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Polycab India Ltd.

BSE: 542652 Sector: Engineering
NSE: POLYCAB ISIN Code: INE455K01017
BSE 00:00 | 24 Apr 2020 Polycab India Ltd
NSE 05:30 | 01 Jan 1970 Polycab India Ltd

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OPEN 759.00
PREVIOUS CLOSE 742.80
VOLUME 9133
52-Week high 1180.00
52-Week low 525.05
P/E 15.79
Mkt Cap.(Rs cr) 10,698
Buy Price 715.00
Buy Qty 30.00
Sell Price 718.35
Sell Qty 30.00
OPEN 759.00
CLOSE 742.80
VOLUME 9133
52-Week high 1180.00
52-Week low 525.05
P/E 15.79
Mkt Cap.(Rs cr) 10,698
Buy Price 715.00
Buy Qty 30.00
Sell Price 718.35
Sell Qty 30.00

Polycab India Ltd. (POLYCAB) - Auditors Report


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Company auditors report

To the members of polycab india limited (formerly known as polycab wires limited)

Report on the audit of the standalone ind as financial statements

Opinion

We have audited the accompanying standalone ind as financial statements of polycabindia limited (formerly known as polycab wires limited) ("the company") whichcomprise the balance sheet as at march 312019 the statement of profit and lossincluding the statement of other comprehensive income the cash flow statement and thestatement of changes in equity for the year then ended and notes to the financialstatements including a summary of significant accounting policies and other explanatoryinformation which includes one joint operation.

In our opinion and to the best of our information and according to the explanationsgiven to us and based on the consideration of reports of other auditors on separatefinancial statements and on the other financial information of the joint operations theaforesaid standalone ind as financial statements give the information required by thecompanies act 2013 as amended ("the act") in the manner so required and give atrue and fair view in conformity with the accounting principles generally accepted inindia of the state of affairs of the company as at march 312019 its profit includingother comprehensive income its cash rows and the changes in equity for the year ended onthat date.

Basis for opinion

We conducted our audit of the standalone ind as financial statements in accordance withthe standards on auditing (sas)as 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 ind as financial statements' section ofour report. We are independent of the company in accordance with the ‘code of ethics'issued by the institute of chartered accountants of india together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of 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 ind as financial statements.

Information other than the financial statements and auditor's report thereon

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 our auditor's report thereon.

Our opinion on the standalone ind as financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone ind as financial statementsourresponsibility is to read the other information and in doing so consider whether suchother information is materially inconsistent with the standalone ind as financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated. If based on work we have performed we conclude that there is materialmisstatement of this other information we are required to report the fact. We havenothing to report in this regard.

Responsibilities of management for the standalone ind as 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 standalone ind as financialstatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income cash rows and changes in equity of the company inaccordance with the accounting principles generally accepted in india including theindian accounting standards (ind as) specified under section 133 of the act read with thecompanies (indian accounting standards) rules 2015 as amended. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe act for safeguarding of 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; and the designimplementation and maintenance of adequate internal financial controlsthat were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the standalone ind as financial statements thatgive a true andfair view and are free from material misstatement whether due to fraud orerror. In preparing the standalone ind as financial statements management is responsiblefor assessing the company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the company or to ceaseoperations or has no realistic alternative but to do so.

Those board of directors are also responsible for overseeing the company's financialreporting process.

Auditor's responsibilities for the audit of the standalone ind as financial statements

Our objectives are 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 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 theaggregatethey could reasonably be expected to influence the economic decisions of userstaken onthe basis ofthese standalone ind asfinancialstatements.

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 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 our opinion.the risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecoflusion 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 we are also responsible for expressing our 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 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 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.

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 themafl relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

Other matters

The financial statements and financial information include the company's share of totalassets of ' 782.78 miflion as at march 31 2019 and revenues of ' 67.22 million and netcash inflows ofRs. 376.12 miflion. In respect of a joint operation for the year endedmarch 312019. The ind as financial statements and other financial information of the saidjoint operation have been audited by other auditors whose financial statements otherfinancial information and auditor's reports have been furnished to us by the management.Our report on the standalone ind as financial statements of the company in so far as itrelates to the amounts and disclosures included in respect of the said joint operation isbased solely on the reports of the such other auditor. Our opinion is not modified inrespect of this matter.

Report on other legal and regulatory requirements

1 as required by the companies (auditor's report) order 2016 ("theorder") issued by the central government of india in terms of sub-section (11) ofsection 143 of the act based on our audit we give in the "annexure l"astatement on the matters specified in paragraphs 3 and 4 of the order.

