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Universal Cables Ltd.

BSE: 504212 Sector: Engineering
NSE: UNIVCABLES ISIN Code: INE279A01012
BSE 00:00 | 17 Feb 149.80 -1.95
(-1.29%)
OPEN

151.00

HIGH

152.50

LOW

149.00

NSE 00:00 | 17 Feb 149.75 -2.40
(-1.58%)
OPEN

154.60

HIGH

154.60

LOW

148.80

OPEN 151.00
PREVIOUS CLOSE 151.75
VOLUME 2121
52-Week high 266.85
52-Week low 128.00
P/E 7.00
Mkt Cap.(Rs cr) 520
Buy Price 149.80
Buy Qty 101.00
Sell Price 151.30
Sell Qty 81.00
OPEN 151.00
CLOSE 151.75
VOLUME 2121
52-Week high 266.85
52-Week low 128.00
P/E 7.00
Mkt Cap.(Rs cr) 520
Buy Price 149.80
Buy Qty 101.00
Sell Price 151.30
Sell Qty 81.00

Universal Cables Ltd. (UNIVCABLES) - Auditors Report

Company auditors report

TO THE MEMBERS OF UNIVERSAL CABLES LIMITED

Report on the Audit of Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of Universal CablesLimited ("the Company") which comprise the Balance Sheet as at 31st March2019 the Statement of Profit and Loss (including other comprehensive income) the CashFlow Statement and the Statement of Changes in Equity for the year then ended and asummary of the significant accounting policies and other explanatory information.

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 Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and accounting principles generally accepted in India ofthe state of affairs of the Company as at 31st March 2019 its profit totalcomprehensive incomeits cash flows and the changes in equity for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing (SAs) specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone financial statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India together with the ethical requirementsthat are relevant to our audit of the standalone financial statements under the provisionsof the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report:

Key Audit Matter Auditor's Response
1 Revenue recognition for construction contracts: Our audit procedure included among others:
In respect of construction contracts the management is required to make various accounting estimates and judgements for the purpose of revenue recognition over time like identification of performance obligation determination of transaction price the stage of completion the timing of revenue recognition estimated project costs and revenue. The process among others take into consideration contract risks price variation claims liquidated damages & penalties recoverability of trade receivables. The Company periodically reviews the estimates involved and any cumulative effect of such changes are recognised in the period in which such changes are determined. Refer Note No. 1.4 and Note No. 1.5(k) of the standalone financial statements. • Reviewing the terms and conditions of contracts on sample basis (including amendments/modifications/ clarifications thereon if any) for the purpose of identification of performance obligation reviewing the estimated contract revenue and costs including consistent application and adjustments thereon on account of potential liquidated damages and penalties if any change in scope actual cost incurred till year end etc.
• Testing the internal controls adopted by the Company relevant to ensuring the completeness and accuracy of revenue recognition.
• Reviewed the adequacy of the disclosures in the Notes to the standalone financial statements.

Information Other than the Standalone financial statements and Auditor's Thereon Report

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual report 2018-19 but does notinclude the Standalone financial statements and our auditor's report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.

Based on the work we have performed if we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Responsibilities of management and those charged with governance for thestandalonefinancialstatements

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 standalone financial statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income cash flows and changes in equity of the Company in accordancewith the Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.In preparing the standalone financial statements the Management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless the Management either intends to liquidate the Company or tocease operations or has no realistic alternative but to do so.

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

Auditor's responsibility for the audit of standalone financial statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our 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 financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalonefinancial 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 our 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 Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company 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 standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

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 withthose charged with governance we determine those matters that were of most in the auditof the standalone financial statements of the current period and are therefore the keyaudit matters. We describe these matters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine 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 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 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 theIndian Accounting Standards specified under Section 133 of the Act.

(e) On the basis of written representations received from the directors as on 31stMarch 2019 taken on record by the Board of disqualified Directors none of thedirectors as on 31st March 2019 from being appointed as a director in terms of Section164 (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 ourseparate report in "Annexure A". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial 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 opinionand to the best of our information and according to the explanations given to us theremuneration paid/provided by the Company to its directors during the year is inaccordance with the provisions of section 197of 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 the explanations given to us:

i. The Company has disclosed the impact if any of pending litigations on itsfinancial position in its standalone financial statements Refer Note No. 38 to thestandalone 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 transferredto theInvestor Education and Protection Fund by the Company during the year ended 31st March2019.

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act and on the basis of such checks of the books and records of the Company as weconsidered appropriate and according to the information and explanations given to us wegive in the "Annexure B" a statement on the matters specified in the paragraphs3 and 4 of the said Order.

For V. Sankar Aiyar & Co.

