To the Members of Cable Corporation of India Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Cable Corporation of India
Limited("the Company"), which comprise the balance sheet as at 31 March 2019,
the statement of profit and loss, the statement of cash flows for the year then ended and
a summary of the significant accounting policies and other explanatory information, in
which are incorporated the unaudited accounts of the Bangladesh office.
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section
134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of
these financial statements that give a true and fair view of the financial position,
financial performance, and cash flows of the Company in accordance with the accounting
principles generally accepted in India, including the Accounting Standards prescribed
under Section 133 of the Act read with relevant rules issued thereunder. 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 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 thereunder.
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 auditors 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 Companys preparation of the financial statements that give a true and
fair view in order to design audit procedures that are appropriate in the circumstances.
An audit also includes evaluating the appropriateness of the accounting policies used and
the reasonableness of the accounting estimates made by the Companys Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements give the information required by the Act
in the manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India, of the state of affairs of the Company as at 31
March, 2019, and its financial performance, its cash flows for the year ended on that
date.
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 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, the statement of cash flow
dealt with by this Report are in agreement with the books of accounts.
(d) In our opinion, the aforesaid financial statements comply with the Accounting
Standards specified under Section 133 of the Act read with relevant rules issued
thereunder.
(e) On the basis of the written representations received from the directors as on 31st
March, 2019 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2019 from being appointed as a director in terms
of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate report in "Annexure A".
(g) With respect to the other matters to be included in the Auditors 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 No. 28 to the financial statements.
ii. The Company did not have any long-term contracts including derivate contracts for
which there were any material foreseeable losses.
2, As required by the Companies (Auditors Report) Order, 2016 ("the Order")
issued by the Central Government of India in terms of section 143(11) of the Act, we give
in the "Annexure B", a statement on the matters specified in the paragraph 3 and
4 of the order, to the extent applicable.
For KNCS& Co.
Chartered Accountants (Firm Registration No. 124740W)
Sd/-
CA.Girish. J.Rathi
Partner
(Membership No. 117453)
UDIN : 19117453AAAABU7225
Date : 27th August, 2019 Place: Mumbai,
Annexure -A to the Independent Auditors Report of Even Date on the Financial
Statements of Cable Corporation of India Limited
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Cable
Corporation of India Limited ("the Company"), as of 31 March 2019 in conjunction
with our audit 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 internal
financial controls based on "the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
issued by the Institute of Chartered Accountants of India (ICAI)". These
responsibilities include the design, implementation and maintenance of adequate internal
financial controls that were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to companys policies, the safeguarding of
its assets, the prevention and detection of frauds and errors, the accuracy and
completeness of the accounting records, and the timely preparation of reliable financial
information, as required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
(the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed
to be prescribed under section 143(10) of the Companies Act, 2013, to the extent
applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, both issued by the Institute of Chartered Accountants of
India. Those Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinion on the Companys internal financial controls system over
financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that:
(1) Pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in
accordance with authorisations of management and directors of the company; and
(3) Provide reasonable assurance regarding prevention or timely detection of
unauthorised acquisition, use, or disposition of the companys assets that could have a
material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at 31 March 2019, based on
"the internal control over financial reporting criteria established by the Company
considering the essential components of internal control stated in the Guidance Note on
Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of
Chartered Accountants of India".
For KNCS & Co.
Chartered Accountants
(Firm Registration No. 124740W)
Sd/-
CA.Girish. J.Rathi
Partner
(Membership No. 117453)
UDIN : 19117453AAAABU7225
Date : 27th August,2019
Place: Mumbai,
ANNEXURE -B
THE INDEPENDENT AUDITORS REPORT ON FINANCIAL STATEMENTS OF Cable Corporation of India
Limited
{Referred to in paragraph 1 under the heading "Report on Other Legal and
Regulatory Requirements" of our report of even date to the members of Cable
Corporation of India Limited on the Financial Statements for the year ended 31st
March, 2019)
(i) In respect of the Companys fixed assets:
(a) The Company has generally maintained proper records showing full particulars
including quantitative details and situation of its Fixed Assets, except those in respect
of Plant & Machinery installed prior to 1st January, 1967.
(b) The Company has a program of verification to cover all the items of fixed assets in
a phased manner which, in our opinion, is reasonable having regard to the size of the
Company and the nature of its assets. Pursuant to the program, all fixed assets were
physically verified by the management during the year. According to the information and
explanations given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and based on the records
produced, the title deeds of the immovable properties held by the Company are in the name
of the Company.
(ii) The inventories have been physically verified during the year by the management.
In our opinion, the frequency of verification is reasonable. The discrepancies noticed on
verification between the physical stocks and the book records were not materia), having
regard to the size of the operations of the Company and the same have been properly dealt
with in the Books of accounts.
(iii) The company has not granted secured/unsecured loans to companies, firms, limited
liability partnerships or other parties covered in register maintained under section 189
of Companies Act, 2013. Consequently, requirements of clause(iii) of Paragraph 3 of the
Order are not Applicable.
