Mar 31, 2015
We have audited the accompanying financial statements of Unimers India
Limited ("the Company"), which comprise the Balance Sheet as at 31st
March, 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.
2. 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 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
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 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.
3. Auditor's 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 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 qualified audit opinion on the
financial statements.
4. Basis of Qualified Opinion
(a) The accumulated losses of the Company as at the year end exceeds its
entire net worth; however the Company has been advised that since
certain conditions as per the Sick Industrial Companies (Special
Provisions) Act, 1985 were not being met, it was not eligible to make a
reference to BIFR. However, should the legal status as regards the
validity of the closure of the plant change, appropriate steps will have
to be taken by the Company in this regard. Moreover, the plant
operations were suspended since October, 2007 and thereafter formally
closed and workers retrenched effective from 26th June, 2008. These
financial statements have, however, been prepared by the management on a
"going concern" basis, considering the various revival/restructuring
options being pursued by the management. This being a technical matter
and in view of uncertainty, we are unable to express an opinion as to
whether the Company can now operate as a going concern. However, as
explained, should the Company be unable to continue as a going concern,
there would be impact on the assets & liabilities of the Company. The
extent of the effect of the resultant adjustments to the accumulated
losses, assets and liabilities as at the year end is presently not
ascertainable.
(b) We are unable to express an opinion as to when and to what extent
the carrying value of Building of Rs. 258.57 lacs would be realised
(impairment loss) in view of the closure of all manufacturing
activities since October, 2007 (subsequently formally closed and
workers retrenched effective from 26th June, 2008), the impact whereof
on the loss for the year, accumulated losses, assets and liabilities as
at the year end is presently not ascertainable.
(c) The accounts of certain lenders aggregating to Rs. 4,945.06 lacs
(Previous year Rs.4,947.38 lacs), Securities application money due for
refund of Rs. 75.21 lacs (Previous Year Rs. 75.21 lacs), Advances from
customers of Rs. 374.34 lacs (Previous Year Rs.374.59 lacs), Trade
Payables of Rs. 712.96 lacs (Previous Year Rs. 711.26 lacs), Bank
balances (Dr.) of Rs. 0.27 lacs (Previous Year Rs.0.27 lacs), Loans &
Advances recoverable of Rs. 119.65 lacs (Previous Year Rs. 120.08
lacs) being subject to confirmations / reconciliations and adjustments,
if any, having consequential impact on the loss for the year, assets,
liabilities and accumulated losses as at the close of the year, the
amount of adjustment if any, are as explained by the management
presently not ascertainable and therefore, not accounted for.
(d) The Company has not yet deposited long outstanding amount of
Rs.164.69 lacs (Previous year Rs. 164.69 lacs) to the Investor
Education & Protection Fund (IEPF) and consequential unascertained
liability of interest / other charges on the same
(e) Other than stated in para "f" below, liability as may arise towards
interest/compound interest/penalty on delayed/ non-payment to certain
lenders / trade payables / statutory / workers dues has not been
ascertained and not provided for.
(f) The Company has not provided interest payable of Rs. 522.38 lacs
(Previous Year Rs. 459.78 lacs) in respect of public debentures, Rs.
1500.86 lacs (Previous Year Rs. 1059.69 lacs) in respect of secured /
unsecured loans and Rs.476.12 lacs (Previous Year Rs. 377.55 lacs) in
respect of certain other liabilities. As explained, the management is
in discussions with the parties concerned in respect of interest
payable and is hopeful of its waiver.
We further report that without considering the matter referred in
para4(a) to 4(e) above, the effect of which could not be determined,
had the observation made by us in para 4(f) above been considered, the
loss before tax for the year would have been Rs. 2,636.57 lacs (as
against reported loss of Rs. 137.21 lacs), accumulated losses would
have been Rs. 11,982.13 lacs(as against reported figure of Rs.9,482.77
lacs), other current liabilities would have been Rs 8,382.55 lacs (as
against reported figure of Rs 5,883.19 lacs);Previous Year loss for the
year would have Rs. 2,127.03 lacs(as against reported loss of Rs.
230.01 lacs), accumulated losses would have been Rs. 11,096.75 lacs(as
against reported figure of Rs.9,199.73 lacs), other current liabilities
would have been Rs 7,713.42 lacs (as against reported figure of Rs
5,816.40 lacs).
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matters
described in the Basis for Qualified Opinion paragraph above, 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 31st March, 2015, and its loss
and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
(i) As required by the Companies (Auditor's Report) Order, 2015 issued
by the Central Government of India in terms of Section 143 (11) of the
Companies Act, 2013, we enclose in the Annexure a statement on the
matters specified in paragraphs 3 and 4 of the said Order.
(ii) As required by Section 143 (3) of the Act, we further report that:
(a) Except for the effects of the matters described in the Basis for
Qualified Opinion paragraph 4(c) above, 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) Except for the effects of the matters described in the Basis for
Qualified Opinion paragraph 4(b),(d),(e) and
(f) above, 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, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) Except for the effects of the matters described in the Basis for
Qualified Opinion paragraph 4(b) above, 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 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) The matters described in the Basis for Qualified Opinion paragraph
above, in our opinion, may have an adverse effect on the functioning of
the Company.
(g) 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)
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 17 (e) to
the financial statements.
(ii) The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
(iii) There were no amounts which were required to be transferred to
the investor Education and Protection Fund by the Company, except as
disclosed in note 4(d) of basis of Qualified Opinion paragraph above.
Annexure referred to in paragraph "Report on Other Legal and Regulatory
Requirements" of our report of even date on the Financial Statements as
at and for the year ended March 31, 2015 of Unimers India Limited:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All the fixed assets have been physically verified by the
management once during the year which is reasonable considering the
size and nature of its business. No material discrepancies were noticed
on such verification.
(ii) (a) The inventory has been physically verified by the management at
the year end which is considered reasonable having regard to the size of
the Company and nature of its business.
(b) The procedures for physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and nature of its business.
(c) The Company is maintaining proper records of inventory. No
discrepancies were noticed on physical verification of inventories as
compared to book records.
(iii) During the year the Company has not granted any loans, secured or
unsecured, to companies, firms or other parties covered in the register
maintained under Section 189 of the Act.
