Home  »  Company  »  Cords Cable Industri  »  Quotes  »  Auditor Report
Enter the first few characters of Company and click 'Go'

Auditor Report of Cords Cable Industries Ltd.

Mar 31, 2015

1. Report on the Financial Statements

We have audited the accompanying financial statements of CORDS CABLE INDUSTRIES LTD. ("the Company"), which comprise the Balance Sheet as at March 31, 2015, and the Statement of Profit & Loss, and the Cash Flow Statement for the year ended, and a summary of significant accounting policies and other explanatory information.

2. Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

3. Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit.

We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company's preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls.

An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Company's Directors, as well as evaluating the overall presentation of the financial statements.

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

4. Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March 2015 and its Statement of Profit & Loss, and its Cash Flows for the year ended on that date.

5. Report on Other legal and Regulatory Requirements

i) As required by the Companies (Auditor's Report) Order, 2015 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 3 and 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 best of our knowledge and belief were necessary for the purpose of our audit;

b) in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

c) the Balance Sheet, the Statement of Profit & Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d) in our opinion, the aforesaid financial statements comply with the Accounting Standards under Section 133 of the Act, read the Rule 7 of the Companies (Accounts) Rule, 2014;

e) on the basis of written representations received from the directors as on March 31, 2015 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2015, from being appointed as a director in terms of Section 164 (2) of the Act.

f) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has pending litigations of Rs. 10.78 crore with revenue authorities, however it would not impact its financial position;

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;

iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company as on 31st March 2015.

Annexure to the Auditors' Report of even date to the members of CORDS CABLE INDUSTRIES LTD., on the financial statements for the year ended March 31, 2015 [Refer to in para 5(i)] our report of even date)

Based on the Audit Procedures performed for the purpose of reporting a true and fair view on the financials statements of the company and taking into the consideration the information and explanation given to us and the books of account and other records examined by us in the normal course of audit, we report that:

i) In respect of fixed assets of the Company and in our opinion:

a) The Company has maintained proper records, showing full particulars, including quantitative details and situation of fixed assets.

b) The Company has a programme of physical verification of its fixed assets. In accordance with this programme, fixed assets were verified during the year and no discrepancies were noticed on such verification. In our opinion, the frequency of physical verification is reasonable having regards to the size of the company and nature of fixed assets.

ii) In respect of inventories of the Company, in our opinion:

a) Inventories have been physically verified by the management during the year and the frequency of verification is reasonable.

b) The procedure for physical verification of inventory followed by management are reasonable and adequate in relation to the size of the company and nature of its business.

c) The Company is maintaining proper records of inventory. No material discrepancies were noticed on physical verification of inventory.

iii) The company has not granted any loan to companies, firms or other parties covered in the register maintained under Section 189 of the Companies Act, 2013, hence sub clause (a) and (b) of clause (iii) of the Order is Not Applicable.

iv) In our opinion, there is an adequate internal control system commensurate with the size of the Company and nature of its business with regard to purchase of inventory, fixed assets and sale of goods & services. We have not observed any continuing failure to correct major weaknesses in the internal control system during the course of the audit.

v) In our opinion, the Company has not accepted any deposits with the directive issued by Reserve Bank of India and the provisions of Sections 73 to 76 or any other provisions of the Companies Act 2013 and the rules framed there under. No order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal.

vi) We are of the opinion that prima facie the cost records and accounts prescribed by Central Government under section 148(1) of the Companies Act, 2013 have been made and maintained. We have not, however, carried out a detailed examination of the records with a view to determining whether they are accurate or complete.

vii) In respect of disputed and undisputed Statutory Dues of the Company and according to information and explanations given to us and on the basis of our examination of the records of the Company.

a. Amounts deducted / accrued in the books of accounts in respect of Provident Fund, Employees' State Insurance, Income tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, cess and any other material Statutory Dues have generally been regularly deposited during the year by the Company with the appropriate authorities, to the extent applicable. According to the information and explanations given to us, no undisputed amounts payable in respect of aforesaid dues were in arrears, as at March 31, 2015 for a period of more than six months from the date they became payable.

b. According to the information and explanations given to us, detail of dues of Service Tax, and Excise duty which have not been deposited on account of a disputes are given below:

Name of Nature of dues Amount Period to the Statute (Rs) which the amount relates

Central Excise Excise Duties 3,59,716/- 2005-06 Act,1944 Penalty 75,000/- Less: Pre-Deposited 1,00,000/-

Central Excise Excise Duties 1,62,054/- 2005-06 Act,1944 Penalty 1,62,054/-

Central Excise Excise Duties 1,76,867/- 2005-06

Act,1944 Penalty 50,000/-

Central Excise Excise Duties 1,61,169/- 2006-07

Act,1944 Penalty 1,61,169/-

Central Excise Excise Duties 31,59,709/- 2006-07 Act, 1944

Central Excise Excise Duties 57,83,018/- 2006-07 Act, 1944

Central Excise Excise Duties 2,60,222/- 2006-07 Act, 1944 Penalty 50,000/-

Central Excise Excise Duties 60,24,771/- 2007-08 Act, 1944

Central Excise Excise Duties 6,12,151/- 2007-08 Act, 1944

Central Excise Excise Duties 22,81,042/- 2007-08 Act, 1944

Central Excise Excise Duties 54,37,100/- 2008-09 Act, 1944

Central Excise Excise Duties 13,09,877/- 2008-09 Act, 1944

Central Excise Excise Duties 1,52,71,114/- 2009-10 Act, 1944

Central Excise Excise Duties 1,53,37,611/- 2009-10 Act, 1944

Central Excise Excise Duties 11,05,939/- 2009-10 Act, 1944 Recovered by 16,16,762/- Central Excise along with interest & penalty

Central Excise Excise Duties 4,06,601/- 2010-11 Act, 1944

Central Excise Excise Duties 1,82,37,626/- 2010-11 Act, 1944

Central Excise Interest on 10,03,041/- 2009-10 Act, 1944 Service Tax Penalty 2,000/- Less Recovered by the 11,60,037/- the central Excise along with interest & penalty

Central Excise Excise Duties 2,76,589/- 2011-12 Act, 1944

Central Excise Excise Duties 2,36,874/- 2008-09 Act, 1944 Penalty 2,36,874/- to Less:- 2011-12 Recovered by 1,20,976/- the Central 1,94,700/- Excise & balance to be recovered along with interest

