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Precision Wires India Ltd.

BSE: 523539 Sector: Metals & Mining
NSE: PRECWIRE ISIN Code: INE372C01037
BSE 10:43 | 07 Jul 67.10 0.80
(1.21%)
OPEN

66.35

HIGH

67.35

LOW

66.35

NSE 10:29 | 07 Jul 67.30 0.60
(0.90%)
OPEN

67.50

HIGH

67.50

LOW

66.30

OPEN 66.35
PREVIOUS CLOSE 66.30
VOLUME 128
52-Week high 131.45
52-Week low 37.60
P/E 12.31
Mkt Cap.(Rs cr) 776
Buy Price 67.10
Buy Qty 210.00
Sell Price 67.30
Sell Qty 25.00
OPEN 66.35
CLOSE 66.30
VOLUME 128
52-Week high 131.45
52-Week low 37.60
P/E 12.31
Mkt Cap.(Rs cr) 776
Buy Price 67.10
Buy Qty 210.00
Sell Price 67.30
Sell Qty 25.00

Precision Wires India Ltd. (PRECWIRE) - Auditors Report

Company auditors report

To

The Members of Precision Wires India Ltd.

Opinion

I have audited the accompanying standalone financial statements of PRECISION WIRESINDIA LIMITED ("the Company") which comprise the Balance Sheet as at March 312021 and the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and the Statement of Cash Flows for the year then ended anda summary of the significant accounting policies and other explanatory information.

In my opinion and to the best of my information and according to the explanations givento me

i) the Statement together with the notes thereon are presented in the formatprescribed under Regulation 33 and Regulation 52 of the SEBI (Listing Obligations andDisclosure Requirements) Regulations 2015 in this regard; and

ii) the aforesaid standalone financial statements give the information required by theAct in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2021 and its profit total comprehensive income the changes in equityand its cash flows for the year ended on that date.

Basis of Opinion

I conducted my audit in accordance with the Standards on Auditing (SAs) specified underSection 143(10) of the Act. My responsibilities under those SAs are further described inthe 'Auditor's Responsibilities for the Audit of the Ind AS Financial Statements' sectionof my report. I am independent of the company in accordance with the Code of Ethics issuedby the Institute of Chartered Accountants of India ('ICAI') and I have fulfilled my otherethical responsibilities in accordance with the provisions of the Act.

I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis of my opinion.

Key Audit Matter

Key audit matters are those matters that in my professional judgment were of mostsignificance in my audit of the standalone financial statements of the current period.These matters were addressed in the context of my audit of the standalone financialstatements as a whole and in forming my opinion thereon and I do not provide a separateopinion on these matters

Assessment of Recoverability of Trade Receivables

The aggregate Trade Receivables as at 31st March 2021 were Rs. 44011.04lakhs which constitute approx. 56% of the Gross Assets of the Company.

The Company reviews the recoverability of the Trade Receivables periodically includingat the Balance Sheet Date. Receivables which are not expected to be recovered are writtenoff as Bad Debts. In addition to the Bad Debts written off provisions made in theAccounts for Expected Credit Loss based on past record of irrecoverable Trade Receivables.

How the Audit addressed the Key Audit matters

The audit procedures included amongst others review of age analysis of TradeReceivables review of Trade Receivables overdue by more than a certain period discussionwith management of the reasons for such overdue trade receivables and the efforts made forrecovery of the same.

The audit procedures also include checking recovery of Trade Receivables as at BalanceSheet Date subsequently up to the date of the audit.

I have considered this to be a key audit matter as the amount of Trade Receivables aremostly unsecured and constitute the largest component of the Balance Sheet and thereforehave a significant impact on the financial position of the Company.

Other Information

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual report but does not includethe standalone Ind AS financial statements and my auditor's report thereon.

My opinion on the standalone Ind AS financial statement does not cover the otherinformation and I do not express any form of assurance conclusion thereon.

In connection with my audit of the standalone Ind AS financial statements myresponsibility is to read the other information and in doing so consider whether suchother information is materially inconsistent with the financial statements or my knowledgeobtained in the audit or otherwise appears to be materially misstated. If based on thework I have performed I conclude that there is a material misstatement of this otherinformation I am required to report that fact. I have nothing to report in this regard.