2 as required by section 143(3) of the act we report that:

(a) we have sought and obtained afl 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 the statement ofother comprehensive income the cash flow statement and statement of changes in equitydealt with by this report are in agreement with the books of account;

(d) in our opinionthe aforesaid standalone ind as financial statements comply withthe accounting standards specified under section 133 of the act read with companies(indian accounting standards) rules 2015as amended;

(e) on the basis of the written representations received from the directors as on march31 2019 taken on record by the board of directors none of the directors is disqualifiedas on march 312019 from being appointed as a director in terms of section 164 (2) of theact;

(f) with respect to the adequacy of the internal financial controls over financialreporting of the company with reference to these standalone ind as financial statementsand the operating effectiveness of such controls refer to our separate report in"annexure 2" to this report;

(g) in our opinion the managerial remuneration for the year ended march 31 2019 hasbeen paid / provided by the company to its directors in accordance with the provisions ofsection 197 read with schedule v to 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

I the company has disclosed the impact of pending litigations on its financial positionin its standalone ind as financial statements - refer note 33 (c) to the standalone ind asfinancial 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 were no amounts which were required to be transferred to the investoreducation and protection fund by the company.

For s r b c & co. Llp

Chartered accountants

Icai firm registration number: 324982e/e300003

Per sudhir soni

Partner

Membership number:41870

Place: mumbai

Date: 14 may 2019

Annexure 1 referred to in paragraph 1 under the section ‘report on other legaland regulatory requirements' of our report of even date

(i) (a) the company has maintained proper records showing full particularsincluding quantitative details and situation

Of fixed assets.

(b) all fixed assets have not been physically verified by the management during theyear but there is a regular programme of verification which in our opinion is reasonablehaving regard to the size of the company and the nature of its assets. No materialdiscrepancies were noticed on such verification.

(c) according to the information and explanations given by the management the titledeeds of immovable properties included in property plant and equipment are held in the-name of the company except the following: -

I) title deeds of freehold land amounting to ' 33.05 million are not in the name of thecompany. The company has initiated the process of transferring these properties in itsname;

Ii) title deeds of freehold land amounting to ' 36.45 million are not available;

Iii) title deeds of freehold land amounting to ' 10.48 million is in dispute and ispending resolution with the government authority in gujarat

(ii) the management has conducted physical verification of inventory except forinventory lying with third parties aggregating to ' 1787.77 million as at year end whichhave not been verified during or at the end of the year. In our opinion the frequency ofverification is reasonable. Inventories lying with third parties have been confirmed bythem as at year end. No material discrepancies were noticed on such physical verification.

(iii) (a) the company has granted loans to three companies covered in the registermaintained under section 189 of the

Companies act 2013. In our opinion and according to the information and explanationsgiven to us the terms and conditions of the grant ofsuch loans are not prejudicial to thecompany's interest.

(b) the schedule of repayment of principal and payment of interest has been stipulatedfor the loans granted and the repayment/receipts are regular.

(c) there are no amounts of loans granted to companies listed in the registermaintained under section 189 of the companies act 2013 which are overdue for more thanninety days.

(iv) in our opinion and according to the information and explanations given to usprovisions of section 185 and 186 of the companies act 2013 in respect of loans todirectors including entities in which they are interested and in respect of loans andadvances given investments made and guarantees and securities given have been compliedwith by the company.

(v) the company has not accepted any deposits within the meaning of sections 73 to76 of the act and the companies (acceptance of deposits) rules 2014 (as amended).Accordingly the provisions of clause 3(v) of the order are not applicable.

(vi) we have broadly reviewed the books of account maintained by the companypursuant to the rules made by the central government for the maintenance of cost recordsunder section 148(1) of the companies act 2013 related to the manufacture of electricwires and cables electric appliances and are of the opinion that prima faciethespecifiedaccountsand records have been madeand maintained. We have not however madeadetailed examination of the same.

(vii) undisputed statutory dues including provident fund employees' stateinsurance income-tax customs duty goods and service tax cess and other statutory dueshave been regularly deposited with the appropriate authorities though there has been aslight delay in a few cases of professional tax.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees'state insurance income-tax service taxsales-tax duty of custom duty of excise value added tax goods and service tax cessand other statutory dues were outstanding at the year end for a period of more than sixmonths from the date they became payable.

According to the information and explanation given to us dues outstanding of incometax sales tax service tax duty of excise customs duty and value added tax which havenot been deposited on account of any dispute are as follows:

Name of the statute Nature of the dues Amount (Rs. In millions) Period to which the amount relates Forum where dispute is pending
Central excise act 1944 and service tax Duty 99.00 2006-07 2010-2011 2012-2016 2017-18 Asst. Comm / comm / comm (appeals)/ gst division
17.00 2007-11 Tribunal
State & central sales tax 1956 Tax interest & penalty 435.70 2000-01 2007-08 2008-09 2009-102013-142014-15 2015-162016-17 Asst. Comm/comm /dy. Comm appeal / jt comm (appeal) / comm tax officer /comm tax inspector/ asst. Officer
3.90 2014-15 West bengal appellant and revision board
140.10 2010-11 Tribunal
Customs act 1962 Duty 6.20 2010-11 Comm of customs
Tax & 125.45 2016-17 Cit (appeals)
Income tax act 1961 Interest 90.85* 2017-18 Deputy commissioner of income tax

* rectification application filed on 9th april 2019 by the management on the groundsthat the demand is erroneous.

