Auditors Report on Quarter and Year ended Standalone IND AS Financial Results ofKumar Wire Cloth Manufacturing Company Limited to the Regulation 33 of the SEBI (ListingObligations and Disclosure Requirements) Regulations 2015
Board of Directors
Kumar Wire Cloth Manufacturing Company Limited
1. We have audited the quarterly Ind AS standalone financial results of Kumar WireCloth Manufacturing Company Limited (the company) for the quarter and yearended 31 March 2018 attached herewith being submitted by the Company pursuant to therequirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015.
2. These standalone quarterly financial results as well as the year to date financialresults have been prepared on the basis of the standalone Ind AS financial statementswhich are the responsibility of the Company's management. Our responsibility is to expressan opinion on these financial results based on our audit of such standalone financialstatements which have been prepared in accordance with the recognition and measurementprinciples laid down in Accounting Standard prescribed under Section 133 of the CompaniesAct 2013 read with relevant rules issued thereunder; or by the Institute of CharteredAccountants of India as applicable and other accounting principles generally accepted inIndia.
3. We conducted our audit in accordance with the auditing standards generally acceptedin India. Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial results are free of material misstatement. An auditincludes examining on a test basis evidence supporting the amounts disclosed infinancial results. An audit also includes assessing the accounting principles used andsignificant estimates made by management. We believe that our audit provides a reasonablebasis for our opinion.
Basis for Qualified Opinion
(i) The Company has been declared sick by the Board of Industrial and FinancialReconstruction under Sick Industrial Companies (Special Provisions) Act 1985 vide orderdated February 21st 2006. And the Company has applied for waiver of Interest in respectof Income Tax and Vat/Sales Tax However vide Notification No. S.O. 3569(E) issued by theMinistry of Finance Central Government dated November 25 2016 Sick Industrial Companies(Special Provisions) Act 1985 (SICA) stand repealed with effect from 1st December 2016.As a consequence the proceedings of the Company on reference under SICA before Board forIndustrial and Financial Reconstruction (BIFR) abated and came to an end. Consequent tothe repeal of SICA w.e.f. December 1 2016 interest for default in payment of Income TaxVAT/Sales tax and other liability as may be levied by the concerned authorities has notbeen ascertained and provided for in the books of account. As explained by the managementthat the Company is expecting waiver/relief and therefore not provided for.
(ii) The Net Worth of the Company has been fully eroded and the Company has incurredcash losses in current year and corresponding previous years. The financial statementshowever been prepared on a going concern basis by the management. As explained by themanagement that the Company is looking for expansion of business operations and newbusiness avenues in near future and therefore financial statements have been prepared ongoing concern basis.
(iii) The amount in respect of trade receivables other current assets trade payablesunsecured loans and other current liabilities are subject to confirmation reconciliationsand adjustment thereof if any having consequential impact on the loss for the quarter andyear ended March 31 2018 accumulated losses assets and liabilities as at the yearended amount whereof is presently not ascertainable.
4. in our opinion and to the best of our information and according to the explanationsgiven to us except for the possible effects of the matter described in the Paragraph 3above these financial results are presented in accordance with the requirements ofRegulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations2015.
The Statement includes the results for the quarter ended 31st March 2018 andcorresponding quarter ended of the previous year being the balancing figure betweenaudited figures in respect of full financial year and the published year to date figuresup to the third quarter of the current and previous financial year.
For Amar Bafna & Associates