Mar 31, 2018
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of UDAIPUR CEMENT WORKS LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in equity for the year then ended, and a summary of significant accounting policies and other explanatory information (herein after referred to as "standalone Ind AS Financial Statements").
Management''s Responsibility for the Standalone Ind AS 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 standalone Ind AS financial statements that give a true and fair view of the state of affairs (financial position), loss (financial performance including other comprehensive income), cash flows and changes in equity of the Company in accordance with the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India.
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 standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these standalone Ind AS 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 of the standalone Ind AS financial statements 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 standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS 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 standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS 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 including the Ind AS, of the state of affairs (financial position) of the Company as at 31st March, 2018 and its loss (financial performance including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Other Matters
The comparative standalone Ind AS financial statements of the Company for financial year ended on 31stMarch, 2017 included in these standalone financial statements have been audited by predecessor auditors whose report for the year ended on 31st March, 2017 dated May 10th, 2017 expressed an unmodified opinion on those financial statements.
Our opinion on the standalone financial statements and our report on Other Legal and Regulatory Requirements below is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of section 143 (11) of the Act, we give in the Annexure ''A'' a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the 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 it appears from our examination of those books;
(c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act read with relevant rule issued thereunder;
(e) On the basis of written representations received from the directors as on 31st March, 2018 and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 from being appointed as a director in terms of section 164(2) of the Act;
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in Annexure''B''. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting; and
(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, as amended, 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 standalone Ind AS financial statements - Refer Note 45 to the standalone Ind AS financial statements;
ii. The Company did not have any long term contracts including any 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.
"Annexure - A" to the Auditors'' Report
(Referred to in Paragraph 1 under the heading "Report on other legal and regulatory requirements" of our report of even date)
1) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) According to the information and explanations given to us, fixed assets have been physically verified by the management in a phased periodical manner which in our opinion is reasonable having regard to the size of the Company and nature of its assets. No material discrepancies were noticed on such verification.
(c) Based upon the audit procedure performed and according to the records of the Company, the title deeds of all the immovable properties are held in the name of the Company.
2) In respect of its inventories:
(a) The management has physically verified the inventories. In our opinion, the frequency of verification is reasonable.
(b) The discrepancies noticed on verification between the physical stocks and the book records were not material and such discrepancies have been properly dealt with in the books of accounts.
3) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Act. Accordingly, the provisions of clause 3(iii) (a) to (c) of the order are not applicable to the company and hence not commented upon.
4) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
5) According to the information and explanations given to us, the Company has not accepted any deposit from the public during the year in terms of the provisions of section 73 to 76 of the Act or any other relevant provisions of the Companies Act, 2013 and the rules made thereunder.
6) We have broadly reviewed the accounts and records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014 read with Companies (Cost Records and Audit) Amendment Rules, 2014specified by the Central Government under Section 148 of the Act, and are of the opinion that prima facie, the prescribed Cost records have been made and maintained. We have, however, not made a detailed examination of the records with a view to determine whether they are accurate or complete.
7) (a) According to the information and explanations given to us, the Company has generally been regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, value Added Tax, Service Tax, Goods and Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues applicable to it with the appropriate authorities.
(b) According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March, 2018 for a period of more than six months from the date they become payable.
According to the information and explanations given to us, the details of disputed amount of Income Tax, Value Added Tax, Sales Tax, Excise Duty, Custom Duty and Service Tax not deposited by the Company on account of disputes are as follows:
Name of the statute |
Nature of the dues |
Period |
Forum where dispute is pending |
Amount (in Rs.) |
Central Excise Act |
Excise Duty |
1995-96 |
High Court |
4,40,017 |
Excise Duty (Interest) |
2000-01 |
Assistant commissioner Central Excise, Udaipur |
2,81,325 |
|
Excise Duty |
2017-18 |
Assistant Commissioner, Central Excise & Service Tax, Udaipur |
23,90,020 |
|
Excise Duty (Interest) |
2017-18 |
Assistant Commissioner Central Excise & Service Tax, Udaipur |
21,47,679 |
|
Excise Duty (Penalty) |
2017-18 |
Assistant Commissioner, Central Excise & Service Tax, Udaipur |
5,97,505 |
|
Excise Duty |
2017-18 |
Assistant Commissioner, Central Excise & Service Tax, Udaipur |
69,78,574 |
|
Service Tax Act |
Service Tax |
1997-98 |
Assistant CommissionerExcise (S.T.) |
66,05,892 |
Sales Tax Act |
Sales Tax |
1999-2000 |
Assistant Commissioner (Comm. Tax) |
8,14,000 |
Sales Tax (Interest) |
1996-97, 1997-98, 1998-99 |
Assistant Commissioner(Comm. Tax) |
9,11,000 |
|
Sales Tax |
1996-97 |
Assistant Commissioner (Comm. Tax) Circle B Jammu |
25,04,900 |
8) Based on the information and explanations given to us, we are of the opinion that the Company has not defaulted in repayment of dues to the financial institutions, banks, governments or debenture holders during the year.
