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Hathway Bhawani Cabletel & Datacom Ltd.

BSE: 509073 Sector: Media
NSE: N.A. ISIN Code: INE525B01016
BSE 12:16 | 22 Jan 4.41 0.21
(5.00%)
OPEN

4.41

HIGH

4.41

LOW

4.41

NSE 05:30 | 01 Jan Hathway Bhawani Cabletel & Datacom Ltd
OPEN 4.41
PREVIOUS CLOSE 4.20
VOLUME 51
52-Week high 5.35
52-Week low 2.88
P/E 1.15
Mkt Cap.(Rs cr) 4
Buy Price 4.41
Buy Qty 13487.00
Sell Price 3.46
Sell Qty 49.00
OPEN 4.41
CLOSE 4.20
VOLUME 51
52-Week high 5.35
52-Week low 2.88
P/E 1.15
Mkt Cap.(Rs cr) 4
Buy Price 4.41
Buy Qty 13487.00
Sell Price 3.46
Sell Qty 49.00

Hathway Bhawani Cabletel & Datacom Ltd. (HATHWAYBHAWANI) - Auditors Report

Company auditors report

To the Members of Hathway Bhawani Cabletel & Datacom Limited Report on theStandalone Financial Statements

We have audited the accompanying standalone financial statements of Hathway BhawaniCabletel & Datacom Limited (‘the Company') which comprise the Balance Sheetas at March 312018 the Statement of Profit and Loss (including Other ComprehensiveIncome) the Cash Flow Statement and the Statement of Changes in Equity for the year thenended and a summary of the significant accounting policies and other explanatoryinformation (hereinafter referred to as standalone financial statements).

Management's Responsibility for the Standalone 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 financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (‘Ind AS') specifiedunder section 133 of the Act read with the relevant rules issued thereunder.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under section 143(10) of the Act and other applicablepronouncements issued by the Institute of Chartered Accountants of India (‘ICAI').Those

Standards and pronouncements require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether the standalonefinancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the standalone financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thestandalone financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial controls relevant to the Company'spreparation of the standalone financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the standalone financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the Ind AS of the state ofaffairs of the Company as at March 312018 and its losses (including other comprehensiveincome) its cash flows and the changes in equity for the year ended on that date.

Other matters

The Standalone financial statements of the Company for the year ended March 31 2017were audited by predecessor auditor who expressed an unmodified opinion on thosestatements on May 23 2017.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 (‘the Order')issued by the Central Government of India in terms of section 143(11) of the Act we givein the ‘Annexure A' a statement on the matters specified in the paragraph 3 and 4 ofthe Order.

2. As required by section 143 (3) of the Act we report that:

a) We have sought and obtained all the information and explanations which to the

best of 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 the Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account;

d) In our opinion the aforesaid standalone financial statements comply with the IndianAccounting Standards specified under section 133 of the Act read with relevant rulesissued thereunder and relevant provisions of the Act;

e) On the basis of the written representations received from the directors as on March312018 taken on record by the Board of Directors none of the directors is disqualifiedas on March 312018 from being appointed as a director in terms of section 164(2) of theAct;

f) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B"; and

g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company does not have any pending litigation which would impact its financialposition in its financial statements;

ii. The Company did not have any material foreseeable losses on long term contractsincluding derivative contracts; and

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund.

For Nayan Parikh & Co.
Chartered Accountants
Firm's Registration No: 107023W
Mumbai K Y Narayana
Dated: May 8 2018 Partner
Membership No: 060639

Annexure A to the Independent Auditor's Report

Referred to in paragraph 1 under the heading "Report on Other Legal &Regulatory Requirements" of our report on even date to the members of the Company onstandalone financial statements for the year ended March 312018:

(i) (a) The Company has maintained records of Property Plant and Equipments other

than distribution equipments showing particulars of assets including quantitativedetails and location except the following:

- Location-wise particulars of some of the Distribution Equipments like cabling andother line equipments. As explained to us nature of such assets is such that maintaininglocation-wise particulars is impractical; and

- Location-wise particulars of Access Devices with the end users. The Company hasmaintained proper records showing full particulars including quantitative details andsituation of Property Plant and Equipments;

(b) According to the information and explanations given to us Property Plant andEquipments were physically verified during the year as per the programme of verificationwhich in our opinion is reasonable. Material discrepancies arising on such physicalverification have been properly dealt within the books of accounts;

(c) The Company does not hold any immovable properties. Accordingly the paragraph 3(i)(c) of the Order regarding title deeds of immovable properties is not applicable;

(ii) According to the information and explanations given to us the Company does nothold any inventories and accordingly paragraph 3(ii) of the Order is not applicable;

