Mar 31, 2018
Report on the Ind As Financial Statements
We have audited the accompanying standalone financial statements of Cords Cable Industries Limited, which comprise the Balance Sheet as at 31stMarch, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as âStandalone Ind AS Financial Statementsâ).
Managementâs Responsibility for the Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134 (5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance (including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards prescribed under Section 133 of the Act read with rule 3of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) amendment Rules, 2016.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities, selection and application of appropriate accounting policies, making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorsâ Responsibility
Our responsibility is to express an opinion on these standalone Ind AS Financial Statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit of the Standalone Ind AS financial statements 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 standalone Ind AS Financial Statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the Standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Board of Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2018, and its profit (including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the âAnnexure Iâ, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Cash Flow Statement and the Statement of changes in Equity dealt with by this Report are in agreement with the relevant books of account.
(d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) amendment Rules, 2016.
(e) On the basis of the written representations received from the directors as on 31 March 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2018 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure IIâ and
(g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014,as amended, 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 litigations on its financial position in Its standalone Ind AS financial statements.
ii. The Company did not have any long term contracts including derivatives contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
ANNEXURE I TO INDEPENDENT AUDITORSâ REPORT (REFERRED TO IN OUR REPORT OF EVEN DATE)
i. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of the fixed assets.
(b) The fixed assets have been physically verified by the management at the reasonable intervals, which in our opinion, is considered reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.
(c) In our opinion and according to information and explanations given to us and on the basis of an examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
ii. The inventory includes finished goods, raw material and work in progress along with inventory of consumables and packing material. Physical verification of inventory has been conducted at reasonable intervals by the management and discrepancies noticed which were not material in nature have been properly dealt with in the books of accounts.
iii. The Company has not granted loans (secured or unsecured) to companies covered in the register maintained under Section 189 of the Act. Accordingly, paragraph 3(iii) of the order is not applicable.
iv. In our opinion and according to information and explanations given to us, the Company has complied with provisions of Section 185 and 186 of the Act in respect of loans, investments, guarantees, and security.
v. In our opinion and according to the information and explanations given to us, the Company has not accepted deposits, in respect of which, directives issued by the Reserve Bank of India and the provisions of Section 73 to 76 or any other relevant provisions of the Companies Act 2013 and rules framed there under, are not applicable on the company. No order had been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any other tribunal.
vi. 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 148 of the Act, and are of opinion that prima facie, the prescribed accounts and records have been made and maintained, however, we have not made the detailed examination of such cost records.
vii. (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, provident fund, employeesâ state insurance, income tax, sales tax, service tax, value added tax, duty of customs, duty of excise, cess, gst and other applicable material undisputed statutory dues have been deposited irregularly during the year with the appropriate authorities with delays in certain cases and there are no arrears of outstanding statutory dues as at the last day of the financial year concerned i.e. 31st March, 2018, for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues of income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, gst or other applicable material statutory dues which have not been deposited as on March 31, 2018 on account of any dispute except the followings:-
Name of the Statute |
Nature of dues |
Amount (Rs. in lacs) |
Period to which the amount relates |
Forum where dispute is pending |
Central Excise Act, 1944 |
Excise Duties & Services Tax |
|||
Excise Duties |
4.07 |
2010-2011 |
CESTAT, New Delhi |
|
Service Tax Less: Pre Deposit |
1.21 (-)0.09 |
2012-2014 |
Commissioner, (Appeals) Jaipur |
|
Service Tax Less: Already Deposit |
33.75 (-) 6.60 |
2012-2014 |
Commissioner, (Appeals) Jaipur |
|
Excise duties Less: Pre deposit |
4.81 (-)0.36 |
2014-2015 |
Commissioner, (Appeals) Jaipur |
Name of the Statute |
Nature of dues |
Amount (Rs. in lacs) |
Period to which the amount relates |
Forum where dispute is pending |
Excise duties |
2.27 |
2016-2017 |
Assistant Commissioner, Central Excise,Bhiwadi |
|
Excise duties |
0.55 |
2016-2017 |
Commissioner, (Appeals) Jaipur |
|
Excise duties Penalty Less: Pre-Deposit |
1.75 1.75 (-)0.13 |
2017-2018 |
Commissioner, (Appeals) Jaipur |
viii. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to banks, financial institutions and debenture holders as at the Balance Sheet date.
ix. According to the information and explanations given to us, the term loans were generally applied for the purpose for which those are raised. The Company has not raised money by way of initial public offer or further public offer (including debt instruments) during the year.
x. According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
xi. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
xii. According to the information and explanations given to us, the Company is not a Nidhi Company as prescribed under Section 406 of the Act. Accordingly paragraph 3(xii) of the Order is not applicable to the Company.
xiii. According to the information and explanations given to us, all transactions with the related parties are in compliance with Section 177 and 188 of Act, where applicable and the details of related party transactions have been disclosed in the Standalone Ind AS Financial Statements as required by the applicable accounting standards.
xiv. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
xv. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into noncash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
xvi. According to information and explanations given to us, the Company is not required to be registered under Section 45 IA of the Reserve Bank of India Act, 1934.
ANNEXURE II TO INDEPENDENT AUDITORSâ REPORT â 31 MARCH 2018 (REFERRED TO IN OUR REPORT OF EVEN DATE)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Cords Cable Industries Limited as at 31st March, 2018 in conjunction with our audit of the Standalone Ind AS Financial Statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Companyâs internal financial control over financial reporting includes those policies and procedures that:
(a) Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(b) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
(c) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us , the Company has, in all material respects, an adequate internal financial controls system over financial reporting but requires more strengthening and such internal financial controls over financial reporting were operating effectively as at 31st March 2018, based on the internal control over financial reporting criteria established by the Company consisting the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Alok Misra & Co.
Chartered Accountants
Firmâs Registration No: 018734N
CA. Alok Misra
Place of Signature : New Delhi Partner
Date :28th May, 2018 M.No: 500138
Mar 31, 2016
Report on the Financial Statements
We have audited the accompanying standalone financial statements of Cords Cable Industries Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss and the Cash Flow Statement for the year 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 (âthe Actâ) with respect to the preparation and presentation of these standalone 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 in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement .
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2016 and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the order, to the extent applicable
2. As required by section 143(3) of the Act, we report that:
a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b) in our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c) the Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account;
d) in our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rule, 2014;
e) on the basis of the written representations received from the directors as on March 31, 2016, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016 from being appointed as a director in terms of Section 164 (2) of the Act;
f) with respect to adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such control, refer to our separate report in ''Annexure B''; and
g) With respect to the other matters to be included in Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
I. The Company has pending litigations of Rs. 37.49 Crore with Revenue Authorities, however it would not impact its financial position
II. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses
III . The amounts which were required to be transferred to the Investor Education and Protection fund by the Company has been transferred .
The Annexure referred to in our Independent Auditor''s Report to the members of Cords Cable Industries Limited on the financial statement of the year ended March 31, 2016, we report that:
i) a) According to the information and explanations given to us and on the basis of our examination of the records, Company is maintaining proper records, showing full particulars, including quantitative details and situation of its fixed assets.
b) Fixed assets have been physically verified by the management at reasonable intervals and any material discrepancies were not noticed on such verification.
c) Title deeds of immovable properties are held in the name of the Company.
ii) According to the information and explanations given to us and on the basis of our examinations of the records of the Company, physical verification of the Company has been conducted at reasonable intervals by the management and no material discrepancies were noticed on such verification.
