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Cords Cable Industries Ltd.

BSE: 532941 Sector: Engineering
NSE: CORDSCABLE ISIN Code: INE792I01017
BSE LIVE 15:40 | 23 Mar 77.50 0.05
(0.06%)
OPEN

77.00

HIGH

78.55

LOW

77.00

NSE LIVE 15:51 | 23 Mar 77.15 -0.10
(-0.13%)
OPEN

77.00

HIGH

79.00

LOW

76.15

OPEN 77.00
PREVIOUS CLOSE 77.45
VOLUME 7237
52-Week high 87.70
52-Week low 40.00
P/E 22.02
Mkt Cap.(Rs cr) 100.21
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 77.00
CLOSE 77.45
VOLUME 7237
52-Week high 87.70
52-Week low 40.00
P/E 22.02
Mkt Cap.(Rs cr) 100.21
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Cords Cable Industries Ltd. (CORDSCABLE) - Auditors Report

Company auditors report

To the Members of Cords Cable Industries Limited

Report on the Financial Statements

We have audited the accompanying standalone financial statements of Cords CableIndustries Limited ("the Company") which comprise the Balance Sheet as atMarch 31 2016 the Statement of Profit and Loss and the Cash Flow Statement for the yearended 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 Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand 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 statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder.

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

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide 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 explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas 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 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure A a statement on the matters specified in paragraphs 3and 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 bestof 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 theCompany 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 Statementdealt with by this Report are in agreement with the books of account;

d) in our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rule 2014;

e) on the basis of the written representations received from the directors as on March31 2016 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of Section 164 (2) of theAct;

f) with respect to adequacy of the internal financial controls over financial reportingof the Company and the operating effectiveness of such control refer to our separatereport in 'Annexure B'; and

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

I. The Company has pending litigations of Rs. 37.49 Crore with Revenue Authoritieshowever it would not impact its financial position

II. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses

III. The amounts which were required to be transferred to the Investor Education andProtection fund by the Company has been transfered.

For Sharma Goel & Co. LLP
Chartered Accountants
FRN: 000643N
Amar Mittal
Place : New Delhi Partner
Date : May 30 2016 Membership No.: 017755

ANNEXURE-A

TO THE INDEPENDENT AUDITOR’S REPORT

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 ourexamination of the records Company is maintaining proper records showing fullparticulars including quantitative details and situation of its fixed assets.

b) Fixed assets have been physically verified by the management at reasonable intervalsand 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 ourexaminations of the records of the Company physical verification of the Company has beenconducted at reasonable intervals by the management and no material discrepancies werenoticed on such verification.

iii) The company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnership or other parties covered in the register maintained underSection 189 of the Companies Act 2013. Accordingly Paragraph 3(iii) of the order is notapplicable

iv) In our opinion and according to the information and explanation given to us theCompany has complied with the provision of Section 185 and 186 of the Act with respect tosecurity and investment made however Company has neither granted any loan nor given anyguarantee

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

vi) We are of the opinion that prima facie the cost records and accounts prescribed byCentral Government under Section 148(1) of the Companies Act 2013 have been made andmaintained. We have not however carried out any detailed examination of the record witha view to determining whether they are accurate and complete

vii) a) According to information and explanations given to us and on the basis of ourexamination of the records of the Company amounts deducted / accrued in the books ofaccounts in respect of undisputed statutory dues including provident fund income taxsales Tax value added tax duty of customs service tax cess and any other materialstatutory dues have been regularly deposited during the year by the Company with theappropriate authorities to the extent applicable

According to the information and explanations given to us no undisputed amountspayable in respect of aforesaid dues were in arrears as at March 31 2016 for a period ofmore than six months from the date they became payable wherever applicable

b) According to the information and explanations given to us details of dues whichhave 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
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 ExciseJaipur
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 ExciseAlwar
Excise duties 9061656/- 2014-2015 Commissioner Central ExciseAlwar
Service Tax 120732/- 2012-2014 Assistant Commissioner Central Excise Bhiwadi
Service Tax Less: Already Deposit 3374509/- 659854/- 2012-2014 Joint Commissioner Central ExciseAlwar
Excise duties 481472/- 2014-2015 Assistant Commissioner Central ExciseBhiwadi
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 ExciseAlwar

viii) According to the information and explanations given to us and on the basis ofexamination of the records of the Company we are of the opinion that Company has notdefaulted 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 furtherpublic offer (including debt instruments) however term loan taken during the year havebeen utilized for the purpose for which it was taken.

x) According to the information and explanations given to us no material fraud by thecompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit

xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the managerial remuneration paid/ provided arein accordance with the requisite approvals mandated by the provisions of section 197 readwith schedule V of Companies Act 2013.

xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards

xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has made preferential allotment ofequity shares and requirement of Section 42 of the Companies Act 2013 have been compliedand 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 ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable

xvi) The Company is not required to be registered under section 45-IA of the ReserveBank 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

ANNEXURE-B

TO THE INDEPENDENT AUDITOR’S REPORT

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of Cords CableIndustries Limited ("the Company") as of March 31 2016 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

Management’s Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit ofInternal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India ("ICAI"). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the Company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting were established andmaintained and if such controls operated effectively in all material respects

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofManagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's 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 financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Sharma Goel & Co. LLP
Chartered Accountants
FRN: 000643N
Amar Mittal
Place : New Delhi Partner
Date : May 30 2016 Membership No.: 017755