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Auditor Report of Delton Cables Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of M/S DELTON CABLES LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2015, 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

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 includes maintenance of adequate accounting records inaccordance 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.

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 thereunder.

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 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.

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, 2015;

(b) in the case of the Statement of Profit and Loss, of the Loss 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.

Emphasis of Matters

We draw attention to the following matters in the Notes to the financial statements:

a) We draw attention to Note 16(b) in the financial statements regarding recoverability or otherwise and the consequential effect ,if any on the statement of profit and loss in respect of old outstanding aggregating to Rs. 9,005,719 due from customers and included under the head Trade Receivables outstanding over six months.

b) No confirmation has been received from Trade receivables, Trade payables and Closing stock of semi finished goods lying with Job worker.

Our opinion is not qualified in respect of these matters.

Report on Other Legal and Regulatory Requirements

1. 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 Companies Act, 2013, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by section 143(3) of the Companies Act 2013, 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 and further proper returns adequate for the purpose of audit has been received from the branches not visited by us;

c. The Balance Sheet, the 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 aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

e. On the basis of written representations received from the directors as on March 31, 2015 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on March 31,2015 from being appointed as a director in terms of sub-section (2) of section 164 of the Companies Act, 2013;

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 disclosed the impact of pending litigation on its financial position in its financial statements as referred to in Note 29 of the financial statements.

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.

Annexure to the Auditors' Report

The Annexure referred to in our Independent Auditors' Report to the members of the Company on the financial statements for year ended March 31,2015, we report that:

i) a) The Company has maintained proper records 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 and there is a regular programme 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 were noticed on such verification.

ii) a) The inventory has been physically verified by the management during the year except the inventories lying with the third party. In our opinion, the frequency of such verification is reasonable.

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

c) The Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records have been properly dealt with in the books of account.

iii) (a) to (b) According to the information and explanation given to us, the company had not granted loan to any of the Company covered in the register maintained under section 189 of the Companies Act, 2013. Therefore, the provisions of clause 3(iii) (a) to (b) of the Companies (Auditor's Report) Order, 2015 are not applicable to the company.

iv) In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and the nature of its business with regard to purchase of inventory and fixed assets and for the sale of goods and services. Further, on the basis of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices, there is no continuing failure to correct the weaknesses in the aforesaid internal control systems.

v) In our opinion and according to the information and explanation given to us, since the company has not accepted any deposits within the meaning of section 73 to 76 of the Companies Act, 2013, therefore the question of the compliance of any directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there under does not arise.

vi) The Central Government, for the purpose of sub section (1) of section 148 of the companies act, 2013, vide its second proviso to rules 3 of the companies (Cost Records and Audit ) Rules,2014 has exempted the company which is classified as a micro enterprise or small enterprise including as per the turnover criteria under sub-section(9) of section 7 of the Micro, Small and Medium Enterprises Development Act, 2006. Therefore, the provisions of Clause 3(vi) of the companies (Auditor's Report) order,2015 are not applicable to the company.

vii) a) 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 Provident Fund, Employees' State insurance, Income tax, Sales tax, Service tax, Customs duty, Excise duty, Investor Education and Protection Fund, cess and other material statutory dues have generally been regularly deposited during the year by the Company with the appropriate authorities, According to the information and explanations given to us no undisputed amounts payable in respect of Provident Fund, Employees' State insurance, Income tax, Sales tax, Service tax, Customs duty, Excise duty, Investor Education and Protection Fund, cess and other material statutory dues as at 31 st March,2015 for a period of more than six months arrears except Professional tax from the date they became payable.

Name of the Nature of Amount Period to which Statute Dues (Rupees) amount relates

Professional Professional 2,520 Oct,13 to March,14

Tax Law Tax 800 April,14 and May,14

(b) According to the records of the Company examined by us and the information and explanations given to us, there are no material dues of sales tax , income tax, custom duty , wealth tax, service tax, excise duty, cess and other statutory dues, except the following, which have not been deposited on account of any dispute.

Name Nature of Amount Period Forum where of the Dues (Rupees) to which dispute is Statute amount pending relates (Assess- ment Year)

Sales Sales Tax 33,168 1980-81 High Court tax Law

42,216 1981-82 High Court

6,030 1982-83 High Court

43,676 1989-90 Sales Tax Tribunal

21,168 1990-91 Sales Tax Tribunal

2,518,755 2006-07 Joint Com. (Appeal)

2,003,739 2007-08 Joint Com. (Appeal)

1,356,877 2008-09 Joint Com. (Appeal)

1,446,868 2000-01 Joint Com. (Appeal)

318,029 2007-08 Excise & Taxation Com. (Appeal)

497,951 2008-09 Joint Com. (Appeal)

1,259,391 2011-12 Joint Com. (Appeal)

755,411 2007-08 Joint Com. (Appeal)

314,037 2008-09 Joint Com. (Appeal)

167,929 2009-10 Joint Com. (Appeal)

Local LADT 806,460 2000-01 Joint Com. Area (Appeal) Devel- opment Tax

3,889,683 2001-02 Joint Com. (Appeal)

1,036,364 2004-05 Joint Com. (Appeal)

