Mar 31, 2015
We have audited the accompanying standalone financial statements of
Emgee Cables Limited ("the Company"), which comprise the Balance Sheet
as at 31st March 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management's responsibility for the standalone 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 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.
Auditors' 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 the 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 the accounting policies used and the reasonableness
of the accounting estimates made by the 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 31st March, 2015, and its profit and its cash flow for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Government of India in terms of sub-section (11)
of section 143 of the Act, and on the basis of such checks of the books
and records of the Company as we considered appropriate and according
to the information and explanations given to us, we give in the
Annexure 1 a statement on the matters specified in the paragraphs 3 and
4 of the said Order.
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, 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) Rules, 2014.
(e) On the basis of written representations received from the directors
as at 31st March 2015 and taken on record by the Board of Directors,
none of the directors is disqualified from being appointed as a
director in terms of Section 164(2) of the Act as on 31st March 2015.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements. Refer Note vii (b) to
the financial statements;
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses on
long-term contracts including derivative contracts.
iii. There has been no delay in transferring the amount to Investor
Education and Protection Fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and Rules made there
under by the Company.
ANNEXURE TO THE AUDITORS' REPORT
Annexure referred to in our report of even date to the members of Emgee
Cables Limited on the accounts for the year ended 31st March 2015
(i) (a) The Company has generally maintained proper records showing
full particulars including quantitative details and situation of fixed
assets.
(b) There is a regular programme of physical verification of all fixed
assets, in our opinion, is reasonable having regard to the size of the
Company and the nature of its assets. In our opinion and as per the
information given by the Management, the discrepancies observed were
not material and have been appropriately accounted in the books.
(ii) (a) The inventory has been physically verified by the management
at reasonable intervals.
(b) 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) The Company is maintaining proper records of inventory. No material
discrepancies were noticed on physical verification.
(iii) The Company has not granted any loans, secured or unsecured to
any companies, firms or other parties covered in register maintained
under Section 189 of the Companies Act, 2013.
In view of the above, the clauses 3 (iii)(a) and 3 (iii)(b) of the
Order are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business for
purchase of inventory & fixed assets and for sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
systems.
(v) In our opinion and according to the information and explanations
given to us, during the year, the company has not accepted public
deposits and no deposits are outstanding at the year end.
(vi) We have broadly reviewed the accounts and records maintained by
the Company pursuant to the Rules made by the Central Government for
the maintenance of cost records under sub-section (1) of Section 148 of
the Companies Act, 2013 read with Companies (Cost Records & Audit)
Rules, 2014 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. We have not,
however, made detailed examination of the records with a view to
determine whether they are accurate and complete.
(vii) (a) Undisputed statutory dues including provident fund, income
tax, sales-tax, wealth tax, service tax, custom duty, excise duty,value
added tax, cess and other statutory dues have generally been regularly
deposited with the appropriate authorities and there are no undisputed
dues outstanding as on 31st March 2015 for a period of more than six
months from the date they became payable.
(b) The disputed statutory dues aggregating to Nil crore that have not
been deposited on account of matters pending before appropriate
authorities, details of which is annexed with this report.
(c) According to the information and explanations given to us, the
Company has transferred the amount required to be transferred to the
Investor Education and Protection Fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and Rules made there
under.
(viii) The Company has no accumulated losses and has not incurred cash
losses during the financial year covered by our audit and in the
immediately preceding financial year.
(ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions, banks or debenture holders.
(x) According to the information and explanations given to us, in
respect of the guarantee given by the Company for the loans taken by
others from a bank, the terms and conditions thereof are not, prima
facie, prejudicial to the interest of the company.
(xi) According to the information and explanations given to us, the
term loans have been applied for the purpose for which they were
obtained.
(xii) According to the information and explanations given to us and as
represented by the Management and based on our examination of the books
and records of the Company and in accordance with generally accepted
auditing practices in India, we have been informed that no case of
frauds has been committed on or by the Company during the year.
For P.S.D. & Associates,
Chartered Accountants,
(Firm's Regn.No.:004501C)
Jaipur, May 30, 2015 (Sajjan K. Rawat)
Partner
M.No.071806
Mar 31, 2014
We have audited the accompanying financial statements of M/s Emgee
Cables and Communications Limited, which comprise the Balance Sheet as
at 31st March, 2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (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 the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
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 Profit and Loss Account, of the profit/loss for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date. Report on Other Legal and Regulatory
Requirements
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 31,2014, 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 AUDIT REPORT
(i) (a) The Company has maintained proper record showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the assets have been physically verified by the management
during the year and there is a regular 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 were noticed on
such verification.
(c) The company has not sold any substantial part of Fixed Assets
during the year so as to affect its going concern assumption.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The Company is maintaining proper record of inventory. The
discrepancies noticed on verification between the physical stock and
the books records were not material.
