RPG Cables Ltd merged Auditor Reports

RPG CABLES LIMITED ANNUAL REPORT 2008-2009 AUDITORS REPORT TO THE MEMBERS OF RPG CABLES LIMITED 1. We have audited the attached Balance Sheet of RPG CABLES LIMITED as at March 31, 2009, the Profit and Loss Account and also the Cash Flow Statement of the Company for the year ended on that date. 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 standards on auditing 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 reasonable basis for our opinion. 3. As required by the Companies (Auditors Report) Order, 2003 (The Order) as amended by the Companies (Auditors Report) (Amendment) Order, 2004 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 in paragraph 3 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 purposes of our audit; (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 the 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 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 sub-section (3C) of Section 211 of the Companies Act, 1956; (v) on the basis of written representations received from the directors, as on March 31, 2009, and taken on record by the Board of Directors, none of the directors are disqualified as on March 31, 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) The company has not received the consideration for the assignment of loans and advances in the earlier years from its erstwhile subsidiary company. The net worth of that company is negative as per the latest available audited financial statements of March 31, 2008. In the absence of sufficient further information on the financial position of that company, we are unable to ascertain recoverability of non-provided amount of Rs.5717 lacs outstanding as on the Balance Sheet date. The impact of such non- provision on the financial statements is presently not ascertainable. (vii) in our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956, in the manner so required and subject to our observation in para (vi) above, 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, 2009; (b) in the case of the Profit and Loss Account, of the 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. For N.M. RAIJI & CO. Chartered Accountants J.M. GANDHI Partner Membership No.: 37924 Place : Mumbai Date : June 30, 2009 ANNEXURE TO THE AUDITORS REPORT OF RPG CABLES LIMITED FOR THE YEAR ENDED MARCH 31, 2009: (Referred to in paragraph 3 of our report of even date): (i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets. (b) The Company has a phased program for verification of fixed assets over a period of three years. According to the information and explanations given to us, the Company has verified certain assets pursuant to the said programme. In our opinion, the frequency of verification is reasonable having regard to the size of the Company and nature of its assets. The discrepancies noticed on physical verification were not material and have been properly dealt with in the books of accounts. (c) During the year, substantial parts of the fixed assets have not been disposed off and therefore it does not affect 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) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the Management were reasonable and adequate in relation to the size of the Company and the nature of its business. (c) In our opinion and according to the information and explanations given to us, during the year the Company has maintained proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material and have been properly dealt with in the books of account. (iii) The company has neither taken nor given any loans, secured or unsecured from/to companies, firm or other parties covered 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 is an adequate internal control system commensurate with the size of the company and the nature of its business for the purchase of inventory and fixed assets and with regards to the sale of goods and services. During the course of our audit, we have not observed any major weakness in the internal controls. (v) Based on the audit procedures applied by us and the information and explanations provided by the management, we are of the opinion that there were no contracts or arrangements the particulars of which need to be entered into the register maintained under section 301 of the Companies Act, 1956. (vi) The company has not accepted any deposits from the public. (vii) In our opinion, the Company has an internal audit system commensurate with the size and nature of its business. (viii) We have broadly reviewed the books of account maintained by the Company pursuant to the Order made by the Central Government for the maintenance of Cost Records under section 209(1)(d) of the Companies Act, 1956, 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) According to the information and explanations provided to us, the Company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education and protection fund, employees state insurance, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and other material statutory dues, applicable to it. According to the information and explanations given to us, no undisputed amounts payable were in arrears, as at March 31, 2009 for a period of more than six months from the date they became payable. (b) According to the information and explanations given to us, the details of statutory dues of sales tax, income tax, wealth tax, service tax, entry tax, custom duty and excise duty/cess which have not been deposited on account of disputes are given below: (Rs. in Lacs) Nature of Financial Forum where Amount statutory year to dispute is dues which pending it pertains Central 1995-96 to Central Excise & 65.30 Excise 2003-04 Service Tax Appellate Tribunal. 1995-96 to Commissioner 2.41 2004-05 (Appeals) Custom Duty 2002-03 Commissioner (Appeals) 3.00 Sales Tax 2001-02 Commissioner (Appeals) 31.05 1996-97 Sales Tax Appellate 2.60 Tribunal Entry Tax 1997-98 Commissioner 53.80 1999-2002 (Appeals) (x) The accumulated losses of the Company exceed 50% of its networth as at the balance sheet date. Further the Company has incurred cash loss in the current year and also in the immediately preceding financial year. (xi) Based on our audit and on the basis of information and explanations given to us, there were no defaults by the Company in respect of repayment of principal and interest to banks / financial institutions. (xii) According to the information and explanations given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. (xiii) The Company is not a chit fund or a nidhi/mutual benefit fund/society. Therefore, the provisions of clause 4 (xiii) of the Order are not applicable to the Company. (xiv) In our opinion and according to the information and explanations given to us, the company is not dealing in shares, securities and debentures and other investments and therefore, the provisions of clause 4(xiv) of the order are not applicable to the company. (xv) According to the information and explanation given to us, the Company has not given any guarantee for loans taken by others from banks and financial institutions. (xvi) According to the information and explanations given to us, during the year the Company has not raised term loan. (xvii) In our opinion and 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 funds raised on short-term basis have been utilised for long-term investment. (xviii) According to the information and explanations given to us, the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Companies Act, 1956. (xix) According to the information and explanations given to us, the Company has not issued any secured debentures during the year and there are no outstanding for the earlier years. (xx) During the year, the Company has not raised any money by way of a public issue. (xxi) To the best of our knowledge and belief and according to the information and explanations given to us, no material fraud on or by the Company has been noticed or reported during the course of our audit. For N.M. RAIJI & CO. Chartered Accountants J.M. GANDHI Partner Membership No.: 37924 Place : Mumbai Date : June 30, 2009