Excise Excise 10,29,000 2011-12 Custom, Law case Excise and Service tax Appellate Tribunal, New Delhi

Income Income 173,652 2011-12 DCIT (Deputy Tax Law Tax Commissioner of Income tax)



(c) According to the information and explanations given to us the amounts which were required to be transferred to investor education and protection fund in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules made there under has been transferred to such fund within time.

viii) The company does not have any accumulated losses at the end of the financial year and has not incurred cash losses during the financial year covered by our audit and incurred cash losses in the immediately preceding financial year.

ix) Based on our audit procedures and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to banks and financial institutions during the year. There were no dues payable to debenture holders.

x) In our opinion and on the basis of information and explanation given to us, the company has not given guarantees for loans taken by others from banks or financial institutions. Therefore, the provisions of clause 3(x) of the Companies (Auditor's Report) Order, 2015 are not applicable to the company.

xi) In our opinion and according to the information and explanation given to us, the term loans were applied for the purposes for which the loans were obtained.

xii) During the course of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India and according to the information and explanation given to us, we have neither come across any instance of material fraud on or by the Company, noticed or reported during the year nor have we been informed of such case by the management.

FOR S. R. DINODIA & CO. LLP. Chartered Accountants, Firm's Registration Number 001478N/N500005

Sd/- Sandeep Dinodia Partner Membership Number 083689

Place: New Delhi Date: May 30, 2015


Mar 31, 2014

We have audited the accompanying financial statement of M/S DELTON CABLES LIMITED, ("the Company"), which comprise The Balance Sheet as at 31st March, 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 and cash flows of the Company in accordance With the Accounting Standards referred to in Sub-section (X) Of Section 211 of The Companies Act, 1956 (' the AcT") read with the General Circular No 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect Of Section 133 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 an our audit. We conducted Our audit in accordance with the Standards an Auditing issued by the Institute or Chartered Accountants of India. Those Standards require that wo comply with ethical requirements and plan and perform, The audit to obtain reasonable assurance about whether the financial statements ana 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 1he 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 control relevant to the Company's preparation and fair presentation or the financial statements in order to design audit procedures that are appropriate in the circumstances but hot for the purpose of expressing an opinion on the effectiveness oF the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and 1he 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 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 far view it conformity with the accounting principles generally accepted in India

(a) In the case or the Balance Sheet. of the state of affaire of the Company as at 31st March 2014;

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

(c) In the case of the Cash Flow Statement, of the cash Flows Tor the year ended on that date,

Emphasis Of Matter

We draw attention to note 16(b) of the financial statements regarding recoverability or otherwise and the consequential effect if any. on the statement of profit and loss in respect of old outstanding aggregate to Rs. 10,129,039 due from the customers and included under The head sundry debtors over six months unsecured Our opinion is net qualified in respect of this matter.

Report on Other Legal 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) or section 227 of the Act, we give In the Annexure a statement on the matters Specified In paragraph 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 these books;

c. the Balance Sheet. Statement of Profit and Law, end 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 The General Circular No. 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act 2013

e. On the basis Of Witten representations received from the directors as on 31st March 2014 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March 2014 from being appointed as a director in terms of clause (a) of subsection (1) of section 274 of the Companies Act 1956;

f, Since the Central Government has not issued any notification to the rate art which the cess is to be paid under section 441A oF the Companies Act, nor has it issued any Rules under the said section, prescribing the manner In which such cess is to be paid, no cess is duo and payable by the Company.

ANNEXURE TO THE AUDITORS' REPORT

(Referred to in paragraph 1 under the heading of "Report on Other Legal & Regulatory Requirements" of our report of even date)

RE: M/S DELTON CABLES LIMITED

i) (a) The company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets.

(b) As explained to us, physical verification of major fixed assets has been conducted by the management at appropriate intervals. In our opinion, the program is reasonable having regard to the size of the company and the nature of the fixed assets. No material discrepancies were noticed on such verification as compared to book records.

(c) No substantial part of fixed assets has been disposed off during the year.

ii) (a) On the basis of information and explanation provided by the management, Inventories have been physically verified by the management during the year except inventories lying with the third parties. In our opinion, frequency of verification is reasonable.

(b) In our opinion, procedures for 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, the company is maintaining proper records of inventory. We have been explained that discrepancies noticed on physical verification as compared to book records were not material and the same have been properly dealt with in the books of account.

iii) According to information and explanation given to us, the company has not granted/ taken any loans to/from companies, firms or other parties covered in the register maintained u/s 301 of the Companies Act, 1956 during the year. Therefore, the provision of clause 4 (iii) (a to g) of the Companies (Auditor's Report) Order, 2003 are not applicable to the company.

iv) In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the company and the nature of its business with regard to the purchase of inventory, fixed assets and for the sales of goods. Further, on the basis of our examination of the books and records of the company, carried out in accordance with the generally accepted auditing practices, there is no continuing failure to correct the weaknesses in the aforesaid internal control systems.

v) (a) In our opinion and according to the information and explanations given to us, the particulars of contracts or arrangements referred to section 301 of the Act have been entered in the register required to be maintained under that section.