9) The company has not raised any money by way of initial public offer, further public offer (including debt instruments) during the year except for Inter Corporate Loan and the same was utilized for the purpose for which it was raised.
10) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company or no material fraud on the Company by its officers or employees has been noticed or reported during the year.
11) In our opinion, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
12) The Company is not a Nidhi Company. Therefore, the provisions of clause 3(xii) of the Order are not applicable to the Company.
13) In our opinion, all transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and the details have been disclosed in the Standalone Ind AS Financial Statements, as required by the applicable Indian accounting standards.
14) The company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year except as stated in Note No. 15 to the Standalone Financial Statements.
15) According to the information and explanations given to us and on an overall examination of the financial statements of the Company, we report that the Company has not entered into any non-cash transaction with directors or persons connected with him, therefore reporting under clause 3(xv) of the Order are not applicable.
16) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
"Annexure - B" to the Auditors'' Report
(Referred to in Paragraph 2(f) under the heading "Report on other legal and regulatory requirements" of our report of even date)
Report on the Internal Financial Controls under clause (i) of sub section 3 of section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Udaipur Cements Works Limited ("the Company") as of 31st March, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the internal financial controls over financial reporting of the Company based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Bansilal Shah & Co
Chartered Accountants
FRN: 000384W
Arvind Shah
Place : Udaipur Partner
Date : 10th May 2018 M. No.: 071690
Mar 31, 2017
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Udaipur Cement Works Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2017, the Statement of Profit and Loss (including other comprehensive income), the Statement of Cash Flow and the Statement of Changes in Equity for the year then ended and a summary of the significant accounting policies and other explanatory information (herein after referred to as âstandalone Ind AS Financial Statementsâ).
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flow and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with relevant rules issued thereunder.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS 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 standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS 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 including the Ind AS, of the financial position of the Company as at 31st March, 2017, and its financial performance including other comprehensive income, its cash flows and the Changes in Equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of section 143(11) of the Act, we give in the âAnnexure Aâ, a statement on the matters specified in the paragraph 3 and 4 of the order.
2. As required by Section 143(3) of the Act, we report that:
(a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) the Balance Sheet, the Statement of Profit and Loss, the Statement of Cash Flow and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
(d) in our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act read with relevant rule issued thereunder;
(e) on the basis of the written representations received from the directors as on 31st March, 2017 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2017 from being appointed as a director in terms of Section 164 (2) of the Act;
(f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ; and
(g) with respect to the other matters to be included in the Auditorâs 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 standalone Ind AS financial statements-Refer Note 47 to the standalone Ind AS financial statements;
ii. the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses; and
iii. there were no amounts which were required to be transferred, to the Investor Education and Protection Fund by the Company; and
iv. the Company has provided requisite disclosures in its standalone Ind AS financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016 and these are in accordance with the books of accounts maintained by the Company. Refer Note 42 to the standalone Ind AS financial statements.
âAnnexure - Aâ to the Auditorsâ Report
The Annexure referred to in Independent Auditorsâ Report to the members of the Company on the standalone Ind AS financial statements for the year ended 31st March 2017, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified at the end of the year, no material discrepancies were noticed between books of accounts and physical verification of fixed assets. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
(ii) The Company has conducted the physical verification of the inventory at reasonable intervals. The discrepancies noticed on such physical verification of the inventory were not material and were properly dealt in books of accounts.
