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Wires & Fabriks (S.A) Ltd.

BSE: 507817 Sector: Industrials
NSE: N.A. ISIN Code: INE469D01013
BSE 11:56 | 22 Apr 73.70 3.35
(4.76%)
OPEN

73.70

HIGH

73.70

LOW

73.70

NSE 05:30 | 01 Jan Wires & Fabriks (S.A) Ltd
OPEN 73.70
PREVIOUS CLOSE 70.35
VOLUME 1
52-Week high 129.85
52-Week low 68.75
P/E 22.20
Mkt Cap.(Rs cr) 23
Buy Price 73.70
Buy Qty 49.00
Sell Price 73.70
Sell Qty 49.00
OPEN 73.70
CLOSE 70.35
VOLUME 1
52-Week high 129.85
52-Week low 68.75
P/E 22.20
Mkt Cap.(Rs cr) 23
Buy Price 73.70
Buy Qty 49.00
Sell Price 73.70
Sell Qty 49.00

Wires & Fabriks (S.A) Ltd. (WIRESFABRIKS) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

WIRES & FABRIKS (S.A.) LIMITED

REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying Ind AS financial statements of Wires & Fabriks(S.A) Limited ("the Company") which comprise the Balance Sheet as at 31st March2018 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.

MANAGEMENT'S RESPONSIBILITY FOR THE 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 financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) specified underSection 133 of the Act read with relevant rules issued thereunder. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; designimplementation 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 Ind AS financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.

AUDITOR'S RESPONSIBILITY

Our responsibility is to express an opinion on these Ind AS financial 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 in accordance with the Standards on Auditing specified underSection 143 (10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial 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 financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements.

OPINION

In our opinion and to the best of our information and according to the explanationsgiven to US the aforesaid Ind AS financial 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 including the Ind AS of the state ofaffairs of the Company as at 31st March 2018 and its financial performance includingother comprehensive income its cash flows and the change in equity for the year ended onthat date.

OTHER MATTERS

The comparative financial information of the Company for the year ended 31st March2017 and the transition date opening Balance Sheet as at 1st April 2016 included in theseInd AS financial statements are based on the statutory financial statements prepared inaccordance with the Companies (Accounting Standards) Rules 2006 audited by the previousauditors whose report for the year ended 31st March 2017 and 31st March 2016 dated 30thMay 2017 and 25th May 2016 respectively expressed an unmodified opinion on thosefinancial statements as adjusted for the differences in the accounting principles adoptedby the Company on transition to the Ind AS which have been audited by US. Our opinion onthe Ind AS financial statements and our report on other Legal and Regulatory Requirementsbelow is not modified in respect of these matters.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

I. 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 we give in the Annexure A a statement on the matters specified in paragraphs 3and 4 of the Order to the extent applicable.

II. 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 and the Cash Flow statement andthe statement of Changes in Equity dealt with by this report are in agreement with thebooks of account;

(d) In our opinion the aforesaid Ind AS financial statements comply with theAccounting Standards specified under Section 133 of the Act read with relevant rulesissued thereunder;

(e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 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 refertoourseparate report in ‘Annexure B".

(g) 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 of pending litigations on its financialposition in its financial statements. (Refer Note 32 to the Ind AS financial statements)

II. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

III. There has been no delay in transferring amounts which were required to betransferred to the Investor Education and Protection Fund by the Company.

For s. K. Agrawal & Co.

Chartered Accountants

J KChoudhury

Partner

Membership No.: 009367

Place: Kolkata

Date: 30th May 2018

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

The Annexure referred to in our report to the members of Wires & Fabriks (S.A.)Limited (‘the Company') for the year ended on 31st March 2018. We report that:

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

b) The Company has a regular programme of physical verification of its fixed assets. Inaccordance with this programme certain fixed assets were physically verified by theManagement during the year and according to the information and explanations given to USno material discrepancies were noticed on such verification. In our opinion thisperiodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its assets.

c) According to the information and explanations given to US and the records examinedby US including registered title deeds we report that the title deeds comprising allthe immovable properties of land and buildings are held in the name of the Company as atthe Balance Sheet date.