(iv) In our opinion and according to the information and explanations
given to us, having regard to the explanation that some of the items of
fixed assets are of special nature and suitable alternative source may
not always exist for obtaining comparable quotations, there is an
adequate internal control system commensurate with the size of the
Company and the nature of its business with regard to the purchase of
inventory and fixed assets and for the sale of goods and services.
During the course of our audit, we have not observed any major weakness
or continuing failure to correct any major weakness in the internal
control system of the Company in respect of these areas.
(v) No deposits within the meaning of directives issued by the Reserve
Bank of India and Sections 73 to 76 or any other provisions of the
Companies Act, 2013 and rules framed thereunder have been accepted by
the Company.
(vi) Since plant operations have been discontinued from October 2007,
no cost records and accounts as prescribed by the Central government
under section 209 (1) (d) of the act have been maintained.
(vii) (a) The Company is generally regular in depositing undisputed
statutory dues, including Provident Fund, employee's state insurance,
income tax, wealth tax, sales tax, service tax, duty of customs, value
added tax and other material statutory dues applicable to the Company
with the appropriate authorities during the year. There were no
undisputed amount payable on account of the above dues outstanding as on
March 31, 2015 for a period of more than six months from the date they
became payable except as mentioned below:
Name of Statute Nature of Dues Amount
(Rs. in Lacs) *
The Companies Act Investor Education 164.69
& Protection Fund
BPMC Act Property Tax 342.58
Name of Statute Period to which Due Date
it relates
The Companies Act 1991-2003 1998-2011
BPMC Act October 2006 From October
to March 2015 2006 onwards
* Excluded interest and other charges/penalties as may be leviable
owing to delayed payment of the aforesaid amount.
(b) According to information and explanation given to us, there are no
dues of income tax, sales tax, wealth tax, service tax, custom duty and
value added tax during the year which have not been deposited on
account of any disputes except the following:
Financial Year Nature of Dues Amount Forum where dispute
(Rs. in Lacs) is pending
1999- 2000 Sales Tax 13.49 Deputy Commissioner
2000- 2001 Sales Tax 1.91 Appellate Tribunal
2006- 2007 Excise Duty 62.26 CESTAT
2007- 2008 Cess Liability 1.18 NMMC
(c) The Company is required to transfer Rs. 164.69 lacs to the Investor
Education and Protection Fund in accordance with the relevant
provisions of the Act, and rules made thereunder.
(viii) The accumulated losses of the Company at the end of the
financial year exceed 50% of its net-worth. The Company has incurred
cash losses during the financial year and in the immediately preceding
financial year.
(ix) According to the information and explanations given to us and
considering that certain loans from financial institutions and Banks
have already been assigned to bodies corporate, the Company has
defaulted in repayment of dues of Rs. 1,478.73 lacs (last installment
due since March 31, 2012) to debenture holders.[Also refer para 4(e) of
the Basis of Qualified opinion paragraph in main report]
(x) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions.
(xi) According to the information and explanations given to us, the
Company has not raised any term loan during the year and in recent
past.
(xii) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing standards in India and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
For LODHA & COMPANY
Chartered Accountants
Firm Registration No. - 301051E
R. P. BARADIYA
Partner
Membership No. 44101
Place : Mumbai
Date : May 23, 2015
Mar 31, 2014
We have audited the accompanying financial statements of Unimers India
Limited("the Company"), which comprise the Balance Sheet as at March
31, 2014, the Statement of Profit and Loss and the Cash Flow Statement
of the Company for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
2. Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for 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 Standards notified under the Companies
Act, 1956 ("the Act") read with the General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs in respect of
section 133 of the Companies Act, 2013. This responsibility includes
the design, implementation and maintenance of internal control 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.
3. Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with the
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 the
internal control relevant to the Company''s preparation and fair
presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by the Management, 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.
4. Basis of Qualified Opinion
(a) The accumulated losses of the Company as at theyear end exceeds its
entire net worth, however the Company has been advised that since
certain conditions as per the Sick Industrial Companies (Special
Provisions) Act, 1985 were not being met, it was not eligible to make a
reference to BIFR. However, should the legal status as regards the
validity of the closure of the plant change, appropriate steps will
have to be taken by the Company in this regard. Moreover, the plant
operations were suspended since October, 2007 and thereafter formally
closed and workers retrenched effective from 26th June, 2008. These
financial statements have, however, been prepared by the management on
a "going concern" basis, considering the various revival/restructuring
options being pursued by the management. This being a technical matter
and in view of uncertainty, we are unable to express an opinion as to
whether the Company can now operate as a going concern. However, as
explained, should the Company be unable to continue as a going concern,
there would be impact on the assets & liabilities of the Company. The
extent of the effect of the resultant adjustments to the accumulated
losses, assets and liabilities as at the period end is presently not
ascertainable.
(b) The Company has not carried out impairment test as required by
Accounting Standard (AS) 28
"Impairment of Assets", in respect of Building, Plant & Machinery and
Furniture & Fixtures. We are unable to express an opinion as to when
and to what extent the carrying value of Building, Plant & Machinery
and Furniture & Fixtures would be recovered in view of the closure of
all manufacturing activities since October, 2007 (subsequently formally
closed and workers retrenched effective from 26th June, 2008), the
impact whereof on the loss for the year, accumulated losses, assets and
liabilities as at the year end is presently not ascertainable.
(c) The Company has not yet deposited long outstanding amount of
Rs.164.69 lacs (Previous year Rs. 164.69 lacs) to the Investor
Education & Protection Fund (IEPF) and consequential unascertained
liability of interest / other charges on the same.
(d) The accounts of certain lenders aggregating to Rs. 4,947.38 lacs
(Previous year Rs.4,947.38 lacs), Securities application money due for
refund of Rs. 75.21 lacs (Previous Year Rs. 75.21 lacs),Advances from
customers of Rs. 374.59 lacs (Previous Year Rs.373.58 lacs), Trade
Payables of Rs.223.97 lacs (Previous Year Rs. 328.13 lacs), Bank
balances (Dr.) of Rs. 0.27 lacs (Previous Year Rs.0.33 lacs), Loans &
Advances recoverable of Rs. 31.68 lacs (Previous Year Rs. 32.18 lacs)
being subject to confirmations / reconciliations and adjustments, if
any, having consequential impact on the loss for the year, assets,
liabilities and accumulated losses as at the close of the year, the
amount of adjustment if any, are as explained by the management
presently not ascertainable and therefore, not accounted for.
