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Voith Paper Fabrics India Ltd.

BSE: 522122 Sector: Industrials
NSE: PORRITSPEN ISIN Code: INE285C01015
BSE 00:00 | 14 Aug 830.00 -2.55
(-0.31%)
OPEN

830.00

HIGH

830.05

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830.00

NSE 05:30 | 01 Jan Voith Paper Fabrics India Ltd
OPEN 830.00
PREVIOUS CLOSE 832.55
VOLUME 846
52-Week high 1001.70
52-Week low 665.10
P/E 20.12
Mkt Cap.(Rs cr) 364
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 830.00
CLOSE 832.55
VOLUME 846
52-Week high 1001.70
52-Week low 665.10
P/E 20.12
Mkt Cap.(Rs cr) 364
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Voith Paper Fabrics India Ltd. (PORRITSPEN) - Auditors Report

Company auditors report

To the Members of Voith Paper Fabrics India Limited

Report on the Audit of the Ind AS Financial Statements

We have audited the accompanying Ind AS fi nancial statements of Voith Paper FabricsIndia Limited ("the Company") which comprise the Balance Sheet as at 31 March2018 the Statement of Profi t and Loss the Statement of Changes in Equity and theStatement of Cash Flows for the year then ended and summary of the signifi cantaccounting policies and other explanatory information.

Management's Responsibility for the Ind AS 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 Ind AS fi nancial statements that give a true and fair view of the state of affairsprofi t and other comprehensive income changes in equity and cash fl ows of the Companyin accordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) prescribed under section 133 of the Act.

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 fi nancialcontrols that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the Ind AS fi nancialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the fi nancial 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.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS fi nancial statements basedon 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 Ind AS fi nancial statements in accordance with theStandards on Auditing specifi ed under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Ind AS fi nancial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS fi nancial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS fi nancial statements whether due to fraud or error. In making those riskassessments the auditor considers internal fi nancial control relevant to the Company'spreparation of the Ind AS fi nancial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the Ind AS fi nancial statements.

We are also responsible to conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast signifi cantdoubt on the entity's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in the auditor's report tothe related disclosures in the fi nancial statements or if such disclosures areinadequate to modify the opinion. Our conclusions are based on the audit evidenceobtained up to the date of the auditor's report. However future events or conditions maycause an entity to cease to continue as a going concern.

We believe that the audit evidence we have obtained is suffi cient and appropriate toprovide a basis for our audit opinion on the Ind AS fi nancial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS fi nancial statements give the information required bythe Act 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 31 March 2018 its profi t and other comprehensive income changes in equity and itscash fl ows for the year ended on that date.

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 we give in"Annexure A" a statement on the matters specifi ed in paragraphs 3 and 4 of theOrder.

2. As required by Section 143(3) of the Act we report that: a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit. b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books. c) The Balance Sheet the Statement of Profi t and Loss theCash Flow Statement and Statement of Changes in Equity dealt with by this Report are inagreement with the books of account. d) In our opinion the aforesaid Ind AS fi nancialstatements comply with the Indian Accounting Standards prescribed under section 133 of theAct. e) On the basis of the written representations received from the directors as on 31March 2018 taken on record by the Board of Directors none of the directors is disqualified as on 31 March 2018 from being appointed as a director in terms of Section 164(2) ofthe Act. f) With respect to the adequacy of the internal fi nancial controls withreference to fi nancial statements of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure B". g) With respect to theother matters to be included in the Auditor's Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules 2014 in our opinion and to the best of ourinformation and according to the explanations given to us: i. The Company has disclosedthe impact of pending litigations on its fi nancial position in its Ind AS fi nancialstatements.- Refer Note 37 to the Ind AS fi nancial statements; ii. The Company did nothave any long-term contracts including derivative contracts for which there were anymaterial foreseeable losses; iii. There has been no delay in transferring amountsrequired to be transferred to the Investor Education and Protection Fund by the Company;iv. The disclosures in the fi nancial statements regarding holdings as well as dealings inspecifi ed bank notes during the period from 8 November 2016 to 30 December 2016 have notbeen made since they do not pertain to the fi nancial year ended 31 March 2018. Howeveramounts as appearing in the audited Ind AS fi nancial statements for the period ended 31March 2017 have been disclosed. - Refer Note 44 to the Ind AS fi nancial statements.

For B S R & Co. LLP

Chartered Accountants

ICAI Firm Registration No.: 101248W/W-100022

Vikram Advani

Partner

Membership No: 091765

Place: New Delhi

Date: 4th May 2018

Annexure A referred to in paragraph 5 (i) of the Independent Auditor's Report to theMembers of Voith Paper Fabrics India Limited on the fi nancial statements for the yearended 31 March 2018

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

(b) The Company has a regular programme of physical verifi cation of its fi xed assetsby which all fi xed assets are verifi ed once in every two years. In accordance with thesaid programme fi xed assets were physically verifi ed by the management during theprevious year and no material discrepancies were noticed on such verifi cation. In ouropinion this periodicity of physical verifi cation is reasonable having regard to thesize of the Company and the nature of its assets.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company title deeds of immovable properties are held inthe name of the Company (also refer Note 3 to the fi nancial statements). (ii) Theinventories except goods-in-transit and stock lying with third parties have beenphysically verifi ed by the management during the year. For stock lying with third partywritten confi rmations have been obtained. In our opinion the frequency of such verification is reasonable. As informed to us no material discrepancies were noticed on suchverifi cation. (iii) According to the information and explanations given to us theCompany has not granted any loans secured or unsecured to companies fi rms limitedliability partnerships or other parties covered in the register maintained under Section189 of the Companies Act 2013. Thus paragraph 3(iii) of the Order is not applicable.