Central Excise Excise Duties 1,55,68,226/- 2011-12 Act, 1944

Central Excise Service Tax 6,01,175/- 2008-09 Act, 1944 Penalty 2,000/-

Central Excise Service Tax 23,730/- 2013-14 Act, 1944

Central Excise Excise (Penalty) 1,35,45,628/- 2011-2012 Act, 1944 Less: Pre-deposit 10,15,922/- @7.5%

Central Excise Service Tax 27,880/- 2014-15 Act, 1944

Name of the Statute Forum where dispute is pending

Central Excise Act, 1944 Commissioner (Appeals), Central Excise & Custom, Jaipur

Central Excise Act, 1944 CESTAT, New Delhi

Central Excise Act, 1944 Commissioner of Central Excise & Custom, Jaipur

Central Excise Act, 1944 Commissioner (Appeal), Central Excise & Customs, Jaipur

Central Excise Act, 1944 Commissioner (Appeals) Central Excise & Custom, Jaipur

Central Excise Act, 1944 CESTAT, New Delhi

Central Excise Act, 1944 Commissioner (Appeals) Central Excise & Custom, Jaipur

Central Excise Act, 1944 CESTAT, New Delhi

Central Excise Act, 1944 Commissioner Central Excise & Custom, Jaipur

Central Excise Act, 1944 Commissioner (Appeals) Central Excise & Custom, Jaipur

Central Excise Act, 1944 CESTAT, New Delhi

Central Excise Act, 1944 Joint Commissioner, Central Excise, Jaipur

Central Excise Act, 1944 CESTAT, New Delhi

Central Excise Act, 1944 CESTAT, New Delhi

Central Excise Act, 1944 Joint Commissioner Central Excise, Jaipur

Central Excise Act, 1944 CESTAT, New Delhi

Central Excise Act, 1944 Commissioner Central Excise Jaipur-I

Central Excise Act, 1944 CESTAT, New Delhi

Central Excise Act, 1944 Asstt. Commissioner Central Excise, Bhiwadi.

Central Excise Act, 1944 Joint Commissioner Central Excise, Bhiwadi.

Central Excise Act, 1944 Commissioner of Central Excise Jaipur-I

Central Excise Act, 1944 Commissioner (Appeals), Central Excise,Jaipur

Central Excise Act, 1944 Assistant Commissioner, Central Excise, Bhiwadi

Central Excise Act, 1944 CESTAT, New Delhi

Central Excise Act, 1944 Superintendent, Central Excise, Bhiwadi

c. According to the information and explanations given to us, company has no amount which required to be transferred to investor education and protection fund as on 31st March 2015 in accordance with the relevant provisions of the Companies Act 1956 and rules made there under.

viii) The Company does not have accumulated losses at the end of the financial year and it has not incurred cash losses in the current financial year and in the immediately preceding financial year.

ix) Based on our audit procedures and as per the information and explanations given by the management, the company has not defaulted in repayment of dues to financial institutions and banks.

x) In our opinion, the Company has not given any guarantee for loan taken by others from Bank or Financial Institutions in terms of clause (x) of the Order.

xi) In our opinion and to the best of our knowledge and belief proceeds of term loans taken were, prima facie, applied for the purpose it was obtained.

xii) In our opinion and to the best of our knowledge and belief there are no fraud noticed by us on or by the company during the year.

For Sharma Goel & Co. LLP

Chartered accountants

FRN: - 000643N

Sd/-

Amar Mittal

Place : New Delhi Partner

Date : 30.05.2015 M. No. 017755


Mar 31, 2014

We have audited the accompanying financial statements of Cords Cable Industries Limited ("the Company"), which comprise the Balance Sheet as at March 31,2014, and the Statement of Profit and Loss and Cash Flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act") read with commencement notification dated 12th September, 2013 of the Ministry of Corporate Affairs in respect of the Companies Act 2013. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of entity''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2014;

b) in the case of the Statement of Profit and Loss, of the Profit for the year ended on that date; and

c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

Report on Other legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003 ("the Order") issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by section 227(3) of the Act, we report that:

a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b) in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956 read with commencement notification dated 12th September, 2013 of the Ministry of Corporate Affairs in respect of the Companies Act 2013.

e) on the basis of written representations received from the directors as on March 31, 2014, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31,2014, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

Annexure to the Auditors'' Report of even date to the members of Cords Cable Industries Limited, on the financial statements for the year ended March 31,2014 (Refer to in para 5(1) our report of even date)

Based on the Audit Procedures performed for the purpose of reporting a true and fair view on the financials statements of the company and taking into the consideration the information and explanation given to us and the books of account and other records examined by us in the normal course of audit, we report that:

i) In respect of Fixed Assets of the Company and in our opinion:

a) The Company has maintained proper records, showing full particulars, including quantitative details and situation of fixed assets.

b) The Company has a programme of physical verification of its fixed assets by which they are verified annually. In accordance with this programme, fixed assets were verified during the year and no discrepancies were noticed on such verification. In our opinion, the frequency of physical verification is reasonable having regards to the size of the company and nature of fixed assets.

c) The company has not disposed off a substantial part of any fixed assets during the year. Therefore the going concern assumption is not affected.

ii) In respect of Inventories of the Company, in our opinion:

a) Inventories (excluding stocks with third parties) have been physically verified by management during the year and the frequency of verification is reasonable.

b) The procedures for physical verification of inventory followed by management are reasonable and adequate in relation to the size of the company and the nature of its business.

c) The company is maintaining proper records of inventory. No material discrepancies were noticed on physical verification of inventory.

iii) The company has not granted any loan to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Also, the Company has not taken loan from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

iv) In our opinion, there is an adequate internal control system commensurate with the size of the Company and nature of its business with regard to purchase of inventory, fixed assets and sale of goods & services. We have not observed any major weakness in the internal control system during the course of the audit.

v) a) In our opinion, the particulars of all contracts or arrangements that need to be entered into the register maintained under section 301 of the act have been so entered.

b) In respect of transactions made in pursuance of such contracts and arrangements with parties with whom transactions exceeding value of Rupees Five Lakhs have been entered during the financial year are reasonable having regard to prevailing market price at relevant time. For price justification reliance is placed on the information and explanation given by management.