(iii) The Company has not granted loans, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013 (âthe Actâ). Accordingly, the provisions of the clause 3(iii) (a) to (c) of the order are not applicable to the company and hence not commented upon.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments guarantees, and security.
(v) The Company has not accepted any deposits from the public.
(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the order made by the central government for the maintenance of cost records under section 148(1) of the Companies Act, 2013 in respect of the Companyâs products to which the said rules are made applicable and are of the opinion that prima facie, the prescribed records have been made and maintained. We have not, however, made a detailed examination of the said records with a view to determine whether they are accurate.
(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including provident fund, employee state insurance, income-tax, entry tax, sales tax, value added tax, duty of customs, excise duty, service tax, cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities.
(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, income tax, sales tax, value added tax, duty of customs, service tax, cess and other material statutory dues were in arrears as at 31st March 2017 for a period of more than six months from the date they became payable.
According to the information and explanations given to us, the following dues of sales tax, duty of excise and service tax have not been deposited by the Company on account of disputes:
Name of the statute |
Nature of the dues |
Period |
Forum where dispute is pending |
Amount (in Rs.) |
Central Excise Act |
Excise Duty |
1995-96 |
High Court |
4,40,017 |
Excise Duty (Interest) |
2000-01 |
Assistant commissioner Central Excise, Udaipur |
2,81,325 |
|
Service Tax Act |
Service Ta x |
1997-98 |
Assistant Commissioner Excise (S.T.) |
66,05,892 |
Sales Tax Act |
Sales Tax |
1999-2000 |
Assistant Commissioner (Comm. Tax) |
8,14,000 |
Sales Tax (Interest) |
1996-97, 1997-98, 1998-99 |
Assistant Commissioner (Comm. Tax) |
9,11,000 |
|
Sales Tax |
1996-97 |
Assistant Commissioner (Comm. Tax) Circle B Jammu |
25,04,900 |
(viii) On the basis of records made available and information and explanations given to us, the Company has not defaulted in repayment of dues to financial institutions, banks, governments or debenture holders during the year.
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year except for Inter Corporate Loan taken from a fellow subsidiary and the same was utilized for the purpose for which it was raised.
(x) According to the information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
(xi) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the standalone Ind AS financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year except as stated in Note No. 18 to the Standalone Financial Statements.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
For Om Prakash S. Chaplot & Co
Chartered Accountants
FRN : 000127C
O.P. Chaplot
Udaipur Partner
Date: 10th May 2017 M No. : 010184
Mar 31, 2015
We have audited the accompanying financial statements of Udaipur Cement
Works Limited ("the Company"), which comprise the Balance Sheet as
at 31st March 2015, the Statement of Profit and Loss, the 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
The Company's Board of Directors is responsible for the matters in
section 134 (5) of the Companies Act, 2013 ("the Act") with respect
to 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 the maintenance of
adequate accounting records in accordance with the provisions of the
Act for safeguarding of 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 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 er ro r.
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. An audit a l so i n cl u d es eval u
ati n g th e appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the Company's
Directors, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India;
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
b) in the case of Statement of Profit and Loss, of the profit 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.
Report on other Legal and Regulatory Requirements
1. As required by the Companies
(Auditor's Report) Order, 2015 ("the Order"), issued by the
Government of India in terms of sub-section (11) of section 143 of the
Companies Act, 2013, we give in the Annexure a statement on the matters
specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that :
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c) The Balance Shee, the 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 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. However all the directors of the company except Mr. S. K. Kinra ,
Special Director appointed by Hon'ble BIFR & Mr. Ganpat Singh and Miss
Kumud Pahuja appointed as Additional Director on March 21, 2015 are
disqualified to be appointed / reappointed as directors in any other
public company.
f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and
Auditor's) Rules, 2014, in our opinion and to the best of our
information and according to the explanations given to us:
i The Company has disclosed the impact of pending litigations on its
financial position in its financial statements- refer Note No. 30 to
the financial statements.
ii. The Company did not have any such 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.
