Mar 31, 2014
Report on the Financial Statements
We have audited the accompanying financial statements of Unimin India
Limited., (''the Company"), which comprises the Balance Sheet as at
March 31, 2014, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
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.
Auditor''s 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
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 disclosures in the financial slatements 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 control relevant to the entity''s preparation and
fair presentation of the financial slatements 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 accounting
estimates made by management as well as evaluating the overall
presentation of thefinancial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion Basis for
Qualified Opinion
1. The Company has maintained accounts on-Going Concern basis m-spite
of erosion of 100% of the Networth.
2. The Company had written off balance of a creditor amounting to Rs.
24.05 crores in earlier years. To that extent its reserve is overstated
and liability is understated.
3. The Company is not following AS-15 for purpose of valuation and
disclosure of employee benefits
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 the matter
described in the ''Basis for 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 of Statement of Profit and Loss, 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
Emphasis of Matter
a. We draw attention to Note No. 22.2, 22.3 & 22.4 in Notes to
Accounts which describes that the company has received notices from
Sales Tax as well as form Excise department These liabilities are
disclosed under contingent liabilities.
b. Balances of all debtors, creditors and Loans and Advances are
unconfirmed.
c. The Company has not complied with TDS provisions under the Income
Tax Act Our opinion Is not qualified in respect of these matters
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 AcL 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. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit
b. 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
those books
b. The company does not have any branches. Hence requirement of report
on the accounts of the branch offices under section 228 is not
applicable
c. The Balance Sheet Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are In agreement with the books of
account
d. in our opinion, the Balance Sheet. Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards notified under
the Companies Act 1956 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. 2013except for the matter described
in the Basis for Qualified Opinion paragraph;
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 AcL 1956.
f Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies AcL 1956. nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE REFERRED TO IN PARAGRAPH 1 UDER THE HEADING OF ''REPORT ON
OTHER LEGAL AND REGULATORY REQUIREMENTS'' OF AUDITOR''S REPORT OF EVEN
DATE TO THE MEMBERS OF UNIMIN INDIA LIMITED ON THE ACCOUNTS FOR
THE YEAR ENDED 31ST MARCH, 2014.
i. In Respect of its fixed Assets:
a. The Company has maintained records to show particulars, including
quantitative details and situation, of its Fixed assets. However these
records are incomplete.
b. As explained to us, fixed assets of the Company are physically
verified by the Management during the year in a phased periodical
manner, which In our opinion is reasonable having regard to the size of
the Company and the nature of its assets. Pursuant to the program,
physical verification was carried out during the year and no material
discrepancies were noticed.
c. There was no substantial disposal of fixed assets during the year.
II. In respect on its inventories:
a. As informed to us. inventories have been physically verified by the
management at regular intervals 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. The Company has maintained proper records of inventories. As
explained to us. there was no material discrepancies noticed on
physical verification of Inventory as compared to the book records.
iii. According to the information and explanation given to us, the
company has neither granted nor accepted loans from any 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, there is an adequate internal control system commen surate
with the size of the Company and the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods/services.
During the course of our audit, we have not observed any major
weaknesses in internal controls.
v. In respect of transactions covered under Section 301 of the
Companies Act, 1956:
a. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements that needed to be entered into the register maintained
under section 301 of the act have been so entered.
b. In our opinion and according to the information and explanations
given to us. transactions aggregating during the year to Rs. 5,00,000/-
or more in respect of each party, have been made at prices which are
reasonable having regard to prevailing market prices for such goods and
materials available with the Company or prices at which transactions
for similar goods have been made with other parties at the relevant
time.
vi. The company has not accepted any deposits from public. Therefore,
the provisions of Clause (vi) of paragraph 4 of the Order are not
applicable to the Company.
vii. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
viii. The maintenance of cost records is not prescribed by the Central
Government of India under Section 209 (1) (d) of the Act in case of the
Company. Therefore, the provisions of Clause (viii) of paragraph 4 of
the Order are not applicable to the Company.
ix. In respect of Statutory dues
a. According to the books and records as produced and examined by us
in accordance with generally accepted auditing practices in India and
also based on Management representations, undisputed statutory dues in
respect of Provident Fund, Employees'' Stale Insurance dues, Investor
Education and Protection Fund, Income Tax, Wealth Tax, and other
material statutory dues have gener ally been regularly deposited, by
the Company during the year with the appropriate authorities in India
with the exception of Fringe Benefit Tax of Rs. 10,24,846/-.These dues
are outstanding for a period of more than six months.
b. As at March 31, 2014, there have been no disputed dues which have
not been deposited with the respective authorities in respect of Income
Tax, Wealth tax, Sales Tax and Cess except disputed Excise Dues for Rs.
