To the Members of
RELICAB CABLE MANUFACTURING LIMITED Report on the Audit of Financial Statements.Opinion
We have audited the accompanying financial statements of RELICAB CABLE MANUFACTURINGLIMITED ("the Company") which comprise the Balance Sheet as at March 312019 the Statement of Profit and Loss account ((including Other ComprehensiveIncome) the Statement of Changes in Equity and statement of Cash flow for the year endedon that date and a summary of significant accounting policies and other explanatoryinformation.
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 ("The Act") in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the company as at 31 March 2019 the Profit and total comprehensiveincome changes in equity and its cash flow for the year ended on that date
Basis for Opinion
We conducted our audit of the financial statements in accordance with the Standards onAuditing specified under section 143(10) of the Act (SAs). Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe Financial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the independence requirements that are relevant to our audit ofthe financial statements under the provisions of the Act and the Rules made thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the ICAI's Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thefinancial statements.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined the matters described below to be the key audit matters to be communicatedin our report.
|Sr. No ||Key Audit Matters ||Auditor's Response |
|1. ||Income reported under Export / Import Duty/Advance License ||The Management has confirmed that the export incentive receivable against export by the company during 2018-19. This in our opinion contingent income and should be recorded only upon materialization of event. |
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance total comprehensiveincome changes in equity and cash flows of the Company in accordance with accountingprinciples generally accepted in India. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.
The Board of Directors are responsible for overseeing the Company's financial reportingprocess.
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 judgment andmaintain professional skepticism 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 financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such 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 auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements 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.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by section 143(3) of the Act we report to the extent applicable that:
a. we have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose 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 Statement of Profit and Loss account including othercomprehensive Income Statement of change in equity and Cash flow statement dealt with bythis report are in agreement with the books of account;
d. in our opinion the Balance Sheet Statement of Profit and Loss account and Cashflow statement comply with the Accounting Standards referred to in section (3C) of section133 of the Act read with Rule 7 of the companies (Accounts) Rules 2014;
e. on the basis of written representations received from the directors as on 31stMarch 2019 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 from being appointed as a director interms of clause (g) of sub-section (1) of section 164(2) of the Companies Act 2013.
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 ourseparate report in "Annexure A" Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting
g. With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended:
In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.
h. 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 in our opinionand to the best of our information and according to explanations given to us :
i. The Company has disclosed the impact if any of pending litigations in itsfinancial statements;
ii. The company did not have any long term contracts including derivative contracts forwhich they were any material foreseeable losses.
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
2. 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 we give in"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of theOrder.
ANNEXURE A' TO AUDITOR'S REPORT
(Referred to in paragraph 1(f) under Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Relicab Cable Manufacturing Limitedfor the year ended 31st March 2019.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 (the Act')
1. We have audited the internal financial controls over financial reporting of RelicabCable Manufacturing Limited as of March 31 2019 in conjunction with our audit of thefinancial statements of the company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
2. The respective Board of Directors are responsible for establishing and maintaininginternal financial controls based on 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 the respective company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.
3. 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 on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") issued by the ICAI and the Standards on Auditing deemed tobe prescribed under section 143(10) of the Companies Act 2013 to the extent applicableto an audit of internal financial controls both applicable to an audit of internalfinancial controls and both issued by the ICAI. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects.
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 judgment 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 internal financial control system over financialreporting of the Company.
Meaning of Internal Financial Controls over Financial Reporting
4. A company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting 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 limitation of internal financial controls over financial reporting.
5. Because of inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material statement due to error or fraud may occur and not be detected. Alsoprojections of any evaluation of internal financial controls over financial reporting tofuture periods are subject to the risk that the internal financial control over financialreporting may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.
6 . According to the in our opinion to the best of the information andexplanation given to us the company has in all material respects an adequate internalfinancial control system over financial reporting and such internal financial control overfinancial reporting were effective as at March 31 2019 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control states in the Guidance Note.