iii) The company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnership or other parties covered in the register maintained under Section 189 of the Companies Act, 2013. Accordingly, Paragraph 3(iii) of the order is not applicable
iv) In our opinion and according to the information and explanation given to us, the Company has complied with the provision of Section 185 and 186 of the Act, with respect to security and investment made, however Company has neither granted any loan nor given any guarantee
v) In our opinion, the Company has not accepted any deposits with the directive issued by Reserve Bank of India and provisions of Sections 73 to 76 or any other provisions of the Companies Act 2013 and the Rules framed there under No order passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal
vi) We are of the opinion that prima facie the cost records and accounts prescribed by Central Government under Section 148(1) of the Companies Act 2013 have been made and maintained . We have not ,however, carried out any detailed examination of the record with a view to determining whether they are accurate and complete
vii) a) According to 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 accounts in respect of undisputed statutory dues including provident fund, income tax, sales Tax, value added tax, duty of customs, service tax, cess and any other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities, to the extent applicable
According to the information and explanations given to us, no undisputed amounts payable in respect of aforesaid dues were in arrears, as at March 31, 2016 for a period of more than six months from the date they became payable, wherever applicable
b) According to the information and explanations given to us, details of dues which have not been deposited on account of a dispute are given below:
Name of the Statute |
Nature of dues |
Amount (Rs) |
Period to which the amount relates |
Forum where dispute is pending |
Central Excise Act, 1944 |
Excise Duties & Services Tax |
|||
Excise Duties Penalty Less: Pre-Deposited |
359716/ 75000/ 100000/- |
2005-06 |
Commissioner (Appeals),Central Excise & Custom, Jaipur |
|
Excise Duties |
3159709/- |
2006-07 |
CESTAT, New Delhi |
Name of the Statute |
Nature of dues |
Amount (Rs) |
Period to which the amount relates |
Forum where dispute is pending |
Excise Duties |
5783018/- |
2006-07 |
CESTAT. New Delhi |
|
Excise Duties |
6024771/- |
2007-08 |
CESTAT, New Delhi |
|
Excise Duties |
612151/- |
2007-08 |
Joint Commissioner Central Excise & Custom, Jaipur |
|
Excise Duties |
2281042/- |
2007-08 |
CESTAT, New Delhi |
|
Excise Duties |
5437100/- |
2008-09 |
CESTAT, New Delhi |
|
Excise Duties |
1309877/- |
2008-09 |
Joint Commissioner, Central Excise, Jaipur |
|
Excise Duties |
15271114/- |
2009-10 |
CESTAT, New Delhi |
|
Excise Duties |
15337611/- |
2009-10 |
CESTAT, New Delhi |
|
Excise Duties Less:- Recovered by Central Excise along with interest & penalty |
1105939/ 1616762/- |
2009-10 |
Commissioner(Appeals) Central Excise,Jaipur |
|
Excise Duties |
406601/- |
2010-11 |
CESTAT, New Delhi |
|
Excise Duties |
18237626/- |
2010-11 |
Commissioner of Central Excise Jaipur-I |
|
Excise Duties |
276589/- |
2011-12 |
Asstt . Commissioner Central Excise, Bhiwadi . |
|
Excise Duties Less:- Recovered by the Central Excise & balance to be recovered along with interest |
236874/ 236874/ 120976/ 194700/- |
2008-09 to 2011-12 |
Joint Commissioner Central Excise, Bhiwadi . |
|
Excise Duties |
15568226/- |
2011-12 |
Commissioner of Central Excise Jaipur-I |
|
Excise (Penalty) Less: Pre-deposit @7.5% |
13545628/ 1015922/- |
2011-2012 |
CESTAT ,New Delhi |
|
Excise duties Penalty Less:-Pre Deposit |
131270000/ 2500000/ 10032750/- |
2009-2014 |
CESTAT, New Delhi |
|
Excise duties Penalty Less:-Pre Deposit |
14429825/ 300000/ 1082237/- |
2013-2014 |
CESTAT, New Delhi |
|
Excise duties |
41793000/- |
2009-2014 |
Commissioner ,Central Excise,Alwar |
|
Excise duties |
9061656/- |
2014-2015 |
Commissioner ,Central Excise,Alwar |
|
Service Tax |
120732/- |
2012-2014 |
Assistant Commissioner ,Central Excise, Bhiwadi |
|
Service Tax Less: Already Deposit |
3374509/ 659854/- |
2012-2014 |
Joint Commissioner ,Central Excise,Alwar |
|
Excise duties |
481472/- |
2014-2015 |
Assistant Commissioner ,Central Excise,Bhiwadi |
Name of the Statute |
Nature of dues |
Amount (Rs) |
Period to which the amount relates |
Forum where dispute is pending |
Excise duties Penalty Less:-Pre Deposit |
25117000/ 500000/ 1921275/- |
2011-2014 |
CESTAT, New Delhi |
|
Excise duties Penalty Less:-Pre Deposit |
20619052/ 400000/ 1546429/- |
2013-2014 |
CESTAT, New Delhi |
|
Excise duties |
19711785/- |
2014-2015 |
Commissioner ,Central Excise,Alwar |
viii) According to the information and explanations given to us and on the basis of examination of the records of the Company, we are of the opinion that Company has not defaulted in repayment of loans or borrowings to a financial institutions and Banks.
ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments), however term loan taken during the year have been utilized for the purpose for which it was taken .
x) According to the information and explanations given to us, no material fraud by the company or on the Company by its officers or employees has been noticed or reported during the course of our audit
xi) According to the information and explanations given to us and based on our examination of the records of the Company, the managerial remuneration paid/ provided are in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V of Companies Act 2013.
xii) In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable .
xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards
xiv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has made preferential allotment of equity shares and requirement of Section 42 of the Companies Act 2013 have been complied and amount raised have been used for the purpose for which the fund was raised
xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable
xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For Sharma Goel & Co. LLP
Chartered Accountants
FRN: 000643N
Amar Mittal
Place : New Delhi Partner
Date : May 30, 2016 Membership No.: 017755
Mar 31, 2015
1. Report on the Financial Statements
We have audited the accompanying financial statements of CORDS CABLE
INDUSTRIES LTD. ("the Company"), which comprise the Balance Sheet as
at March 31, 2015, and the Statement of Profit & Loss, and the Cash
Flow Statement for the year ended, and a summary of significant
accounting policies and other explanatory information.
2. Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also maintenance
of adequate accounting records in accordance with the provisions of the
Act for safeguarding the assets of the Company and for preventing and
detecting frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and estimates that
are reasonable and prudent; and design, implementation and maintenance
of adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
3. Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls.
An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of the accounting estimates made
by Company's Directors, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
4. Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March 2015 and its Statement of Profit & Loss, and its Cash
Flows for the year ended on that date.
5. Report on Other legal and Regulatory Requirements
i) As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the order
to the extent applicable.
ii) As required by section 143(3) of the Act, we report that:
a) we have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the Balance Sheet, the Statement of Profit & Loss, and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the aforesaid financial statements comply with the
Accounting Standards under Section 133 of the Act, read the Rule 7 of
the Companies (Accounts) Rule, 2014;
e) on the basis of written representations received from the directors
as on March 31, 2015 taken on record by the Board of Directors, none of
the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has pending litigations of Rs. 10.78 crore with revenue
authorities, however it would not impact its financial position;
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses;
iii. There were no amounts which were required to be transferred to
the Investor Education and Protection Fund by the Company as on 31st
March 2015.
Annexure to the Auditors' Report of even date to the members of CORDS
CABLE INDUSTRIES LTD., on the financial statements for the year ended
March 31, 2015 [Refer to in para 5(i)] our report of even date)
Based on the Audit Procedures performed for the purpose of reporting a
true and fair view on the financials statements of the company and
taking into the consideration the information and explanation given to
us and the books of account and other records examined by us in the
normal course of audit, we report that:
i) In respect of fixed assets of the Company and in our opinion:
a) The Company has maintained proper records, showing full particulars,
including quantitative details and situation of fixed assets.
b) The Company has a programme of physical verification of its fixed
assets. In accordance with this programme, fixed assets were verified
during the year and no discrepancies were noticed on such verification.