vi) In our opinion, the Company has not accepted any deposits from the public within the meaning of section 58A and section 58AA or any other relevant provisions of the Companies Act 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to the deposits accepted from the public. No order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal.

vii) In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

viii) We are of the opinion that prima facie, the cost records and accounts prescribed by Central Government under section 209(1 )(d) of the Companies Act, 1956 have been made and maintained. We have not, however, carried out a detailed examination of the records with a view to determining whether they are accurate or complete.

ix) In respect of disputed and undisputed Statutory Dues of the Company and according to information and explanations given to us and on the basis of our examination of the records of the Company.

a. Amounts deducted / accrued in the books of accounts in respect of Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty and any other material Statutory Dues have generally been regularly deposited during the year by the Company with the appropriate authorities, to the extent applicable. There were no dues on account of Cess under Section 441A of the Companies Act, 1956 since the aforesaid section has not yet been made effective by the Central Government. According to the information and explanations given to us, no undisputed amounts payable in respect of aforesaid dues were in arrears, as at March 31, 2014 for a period of more than six months from the date they became payable.

b. According to the information and explanations given to us, detail of dues of Sales Tax, Service Tax & Excise duty which have not been deposited on account of a disputes are given below:

Name of the Nature of dues Amount Period to which Statute (Rs) the amount relates

Central Excise Excise Duties Act, 1944

Excise Duties 359716/- 2005-06 Penalty 75000/- Less: Pre-Deposited 100000/-

Excise Duties 330225/- 2004-05 Penalty 330225/- Less: Pre-Deposited 150000/-

Excise Duties 162054/- 2005-06 Penality 162054/-

Excise Duties 176867/- 2005-06 Penalty 50000/-

Excise Duties 161169/- 2006-07 Penalty 161169/-

Excise Duties 3159709/- 2006-07

Excise Duties 5783018/- 2006-07

Excise Duties 260222/- 2006-07 Penalty 50000/-

Excise Duties 746412/- 2004-05 Penalty 746412/- Less: .Pre-Deposited 350000/-

Excise Duties 6024771/- 2007-08

Excise Duties 67441/- 2007-08

Excise Duties 612151/- 2007-08

Excise Duties 2281042/- 2007-08

Excise Duties 5437100/- 2008-09

Excise Duties 1309877/- 2008-09

Excise Duties 15271114/- 2009-10

Excise Duties 15337611/- 2009-10

Excise Duties 1105939/- 2009-10 Recovered by 1616762/- Central Excise along with Int. & penalty

Excise Duties 337944/- 2010-11 Penalty 25000/- Recovered by 362944/- Central Excise along with Int. & penalty

Excise Duties 406601/- 2010-11

Excise Duties 18237626/- 2010-11

Interest on 1003041/- 2009-10 Service Tax Penalty 2000/- Recovered by 1160037/- Central Excise along with Int. & penality

Excise Duties 276589/- 2011-12 Excise Duties 236874/- 2008-09 Penalty 236874/- to 2011-12 Less: 120976/- Recovered by 194700/- Central Excise & balance to be recovered along with Interest

Excise Duties 15568226/- 2011-12

Service Tax 601175/- 2008-09 Penalty 2000/-

Service Tax 23730/- 2013-14

Excise 1588525/- 2013-14

Excise 13545628/- 2011-12 (Penalty)

Name of the Forum where dispute Statute is pending

Central Excise Act, 1944

Commissioner (Appeals),Central Excise & Custom, Jaipur CESTAT, New Delhi CESTAT, New Delhi Commissioner of Central Excise & Custom, Jaipur

Commissioner (Appeals), Central Excise & Custom, Jaipur

Commissioner (Appeals), Central Excise & Custom, Jaipur

CESTAT, New Delhi

Commissioner (Appeals), Central Excise & Custom, Jaipur

CESTAT, New Delhi

CESTAT, New Delhi

CESTAT, New Delhi

Commissioner Central Excise & Custom, Jaipur

Commissioner (Appeals), Central Excise & Custom, Jaipur

CESTAT, New Delhi

Joint Commissioner, Central Excise, jaipur

CESTAT, New Delhi

CESTAT, New Delhi

Joint Commissioner, Central Excise, Jaipur

Asst Commissioner, Central Excise, Bhiwadi Asst Commissioner, Central Excise, Bhiwadi

Commissioner of Central Excise, Jaipur-I

Commissioner of Central Excise, Jaipur-I Asst Commissioner, Central Excise, Bhiwadi

Asst Commissioner, Central Excise, Bhiwadi Commissioner of Central Excise, Jaipur-I

Addl. Commissioner, Central Excise, Jaipur

Assistant. Commissioner, Central Excise, Bhiwadi

Addl. Commissioner Central Excise, Jaipur

Commissioner Central Excise, Jaipur

x) The Company does not have accumulated losses at the end of the financial year and it has not incurred cash losses in the current and immediately preceding financial year.

xi) Based on our audit procedures and as per the information and explanations given by the management, there are no dues to financial institutions or banks or debenture holders.

xii) The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly, the provisions of paragraph 4 clause (xii) of the Order are not applicable.

xiii) The Company is not a Chit Fund or a Nidhi/ Mutual Benefit fund/ Society. Accordingly, the provisions of paragraph 4 clause (xiii) of the Order are not applicable.

xiv) In our opinion the company is not dealing or trading in shares, debentures, securities and other investments. Accordingly, the provisions of paragraph 4 clause (xiv) of the Order are not applicable.

xv) In our opinion, the Company has not given any guarantee in terms of paragraph 4 clause (xv).

xvi) In our opinion and to the best of our knowledge and belief, proceeds of term loans taken were, prima facie, applied for the purpose it was obtained.

xvii) In our opinion and on an overall examination of the Balance Sheet of the Company, funds raised on short- term basis, prima facie, have not been used for long term investment by the company.

xviii) In our opinion, the Company has not made any preferential allotment of shares to parties or companies covered in the register maintained under Section 301 of the Companies Act, 1956.

xix) In our opinion and according to the records examined by us, no debentures were issued during the year.

xx) The Company has not raised any monies by way of public issue during the year. Accordingly, the provisions of paragraph 4 clause (xx) of the Order are not applicable.

xxi) In our opinion, no material fraud on or by the company has been noticed or reported during the period covered in our audit.

