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Notes to Accounts of Cords Cable Industries Ltd.

Mar 31, 2015

1. Company Overview

Cords Cable Industries Limited ("the Company") was incorporated on October 21, 1991 as "Private Limited" and it was later converted into "Public Limited" on May 10, 2006. The Company manufactured or developed a wide range of specialized cables to address the specific requirements of industries involving modern process technologies, instrumentation & communication demanding the highest standards of precisions and reliability with assured quality and safety standards.

2. SEGMENT REPORTING:

As the Company's business activities fall within a single primary business segment, viz., "'Electric Wire & Cable", the disclosure requirement of Accounting Standard (AS) - 17 "Segment Reporting" are not applicable.

3. BASIC AND DILUTED EARNINGS PER SHARE :

The basic earnings per equity share is computed by dividing the net profit attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year. Diluted earnings per share are computed using the weighted average number of equity shares and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable, had the shares been actually issued at fair value.

Dilutive potential equity shares are deemed converted as of the beginning of the year, unless they have been issued at a later date. The number of equity shares and potential diluted equity shares are adjusted for stock split, bonus shares, Convertible Preference Shares, Share Warrants and the potential dilutive effect of Employee Stock Option Plan as appropriate.

4. In respect of amounts as mentioned under 205C of the Companies Act, 1956 there were no dues required to be credited to the Investor Education and Protection Fund as at March 31, 2015.

5. In the opinion of the Board of Directors, all currents assets, loans and advances appearing in the balance sheet as at 31st March, 2015 have a value on realization in the ordinary course of the Company's business at least equal to the amount at which they are stated in the balance sheet. In the opinion of the Board of Directors, no provision is required to be made against the recoverability of these balances.

6. Previous year figures have been regrouped and/or reclassified wherever necessary to conform to those of the Current year grouping and/or classification.


Mar 31, 2014

1. Company Overview

Cords Cable Industries Limited ("the Company") was incorporated on October 21, 1991 as "Private Limited" and it was later converted into "Public Limited" on May 10,2006. The Company manufactured or developed a wide range of specialized cables to address the specific requirements of industries involving modern process technologies, instrumentation & communication demanding the highest standards of precisions and reliability with assured quality and safety standards.

2. Basis of Financial Statements

i) Statement of Compliance

The financial Statements are prepared under the historical cost convention on an accrual basis, in accordance with the generally accepted accounting principals in India and compliance with the applicable accounting standards as notified under the Companies (Accounting Standard) Rules, 2006 as amended and as per Revised Schedule VI to the Companies Act, 1956. All assets and liabilities have been classified as current or non- current as per Company''s normal operating cycle and other criteria set out in Revised Schedule VI to Companies Act, 1956.

ii) Use of Estimates

The presentation of financial statements conformity with the generally accepted accounting principals requires estimates and assumptions to be made that affect the reported amount of assets and liabilities and disclosure of contingent liabilities as on date of the financial statements and the reported amount of revenue and expenses during the reporting year. Differences between the actual results and estimates are recognized in the year in which the results are known or materialized.

3. Terms/rights attached to Equity Shares

The company has only one class of equity shares having a face value of Rs. 10 (Rupees Ten) per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to received remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. In the event of distributing dividends by the company and winding up, the preference shareholders will be preferred over the equity shareholders. They do not have any voting rights except for in the conditions mentioned in the Companies Act, 1956.

4. Terms/rights attached to Preference Shares

During the year March, 2012, the Company has issued and alloted 1,60,000 Non Convertible, Cumulative, Redeemable Preference Shares of Rs.100/- each fully paid to Promoters. These Shares carry Dividend rate @ 10% (Ten Percent) per annum and voting rights of these shares are limited to matters which directly affect the rights of Preference Shareholders. The said Preference Shares shall have tenure of 5 (Five) years, however the company, reserve the right to recall the shares after a period of 2 (Two) years or at any suitable tenure giving not less than 6 (Six) months previous notice in writting to sharehlders to redeem these shares. These shares are not listed on any stock exchange.