330.47 Lacs for which the Company has preferred an appeal before CESTAT
and in respect of the same CESTAT has ordered for pre-deposit of Rs. 30
lakhs. The Same has been deposited by the Company in the month of
September 2006 and the Compliance is reported to CESTAT. As on date,
the Companies Appeal is pending hearing with CESTAT Ahmedabad and the
Date of Such hearing was on 22nd September 2009.This was further
adjourned many times and in order dated 09th may 2011, CESTAT set aside
the impugned order and remanded the matter back to adjudicating
authority for fresh decision.
Further, there remains sales tax dues disputed with sales tax
department. Daman relating to declaration forms, late submission of
returns, short payment of sales tax for the period from 01st April 2002
till 31st March 2008 amounting to Rs 5,97,89,904/-. However in opinion
of the management the demand of Rs 3,99,21,945/- is related to the
Export Sales for the period from 01/04/02 to 31/03/05.
x. The Company has accumulated losses as at March 31, 2014, The Net
worth of the Company is fully eroded as on March 31, 2014 and therefore
a reference had been made to BIFR as per the provisions of Sick
Industrial Companies (Special Provisions) Act, 1985 (SICA) and the
company has was duly registered under BIFR The Registration No. under
BIFR is 44/2006 subsequently the company has been declared a sick
company under SICA vide BIFR''s order dated 21.02.2007. The company has
not incurred cash loss during the current year and also preceding year.
xi. The company has not taken any loan from banks or financial
institutions. Hence provisions of Clause (xi) of paragraph 4 of the
Order are not applicable to the Company.
xii. Based on our audit procedures and according to the information
and explanation given to us, no loans and advances have been granted by
the Company on the basis of security by way of pledge of shares,
debentures and other securities.
xiii According to information & explenation given to us, the Company is
not a chit fund / nidhi / mutuel benefit fund/ society. Therefore,
xiv. According to information & explanation given to us, the Company
has not dealt or traded in shares, securities, debentures or other
investments during the year.
xv. The Company has not given any guarantees for loans taken by others
from banks or financial institutions during the year. There fore, the
provisions of Clause (xv) of paragraph 4 of the Order are not
applicable to the Company.
xvi. Based on our audit procedures and according to the information
and explanation given to us, we are of the opinion that Company has not
taken any term loans.
xvii. According to the information & explanation given to us and on
overall examination of the financial statements of the company, we are
of the opinion that, prima facie short term funds have not been used
for long term purpose,
xviii. The Company has not made any preferential allotment to any
parties covered in the register maintained U/S. 301.
xix. The Company has not issued any debentures during the year.
Therefore, the provisions of Clause (xix) of paragraph 4 of the Order
are not applicable to the Company.
xx. The Company has not raised any money by public issue during the
year. Therefore, the provisions of Clause (xx) of paragraph 4 of the
Order are not applicable to the Company.
xxi. Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the course of our audit.
Place: Mumbai Jayesh Sanghrajka For Jayesh Sanghrajka & Co.
Date:04th Partner Chartered Accountants
September, 2014. M. No. 037430 Firm''s Reg. No. 104184W
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Unimin India
Limited ("the Company"), which comprise the Balance Sheet as at March
31, 2013, and the Statement of Profit and Loss and Cash Flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position and
financial performance and Cash Flow Statement 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.
Auditor''s 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
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 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 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 ac- counting estimates made by 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.
Opinion
Subject to Clause T below In our opinion and to the best of our
information and according to the explanations given to us, 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, 2013;
b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date;
c) In the case of the cash flow statement, of the 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, 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) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit,
b) 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 those
books and proper returns adequate for the purposes of our audit have
been received from branches not visited by us;
c) The Balance Sheet and Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account and with the returns received from branches not visited by us;
d) In our opinion, the Balance Sheet and Statement of Profit and Loss,
and Cash Flow Statement comply with theAccount- ing Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1P56;
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 Companies Act, 1956;
f) 1. The Company has maintained accounts on-going concern basis
inspite of erosion of 100% of the Networth.