(iii) (a) Company has not granted any loan to the companies, firm and
parties covered in the register maintained under section 301 of the
Act.
(b) The rate of interest and other terms and conditions of such loans
are not, prima facie, prejudicial to the interest of the company.
(c) Principal and interest has been received during the yerar as per
the loan agreement.
(d) There is no overdue of principal and interest.
(e) Co. has taken unsecured loans from one person covered in the
register maintained under section 301 of the Act amounting to Rs. 548
lacs outstanding at the year end and the maximum amount involved is Rs.
613 lacs.
(f) interest and other terms & conditions of loan taken are not prima
facie prejudicial to the interest to the Company.
(g) Company is regular in payment of principal amount and interest.
(iv) 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 with regard to purchase of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weakness in
internal controls.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the transactions 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 information and explanations given
to us, the transactions made in pursuance of contracts or arrangements
entered in the register maintained under section 301 of the Companies
Act, 1956 and, exceeding the value of rupees five lacs in respect of
any party during the year have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of section
58A or any provision of the Companies Act, 1956 and the rules framed
there under and the directives issued by the reserve bank of India,
where applicable, with regard to the deposits accepted from the public.
The provision of Section 58AA of the companies act 1956, are not
applicable to the company.
(vii) In our opinion, the company have an internal audit system
commensurate with the size and nature of its business.
(viii) According to the information and explanations given to us, the
Central Government has prescribed under Section 209(l)(d) of the Act,
the maintenance of cost records in respect of its products manufactured
by the company. We have broadly reviewed the books of accounts
maintained and in our opinion; the prescribed accounts and records have
prima facie been made and maintained by the Company. We have not,
however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
(ix) (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
employee''s state insurance, income tax, sales tax, wealth tax, custom
duty, excise duty, cess and other material statutory dues applicable to
it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, custom duty, excise duty and cess were in arrears, as at
31.03.2014 for a period of more than six months from the date they
become payable.
(c) According to information and explanation given to us, there are no
dues of sales tax, customs duty, wealth tax, excise duty and cess which
have not been deposited on account of any dispute.
(x) In our opinion, the accumulated losses of the company are not more
than fifty percent of its net worth. The company has not incurred cash
losses during the financial year covered by our audit and immediately
preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution, bank or debentures holders.
(xii) Company has not granted any loans on the basis of pledge of
shares, debentures and other securities.
(xiii) In our opinion, the company is not a chit fund or Nidhi Mutual
benefit fund/society. Therefore, the provision of clause 4(xiii) of
the Companies (Auditor''s Report) order, 2003 are not applicable to the
company.
(xiv) The Company is not dealing in or trading in share, securities,
debentures and other investments. Accordingly, the provisions of clause
4(xiv) of the Companies (Auditor''s Report) Order, 2003 are not
applicable to the Company.
(xv) According to the information explanation given to us, the company
has not given guarantees for loans taken by other from banks or
financial institutions.
(xvi) In our opinion, the term loans have been applied for the purpose
for which they were raised.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no fund raised on short-term basis have been used for long-term
investment. No long term funds have been used to finance short- term
assets except permanent working capital.
(xviii) According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Act.
(xix) The company has not issued any debentures.
(xx) The Company has not raised any money by Public issue during the
year.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For P.S.D. & ASSOCIATES
Place : Jaipur Chartered Accountants
Dated : 30.05.2014 (Firm''s Regn. No. 004501C)
(Sajjan K. Rawat)
Partner
M.No. 071806
Mar 31, 2012
1. We have audited the attached Balance sheet of M/s Emgee Cables &
Communications Limited, Jaipur as at 31st March, 2012, the Profit and
loss account for the year ended on that date and the Cash Flow
Statement on 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.
2. We conducted our audit in accordance with the 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 responsible basis
for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003
issued by the Central Government of India in terms of Sub-section (4A)
of section 227 of the Companies Act. 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to above, we
report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
credit.
(ii) In our opinion, proper books of accounts 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
our account.
(iv) In our opinion, the Balance Sheet, profit and loss account and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in (3C) of sub-section 211 of the
Companies Act. 1956 except as stated in Para (vii) below of non
compliance of AS-15 "Accounting for
Retirement Benefits in the Financial Statement of Employers" issued
by ICAI.
(v) On the basis of written representations received from the
directors, as on 31st March, 2012 and taken on record by the Board of
Directors, we report that none of directors is disqualified as on 31st
March,2012 from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies act. 1956.