(e) Other than stated in para "f" below, liability as may arise towards
interest/compound interest/penalty on delayed/non-payment to certain
lenders / trade payables / statutory / workers dues has not been
ascertained and not provided for.
(f) The Company has not provided interest payable of Rs. 459.78 lacs
(Previous Year Rs. 383.15 lacs) in respect of public debentures, Rs.
1059.69 lacs (Previous Year Rs. 705.46 lacs) in respect of secured /
unsecured loans and Rs.377.55 lacs (Previous Year Rs. 341.48 lacs) in
respect of certain other liabilities. As explained, the management is
in discussions with the parties concerned in respect of interest
payable and is hopeful of its waiver.
We further report that without considering the matter referred in
para4(a) to 4(e) above, the effect of which could not be determined,
had the observation made by us in para 4(f) above been considered, the
loss before tax for the year would have beenRs. 2,127.03 lacs (as
against reported loss of Rs. 230.01 lacs), accumulated losses would
have been Rs. 11,096.75 lacs (as against reported figure of Rs.
9,199.73 lacs), other current liabilities would have been Rs 7,713.42
lacs (as against reported figure of Rs 5,816.40 lacs); Previous Year
loss for the year would have been Rs. 1824.63 lacs (as against reported
loss of Rs. 394.54 lacs), accumulated losses would have been Rs.
10,399.78 lacs (as against reported loss of Rs. 8,969.69 lacs) other
current liabilities would have been Rs 7098.74 lacs (as against
reported figure of Rs 5,668.65 lacs)
5. Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us,except for the
possible effects of matters described in the Basis of Qualified Opinion
paragraph,the 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:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) in the case of the Statement of Profit and Loss, of the loss of the
Company 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.
6. Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of sub
section (4A) of Section 227 of the Act, we give in the annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
(a) Subject to what is stated in para 4(d) above,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;
(b) Subject to what is stated in para 4 (b), (d), (e) & (f) above,in
our opinion, proper books of account as required by law have been kept
by the Company so far asappears from our examination of those books;
(c) the Balance Sheet,Statement of Profit and Loss and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
(d) subject to what is stated in para 4(b) above,in our opinion, the
Balance Sheet, Statement of Profit and Loss and Cash Flow Statement
comply with the Accounting Standards notified under the Act read with
the General Circular 15/2013 dated 13th September, 2013 of the Ministry
of Corporate Affairs in respect of section 133 of the Companies Act,
2013;
(e) on the basis of written representations received from the directors
as on March 31, 2014 and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies'' Act, 1956.
Annexure referred to in paragraph 6 (1)of our report of even date on
the Financial Statements as at and for the year ended March 31, 2014
i. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All the fixed assets have been physically verified by the
management at the year end which is considered reasonable and no
material discrepancies were noticed on such verification.
(c) No substantial/major part of fixed assets has been disposed off by
the Company during the year.
ii. (a) The inventory has been physically verified by the management at
the year end which is considered reasonable having regard to the size
of the Company and nature of its business.
(b) The procedures for physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and nature of its business.
(c) The Company is maintaining proper records of inventory. No
discrepancies were noticed on physical verification of inventories as
compared to book records.
iii. Read with what is stated in point (v) below, during the year the
Company has not taken/granted any loans, secured or unsecured, from/to
companies, firms or other parties covered in the register maintained
under Section 301 of the Act.
iv. In our opinion and according to the information and explanations
given to us and read with para (vii) below, having regard to the
explanation that some of the items of fixed assets are of special
nature and suitable alternative source may not always exist for
obtaining comparable quotations, there is an adequate internal control
system commensurate with the size of the Company and the nature of its
business with regard to the purchase of fixed assets and for the sale
of goods and services.During the course of our audit, we have not
observed any major weakness or continuing failure to correct in the
internal control system of the
Company in respect of these areas.
v. We are informed by the management that as per the legal opinion
obtained by them, the transactions with other companies in which
Directors of the Company are also holding the positions as directors in
the other companies (not holding shares exceeding 2% of paid up
capital) are not required to be entered in the register maintained
under sub-section (1) of Section 301 of the Act. In view of above no
entries were required to be recorded in the register maintained under
section 301 of the Act.
vi. No deposits within the meaning of directives issued by the Reserve
Bank of India and Sections 58A and 58AA or any other relevant
provisions of the Act and Rules framed thereunder have been accepted by
the Company.
vii. The Company does not have an internal audit system.
viii. As explained, since plant operations were discontinued from
October 2007, no cost records and accounts as prescribed by the Central
Government under Section 209 (1) (d) of the Act have been maintained.
ix. (a) According to the information and explanations given to us and
according to the books and records as produced to and examined by us,
the Company has been generally regular in depositing undisputed
statutory dues including Provident Fund, Employees'' State Insurance,
Income Tax, Sales Tax, Value Added Tax, Wealth Tax, Service Tax, Custom
Duty, Excise Duty, Cess and other material statutory dues applicable to
it with appropriate authorities and there were no undisputed amounts outstanding as at 31st March, 2014 for a period of more than six months
from the date they became payable except as mentioned below
Name of Statute Nature of Dues Amount Period to which
(Rs.in Lacs) it relates
The Companies Investor Education 164.69 1991-2003
Act, 1956 and Protection Fund
BPMC Act Property Tax 273.68 October 2006
to March 2014
Nmae of Statue Due Date
The Companies 1998-2011
Act, 1956
BPMC Act From October 2006 onwards
* not including interest and other charges as may be leviable owing to
non-payment of the aforesaid amount.
b) There were no dues during the year in respect of Income tax, Sales
tax, State value added tax, Custom duty, Excise duty and Cess which
have not been deposited on account of any dispute except as mentioned
below:
Nature of Dues Year to which Forum where dispute Amount
it relates is pending (Rs.in Lacs)
Sales Tax 1999-2000 Deputy Commissioner 13.49
Sales Tax 2000-2001 Appellate Tribunal 1.91
Excise Duty Oct''2006 CESTAT 62.26
Cess Liability Oct''2007 NMMC 1.18
x . The accumulated losses of the Company at the end of the financial
year exceed 50% of its net worth. The Company has incurred cash losses
during the financial year and in the immediately preceding financial
year.
xi. According to the information and explanations given to us and
considering that certain loans from Financial institutions and Banks
have already been assigned to bodies corporate, the Company has
defaulted in repayment of dues of Rs. 1,478.73 lacs (last installment
due since March 31, 2012) to debenture holders. (Also Refer Para 4(f)
of the main report).