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 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 Indian Accounting Standards (Ind AS)prescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended and other accounting principles generally accepted inIndia.

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.

In preparing the standalone Ind AS financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicable matters 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.

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

Auditor's Responsibilities for the Audit of the Ind AS Financial Statements

My objective is 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 my 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 or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone Ind AS financial statements.

As part of an audit in accordance with SAs I exercise professional judgment andmaintain professional skepticism throughout the audit. 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 my 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 I am also responsible for expressing my 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 I conclude that a material uncertainty existsI am required to draw attention in my auditor's report to the related disclosures in thefinancial statements or if such disclosures are inadequate to modify my opinion. Myconclusions are based on the audit evidence obtained up to the date of my 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 IndAS financial statements including the disclosures and whether the standalone Ind ASfinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

I 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 I identify during my audit.

I also provide those charged with governance with a statement that I have complied withrelevant ethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on my independenceand where applicable related safeguards.

From the matters communicated with those charged with governance I determine thosematters that were of most significance in the audit of the standalone Ind AS financialstatements for the financial year ended March 312021 and are therefore the key auditmatters. I describe these matters in my auditor's report unless law or regulation productsprecludes public disclosure about the matter or when in extremely rare circumstances Idetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication. 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 in terms of Section 143(11) of the Act I give in"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

A. As required by Section 143(3) of the Act based on my audit I report that:

a) I have sought and obtained all the information and explanations which to the best ofmy knowledge and belief were necessary for the purposes of our audit.

b) in my opinion proper books of account as required by law have been kept by theCompany so far as it appears from my examination of those books.

c) the Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the books of account.

d) in my opinion the aforesaid financial statements comply with the Indian AccountingStandards prescribed under section 133 of the Act.

e) on the basis of the written representations received from the directors of theCompany as on March 312021 taken on record by the Board of Directors none of thedirectors is disqualified as on March 312021 from being appointed as a director in termsof Section 164(2) of the Act.

f) with respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to myseparate Report in "Annexure B". My report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

g) In my opinion and according to the information and explanations given to me theremuneration paid by the Company to its directors during the current year is in accordancewith the provisions of section 197 of the Act. The remuneration paid to any director isnot in excess of the limit laid down under Section 197 of the Act. The Ministry ofCorporate Affairs has not prescribed other details under section 197(16) which arerequired to be commented upon by me.

B. 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 inmy opinion and to the best of my information and according to the explanations given tome:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements.

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

ANNEXURE - A TO INDEPENDENTAUDITOR'S REPORT

With reference to the Annexure A of the Independent Auditors' Report or even date tothe members of Precision Wires India Ltd. on the financial statements for the year endedMarch 312021.

(i) a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

b) The fixed assets are physically verified by the Management according to a phasedprogramme designed to cover all the items over a period of three years which in myopinion is reasonable having regard to the size of the Company and the nature of itsassets. Pursuant to the programme a portion of the fixed assets has been physicallyverified by the Management during the year and I am informed that no materialdiscrepancies have been noticed on such verification.

c) The title deeds of immovable properties as disclosed in note on the fixed Assets tothe financial statements are held in the name of the Company.

(ii) The physical verification of inventory has been conducted at reasonable intervalsby the Management during the years except in respect of inventories of returnable plasticspools lying with customers. In my opinion the frequency of verification is reasonable.The discrepancies noticed on physical verification of inventory as compared to bookrecords were not material and have been appropriately dealt with in the books of accounts.

(iii) a) The Company has not granted any loans secured or unsecured to companiesfirms or other parties listed in the register maintained under Section 189 of the Act.

b) As the Company has not granted any loans secured or unsecured to parties referredto in para (a) above clause iii (a) of paragraph 4 of the Order is not applicable in thisrespect.

c) As the Company has not granted any loans secured or unsecured to parties referredto in para (a) above clause iii (b) of paragraph 4 of the Order is not applicable in thisrespect.

d) As the Company has not granted any loans secured or unsecured to parties referredto in para (a) above clause iii(c) of paragraph 4 of the Order is not applicable in thisrespect.