(iv) In our opinion and according to the information and explanations given to us theCompany has not granted any loans and advances covered under the provisions of section 185and 186 of the Act. Thus paragraph 3(iv) of the Order is not applicable.

(v) The Company has not accepted any deposits from the public during the year.

(vi) According to the information and explanations given to us the Central Governmenthas not prescribed the maintenance of cost records under section 148(1) of the Act forany of the product sold by the Company.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund employees' stateinsurance income tax sales tax service tax value added tax duty of customs duty ofexcise cess and other material statutory dues have been regularly deposited during theyear by the Company with the appropriate authorities. According to the information andexplanations given to us no undisputed amounts payable in respect of provident fundemployees' state insurance income tax sales tax service tax value added tax duty ofcustoms duty of excise cess and other material statutory dues were in arrears as at 31March 2018 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us there are no materialdues of duty of excise sales tax duty of customs service tax value added tax and cesswhich have not been deposited with the appropriate authorities on account of any dispute.However according to information and explanations given to us the following dues ofincome tax have not been deposited by the Company on account of disputes:

Name of the statute

Nature of dues

Amount Involved (Rs.)

Amount paid under protest

Amount not paid

Period to which amount

Forum where dispute is

(Rs.)

(Rs.)

relates

pending

Income Tax Disallowance of repair expenses on 6614020 6614020 - AY *
Act 1961 Machinery and others 2007-08
Income Tax Disallowance of repair expenses on 1715600 1715600 - AY *
Act 1961 Machinery and others 2008-09
Income Tax Disallowance of technical know-how 6385564 - 6385564 AY Income tax
Act 1961 repair expenses on Machinery and 2009-10 Appellate
others Tribunal
Income Tax Disallowance of technical know-how 10169127 - 10169127 AY Income tax
Act 1961 2010-11 Appellate
Tribunal
Income Tax Disallowance of technical know-how 11756960 - 11756960 AY Income tax
Act 1961 2011-12 Appellate
Tribunal
Income Tax Disallowance of technical know-how 11845150 3611900 8233250 AY Income tax
Act 1961 2012-13 Appellate
Tribunal
Income Tax Disallowance of technical know-how 8393370 - 8393370 AY Income tax
Act 1961 2013-14 Appellate
Tribunal

* During the year the Company has received favourable orders from Income tax AppellateTribunal in respect of AY 2007-08 and 2008-09. However according to information andexplanations given to us the department is expected to initiate further proceedingsagainst the order of Income tax Appellate Tribunal with the higher appellate authority.Hence these amounts are continue to be disclosed in the above table.

(viii) The Company does not have any loans or borrowings from any fi nancialinstitution banks government or debenture holders during the year. Accordinglyparagraph 3(viii) of the Order is not applicable.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3 (ix) of the Order is not applicable.

(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its offi cers or employees has been noticed or reportedduring the course of our audit.

(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 to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(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 fi nancial statements as required by theapplicable accounting standards.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. (xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

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

For B S R & Co. LLP

Chartered Accountants

ICAI Firm Registration No.: 101248W/W-100022

Vikram Advani

Partner

Membership No: 091765

Place: New Delhi

Date: 4th May 2018

Annexure - B to the Auditor's Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal fi nancial controls over fi nancial reporting of VoithPaper Fabrics India Limited ("the Company") as of 31 March 2018 in conjunctionwith our audit of the fi nancial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internal financial controls based on the internal control over fi nancial 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'). Theseresponsibilities include the design implementation and maintenance of adequate internalfi nancial controls that were operating effectively for ensuring the orderly and efficient conduct of its business including adherence to company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable fi nancialinformation as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal fi nancialcontrols over fi nancial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal fi nancial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal fi nancial controls over fi nancial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal fi nancial controls system over fi nancial reporting and their operatingeffectiveness. Our audit of internal fi nancial controls over fi nancial reportingincluded obtaining an understanding of internal fi nancial controls over fi nancialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material misstatement of the fi nancial statements whether due to fraud orerror. We believe that the audit evidence we have obtained is suffi cient and appropriateto provide a basis for our audit opinion on the Company's internal fi nancial controlssystem over fi nancial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal fi nancial control over fi nancial reporting is a process designedto provide reasonable assurance regarding the reliability of fi nancial reporting and thepreparation of fi nancial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal fi nancial control over fi nancialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly refl ect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of fi nancial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the fi nancial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal fi nancial controls over fi nancialreporting 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 fi nancial controls over fi nancialreporting to future periods are subject to the risk that the internal fi nancial controlover fi nancial 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 internal financial controls system over fi nancial reporting and such internal fi nancial controlsover fi nancial reporting were operating effectively as at 31 March 2018 based on theinternal control over fi nancial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For B S R & Co. LLP

Chartered Accountants

ICAI Firm Registration No.: 101248W/W-100022

Vikram Advani

Partner

Membership No: 091765

Place: New Delhi

Date: 4th May 2018