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 during the
year. Therefore, the provisions of paragraph 4 (xii) of the Order are
not applicable to the Company.
xiii. As the Company is not a nidhi/ mutual benefit fund/ society, the
provisions of clause 4(xiii) of the Order is not applicable to the
company.
xiv. As the Company is not dealing or trading in shares, securities,
debentures and other investments the provisions of clause 4(xiv) of the
Order is not applicable to the company.
xv. According to the information and explanations 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, the
Company has not raised any term loan during the year and in recent
past.
xvii. According to the information and explanations given to us and on
an overall examination of the balance sheet and cash flow statements of
the Company, in our opinion, the funds raised on short-term basis by
the Company have not been used for long-term investment.
xviii. The Company has not during the year and in the recent past made
any preferential allotment of shares to parties covered in the Register
maintained under Section 301 of the Act.
xix. The Company has not during the year or in the recent past raised
any money by way of issue of Debentures.
xx. The Company has not raised any money by way of public issues during
the year or in recent past.
xxi. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing standards in India and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
For LODHA & COMPANY
Chartered Accountants
ICAI Firm Registration No: 301051E
A. M. Hariharan
Partner
Membership No. 38323
Place : Mumbai
Date : May 29, 2014
Mar 31, 2013
1. Report on the Financial Statements
We have audited the accompanying financial statements of Unimers India
Limited("the Company"), which comprise the Balance Sheet as atMarch 31,
2013, the Statement of Profit and Loss and the Cash Flow Statement of
the Company for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
2. Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for 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 Standards referred to in sub-section
(3C) of section 211 of the Companies Act, 1956 ("the,Act"). This
responsibility includes the design, implementation and maintenance of
internal control 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.
3. Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An auditinvolves 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 the internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by the Management, 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.
4. Basis of Qualified Opinion
(a) The accumulated losses of the Company as at theyearend exceeds its
entire net worth, however tbeCompany has been advised that since
certain conditions as per the Sick Industrial Companies (Special
Provisions) Act, 1985 were not being met, it was not eligible to make a
reference to BIFR. However, should the legal status as regards the
validity of the closure of the plant change, appropriate steps will
have to be taken by the Company in this regard. Moreover, the plant
operations were suspended since October, 2007 and thereafter formally
closed and workers retrenctied effective from 26th June, 2008. These
financial statements have, however, been prepared by the management on
a "going concern" basis, considering the various revival/restructuring
options being pursued by the management. This being a technical matter
and in view of uncertainty, we are unable to express an opinion as to
whether the Company can now operate as a going concern. However, as
explained, should the Company be unable to continue as a going concern,
the extent ol the effect of the resultant adjustments to tlie
accumulated tosses, assets and liabilities as at the year end and loss
for the year is presently not ascertainable.
(b) The Company has not carried out impairment test as required by
Accounting Standard (AS) 28 "Impairment of Assets", in respect of
Building, Plant & Machinery and Furniture & Fixtures. We are unable to
express an opinion as to when and to what extent the carrying value of
Building, Plant & Machinery and Furniture & Fixtures would be recovered
in view of the suspension of all manufacturing activities since
October, 2007 (subsequently formally closed and workers retrenched
effe''ctive from 26* June, 2008), the impact whereof on the loss for the
year, accumulated losses, assets and liabilities as at the year end is
presently not ascertainable.
(c) Further, we are unable to express an opinion as to when and to what
extent, the carrying value of Stores of Rs.50.29 lacs (Previous year
Rs. 67.05 lacs) would be recovered in view of closure as mentioned
above.
(d) The Company has not yet deposited long outstanding amount of Rs.
164.69 lacs (Previous year Rs. 164.69 Lacs) to the Investor
Education S Protection Fund (IEPF) and consequential unascertained
liability of interest / other charges on the same.
(e) The accounts of certain lenders aggregating to Rs. 4,947.38 lacs
(Previous year Rs.4,997.38 lacs), Securities application money due tor
refund of Rs. 75.21 lacs (Previous Year Rs. 75.21 lacs), Advances from
customers of Rs. 373.58 lacs (Previous Year Rs.423.59 lacs), Trade
Payables of Rs 328.13 lacs (Previous Year Rs, 361.85 Lacs), Bank
balances (Dr.) of Rs 0.33 lacs (Previous Year Rs. 17.82 Lacs), Loans &
Advances recoverable of Rs. 32.18 lacsjPrevious Year Rs. 31.68 Lacs)
being subject to confirmations I reconciliations and adjustments, if
any, having consequential impact on the loss for the year, assets,
liabilities and accumulated losses as at the close of the year, the
amount of adjustment if any, are as explained by the management
presently not ascertainable and therefore, not accounted for.
(f) Other than stated''in para "g" below, liability as may arise towards
interest/compound interest/ penalty on delayed/non-payment to certain
lenders I trade payables I statutory I workers dues has- not been
ascertained and not provided for.
(g) The Company has not provided interest payable of Rs 383.15 lacs
(Previous Year Rs: 306.52 lacs) in respect of public debentures, Rs
705.46 lacs (Previous Year Rs. 383.96 lacs) in respect of secured I
unsecured loans and Rs.341.48 lacs (Previous Year Rs. 15946 lacs) in
respect of certain other liabilities. As explained, the management is
in discussions with the parties concerned in respect of interest
payable and is hopeful of its'' waiver.
We further report that without considering the matter referred in para
4(a) to 4(f) above, the bffect of which -- could not be determined, had
the observation made by us in para 4(g) above been considered, the loss
before tax for the year would have been Rs 1,824.63 lacsjas against
reported loss of Rs. 394.55 lacs), accumulated losses would have been
Rs. 10,399.78 lacs (as against reported figure of Rs.8,969.70 lacs);
Previous Year loss for the year would have been Rs. 4.139.72 lacs (as
against reported loss of Rs. 3,289.79 Lacs), accumulated losses would
have been Rs.9,425.09 lacs (as against reported loss of Rs. 8,575.15
lacs)
5. Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to is,except for the possible effects of matters
described in the Basis of Qualified Opinion paragraph, the financial
statements give the information required by the Act in the manner so
required and give a true and fair vievy 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 atMarch 31,2013;
(b) in the case of the Statement of Profit and Loss, of the loss of the
Company for the year ended on that date, and
(c) in the case of the Cash Flow Statement, of the cash ftowslor the
year ended on that date.
6. Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order*) issued by the Central Government of India, in terms of sub
section (4A) of Section 227 of the Act, we give in the annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
(a) Subject to what is stated in para 4(e) abov&.w have obtained all
the information and explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit;
(b) Subject to what is stated in para 4 (b), (e), (f) & (g) abovejn our
opinion, proper books of account as required by law have been kept by
the Company so far asappears from our examination of those books; .
(c) the Balance Sheet.Statement of Profit and Loss and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
(d) subject to what is stated in para 4(b) above, in our opinion, the
Balance Sheet, Statement of Profit and Loss and the Cash Flow Statement
comply with the Accounting Standards referred to in sub-section (X) of
section 211 of''the Act.
(e) on the basis of written representations received from the directors
as on March 31, 2013 and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, ''from''
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Act.
Annexure referred to In paragraph 6 (1) of our report of even date on
the Financial Statements as at and for the year ended March 31, 2013-
i. (,a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All the fixed assets have been physically verified by the
management at the year end which is considered reasonable and- no
material discrepancies were noticed on such verification.
(c) No substantial/major part of fixed assets has been disposed off by
the Company during the year.
ii. (a) The inventory has been physically verified by the management
at the year end which is considered reasonable having regard to the
size of the Company and nature of its business.
(b) The procedures for physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and nature of its business.
(c) The Company is maintaining proper records of inventory. No
discrepancies were noticed on physical verification of inventories as
compared to book records.
iii. Read with what is stated in point (v) below, during the year the
Company has not taken/granted any loans, secured or unsecured, from/to
companies, firms or other parties covered in the register maintained
under Section 301 of the Act.
iv. In our opinion and according to the information and explanations
given to us and read with para (vii) below, having regard to the
explanation that some of the items of fixed assets are. of special
nature and suitable alternative source may not always exist for
obtaining comparable quotations, there is an adequate internal control
system commensurate with the size of the Company and the nature of its
business with regard to the purchase of fixed assets and for the sale
of goods and services. During the course of our audit, we have not
observed any major weakness or continuing failure to correct in the
internal, control system of the Company in respect of these areas.
v. We are informed by the management that as per the legal opinion
obtained by them, the transactions with
- other companies in which Directors of the Company are also holding
the positions as directors in the other companies {not holding shares
exceeding 2%. of paid up capital) are nor required to be entered in the
register maintained under sub-section (1) of Section 301 of the Act In
view of above no entries were required to be recorded in the register
maintained under section 301 of the Act.
vi. No deposits within the meaning of directives issued by the Reserve
Bank of India and Sections 58A and 58AA or any other relevant
provision!: of the *ct and Rules framed thereunder have, been accepted
by the Company.
vii. The Company does hot have an internal audit system.
viii. As explained, since plant operations were discontinued from
October 2007, no cost records and accounts as prescribed by the Central
Government under Section 209 (1) (d) of the Act have been maintained.
ix. (a) According to the information and explanations given to us and
according to the books and records as produced to and examined by us,
the Company has been generally regular in depositing undisputed
statutory dues including Provident Fund, Employees'' State Insurance,
Income Tax, Sales Tax, Value Added Tax, Wealth Tax, Service Tax, Custom
Duty, Excise Duty, Cess and other material statutory dues applicable to
it with appropriate" authorities and there were no undisputed amounts
outstanding as at 31st March, 2013 for a period of more than six months
from the date they became payable except as mentioned
below:
Name of Statute Nature of Dues Amount Period to which
it Due Date
(Rs. in
Lacs) relates
The Companies Investor Education 164.69 1991-2003 1998-2011
Act, 1956 and Protection
Fund
* not including interest and other charges as may be leviable owing to
non-payment of the aforesaid amount.
b) There were no dues during the year in respect of Income tax, Sales
tax.State value added tax, Custom duty, Excise duty and Cess which have
riot been deposited on account of any dispute except as mentioned
below:
Nature of Dues Year to which Forum where dispute Amount
it relates Is pending (Rs. In Lacs)
Sales Tax 1999-2000 Deputy Commissioner 13.49
Sales Tax 2000-2001 Appellate Tribunal 1.91
Excise Duty Oct 2006 CESTAT 62.26
Cess Liability Oct 2007 NMMC 1.18
x. The accumulated losses of the Company at the end of the financial
year exceed 50% of its net worth. The Company has incurred cash losses
during the financial year and in the immediately preceding financial
year.
xi. According to the information and explanations given to us and
considering that certain loans from Financial institutions and Banks
have already been assigned to bodies corporate, the Company has
defaulted in repayment of dues of Rs. 1,478.73 lacs (last instalment
due since March 31,2012) to debenture holders. (Also Refer Para 4(g)
of the main report).
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 during the
year. Therefore, the provisions of paragraph 4 (xii) of the Order are
not applicable to the Company.
xiii. As the Company is not a nidhi/ mutual benefit fund/ society,.the
provisions of clause 4(xn) of the Order is not applicable to the
company. -
xiv. As the Company is not dealing or trading in shares, securities,
debentures and other investments the provisions of clause 4{xiv) of the
Order is not applicable to the company.
xv. According to the information and explanations 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, the
Company has not raised any term loan during the year and in racent
past.
xvii. According to the information and explanations given io us and on
an overall examination of the balance, sheet and cash flow statements
of the Company, in our opinion, the funds raised on short-term basis by
the Company have not been used for long-term investment.
xviii.The Company has not during the year and in the recent past made
any preferential allotment of shares to parties covered in the Register
maintained under Section 301 of the Act.
xix. The Company has not during the year or in the recent past raised
any money by way of issue of Debentures.
xx. The Company has not raised any money by way of public issues during
the year or in recent past.
xx i. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing standards in India and according to the information and
explanations given''to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
For LODHA & COMPANY
Chartered Accountants
ICAI Firm Registration No: 301051E
A. M. Hariharan
Partner
Membership No. 38323
Place : Mumbai
Date : May 28, 2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of Unimers India Limited
as at 31st March, 2012 and also the statement of Profit & Loss and the
Cash Flow Statement of the Company for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
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. We draw attention to:
a) Note no. (a) and (c) of Note 21 of Notes on Financial Statements -
the Company has incurred loss in the current year as well as in the
preceding year and the accumulated losses as at the year end have
exceeded its entire net worth. The management had received advice to
the effect that certain conditions as per the Sick Industrial Companies
(Special Provisions) Act, 1985 were not being met and hence the Company
was not eligible to make reference to BIFR. However, should the legal
status as regards the validity of the closure of the plant change,
appropriate steps will have to be taken by the Company in this regard.