(vi) In our opinion and to the best of our information and according to
the explanation given to us, the said balance Sheet, Profit & Loss
account and Cash Flow Statement read together with Significant
Accounting Policies and Notes thereon and subject to -
(a) Non Provision of Gratuity & Leave Encashment (Amount Unascertained)
as required AS-15 "Accounting for Retirement Benefits in the
Financial Statement of Employer" issued by ICAI;
(b) Non Provision for bad and doubtful debts & advances having
outstanding balances since long time (Rs. 02.78 Lacs Previous year Rs.
02.78 Lacs).
Give a true and fair view in conformity with the accounting principals
generally accepted in India.
i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March,2012;
ii) In the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
iii) In the case of Cash Flow Statement, of the cash flows of the
company for the year ended on that date.
ANNEXURE TO THE AUDIT REPORT
(i) (a) The Company has maintained proper record showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the assets have been physically verified by the management
during the year and there is a regular 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 were noticed on
such verification.
(c) The company has not sold any substantial part of fixed assets
during the year so as ' to affect its going concern assumption.
(ii) (a) The inventory has been physically verified during the year by
the management.ln our opinion the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The company is maintaining proper record of inventory. The
discrepancies noticed on verification between the physical stock and
the books records were not material.
(iii) (a) The company has taken/granted loan & advances from/to the
Companies, Firms and other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
(b) In our opinion, the rate of interest and other terms and conditions
on which loans have been granted to companies, firms or other parties
listed in the register maintained under section 301 of the Companies
act.1956 are not, prima facie, prejudicial to the interest of the
company.
(c) The parties to whom loans have been given, have repaid the
principal amounts as stipulated and have been regular in the payment of
interest.
(d) There is no overdue amount of loans granted to companies, Firms or
other parties listed in the register maintained under section 301 of
the Companies Act,1956.
(iv) 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 with regard to purchase of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weakness in
internal controls.
(v) (a) According to the information and explanations given to us, we
are of the opinion that tte transactions 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 information and explanations given
to us, the transactions made in pursuance of contracts or arrangements
entered in the register maintained under section 301 of the Companies
act, 1956 and, exceeding the value of rupees five lacs in respect of
any party during the year have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of section 58
A or any provision of the Companies Act 1956 and the rules framed there
under and the directives issued by the reserve bank of india, where
applicable, with regard to the deposits accepted from the public. The
provision of Section 58AA of the companies act 1956, are not applicable
to the company.
(vii) In our opinion, the company does not have an internal audit
system commensurate with the size and nature of its business.
(viii) The company is not maintained cost record in pursuant to the
rules made by the Central Government for the maintenance of cost
records under section 209 (1) (d) of the Companies Act, 1956 and we are
unable to comment on the same.
(ix)(a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
employee's state insurance, income tax, sales tax, wealth tax, custom
duty, excise duty, cess and other material statutory dues applicable to
it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, custom duty, excise duty and cess were in arrears, as at
31.03.2012 for a period of more than six months from the date they
become payable.
(c) According to information and explanation given to us, there are no
dues of sales tax, customs duty, wealth tax, excise duty and cess,
which have not been deposited on account of any dispute.
(x) In our opinion, the accumulated losses of the company are not more
than fifty percent of its net worth. The company has not incurred cash
losses during the financial year covered by our audit and immediately
preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
(xii) Company has not granted any loans on the basis of pledge of
shares, debentures and other securities.
(xiii) In our opinion, the company is not a chit fund or nidhi mutual
benefit fund/society. Tharmfera, the provision of clause 4 (xiii) of
the Companies (Auditor s Report) order, 2003 are not applicable to the
company.
(xiv) In our opinion, the terms and conditions on which the company has
given guarantees for loans taken by other from banks or financial
institutions are not prejudicial to the interest of the company.
(xv) In our opinion, the term loans have been applied for the purpose
for which they were raised.
(xvi) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no fund raised on short-term basis have been used for long-term
investment. No long term funds have been used to finance short-term
assets except permanent working capital.
(xvii) According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Act.
(xviii) The company has not issued any debentures.
(xix) The company has not raised any money by Public Issue during the
year.
(xx) According to the information and explanations given to us , no
fraud on or by the company has been noticed or reported during the
course of our audit.
BY ORDER OF THE BOARD
DATE: 24.08.2012 SHRIPAL H. CHOUDHARI
PLACE: JAIPUR MANAGING DIRECTOR
Mar 31, 2009
1. We have audited the attached Balance Sheet of M/s EMGEE CABLES AND
COMMUNICATIONS LIMITED, JAIPUR as at 3 lsl March, 2009, the Profit and
Loss Account for the year ended on that date and the Cash Flow
Statement on 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.
2. We conducted our audit in accordance with the 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a
responsible basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of Sub-section (4A) of
section 227 of the Companies Act, 1956, We enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to above, we
report that:
i) We have obtained all the informations and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
credit.