5. Authorised Share Capital

During the year March 31,2012, the authorised share capital has been increased from Rs. 12,00,00,000 (Rupees Twelve Crores) divided into 1,20,00,000 (One Crore Twenty Lacs) Equity Shares of Rs.10 (Rupee Ten) each to Rs. 14,00,00,000 (Rupees Fourteen Crores) divided into 1,20,00,000 (One Crore Twenty Lacs) Equity Shares of Rs.10 (Rupees Ten) each and 2,00,000 (Two Lakh) Non Covertible, Cumulative, Redeemable Preference Shares of Rs. 100 (Rupees Hundred) each at the Annual General Meeting of the Company held on September 26, 2011. During the year March 31,2013 the authorised share capital has been increased from Rs.14,00,00,000 (Rupees Fourteen Crores) divided into 1,20,00,000 (One Crore Twenty Lacs) Equity Shares of Rs.10 (Rupee Ten) each and 2,00,000 (Two Lakh) Non Covertible, Cumulative, Redeemable Preference Shares of Rs. 100 (Rupees Hundred) each to Rs.15,60,00,000 (Rupees Fifteen Crores Sixty Lakhs) divided into 1,20,00,000 (One Crore Twenty Lacs) Equity Shares of Rs.10 (Rupees Ten) each and 3,60,000 (Three Lakh Sixty Thousand) Non Covertible, Cumulative, Redeemable Preference Shares of Rs. 100 (Rupees Hundred) each in the Annual General Meeting of the Company held on September 26,2012.

6. Term Loans from Banks and others referred above are secured by way of first charge on entire movable fixed assets and equitable mortgage Factory Land and Building and Plant & Machinery and other fixed assets.

7. Vehicle loans are secured by way of hypothecation of vehicles.

10.1. Working Capital loans along with non-fund based facilities from banks are secured by way of hypothecation of present and future stock of raw materials, work-in-process, finished goods, book debts as first charge which ranks Pari-passu amongst Bankers and by way of First and Second charge on the immovable and movable assets of the company by respective banks and pledge of FDR Rs.3,28,00,000)

8. Amount due to Micro, Small and Medium Enterprise:

In absence of any information submitted by vendors with regards to their registration (filing of Memorandum) under the "The Micro, Small and Medium Enterprises Development Act, 2006" Liabililty cannot be ascertained at the close of the year and hence no disclosure is made in this regard.

9. CONTINGENT LIABILITIES

a) CLAIMS AGAINST COMPANY NOT ACKNOWLEDGED AS DEBTS:

Details of various show cause notices & cases against which the Company / Department is in appeal and against which no demand is deposited 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

b) Other Contingent Liabilities Amount (Rs. in Lacs)

Particulars 2013-14 2012-13

Guarantees issued by Bankers* 9083.39 9107.92

L/C''s negotiated by bank 1325.51 436.28

In respect of Bill factored from banks/Factoring agency 1219.88 1478.99

c) Capital & Other Commitments

Estimated amounts of contracts remaining to be executed on capital account and not provided for (Net of Advances) Nil (P.Y. Rs. Nil).

10. SEGMENT REPORTING:

As the Company''s business activities fall within a single primary business segment, viz., "Electric Wire & Cable", the disclosure requirement of Accounting Standard (AS) - 17 "Segment Reporting" are not applicable.

11. Disclosure in respect of Related Parties as per Accounting Standard, AS-18 ''Related Parties Disclosures'' as notified by companies (Accounting Standards) Rules, 2006, as amended:

a) Name and Nature with related parties :

i) Key Management Personnel Nature of Relationship

Naveen Sawhney Managing Director

Devender Kumar Prashar Joint Managing Director

ii) RELATIVES of Key Nature of Relationship Management Personnel

Varun Sawhney Son of Mr. Naveen Sawhney

Rahul Prashar Son of Mr. D.K. Prashar

Gaurav Sawhney Son of Mr. Naveen Sawhney

Adarsh Sawhney Wife of Mr. Naveen Sawhney

Adesh Prashar Wife of Mr. D.K. Prashar

Amit Prashar Son of Mr. D.K. Prashar

12. BASIC AND DILUTED EARNINGS PER SHARE :

The basic earnings per equity share is computed by dividing the net profit attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year. Diluted earnings per share are computed using the weighted average number of equity shares and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable, had the shares been actually issued at fair value.