The plant operations were suspended since October, 2007 and thereafter
closed and workers retrenched effective from 26th June, 2008. These
financial statements have, however, been prepared by the management on
a "going concern" basis, considering the various revival/restructuring
options being pursued by the management. This being a technical matter
and in view of uncertainty, we are unable to express an opinion as to
whether the Company can operate as a going concern. However, as
explained, should the Company be unable to continue as a going concern,
the extent of the effect of the resultant adjustments to the
accumulated losses, assets and liabilities as at the year end and loss
for the year is presently not ascertainable.
b) The Company has not carried out impairment test as required by
Accounting Standard (AS) 28 'Impairment of Assets', particularly in
respect of Building and Plant & Machinery as explained in note (e) of
Note 20 of Significant Accounting Policies. We are unable to express an
opinion as to when and to what extent the carrying value of Building
and Plant & Machinery would be recovered in view of the suspension of
plant operations, the impact whereof on the loss for the year,
accumulated losses, assets and liabilities as at the year end is
presently, not ascertainable.
c) Note no. f(ii)) of Note 21 of the financial statements regarding the
accounts of certain Trade Payables of Rs. 361.85 Lacs, Bank Balances
(Dr) of Rs. 17.82 Lacs and Other Non Current Assets of Rs. 48.38 Lacs
being subject to confirmations, reconciliations, and adjustments, if
any, having consequential impact on the loss for the year, assets,
liabilities and accumulated losses as at the close of the year, the
amounts of adjustment if any, are presently not ascertainable and
therefore not provided for.
d) Note no.(l) of Note 21 of the financial statements regarding the
Company not having deposited the overdue amount of Rs. 164.69 Lacs to
the Investor Education & Protection Fund and consequential liability of
interest / other charges on the same.
e) Further, we are unable to express an opinion as to when and to what
extent the carrying value of Stores and Spares of Rs.67.05 Lacs would
be recovered in view of the suspension of plant operations since
October, 2007 and deterioration of quality, if any.
f) Note no. c(vi)) of Note 21 of the financial statements regarding
non-provision of interest liability aggregating to Rs. 849.93 Lacs on
assigned loans, certain advances and debentures on the basis that as
per management, revised terms are in the process of being negotiated
with the lenders.
g) Without considering the matter referred in para 3(a) to 3(e), the
effect of which could not be determined, had the observations made by
us in para 3(f) above been considered, the loss before tax for the
current year would have been Rs 4,139.72 Lacs (as against reported loss
"of Rs 3,289.79 Lacs).
4. As required by the Companies (Auditor's Report) Order, 2003, issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956 (hereinafter referred to as the 'Act'), we enclose
in the Annexure a statement on the matters specified in paragraphs 4
and 5 of the said Order, to the extent applicable.
5. Further to our comments in the Annexure referred to in paragraph
(4) above, we report that:
a) Subject to what is stated in para 3 (c ) and (f) above ,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.
b) Subject to what is stated in para 3(b), ( c ) and (f) above 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 and the Cash
Flow Statement dealt with by this report are in agreement with the
books of accounts;
d) In our opinion, the Balance Sheet, the statement of Profit and Loss
and the Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in Section 211(3C) of the Act, to the
extent applicable except as stated in Para 3(b) above.
e) On the basis of written representations received from the Directors
as on 31st March, 2012 and taken on record by the Board of Directors,
we report that none of the Directors is disqualified as on 31st March,
2012 from being appointed as a Director in terms of Section 274 (1)(g)
of the Act;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements subject to
what is stated in para 3 above, and read together with Note no 21 (i)
regarding pending approval of Central Government in respect of
managerial remuneration, Note no 21 (j) regarding interest liability in
respect of dues to micro, small and medium enterprises, Note no 21 (k)
regarding appointment of Company Secretary and other notes appearing in
the accompanying 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:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
ii) in the case of the statement of Profit and Loss, of the loss of the
Company for the year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Annexure referred to in paragraph 4 of our report of even date to the
Members of UNIMERS INDIA LIMITED on the financial statements for the
year ended 31st March 2012.
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
audit, we state that:
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) All fixed assets have been physically verified by the management at
the year end which is considered reasonable and no discrepancies were
noticed on such verification.
(c) No substantial part of fixed assets has been disposed of during the
year.
2. (a) The inventory has been physically verified by the management at
reasonable intervals during the year.
(b) The procedures for physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and nature of its business.
(c) The Company is maintaining proper records of inventory. No
material discrepancies were noticed on physical verification of
inventories as compared to book records.
3. Read with what is stated in point 5 below, during the year, the
Company has not taken/granted any loans, secured or unsecured, from/to
companies, firms or other parties covered in the register maintained
under Section 301 of the Act.
4. In our opinion and according to the information and explanations
given to us having regard to the explanations that certain items
purchased are of special nature for which suitable alternative sources
do not exist for obtaining comparative quotations, there is adequate
internal control system commensurate with the size of the Company and
nature of its business, for the purchase of inventory and fixed assets
and for the sale of goods. During the course of our audit, no major
weakness has been noticed in the internal control system.
5. We are informed by the management that as per the legal opinion
obtained by them, the transactions with other companies in which
Directors of the Company and who are also holding the positions as
directors in the other companies (not holding shares exceeding 2% of
paid up capital) are not required to be entered in the register
maintained under sub-section (1) of Section 301 of the Act. In view of
above, there are no entries recorded in the Register maintained under
Section 301 of the Act.
6. The Company has not accepted any deposits within the meaning of
Section 58A, 58AA or any other relevant provisions of the Act and Rules
framed thereunder.