ANNEXURE TO THE AUDITOR'S REPORT
[Referred to in Paragraph (1) under the heading "Report on other
Legal and Regulatory Requirements" of the Auditors' Report of even
date to the members of Udaipur Cement Works Limited on the accounts of
the Company for the year ended 31.03.2015]
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
our audit, we report that : i a) The Company has maintained proper
records showing full particulars including quantitative details and
situation of fixed assets.
b) As explained to us, fixed assets have been physically verified by
the management at regular intervals; as informed to us no material
discrepancies were noticed on such verification.
ii) a) Physical verification of inventories has been conducted by the
management at reasonable intervals.
b) The procedure of physical verification of inventory followed by the
management is 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. The
discrepancies noticed on such physical verification of inventory as
compared to book records were not material.
(iii) The Company has not granted / taken any loans secured or
unsecured to / from Companies, firms or other parties covered in the
registered maintained u/s 189 of the Act.
iv) In our opinion, the Company has an adequate internal control system
commensurate to the size of the Company and nature of its business for
the purchase of inventory and fixed assets and for sale of goods &
services and no major weaknesses in internal control system has been
noticed.
v) The Company has not accepted any deposits from public within the
meaning of the directives issued by the Reserve Bank of India and under
the provisions of section 73 to 76 or any other relevant provisions of
the Act and the Rules framed thereunder. As informed to us, no order
has been passed by the Company Law Board or National Law Tribunal or
Reserve Bank of India or any court or any other tribunal in this
regard.
vi) We have broadly reviewed the books of account maintained by the
Company pursuant to the order made by the central government for
maintenance of cost records under section 148 (1) of the Companies Act,
2013 in respect of the Company's products to which the said rules are
made applicable and are of the opinion that prima facie, the prescribed
records have been made and maintained. We have not, however, made a
detailed examination of the said records with a view to determine
whether they are accurate.
vii a) According to the records of the Company and information and
explanations given to us, the Company is regular in depositing
undisputed statutory dues, including Provident Fund, Employees State
Insurance, Entry Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty,
Excise, VAT, Cess and other material Statutory dues with the
appropriate authorities to the extent applicable. There are no
undisputed statutory dues payable for a period of more than six months
from the date they became payable as at 31st March 2015.
b) According to the records and information and explanations given to
us there are following dues under various taxes which has not been
deposited on account of any dispute and the amounts involved and the
forum where dispute is pending are given below: -
Name of the
Statute Nature of
the Dues Period Forum where dispute is
pending Amount
(In Rs.)
Central
Excise Act Excise Duty 1995-96 High Court 4,40,017
Excise Duty
(Interest) 2000-01 Assistant Commissioner
Central Excise, Udaipur 2,81,325
Service
Tax Act Service Tax 1997-98 Assistant Commissioner
of Excise (S.T.) 66,05,892
Sales Tax
Act Sales Tax 1999-2000 Assistant Commissioner
(Comm. Tax) 8,14,000
Sales Tax
(Interest) 1996-97,
1997-98 &
1998-99 Assistant Commissioner
(Comm. Tax) 9,11,000
Sales Tax 1996-97 Assistant Commissioner
(Comm. Tax) Circle
'B' Jammu 25,04,900
c) There has not been an occasion in case of the Company during the
year under report to transfer any sums to the Investor Education and
Protection Fund. The question of reporting delay in transferring such
sums does not arise.
viii) The Company's accumulated losses at the end of the year are not
more than fifty percent of its net worth. It hasn't incurred cash
losses in the current year and in the immediately preceding period.
ix) On the basis of records made available and information and
explanations given to us, the Company has not defaulted in repayment of
dues, considering the sanction of BIFR scheme, to financial
institutions, banks and debenture holders.
x) 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.
xi) On the basis of information and explanations given to us, the term
loan has been applied for the purpose for which they were obtained.
xii) Based on the audit procedures performed and on the basis of
information and explanations provided by the management, no fraud on or
by the Company has been noticed or reported during the course of our
audit.
For OM PRAKASH S. CHAPLOT & CO.