Dilutive potential equity shares are deemed converted as of the beginning of the year, unless they have been issued at a later date. The number of equity shares and potential diluted equity shares are adjusted for stock split, bonus shares, Convertible Preference Shares, Share Warrants and the potential dilutive effect of Employee Stock Option Plan as appropriate.

13. As at March 31,2014, the company had Rs. 58,725/- as outstanding in the refund account with ICICI bank towards unpaid application money received by the company for allotment of shares and is due for refund. This amount is not available for use by the company and will be credited to Investor Education & Protection Fund as and when due unless claimed by share holders earlier to the specified date.

14. In respect of amounts as mentioned under 205C of the Companies Act, 1956 there were no dues required to be credited to the Investor Education and Protection Fund as at March 31, 2014.

15. In the opinion of the Board of Directors, all currents assets, loans and advances appearing in the balance sheet as at 31 st March, 2014 have a value on realization in the ordinary course of the Company''s business at least equal to the amount at which they are stated in the balance sheet. In the opinion of the Board of Directors, no provision is required to be made against the recoverability of these balances.

16. Due to shortage and interrupted supply of raw material company was not able to produce desirable quantity hence, company was operating single shift and depreciation was charged accordingly.

17. Previous year figures have been regrouped and/or reclassified wherever necessary to conform to those of the Current year grouping and/or classification.


Mar 31, 2013

1. Company Overview

Cords Cable Industries Limited ("the Company") was incorporated on October 21, 1991 as "Private Limited" and it was later converted into "Public Limited" on May 10, 2006. The Company manufactures and develops a wide range of specialized cables to address the specific requirements of industries involving modern process technologies, instrumentation & communication demanding the highest standards of precisions and reliability with assured quality and safety standards.

2. Basis of Financial Statements

I) Statement of Compliance

The financial Statements are prepared under the historical cost convention on an accrual basis, in accordance with the generally accepted accounting principals in India and compliance with the applicable accounting standards as notified under the Companies (Accounting Standard) Rules, 2006 as amended and as per Revised Schedule VI to the Companies Act, 1956. All assets and liabilities have been classified as current or non-current as per Company''s normal operating cycle and other criteria set out in Revised Schedule VI to Companies Act, 1956.

II) Use of Estimates

The presentation of financial statements conformity with the generally accepted accounting principals requires estimates and assumptions to be made that affect the reported amount of assets and liabilities and disclosure of contingent liabilities as on date of the financial statements and the reported amount of revenue and expenses during the reporting year. Differences between the actual results and estimates are recognized in the year in which the results are known or materialized.

3. CONTINGENT LIABILITIES

a) CLAIMS AGAINST COMPANY NOT ACKNOWLEDGED AS DEBTS:

Details of various show cause notices & cases against which the Company / Department is in appeal and against which no demand is deposited are given below:

b) Other Contingent Liabilities Amount (Rs. in Lacs)

Particulars (2012-13) (2011-12)

Guarantees issued by Bankers* 9107.92 8687.17

L/C''s negotiated by bank 436.28 1023.15

In respect of Bill factored from banks/Factoring agency 1478.99 2509.46

*Bank Guaranties includes BG''s amounting to Rs 3275.60 Lacs (PY 3375.60 Lacs) extended to Raw Materials suppliers for credit period extended to company and the same is accounted for in sundry creditors.

c) Capital & Other Commitments

Estimated amounts of contracts remaining to be executed on capital account and not provided for (Net of Advances) Nil (P.Y. Rs. Nil).

4. SEGMENT REPORTING:

As the Company''s business activities fall within a single primary business segment, viz., "''Electric Wire & Cable", the disclosure requirement of Accounting Standard (AS) – 17 "Segment Reporting" are not applicable.

5. BASIC AND DILUTED EARNINGS PER SHARE :

The basic earnings per equity share is computed by dividing the net profit attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year. Diluted earnings per share are computed using the weighted average number of equity shares and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable, had the shares been actually issued at fair value.

Dilutive potential equity shares are deemed converted as of the beginning of the year, unless they have been issued at a later date. The number of equity shares and potential diluted equity shares are adjusted for stock split, bonus shares, Convertible Preference Shares, Share Warrants and the potential dilutive effect of Employee Stock Option Plan as appropriate.

