We have audited the accompanying financial statements of G.R. Cables
Limited (The Company), which comprise the Balance Sheet as at March
31, 2015, the Statement of Profit and Loss and the Cash Flow Statement
for the year then ended, and a summary 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 Section 134(5) of the Companies Act,2013 (the Act) with respect to
preparation of these standalone financial statements that give a true
and fair view of the financial position, financial performance and cash
flows of the Company in accordance with accounting principles generally
accepted in India, including the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes maintenance of adequate
accounting records in accordance with provision 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.
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 there under. 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 auditor''s 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 Company''s preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company''s 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.
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 March 31, 2015, 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, 2015 (the
Order) issued by the Central Government in terms of Section 143(11) of
the Companies Act, 2013, we give in the Annexure, a statement on the
matters specified in paragraphs 3 and 4 of the Order, to the extent
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 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
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards 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 March 31, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2015
from being appointed as a director in terms of Section 164 (2) of the
(f) With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
2014, in our opinion and to the best of our information and according
to the explanations given to us:
a. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements.
b. The Company did not have any material foreseeable losses relating
to long-term contracts including derivative contracts.
c. There has been no delay in transferring amounts, required to be
transferred, to the Investors Education and Protection Fund by the
Annexure to the Independent Auditors'' Report on the Financial
(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of our report on the financial statements of even
(1) (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
(b) The fixed assets have been physically verified by the management at
reasonable intervals and no material discrepancies have been noticed on
(2) (a) The physical verification of inventory has been conducted at
reasonable intervals by the management during the year.
(b) In our opinion, and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are 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, the company is maintaining proper records of inventory and
no material discrepancies were noticed on physical verification.
(3) According to the information and explanations given to us, the
Company has not granted loans, secured or unsecured, to companies,
firms or other parties covered in the Register maintained under Section
189 of the Companies Act, 2013.
(4) (a) 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 for the
sale of services and
(b) During the course of our audit we have not observed any continuing
failure to correct major weaknesses in such internal control system.
(5) The company has not accepted any deposits to which the directives
issued by the Reserve Bank of India and provisions of Sections 73 to 76
or any other relevant provisions of the Companies Act, 2013 and the
rules framed there under would apply.
(6) The maintenance of cost records specified by the Central
Governmentto which the provisions of section 148(1) of the 2013 Act
would apply are under compilation.
(7) a) According to the information and explanations given to us and on
the basis of our examination of the books of account, the company has
been regular in depositing with appropriate authorities undisputed
statutory dues including income tax, sales tax, Value added tax, wealth
tax, service tax, customs duty, excise duty, cess and other material
statutory dues applicable to it except provident fund and employees''
b) According to the information and explanations given to us, there are
no dues in respect of sales tax, income tax, customs duty, wealth tax,
service tax, excise duty, and cess that have not been deposited with
the appropriate authorities on account of any dispute. The company has
a deferred sales tax loan of Rs, 851.73 lakhs as its liability.
(8) The company have accumulated losses of Rs, 3332.53 Lacs exceeding
fifty percent of its net worth at the end of the financial year and has
incurred a cash loss of Rs, 19.43 lacs in the financial year and a cash
loss of Rs, 20.01 lacs in the financial year immediately preceding such
(9) In our opinion and according to the information and explanations
given to us, the lending banks has initiated legal proceedings against
the company for recovery of loan amounts the Company has not issued any
(10) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
banks or financial institutions. Accordingly, clause (x) of the Order
is not applicable.
(11) The company has not raised any Term Loans during the year.
Accordingly, clause (xi) of the Order is not applicable.
(12) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
By Order of Board of Directors
For G.R. Cables Limited
Place : Hyderabad G.R. Reddy
Date : 14.08.2015 Managing Director