2. Amount Written off due to supplier of plant in earlier years to the
extent of Rs. 24,04,61,664/- written off in the earlier years To this
extent the liability and assets are understated. (Refer Clause No 7 in
Notes to Accounts).
3. Notices under various Section was received from the Sales Tax Dept.
Daman during the Year relating to Declaration Forms, late submission of
Returns, Short payment of sales Tax for the period from 01/04/02 to
31/03/08 amounting to approx Rs. 5,97.89,904/ -.(Refer Note No.11 in
Notes to Accounts).
4. The amount of Loans and Advances are unconfirmed and doubtful of
Recovery.
5. Stock has been undervalued by Rs. 4,17,140/- only on account of
non-use of stock related to exports, which cannot be exported on
account of expiry of Export Certificate.
6. Company is not following AS-15 for purpose of valuation and
accounting of gratuity.
7. Company is not following AS-28 in respect of Accounting for
impairment of assets.
8. Company has not deducted TDS on Auditors Remuneration.
ANNEXURE REFERRED TO IN PARAGRAPH 1 UDER THE HEADING OF ''REPORT ON
OTHER LEGAL AND REGULATORY REQUIREMENTS'' OF AUDITOR''S REPORT OF EVEN
DATE TO THE MEMBERS OF CAPACITE INFRAPROJECTS PRIVATE LIMITED ON THE
ACCOUNTS FOR THE YEAR ENDED 31ST MARCH, 2013.
i. In Respect of its fixed Assets:
a. The Company has maintained incomplete records to show particulars,
including quantitative details and situation, of its fixed assets.
b. As explained to us, fixed assets of the Company are physically
verified by the Management during the year in a phased periodical
manner, which in our opinion is reasonable having regard to the size of
the Company and the nature of its assets. Pursuant to the program,
physical verification was carried out during the year and no material
discrepancies were noticed.
c. There was no substantial disposal of fixed assets during the year.
ii. In Respect of its inventories :
a. The management has conducted physical verification of inventory at
reasonable intervals during the year.
b. 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. The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
iii. According to the information and explanation given to us. In
respect of Loan given to the company listed in register maintained
under section 301 of the Companies Act, 1956, it may be noted that
there are no such loans given.
v. 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, fixed assets and for the sale of goods/services.
During the course of our audit, we have not observed any major
weaknesses in internal controls.
v. In respect of transactions covered under Section 301 of the
Companies Act, 1956:
a. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements that needed to be entered into the register maintained
under section 301 of the act have been so entered.
b. In our opinion and according to the information and explanations
given to us, transactions aggregating during the year to Rs. 5, 00,
000/- or more in respect of each party, have been made at prices which
are reasonable having regard to prevailing market prices for such goods
and materials available with the Company or prices at which
transactions for similar goods have been made with other parties at the
relevant time.
vi. The company has not accepted any deposits from public. Therefore,
the provisions of Clause (vi) of paragraph 4 of the Order are
not applicable to the Company. vii. In our opinion, the Company has
an internal audit system commensurate with its size and nature of its
business. viii. The maintenance of cost records is not prescribed by
the Central Government of India under Section 209 (1) (d) of the Act in
case - of the Company. Therefore, the provisions of Clause (viii) of
paragraph 4 of the Order are not applicable to the Company. ix. In
respect of Statutory dues
a. According to the books and records as produced and examined by us
in accordance with generally accepted auditing practices in India and
also based on Management representations, undisputed statutory dues in
respect of Provident Fund, Employees'' State Insurance dues, Investor
Education and Protection Fund, Income Tax, Wealth Tax, and other
material statutory dues have generally been regularly deposited, by the
Company during the year with the appropriate authorities in India with
the exception of Fringe Benefit Tax of Rs. 10,24,846/-. These dues are
outstanding for a period of more than six months.
b. As at March 31, 2011, there have been no disputed dues which have
not been deposited with the respective authorities in respect of Income
Tax, Wealth tax, Sales Tax and Cess except disputed Excise Dues for Rs.