6. As at March 31, 2013, the company had Rs. 58,725/- as outstanding in the refund account with ICICI bank towards unpaid application money received by the company for allotment of shares and is due for refund. This amount is not available for use by the company and will be credited to Investor Education & Protection Fund as and when due unless claimed by share holders earlier to the specified date.

7. In respect of amounts as mentioned under 205C of the Companies Act, 1956 there were no dues required to be credited to the Investor Education and Protection Fund as at March 31, 2013.

8. In the opinion of the Board of Directors, all currents assets, loans and advances appearing in the balance sheet as at 31st March, 2013 have a value on realization in the ordinary course of the Company''s business at least equal to the amount at which they are stated in the balance sheet. In the opinion of the Board of Directors, no provision is required to be made against the recoverability of these balances.

9. Previous year figures have been regrouped and/or reclassified wherever necessary to conform to those of the Current year grouping and/or classification.


Mar 31, 2012

1.1 The company has only one class of Equity shares having a par value of Rs.10/- per share. The holders of equity shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share. In the event of liquidation, Equity shareholders will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts in proportion to the number of shares held to the total equity shares outstanding as on that date.

1.2 During the year, the Company has issued and allotted 1,60,000 Non-Convertible, Cumulative, redeemable Preference Shares of Rs.100/- each fully paid to its Promoters. These shares carry Dividend rate of 10% (Ten Percent) Per Annum and votings rights of these shares are limited to matters which directly affect the rights of Preference Shareholders. The said Preference shares shall have tenure of 5 (five) years, however the company, reserves the right to recall the shares after a period of 2 (two) years or at any suitable tenure giving not less than 6 (six) months previous notice in writing to shareholders to redeem these shares. These shares are not listed on any stock exchange.

1.3 The Details of shareholders holding more than 5% shares :

2.1 External Commercial Borrowing referred above are secured by way of first charge on the entire Movable fixed assets and equitable mortgage on Factory land and Building and Plant and Machinery situated at Kaharani.

2.2 Term Loans from Banks and others referred above are secured by way of equitable mortgage of Chopanki and Kaharani land and building and hypothecation of Plant & Machinery and other fixed assets.

2.3 Vehicle loans are secured by way of hypothecations of vehicles.

3.1 Provision for Employees Benefits Include Provision for Gratuity & Provision for Leave Encashment.

4.1 Working Capital loans along with non-fund based facilities from banks are secured by way of hypothecation of present and future stock of raw materials, work-in-process, finished goods, book debts as first charge which ranks Pari-passu amongst Bankers and by way of Second charge on the immovable and movable assets of the company by respective banks and pledge of FDR for Rs. 28,00,000/- )

5.1 Amount due to Micro, Small and Medium Enterprise:

In absence of any information submitted by vendors with regards to their registration (filing of Memorandum) under the "The Micro, Small and Medium Enterprises Development Act,2006" Liability cannot be ascertained at the close of the year and hence no disclosure is made in this regard.

6.1 In accordance with Accounting Standard 15 "Employees Benefits", the Company has classified various Benefits provided to employees as under:

I. Defined Contribution Plans

a. Provident Fund

b. Employers' contribution to Employees' State Insurance

7. CONTINGENT LIABILITIES

a) CLAIMS AGAINST COMPANY NOT ACKNOWLEDGED AS DEBTS:

Details of various show cause notices & cases against which the Company / Department is in appeal and against which no demand is deposited are given below :

c) Capital & Other Commitments

Estimated amounts of contracts remaining to be executed on capital account and not provided for (Net of Advances) Nil (P.Y. Rs.243.28 Lacs).

8. SEGMENT REPORTING:

As the Company's business activities fall within a single primary business segment, viz., "'Electric Wire & Cable", the disclosure requirement of Accounting Standard (AS) - 17 "Segment Reporting" are not applicable.

9. RELATED PARTY DISCLOSURE:

As per Accounting Standard 18, "Related Party Disclosure" issued by The Institute of Chartered Accountants on India, the disclosures of transactions with the Related Parties as defined in the Accounting Standard are given below-

10. During the year, Company has made provision for Minimum Alternate Tax (MAT) of Rs.1,48,74,246/- Considering the future expected benefits, the company has recognize Rs. 10,71,410/- as MAT entitlement credit representing excess of MAT provision over current tax.