For Sharma Goel & Co. LLP Chartered Accountants (FRN: 000643N)

Sd/- Place: New Delhi Amar Mittal Date: 30th May, 2014 Partner M.No.: 017755


Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of Cords Cable Industries Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2013, and the Statement of Profit and Loss and Cash Flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act"). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2013;

b) in the case of the Statement of Profit and Loss, of the Profit for the year ended on that date; and

c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

Report on Other legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003 ("the Order") issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by section 227(3) of the Act, we report that:

a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b) in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956;

e) on the basis of written representations received from the directors as on March 31, 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.



Annexure to the Auditors'' Report of even date to the members of Cords Cable Industries Limited, on the financial statements for the year ended March 31, 2013 (Refer to in our report of even date)

Based on the Audit Procedures performed for the purpose of reporting a true and fair view on the financial statements of the company and taking into the consideration the information and explanation given to us and the books of account and other records examined by us in the normal course of audit, we report that:

i) In respect of Fixed Assets of the Company and in our opinion :

a) The Company has maintained proper records, showing full particulars, including quantitative details and situation of fixed assets.

b) The Company has a programme of physical verification of its fixed assets by which they are verified annually. In accordance with this programme, fixed assets were verified during the year and no discrepancies were noticed on such verification. In our opinion, the frequency of physical verification is reasonable having regards to the size of the company and nature of fixed assets.

c) The company has not disposed off a substantial part of any fixed assets during the year. Therefore the going concern assumption is not affected.

ii) In respect of Inventories of the Company, in our opinion :

a) Inventories (excluding stocks with third parties) have been physically verified by management during the year and the frequency of verification is reasonable.

b) The procedures for physical verification of inventory followed by management are reasonable and adequate in relation to the size of the company and the nature of its business.

c) The company is maintaining proper records of inventory. No material discrepancies were noticed on physical verification of inventory.

iii) The company has not granted any loan to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Also, the Company has not taken loan from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

iv) In our opinion, there is an adequate internal control system commensurate with the size of the Company and nature of its business with regard to purchase of inventory, fixed assets and sale of goods & services. We have not observed any major weakness in the internal control system during the course of the audit.

v) a) In our opinion, the particulars of all contracts or arrangements that need to be entered into the register maintained under section 301 of the act have been so entered.

b) In respect of transactions made in pursuance of such contracts and arrangements with parties with whom transactions exceeding value of Rupees Five Lakhs have been entered during the financial year are reasonable having regard to prevailing market price at relevant time. For price justification reliance is placed on the information and explanation given by management.

vi) In our opinion, the Company has not accepted any deposits from the public within the meaning of section 58A and section 58AA or any other relevant provisions of the Act and the Companies (Acceptance of Deposits) Rules, 1975 with regard to the deposits accepted from the public. No order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal.

vii) In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

viii) We are of the opinion that, prima facie, the cost records and accounts prescribed by Central Government under section 209(1)(d) of the Companies Act, 1956 have been made and maintained. We have not, however, carried out a detailed examination of the records with a view to determining whether they are accurate or complete.

ix) In respect of disputed and undisputed Statutory Dues of the Company and according to information and explanations given to us and on the basis of our examination of the records of the Company.

a. Amounts deducted / accrued in the books of accounts in respect of Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty and any other material Statutory Dues have generally been regularly deposited during the year by the Company with the appropriate authorities, to the extent applicable. There were no dues on account of Cess under Section 441A of the Companies Act, 1956 since the aforesaid section has not yet been made effective by the Central Government. According to the information and explanations given to us, no undisputed amounts payable in respect of aforesaid dues were in arrears, as at March 31, 2013 for a period of more than six months from the date they became payable.

b. According to the information and explanations given to us, detail of dues of Sales Tax, Service Tax & Excise duty which have not been deposited on account of a disputes are given below:

Name of the Nature of dues Amount Period to which Statute (Rs) the amount relates

Central Excise Excise Duties Act, 1944

Excise Duties 359716/- 2005-06 Penalty 75000/- Less : Pre-Deposited 100000/-

Excise Duties 330225/- 2004-05 Less : Pre-Deposited 150000/-

Excise Duties 162054/- 2005-06 Penality 162054/-

Excise Duties 176867/- 2005-06 Penalty 50000/-

Excise Duties 161169/- 2006-07 Penalty 161169/-

Excise Duties 3159709/- 2006-07

Excise Duties 5783018/- 2006-07

Excise Duties 260222/- 2006-07 Penalty 50000/-

Excise Duties 81681/- 2006-07

Excise Duties 746412/- 2004-05 Penalty 746412/- Less : Pre-Deposited 350000/-

Excise Duties 6024771/- 2007-08

Excise Duties 67441/- 2007-08

Excise Duties 612151/- 2007-08

Excise Duties 2281042/- 2007-08

Excise Duties 5437100/- 2008-09

Excise Duties 1309877/- 2008-09

Excise Duties 15271114/- 2009-10

Excise Duties 15337611/- 2009-10

Excise Duties 1105939/- 2009-10

Excise Duties 337944/- 2010-11 Penalty 25000/-

Excise Duties 406601/- 2010-11

Excise Duties 18237626/- 2010-11

Interest on 1003041/- 2009-10 Service Tax Penalty 2000/-

Excise Duties 276589/- 2011-12

Excise Duties 236874/- 2008-09 to 2011-12

Excise Duties 15568226/- 2011-12

Sales Tax Act Service Tax 601175/- 2008-09





Name of the Forum where dispute Statute is pending

Central Excise Act, 1944

Commissioner (Appeals),Central Excise & Custom, Jaipur

CESTAT, New Delhi

CESTAT, New Delhi

Commissioner of Central Excise & Custom, Jaipur

Commissioner (Appeals), Central Excise & Custom, Jaipur

Commissioner (Appeals), Central Excise & Custom, Jaipur

CESTAT, New Delhi

Commissioner (Appeals), Central Excise & Custom, Jaipur

Asst. Commissioner Central Excise, Bhiwadi

CESTAT, New Delhi

CESTAT, New Delhi

CESTAT, New Delhi

Commissioner Central Excise & Custom, Jaipur

Commissioner (Appeals), Central Excise & Custom, Jaipur

CESTAT, New Delhi

Joint Commissioner, Central Excise, jaipur

CESTAT, New Delhi

CESTAT, New Delhi

Joint Commissioner, Central Excise, Jaipur

Asst Commissioner, Central Excise, Bhiwadi

Asst Commissioner, Central Excise, Bhiwadi

Commissioner of Central Excise, Jaipur-I

Commissioner of Central Excise, Jaipur-I

Asst Commissioner, Central Excise, Bhiwadi

Asst Commissioner, Central Excise, Bhiwadi

Commissioner of Central Excise, Jaipur-I

Sales Tax Act Addl. Commissioner, Central & Excise, Jaipur

x) The Company does not have accumulated losses at the end of the financial year and it has not incurred cash losses in the current and immediately preceding financial year.