330.47 Lacs for which the Company has preferred an appeal before CESTAT
and in respect of the same CESTAT has ordered for pre-deposit of Rs. 30
lakhs the Same has been deposited by the Company in the month of
September 2006 and the Compliance is reported to CESTAT. As of Date the
Companies Appeal is pending hearing with CESTAT Ahmedabad and the Date
of Such hearing was on 22nd September 2009.This was further adjourned
many times and in order dated 09th may 2011,CESTAT set aside the
impugned order and remanded the matter back to adjudicating authority
for fresh decision.
c. Further, there remains sales tax dues disputed with sales tax
department. Daman relating to declaration forms, late submission of
returns, short payment of sales tax for the period from 01st April 2002
till 31st March 2008 amounting to Rs 5,97,89,904/-. However in opinion
of the management the demand of Rs 3,99,21,945/- is related to the
Export Sales for the period from 01/04/ 02 to 31/03/05.
x. The Company has accumulated losses as at March 31. 2013, The Net
worth of the Company is almost eroded as on 31st March 2011 and
therefore a reference had been made to BIFR as per the provisions of
Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) and the
company has was duly registered under BIFR The Registration No. under
BIFR is 44/2006 subsequently the company has been declared a sick
company under SICA vide BIFR''s order dated 21.02.2007. The company has
incurred cash ioss during the year and also in the preceding year.
xi. Based on our audit procedures and according to the information and
explanation given to us, we are of the opinion that company has not
defaulted in repayment of dues to banks or financial institutions.
xii. Based on our audit procedures and according to the information
and explanation given to us, no loans and advances have een granted by
the Company on the basis of security by way of pledge of shares,
debentures and other securities.
xiii. According to information & explanation given to us, the Company
is not a chit fund / nidhi /mutual benefit fund/ society. Therefore,
the provisions of clause (xiii) of paragraph 4 of the Order are not
applicable to the Company.
xiv. According to information & explanation given to us, the Company
has not dealt or traded in shares, securities, debentures or other
investments during the year.
xv. The Company has not given any guarantees for loans taken by others
from banks or financial institutions during the year. Therefore, the
provisions of Clause (xv) of paragraph 4 of the Order are not
applicable to the Company.
xvi. Based on our audit procedures and according to tr-a information
and explanation given to us, we are of the opinion that Company has not
taken any term loans.
xvii. According to the information & explanation given to us and on
overall examination of the financial statements of the company, we are
of the opinion that, prima facie short term funds have not been used
for long term purpose.
xvSi. The Company has not made any preferential allotment to any
parties covered in the register maintained U/S. 301.
xix. The Company has not issued any debentures during the year.
Therefore, the provisions of Clause (xix) of paragraph 4 of the Order
are not applicable to the Company.
xx. The Company has not raised any money by public issue during the
year. Therefore, the provisions of Clause (xx) of paragraph 4 of the
Order are not applicable to the Company.
xxi. Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the course of our audit.
For Jayesh Sanghrajka & Co.
Chartered Accountants
Place :- Mumbai Firms Reg. No. 104184W
Date:- 2nd September 2013. -sd-
Jayesh Sanghrajka
(Partner)
M. No. 037430
Mar 31, 2012
We have audited the attached Balance Sheet of M/S. UNIMIN INDIA LTD. as
at 31st March, 2012 and also the Profit & Loss A/c for 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.
We have conducted our audit in accordance with 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As Per information and explanation given to us & Audit Report
required by the Companies (Auditor's Report) Order, 2003 issued by the
Company Law Board in terms of Section 227(4A) of the Companies Act,
1956, we enclose in the annexure, a statement on matters specified in
paragraph 4 & 5 of the said order.
2. Further to our comments in the annexure referred to in paragraph
(1) above.
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of the
audit.
b. In our opinion, proper books of accounts, as required by law have
been kept by the Company so far as appears from our examination of
those books.
c. The Balance Sheet & Profit & Loss Account referred to in this
report are in agreement with the books of accounts.
d. In our opinion, the attached Balance Sheet as at March 31,2012 and
the Profit and Loss Account for the year ended on that date comply with
the Accounting Standards Referred to in Sub-Section 3 (c) of Section
211 of the Companies Act, 1956.
e. On the basis of written representations received from the
directors, as on 31" March 2012, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31" March 2012 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956.
f. Subject to Clause 'g' below, in our opinion and to the best of our
information and according to the explanations given to us the said
accounts, read together with significant accounting policies and other
notes thereon give the information required by Companies Act, 1956 (As
amended) in the manner so required and give a true and fair view:
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 Profit & Loss Account of the loss of the
Company for the year ended on that date.
iii. In the case of the cash flow statement, of the cash flows for the
year ended on the date.
g. 1. The Company has maintained accounts on-going concern basis
inspite of erosion of 100% of the Networth.