11. As at March 31, 2012, the company had Rs. 58,725/- as outstanding in the refund account with ICICI bank towards unpaid application money received by the company for allotment of shares and is due for refund. This amount is not available for use by the company and will be credited to Investor Education & Protection Fund as and when due unless claimed by share holders earlier to the specified date.

12. In respect of amounts as mentioned under 205C of the Companies Act, 1956 there were no dues required to be credited to the Investor Education and Protection Fund as at March 31, 2012.

13. In the opinion of the Board of Directors, all currents assets, loans and advances appearing in the balance sheet as at 31st March, 2012 have a value on realization in the ordinary course of the Company's business at least equal to the amount at which they are stated in the balance sheet. In the opinion of the Board of Directors, no provision is required to be made against the recoverability of these balances.

14. Previous year figures have been regrouped and/or reclassified wherever necessary to conform to those of the Current year grouping and/or classification.


Mar 31, 2011

A. CONTINGENT LIABILITIES

1) Other Contingent Liabilities Amount (Rs in Lacs)

Particulars (2010-11) (2009-10)

Guarantees issued by Bankers* 7524.95 6592.13 Estimated amounts of contracts remaining to be executed on capital account and not provided for (Net of Advances) 243.28 1935.21

L/C's negotiated by bank 46.68 0.00

In respect of Bill factored from banks/Factoring agency 2496.09 2117.00

*Bank Guaranties includes BG's amounting to Rs 3240.60 Lacs (PY 3360.60 Lacs) extended to Raw Materials suppliers for credit period extended to company and the same is accounted for in sundry creditors.

2) Previous year figures have been regrouped/ rearranged wherever necessary.

3) The company was allotted industrial land bearing industrial plot No. E-520, Industrial Area, Chopanki, Bhiwadi, Rajasthan measuring 5400 sq. mt. @ Rs. 600/- per sq. mt. by RIICO Ltd. vide allotment letter No. 7912 dated 26.02.2005 which was capitalized under Fixed Assets (Land). However, the Lease Deed was executed by RIICO for area measuring 3952 sq. mt. on 09.03.2007. The company has taken up the matter with RIICO Ltd., the final outcome of which is awaited. Pending finalization of the matter, no accounting adjustment has been done in value of land.

4) NEW PROJECT STATUS:

The Company has started initial commercial production from January 03, 2011 at its new cable expansion manufacturing facility at Kahrani, Bhiwadi, Distt-Alwar, Rajasthan. This new state of art facility has a potential to double-fold enhance Company's production capacity and thereby its turnover.

5) EMPLOYEE BENEFITS:

In accordance with Accounting Standard 15 “Employees Benefits”, the Company has classified various Benefits provided to employees as under:

I Defined Contribution Plans

a. Provident Fund

b. Employers' contribution to Employees' State Insurance

6) SEGMENT REPORTING:

As the Company's business activities fall within a single primary business segment, viz., “'Electric Wire & Cable”, the disclosure requirement of Accounting Standard (AS) - 17 “Segment Reporting” are not applicable.

7) RELATED PARTY DISCLOSURE:

As per Accounting Standard 18, “Related Party Disclosure” issued by The Institute of Chartered Accountants on India, the disclosures of transactions with the Related Parties as defined in the Accounting Standard are given below-

Key Management Personnel Nature of Relationship

Naveen Sawhney Managing Director

D.K. Prashar Joint Managing Director

RELATIVES of Key Nature of Relationship Management Personnel

Varun Sawhney Son of Mr. Naveen Sawhney

Rahul Prashar Son of Mr. D.K. Prashar

Gaurav Sawhney Son of Mr. Naveen Sawhney

Adarsh Sawhney Wife of Mr. Naveen Sawhney

Adesh Prashar Wife of Mr. D.K. Prashar

Amit Prashar Son of Mr. D.K. Prashar

8) During the year, Company has made provision for Minimum Alternate Tax (MAT) of Rs. 1,57,24,834/- Considering the future expected benefits, the company has recognize Rs. 1,03,31,873/- as MAT entitlement credit representing excess of MAT provision over current tax.