Chartered Accountants
FRN: 000127C
(O.P.CHAPLOT)
Place of Signature : Udaipur Partner
Date : 12th May 2015 M. No. 010184
Mar 31, 2014
We have audited the accompanying financial statements of M/s Udaipur
Cement Works Limited (''the Company'') which comprise the Balance Sheet
as at 31st March 2014, the Statement of Profit and Loss and Cash Flow
Statement for the period ended on that date 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 referred to in sub-section (3C) of section 211
of 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 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
entity''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 accounting estimates made by management, as well as
evaluating the overall presentation of 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 accounting
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
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:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
(ii) in the case of the Statement of Profit and Loss, of the profit /
loss for the period ended on that date; and
(iii) in the case of Cash Flow Statement, of the cash flows for the
period ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s
Report) Order, 2003 ("the Order"), as amended, 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;
c. The Balance Sheet, the 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 the Statement of Profit and Loss
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956 read
with the General Circular 15/2013 dated
13th September 2013 of the Ministry of Corporate Affairsin respect of
section 133 of the Companies Act, 2013.
e. On the basis of written representations received from the directors
as on 31st March, 2014, and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March,
2014, from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956. However, all
the directors of the company except Mr. S.K. Kinra, special director
appointed by Hon''ble BIFR & Mr. Ganpat Singh, appointed as Additional
Director on November 1, 2012 are disqualified to be appointed/
re-appointed as directors in any other public company;
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 Act, 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 TO THE AUDITOR''S REPORT
[Referred to in Paragraph (1) of the Auditors'' Report of even date to
the members of Udaipur Cement Works Limited for the period ended 31st
March 2014]
i) a) The Company is maintaining proper records showing full particulars
including quantitative details and situation of fixed assets.
b) Physical verification of fixed assets has been carried out by the
management according to the program of physical verification in phased
manner and no material discrepancies were noticed from such verification.
c) As per information and explanations provided by the management and
records made available to us, fixed assets disposed off during the
period, were not substantial and as such it has not affected the going
concern status of the Company.
ii) a) Physica verification of inventories has been conducted by the
management during the period under audit and at the end of the year.
b) The procedure of physical verification of inventory followed by the
management is 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 material
discrepancies noticed on physical verification have been properly dealt
with in the books of accounts. Further, a sum of Rs 333.79 lacs has
been written-off during the period relating to inventory becoming
unusable on account of obsolesce, corrosion, weathering, etc. due to
suspension of the plant operations since 2002.
(iii) a) The Company has not granted any loans secured or unsecured to
Companies, firms or other parties covered in the registered maintained
u/s 301 of the Act and accordingly the provisions of paragraph
4(iii)(b) to (d) are not applicable.
b) The Company has not taken any loans secured or unsecured from
Companies, firms or other parties covered under the registered
maintained u/s 301 of the Act and accordingly the provisions of
paragraph 4(iii)(e) to (g) are not applicable.
iv) The Company has an adequate internal control system commensurate to
the size of the Company and nature of its business for the purchase of
inventory and fixed assets and for sale of goods & services and no
major weaknesses in internal control system has been noticed.
v) According to the information and explanations given to us, we are of
the opinion that the Company has entered all the transactions required
to be entered in the register maintained under section 301 of the Act
and transaction made in pursuance of such contracts or arrangements
have been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
vi) The Company has not accepted any deposits from public within the
meaning of the directives issued by the Reserve Bank of India and under
the provisions of section 58A, 58AA or any other relevant provisions of
the Act and the Rules framed there under. As informed to us no order
has been passed by the Company Law Board or National Law Tribunal or
Reserve Bank of India or any court or any other tribunal in this
regard.
vii) Internal Audit has been carried out by the own Internal Audit
Department formed within the organization and the audit system is
commensurate with a size and a nature of business of the Company
viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the order made by the Central G o v er nm e nt f or
t he maintenance of cost records under section 209(1) (d) of the
Companies Act, 1956 in respect of the Company''s products to which the
said rules are made applicable and are of the opinion that prima facie,
the prescribed records have been made and maintained. We have not,
however, made a detailed examination of the said records with a view to
determine whether they are accurate.
ix) d) According to the records of the Company and information and
explanations given to us, the Company is regular in depositing
undisputed statutory dues, Wealth Tax, Service Tax, Custom Duty, Cess
and other material Statutory dues with the appropriate authorities to
the extent applicable. There are no material statutory dues payable for
a period of more than six months from the date they became payable as
at 31st March, 2014.
e) According to the records and information and explanations given to
us there are following dues under various taxes which has not been
deposited on account of any dispute and the amounts involved and the
forum where dispute is pending are given below: -
Name of the
Statute Nature of The
Dues Period Forum whe
ending
ispute
Amount (InRs.)