In our opinion, the frequency of physical verification is reasonable
having regards to the size of the company and nature of fixed assets.
ii) In respect of inventories of the Company, in our opinion:
a) Inventories have been physically verified by the management during
the year and the frequency of verification is reasonable.
b) The procedure for physical verification of inventory followed by
management are reasonable and adequate in relation to the size of the
company and nature of its business.
c) The Company is maintaining proper records of inventory. No material
discrepancies were noticed on physical verification of inventory.
iii) The company has not granted any loan to companies, firms or other
parties covered in the register maintained under Section 189 of the
Companies Act, 2013, hence sub clause (a) and (b) of clause (iii) of
the Order is Not Applicable.
iv) In our opinion, there is an adequate internal control system
commensurate with the size of the Company and nature of its business
with regard to purchase of inventory, fixed assets and sale of goods &
services. We have not observed any continuing failure to correct major
weaknesses in the internal control system during the course of the
audit.
v) In our opinion, the Company has not accepted any deposits with the
directive issued by Reserve Bank of India and the provisions of
Sections 73 to 76 or any other provisions of the Companies Act 2013 and
the rules framed there under. No order has been passed by the Company
Law Board or National Company Law Tribunal or Reserve Bank of India or
any Court or any other Tribunal.
vi) We are of the opinion that prima facie the cost records and
accounts prescribed by Central Government under section 148(1) of the
Companies Act, 2013 have been made and maintained. We have not,
however, carried out a detailed examination of the records with a view
to determining whether they are accurate or complete.
vii) In respect of disputed and undisputed Statutory Dues of the
Company and according to information and explanations given to us and
on the basis of our examination of the records of the Company.
a. Amounts deducted / accrued in the books of accounts in respect of
Provident Fund, Employees' State Insurance, Income tax, Sales Tax,
Wealth Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax,
cess and any other material Statutory Dues have generally been
regularly deposited during the year by the Company with the appropriate
authorities, to the extent applicable. According to the information and
explanations given to us, no undisputed amounts payable in respect of
aforesaid dues were in arrears, as at March 31, 2015 for a period of
more than six months from the date they became payable.
b. According to the information and explanations given to us, detail
of dues of Service Tax, and Excise duty which have not been deposited
on account of a disputes are given below:
Name of Nature of dues Amount Period to
the Statute (Rs) which the
amount relates
Central Excise Excise Duties 3,59,716/- 2005-06
Act,1944 Penalty
75,000/-
Less: Pre-Deposited
1,00,000/-
Central Excise Excise Duties 1,62,054/- 2005-06
Act,1944
Penalty 1,62,054/-
Central Excise Excise Duties 1,76,867/- 2005-06
Act,1944 Penalty 50,000/-
Central Excise Excise Duties 1,61,169/- 2006-07
Act,1944 Penalty 1,61,169/-
Central Excise Excise Duties 31,59,709/- 2006-07
Act, 1944
Central Excise Excise Duties 57,83,018/- 2006-07
Act, 1944
Central Excise Excise Duties 2,60,222/- 2006-07
Act, 1944
Penalty 50,000/-
Central Excise Excise Duties 60,24,771/- 2007-08
Act, 1944
Central Excise Excise Duties 6,12,151/- 2007-08
Act, 1944
Central Excise Excise Duties 22,81,042/- 2007-08
Act, 1944
Central Excise Excise Duties 54,37,100/- 2008-09
Act, 1944
Central Excise Excise Duties 13,09,877/- 2008-09
Act, 1944
Central Excise Excise Duties 1,52,71,114/- 2009-10
Act, 1944
Central Excise Excise Duties 1,53,37,611/- 2009-10
Act, 1944
Central Excise Excise Duties 11,05,939/- 2009-10
Act, 1944 Recovered by
16,16,762/-
Central Excise
along with
interest & penalty
Central Excise Excise Duties 4,06,601/- 2010-11
Act, 1944
Central Excise Excise Duties 1,82,37,626/- 2010-11
Act, 1944
Central Excise Interest on 10,03,041/- 2009-10
Act, 1944 Service Tax
Penalty 2,000/-
Less Recovered
by the 11,60,037/-
the central
Excise along
with interest
& penalty
Central Excise Excise Duties 2,76,589/- 2011-12
Act, 1944
Central Excise Excise Duties 2,36,874/- 2008-09
Act, 1944
Penalty 2,36,874/- to
Less:- 2011-12
Recovered by 1,20,976/-
the Central
1,94,700/-
Excise & balance
to be recovered
along with
interest
Central Excise Excise Duties 1,55,68,226/- 2011-12
Act, 1944
Central Excise Service Tax 6,01,175/- 2008-09
Act, 1944
Penalty 2,000/-
Central Excise Service Tax 23,730/- 2013-14
Act, 1944
Central Excise Excise (Penalty) 1,35,45,628/- 2011-2012
Act, 1944
Less: Pre-deposit 10,15,922/-
@7.5%
Central Excise Service Tax 27,880/- 2014-15
Act, 1944
Name of the Statute Forum where dispute is pending
Central Excise Act, 1944 Commissioner (Appeals),
Central Excise & Custom, Jaipur
Central Excise Act, 1944 CESTAT, New Delhi
Central Excise Act, 1944 Commissioner of Central Excise & Custom,
Jaipur
Central Excise Act, 1944 Commissioner (Appeal), Central Excise &
Customs, Jaipur
Central Excise Act, 1944 Commissioner (Appeals) Central Excise &
Custom, Jaipur
Central Excise Act, 1944 CESTAT, New Delhi
Central Excise Act, 1944 Commissioner (Appeals) Central Excise &
Custom, Jaipur
Central Excise Act, 1944 CESTAT, New Delhi
Central Excise Act, 1944 Commissioner Central Excise & Custom, Jaipur
Central Excise Act, 1944 Commissioner (Appeals) Central Excise &
Custom, Jaipur
Central Excise Act, 1944 CESTAT, New Delhi
Central Excise Act, 1944 Joint Commissioner, Central Excise, Jaipur
Central Excise Act, 1944 CESTAT, New Delhi
Central Excise Act, 1944 CESTAT, New Delhi
Central Excise Act, 1944 Joint Commissioner Central Excise, Jaipur
Central Excise Act, 1944 CESTAT, New Delhi
Central Excise Act, 1944 Commissioner Central Excise Jaipur-I
Central Excise Act, 1944 CESTAT, New Delhi
Central Excise Act, 1944 Asstt. Commissioner Central Excise, Bhiwadi.
Central Excise Act, 1944 Joint Commissioner Central Excise, Bhiwadi.
Central Excise Act, 1944 Commissioner of Central Excise Jaipur-I
Central Excise Act, 1944 Commissioner (Appeals), Central Excise,Jaipur
Central Excise Act, 1944 Assistant Commissioner, Central Excise,
Bhiwadi
Central Excise Act, 1944 CESTAT, New Delhi
Central Excise Act, 1944 Superintendent, Central Excise, Bhiwadi
c. According to the information and explanations given to us, company
has no amount which required to be transferred to investor education
and protection fund as on 31st March 2015 in accordance with the
relevant provisions of the Companies Act 1956 and rules made there
under.
viii) The Company does not have accumulated losses at the end of the
financial year and it has not incurred cash losses in the current
financial year and in the immediately preceding financial year.
ix) Based on our audit procedures and as per the information and
explanations given by the management, the company has not defaulted in
repayment of dues to financial institutions and banks.
x) In our opinion, the Company has not given any guarantee for loan
taken by others from Bank or Financial Institutions in terms of clause
(x) of the Order.
xi) In our opinion and to the best of our knowledge and belief proceeds
of term loans taken were, prima facie, applied for the purpose it was
obtained.
xii) In our opinion and to the best of our knowledge and belief there
are no fraud noticed by us on or by the company during the year.
For Sharma Goel & Co. LLP
Chartered accountants
FRN: - 000643N
Sd/-
Amar Mittal
Place : New Delhi Partner
Date : 30.05.2015 M. No. 017755
Mar 31, 2014
We have audited the accompanying financial statements of Cords Cable
Industries Limited ("the Company"), which comprise the Balance Sheet as
at March 31,2014, and the Statement of Profit and Loss and Cash Flow
statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance of the Company in accordance with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956 ("the Act") read with commencement notification
dated 12th September, 2013 of the Ministry of Corporate Affairs in
respect of the Companies Act 2013. This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on our judgment, including the assessment of the risks
of material misstatement of the financial statements, whether due to
fraud or error. In making those risk assessments, we consider internal
control relevant to the Company''s preparation and fair presentation of
the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of entity''s internal control. An audit
also includes evaluating the appropriateness of accounting policies
used and the reasonableness of the accounting estimates made by
management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) in the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956 read with
commencement notification dated 12th September, 2013 of the Ministry of
Corporate Affairs in respect of the Companies Act 2013.