(b) The transactions made in pursuance of such contracts or arrangements have been made at prices, which are reasonable with regard to the prevailing market prices at the relevant times.

vi) In our opinion, and according to the information and explanations given to us, the company has not accepted any deposit within the meaning of section 58A, 58 AA and the other relevant provisions of the Companies Act, 1956 and rules framed there under.

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

viii) We have broadly reviewed the books of accounts maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 209 (1) (d) of the Companies Act, 1956 and are of the opinion that, prime facie, the prescribed accounts and records have been made and maintained. But, we were not required to carry out and have not carried out any detailed examination of such records and account.

ix) (a) The company is generally regular in depositing undisputed statutory dues including 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 with the Appropriate Authorities.

(b) According to information and explanation given to us, no undisputed amount of statutory dues were outstanding as at last day of the financial year for a period more than six months from the date on which they became payable.

(c) According to information and explanation given to us, there are no dues of sales tax, income tax, custom duty, wealth tax, service tax, excise duty, cess, which have not been deposited on account of any dispute, except as follows:-

Statement of Disputed Dues

Name of the Nature Amount Period to which Statute (Rs.) the amount relates (Assessment Year)

Sales Tax Law Sales Tax 33,168 1980-81

42,216 1981-82

6,030 1982-83

43,676 1989-90

21,168 1990-91

1,446,868 2000-01

289,668 2005-06

318,029 2007-08

755,411 2007-08

2,518,755 2006-07

2,003,739 2007-08

2,998,425 2006-07

497,951 2008-09

314,037 2008-09

167,929 2009-10

1,356,877 2008-09

Local Area LADT 806,460 2000-01 Development Tax 3,889,683 2001-02

1,036,364 2004-05

Excise Law Excise case 1,029,000 2011-12



Name of the Forum where dispute is pending Statute

Sales Tax Law High Court

-do

-do

Sales Tax Tribunal

-do

-do

-do-

Excise & Taxation Comm.(Appeal)

Joint Com. (Appeal)

Joint Com. (Appeal)

Joint Com. (Appeal)

Joint Com. (Appeal)

Joint Com. (Appeal)

Joint Com. (Appeal)

Joint Com. (Appeal)

Joint Com. (Appeal)

Local Area Joint Com. (Appeal) Development Tax -do-

-do-

Excise Law Customs, Excise and Service tax Appellate Tribunal, New Delhi



x) The Company does not have any accumulated losses at the end of the financial year and has incurred cash losses in the financial year covered by our audit and in the immediately preceding financial year.

xi) On the basis of information and explanation provided by the management and test checked by us, the company has not made any default in the repayment of dues to the financial institutions and banks.

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, during the year under audit.

xiii) In our opinion, the company is not a chit fund or nidhi mutual benefit fund/society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditors Report) Order, 2003 are not applicable to the company.

xiv) The company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provision of clause 4(xiv) of the Companies (Auditor Report) Order, 2003 are not applicable to the company.

xv) On the basis of information and explanation provided, the company has not given guarantee for loans taken by others from the banks during the year.

xvi) The term loan was applied for the purposes for which the loan was obtained.

xvii) On the basis of information and explanation given to us and on an overall examination of the balance sheet, we report that during the year there are no funds raised by the company on short-term basis, which have been used for long term investment.

xviii) The company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956 during the year.

xix) During the period covered by our audit report, the company has not issued any debentures.

xx) The company has not raised any money by public issues during the year.

xxi) During the course of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India, during the year we have neither come across any instance of fraud on or by the Company nor have we been informed of such case by the management.

For S. R. DINODIA&CO. LLP. CHARTERED ACCOUNTANTS REGN. NO. 001478N/N500005

(SANDEEP DINODIA) PARTNER M.NO. 083689

PLACE: NEW DELHI DATE: 30 MAY, 2014


Mar 31, 2013

1. We have audited the accompanying financial statements of M/S DELTON CABLES LIMITED, ("the Company"), which comprise the Balance Sheet as at 31st March, 2013, the Statement of Profit and Loss and Cash Flow Statement for the year ended 31st March, 2013; and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for die Financial Statements

2. Management is responsible for 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 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

3. 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

4. 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 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 wed 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

5. 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 3lst March, 2013; and

(b) in the case of the Statement of Profit and Loss, of the loss 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

6. 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 Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in the paragraphs 4 and 5 of the said order.

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 thosebooks;

c. the Balance Sheet, Statement of Profit and Loss, and Cash How 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 31st March 2013 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March 2013 from being appointed as a director in terms of clause (g) of sub- section (1) of section 274 of the Companies Act, 1956;

f. Since the Central Government has not issued any notification as to the rate at which the cess is to be paid under section 441A of the Companies Act, 1956 nor has it issued any Rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company.

g. Attention is invited to the following:

i) We are unableto express an opinion on the recoverabilify or otherwise and the consequential effect if any, on the statement of profit and loss in respect of old outstandings aggregate to Rs. 10,173,725 due from the customers and included under the head sundry debtors over six months unsecured and considered good in Note 15 of Financial Statement

ANNEXURE TO THE AUDITORS'' REPORT (Referred to in paragraph 3 of our audit report of even date)

i) (a) The company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets.