Central
Excise
Act Excise Duty 1995-96 High Court 4,40,017
Excise Duty
(Interest) 2000-01 Assistant
Commissioner
Central
Service Tax
Act Service Tax 1997-98 Assistant
Cotmmis
sioner 66,05,892
Sales Tax
Act Sales Tax 1999-
2000 (Comm.Tax) 8,14,000
Sales Tax
(Interest) 1996-97,
1997-98
&
1998-99 (Comm. Tax) 9,11,000
Sales Tax 1996-97 (Comm. Tax)
Circle ''B''
Jammu 25,04,900
x) The Company''s accumulated losses at
the end of the period are more than fifty percent of its net worth and
it has not incurred cash losses in the current period but Company has
incurred cash losses in the immediately preceding period.
xi) On the basis of records made available and information and
explanations given to us, the Company has not defaulted in repayment of
dues, considering the sanction of BIFR scheme, to financial
institutions, banks and debenture holders.
xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
xiii) The Company is not a chit fund or a nidhi / mutual benefit fund /
society; therefore the provisions of clause 4 (xiii) of the Order are
not applicable to the Company.
xiv) According to the information and explanations provided by the
management, the Company is not dealing in or trading in shares,
securities, debentures and other investments.
xv) 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.
xvi) The Company has obtained a term loan from a Bank. Pending its
utilization for the purpose it has been sanctioned, the amount is
temporarily held in Current Account of the Company.
xvii) Based on the examination of the documents and records made
available and on the basis of information and explanations given to us,
we are of the opinion that the Company has not raised any short-term
funds. Accordingly, the provisions of clause 4(xvii) are not applicable
to the Company.
xviii) According to the information and explanations given to us, the
Company has made preferential allotment of equity shares during the
period to the Holding Company amounting to Rs. 7800 Lacs in pursuance to
BIFR scheme.
xix) According to information & explanations provided by the
management, no debentures have been issued during the period.
Accordingly, the provisions of clause 4 (xix) are not applicable to the
Company.
xx) The Company has not raised any money through a public issue during
the period. Accordingly, the provisions of clause 4(xx) are not
applicable to the Company.
xxi) Based on the audit procedures performed and on the basis of
information and explanations provided by the management which have been
relied upon by us, no fraud on or by the Company has been noticed or
reported during the course of our audit or have been informed by the
management.
For OM PRAKASH S. CHAPLOT & CO.
Chartered Accountants
FRN 000127C
O. P. CHAPLOT
Place : Udaipur Partner
Dated : 15th May 2014 M.No. 010184
Sep 30, 2012
We have audited the attached Balance Sheet of Udaipur Cement Works
Limited as at 30th September 2012, Statement of Profit and Loss and
also the cash flow statement for the period 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 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 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
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As required by the Companies (Auditor''s Report) Order, 2003 (as
amended) issued by the Central Government of India in terms of section
227(4A) of the Companies Act, 1956, and on the basis of such checks of
the books and records of the company as we considered appropriate and
according to the information and explanations given to us during the
course of audit, we enclose in the Annexure, a statement on the matters
specified in the paragraphs 4 and 5 of the said Order.
2. Further to our comments in the Annexure referred to in paragraph 1
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 appears 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) In our opinion and to the best of our information, Statement of
Profit and Loss, Balance Sheet and the Cash Flow Statement dealt with
by this report comply with the accounting standards referred to in
Section 211 (3C) of the Companies Act, 1956, to the extent applicable.
e) On the basis of written representations received from the directors,
as on 30th September, 2012 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
30th September, 2012 from being re-appointed as a director of the
company in terms of the clause (g) of sub- (1) of section 274 of the
Companies Act, 1956. However all the directors of the company except
Mr. S.K.Kinra, special director appointed by Hon''bie BIFR & Mr. Ganpat
Singh, appointed as Additional Director on November 1, 2012 are
disqualified to be appointed/re- appointed as directors in any other
public company;
f) Attention is invited to:
(i) Note No. 26 of Notes to Accounts regarding non-provision against
loans and advances amounting to Rs. 471:84 lacs.
(ii) Note No. 26 of Notes to Accounts regarding pending reconciliation/
confirmation of balances of debtors and loans and advances considered
to the extent identified by the management and our inability to comment
thereon.