II. According to the information and explanations given to US the inventories havebeen physically verified during the year by the management. In our opinion the frequencyof verification is reasonable and no material discrepancies were noticed on physicalverification.

III. In our opinion and according to the information and explanation given to US theCompany has not granted any loans secured or unsecured to companies firms or otherparties covered in the register maintained under section 189 of the Companies Act 2013.Accordingly Clauses (iii) (a) and clause (iii) (b) and clause (iii) (c) of paragraph 3 ofthe order is not applicable.

iv. Based on our audit procedure and on the basis of information and explanations givento US by the management we are of opinion that the company has complied with theprovisions of section 185 and 186 of the Companies Act 2013.

V. In our opinion and according to the information and explanation given to US theCompany has not accepted any deposit from the public during the year. Accordingly clause(v) of paragraph 3 of the order is not applicable.

vi. We have broadly reviewed the books of account maintained by the Company pursuant tothe rules prescribed by the Central Government for maintenance of cost records undersection 148 (1) of the Act and are of the opinion that prima facie the prescribedaccounts and records have been made and maintained.

vii. According to the information and explanations given to US in respect of statutoryand other dues:

(a) The Company has been regular in depositing undisputed statutory dues includingProvident Fund Employees state Insurance Income Tax Service Tax Sales Tax Duty ofCustoms Duty of Excise Goods and service tax Cess and other statutory dues with theappropriate authorities during the year. According to the information and explanationsgiven to US no undisputed amounts payable in respect of the aforesaid dues wereoutstanding as at 31st March 2018 for a period of more than six months from the date ofbecoming payable.

(b) According to the information and explanations given to US details of dues of SalesTax which have not been deposited as on 31st March 2018 on account of dispute are givenbelow:

Particulars Financial year to which the matter pertains Forum where matter is pending Amount
Sales Tax 2004-05 West Bengal Commercial Taxes Appellate and Revisional Board 295184
Sales Tax 2011-12 West Bengal Commercial Taxes Appellate and Revisional Board 95896

viii. On the basis of the records examined by US and the information and explanationsgiven to US the company has not defaulted in repayment of dues to Banks and financialinstitution. The Company did not have any outstanding debentures during the year.

ix. The Company did not raise any money by way of initial public officer and furtherpublic offer (including debt instrument) during the year. To the best of our knowledge andbelief and according to the information and explanations given to US term loans availedby the company were applied for the purpose for which the loans were obtained.

X. According to the information and explanations given to US no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during thecourse 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 or provided for managerialremuneration in accordance with requisite approvals mandated by the provisions of Sec 197read with Schedule V to the Companies Act 2013.

xii. To the best of our knowledge and belief and according to the information andexplanations given to US the company is not a Nidhi Company. Accordingly clause (xii) ofparagraph 3 of the Order is 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 sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

xiv. According to the information and explanations given to US and based on ourexamination of the records the Company has not made any preferential allotment or privateplacement of shares or fully or partially convertible debentures during the year.

XV. Based on our audit procedures and on the basis of information and explanationsgiven by the management we are of the opinion that the company has not entered intonon-cash transactions with the directors or persons as per section 192 of the CompaniesAct 2013. Accordingly clause (xv) of paragraph 3 of the Order is not applicable.

xvi. According to the information and explanation given to US the company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.Accordingly clause (xvi) of paragraph 3 of the Order is not applicable.

For s. K. Agrawal & Co.

Chartered Accountants

J KChoudhury

Partner

Membership No.: 009367

Place: Kolkata

Date: 30th May 2018

ANNEXURE "B" TO THE AUDITORS' 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 financial controls over financial reporting of Wires &Fabriks (S.A.) Limited to the extent records available with US in Conjunction with ouraudit of the financial statements of the company as of and for the year ended 31st March2018.

MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS

The Company's management is responsible for establishing and maintaining internalfinancial controls. These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

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 on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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 financial controls over financial 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 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 the Company's internal financial controls systemoverfinancial reporting.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

Acompany's internal financial control overfinancial reporting is a process designed toprovide 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial 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 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 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 31 March 2018 based on theinternal control overfinancial reporting criteria established by the Company.

For s. K. Agrawal &Co.

Chartered Accountants

J KChoudhury

Partner

Membership No.: 009367

Place: Kolkata

Date: 30th May 2018