ANNEXURE B' TO THE INDEPENDENT AUDITOR'S REPORT
As required by section 143(11) of the act we report to the extent applicable that:
1. In respect of the Company's fixed assets:
(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The Company has a program of verification to cover all the items of fixed assets ina phased manner which in our opinion is reasonable having regard to the size of theCompany and the nature of its assets. Pursuant to the program certain fixed assets werephysically verified by the management during the year. According to the information andexplanations given to us no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us the records examined byus and based on the examination of the books of accounts Company do not have immovableproperties as at balance sheet date and hence clause for ownership of the property do notapplicable to company to that extent.
2. The Company is in the business of cable and component manufacturing and maintainedstock records during the year and does not have any physical inventories. Accordinglyreporting under clause 3 (ii) of the Order is not applicable to the Company
3. The company has not granted any loans secured or unsecured to companies firm orother parties covered in the registration maintained under section 189 of the CompaniesAct 2013 hence clause No. iii(a) iii(b) and iii(c) of the Order not applicable to theCompany.
4. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the Act in respect ofgrant of loans making investments and providing guarantees and securities as applicable.
5. The Company has not accepted deposits during the year and does not have anyunclaimed deposits as at March 31 2019 and therefore the provisions of the clause 3 (v)of the Order are not applicable to the Company
6. The maintenance of cost records has not been specified by the Central Governmentunder section 148(1) of the Companies Act 2013 for the business activities carried out bythe Company. Thus reporting under clause 3(vi) of the order is not applicable to theCompany.
7. According to information and explanation given to us the company is regular indepositing undisputed statutory dues including provident fund employees' stateinsurances income-tax sales tax wealth tax service tax duty of customs duty excisevalue added tax cess and any other statuary dues with the appropriate authorities whetherapplicable. As such there are no arrears of outstanding statutory dues as at the last dayof the financial year concerned for a period of more than six month from the date theybecame payable except the items listed below are outstanding dues to be payable as perIncome Tax Site:-
|Sr. No. ||Nature of dues ||Period ||Amount (In Rupees) |
|1 ||Tax Deducted At source ||F.Y.2016-17 ||15828.00 |
|2 ||Tax Deducted At source ||F.Y. 2007 TO 2013 ||52629.00 |
| ||TOTAL Rs. || ||68457.00 |
|Sr. No. ||Nature of the statute ||Nature of dues ||Forum where Dispute is Pending ||Period to which the Amount Relates ||Amount (In Rupees) |
|1. ||The Income Tax Act 1961 ||Income Tax ||CPC ||A.Y.2013-14 ||21320.00 |
|2. ||The Income Tax Act 1961 ||Income Tax ||CPC ||A.Y.2014-15 ||2924.00 |
|3. ||The Income Tax Act 1961 ||Income Tax ||CPC ||A.Y.2016-17 ||170460.00 |
| ||TOTAL Rs. || || || ||194704.00 |
8. The Company has taken loans or borrowings from financial institutions /banks and therepayment of loan and interest thereon is timely paid by the Company. There was no delayin payment of interest and principal as on Balance sheet signing date.
9. The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) or term loans and hence reporting under clause 3 (ix)of the Order is not applicable to the Company.
10. To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company or no material fraud on the Company by its officersor employees has been noticed or reported during the year.
11. The company has paid managerial remuneration for the year within the prescribedlimit as per the clauses 3(xi) of the Order.
12. The company is not a Nidhi company; hence the reporting under clauses 3(xii) of theOrder is not applicable to the company.
13. In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the standalone financial statements as required by theapplicable accounting standards.
14. During the year the company has not made any preferential allotment or privateplacement of shares or convertible debentures; hence the reporting under clauses 3(xiv) ofthe Order is not applicable to the company.
15. 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 to its directors and hence provisions of section 192 of theCompanies Act 2013 are not applicable to the Company
16. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
| ||For JAIN JAGAWAT KAMDAR & CO. |
| ||Chartered Accountants |
| ||Firm Regn. No. 122530W |
| ||CA Chandrashekhar Jagawat |
| ||Partner |
| ||M.No:- 116078 |
|Place : Mumbai || |
|Date: 30/05/2019 || |