9) INITIAL PUBLIC OFFERING:

The Company has raised Rs. 41,64,75,000/- through Initial Public Offer (IPO) during the financial year 2007-08 by issuance of 3085000 equity shares (including Employees Reservation Portion of 70,000 equity shares) of Rs.10/- each at a premium of Rs. 125/- per share.

10) As at March 31, 2011, the company had Rs. 58,725/- as outstanding in the refund account with ICICI bank towards unpaid application money received by the company for allotment of shares and is due for refund. This amount is not available for use by the company and will be credited to Investor Education & Protection Fund as and when due unless claimed by share holders earlier to the specified date.

11) Amounts due to Micro, Small and Medium Enterprises:

In absence of any information submitted by vendors with regards to their registration (filling of Memorandum) under “The Micro, Small and Medium Enterprises Development Act, 2006 ”, Liability can not be ascertained at the close of the year and hence no disclosures have been made in this regards.

12) In the opinion of the Board of Directors, all currents assets, loans and advances appearing in the balance sheet as at 31st March, 2011 have a value on realization in the ordinary course of the Company's business at least equal to the amount at which they are stated in the balance sheet. In the opinion of the Board of Directors, no provision is required to be made against the recoverability of these balances.

13) Schedules 1 to 18 are annexed to and form an integral part of the Balance Sheet and Profit & Loss Account.


Mar 31, 2010

A. CONTINGENT LIABILITIES

1) Claims against the Company not acknowledged as debts:

Details of various show cause notices & cases against which the Company / Department is in appeal and against which no demand is deposited are given below:

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

Central Excise Excise Duties 359716/- 2005-06 Commissioner (Appeals),Central Act, 1944 Penalty 75000/- Excise & Custom, Jaipur

Excise Duties 330225/- 2004-05 Asst.Commissioner, Central

Excise, Bhiwadi Excise Duties 162054/- 2005-06 Appeal Pending in CEGAT,Jaipur Excise Duties 176867/- 2005-06 Commissioner of Central Excise & Penalty 50000/- Custom, Jaipur

Excise Duties 161169/- 2006-07 Commissioner (Appeal), Central Penalty 161169/- Excise, Jaipur

Excise Duties 3159709/- 2006-07 Addl.Commissioner Central Excise, Jaipur

Excise Duties 5783018/- 2006-07 Addl.Commissioner Central Excise, Jaipur

Excise Duties 260222/- 2006-07 Addl.Commissioner Central Excise, Penalty 50000/- Jaipur

Excise Duties 81681/- 2006-07 Superitendent, of Central Excise, Bhiwadi

Excise Duties 746412/- 2004-05 Joint Commissioner of Central Excise, Jaipur

Excise Duties 6024771/- 2007-08 Commissioner (Appeals), Central Excise & Custom, Jaipur

Excise Duties 67441/- 2007-08 Asst.Commissioner, Central Excise, Bhiwadi

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

Excise Duties 2281042/- 2007-08 Joint Commissioner, Central Excise, Jaipur

Excise Duties 5437100/- 2008-09 Joint Commissioner, Central Excise, Jaipur Excise Duties 1309877/- 2008-09 Joint Commissioner, Central Excise, Jaipur

Excise Duties 15271114/- 2009-10 Commissioner, Central Excise, Jaipur Excise Duties 15337611/- 2009-10 Commissioner, Central Excise, Jaipur

Service Tax 1397962/- 2006-07 Directorate General of Central Excise Intelligence, Delhi

Sales Tax 7232954/- 2008-09 Addl. Commissioner & Special

Penalty 1954386/- 2008-09 Joint Commissioner

Interest 565697/- 2008-09

2) Other Contingent Liabilities

Amount (Rs. in Lacs)

Particulars (2009-10) (2008-09)

Guarantees issued by Bankers* 6592.13 5663.45

Estimated amounts of contracts remaining to be executed on capital account and not provided for (Net of Advances) 1935.21 617.49

L/Cs negotiated by bank 1384.10 802.04

In respect of Bill factored from banks/Factoring agency 2117.00 1048.37

*Bank Guarantee of Rs 3360.60 Lacs (PY 2810.60 Lacs) given to Raw Materials suppliers for credit extended to company and the same is accounted for in sundry creditors.