2. Amount Written off due to supplier of plant in earlier years to the
extent of Rs.24,04,61,664/ - written off in the earlier years. To this
extent the liability and assets are understated. (Refer Clause No,7 in
Notes to Accounts).
3. Notices under various Section was received from the Sales Tax Dept.
Daman during the Year relating to Declaration Forms, late submission of
Returns, Short payment of sales Tax for the period from 01/04/02 to
31.03.08 amounting to approx Rs.5,97,89,904/- (Refer Note No.10 in
Notes to Accounts)
4. The amount of Debtors and Loans and Advances are unconfirmed and
doubtful of Recovery.
5. Stock has been undervalued by 78%, i.e by Rs. 58,56,519/-only on
account on non-use of stock related to exports, which cannot be
exported on account of expiry of Export Certificate.
6. Company is not following AS-15 for purpose of valuation and
accounting of gratuity.
7. Company is not following AS-28 in respect of Accounting for
impairment of assets.
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF AUDITOR'S REPORT OF EVEN DATE TO
THE MEMBERS OF UNIMIN INDIA LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED
MARCH 31, 2012.
1. The Company has maintained incomplete records to show particulars,
including quantitative details and situation, of its fixed assets. We
have been informed that the fixed assets of the Company are physically
verified by the Management according to a phased program designed to
cover all the items over a period of time, which in our opinion, is
reasonable having regard to the size of the Company and the nature of
its assets. Pursuant to the program, physical verification was carried
out during the year and no material discrepancies were noticed.
2. The inventory of the Company has been physically verified by the
Management during the year.
3. In our opinion, the procedures of physical verification of stocks
followed by the Management are reasonable and adequate in relation to
the size of the Company and nature of its business.
4. The Company has maintained proper records of inventory and there
were no material discrepancies noticed between the physical stocks and
the book stocks. However as no movement was recorder in inventory in
current financial year, the records are not updated to the extent.
5. In respect of Loan given to the company listed in register
maintained under section 301 of the Companies Act, 1956, it may be
noted that there are no such loans are given.
6. There are adequate internal control procedures commensurate with
the size of the Company and the nature of its business with regard to
the purchases of inventories, fixed assets and sale of goods.
7. The Company has not accepted any deposits under the provisions of
Section 58A and 58AA of the Act and the rules framed there under.
8. In our opinion, the Company's present internal audit system is
commensurate with its size and nature of business.
9. In the case of the company the maintenance of cost records has not
been prescribed by the Central Government of India under Section 209
(1)(d) of the Act.
10. According to the books and records as produced and examined by us
in accordance with generally accepted auditing practices in India and
also based on Management representations, undisputed statutory dues in
respect of Provident Fund, Employees'State Insurance dues, Investor
Education and Protection Fund, Income Tax, Wealth Tax, and other
material statutory dues have generally been regularly deposited, by the
Company during the year with the appropriate authorities in India with
the exception of Fringe Benefit Tax of Rs. 10,24,846/-.These dues are
outstanding for a period of more than six months.
As at March 31, 2012, there have been no disputed dues which have not
been deposited with the respective Authorities in respect of Income
Tax, Wealth tax and Cess except disputed Excise Dues for Rs. 330.47
Lacs for which the Company has preferred an appeal before CESTAT and in
respect of the same CESTAT has ordered for pre-deposit of Rs. 30 lakhs
the Same has been deposited by the Company in the month of September
2006 and the Compliance is reported to CESTAT. As of Date the Companies
Appeal is pending hearing with CESTAT Ahmedabad and the Date of Such
hearing was on 22nd September 2009. This was further adjourned many
times and in order dated 091h May 2011, CESTAT set aside the impugned
order and remanded the matter back to adjudicating authority for fresh
decision.
Further, there ramains sales tax dues disputed with sales tax
department, Daman relating to declaration forms, late submission of
returns, shot payment of sales tax for the period from 01st April 2002
till 31st March 2008 amounting to Rs. 5,97,89,904/-.However in opinion
of the management the demand of Rs.3,99,21,945/-is relatsd to the
export Sales for the period 01/04/02 to 31/03/05.