e) on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31,2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure to the Auditors'' Report of even date to the members of Cords
Cable Industries Limited, on the financial statements for the year
ended March 31,2014 (Refer to in para 5(1) our report of even date)
Based on the Audit Procedures performed for the purpose of reporting a
true and fair view on the financials statements of the company and
taking into the consideration the information and explanation given to
us and the books of account and other records examined by us in the
normal course of audit, we report that:
i) In respect of Fixed Assets of the Company and in our opinion:
a) The Company has maintained proper records, showing full particulars,
including quantitative details and situation of fixed assets.
b) The Company has a programme of physical verification of its fixed
assets by which they are verified annually. In accordance with this
programme, fixed assets were verified during the year and no
discrepancies were noticed on such verification. In our opinion, the
frequency of physical verification is reasonable having regards to the
size of the company and nature of fixed assets.
c) The company has not disposed off a substantial part of any fixed
assets during the year. Therefore the going concern assumption is not
affected.
ii) In respect of Inventories of the Company, in our opinion:
a) Inventories (excluding stocks with third parties) have been
physically verified by management during the year and the frequency of
verification is reasonable.
b) The procedures for physical verification of inventory followed by
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
c) The company is maintaining proper records of inventory. No material
discrepancies were noticed on physical verification of inventory.
iii) The company has not granted any loan to companies, firms or other
parties covered in the register maintained under section 301 of the
Companies Act, 1956. Also, the Company has not taken loan from
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
iv) In our opinion, there is an adequate internal control system
commensurate with the size of the Company and nature of its business
with regard to purchase of inventory, fixed assets and sale of goods &
services. We have not observed any major weakness in the internal
control system during the course of the audit.
v) a) In our opinion, the particulars of all contracts or arrangements
that need to be entered into the register maintained under section 301
of the act have been so entered.
b) In respect of transactions made in pursuance of such contracts and
arrangements with parties with whom transactions exceeding value of
Rupees Five Lakhs have been entered during the financial year are
reasonable having regard to prevailing market price at relevant time.
For price justification reliance is placed on the information and
explanation given by management.
vi) In our opinion, the Company has not accepted any deposits from the
public within the meaning of section 58A and section 58AA or any other
relevant provisions of the Companies Act 1956 and the Companies
(Acceptance of Deposits) Rules, 1975 with regard to the deposits
accepted from the public. No order has been passed by the Company Law
Board or National Company Law Tribunal or Reserve Bank of India or any
Court or any other Tribunal.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii) We are of the opinion that prima facie, the cost records and
accounts prescribed by Central Government under section 209(1 )(d) of
the Companies Act, 1956 have been made and maintained. We have not,
however, carried out a detailed examination of the records with a view
to determining whether they are accurate or complete.
ix) In respect of disputed and undisputed Statutory Dues of the Company
and according to information and explanations given to us and on the
basis of our examination of the records of the Company.
a. Amounts deducted / accrued in the books of accounts in respect of
Provident Fund, Investor Education and Protection Fund, Employees''
State Insurance, Income tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty and any other material Statutory Dues have
generally been regularly deposited during the year by the Company with
the appropriate authorities, to the extent applicable. There were no
dues on account of Cess under Section 441A of the Companies Act, 1956
since the aforesaid section has not yet been made effective by the
Central Government. According to the information and explanations given
to us, no undisputed amounts payable in respect of aforesaid dues were
in arrears, as at March 31, 2014 for a period of more than six months
from the date they became payable.
b. According to the information and explanations given to us, detail of
dues of Sales Tax, Service Tax & Excise duty which have not been
deposited on account of a disputes are given below:
Name of the Nature of dues Amount Period to which
Statute (Rs) the amount relates
Central Excise Excise Duties
Act, 1944
Excise Duties 359716/- 2005-06
Penalty 75000/-
Less: Pre-Deposited 100000/-
Excise Duties 330225/- 2004-05
Penalty 330225/-
Less: Pre-Deposited 150000/-
Excise Duties 162054/- 2005-06
Penality 162054/-
Excise Duties 176867/- 2005-06
Penalty 50000/-
Excise Duties 161169/- 2006-07
Penalty 161169/-
Excise Duties 3159709/- 2006-07
Excise Duties 5783018/- 2006-07
Excise Duties 260222/- 2006-07
Penalty 50000/-
Excise Duties 746412/- 2004-05
Penalty 746412/-
Less: .Pre-Deposited 350000/-
Excise Duties 6024771/- 2007-08
Excise Duties 67441/- 2007-08
Excise Duties 612151/- 2007-08
Excise Duties 2281042/- 2007-08
Excise Duties 5437100/- 2008-09
Excise Duties 1309877/- 2008-09
Excise Duties 15271114/- 2009-10
Excise Duties 15337611/- 2009-10
Excise Duties 1105939/- 2009-10
Recovered by 1616762/-
Central Excise
along with Int. & penalty
Excise Duties 337944/- 2010-11
Penalty 25000/-
Recovered by 362944/-
Central Excise
along with Int. & penalty
Excise Duties 406601/- 2010-11
Excise Duties 18237626/- 2010-11
Interest on 1003041/- 2009-10
Service Tax
Penalty 2000/-
Recovered by 1160037/-
Central Excise
along with Int. & penality
Excise Duties 276589/- 2011-12
Excise Duties 236874/- 2008-09
Penalty 236874/- to 2011-12
Less: 120976/-
Recovered by 194700/-
Central Excise & balance
to be recovered along with Interest
Excise Duties 15568226/- 2011-12
Service Tax 601175/- 2008-09
Penalty 2000/-
Service Tax 23730/- 2013-14
Excise 1588525/- 2013-14
Excise 13545628/- 2011-12
(Penalty)
Name of the Forum where dispute
Statute is pending
Central Excise
Act, 1944
Commissioner (Appeals),Central
Excise & Custom, Jaipur
CESTAT, New Delhi
CESTAT, New Delhi
Commissioner of Central Excise
& Custom, Jaipur
Commissioner (Appeals), Central
Excise & Custom, Jaipur
Commissioner (Appeals), Central
Excise & Custom, Jaipur
CESTAT, New Delhi
Commissioner (Appeals), Central
Excise & Custom, Jaipur
CESTAT, New Delhi
CESTAT, New Delhi
CESTAT, New Delhi
Commissioner Central Excise &
Custom, Jaipur
Commissioner (Appeals), Central
Excise & Custom, Jaipur
CESTAT, New Delhi
Joint Commissioner, Central
Excise, jaipur
CESTAT, New Delhi
CESTAT, New Delhi
Joint Commissioner, Central
Excise, Jaipur
Asst Commissioner, Central
Excise, Bhiwadi
Asst Commissioner, Central
Excise, Bhiwadi
Commissioner of Central Excise,
Jaipur-I
Commissioner of Central Excise,
Jaipur-I
Asst Commissioner, Central
Excise, Bhiwadi
Asst Commissioner, Central
Excise, Bhiwadi
Commissioner of Central Excise,
Jaipur-I
Addl. Commissioner, Central
Excise, Jaipur
Assistant. Commissioner, Central
Excise, Bhiwadi
Addl. Commissioner Central
Excise, Jaipur
Commissioner Central Excise,
Jaipur
x) The Company does not have accumulated losses at the end of the
financial year and it has not incurred cash losses in the current and
immediately preceding financial year.
xi) Based on our audit procedures and as per the information and
explanations given by the management, there are no dues to financial
institutions or banks or debenture holders.
xii) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Accordingly, the provisions of paragraph 4 clause (xii) of the Order
are not applicable.
xiii) The Company is not a Chit Fund or a Nidhi/ Mutual Benefit fund/
Society. Accordingly, the provisions of paragraph 4 clause (xiii) of
the Order are not applicable.
xiv) In our opinion the company is not dealing or trading in shares,
debentures, securities and other investments. Accordingly, the
provisions of paragraph 4 clause (xiv) of the Order are not applicable.
xv) In our opinion, the Company has not given any guarantee in terms of
paragraph 4 clause (xv).
xvi) In our opinion and to the best of our knowledge and belief,
proceeds of term loans taken were, prima facie, applied for the purpose
it was obtained.
xvii) In our opinion and on an overall examination of the Balance Sheet
of the Company, funds raised on short- term basis, prima facie, have
not been used for long term investment by the company.
xviii) In our opinion, the Company has not made any preferential
allotment of shares to parties or companies covered in the register
maintained under Section 301 of the Companies Act, 1956.
xix) In our opinion and according to the records examined by us, no
debentures were issued during the year.
xx) The Company has not raised any monies by way of public issue during
the year. Accordingly, the provisions of paragraph 4 clause (xx) of the
Order are not applicable.
xxi) In our opinion, no material fraud on or by the company has been
noticed or reported during the period covered in our audit.