(b) As explained to us, physical verification of major fixed assets has been conducted by the management at appropriate intervals. In our opinion, the program is reasonable having regard to the size of the company and the nature of the fixed assets. No material discrepancies were noticed on such verification as compared to book records.

(c) No substantial part of fixed assets has been disposed off during the year.

ii) (a) On the basis of information and explanation provided by the management, Inventories have been physically verified by the management during the year except inventories lying with the third parties. In our opinion, frequency of verification is reasonable.

(b) In our opinion, procedures for 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, the company is maintaining proper records of inventory. We have been explained that discrepancies noticed on physical verification as compared to book records were not material and the same have been properly dealt with in the books of account.

iii) According to information and explanation given to us, the company has not granted/ taken any loans to/from companies, firms or other parties covered in the register maintained u/s 301 of the Companies Act 1956 during the year. Therefore, the provision of clause 4 (iii) (a to g) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the company.

iv) In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the company and the nature of its business with regard to the purchase of inventory, fixed assets and for the sales of goods. Further, on the basis of our examination of the books and records of the company, carried out in accordance with the generally accepted auditing practices, there is no continuing failure to correct the weaknesses in the aforesaid internal control systems.

v) (a) In our opinion and''according to the information and explanations given to us, the particulars of contracts or arrangements referred to in section 301 of the Act have been entered in the register required to be maintained under that section. (b) The transactions made in pursuance of such contracts or arrangements have been made at prices„which are reasonable with regard to the prevailing market prices at the relevant times.

vi) In our opinion, and according to the information and explanations given to us, the company has not accepted any deposit within the meaning of section 58A, 58 AA and the other relevant provisions of the Companies Act, 1956 and rules framed there under.

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

viii) We have broadly reviewed the books of accounts maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 209(1) (d)oftheCompaniesAct,1956andareoftheopinionthat,primefacie,theprescribed accounts and records have been made and maintained. But, we were not required to carry out and have not carried out any detailed examination of such records and account.

ix) (a) The company is generally regular in depositing undisputed statutory dues including 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 with the Appropriate Authorities except Employees Deposit Linked Insurance.

(b) According to information and explanation given to us, no undisputed amount of statutory dues were outstanding as at last day of the financial year for a period more than six months from the date on which they became payable except Employees Deposit Linked Insurance amounting to Rs. 150,000.

(c) According to information and explanation given to us, there are no dues of sales tax, income tax, custom duty, wealth tax, service tax, excise duty, cess, which have not been deposited on account of any dispute, except as follows:-



Statement of Disputed Dues

Name of the Statute Nature Amount (Rs.)

Sales Tax Law Sales Tax 33,168

42,216

6,030

43,676

21,168

2,551,867

1,446,868

289,668

318,029

755,411

2,518,755

2,003,739

2,998,425

497,951

1,266,181

314,037

167,929

1,356,877

Local Area Development Tax LADT 806,460

3,889,683

1,036,364

Excise Law Excise case 1,029,000



Name of the Statute Period to which the Forum where amount relates dispute is (Assessment Year) pending

Sales Tax Law 1980-81 High Court

1981-82 -do-

1982-83 -do-

1989-90 Sales Tax Tribunal

1990-91 -do-

1999-00 Joint Com. (Appeal)

2000-01 -do-

2005-06 -do-

2007-08 Excise & Taxation Comm.(Appeal)

2007-08 Joint Com. (Appeal)

2006-07 Joint Com. (Appeal)

2007-08 Joint Com. (Appeal)

2006-07 Joint Com. (Appeal)

2008-09 Joint Com. (Appeal)

2006-07 Joint Com. (Appeal)

2008-09 Joint Com. (Appeal)

2009-10 Joint Com. (Appeal)

2008-09 Joint Com. (Appeal)

Local Area Development Tax 2000-01 Joint Com. (Appeal)

2001-02 -do-

2004-05 -do-

Excise Law 2011-12 Customs, Excise and Service tax Appellate Tribunal, New Delhi



x) The Company does not have any accumulated losses at the end of the financial year and has not incurred cash losses in the financial year covered by our audit and in the immediately preceding financial year.

xi) On the basis of information and explanation provided by the management and test checked by us, the company has not made any default in the repayment of dues tp the financial institutions and banks.

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, during the year under audit.

xiii) In our opinion, the company is not a chit fund or nidhi mutual benefit fund/society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditors Report) Order, 2003 are not applicable to the company.

xiv) The company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provision of clause 4(xiv) of the Companies (Auditor Report) Order, 2003 are not applicable to the company.

xv) On the basis of information and explanation provided, the company has not given guarantee for loans taken by others from the banks during the year.

xvi) The term loan was applied for the purposes for which the loan was obtained.

xvii) On the basis of information and explanation given to us and on an overall examination of the balance sheet, we report that during the year there are no funds raised by the company on short-term basis, which have been used for long term investment.

xviii) The company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956 during the year.

xix) During the period covered by our audit report, the company has not issued any debentures.

xx) The company has not raised any money by public issues during the year.

xxi) During the course of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India, during the year we have neither come across any instance of fraud on or by the Company nor have we been informed of such case by the management.