We further report that the loss for the period, balance in profit &
loss account, assets and liabilities as stated are without considering
the impact of items mentioned in para (f) (i) to (ii) above. Had the
observation made in para (f) (i) above been considered, loss for the
period would have been Rs. 1,734.16 lacs (as against reported figure of
loss for the period of Rs 1262.32 lacs), loans & advances would have
been Rs. 128.62 lacs fas against reported figure of Rs. 600.46 lacs).
Subject to the foregoing, in our opinion and to the best of our
information and according to the explanations given to us, the said
Balance Sheet, Statement of Profit and Loss and the Cash Flow Statement
read together with the notes thereon, give the information required by
the Companies Act, 1956 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 30th September, 2012;
b) In the case of Statement of Profit and Loss, of the loss for the
period ended on that date; and
c) In the case of Cash Flow Statement, of the cash flows for the period
ended on that date.
ANNEXURE TO THE AUDITOR''S
REPORT
[Referred to in Paragraph (1) of the Auditors'' Report of even date to
the members of Udaipur Cement Works Limited for the year ended
30.09.2012]
i) a) Records showing full particulars including quantitative details
and situation of fixed assets have been maintained by the company.
b) Physical verification of fixed assets has been conducted by the
management according to the programme of physical verification in
phased manner which in our opinion is reasonable having regard to the
size of the Company and nature of Fixed Assets during the period. The
discrepancies noticed on such physical verification were not material.
c) As per information and explanations provided by the management and
records made available to us, fixed assets disposed off during the
period were not substantial.
ii) a) Physical verification of inventories has not been conducted by
the Management during the period as stated in note no. 19 of Notes to
Accounts.
b) In our opinion and having regard to our comments in Para (ii)(a)
above, the procedures of physical verification of inventory needs to be
made adequate in relation to the size of the company and nature of its
business.
c) On the basis of information and records made available, inventory
records are maintained (subject to note no. 19 of Notes to Accounts)
but in the absence of physical verification report, it is not possible
to ascertain and comment on discrepancy between book records and
physical inventory and adjustments, if any and ascertainment of amount
thereof read together with note no. 19 of Notes to Accounts.
iii) The company has neither granted nor taken any loans, secured or
unsecured '' to and from companies, firms or other parties covered in
the register maintained under section 301 of the Act. Accordingly, the
provisions of clause 4(iii) (b) to (d), (f) & (g) of the order are not
applicable.
iv) Internal control system require to be strengthened to be made
commensurate with the size of the company and the nature of its
business for the sale of fixed assets and services and read with our
comments elsewhere and note no 19 & 26 of Notes to Accounts.
v) According to the information and explanations provided by the
management and based upon audit procedure performed, we are of the
opinion that there are no particulars of contracts or arrangements
referred to in section 301 of the Act to be entered in the register
required to be maintained under that section, accordingly, the
provisions of clause 4 (v) (b) of the order are not applicable.
vi) In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from the public
within the meaning of the directives issued by Reserve Bank of India
and the provision of sections 58A, 58AA or any other relevant
provisions of the Act and the rules framed there under. As informed to
us, no order has been passed by the Company Law Board or National
Company Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal in this regard.
vii) No Internal Audit has been carried out during the period as stated
in note no. 28 of Notes to Accounts.
viii) We have broadly reviewed the books of account maintained by the
company pursuant to the order made by the Central Government for the
maintenance of cost records under section 209(1) (d) of the Companies
Act, 1956 and are of the opinion that prima facie, the prescribed
records have been made and maintained read with Note no. 1.3. We have
not, however, made a detailed examination of the said records with a
view to determine whether they are accurate.
ix) a) According to the records of the Company and information and
explanations given to us, the company is generally regular in
depositing undisputed statutory dues, Wealth Tax, Service Tax, Custom
Duty, Cess and other material Statutory dues with the appropriate
authorities to the extent applicable. There are no material statutory
dues payable for a period of more than six months from the date they
became payable as at 30th September, 2012.
b) According to the records and information and explanations given to
us,, there are no dues in respect of Wealth Tax, Custom Duty and Cess
that have not been deposited with the appropriate authorities on
account of any dispute and the dues in respect of Income Tax, Excise
Duty, Service Tax and Sales Tax that have not been deposited on account
of dispute and the forum where the dispute is pending are given below:-
Name of the Nature of The Dues Period
Statute
Central Excise Act Excise Duty 1995-96
Excise Duty (Interest) 2000-01
Service Tax Act Service Tax 1997-98
Sales Tax Act Sales Tax 1999-2000
Sales Tax (Interest) 1996-97,1997-98 &
1998-99
Sales Tax 1996-97
Land Tax Act Land Tax 2006-07 to 2011-12
Above is to be read with note no. 20 of Notes to accounts.