7. During the year, no internal audit has been carried out.
8. On the basis of records produced, we are of the opinion that prima
facie, the cost records and accounts prescribed by the Central
Government under Section 209 (1) (d) of the Act, as applicable have
been maintained. However, we are not required to and thus have not
carried out any detailed examination of such accounts and records, with
a view to ascertain whether these are accurate and complete.
9. (a) According to the information and explanations given to us and
according to the books and records as produced to and examined by us,
the Company has been regular in depositing undisputed statutory dues
including Provident Fund, Employees' State Insurance, Income Tax, Sales
Tax, Value Added Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, Cess and other material statutory dues applicable to it with
appropriate authorities and there were no undisputed amounts
outstanding as at 31st March, 2012 for a period of more than six months
from the date they became payable except as mentioned below:
Name of the statute Nature of dues Amount Period to which the Due date
(Rs. in lacs)* amount relates
The Companies Act, 1956 Investor Education and 164.69 1991-2003
1998-2011
Protection Fund
* not including interest and other charges as may be leviable owing to
non payment of the aforesaid amount.
^b) According to the records of the Company and information and
explanations given to us by the management, the details of disputed
Excise Duty, Custpm Duty, Service Tax, Income Tax, Wealth Tax and Cess
which have not been deposited are as under:
10. 10. The Company's accumulated losses as at 31st March, 2012 are
more than fifty percent of its net worth. The Company has incurred cash
losses during the current financial year and in the immediately
preceding financial year.
11. During the year, the Company has defaulted in repayment of dues to
financial institutions and debentures holders as per details below:
Nature of Dues Amount (Rs. in lacs) Paid On
Financial Institutions
including assigned loans (*) -
Principal 1801.15
Still Pending
Interest 1198.33
Debenture Holders -
Principal 928.85
Still Pending
Interest 549.88
(upto March, 2008)
(*) - Also refer para 3 (f) of the main report.
12. During the year, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. The Company is not a chit fund or a nidhi/mutual fund or a benefit
fund/society. Therefore, the provisions of clause 4(xiii) of the Order
are not applicable to the Company.
14. As the Company is not dealing or trading in shares, securities,
debentures and other investments the provisions of clause 4(xiv) of the
Order is not applicable to the Company.
15. 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.
16. According to the information and explanations given to us, the
term loans were applied for the purpose for which the loans were
obtained.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet and cash flow statements of
the Company, in our opinion, the funds raised on short-term basis by
the Company have not been used for long-term investment.
18. During the year, the Company has not made any preferential
allotment of shares to parties and companies covered and recorded in
the Register maintained under section 301 of the Act.
19. The Company has not issued any debentures during the year or in
the recent past.
20. The Company has not raised any money by public issues during the
year or in the recent past.
21. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India and according to the information and
explanations given to us, we have neither come across any instances of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such case by management.
For LODHA & COMPANY
Chartered Accountants
A. M. Hariharan
Partner
Place: Mumbai Membership No.: 38323
Date: 23-05-2012 Firm Registration No.:301051E
Mar 31, 2010
1. We have audited the attached Balance Sheet of Unimers India Limited
as at 31st March, 2010 and the annexed Profit & Loss Account and also
Cash Flow Statement of the Company for the year ended on that date
annexed thereto. 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 the auditing standards
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. We draw attention to:
(a) Note no. B1 and 04 of Schedule 15 of Significant Accounting
Policies and Notes on Financial Statements. The Company has incurred
loss in the current period as well as in the preceding period and the
accumulated losses as at the period end have exceeded its entire net
worth and reference has to be made to the Board for Industrial and
Financial Reconstruction. However, as per expert opinion obtained the
company is not required to make a reference to BIFR. Besides, plant
operations were suspended since October, 2007 and thereafter formally
closed and workers retrenched effective from 26th June, 2008. These
financial statements have, however, been prepared by the management on
a "going concern* basis, considering the various revival/restructuring
options being actively pursued by the management. This being a
technical matter and in view of uncertainty, we are unable to express
an opinion as to whether the Company can now operate as a going
concern. However, as explained, should the Company be unable to
continue as a going concern, the extent of the effect of the resultant
adjustments to the accumulated losses, assets and liabilities as at the
year end and loss for the year is presently not ascertainable.
(b) Note no. B9 (a) of Schedule 15 of the said Schedule regarding
recognition of deferred tax asset of Rs. 266,117,387 on the basis that
there would be sufficient future income. We are however unable to
express an opinion as to when and to what extent such deferred tax
asset would get reversed (i.e. get utilized). -
(c) Note no. B 8(b) of Schedule 15 of the financial statements
regarding the accounts of certain Creditors of Rs. 34,236,933, Bank
balances (Dr) of Rs. 167,192 and Loans and advances recoverable of Rs.
5,762,782 being subject to confirmations, reconciliations, and
adjustments, if any, having consequential impact on the loss for the
year, assets, liabilities and accumulated losses as at the close of the
year, the amounts of adjustment if any, are presently not.
ascertainable and therefore not provided for.
(d) Note no. B 15 of Schedule 15 regarding Company having not deposited
long outstanding amount of Rs.7,520,885 to the Investor Education &
Protection Fund and consequential liability of interest / other charges
on the same.
(e) Further, we are unable to express an opinion as to when and what
extent the carrying value of Raw Material of Rs 15,07,089 Stores and
Spares of Rs 154,26,907 would be recover in view of the suspension of
production in October, 2007 and deterioration of quality, if any.
(f) Note no. B 4(b) of Schedule 15 of the financial statements
regarding non-provision of interest liability aggregating to Rs.
21,006,646 on assigned loans and debentures on the basis that the
management is expecting waiver thereof.
4. We further report that, without considering matters mentioned in
para 3(a) to (e) above, the effect of which could not be determined,
had the observation made by us in para 3(f) above been considered the
loss for the year, would have been Rs.131,197,143 (as against the
reported figure of Rs 110,190,499), accumulated losses would have been
Rs 381,413,328 (as against the reported figure of Rs 360,406,682) and
secured loans would have been Rs 573,519,103(as against the reported
figure of Rs.552,512,457).