1) Previous year figures have been regrouped/ rearranged wherever necessary.

2) The company was allotted industrial land bearing industrial plot No. E-520, Industrial Area, Chopanki, Bhiwadi, Rajasthan measuring 5400 sq. mt. @ Rs. 600/- per sq. mt. by RIICO Ltd. vide allotment letter No. 7912 dated 26.02.2005 which was capitalized under Fixed Assets (Land). However, the Lease Deed was executed by RIICO for area measuring 3952 sq. mt. on 09.03.2007. The company has taken up the matter with RIICO Ltd., the final outcome of which is awaited. Pending finalization of the matter, no accounting adjustment has been done in value of land.

* The installed capacity as shown above has been certified by the management and not verified by the Auditors,

being a technical matter.

Note : As the company is producing more than 400 sizes of cable and the product mix changes depending on the order, hence plant is designed to adopt the changeability and it is difficult to determine the exact capacity for each type of cable.

3) New Project Status

Change in land for upcoming project

Due to recessionary market conditions, the management decided to hold on to the project implementation for a while. In view of the improvement in the situation, the project is now expected to be commissioned expeditiously and is likely to commence production in second-half of financial year 2010-11. Also, RIICO allotted an alternative piece of land for the project due to certain issues with the proper procurement of the previous piece of land. The new land is better located and more suitable for the project.

Also, some of the machineries have temporarily been commissioned at companys present site at Chopanki.

4) Employee Benefits

In accordance with Accounting Standard 15 "Employees Benefits", the Company has classified various Benefits provided to employees as under :

Defined Contribution Plans

a. Provident Fund

b. Employers contribution to Employees State Insurance

5) Segment Reporting

As the Companys business activities fall within a single primary business segment, viz., "Electric Wire & Cable", the disclosure requirement of Accounting Standard (AS)-17 "Segment Reporting" are not applicable.

6) Related Party Disclosure

As per Accounting Standard 18, "Related Party Disclosure" issued by The Institute of Chartered Accountants on India, the disclosures of transactions with the Related Parties as defined in the Accounting Standard are given below-

Key Management Personnel

- DIRECTORS

Naveen Sawhney

D.K. Prashar

Rakesh Malhotra

- RELATIVES of Key Management Personnel

Varun Sawhney

Rahul Prashar

Gaurav Sawhney

Suchita Malhotra

7) Initial Public Offering

The Company has raised Rs. 41,64,75,000/- through Initial Public Offer (IPO) during the financial year 2007-08 by issuance of 3085000 equity shares (including Employees Reservation Portion of 70000 equity shares) of Rs. 10/- each at a premium of Rs. 125/- per share.

Out of the funds raised through IPO Rs. 41,64,75,000/-, Rs, 34,27,41,251/- (as detailed hereunder) have been utilized till 31st March 2010 and balance are lying unutilized and will be utilized as per the "Proposed Deployment of funds" mentioned in the Chapter the "Object of the issue" of the Prospectus. The unutilized funds have been temporarily kept in fixed deposit with Banks and balance in bank account.

8) As at March 31, 2010, the company had Rs. 58,725/- as outstanding in the refund account with ICICI bank towards unpaid application money received by the company for allotment of shares and is due for refund. This amount is not available for use by the company and will be credited to Investor Education & Protection Fund as and when due unless claimed by share holders earlier to the specified date.

9) Amounts due to Micro, Small and Medium Enterprises:

In absence of any information submitted by vendors with regards to their registration (filling of Memorandum) under "The Micro, Small and Medium Enterprises Development Act, 2006 ", Liability can not be ascertained at the close of the year and hence no disclosures have been made in this regards.

10) In the opinion of the Board of Directors, all currents assets, loans and advances appearing in the balance sheet as at March31, 2010 have a value on realization in the ordinary course of the Companys business at least equal to the amount at which they are stated in the balance sheet. In the opinion of the Board of Directors, no provision is required to be made against the of these balances.

11) Schedules 1 to 18 are annexed to and form an integral part of the Balance Sheet and Profit & Loss Account.