For Sharma Goel & Co. LLP
Chartered Accountants
(FRN: 000643N)
Sd/-
Place: New Delhi Amar Mittal
Date: 30th May, 2014 Partner
M.No.: 017755
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Cords Cable
Industries Limited ("the Company"), which comprise the Balance Sheet as
at March 31, 2013, and the Statement of Profit and Loss and Cash Flow
statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance of the Company in accordance with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956 ("the Act"). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on our judgment, including the assessment of the risks
of material misstatement of the financial statements, whether due to
fraud or error. In making those risk assessments, we consider internal
control relevant to the Company''s preparation and fair presentation of
the financial statements in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
b) in the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure to the Auditors'' Report of even date to the members of Cords
Cable Industries Limited, on the financial statements for the year
ended March 31, 2013 (Refer to in our report of even date)
Based on the Audit Procedures performed for the purpose of reporting a
true and fair view on the financial statements of the company and
taking into the consideration the information and explanation given to
us and the books of account and other records examined by us in the
normal course of audit, we report that:
i) In respect of Fixed Assets of the Company and in our opinion :
a) The Company has maintained proper records, showing full particulars,
including quantitative details and situation of fixed assets.
b) The Company has a programme of physical verification of its fixed
assets by which they are verified annually. In accordance with this
programme, fixed assets were verified during the year and no
discrepancies were noticed on such verification. In our opinion, the
frequency of physical verification is reasonable having regards to the
size of the company and nature of fixed assets.
c) The company has not disposed off a substantial part of any fixed
assets during the year. Therefore the going concern assumption is not
affected.
ii) In respect of Inventories of the Company, in our opinion :
a) Inventories (excluding stocks with third parties) have been
physically verified by management during the year and the frequency of
verification is reasonable.
b) The procedures for physical verification of inventory followed by
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
c) The company is maintaining proper records of inventory. No material
discrepancies were noticed on physical verification of inventory.
iii) The company has not granted any loan to companies, firms or other
parties covered in the register maintained under section 301 of the
Companies Act, 1956. Also, the Company has not taken loan from
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
iv) In our opinion, there is an adequate internal control system
commensurate with the size of the Company and nature of its business
with regard to purchase of inventory, fixed assets and sale of goods &
services. We have not observed any major weakness in the internal
control system during the course of the audit.
v) a) In our opinion, the particulars of all contracts or arrangements
that need to be entered into the register maintained under section 301
of the act have been so entered.
b) In respect of transactions made in pursuance of such contracts and
arrangements with parties with whom transactions exceeding value of
Rupees Five Lakhs have been entered during the financial year are
reasonable having regard to prevailing market price at relevant time.
For price justification reliance is placed on the information and
explanation given by management.
vi) In our opinion, the Company has not accepted any deposits from the
public within the meaning of section 58A and section 58AA or any other
relevant provisions of the Act and the Companies (Acceptance of
Deposits) Rules, 1975 with regard to the deposits accepted from the
public. No order has been passed by the Company Law Board or National
Company Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii) We are of the opinion that, prima facie, the cost records and
accounts prescribed by Central Government under section 209(1)(d) of
the Companies Act, 1956 have been made and maintained. We have not,
however, carried out a detailed examination of the records with a view
to determining whether they are accurate or complete.
ix) In respect of disputed and undisputed Statutory Dues of the Company
and according to information and explanations given to us and on the
basis of our examination of the records of the Company.
a. Amounts deducted / accrued in the books of accounts in respect of
Provident Fund, Investor Education and Protection Fund, Employees''
State Insurance, Income tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty and any other material Statutory Dues have
generally been regularly deposited during the year by the Company with
the appropriate authorities, to the extent applicable. There were no
dues on account of Cess under Section 441A of the Companies Act, 1956
since the aforesaid section has not yet been made effective by the
Central Government. According to the information and explanations
given to us, no undisputed amounts payable in respect of aforesaid dues
were in arrears, as at March 31, 2013 for a period of more than six
months from the date they became payable.
b. According to the information and explanations given to us, detail
of dues of Sales Tax, Service Tax & Excise duty which have not been
deposited on account of a disputes are given below:
Name of the Nature of dues Amount Period to which
Statute (Rs) the amount relates
Central Excise Excise Duties
Act, 1944
Excise Duties 359716/- 2005-06
Penalty 75000/-
Less : Pre-Deposited 100000/-
Excise Duties 330225/- 2004-05
Less : Pre-Deposited 150000/-
Excise Duties 162054/- 2005-06
Penality 162054/-
Excise Duties 176867/- 2005-06
Penalty 50000/-
Excise Duties 161169/- 2006-07
Penalty 161169/-
Excise Duties 3159709/- 2006-07
Excise Duties 5783018/- 2006-07
Excise Duties 260222/- 2006-07
Penalty 50000/-
Excise Duties 81681/- 2006-07
Excise Duties 746412/- 2004-05
Penalty 746412/-
Less : Pre-Deposited 350000/-
Excise Duties 6024771/- 2007-08
Excise Duties 67441/- 2007-08
Excise Duties 612151/- 2007-08
Excise Duties 2281042/- 2007-08
Excise Duties 5437100/- 2008-09
Excise Duties 1309877/- 2008-09
Excise Duties 15271114/- 2009-10
Excise Duties 15337611/- 2009-10
Excise Duties 1105939/- 2009-10
Excise Duties 337944/- 2010-11
Penalty 25000/-
Excise Duties 406601/- 2010-11
Excise Duties 18237626/- 2010-11
Interest on 1003041/- 2009-10
Service Tax
Penalty 2000/-
Excise Duties 276589/- 2011-12
Excise Duties 236874/- 2008-09
to 2011-12
Excise Duties 15568226/- 2011-12
Sales Tax Act Service Tax 601175/- 2008-09
Name of the Forum where dispute
Statute is pending
Central Excise
Act, 1944
Commissioner (Appeals),Central
Excise & Custom, Jaipur
CESTAT, New Delhi
CESTAT, New Delhi
Commissioner of Central Excise
& Custom, Jaipur
Commissioner (Appeals), Central
Excise & Custom, Jaipur
Commissioner (Appeals), Central
Excise & Custom, Jaipur
CESTAT, New Delhi
Commissioner (Appeals), Central
Excise & Custom, Jaipur
Asst. Commissioner Central
Excise, Bhiwadi
CESTAT, New Delhi
CESTAT, New Delhi
CESTAT, New Delhi
Commissioner Central Excise &
Custom, Jaipur
Commissioner (Appeals), Central
Excise & Custom, Jaipur
CESTAT, New Delhi
Joint Commissioner, Central
Excise, jaipur
CESTAT, New Delhi
CESTAT, New Delhi
Joint Commissioner, Central
Excise, Jaipur
Asst Commissioner, Central
Excise, Bhiwadi
Asst Commissioner, Central
Excise, Bhiwadi
Commissioner of Central Excise,
Jaipur-I
Commissioner of Central Excise,
Jaipur-I
Asst Commissioner, Central
Excise, Bhiwadi
Asst Commissioner, Central
Excise, Bhiwadi
Commissioner of Central Excise,
Jaipur-I
Sales Tax Act Addl. Commissioner, Central &
Excise, Jaipur
x) The Company does not have accumulated losses at the end of the
financial year and it has not incurred cash losses in the current and
immediately preceding financial year.
xi) Based on our audit procedures and as per the information and
explanations given by the management, there are no dues to financial
institutions or banks or debenture holders.
xii) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Accordingly, the provisions of paragraph 4 clause (xii) of the Order
are not applicable.
xiii) The Company is not a Chit Fund or a Nidhi/ Mutual Benefit fund/
Society. Accordingly, the provisions of paragraph 4 clause (xiii) of
the Order are not applicable.
xiv) In our opinion the company is not dealing or trading in shares,
debentures, securities and other investments. Accordingly, the
provisions of paragraph 4 clause (xiv) of the Order are not applicable.
xv) In our opinion, the Company has not given any guarantee in terms of
paragraph 4 clause (xv).
xvi) In our opinion and to the best of our knowledge and belief,
proceeds of term loans taken were, prima facie, applied for the purpose
it was obtained.
xvii) In our opinion and on an overall examination of the Balance Sheet
of the Company, funds raised on short-term basis, prima facie, have not
been used for long term investment by the company.
xviii) In our opinion, the Company has not made any preferential
allotment of shares to parties or companies covered in the register
maintained under Section 301 of the Companies Act, 1956.
xix) In our opinion and according to the records examined by us, no
debentures were issued during the year.
xx) The Company has not raised any monies by way of public issue during
the year. Accordingly, the provisions of paragraph 4 clause (xx) of the
Order are not applicable.
xxi) In our opinion, no material fraud on or by the Company has been
noticed or reported during the period covered in our audit.