(iii) The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Act. Accordingly paragraph 3(iii)(a) (b) and (c) of the Order are notapplicable;

(iv) The Company has not granted any loans or made any investments or provided anyguarantees or security to the parties covered under sections 185 and 186 of the Act.Accordingly paragraph 3(iv) of the Order is not applicable to the Company;

(v) In our opinion and according to the information and explanation given to us theCompany has not accepted deposits from the public and therefore the provisions

sections 73 to 76 or any other relevant provisions of the Act and the rules framedthere under are not applicable to the Company. We have been informed by the managementthat no order has been passed by the Company Law Board or National Company Law Tribunal orReserve Bank of India or any court or any other tribunal in this regard;

(vi) The Central Government has not prescribed maintenance of cost records undersection 148(1) of the Act for the services rendered by the Company;

(vii) (a) The Company has generally been regular in depositing with appropriateauthorities undisputed statutory dues such as provident fund employees' state insuranceincome tax sales tax service tax duty of customs goods and service tax duty ofexcise value added tax cess and other applicable statutory dues. According toinformation and explanations given to us no undisputed statutory dues payable were inarrears as at March 312018 for a period of more than six months from the date theybecame payable;

(b) According to the information and explanations given to us there are no outstandingdisputed dues payable by the Company in case of income tax sales tax service tax dutyof customs duty of excise value added tax goods and service tax cess and any otherstatutory dues as on March 312018;

(viii) The Company has not taken any Loans from Banks Financial Institutions andGovernment during the year. Further the Company has not issued any debentures.Accordingly paragraph 3(viii) of the Order is not applicable;

(ix) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) nor any term loans during period under audit.Accordingly paragraph 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 generally accepted auditing practices in India andaccording to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe year;

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not paid/provided managerialremuneration. Accordingly paragraph 3(xi) of the Order is not applicable;

(xii) In our opinion and according to information and explanation given to us theCompany is not a Nidhi Company. Accordingly 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 and details of suchtransactions have been disclosed in the standalone financial statements as required by theapplicable accounting standards;

(xiv) Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to information and explanations givenby the management the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year.Accordingly paragraph 3(xvi) of the Order is not applicable to the Company;

(xv) Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements the Company has not entered into any non-cashtransactions with directors. We have been informed that no such transactions have beenentered into with person connected with directors. Accordingly paragraph 3(xv) of theOrder is not applicable to the Company; and

(xvi) The Company is not required to be registered under section 45 IA of the ReserveBank of India Act 1934.

For Nayan Parikh & Co.
Chartered Accountants
Firm's Registration No: 107023W
Mumbai K Y Narayana
Dated: May 8 2018 Partner
Membership No: 060639

Annexure B to the Independent Auditor's Report

Report on the Internal Financial Controls under section 143(3)(i) of the Act

We have audited the internal financial controls with reference to financial statementsof the Company as of March 31 2018 in conjunction with our audit of the standalonefinancial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal controls over financial reporting criteriaestablished by the Company considering the essential components of internal controlsstated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (‘Guidance note') issued by the Institute of Chartered Accountants of India(‘ICAI'). These responsibilities include the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to Company's policiesthe safeguarding 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 Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note and the Standards on Auditing specified under section143(10) of the Act to the extent applicable to an audit of internal financial controlsboth issued by ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls with reference to financial statements 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 with reference to financial statements and theiroperating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of internal financial controlswith reference to financial statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk.

The procedures selected depend on the auditor's judgment including the assessment ofthe risks of material misstatement of the standalone financial statements whether due tofraud 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 systemwith reference to financial statements.

Meaning of Internal Financial Controls with reference to Financial Statements

A company's internal financial control with reference to financial statement is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of standalone financial statements for external purposes inaccordance with generally accepted accounting principles. A company's internal financialcontrol with reference 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) providereasonable assurance that transactions are recorded as necessary to permit preparation ofstandalone financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorizations of management and directors of the Company; and (3) providereasonable assurance regarding prevention or timely detection of unauthorized acquisitionuse or disposition of the Company's assets that could have a material effect on thestandalone financial statements.

Inherent Limitations of Internal Financial Controls with reference to FinancialStatements

Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to future periods are subject to the risk that theinternal financial controls with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system with reference to financial statements and such internalfinancial controls with reference to financial statements were operating effectively as atMarch 312018 based on the internal controls with reference to financial statementcriteria established by the

Company considering the essential components of internal controls stated in theGuidance Note.

For Nayan Parikh & Co.
Chartered Accountants
Firm's Registration No: 107023W
Mumbai K Y Narayana
Dated: May 8 2018 Partner
Membership No: 060639