xi) Based on our audit procedures and as per the information and explanations given by the management, there are no dues to financial institutions or banks or debenture holders.

xii) The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly, the provisions of paragraph 4 clause (xii) of the Order are not applicable.

xiii) The Company is not a Chit Fund or a Nidhi/ Mutual Benefit fund/ Society. Accordingly, the provisions of paragraph 4 clause (xiii) of the Order are not applicable.

xiv) In our opinion the company is not dealing or trading in shares, debentures, securities and other investments. Accordingly, the provisions of paragraph 4 clause (xiv) of the Order are not applicable.

xv) In our opinion, the Company has not given any guarantee in terms of paragraph 4 clause (xv).

xvi) In our opinion and to the best of our knowledge and belief, proceeds of term loans taken were, prima facie, applied for the purpose it was obtained.

xvii) In our opinion and on an overall examination of the Balance Sheet of the Company, funds raised on short-term basis, prima facie, have not been used for long term investment by the company.

xviii) In our opinion, the Company has not made any preferential allotment of shares to parties or companies covered in the register maintained under Section 301 of the Companies Act, 1956.

xix) In our opinion and according to the records examined by us, no debentures were issued during the year.

xx) The Company has not raised any monies by way of public issue during the year. Accordingly, the provisions of paragraph 4 clause (xx) of the Order are not applicable.

xxi) In our opinion, no material fraud on or by the Company has been noticed or reported during the period covered in our audit.

For SHARMA GOEL & CO.

Chartered Accountants

FRN: 000643N

Place : New Delhi Amar Mittal

Date : May 29, 2013 Partner

M.No. : 017755


Mar 31, 2012

We have audited the attached Balance Sheet of Cords Cable Industries Limited, as at 31st March 2012, and also the Profit & Loss Account and Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditor's Report) Order, 2003, as further amended by the Companies (Auditor's Report) (Amendment) Order, 2004 issued by the Central Government of India in terms of Section 227(4A) of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order to the extent applicable to the Company.

Further to our comments in the Annexure referred to above, we report that:

i) We have obtained all information and explanations which to the best of our knowledge and belief were necessary for the purpose of the audit;

ii) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account;

iv) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956, to the extent applicable; and

v) On the basis of written representation received from the Directors of the Company as on 31st March 2012 and taken on record by the Board of Directors, we report that none of the Directors are disqualified from being appointed as Director of the Company under clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

vi) In our opinion, and to the best our information and according to the explanations given to us, the said financial statements give the information required by the Companies Act, 1956, in a manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a. in the case of the Balance sheet, of the state of affairs of the Company as at 31st March 2012;

b. in the case of the Profit and Loss Account, of the profit for the year ended on that date.

c. in the case of the cash flow statement, of the cash flows for the year ended on that date.

Annexure to Auditor's Report.

With reference to the Annexure referred to in the Auditor's report, to the members of the company on the financial statements for the period ended 31st March 2012, we report that:

1. In respect of its fixed assets:

a) The company has maintained proper records of fixed assets showing full particulars, including quantitative details and situation of fixed assets.

b) All the assets have been physically verified by the Management during the year according to a regular program of verification, which in our opinion is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies have been observed on such verification.

c) During the year, the company has not disposed off substantial part of fixed assets.

2. In respect of its inventories:

a) The inventory (excluding stocks with third parties) has been physically verified by the management during the year. In respect of inventory lying with third parties, these have substantially been confirmed by them. In our opinion, the frequency of verification is reasonable.

b) In our opinion, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

c) In our opinion and according to the information and explanations given to us, the Company is maintaining proper records of inventory and no material discrepancies were noticed on verification between the physical stocks and the book records.

3. As informed to us, the Company has neither granted nor taken any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly clause 4(iii) of the Companies (Auditor's Report) order, 2003 as amended by the Companies (Auditor's Report) (Amendment) Order, 2004 is not applicable to the company for the current year.

4. In our opinion, and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business, for the purchase of inventory and fixed assets and for sale of goods and services. During the course of our audit, we have not observed any instance of major weaknesses in internal controls.

5. In respect of the contracts or arrangements referred to in Section 301 of the companies Act, 1956:

a) To the best of our knowledge and belief and according to the information and explanation given to us, we are of the opinion that the particulars of contracts or arrangements, that need to be entered into the register maintained under Section 301 of the Companies Act, 1956 have been so entered.

b) In our opinion and according to the information and explanations given to us, the transaction made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

6. The Company has not accepted any deposits from the public within the meaning of Section 58A and 58AA of the Companies Act, 1956 and the rules framed there under.

7. The Company has an internal audit system, which in our opinion is commensurate with the size and nature of its business.

8. We are of the opinion that prima facie, the cost record and accounts prescribed by the Central Government under Section 209 (I) (d) of the Companies Act, 1956 have been made and maintained. We have not, however, carried out a detailed examination of the records with a view to determining whether they are accurate or complete.