For SHARMA GOEL & CO.
Chartered Accountants
FRN: 000643N
Place : New Delhi Amar Mittal
Date : May 29, 2013 Partner
M.No. : 017755
Mar 31, 2012
We have audited the attached Balance Sheet of Cords Cable Industries
Limited, as at 31st March 2012, and also the Profit & Loss Account and
Cash Flow Statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditor's Report) Order, 2003, as further
amended by the Companies (Auditor's Report) (Amendment) Order, 2004
issued by the Central Government of India in terms of Section 227(4A)
of the Companies Act, 1956, we enclose in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the said Order to the
extent applicable to the Company.
Further to our comments in the Annexure referred to above, we report
that:
i) We have obtained all information and explanations which to the best
of our knowledge and belief were necessary for the purpose of the
audit;
ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
iv) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956, to the
extent applicable; and
v) On the basis of written representation received from the Directors
of the Company as on 31st March 2012 and taken on record by the Board
of Directors, we report that none of the Directors are disqualified
from being appointed as Director of the Company under clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
vi) In our opinion, and to the best our information and according to
the explanations given to us, the said financial statements give the
information required by the Companies Act, 1956, in a manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
a. in the case of the Balance sheet, of the state of affairs of the
Company as at 31st March 2012;
b. in the case of the Profit and Loss Account, of the profit for the
year ended on that date.
c. in the case of the cash flow statement, of the cash flows for the
year ended on that date.
Annexure to Auditor's Report.
With reference to the Annexure referred to in the Auditor's report, to
the members of the company on the financial statements for the period
ended 31st March 2012, we report that:
1. In respect of its fixed assets:
a) The company has maintained proper records of fixed assets showing
full particulars, including quantitative details and situation of fixed
assets.
b) All the assets have been physically verified by the Management
during the year according to a regular program of verification, which
in our opinion is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies have been
observed on such verification.
c) During the year, the company has not disposed off substantial part
of fixed assets.
2. In respect of its inventories:
a) The inventory (excluding stocks with third parties) has been
physically verified by the management during the year. In respect of
inventory lying with third parties, these have substantially been
confirmed by them. In our opinion, the frequency of verification is
reasonable.
b) In our opinion, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventory and
no material discrepancies were noticed on verification between the
physical stocks and the book records.
3. As informed to us, the Company has neither granted nor taken any
loans, secured or unsecured, to companies, firms or other parties
covered in the register maintained under section 301 of the Companies
Act, 1956. Accordingly clause 4(iii) of the Companies (Auditor's
Report) order, 2003 as amended by the Companies (Auditor's Report)
(Amendment) Order, 2004 is not applicable to the company for the
current year.
4. In our opinion, and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business, for the purchase of inventory and fixed assets and for sale
of goods and services. During the course of our audit, we have not
observed any instance of major weaknesses in internal controls.
5. In respect of the contracts or arrangements referred to in Section
301 of the companies Act, 1956:
a) To the best of our knowledge and belief and according to the
information and explanation given to us, we are of the opinion that the
particulars of contracts or arrangements, that need to be entered into
the register maintained under Section 301 of the Companies Act, 1956
have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transaction made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public within
the meaning of Section 58A and 58AA of the Companies Act, 1956 and the
rules framed there under.
7. The Company has an internal audit system, which in our opinion is
commensurate with the size and nature of its business.
8. We are of the opinion that prima facie, the cost record and
accounts prescribed by the Central Government under Section 209 (I) (d)
of the Companies Act, 1956 have been made and maintained. We have not,
however, carried out a detailed examination of the records with a view
to determining whether they are accurate or complete.
9. In respect of statutory dues:
a) The company is generally regular in depositing undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance. According to the information and
explanations given to us and on the basis of our examination of the
records of the Company, amounts deducted / accrued in the books of
account in respect of undisputed statutory dues including Income Tax
and other material statutory dues have generally been regularly
deposited during the year by the company with the appropriate
authorities. As explained to us, the Company did not have any dues on
account of Provident Fund, Investor Education and Protection Fund,
Employee's State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty and Excise Duty. There were no dues on account of Cess
under Section 441A of the Companies Act, 1956 since the aforesaid
section has not yet been made effective by the Central Government.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Investor
Education and Protection Fund, Employees State Insurance, Income Tax,
Sales-Tax, Wealth-Tax, Service Tax, Custom Duty, Excise Duty, Cess and
any other statutory dues, as at March 31, 2012 for a period of more
than six months from the date they became payable.
b) According to information and explanations given to us, details of
dues of Excise Duty, Service Tax and Sales Tax which have not been
deposited on account of a dispute are given below:
Name of the Nature of
dues Amount Period to
which Forum where
dispute
Statute (Rs) the amount
relates is pending
Central
Excise Excise
Duties 359716/- 2005-06 Commissioner
(Appeals),Central
Act, 1944 Penalty 75000/- Excise & Custom,
Jaipur
Excise
Duties 330225/- 2004-05 CESTAT, New Delhi
Excise
Duties 162054/- 2005-06 CESTAT, New Delhi
Penalty 162054/-
Excise
Duties 176867/- 2005-06 Commissioner of
Central Excise
Penalty 50000/- & Custom, Jaipur
Excise
Duties 161169/- 2006-07 Commissioner
(Appeals), Central
Penalty 161169/- Excise & Custom,
Jaipur
Excise
Duties 3159709/- 2006-07 Commissioner
(Appeals), Central
Excise & Custom,
Jaipur
Excise
Duties 5783018/- 2006-07 CESTAT, New Delhi
Excise
Duties 260222/- 2006-07 Commissioner
(Appeals), Central
Penalty 50000/- Excise & Custom,
Jaipur
Excise
Duties 81681/- 2006-07 Asst. Commissioner
Central
Excise, Bhiwadi
Excise
Duties 746412/- 2004-05 CESTAT, New Delhi
Excise
Duties 6024771/- 2007-08 CESTAT, New Delhi
Excise
Duties 67441/- 2007-08 CESTAT, New Delhi
Excise
Duties 612151/- 2007-08 Commissioner
Central Excise &
Custom, Jaipur
Excise
Duties 2281042/- 2007-08 Commissioner
(Appeals), Central
Excise & Custom,
Jaipur
Excise
Duties 5437100/- 2008-09 CESTAT, New Delhi
Excise
Duties 1309877/- 2008-09 Joint Commissioner,
Central
Excise, jaipur
Excise
Duties 15271114/- 2009-10 CESTAT, New Delhi
Excise
Duties 15337611/- 2009-10 CESTAT, New Delhi
Excise
Duties 1105939/- 2009-10 Joint Commissioner,
Central
Excise, Jaipur
Excise
Duties 337944/- 2010-11 Asst Commissioner,
Central
Excise, Bhiwadi
Excise
Duties 406601/- 2010-11 Asst Commissioner,
Central
Excise, Bhiwadi
Excise
Duties 18237626/- 2010-11 Commissioner of
Central Excise,
Jaipur-I
Interest
on 1003041/- 2009-10 Commissioner of
Central Excise,
Service Tax Jaipur-I
Excise
Duties 276589/- 2011-12 Asst Commissioner,
Central
Excise, Bhiwadi
Excise
Duties 236874/- 2008-09 Asst Commissioner,
Central
to 2011-12 Excise, Bhiwadi
Excise
Duties 15568226/- 2011-12 Commissioner of
Central Excise,
Jaipur-I
Sales
Tax Act Sales Tax 7232954/- 2008-09 Addl. Commissioner
& Special
Penalty 1954386/- 2008-09 Joint Commissioner
Interest 565697/- 2008-09
10. The company does not have accumulated losses at the end of the
financial year and it has not incurred cash losses in the current and
immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to bank
and financial institution. The company has not borrowed any sums by way
of debentures.
