To The Members of
Delton Cables Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Delton CablesLimited("the Company") which comprise the Balance Sheet as at 31st March2017 the Statement of Profit and Loss the Cash Flow Statement for the year then endedand a summary of the significant accounting policies and other explanatory information
Managements Responsibility for the Financial Statements
The Companys 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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
Our responsibility is to express an opinion on these financial statements based on ouraudit.
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 the auditors judgment including the assessmentof the risks of material misstatement of the financial statements whether due to fraud orerror. In making those risk assessments the auditor considers internal financial controlrelevant to the Companys preparation of the financial statements that give a trueand fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by theCompanys Directors as well as evaluating the overall presentation of the financialstatements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stonMarch 2017 and its Loss and its cash flows that date.
Emphasis of Matters
We draw attention to the following matters in the Notes to the financial statements: a)We draw attention to Note 16(b) in the financial statements regarding recoverability orotherwise 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.
Our opinion is not qualified in respect of these matters.
Report on Other Legal and Regulatory Requirements
1. 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 financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
(e) On the basis of the written representations received from the directors as on 31stMarch 2017taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 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-A".
(g) With respect to the other matters to be included in the Auditors 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.28 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.
iv. The Company has provided requisite disclosures in the financial statements asregards its holding and dealings in Specified Bank during the period from 8th November2016 to 30th December 2016; and such disclosures are in accordance with the books ofaccount maintained by the Company.-Refer Note No 33 to the financial statements.
2. As required by the Companies (Auditors Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure B a statement on the mattersspecified in the paragraph 3 and 4 of the order.
For S.R. Dinodia & Co. LLP
Firms Registration Number 001478N/N500005
Membership Number 083689
Place of Signature: New Delhi
Date: 27 May 2017
Annexure A to the Independent Auditors Report of even date on thefinancial statements of Delton Cables Limited
Report on the Internal Financial Controls under Clause (i) of Subsection 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 31 2017 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys 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 companys policies the safeguarding of its assetsthe prevention 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 2013.
Our responsibility is to express an opinion on the Companys internal financialcontrols over financial reporting based on our audit. 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 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 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 auditors judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Companys internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companys internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A companys internal financial control overfinancial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the companys assets that could havea 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.
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 2017 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
Firms Registration Number 001478N/N500005
Membership Number 083689
Place of Signature: New Delhi
Date: 27 May 2017
Annexure B To the Independent Auditors Report
The Annexure referred to in independent Auditors Report to the members of theCompany on the standalone financial statements for the year ended 31 March 2017 we reportthat: 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.provisions of clause 3(iii) (a) to (c) of the Companies (Auditors Report) Order2016 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(Auditors Report) Order 2016 are not applicable to the Company.
v) The Company has not accepted any deposits from public. Accordingly the provisionsof paragraph 3(v) of the Companies (Auditors Report) Order 2016 are not applicableto the Company. vi) The Central Government for the purpose of sub section (1) of section148 of the companies act 2013 vide its second proviso to rules
3 of the Companies (Cost Records and Audit) Amendment Rules 2014 dated 15.7.2016 hasexempted the Company which is classified as a micro enterprise or small enterpriseincluding as per the turnover criteria under sub-section(9) of section 7 of the MicroSmall and Medium Enterprises Development Act 2006. Therefore the provisions of paragraph3(vi) of the Companies (Auditors Report) order 2015 are not applicable to theCompany.
vii) (a) The Company is generally regular in depositing undisputed statutory duesincluding provident fund employees state insurance income tax sales tax servicetax duty of customs duty of excise value added tax cess and any other statutory dueswith appropriate authorities. Further there were no undisputed outstanding statutory duesas on the last day of the financial year concerned for a period of more than six monthsfrom the date 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 ||3650 ||April 2015 March 2016 |
| || ||1000 ||April 2016 July 2016 |
(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) |
| || ||906995 ||2012-13 ||Joint Com. (Appeal) |
| || ||1446868 ||2000-01 ||Joint Com. (Appeal) |
| || ||563734 ||2012-13 ||Joint Com. (Appeal) |
| || ||314037 ||2008-09 ||Joint Com. (Appeal) |
| || ||167929 ||2009-10 ||Joint Com. (Appeal) |
| || ||315123 ||2009-10 ||Joint Com. (Appeal) |
| || ||205586 ||2010-11 ||Joint Com. (Appeal) |
| || ||130644 ||2011-12 ||Joint Com. (Appeal) |
| || ||30145841 ||2011-12 ||VAT Tribunal |
| || ||2999600 ||June 1996 - 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 Nov2012 ||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. The Company has notissued any debentures.
|Particulars ||Principal Amount of default as at the Balance sheet date (in Rs.) ||Period of default (in days) |
|Banks ||59993973 ||17 |
ix) The Company did not raise any money by the way of initial public or further publicoffer (including debt instruments) during the year. The company has not taken any termloans during the year.
x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its employees has been noticed or reported during the courseof 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 |
| ||Firms Registration Number 001478N/N500005 |
| ||Sd/- |
| ||(Sandeep Dinodia) |
|Place of Signature: New Delhi ||Partner |
|Date: 27th May 2017 ||Membership Number 083689 |