9. In respect of statutory dues:

a) The company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance. According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted / accrued in the books of account in respect of undisputed statutory dues including Income Tax and other material statutory dues have generally been regularly deposited during the year by the company with the appropriate authorities. As explained to us, the Company did not have any dues on account of Provident Fund, Investor Education and Protection Fund, Employee's State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty and Excise Duty. There were no dues on account of Cess under Section 441A of the Companies Act, 1956 since the aforesaid section has not yet been made effective by the Central Government. According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Sales-Tax, Wealth-Tax, Service Tax, Custom Duty, Excise Duty, Cess and any other statutory dues, as at March 31, 2012 for a period of more than six months from the date they became payable.

b) According to information and explanations given to us, details of dues of Excise Duty, Service Tax and Sales Tax which have not been deposited on account of a dispute are given below:

Name of the Nature of dues Amount Period to which Forum where dispute Statute (Rs) the amount relates is pending

Central Excise Excise Duties 359716/- 2005-06 Commissioner (Appeals),Central Act, 1944 Penalty 75000/- Excise & Custom, Jaipur Excise Duties 330225/- 2004-05 CESTAT, New Delhi

Excise Duties 162054/- 2005-06 CESTAT, New Delhi Penalty 162054/-

Excise Duties 176867/- 2005-06 Commissioner of Central Excise

Penalty 50000/- & Custom, Jaipur

Excise Duties 161169/- 2006-07 Commissioner (Appeals), Central

Penalty 161169/- Excise & Custom, Jaipur

Excise Duties 3159709/- 2006-07 Commissioner (Appeals), Central

Excise & Custom, Jaipur

Excise Duties 5783018/- 2006-07 CESTAT, New Delhi

Excise Duties 260222/- 2006-07 Commissioner (Appeals), Central

Penalty 50000/- Excise & Custom, Jaipur

Excise Duties 81681/- 2006-07 Asst. Commissioner Central Excise, Bhiwadi

Excise Duties 746412/- 2004-05 CESTAT, New Delhi

Excise Duties 6024771/- 2007-08 CESTAT, New Delhi

Excise Duties 67441/- 2007-08 CESTAT, New Delhi

Excise Duties 612151/- 2007-08 Commissioner Central Excise & Custom, Jaipur

Excise Duties 2281042/- 2007-08 Commissioner (Appeals), Central Excise & Custom, Jaipur

Excise Duties 5437100/- 2008-09 CESTAT, New Delhi

Excise Duties 1309877/- 2008-09 Joint Commissioner, Central Excise, jaipur

Excise Duties 15271114/- 2009-10 CESTAT, New Delhi

Excise Duties 15337611/- 2009-10 CESTAT, New Delhi

Excise Duties 1105939/- 2009-10 Joint Commissioner, Central Excise, Jaipur

Excise Duties 337944/- 2010-11 Asst Commissioner, Central Excise, Bhiwadi

Excise Duties 406601/- 2010-11 Asst Commissioner, Central Excise, Bhiwadi

Excise Duties 18237626/- 2010-11 Commissioner of Central Excise, Jaipur-I

Interest on 1003041/- 2009-10 Commissioner of Central Excise, Service Tax Jaipur-I

Excise Duties 276589/- 2011-12 Asst Commissioner, Central Excise, Bhiwadi

Excise Duties 236874/- 2008-09 Asst Commissioner, Central to 2011-12 Excise, Bhiwadi

Excise Duties 15568226/- 2011-12 Commissioner of Central Excise, Jaipur-I

Sales Tax Act Sales Tax 7232954/- 2008-09 Addl. Commissioner & Special Penalty 1954386/- 2008-09 Joint Commissioner

Interest 565697/- 2008-09

10. The company does not have accumulated losses at the end of the financial year and it has not incurred cash losses in the current and immediately preceding financial year.

11. In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to bank and financial institution. The company has not borrowed any sums by way of debentures.

12. According to the information and explanations given to us and based on the documents and records produced to us, the company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion, the company is not a chit fund or a nidhi/mutual benefit fund/society.

14. In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly the provisions of paragraph 4(xiv) of the Order are not applicable.

15. The company has not given any guarantee for loans taken by others from bank or financial institutions.

16. In our opinion and according to the information and explanations given to us, the term loans taken by the company were applied for the purpose for which the loans were obtained.

17. According to the information and explanations given to us, and on an overall examination of the balance sheet of the company, we are of opinion that there are no funds raised on short- term basis that have been used for long-term investment.

18. According to information and explanation given to us, the company has made preferential allotment of preference shares to parties covered in the register maintained under section 301 of the Company's Act, 1956 and the price at which such shares have been issued is not prejudicial to the interest of the company.

19. The company has not issued any debentures. Accordingly, paragraph 4(xix) of the Order is not applicable.

20. The company has not raised any money by way of public issue during the year. Accordingly Paragraph 4(xx) of the order is not the applicable.

21. During the course of our examination of the books and records of the Company, and according to the information and explanations given to us by the management, we report that no material fraud on or by the Company has been noticed or reported during the course of our audit.

For SHARMA GOEL & CO.

Chartered Accountants

(Firm's Registration No.000643N)

(CA.Amar Mittal)

Partner

Membership No.: 17755

Place : New Delhi

Dated : May 28, 2012


Mar 31, 2011

We have audited the attached Balance Sheet of CORDS CABLE INDUSTRIES LIMITED, as at March 31, 2011, and also the Profit & Loss Account and Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditor's Report) Order, 2003, as further amended by the Companies (Auditor's Report) (Amendment) Order, 2004 issued by the Central Government of India in terms of Section 227(4A) of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order to the extent applicable to the Company.

Further to our comments in the Annexure referred to above, we report that:

i) We have obtained all information and explanations which to the best of our knowledge and belief were necessary for the purpose of the audit;

ii) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account;

iv) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956, to the extent applicable; and

v) On the basis of written representation received from the Directors of the Company as on March 31, 2011 and taken on record by the Board of Directors, we report that none of the Directors are disqualified from being appointed as Director of the Company under clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

vi) In our opinion, and to the best our information and according to the explanations given to us, the said financial statements give the information required by the Companies Act, 1956, in a manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a. in the case of the Balance sheet, of the state of affairs of the Company as at March 31, 2011;

b. in the case of the Profit and Loss Account, of the profit for the year ended on that date.

c. in the case of the cash flow statement, of the cash flows for the year ended on that date.

Annexure to Auditor's Report.