12. According to the information and explanations given to us and
based on the documents and records produced to us, the company has not
granted any loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
13. In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society.
14. In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly the
provisions of paragraph 4(xiv) of the Order are not applicable.
15. The company has not given any guarantee for loans taken by others
from bank or financial institutions.
16. In our opinion and according to the information and explanations
given to us, the term loans taken by the company were applied for the
purpose for which the loans were obtained.
17. According to the information and explanations given to us, and on
an overall examination of the balance sheet of the company, we are of
opinion that there are no funds raised on short- term basis that have
been used for long-term investment.
18. According to information and explanation given to us, the company
has made preferential allotment of preference shares to parties covered
in the register maintained under section 301 of the Company's Act, 1956
and the price at which such shares have been issued is not prejudicial
to the interest of the company.
19. The company has not issued any debentures. Accordingly, paragraph
4(xix) of the Order is not applicable.
20. The company has not raised any money by way of public issue during
the year. Accordingly Paragraph 4(xx) of the order is not the
applicable.
21. During the course of our examination of the books and records of
the Company, and according to the information and explanations given to
us by the management, we report that no material fraud on or by the
Company has been noticed or reported during the course of our audit.
For SHARMA GOEL & CO.
Chartered Accountants
(Firm's Registration No.000643N)
(CA.Amar Mittal)
Partner
Membership No.: 17755
Place : New Delhi
Dated : May 28, 2012
Mar 31, 2011
We have audited the attached Balance Sheet of CORDS CABLE INDUSTRIES
LIMITED, as at March 31, 2011, and also the Profit & Loss Account and
Cash Flow Statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditor's Report) Order, 2003, as further
amended by the Companies (Auditor's Report) (Amendment) Order, 2004
issued by the Central Government of India in terms of Section 227(4A)
of the Companies Act, 1956, we enclose in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the said Order to the
extent applicable to the Company.
Further to our comments in the Annexure referred to above, we report
that:
i) We have obtained all information and explanations which to the best
of our knowledge and belief were necessary for the purpose of the
audit;
ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
iv) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956, to the
extent applicable; and
v) On the basis of written representation received from the Directors
of the Company as on March 31, 2011 and taken on record by the Board of
Directors, we report that none of the Directors are disqualified from
being appointed as Director of the Company under clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
vi) In our opinion, and to the best our information and according to
the explanations given to us, the said financial statements give the
information required by the Companies Act, 1956, in a manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
a. in the case of the Balance sheet, of the state of affairs of the
Company as at March 31, 2011;
b. in the case of the Profit and Loss Account, of the profit for the
year ended on that date.
c. in the case of the cash flow statement, of the cash flows for the
year ended on that date.
Annexure to Auditor's Report.
With reference to the Annexure referred to in the Auditor's report, to
the members of the company on the financial statements for the period
ended March 31, 2011, we report that:
1. In respect of its fixed assets:
a) The company has maintained proper records of fixed assets showing
full particulars, including quantitative details and situation of fixed
assets.
b) All the assets have been physically verified by the Management
during the year according to a regular program of verification, which
in our opinion is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies have been
observed on such verification.
c) During the year, the company has not disposed off substantial part
of fixed assets.
2. In respect of its inventories:
a) The inventory (excluding stocks with third parties) has been
physically verified by the management during the year. In respect of
inventory lying with third parties, these have substantially been
confirmed by them. In our opinion, the frequency of verification is
reasonable.
b) In our opinion, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventory and
no material discrepancies were noticed on verification between the
physical stocks and the book records.
3. As informed to us, the Company has neither granted nor taken any
loans, secured or unsecured, to companies, firms or other parties
covered in the register maintained under section 301 of the Companies
Act, 1956. Accordingly clause 4(iii) of the Companies (Auditor's
Report) order, 2003 as amended by the Companies (Auditor's Report)
(Amendment) Order, 2004 is not applicable to the company for the
current year.
4. In our opinion, and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business, for the purchase of inventory and fixed assets and for sale
of goods and services. During the course of our audit, we have not
observed any instance of major weaknesses in internal controls.
5. In respect of the contracts or arrangements referred to in Section
301 of the companies Act, 1956:
a) To the best of our knowledge and belief and according to the
information and explanation given to us, we are of the opinion that the
particulars of contracts or arrangements, that need to be entered into
the register maintained under Section 301 of the Companies Act, 1956
have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transaction made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public within
the meaning of Section 58A and 58AA of the Companies Act, 1956 and the
rules framed there under.
7. The Company has an internal audit system, which in our opinion is
commensurate with the size and nature of its business.
8. We are of the opinion that prima facie, the cost record and
accounts prescribed by the Central Government under Section 209 (I) (d)
of the Companies Act, 1956 have been made and maintained. We have not,
however, carried out a detailed examination of the records with a view
to determining whether they are accurate or complete.
9. In respect of statutory dues:
a) The company is generally regular in depositing undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance. According to the information and
explanations given to us and on the basis of our examination of the
records of the Company, amounts deducted / accrued in the books of
account in respect of undisputed statutory dues including Income Tax
and other material statutory dues have generally been regularly
deposited during the year by the company with the appropriate
authorities. As explained to us, the Company did not have any dues on
account of Provident Fund, Investor Education and Protection Fund,
Employee's State Insurance, Sales Tax, Wealth Tax, Service Tax, Custom
Duty and Excise Duty. There were no dues on account of Cess under
Section 441A of the Companies Act, 1956 since the aforesaid section has
not yet been made effective by the Central Government. According to the
information and explanations given to us, no undisputed amounts payable
in respect of Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income Tax, Sales-Tax, Wealth-Tax, Service
Tax, Custom Duty, Excise Duty, Cess and any other statutory dues, as at
March 31, 2011 for a period of more than six months from the date they
became payable.
b) According to information and explanations given to us, details of
dues of Excise Duty and Sales Tax which
have not been deposited on account of a dispute are given below:
Name of the Nature of dues Amount Period to which the
Statute (Rs) amount relates
Central Excise Excise Duties 359716/- 2005-06
Act,1944 Penalty 75000/-
Excise Duties 330225/- 2004-05
Excise Duties 162054/- 2005-06
Penality 162054/-
Excise Duties 176867/- 2005-06
Penalty 50000/-
Excise Duties 161169/- 2006-07
Penalty 161169/-
Excise Duties 3159709/- 2006-07
Excise Duties 5783018/- 2006-07
Excise Duties 260222/- 2006-07
Penalty 50000/-
Excise Duties 81681/- 2006-07
Excise Duties 746412/- 2004-05
Excise Duties 6024771/- 2007-08
Excise Duties 67441/- 2007-08
Excise Duties 612151/- 2007-08
Excise Duties 2281042/- 2007-08
Excise Duties 5437100/- 2008-09
Excise Duties 1309877/- 2008-09
Excise Duties 15271114/- 2009-10
Excise Duties 15337611/- 2009-10
Excise Duties 1105939/- 2009-10
Excise Duties 337944/- 2010-11
Excise Duties 406601/- 2010-11
Excise Duties 18237626/- 2010-11
Sales Tax Act Sales Tax 7232954/- 2008-09
Penalty 1954386/- 2008-09
Interest 565697/- 2008-09
Name of the Forum where dispute is
Statute pending
Central Excise Commissioner (Appeals),Central
Act,1944 Excise & Custom, Jaipur
CESTAT, New Delhi
CESTAT, New Delhi
Commissioner of Central Excise &
Custom, Jaipur
Commissioner (Appeals),Central
Excise & Custom, Jaipur
Commissioner (Appeals),Central
Excise & Custom, Jaipur
CESTAT, New Delhi
Commissioner (Appeals),Central
Excise & Custom, Jaipur
Asst. Commissioner Central Excise,
Bhiwadi
CESTAT, New Delhi
CESTAT, New Delhi
CESTAT, New Delhi
Commissioner of Central Excise &
Custom, Jaipur
Commissioner (Appeals),Central
Excise & Custom, Jaipur
CESTAT, New Delhi
Joint Commissioner, Central Excise,
Jaipur
CESTAT, New Delhi
CESTAT, New Delhi
Joint Commissioner, Central Excise,
Jaipur
Asst. Commissioner Central Excise,
Bhiwadi
Asst. Commissioner Central Excise,
Bhiwadi
Commissioner of Central Excise,
Jaipur-I
Sales Tax Act Addl. Commissioner & Special
Joint Commissioner
10. The company does not have accumulated losses at the end of the
financial year and it has not incurred cash losses in the current and
immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to bank
and financial institution. The company has not borrowed any sums by way
of debentures.