(iv) In my opinion and according to the information and explanations given to me theCompany has complied with the provisions of Section 185 and 186 of the Companies Act 2013in respect of the investments made.

(v) The Company has not accepted any deposits from the public within the meaning ofSections 73 and 74 of the Act and the Rules framed there under. Hence the directivesissued by the Reserve Bank of India and the provisions of sections 73 to 76 or any otherrelevant provisions of the Companies Act and the rules framed there under are notapplicable to the Company. According to the information and explanations given to me noorder under the aforesaid sections has been passed by Company Law Board or NationalCompany Law Tribunal or Reserve Bank of India or any court or any other tribunal.

(vi) Pursuant to the rules made by the Central Government of India the Company isrequired to maintain cost records as specified under Section 148 (1) of the Act in respectof its products. I have broadly reviewed the same and am of the opinion that primafacie the prescribed accounts and records have been made and maintained. I have nothowever made a detailed examination of the records with a view to determine whether theyare accurate or complete.

(vii) a) According to the information and explanations given to me and the records ofthe Company examined by me in my opinion the Company is generally regular in depositingthe undisputed statutory dues in respect of Goods and Service Tax sales tax includingvalue added tax provident fund employees' state insurance income tax service tax dutyof customs duty of excise cess and other material statutory dues as applicable withthe appropriate authorities.

b) According to the information and explanations given to me and the records of theCompany examined by me the particulars of dues of sales-tax including value added taxduty of customs and duty of excise as at March 31 2021 which have not been deposited onaccount of a dispute are as follows NIL

(viii) According to the records of the Company examined by me and the information andexplanation given to me the Company has not defaulted in repayment of loans or borrowingsto any financial institution or bank or Government or dues to debenture holders as at thebalance sheet date.

(ix) In my opinion and according to the information and explanations given to me theterm loans have been applied for the purposes for which they were obtained. No moneys wereraised by way of initial public offer or further public offer (including debtinstruments).

(x) During the course of my examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given me I have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have I been informed of any such case by theManagement.

(xi) The Company has paid / provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of Section197 read with Schedule V to theAct.

(xii) As the Company is not a Nidhi Company and the Nidhi Rules 2014 are notapplicable to it; the provisions of Clause 3(xii) of the Order are not applicable to theCompany.

(xiii) The Company has entered into transactions with related parties in compliancewith the provision of Sections 177 and 188 of the Act. The details of such related partytransactions have been disclosed in the financial statements as required under IndianAccounting Standard (Ind AS) 24 Related Party Disclosures specified under Section 133 ofthe Act read with Rule 7 of the Companies (Accounts) Rules 2014.

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.Accordingly the provisions of Clause 3(xiv) of the Order are not applicable to theCompany.

(xv) The Company has not entered into any non cash transactions with its directors orpersons connected with him. Accordingly the provisions of Clause 3(xv) of the Order arenot applicable to the Company.

(xvi) The Company is not required to be registered under Section 45-1A of the ReserveBank of India Act 1934. Accordingly the provisions of Clause 3(xvi) of the Order are notapplicable to the Company.

ANNEXURE - B TO INDEPENDENT AUDITOR'S REPORT

Report on the Internal Financial Controls under Clause

(I) of Sub-section 3 of Section 143 of the Companies Act 2013.

I have audited the internal financial controls over financial reporting of PrecisionWires India Limited ("the Company") as of 31st March 2021 inconjunction with my audit of the Ind AS financial statements of the Company for the yearended 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 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 ('ICAI'). 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 assets theprevention 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.

Auditors' Responsibility

My responsibility is to express an opinion on the Company's internal financial controlsover financial reporting based on my audit. I conducted my audit in accordance with theGuidance Note on Audit of Internal Financial Controls over Financial Reporting (the"Guidance Note") and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that I comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects

My audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. My 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 Ind AS financial statements whether due to fraudor error. I believe that the audit evidence I have obtained is sufficient and appropriateto provide a basis for my 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 process designedto provide 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 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 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.

Opinion

In my opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2021based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

Parvathy Ganesh
Chartered Accountant
Proprietor
Membership No. 132282
UDIN : 20132282AAAAAF9461
Place: Mumbai
Mumbai 23"1 June 2021

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