With reference to the Annexure referred to in the Auditor's report, to the members of the company on the financial statements for the period ended March 31, 2011, we report that:

1. In respect of its fixed assets:

a) The company has maintained proper records of fixed assets showing full particulars, including quantitative details and situation of fixed assets.

b) All the assets have been physically verified by the Management during the year according to a regular program of verification, which in our opinion is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies have been observed on such verification.

c) During the year, the company has not disposed off substantial part of fixed assets.

2. In respect of its inventories:

a) The inventory (excluding stocks with third parties) has been physically verified by the management during the year. In respect of inventory lying with third parties, these have substantially been confirmed by them. In our opinion, the frequency of verification is reasonable.

b) In our opinion, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

c) In our opinion and according to the information and explanations given to us, the Company is maintaining proper records of inventory and no material discrepancies were noticed on verification between the physical stocks and the book records.

3. As informed to us, the Company has neither granted nor taken any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly clause 4(iii) of the Companies (Auditor's Report) order, 2003 as amended by the Companies (Auditor's Report) (Amendment) Order, 2004 is not applicable to the company for the current year.

4. In our opinion, and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business, for the purchase of inventory and fixed assets and for sale of goods and services. During the course of our audit, we have not observed any instance of major weaknesses in internal controls.

5. In respect of the contracts or arrangements referred to in Section 301 of the companies Act, 1956:

a) To the best of our knowledge and belief and according to the information and explanation given to us, we are of the opinion that the particulars of contracts or arrangements, that need to be entered into the register maintained under Section 301 of the Companies Act, 1956 have been so entered.

b) In our opinion and according to the information and explanations given to us, the transaction made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

6. The Company has not accepted any deposits from the public within the meaning of Section 58A and 58AA of the Companies Act, 1956 and the rules framed there under.

7. The Company has an internal audit system, which in our opinion is commensurate with the size and nature of its business.

8. We are of the opinion that prima facie, the cost record and accounts prescribed by the Central Government under Section 209 (I) (d) of the Companies Act, 1956 have been made and maintained. We have not, however, carried out a detailed examination of the records with a view to determining whether they are accurate or complete.

9. In respect of statutory dues:

a) The company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance. According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted / accrued in the books of account in respect of undisputed statutory dues including Income Tax and other material statutory dues have generally been regularly deposited during the year by the company with the appropriate authorities. As explained to us, the Company did not have any dues on account of Provident Fund, Investor Education and Protection Fund, Employee's State Insurance, Sales Tax, Wealth Tax, Service Tax, Custom Duty and Excise Duty. There were no dues on account of Cess under Section 441A of the Companies Act, 1956 since the aforesaid section has not yet been made effective by the Central Government. According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Sales-Tax, Wealth-Tax, Service Tax, Custom Duty, Excise Duty, Cess and any other statutory dues, as at March 31, 2011 for a period of more than six months from the date they became payable.

b) According to information and explanations given to us, details of dues of Excise Duty and Sales Tax which

have not been deposited on account of a dispute are given below:

Name of the Nature of dues Amount Period to which the Statute (Rs) amount relates

Central Excise Excise Duties 359716/- 2005-06 Act,1944 Penalty 75000/-

Excise Duties 330225/- 2004-05

Excise Duties 162054/- 2005-06 Penality 162054/-

Excise Duties 176867/- 2005-06 Penalty 50000/-

Excise Duties 161169/- 2006-07 Penalty 161169/-

Excise Duties 3159709/- 2006-07

Excise Duties 5783018/- 2006-07

Excise Duties 260222/- 2006-07 Penalty 50000/-

Excise Duties 81681/- 2006-07

Excise Duties 746412/- 2004-05

Excise Duties 6024771/- 2007-08

Excise Duties 67441/- 2007-08

Excise Duties 612151/- 2007-08

Excise Duties 2281042/- 2007-08

Excise Duties 5437100/- 2008-09

Excise Duties 1309877/- 2008-09

Excise Duties 15271114/- 2009-10

Excise Duties 15337611/- 2009-10

Excise Duties 1105939/- 2009-10

Excise Duties 337944/- 2010-11

Excise Duties 406601/- 2010-11

Excise Duties 18237626/- 2010-11

Sales Tax Act Sales Tax 7232954/- 2008-09 Penalty 1954386/- 2008-09 Interest 565697/- 2008-09

Name of the Forum where dispute is Statute pending

Central Excise Commissioner (Appeals),Central Act,1944 Excise & Custom, Jaipur CESTAT, New Delhi CESTAT, New Delhi Commissioner of Central Excise & Custom, Jaipur

Commissioner (Appeals),Central Excise & Custom, Jaipur

Commissioner (Appeals),Central Excise & Custom, Jaipur CESTAT, New Delhi

Commissioner (Appeals),Central Excise & Custom, Jaipur

Asst. Commissioner Central Excise, Bhiwadi CESTAT, New Delhi

CESTAT, New Delhi CESTAT, New Delhi

Commissioner of Central Excise & Custom, Jaipur

Commissioner (Appeals),Central Excise & Custom, Jaipur CESTAT, New Delhi

Joint Commissioner, Central Excise, Jaipur

CESTAT, New Delhi

CESTAT, New Delhi

Joint Commissioner, Central Excise, Jaipur

Asst. Commissioner Central Excise, Bhiwadi

Asst. Commissioner Central Excise, Bhiwadi

Commissioner of Central Excise, Jaipur-I Sales Tax Act Addl. Commissioner & Special Joint Commissioner

10. The company does not have accumulated losses at the end of the financial year and it has not incurred cash losses in the current and immediately preceding financial year.

11. In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to bank and financial institution. The company has not borrowed any sums by way of debentures.

12. According to the information and explanations given to us and based on the documents and records produced to us, the company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion, the company is not a chit fund or a nidhi/mutual benefit fund/society.

14. In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly the provisions of paragraph 4(xiv) of the Order are not applicable.

15. The company has not given any guarantee for loans taken by others from bank or financial institutions.

16. In our opinion and according to the information and explanations given to us, the term loans taken by the company were applied for the purpose for which the loans were obtained.

17. According to the information and explanations given to us, and on an overall examination of the balance sheet of the company, we are of opinion that there are no funds raised on short-term basis that have been used for long-term investment.

18. According to information and explanation given to us, the company has not made preferential allotment of shares to parties covered in the register maintained under section 301 of the Companies Act,1956.