(iv) The Company has not advanced any loan or given any guarantee or provided any
security or made any investment covered under sections 185 and 186 of the Act.
Consequently, requirements of clause (iv) of paragraph 3 of the Orders are not applicable.
(v) According to the information and explanation given to us, the Company has taken
Deposit from dealers. The company has treated this deposit as Exempt Deposit for DPT-3
Compliance.
(vi) According to the information and explanations given to us, the Company is required
to maintain cost records under sub-Section (1) of Section 148 of the Act in respect of
products manufactured by the Company. We are of the opinion that prima facie, the
prescribed records have been made and maintained. We have not, however, made a detailed
examination of these records.
(vii) (a) On the basis of examination of the relevant records and according to the
information and explanations given to us, we are of the opinion that the Company, the
following undisputed statutory dues including income tax, goods and service tax, excise
duty, custom duty, cess and any other material Statutory Dues, have generally been
regularly deposited with the appropriate authorities.
However the company is irregular in depositing the following undisputed statutory dues
which includes Provident Fund, Employees State Insurance, Sales Tax, Service Tax, with the
appropriate authorities.
The following are the outstanding statutory dues as at last date of financial year
which were outstanding for the period of more than six months from the date they become
payable:
| Name of the Statute |
Nature of the Dues |
Amount (Rs. In Lakhs) |
Period to which the amount relates |
| Central Sales Tax Act, 1956 and Sales Tax Act of Various State |
Sales Tax Defferal Scheme. |
399.32 |
April 2015 to April 2018. |
(b) According to the records of the company as at 31s March, 2019, the
following are the particulars of disputed dues on account of Income Tax, Sales Tax,
Service Tax, Custom Duty, Excise Duty and Value Added Tax matters which have not been
deposited.
| Name of the Statute |
Nature of the Dues |
Amount (Rs. In Lakhs) |
Period to which matter relates |
Forum where Dispute is Pending |
| Central Sales Tax Act, 1956 and Sales Tax Act of Various State |
Sales Tax |
22.66 |
Year 2000-01 & 2008-09 |
Commissioner(Appeals) |
| Central Excise Act, 1944 income Tax Act, 1961 |
Excise Duty . |
2.05 |
Period from Sep-2010 to Aug-2011 |
Commissioner of Central Excise(Appeals) /Central Excise and Service Tax Appellate
Tribunal |
|
Income Tax |
40.18 |
Assessment Year 1996- |
Commissioner of Income Tax |
|
|
|
97 and Assessment Year |
(Appeals)/ITAT |
|
|
|
2008-09 |
|
(viii) The company has defaulted in the repayment of Principal to the following Bank
and Financial Institution. The details are as follows:
| Particulars |
Amount of Default at Balance Sheet Date. (Rs. In Lakhs) |
Period of Default |
| Housing Development Finance Corporation Ltd. |
93.85 |
June 2018 to March 2019 |
(ix) According to the information and explanations given to us and on the basis of
examination of records, the Company has neither obtained new term loans nor raised any
money by way of initial public offer or further public offer of shares and/or debt
instruments during the year.
Therefore, the provisions of clause (ix) of Paragraph 3 of the CARO 2016 are not
applicable to the Company.
(x) Based on our audit procedures performed for the purpose of reporting the true and
fair view of the Financial Statements and on the basis of information and explanations
given by the management, no fraud by the Company or on the Company by its officers or
employees has been noticed or reported during the year.
(xi) According to the information and explanations given to us and based on our
examination of records of the Company, the managerial remuneration has been paid or
provided in accordance with the requisite approvals mandated by the provisions of section
197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the
Company is not a Nidhi Company and accordingly the provisions of clause (xii) of Paragraph
3 of the CARO 2016 are not applicable to the Company.
(xiii) To the best of our knowledge and belief and according to the information and
explanations given to us and based on our examination of records of the Company, the
transactions entered with related parties are in compliance with provisions of section 177
and 188 of the Act, where applicable and the details of such transactions are disclosed in
the Financial Statements as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and based on our
examination of records of the Company, the Company during the year has not made any
preferential allotment or private placement of shares or fully or partly convertible
debentures. Accordingly the provisions of clause (xiv) of Paragraph 3 of the CARO 2016 are
not applicable to the Company.
(xv) In our opinion and according to the information and explanations given to us and
based on our examination of records of the Company, the Company during the year has not
entered into any non cash transactions with directors or persons connected with the
directors and accordingly the provisions of clause (xv) of Paragraph 3 of the CARO 2016
are not applicable to the Company.
(xvi) In our opinion and according to the information and explanations given to us, the
Company is not required to be registered under section
45-IA of the Reserve Bank of India Act, 1934.
For KNCS & Co.
Chartered Accountants
(Firm Registration No. 124740W)
Sd/-
CA.Girish. J.Rathi
Partner
(Membership No. 117453)
UDIN : 19117453AAAABU7225
Date : 27th August, 2019
Place: Mumbai,
+91-9892691696
