancial statements.

Meaning of Internal Financial Controls with reference to financial statements

A company's internal financial control with reference to financial statements is aprocess designed to provide a reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control withreference to financial statements includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference to financialstatements

Because of the inherent limitations of internal financial controls with financialstatements 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 with reference tofinancial statements to future periods are subject to the risk that the internal financialcontrol with reference to the financial statements may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay 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 with reference to financial statements and such internal financial controls wereoperating effectively as at March 31 2021 based on the internal financial control withreference to financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note.

For Ratanghayara & Co.
Chartered Accountants
Firm Registration No. 117626W
Paresh Ratanghayara
Proprietor
Membership No. 103325
UDIN : 21103325AAAABG4683
Mumbai.
Dated :12thJune 2021

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