19 The company has not issued any debentures. Accordingly, paragraph 4(xix) of the Order is not applicable.

20 The management has disclosed the end use of money raised by public issue in note 16 of Schedule 18(C) and the same has been verified by us.

21. During the course of our examination of the books and records of the Company, and according to the information and explanations given to us by the management, we report that no material fraud on or by the Company has been noticed or reported during the course of our audit.

For SHARMA GOEL & CO. Chartered Accountants (Firm's Registration No.000643N)

(CA.Amar Mittal) Partner Membership No.: 17755

Place : New Delhi Date : May 28, 2011


Mar 31, 2010

We have audited the attached Balance Sheet of M/S. CORDS CABLE INDUSTRIES LTD. as at 31st March 2010, the Profit & Loss Account and Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit

We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditors Report) Order, 2003, as further amended by the Companies (Auditors Report) (Amendment) Order, 2004 issued by the Central Government of India in terms of Section 227(4A) of the Companies Act 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order to the extent applicable to the Company.

Further to our comments in the Annexure referred to above, we report that:

i) We have obtained all information and explanations which to the best of our knowledge and belief were necessary for the purpose of the audit;

ii) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account;

iv) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement comply with the Accounting Standards referred to in sub- section (3C) of Section 211 of the Companies Act, 1956, to the extent applicable; and

v) On the basis of written representation received from the Directors of the Company as on 31st March 2010 and taken on record by the Board of Directors, we report that none of the Directors are disqualified from being appointed as Director of the Company under clause (g) of sub- section (1) of section 274 of the Companies Act, 1956

vi) In our opinion, and to the best our information and according to the explanations given to us, the said financial statements give the information required by the Companies Act 1956, in a manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a. in the case of the Balance sheet, of the state of affairs of the Company as at 31st March 2010;

b. in the case of the Profit and Loss Account, of the profit for the year ended on that date.

c. in the case of the cash flow statement, of the cash flows for the year ended on that date.

Annexure to Auditors Report.

With reference to the Annexure referred to in the Auditors report, to the members of the company on the financial statements for the period ended 31st March 2010, we report that:

1. a) The company has maintained proper records of fixed assets showing full particulars, including quantitative details and situation of fixed assets.

b) All the assets have been physically verified by the Management during the year according to a regular program of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No discrepancies have been observed on such verification.

c) During the year, the company has not disposed off substantial part of fixed assets.

2. a) The inventory (excluding stocks with third parties) has been physically verified by the management during the year. In respect of inventory lying with third parties, these have substantially been confirmed by them. In our opinion, the frequency of verification is reasonable.

b) In our opinion, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

c) In our opinion and according to the information and explanations given to us, the Company is maintaining proper records of inventory and no discrepancies were noticed on verification between the physical stocks and the book records.

3. As informed to us, the Company has neither granted nor taken any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly clause 4(iii) of the Companies (Auditors Report) order, 2003 as amended by the Companies (Auditors Report) (Amendment) Order, 2004 are not applicable to the company for the current year.

4. In our opinion, and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business, for the purchase of inventory and fixed assets and for sale of goods and services. During the course of our audit, we have not observed any instance of major weaknesses in internal controls.

5. a) To the best of our knowledge and belief and according to the information and explanation given to us, we are of the opinion that the particulars of contracts or arrangements, that need to be entered into the register maintained under Section 301 of the Companies Act, 1956 have been so entered.

b) In our opinion and according to the information and explanations given to us, the transaction made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

6. The Company has not accepted any deposits from the public within the meaning of Section 58A and 58AA of the Companies Act, 1956 and the rules framed there under.

7. The Company has an internal audit system, which in our opinion is commensurate with the size and nature of its business.

8. We are of the opinion that prima facie, the cost record and accounts prescribed by the Central Government under Section 209 (I) (d) of the Companies Act, 1956 have been made and maintained. We have not, however, made a detailed examination of the records with a view to determining whether they are accurate or complete.

9. a) The company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance. According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted / accrued in the books of account in respect of undisputed statutory dues including Income Tax and other material statutory dues have generally been regularly deposited during the year by the company with the appropriate authorities. As explained to us, the Company did not have any dues on account of Provident Fund, Investor Education and Protection Fund Employees State Insurance, Sales Tax, Wealth Tax, Service Tax, Custom Duty and Excise Duty. There were no dues on account of Cess under Section 441A of the Companies Act, 1956 since the aforesaid section has not yet been made effective by the Central Government. According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income tax, Sales-Tax, Wealth-Tax, Service Tax, Custom Duty, Excise Duty, Cess and any other statutory dues, as at March 31, 2010 for a period of more than six months from the date they became payable.

b) According to information and explanations given to us, there are no such dues of Income Tax/Sales Tax/ Wealth Tax/Service Tax/ Custom Duty/ Excise Duty/Cess which have not been deposited on account of a dispute except as stated in note 1 of Schedule 18(B).

10. The company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the current and immediately preceding financial year.

11. In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to bank and financial institution. The company has not borrowed any sums by way of debentures.

12. According to the information and explanations given to us and based on the documents and records produced to us, the company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion, the company is not a chit fund or a nidhi/mutual benefit fund/society.

14. In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly the provisions of paragraph 4(xiv) of the Order is not applicable.

15. The company has not given any guarantee for loans taken by others from bank or financial institutions.

16. In our opinion and according to the information and explanations given to us, the term loan taken by the company was applied for the purpose for which the loan was obtained.

17. According to the information and explanations given to us, and on an overall examination of the balance sheet of the company in our opinion, there are no funds raised on short-term basis, which have been used for long-term investment.

18. According to information and explanation given to us, the company has not made preferential allotment of shares to parties covered in the register maintained under section 301 of the Companies Act1956.

19 The company has not issued any debentures. Accordingly, paragraph 4(xix) of the Order is not applicable.

20 The management has disclosed the end use of money raised by public issue in note 15 of Schedule 18(C) and the same has been verified by us.

21 During the course of our examination of the books and records of the Company, and according to the information and explanations given to us by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit.



For SHARMA GOEL&CO. Chartered Accountants

(CA.Amar Mittal)

Place: New Delhi Partner

Date: 29-05-2010 Membership no.17755

Firms Registration No.000643N

 
Subscribe now to get personal finance updates in your inbox!