5. As required by the Companies (Auditors Report) Order, 2003, issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956 (hereinafter referred to as the Act), we enclose
in the Annexure a statement on the matters specified in paragraphs 4
and 5 of the said Order, to the extent applicable,
Further to our comments in the Annexure referred to in paragraph (5)
above, we report that:
a) 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.
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 Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
accounts;
d) In our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in Section 211(3C) of the Act, to the
extent applicable.
e) On the basis of written representations received from the Directors
as on 31st March, 2010 and taken on record by the Board of Directors,
we report that none of the Directors is disqualified as on 31st March,
2010 from being appointed as a Director in terms of Section 274 (1)(g)
of the Act;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements subject to
what is stated in paragraphs 3 and 4 above, and read together with Note
no. B 12(a) of Schedule 15 regarding pending approval of Central
Government in respect of managerial remuneration, Note no. B 13
regarding interest liability in respect of dues to micro, small and
medium enterprises, Note no. B 14 of Schedule 15 regarding appointment
of Company Secretary and other notes in the said Schedule and those
appearing elsewhere in the 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:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
ii) in the case of the Profit and Loss Account, of the loss of the
Company for the) year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows of the
"Company for the year ended on that date.
Annexure referred to in paragraph 4 of our report of even date to the
Members of UNIMERS INDIA LIMITED on the financial statements for the
year ended 31st March 2010.
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
audit, we state that:
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of
fixed assets.
(b) All fixed assets have been physically verified by the management at
the year end which is considered reasonable no discrepancies were
noticed on such verification.
(c) No substantial part of fixed assets has been disposed of during the
year.
2. (a) The inventory has been physically verified by the management at
reasonable intervals during the year.
(b) The procedures for physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and nature of its business.
(c) The Company is maintaining proper records of inventory. No material
discrepancies were noticed on physical verification of inventories as
compared to book records.
3. Read, with what is stated in point 5 below, during the year, the
Company has not taken/granted any loans, secured or unsecured, from/to
companies, firms or other parties covered in the register maintained
under Section 301 of the Act.
4. In our opinion and according to the information and explanations
given to us having regard to the explanations that certain items
purchased are of special nature for which suitable alternative sources
do not exist for obtaining comparative quotations, there is adequate
internal control system commensurate with the size of the Company and
nature of its business, for the purchase of inventory and fixed assets
and for the sale of goods. During the course of our audit, no major
weakness has been noticed in the internal control system. ^
5. We are informed by the management that as per the legal opinion
obtained by them, the transactions with other companies in which
Directors of the Company and who are also holding the positions as
directors in the other companies (not holding shares exceeding 2% of
paid up capital) are not required to be entered in the register
maintained under sub-section (1) of Section 301 of the Act. In view of
above, there are no entries recorded in the Register maintained under
Section 301 of the Act. æ
6. The Company has not accepted any deposits within the meaning of
Section 58A, 58AA or any other relevant provisions of the Act and Rules
framed thereunder.
7. During the year Company has not carried out internal audit in view
of closure of the operations.
8. We have broadly reviewed the books of account maintained by the
Company in respect of products where pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause
(d) of sub - section (1) of Section 209 of the Act and are of the
opinion that prima facie, the prescribed accounts and records have been
made and maintained. We have not, however, made a detailed examination
of the records with a view to determine whether they are accurate or
complete.
9. (a) According to the information and explanations given to us and
according to the books and records as produced to
and examined by us, the Company has been regular in depositing
undisputed statutory dues including Provident Fund, Employees State
Insurance, Income Tax, Sales Tax, Value Added tax, Wealth Tax, Service
Tax, Custom Duty; Excise Duty, Cess and other material statutory dues
applicable to it with appropriate authorities and there were no
undisputed amounts outstanding as at 31" March, 2010 for a period of
more than six months from the date they became payable except as
mentioned below:
Name of the
statute Nature of dues Amount Period to
which the Due date
(Rs. In
lacs)* amount relates
The Companies Investor Education 75.21 1991 1998
Act, 1956 and Protection
Fund
* it does not include interest and other charges as may be leviable
owing to npn payment of the aforesaid amount.
(b) According to the records of the Company and information and
explanations given to us by the management, the details of disputed
Excise Duty, Custom Duty, Service Tax, Income Tax, Wealth Tax and Cess
which have not been deposited are as under:
Nature of Dues Year Forum where
dispute is Pending Amount
(Rs)
Sales tax 1998-1999 App. Tribunal 183,795
Sales Tax 1999-2000 Dy. Cpmm 1,349,213
Sales Tax 2000-2001 App. Tribunal 191,264
Sales Tax 2002-2003 Dy. Comm 1,363,375
Excise Duty Oct2006 CESTAT 6,226,499
Cess Liability Oct2007 NMMC 117,785
10. The Companys accumulated losses as at 31" March, 2010 are more
than fifty percent of its net worth. The Company has incurred cash
losses during the current financial year and in the immediately
preceding financial year.
11. During the year, the Company has defaulted in repayment of dues to
financial institutions and debentures holders as per details below:
Nature of Dues Amount (Rs. in lacs) Paid On
Financial Institutions -
Principal 949.03 Still Pending
Interest 817.03
Debenture Holders -
Principal 557.31 Still Pending
Interest 549.88 (upto March,
2008)
(*)- Also refer para 3 (c) of the main report.
12. During the year, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. The Company is not a chit fund or a nidhi/mutual fund benefit
fund/society. Therefore, the provisions of clause 4(xiii) of the Order
are not applicable to the Company.
14. As the Company is hot dealing or trading in shares, securities,
debentures and other investments the provisions of clause 4(xiv) of the
Order is not applicable to the Company.
15. 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.
16. According to the information and explanations given to us, the
term loans were applied for the purpose for which the loans were
obtained.
17. The Company hasnt raised any short term funds during the year.
18. During the year, the Company has not made any preferential
allotment of shares to parties and companies covered and recorded in
the Register maintained under section 301 of the Act.
19. The Company has not issued any debentures during the year or in
the recent past.
20. The, Company has not raised any money by public issues during the
year or in the recent past.
21. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India and according to the information and
explanations given to us, we have neither come across any instances of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such case by management.
For LODHA & COMPANY
Chartered Accountants
R. P. BARADIYA
Partner
Membership No. 44101
Firm Registration No.:301051E
Place : Mumbai
Date : August 18, 2010
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article