For S.R. DINODIA & CO.,

Chartered Accountants

Regn. No. 001478N



Place : New Delhi (SANDEEP DINODIA)

Dated: 30 May, 2013 Partner

M. No. 083689


Mar 31, 2012

We have audited the attached Baiance sheet of M/S DELTON CABLES LIMITED, as at 31st March, 2012 and also the Statement of Profit & Loss of the year ended on that date annexed thereto and the cash flow statement for the year ended on that date. 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 amended by the Companies (Auditor's Report) (Amendment) Order. 2004) issued by the Central Government of India, in terms of Sub Section (4A) of Section 227 of the Companies Act. 1956, we enclose in the Annexure a statement on the matters specified in the paragraphs 4 and 5 of the said order Further to our comments in the annexure referred to above, 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 Company's Balance Sheet Statement of Profit & Loss Account and the Cash Flow Statement dealt with by this report are in agreement with the

books of account. -

d) In our opinion, the Balance Sheet, the Statement of Profit and Loss Account and the Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub section (3C) of Section 211 of the Companies Act. 1956

e) On the basis of written representations received from the directors as on 31st March, 2012 and taken on record by the Board of Directois. we report that none of the directors is disqualified as on 31st March, 2012 from being appointed as director in term of claiise (g) of sub-section (1) of section 274 of the Companies Act, 1956

* We are unable to express an opinion on the recoverability or otherwise and the consequential effect if any, on the profit & loss account in respect of old outstandings aggregating to Rs. 10,173.725 due from the customers and included under the head sundry debtors over six months unsecured and considered good in Note 14.1 of Financial Statement (Refer to Note 28 of Notes to Financial Statement).

* Due to implementation of SAP during the year, the company has changed its method of valuation of inventories from

* First-IivFirst-Out (FIFO) method to the moving weighted average method. The financial impact of which could not be ascertained (Refer note 13 of Financial Statement).

* Subject to the foregoing, in our opinion and to the best of our information and according to the explanations given to us. the said accounts give the information required by the Companies Act, 1956 in the matter so required, and give a true and fair view in conformity with the accounting principles generally accepted in India:

' i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2012:

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

iii) in the case of Cash Flow Statement, of the cash flow for the year ended on that date

(Referred to in paragraph 3 of our audit report of even date)

i) (a) The company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets.

(b) As explained to us, physical verification of major fixed assets has been conducted by the management at appropriate intervals. In our opinion, the program is reasonable having regard to the size of the company and the nature of the fixed assets. No material discrepancies were noticed on such verification as compared to book records.

(c) No substantial part of fixed assets has been disposed off during the year.

ii) (a) On the basis of information and explanation provided by the management. Inventories have been physically verified by the management

during the year except inventories lying with the third parties; In our opinion, frequency of verification is reasonable.

(b) In our opinion, procedures for 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, the company is maintaining proper records of inventory. We have been explained that discrepancies noticed on physical verification as compared to book records were not material and the same have been properly dealt with in the books of account.

iii) According to information and explanation given to us, the company has not granted/ taken any loans to/from companies, firms or other parties covered in the register maintained u/s 301 of the Companies Act, 1956 during the year. Therefore, the provision of clause 4 (iii) (a to g) of the - Companies (Auditors' Report) Order, 2003 are not applicable to the company.

iv) In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the company and the nature of its business with regard to the purchase of inventory, fixed assets and for the sales of goods. Further, on the basis of our examination of the books and records of the company, carried out in accordance with the generally accepted auditing practices, there is no continuing failure to correct the weaknesses in the aforesaid internal control systems.

v) (a) In our opinion and according to the information and explanations given to us, the particulars of contracts or arrangements referred to

in section 301 of the Act have been entered in the register required to be maintained under that section.

(b) The transactions made in pursuance of such contracts or arrangements have been made at prices, which are reasonable with regard to the prevailing market prices at the relevant times.

vi) In our opinion, and according to the information and expanation given to us, the company has not accepted any deposit within the meaning

- of section 58A, 58AA and the other relevant provisions of the Companies Act, 1956 and rules framed there under

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

viii) We have broadlu reviewed the books of accounts maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 209 (1) (d) of the Companies Act,1956 and are of the opinion that, prime facie, the prescribed accounts and records have been made and maintained. But, we were not required to carry out and have not carried out any detailed examination of such records and account.

ix) (a) The company is generally regular in depositing undisputed statutory dues including 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 with the Appropriate Authorities.