11. The Company has accumulated losses as at March 31, 2011, The Net
worth of the Company is almost eroded as on 31" March 2011 and
therefore a reference had been made to BIFR as per the provisions of
Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) and the
company has was duly registered under BIFR The Registration No. under
BIFR is 44/2006 subsequently the company has been declared a sick
company under SICA vide BIFR's order dated 21.02.2007. The company has
incurred cash loss during the year and also in the preseding year.
12. The Company has not granted any loans or advances on the basis of
security byway of pledge of shares, deben- tures and other securities.
13. In our opinion, considering the nature of activities carried on by
the Company during the year, the provisions of any special statute
applicable to chit fund/ nidhi / mutual benefit fund/ societies are not
applicable to it.
14. On the basis of the review of utilisation of funds pertaining to
term loans on overall basis and related information as made available
to us, the term loans taken by the Company have been applied for the
purposes for which they were obtained.
15 The Company has not dealt or traded in any shares, securities,
debentures or other investments during the year. Shareholding pattern
of promoters of the company has undergone change details of which is
provided below .
Category No. of shares No. of shares
Held As Held As % of shares
Promoters on 31st March on 31st March
2011 2012 increased/
(offloaded)
Indian Promoters 5257369 5257369
Persons acting in Concert 4748658 4748658
Foreign 0 0
Sub Total 10006027 10006027
16. The Company has not given any guarantees for loans taken by others
from banks or financial institutions.
17. On the basis of the review of utilisation of funds which is based
on overall examination of the balance sheet of the company, related
information as made available to us and as represented to us by the
Management, funds raised on short term basis have not been used for
long term investment.
18. The company has not made preferential allotment of shares to
parties and company covered in the register maintained under Section
301 of the Act during the year.
19 The Company has not issued any Debentures during the year. 20. The
Company has not raised any money by public issue during the year.
21 As per the information and explanations given to us and on the basis
of examination of records, no material fraud on or by the Company was
noticed or reported during the year.
For and on behalf of
Place :- Mumbai Jayesh Sanghrajka & Co
-sd-
Date :- 5th September, 2012 Chartered Accountants
Jayesh Sanghrajka
(Partner)
Mar 31, 2010
We have audited the attached Balance Sheet of M/S. UNIMIN INDIA LTD. as
at 31st March, 2010 and also the Profit & Loss A/c for 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.
We have conducted our audit in accordance with 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As Per information and explanation given to us & Audit Report
required by the Companies (Auditors Report) Order, 2003 issued by the
Company Law Board in terms of Section 227(4A) of the Companies Act,
1956, we enclose in the annexure, a statement on matters specified in
paragraph 4 & 5 of the said order.
2. Further to our comments in the annexure referred to in paragraph
(1) above.
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of the
audit.
b. In our opinion, proper books of accounts, as required by law have
been kept by the Company so far as appears from our examination of
those books.
c. The. Balance Sheet & Profit & Loss Account referred to in this
report are in agreement with the books of accounts.
d. In our opinion, the attached Balance Sheet as at March 31,2010 and
the Profit and Loss Account for the year ended on that date comply with
the Accounting Standards Referred to in Sub-Section 3 (c) of Section
211 of the Companies Act, 1956.
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 clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956.
f. Subject to Clause g below, in our opinion and to the best of our
information and according to the explanations given to us the said
accounts, read together with significant accounting policies and other
notes thereon give the information required* by Companies Act, 1956 (As
amended) in the manner so required and give a true and fair view:
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 & Loss Account of the loss of the
Company for the year ended on that date.
g. 1. Amount Written off due to supplier of plant In earlier years to
the extent of Rs.24,04,61,664/- written off In the earlier years. To
this extent the liability and assets are understated. (Refer Clause
No,7 In Notes to Accounts).
2. Notices under various Section was received from the Sales Tax Dept.
Daman during the Year relating to Declaration Forms, late submission of
Returns, Short payment of sales Tax for the period from 01/04/02 to
31.03.08 amounting to approx Rs.5,97,89,904/- (Refer Note No.10 In
Notes to Accounts)
3. The amount of Debtors and Loans and Advances are unconfirmed and
doubtful of Re- covery.