12. According to the information and explanations given to us and
based on the documents and records produced to us, the company has not
granted any loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
13. In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society.
14. In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly the
provisions of paragraph 4(xiv) of the Order are not applicable.
15. The company has not given any guarantee for loans taken by others
from bank or financial institutions.
16. In our opinion and according to the information and explanations
given to us, the term loans taken by the company were applied for the
purpose for which the loans were obtained.
17. According to the information and explanations given to us, and on
an overall examination of the balance sheet of the company, we are of
opinion that there are no funds raised on short-term basis that have
been used for long-term investment.
18. According to information and explanation given to us, the company
has not made preferential allotment of shares to parties covered in the
register maintained under section 301 of the Companies Act,1956.
19 The company has not issued any debentures. Accordingly, paragraph
4(xix) of the Order is not applicable.
20 The management has disclosed the end use of money raised by public
issue in note 16 of Schedule 18(C) and the same has been verified by
us.
21. During the course of our examination of the books and records of
the Company, and according to the information and explanations given to
us by the management, we report that no material fraud on or by the
Company has been noticed or reported during the course of our audit.
For SHARMA GOEL & CO.
Chartered Accountants
(Firm's Registration No.000643N)
(CA.Amar Mittal)
Partner
Membership No.: 17755
Place : New Delhi
Date : May 28, 2011
Mar 31, 2010
We have audited the attached Balance Sheet of M/S. CORDS CABLE
INDUSTRIES LTD. as at 31st March 2010, the Profit & Loss Account and
Cash Flow Statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditors Report) Order, 2003, as further
amended by the Companies (Auditors Report) (Amendment) Order, 2004
issued by the Central Government of India in terms of Section 227(4A)
of the Companies Act 1956, we enclose in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the said Order to the
extent applicable to the Company.
Further to our comments in the Annexure referred to above, we report
that:
i) We have obtained all information and explanations which to the best
of our knowledge and belief were necessary for the purpose of the audit;
ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of those
books;
iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
iv) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement comply with the Accounting Standards referred to in sub-
section (3C) of Section 211 of the Companies Act, 1956, to the extent
applicable; and
v) On the basis of written representation received from the Directors
of the Company as on 31st March 2010 and taken on record by the Board of
Directors, we report that none of the Directors are disqualified from
being appointed as Director of the Company under clause (g) of sub-
section (1) of section 274 of the Companies Act, 1956
vi) In our opinion, and to the best our information and according to
the explanations given to us, the said financial statements give the
information required by the Companies Act 1956, in a manner so required
and give a true and fair view in conformity with the accounting
principles generally accepted in India:
a. in the case of the Balance sheet, of the state of affairs of the
Company as at 31st March 2010;
b. in the case of the Profit and Loss Account, of the profit for the
year ended on that date.
c. in the case of the cash flow statement, of the cash flows for the
year ended on that date.
Annexure to Auditors Report.
With reference to the Annexure referred to in the Auditors report, to
the members of the company on the financial statements for the period
ended 31st March 2010, we report that:
1. a) The company has maintained proper records of fixed assets
showing full particulars, including quantitative details and situation
of fixed assets.
b) All the assets have been physically verified by the Management
during the year according to a regular program of verification which,
in our opinion, is reasonable having regard to the size of the company
and the nature of its assets. No discrepancies have been observed on
such verification.
c) During the year, the company has not disposed off substantial part
of fixed assets.
2. a) The inventory (excluding stocks with third parties) has been
physically verified by the management during the year. In respect of
inventory lying with third parties, these have substantially been
confirmed by them. In our opinion, the frequency of verification is
reasonable.
b) In our opinion, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventory and
no discrepancies were noticed on verification between the physical
stocks and the book records.
3. As informed to us, the Company has neither granted nor taken any
loans, secured or unsecured, to companies, firms or other parties
covered in the register maintained under section 301 of the Companies
Act, 1956. Accordingly clause 4(iii) of the Companies (Auditors
Report) order, 2003 as amended by the Companies (Auditors Report)
(Amendment) Order, 2004 are not applicable to the company for the
current year.
4. In our opinion, and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business, for the purchase of inventory and fixed assets and for sale
of goods and services. During the course of our audit, we have not
observed any instance of major weaknesses in internal controls.
5. a) To the best of our knowledge and belief and according to the
information and explanation given to us, we are of the
opinion that the particulars of contracts or arrangements, that need to
be entered into the register maintained under Section 301 of the
Companies Act, 1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transaction made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public within
the meaning of Section 58A and 58AA of the Companies Act, 1956 and the
rules framed there under.
7. The Company has an internal audit system, which in our opinion is
commensurate with the size and nature of its business.
8. We are of the opinion that prima facie, the cost record and
accounts prescribed by the Central Government under Section 209 (I) (d)
of the Companies Act, 1956 have been made and maintained. We have not,
however, made a detailed examination of the records with a view to
determining whether they are accurate or complete.
9. a) The company is generally regular in depositing undisputed
statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees State Insurance. According to the
information and explanations given to us and on the basis of our
examination of the records of the Company, amounts deducted / accrued
in the books of account in respect of undisputed statutory dues
including Income Tax and other material statutory dues have generally
been regularly deposited during the year by the company with the
appropriate authorities. As explained to us, the Company did not have
any dues on account of Provident Fund, Investor Education and
Protection Fund Employees State Insurance, Sales Tax, Wealth Tax,
Service Tax, Custom Duty and Excise Duty. There were no dues on account
of Cess under Section 441A of the Companies Act, 1956 since the
aforesaid section has not yet been made effective by the Central
Government. According to the information and explanations given to us,
no undisputed amounts payable in respect of Provident Fund, Investor
Education and Protection Fund, Employees State Insurance, Income tax,
Sales-Tax, Wealth-Tax, Service Tax, Custom Duty, Excise Duty, Cess and
any other statutory dues, as at March 31, 2010 for a period of more
than six months from the date they became payable.
b) According to information and explanations given to us, there are no
such dues of Income Tax/Sales Tax/ Wealth Tax/Service Tax/ Custom Duty/
Excise Duty/Cess which have not been deposited on account of a dispute
except as stated in note 1 of Schedule 18(B).
10. The company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to bank
and financial institution. The company has not borrowed any sums by way
of debentures.
12. According to the information and explanations given to us and
based on the documents and records produced to us, the company has not
granted any loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
13. In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society.
14. In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly the
provisions of paragraph 4(xiv) of the Order is not applicable.
15. The company has not given any guarantee for loans taken by others
from bank or financial institutions.
16. In our opinion and according to the information and explanations
given to us, the term loan taken by the company was applied for the
purpose for which the loan was obtained.
17. According to the information and explanations given to us, and on
an overall examination of the balance sheet of the company in our
opinion, there are no funds raised on short-term basis, which have been
used for long-term investment.
18. According to information and explanation given to us, the company
has not made preferential allotment of shares to parties covered in the
register maintained under section 301 of the Companies Act1956.
19 The company has not issued any debentures. Accordingly, paragraph
4(xix) of the Order is not applicable.
20 The management has disclosed the end use of money raised by public
issue in note 15 of Schedule 18(C) and the same has been verified by
us.
21 During the course of our examination of the books and records of the
Company, and according to the information and explanations given to us
by the management, we report that no fraud on or by the Company has
been noticed or reported during the course of our audit.
For SHARMA GOEL&CO.
Chartered Accountants
(CA.Amar Mittal)
Place: New Delhi Partner
Date: 29-05-2010 Membership no.17755
Firms Registration No.000643N