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 & Loss Account and Cash flow statement
dealt with by this report are in agreement with the books of our
account.
i v) In our opinion, the Balance Sheet, Profit and Loss account and
Cash flow statement dealt with by this report comply with the
accounting standards referred to in (3C) of sub-section 211 of the
Companies Act, 1956 except as stated in para (vii) below for non
compliance of AS-15 "Accounting for Retirement Benefits in the
Financial Statement of Employers" issued by ICAI.
v) On the basis of written representations received from the Directors,
as on 31st March, 2009 and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31 st March,
2009 from being appointed as a director in terms of clause(g) of
sub-section (1) of section 274 of the Companies Act 1956.
vi) In our opinion and to the best of our information and according to
the explanation given to us. the said Balance Sheet, Profit & Loss
Account and Cash Flow Statement read together with Significant
Accounting Policies and Notes thereon and subject to-
(a) Non Provision of Gratuity & Leave Encashment (Amount Unascertained)
as required by AS-15 "Accounting for Retirement Benefits in the
Financial Statement of Employer" issued by ICAI;
(b) Non Provision for bad and doubtful debts & advances having
outstanding balances since long time (Rs. 02.78 Lacs Previous year Rs.
24.82 Lacs).
Give a true and fair view in conformity with the accounting principals
generally accepted in India.
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 3 lsl March. 2009;
(ii) In the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
(iii) In the case of Cash Flow Statement, of the cash flows of the
company for the year ended on that date.
ANNEXURE TO THE AUDIT REPORT
(]) (a) The Company has maintained proper record showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the assets have been physically verified by the management
during the year and there is a regular 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 were noticed on
such verification.
(c) The company has not sold any substantial part of Fixed Assets
during the year so as to affect its going concern assumption.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The Company is maintaining proper record of inventory. The
discrepancies noticed on verification between the physical stock and
the books records were not material.
(iii) (a) The Company has taken/granted loan& advances from/to the
Companies, Firms and other parties covered in the register maintained
under section 301 of the Companies Act. 1956.
fb) In our opinion, the rate of interest and other terms and conditions
on which loans have been granted to companies, firms or other parties
listed in the register maintained under section 301 of the Companies
Act, 1956 are not, prima facie, prejudicial to the interest of the
company.
(c) The parties to whom loans have been given, have repaid the
principal amounts as stipulated and have been regular in the payment of
interest.
(d) There is no overdue amount of loans granted to companies, firms or
other parties listed in the register maintained under section 301 of
the Companies Act, 1956.
(ivi 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 with regard to purchase of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weakness in
internal controls.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the transactions 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 transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and, exceeding the value of rupees five lacs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
(vi) In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of section 58
A or any provision of the Companies Act, 1956 and the rules framed
there under and the directives issued by the reserve bank of India,
where applicable, with regard to the deposits accepted from the public.
The provision of Section 58AA of the companies act 1956, are not
applicable to the company.
(vii) In our opinion, the company does not have an internal audit
system commensurate with the size and nature of its business.
(viiij The company is not maintained cost record in pursuant to the
Rules made by the Central Governemnt for the maintenance of cost
records under section 209(1 )(d) of the Companies Act, 1956 and we are
unable to comment on the same.
(ix) (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
employees state insurance, income tax, sales tax, wealth tax, custom
duty, excise duty, cess and other material statutory dues applicable to
it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, custom duty, excise duty and cess were in arrears, as at
31.03.2009 for a period of more than six months from the date they
become payable.
(c) According to the information and explanation given to us, there are
no dues of sales tax, income tax, customs duty, wealth tax, excise duty
and cess which have not been deposited on account of any disputed.
(x) In our opinion, the accumulated losses of the company are not more
than fifty percent of its net worth. The company has not incurred cash
losses during the financial year covered by our audit and the
immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution, bank or debentures holders.
(xii) Company has not granted any loans on the basis of pledge of
shares, debentures and other securities.
(xiii) In our opinion, the company is not a chit fund or Nidhi Mutual
benefit fund/society. Therefore, the provision of clause 4(xiii) of
the Companies (Auditors Report) order, 2003 are not applicable to the
company.
(xi v) In our opinion, the terms and conditions on which the company
has given guarantees for loans taken by other from banks or financial
institutions are not prejudicial to the interest of the company.
(xv) In our opinion, the term loans have been applied for the purpose
for which they were raised.
(xvi) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that the no fund raised on short-term basis have been used for
long-term investment. No long term funds have been used to finance
short-term assets except permanent working capital.
(xvii) According to the information and explanations given to us. the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Act.
(xviii) The company has not issued any debentures.
(xix) The Company has not raised any money by Public issue during the
year.
(xx) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For P.S.D. & ASSOCIATES
Place : Jaipur Chartered Accountants
Dated: 31.07.2009 (S.K.RAWAT)
Partner
M.No. 71806