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Delton Cables Ltd.

BSE: 504240 Sector: Engineering
NSE: N.A. ISIN Code: INE872E01016
BSE LIVE 12:46 | 21 Aug 26.65 -1.35
(-4.82%)
OPEN

28.30

HIGH

28.30

LOW

26.60

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 28.30
PREVIOUS CLOSE 28.00
VOLUME 756
52-Week high 29.95
52-Week low 16.15
P/E
Mkt Cap.(Rs cr) 23
Buy Price 26.65
Buy Qty 444.00
Sell Price 28.25
Sell Qty 80.00
OPEN 28.30
CLOSE 28.00
VOLUME 756
52-Week high 29.95
52-Week low 16.15
P/E
Mkt Cap.(Rs cr) 23
Buy Price 26.65
Buy Qty 444.00
Sell Price 28.25
Sell Qty 80.00

Delton Cables Ltd. (DELTONCABLES) - Auditors Report

Company auditors report

To

The Members of

Delton Cables Limited

Report on the Standalone Financial Statements

We have audited the accompanying financial statements of Delton Cables Limited("the Company") which comprise the Balance Sheet as at 31st March 2016 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of the 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 preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules2014. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement 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 accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

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 andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers 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 the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the 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 31st March 2016 and its Profit and its cash flows for the year ended on that date.

Emphasis of Matters

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

a) We draw attention to Note 16(b) in the financial statements regarding recoverabilityor otherwise and the consequential effect if any on the statement of profit and loss inrespect of old outstanding aggregating to ' 9005719 due from customers and includedunder the head Trade Receivables outstanding over six months.

b) No confirmation has been received from Trade receivables Trade payables and closingstock of semi finished goods lying with job worker.

Our opinion is not qualified in respect of these matters.

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 the paragraph3 and 4 of the 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 bestof 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 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) Rules 2014.

(e) On the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms of Section164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure-B".

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

i. On the basis of written representations received from the management of the Companythe Company does not have any pending litigations which would impact its financialposition; except for the cases which are disclosed under note "ContingentLiabilities" in Note No.29 of the financial statements.

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

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For S.R. Dinodia & Co. LLP

Chartered Accountants

Firm’s Registration Number 001478N/N500005

Sd/-

(Sandeep Dinodia)

Partner

Membership Number 083689

Place of Signature : New Delhi

Date : 29 May 2016

The Annexure referred to in independent Auditors' Report to the members of the Companyon the standalone financial statements for the year ended 31 March 2016 we report that:

i) In respect of fixed assets:

a) The company has maintained adequate records showing full particulars includingquantitative details and situation of fixed assets.

b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified at regular intervals. In accordance with this programmeall fixed assets were verified during the year and no material discrepancies were noticedon such verification. In our opinion such periodicity of physical verification isreasonable having regard to the size of the Company and the nature of its assets.

c) The title deeds of immovable properties are held in the name of the Company.

ii) In respect of its inventory:

a) On the basis of information and explanation provided by the management inventorieshave been physically verified by the management during the year. In our opinion thefrequency of physical verification followed by the management is reasonable.

b) No material discrepancies were noticed on verification between the physical stocksand the book records.

iii) a) to (c) According to the information and explanation given to us the Companyhad not granted loans secured or unsecured to any of the Companies firms or otherparties covered in the register maintained under section 189 of the Companies Act 2013.Therefore the provisions of clause 3(iii) (a) to (c) of the Companies (Auditor's Report)Order 2016 are not applicable to the Company.

iv) According to the information and explanation given to us the company has no loansinvestments guarantees and security covered under the provisions of section 185 and 186of the Companies Act 20l3. Therefore the provisions of clause 3(iv) of the Companies(Auditor's Report) Order 2016 are not applicable to the Company.

v) The Company has not accepted any deposits from public.

vi) The Central Government for the purpose of sub section (1) of section 148 of theCompanies Act 2013 vide its second proviso to rules 3 of the Companies (Cost Records andAudit) Amendment Rules 2014 has exempted the Company which is classified as a microenterprise or small enterprise including as per the turnover criteria under sub-section(9)of section 7 of the Micro Small and Medium Enterprises Development Act 2006. Thereforethe provisions of paragraph 3(vi) of the Companies (Auditor's Report) order2015 are notapplicable to the Company.

vii) a) The Company is generally regular in depositing undisputed statutory duesincluding provident fund employees' state insurance income tax sales tax service taxduty of customs duty of excise value added tax cess and any other statutory dues withappropriate authorities. Further there were no undisputed outstanding statutory dues as onthe last day of the financial year concerned for a period of more than six months from thedate they became payable except Professional tax.