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF AUDITORS REPORT OF EVEN DATE TO
THE MEMBERS OF UNIMIN INDIA LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED
MARCH 31, 2010.
1. The Company has maintained incomplete records to show particulars,
including quantitative details and situation, of its fixed assets. We
have been informed that the fixed assets of the Company are physically
verified by the Management according to a phased program designed to
cover all the items over a period of time, which in our opinion, is
reasonable having regard to the size of the Company and the nature of
its assets. Pursuant to the program, physical verification was carried
out during the year and no material discrepancies were noticed.
2. The inventory of the Company has been physically verified by the
Management during the year.
3. In our opinion, the procedures of physical verification of stocks
followed by the Management are reasonable and adequate in relation to
the size of the Company and nature of its business.
4. The Company has maintained proper records of inventory and there
were no material discrepancies noticed between the physical stocks and
the book stocks.
5. In respect of Loan given to the company listed in register
maintained under section 301 of the Companies Act, 1956, It may be
noted that there are no such loans are given.
6. There are adequate internal control procedures commensurate with
the size of the Company and the nature of its business with regard to
the purchases of inventories, fixed assets and sale of goods.
7. The Company has not accepted any deposits under the provisions of
Section 58A and 58AA of the Act and the rules framed there under.
8. In our opinion, the Companys present internal audit system is
commensurate with its size and nature of business.
9. In the case of the company the maintenance of cost records has not
been prescribed by the Central Government of India under Section 209(1
)(d) of the Act.
10. According to the books and records as produced and examined by us
In accordance with generally accepted auditing practices in India and
also based on Management representations, undisputed statutory dues in
respect of Provident Fund, Employees State Insurance dues, Investor
Education and Protection Fund, income Tax, Wealth Tax, and other
material statutory dues have generally been regularly deposited, by the
Companft during the year with the appropriate authorities in India with
the exception of Fringe Benefit Tax of Rs. 10,24,8457 These dues are
outstanding for a period of more than six months.
11. As at March 31, 2010, there have been no disputed dues which have
not been deposited with the respective Authorities in respect of Income
Tax, Wealth tax, Sales Tax and Cess except disputed Excise Dues for Rs.
330.47 Lacs for which the Company has preferred an appeal before CESTAT
and in respect of the same CESTAT has ordered for pre-deposit of Rs. 30
lakhs the Same has been deposited by the Company in the month of
September 2006 and the Compliance is reported to CESTAT. As of Date the
Companies Appeal is pending hearing with CESTAT Ahmedabad and the Date
of Such hearing was on 22"* September 2009. which was adjourned to 27*
July 2010 and was further adjourned to 07* Sept 2010.
12. The Company has accumulated losses as at March 31,2010, The Net
worth of the Company is almost eroded as on 31* March 2010 and
therefore a reference had been made to BIFR as per the provisions of
Sick Industrial Companies (Special Provisions) Act, 1985 (StCA) and the
company has was duly registered under BIFR The Registration No. under
BIFR is 44/2006 subsequently the company has been declared a sick
company under SIGA vide BIFRs order dated 21.02.2007.
13. The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, deben- tures and other securities.
14. in our opinion, considering the nature of activities carried on by
the Company during the year, the provisions of any special statute
applicable to chit fund/ nidhl / mutual benefit fund/ societies are not
applicable to it.
15. The Company has not dealt or traded in any shares, securities,
debentures or other investments during the yea.
16. The Company has not given any guarantees for loans taken by others
from banks or financial institutions.
17. On the basis of the review of utilisation of funds pertaining to
term leans on overall basis and related information. as made available
to us, the term loans taken by the Company have been applied for the
purposes for which the- were obtained.
18. On the basis of the review of utilisation of funds which is based
on overall examination of the balance sheet of the company, related
information as made available to us and as represented to us by the
Management, funds raised on short term basis have not been used for
long term investment.
19. The company has not made preferential allotment of shares to
parties and company covered In the register maintained under Section
301 of the Aet during the year.
20. The Company has not issued any Debentures during the year.
21. The Company has not raised any money by public issue during the
year.
22. As per the information and explanations given to us and on the
basis of examination of records, no material fraud on or by the Company
was noticed or reported during the year.
For JAYESH SANGHRAJKA & CO.,
Chartered Accountants
PLACE :-MUMBAI jayesh Sanghrajka
DATED: -25th August 2010 (Partner)
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