(viii) in our opinion and according to the information and explanations given bythe management the company has not defaulted in repayment of loans or borrowing to afinancial institution or bank. There are no borrowings from government or dues todebenture holders.

(ix) according to the information and explanations given by the management thecompany has not raised any money by way of initial public offer during the year endedmarch 31 2019. Accordingly we have not commented on the utilisation of the same. Thecompany has not raised any money through debt instruments and term loans hence reportingunder clause (ix) is not applicable to the company and hence not commented upon.

(x) based upon the audit procedures performed for the purpose of reporting the trueand fair view of the financial statements and according to the information andexplanations given by the management we report that no fraud by the company or no fraudon the company by the officers and employees of the company has been noticed or reportedduring the year.

(xi) according to the information and explanations given by the management themanagerial remuneration has been paid / provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with schedule v to the companiesact 2013.

(xii) in our opinion the company is not a nidhi company. Therefore the provisionsof clause 3(xii) of the order are not applicable to the company and hence not commentedupon.

(xiii) according to the information and explanations given by the managementtransactions with the related parties are in compliance with section 177 and 188 ofcompanies act 2013 where applicable and the details have been disclosed in the notes tothe financial statements as required by the applicable accounting standards.

(xiv) according to the information and explanations given to us and on an overauexamination of the balance sheet the company has not made any preferential auotment orprivate placement of shares or fuuy or partly convertible debentures during the year underreview and hence reporting requirements under clause 3(xiv) are not applicable to thecompany and not commented upon.

(xv) according to the information and explanations given by the management thecompany has not entered into any non-cash transactions with directors or persons connectedwith him as referred to in section 192 of companies act 2013.

(xxvi) according to the information and explanations given to us the provisions ofsection 45-ia of the reserve bank of india act 1934 are not applicable to the company.

For s r b c & co. Llp

Chartered accountants

Icai firm registration number: 324982e/e300003

Per sudhir soni

Partner

Membership number:41870

Place: mumbai

Date: 14 may 2019

Annexure 2 to the independent auditor's report of even date on the standalone financialstatements of polycab india limited (formerly known as polycab wires limited)

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 polycabindia limited (formerly known as polycab wires limited) ("the company") as ofmarch 312019 in conjunction with our audit of the standalone financial statements of thecompany 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 reportingissued by the institute of chartered accountants of india. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the 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.

Auditor's responsibility

Our responsibility is to express an opinion on the company's internal financialcontrols over financial reporting with reference to these standalone financial statementsbased on our audit. We conducted our audit in accordance with the guidance note on auditof internal financial controls over financial reporting (the "guidance note")and the standards on auditing as specified under section 143(10) of the companies act2013 to the extent applicable to an audit of internal financial controls and both issuedby the institute of chartered accountants of india. 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 with reference to these standalone financial statements 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 over financial reporting with reference to thesestandalone financial statements and their operating effectiveness. Our audit of internalfinancial controls over financial reporting included obtaining an understanding ofinternal financial controls over financial reporting with reference to these standalonefinancial statements assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement including theassessment of the risks of material misstatement of the financial statements whether dueto 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 internal financial controls over financialreporting with reference to these standalone financial statements.

Meaning of internal financial controls over financial reporting with reference to thesefinancial statements

A company's internal financial control over financial reporting with reference to thesestandalone financial statements is a process designed to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of financialstatements for external purposes in accordance with generally accepted accountingprinciples. A company's internal financial control over financial reporting with referenceto these standalone financial statements includes those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial 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 financialstatements.

Inherent limitations of internal financial controls over financial reporting withreference to these standalone financial statements

Because of the inherent limitations of internal financial controls over financialreporting with reference to these standalone financial statements including thepossibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls over financial reporting with referenceto these standalone financial statements to future periods are subject to the risk thatthe internal financial control over financial reporting with reference to these standalonefinancial statements may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the company has in all material respects adequate internal financialcontrols over financial reporting with reference to these standalone financial statementsand such internal financial controls over financial reporting with reference to thesestandalone financial statements were operating effectively as at march 312019 based onthe 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.

For s r b c & co. Llp

Chartered accountants

Icai firm registration number: 324982e/e300003

Per sudhir soni

Partner

Membership number:41870

Place: mumbai

Date: 14 may 2019


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