(b) According to information and explanation given to us, no undisputed amount of statutory dues were outstanding as at last day of the . financial year for a period more than six months from the date on which they became payable except Employees State Insurance amounting to'Rs. 18.668

(c) According to information and explanation given to us, there are no dues of sales tax, income tax, custom duty, wealth tax, service tax. excise duty, cess, which have not been deposited on account of any dispute, except as follows:-

Statement of Disputed Dues Name of the Nature Amount Period to which the Forum where Statute (Rs.) amount relates dispute is (Assessment year) pending

Income Tax Law Income Tax 1,131,417 1997-98 ITAT (Appeal) Sales Tax Law Sales Tax 33,168 1980-81 High Court

42,216 1981-82 -do-

6,030 1982-83 -do-

43,676 1989-90 Sales Tax Tribunal

21,168 1990-91 -do- 2.551.867 1999-00 Joint Com. (Appeal)

1.446.868 2000-01 -do-

2,247,059 2005-06 -do-

572,128 2007-08 Excise & Taxation Comm (Appeal)

755,411 2007-08 Addl. Com. Trade & Tax (Delhi)

2,518,755 2006-07 Joint Com (Appeal)

2,711,689 2007-08 Joint Com. (Appeal)

2,998,425 2006-07 Joint Com. (Appeal)

497,951 2008-09 Joint Com. (Appeal)

1,266,181 2006-07 Joint Com. (Appeal)

Local Area Development Tax LADT 1,210,778 2003-04 Joint Com. (Appeal)

1,036.364 2004-05 -do-

116,327 2005-06 -do-

80,152 2006-07 -do-

x) The Company does not have any accumulative losses at the end of the financial year and has not incurred cash losses in the financial year covered by our audit and in the immediately preceding financial year.

xi) On the basis of information and explanation provided by the management and test checked by us, the company has not made any default in the repayment ol dues to the financial institutions and banks.

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, during the year under audit. ,

xiii) In our opinion, the company is not a chit fund or nidhi mutual benefit fund/society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditors Report) Order, 2003 are not applicable to the company.

xiv) The company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provision of clause 4(xiv) of the Companies (Auditor Report) Order, 2003 are not applicable to the company.

xv) On the basis of information and explanation provided, the company has not given guarantee for loans taken by others from the banks during the year. .

xvi) The term loan was applied for the purposes for which the loan was obtained.

xvii) On the basis of information and explanation given to us and on an overall examination of the balance sheet, we report that during the year there are no funds raised by the company on short-term basis, which have been used for long term investment.

xviii) The company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956 during the year.

xix) During the period covered by our audit report, the company has not issued any debentures.

xx) The company has not raised any money by public issues during the year.

xxi) During the course of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India, during the year we have neither come across any instance of fraud on or by the Company nor have we been informed of such case by the management.

For S.R. DINODIA & CO.,

Chartered Accountants,

Regn. No. 01478N

(SANDEEP DINODIA)

Place : NEW DELHI Partner

Dated : May 29,2012 M.NO. 083689


Mar 31, 2011

We have audited the attached Balance sheet of M/S DELTON CABLES LIMITED, as at 31st March, 2011 and also the Profit & Loss Account for the year ended on that date annexed thereto and the cash flow statement for the year ended on that date. 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 amended by the Companies (Auditor's Report) (Amendment) Order, 2004} issued by the Central Government of India, in terms of Sub Section (4A) of Section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in the paragraphs 4 and 5 of the said order.

Further to our comments in the annexure referred to above, 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 Company's Balance sheet, Profit & Loss Account and the cash flow statement dealt with by this report are in agreement with the books of account.

d) In our opinion, the Balance Sheet, the Profit and Loss Account and the cash flow statement dealt with by this report comply with the accounting standards referred to in sub section (3C) of Section 211 of the Companies Act, 1956.

e) On the basis of written representations received from the directors as on 31st March, 2011 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March, 2011 from being appointed as director in term of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

f) We are unable to express an opinion on the recoverability or otherwise and the consequential effect if any, on the profit & loss account in respect of old outstandings aggregating to Rs. 10,173,725 due from the customers and included under the head sundry debtors over six months unsecured and considered good in Schedule '8' (Refer to Note No. B-2 of Schedule '17'). Subject to the foregoing, in our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2011;

ii) in the case of the Profit & Loss account, of the Profit for the year ended on that date; and

iii) in the case of cash flow statement, of the cash flow for the year ended on that date

ANNEXURE TO THE AUDITORS' REPORT (Referred to in paragraph 3 of our audit report of even date)

i) (a) The company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets.

(b) As explained to us, physical verification of major fixed assets has been conducted by the management at appropriate intervals. In our opinion, the program is reasonable having regard to the size of the company and the nature of the fixed assets. No material discrepancies were noticed on such verification as compared to book records.

(c) No substantial part of fixed assets has been disposed off during the year.

ii) (a) On the basis of information and explanation provided by the management, Inventories have been physically verified by the management during the year except inventories lying with the third parties. In our opinion, frequency of verification is reasonable.

(b) In our opinion, procedures for 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, the company is maintaining proper records of inventory. We have been explained that discrepancies noticed on physical verification as compared to book records were not material and the same have been properly dealt with in the books of account.

iii) According to information and explanation given to us, the company has not granted/ taken any loans to/from companies, firms or other parties covered in the register maintained u/s 301 of the Companies Act, 1956 during the year. Therefore, the provision of clause 4 (iii) (a to g) of the Companies (Auditors' Report) Order, 2003 are not applicable to the company.

iv) In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the company and the nature of its business with regard to the purchase of inventory, fixed assets and for the sales of goods. Further, on the basis of our examination of the books and records of the company, carried out in accordance with the generally accepted auditing practices, there is no continuing failure to correct the weaknesses in the aforesaid internal control systems.

v) (a) In our opinion and according to the information and explanations given to us, the particulars of contracts or arrangements referred to in section 301 of the Act have been entered in the register required to be maintained under that section.