Chartered Accountants ICAI Firm Regn. No. 109208W

(Karthik Srinivasan) Partner Membership No. 514998

Place : New Delhi Dated : 16th May 2019

Annexure "A" to the Independent Auditors' Report

(Referred to in Paragraph 1(f) under ‘Report on Other Legal and Regulatoryrequirements' of our report on even date) Report on the Internal Financial Controls overFinancial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Act

We have audited the internal financial controls over financial reporting of the Companyas of March 31 2019 in conjunction with our audit of the standalone financial statementsof 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 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 Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India(ICAI). These responsibilities include the design implementation and maintenance ofadequate 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.

Auditors' Responsibility

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 and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting 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 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 judgement including the assessment of the risks ofmaterial misstatement of the standalone financial statements whether due to fraud orerror.

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 systemover 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 standalone 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 themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of standalonefinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the Company are being made only in accordance withauthorisations of management and directors of the Company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the Company's assets that could have a material effect on the standalonefinancial 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 our 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 2019 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note issued by theICAI.

For V. Sankar Aiyar & Co.

Chartered Accountants ICAI Firm Regn. No. 109208W

(Karthik Srinivasan) Partner Membership No. 514998

Place : New Delhi Dated : 16th May 2019

Annexure "B" to the Independent Auditors' Report

(Referred to in Paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements' section of our Report on even date)

Based on the audit procedures performed for the purpose of reporting a true and fairview on the standalone financial statements of the Company and taking into considerationthe information and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit and to the best of our knowledge and beliefwe report that:

i a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b) Major items of fixed assets were physically verified during the year by themanagement in accordance with regular programme of verification which in our opinionprovides for physical of all the fixed assets at reasonable intervals. No materialdiscrepancies were noticed on such verification.

c) In our opinion and according to the information and explanations given to us andrepresentation obtained from the management the title deeds of immovable properties areheld in the name of the Company.

ii The inventories have been physically verified by the management at reasonableintervals during the year. In our opinion the frequency of is reasonable and no materialdiscrepancies were noticed on physical verification.

iii The Company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties required to be covered in the registermaintained under section 189 of the Act. Therefore the provisions of clause 3(iii) (a) to(c) of the Order are not applicable.

iv In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Act in respect ofgrant of loans making investments and providing guarantees and securities as applicable.

v The Company has not accepted any deposits within the meaning of Sections 73 to 76 ofthe Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended). Accordinglythe provisions of clause 3(v) of the Order are not applicable.

vi We have broadly reviewed the books of accounts maintained by the Company pursuant tothe rules made by the Central Government for the maintenance of cost records under section148(1) of the Act and are of the opinion that prima facie the prescribed accounts andrecords have been maintained. We have not however made a detailed examination of therecords for the year with a view to determine whether they are accurate and complete.

vii a) According to the records of the Company the Company has been generally regularin depositing undisputed statutory dues including provident fund employees' stateinsurance income-tax duty of customs Goods and Services Tax (GST) cess and othermaterial statutory dues with the appropriate authorities. There were no arrears ofundisputed statutory dues as at 31st March 2019 which were outstanding for a period ofmore than six months from the date they became payable.

b) There are no disputed dues which have remained unpaid as on 31st March 2019 inrespect of income tax or sale tax or service tax or duty of customs or duty of excise orvalue added tax.

viii On the basis of the of records and information and explanations given to us theCompany has not defaulted in repayment of loans and borrowings to banks. The Company doesnot have any loans or borrowings from financial institution or government in the books ofaccounts at any time during the year. The Company has not issued any debentures.Therefore the question of default in repayment of dues of debenture holders does notarise.

ix The Company did not raise any money by way of initial/further public offer(including debt instruments) and term loans taken during the year have been applied forthe purpose for which they were obtained.

x Based on the audit procedure performed and the representation obtained from themanagement no material fraud by the Company or on the Company by its officers andemployees has been noticed or reported during the year.

xi According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V of the Act.

xii The Company is not a Nidhi Company. Therefore the provisions of clause 3(xii) ofthe Order are not applicable.

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 section 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 During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures. Therefore the provisionsof clause 3(xiv) of the Order are not applicable.

xv According to the information and explanations given to us and the representationobtained from the management the Company has not entered into any non-cash transactionswith directors or persons connected with them under section 192 of the Act. Therefore theprovisions of clause 3(xv) of the Order are not applicable. xvi In our opinion andaccording to the information and explanations given to us the Company is not required tobe registered under section 45-IA of the Reserve Bank of India Act 1934.

For V. Sankar Aiyar & Co.

Chartered Accountants ICAI Firm Regn. No. 109208W

(Karthik Srinivasan) Partner Membership No. 514998

Place : New Delhi

Dated : 16th May 2019