Name of the Statute Nature of Dues Amount (Rs. ) Period to which amount relates
Professional Tax Law Professional Tax 1450 April 2015 - September 2015

(b) According to the records of the Company examined by us and the information andexplanations given to us there were no dues of income tax or sales tax or service tax orduty of customs or duty of excise or value added tax that have not been deposited onaccount of any dispute except the following:

Name of the Statute Nature of Dues Amount (Rs. ) Period to which amount relates (A.Y.) Forum where dispute is pending
Sales tax Law Sales Tax 33168 1980-81 High Court
42216 1981-82 High Court
6030 1982-83 High Court
43676 1989-90 Sales Tax Tribunal
21168 1990-91 Sales Tax Tribunal
1640239 2007-08 Joint Com. (Appeal)
1356877 2008-09 Joint Com. (Appeal)
2023338 2011-12 Joint Com. (Appeal)
1446868 2000-01 Joint Com. (Appeal)
1259391 2011-12 Joint Com. (Appeal)
314037 2008-09 Joint Com. (Appeal)
167929 2009-10 Joint Com. (Appeal)
315123 2009-2010 Joint Com. (Appeal)
205586 2010-2011 Joint Com. (Appeal)
130644 2011-12 Joint Com. (Appeal)
2999600 June 1996 TO March 1998 High Court
Local Area Development Tax LADT 806460 2000-01 Joint Com. (Appeal)
3889683 2001-02 Joint Com. (Appeal)
1036364 2004-05 Joint Com. (Appeal)
Excise Law Excise case 1029000 2011-12 Custom Excise and Service tax Appellate Tribunal New Delhi
Excise case 2209718 2008-09 to Nov 2012 Commissioner. (Appeals)
Excise case 239275 Dec 2012 to Sept. 2013 Commissioner. (Appeals)
Excise case 497113 Oct 2013 to Aug 2014 Commissioner. (Appeals)
Income Tax Law Income Tax 173652 2011-12 DCIT (Deputy Commissioner of Income tax)

viii) On the basis of information and explanation provided to us the company has madefollowing defaults in repayment of loans and borrowings to the bank. Also there were nodues outstanding with respect to debenture holders as at March 31 2016.

Particulars Principal Amount of default as at the balance sheet date (in `) Period of default (in days)
Banks 41697798 97

ix) The Company did not raise any money by the way of initial public or further publicoffer (including debt instruments) during the year. The term loans taken during the yearwere applied for the purpose for which the same has been raised.

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) The Company has paid / provided managerial remuneration to its directors during theyear in accordance with provisions of section 197 read with Schedule V to the CompaniesAct 2013 as applicable to the Company.

xii) The Company is not a nidhi company hence the provisions of clause 3(xii) of theOrder is not applicable to the Company.

xiii) During the course of our examination of the books and records of the Company alltransactions entered with the related parties are in compliance with section 177 and 188of Companies Act 2013 and the details have been disclosed in the Financial Statementsetc as required by the applicable accounting standards.

xiv) The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review. Accordingly theprovision of paragraph 3(xiv) of the Order is not applicable to the Company.

xv) The Company has not entered into any non-cash transactions with directors orpersons connected with him. Hence the provisions of paragraph 3(xv) of the Order are notapplicable to the Company.

xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of paragraph 3(xvi) of the Order arenot applicable to the Company.

For S.R. Dinodia & Co. LLP

Chartered Accountants

Firm’s Registration

Number 001478N/N500005 Sd/-

(Sandeep Dinodia)

Partner

Membership Number 083689

Place of Signature :

New Delhi

Date : 29 May 2016

Annexure ‘B’ to the Independent Auditor’s Report of even date on thestandalone financial statements of Delton Cables Limited

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 DeltonCables Limited ("the Company") as of March 312016 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 of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired 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 my our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. 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 was 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 312016 based on"the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For S.R. Dinodia & Co. LLP

Chartered Accountants

Firm’s Registration Number 001478N/N500005

Sd/-

(Sandeep Dinodia)

Partner

Membership Number 083689

Place of Signature : New Delhi

Date : 29 May 2016