(b) The transactions made in pursuance of such contracts or arrangements have been made at prices, which are reasonable with regard to the prevailing market prices at the relevant times.

vi) In our opinion, and according to the information and explanations given to us, the company has not accepted any deposit within the meaning of section 58A, 58 AA and the other relevant provisions of the Companies Act, 1956 and rules framed there under.

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

viii) We have broadly reviewed the books of accounts maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 209 (1) (d) of the Companies Act,1956 and are of the opinion that, prime facie, the prescribed accounts and records have been made and maintained. But, we were not required to carry out and have not carried out any detailed examination of such records and account.

ix) (a) The company is generally regular in depositing undisputed statutory dues including 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 with the Appropriate Authorities.

(b) According to information and explanation given to us, no undisputed amount of statutory dues were outstanding as at last day of the financial year for a period more than six months from the date on which they became payable.

(c) According to information and explanation given to us, there are no dues of sales tax, income tax, custom duty, wealth tax, service tax, excise duty, cess, which have not been deposited on account of any dispute, except as follows:- Statement of Disputed Dues

Name of the Nature Amount Period to Forum where which the dispute is Statute (Rs.) amount rel pending ates (Assessment year)

Income Income 1,131,417 1997-98 ITAT (Appeal) Tax Law Tax Sales Sales 33,168 1980-81 High Court Tax Law Tax 42,216 1981-82 -do-

6,030 1982-83 -do-

43,676 1989-90 Sales Tax Tribunal 21,168 1990-91 -do-

2,551,867 1999-00 Jiont Com. (Appeal)

1,446,868 2000-01 -do-

366,378 2003-04 -do-

987,820 2004-05 -do-

6,240,276 2005-06 -do-

572,128 2007-08 Excise & Taxation Comm. (Appeal) 755,411 2007-08 Addl. Com. Trade & Ta x (Delhi) Local Area Development Tax LADT 1,210,778 2003-04 Joint Com. (Appeal)

1,036,364 2004-05 -do-

116,327 2005-06 -do-

80,152 2006-07 -do-

x) The Company does not have any accumulative losses at the end of the financial year and has not incurred cash losses in the financial year covered by our audit and in the immediately preceding financial year.

xi) On the basis of information and explanation provided by the management and test checked by us, the company has not made any default in the repayment of dues to the financial institutions and banks.

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, during the year under audit.

xiii) In our opinion, the company is not a chit fund or nidhi mutual benefit fund/society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditors Report) Order, 2003 are not applicable to the company.

xiv) The company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provision of clause 4(xiv)

of the Companies (Auditor Report) Order, 2003 are not applicable to the company.

xv) On the basis of information and explanation provided, the company has not given guarantee for loans taken by others from the banks during the year.

xvi) The term loan was applied for the purposes for which the loan was obtained.

xvii) On the basis of information and explanation given to us and on an overall examination of the balance sheet, we report that during the year there are no funds raised by the company on short-term basis, which have been used for long term investment.

xviii) The company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956 during the year.

xix) During the period covered by our audit report, the company has not issued any debentures.

xx) The company has not raised any money by public issues during the year.

xxi) During the course of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India, during the year we have neither come across any instance of fraud on or by the Company nor have we been informed of such case by the management.

For S.R. DINODIA & CO., Chartered Accountants, Regn. No. 01478N

(SANDEEP DINODIA) Partner M.NO. 083689

Place : NEW DELHI Dated : May 30, 2011


Mar 31, 2010

We have audited the attached Balance sheet of M/S DELTON CABLES LIMITED, as at 31st March, 2010 and also the Profit & Loss Account for the year ended on that date annexed thereto and the cash flow statement for the year ended on that date. 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 out 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 amended by the Companies (Auditors Report) (Amendment) Order, 2004} issued by the Central Government of India, in terms of Sub Section (4A) of Section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in the paragraphs 4 and 5 of the said order.

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

a) We have obtained al! 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 Companys Balance sheet, Profit & Loss Account and the cash flow statement dealt with by this report are in agreement with the books of account.

d) In our opinion, the Balance Sheet, the Profit and Loss Account and the cash flow statement dealt with by this report comply with the accounting standards referred to in sub section (3C) of Section 211 of the Companies Act, 1956.

e) On the basis of written representations received from the directors as on 31s March, 2010 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31s1 March, 2010 from being appointed as director in term of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

f) We are unable to express an opinion on the recouerability or otherwise and the consequential effect i/any, on the pro/it & loss account In respect of old outstandings aggregating to Rs. 10,173,725 due from the customers and Included under the head sundry debtors over six months unsecured and considered good In Schedule 8 (Refer to Note No. B-2 of Schedule 17).

Subject to the foregoing, in our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2010;

ii) in the case of the Profit & Loss Account, of the Profit for the year ended on that date; and

iii) in the case of cash flow statement, of the cash flow for the year ended on that

ANNEXURE TO THE AUDITORS REPORT (Referred to in paragraph 3 of our audit report of even date)

i) (a) The company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets

(b) As explained to us, physical verification of major fixed assets has been conducted by the management at appropriate intervals. In our opinion, the program is reasonable having regard to the size of the company and the nature of the fixed assets. No material discrepancies were noticed on such verification as compared to book records.

(c) No substantial part of fixed assets has been disposed off during the year.

ii) (a) On the basis of information and explanation provided by the management, Inventories have been physically verified by the management during the year except inventories lying with the third parties. In our opinion, frequency of verification is reasonable.

(b) In our opinion, procedures for 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, the company is maintaining proper records of inventory. We have been explained that discrepancies noticed on physical verification as compared to book records were not material and the same have been properly dealt with in the books of account.

iii) According to information and explanation given to us, the company has not granted/ taken any loans to/from companies, firms or other parties covered in the register maintained u/s 301 of the Companies Act, 1956 during the year. Therefore, the provision of clause 4 (iii) (a to g) of the Companies (Auditors Report) Order, 2003 are not applicable to the company.

iv) In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the company and the nature of its business with regard to the purchase of inventory, fixed assets and for the sales of goods. Further, on the basis of our examination of the books and records of the company, carried out in accordance with the generally accepted auditing practices, there is no continuing failure to correct the weaknesses in the aforesaid internal control systems.

v) (a) In our opinion and according to the information and explanations given to us, the particulars of contracts or arrangements referred to in section 301 of the Act have been entered in the register required to be maintained under that section. (b) The transactions made in pursuance of such contracts or arrangements have been made at prices, which are reasonable with regard to the prevailing market prices at the relevant times.

vi) In our opinion, and according to the information and explanations given to us, the company has not accepted any deposit within the meaning of section 58A, 58 AA and the other relevant provisions of the Companies Act, 1956 and rules framed there under.

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

viii) We have broadly reviewed the books of accounts maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 209 (1) (d) of the Companies Act,1956 and are of the opinion that, prime facie, the prescribed accounts and records have been made and maintained. But, we were not required to carry out arid have not carried out any detailed examination of such records and account.

ix) (a) The company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income tax, Sales-tax {Other than Rs.l 7,000 outstanding for a period more than six months as at 31" March, 2010), Wealth- tax, Service Tax, Custom Duty, Excise Duty, cess and any other statutory dues with the Appropriate Authorities.

(b) According to information and explanation given to us, no undisputed amount of statutory dues were outstanding as at last day of the financial year for a period more than six months from the date on which they became payable.

(c) According to information and explanation given to us, there are no dues of sales tax, income tax, custom duty, wealth tax, service tax, excise duty, cess, which have not been deposited on account of any dispute, except as follows:-

Statement of Disputed Dues

Name of the Nature Amount Period to which the Forum where Statute (Rs.) amount re lates dispute is (Assessment year) pending

Income Tax Law Income Tax 1,131,417 1997-98 ITAT (Appeal)

Sales Tax Law Sales Tax 33,168 1980-81 High Court

42,216 1981-82 -do-

6,030 1982-83 -do-

43,676 1989-90 Sales Tax Tribunal

21,168 1990-91 -do-

2.551.867 1999-00 Joint Com. (Appeal)

1.446.868 2000-01 -do-

366,378 2003-04 -do-

987,820 2004-05 -do-

6,240,276 2005-06 -do-

Local Area De velopment Tax LADT 1,210,778 2003-04 Joint Com. (Appeal)

1,036,364 2004-05 -do-

116,327 2005-06 -do-

80,152 2006-07 -do-

x) 7 he Company does not have any accumulative losses at the end of the financial year and has not incurred cash losses in the financial year covered by our audit and in the immediately preceding financial year.

xi) On the basis of information and explanation provided by the management and test checked by us, the company has not made any default in the repayment of dues to the financial institutions and banks.

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, during the year under audit.

xiii) In our opinion, the company is not a chit fund or nidhi mutual benefit fund/society. Therefore, the provisions of clause 4

(xiii) of the Companies (Auditors Report) Order, 2003 are not applicable to the company.

xiv) The company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provision of clause 4

(xiv) of the Companies (Auditor Report) Order, 2003 are not applicable to the company.

xv) On the basis of information and explanation provided, the company has not given guarantee for loans taken by others from the banks during the year.

xvi) The term loan was applied for the purposes for which the loan was obtained.

xvii) On the basis of information and explanation given to us and on an overall examination of the balance sheet, we report that during the year there are no funds raised by the company on short-term basis, which have been used for long term investment.

xviii) The company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956 during the year.

xix) During the period covered by our audit report, the company has not issued any debentures.

xx) The company has not raised any money by public issues during the year.

xxi) During the course of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India, during the year we have neither come across any instance of fraud on or by the Company nor have we been informed of such case by the management.

For S.R. DINODIA & CO.,

Chartered Accountants, Regn. No. 01478N

(SANDEEP DINODIA)

Place : NEW DELHI Partner

Dated: May 31 2010 M.NO. 083689

 
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