Name of the Statute Forum where dispute Amount (In Rs.)
is pending
Central Excise Act High Court 4,40,017
Assistant 2,81,325
Commissioner Central
Excise, Udaipur
Service Tax Act Assistant 66,05,892
Commissioner of Excise (ST.)
Sales Tax Act Assistant 8,14,000
Commissioner (Comm, Tax)
Assistant 9,11,000
Commissioner (Comm. Tax)
Assistant 25,04,900
Commissioner (Comm. Tax)
Circle ''B'' Jammu
Land Tax Act Sub-Registrar, Mavli 23,88,69,766
& Vallabhnagar
x) The company''s accumulated losses at the end of the period are more
than fifty percent of its net worth and it has also incurred cash
losses in the current period and also in the immediately preceding
financial year.
xi) On the basis of records made available and information and
explanations given to us, the company has not defaulted in repayment of
dues, considering the sanction of scheme, to financial institutions,
banks and debenture holders.
xii) According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
xiii) The company is not a chit fund or a nidhi/mutual benefit
fund/society; therefore the provisions of clause 4 (xiii) of the Order
are not applicable to the company.
xiv) According to the information and explanations provided by the
management, the company is not dealing in or trading in shares,
securities, debentures and other investments.
xv) 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.
xvi) In our opinion and according to the records, information and
explanations given to us, the Company has not availed any fresh term
loan during the period.
xvii) Based on the examination of the documents and records made
available and on the basis of information and explanations given to us
and on an overall examination of financial statements, we are of the
opinion that the company has not used funds raised on short-term basis
for long-term investment.
xviii) According to the information and explanations given to us, the
company has not made any preferential allotment of shares during the
period to any parties or companies covered in the register maintained
under section 301 of the Companies Act, 1956.
xix) According to information & explanations provided by the management
no debentures have been issued during the period.
xx) The company has not raised any money through a public issue during
the period.
xxi) Based on the audit procedures performed and on the basis of
information and explanations provided by the management which have been
relied upon by us, no fraud on or by the company has been noticed or
reported during the course of our audit or have been informed by the
management.
For OM PRAKASH S CHAPLOT & CO.
Chartered Accountants
FRN: 000127C
(O.P.CHAPLOT)
Place: Udaipur Partner
Date : 28.12.2012 M.No. 10184
Mar 31, 2011
We have audited the attached Balance Sheet of Udaipur Cement Works
Limited as at 31st March 2011, the Profit & Loss Account and also the
cash flow statement 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. We 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 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 presentation. We believe that our
audit provides a reasonable basis for our opinion.
1. As required by the Companies (Auditor's Report) Order, 2003 (as
amended) issued by the Central Government of India in terms of section
227(4A) of the Companies Act, 1956, and on the basis of such checks of
the books and records of the company as we considered appropriate and
according to the information and explanations given to us during the
course of audit, we enclose in the Annexure, a statement on the matters
specified in the paragraphs 4 and 5 of the said Order.
2. Further to our comments in the Annexure referred to in paragraph 1
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
ouraudit;
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;
c) The Balance Sheet, Profit & Loss Account and the Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion and to the best of our information, the Profit & Loss
Account, Balance Sheet and the Cash Flow Statement dealt with by this
report comply with the accounting standards referred to in Section 211
(3C) of the Companies Act, 1956, to the extent applicable except to the
extent of non - provision of interest liability etc. and preparation
of accounts on going concern basis (AS-1), non- provision for leave
encashment. (Note No. 2-AS 15), Non- determination of current net
Realisable Value of Inventory and Non- determination / non- provision
of obsolete and unusable assets and inventory, non provision of
depreciation and for impairment of assets(note no.3- AS-2, AS-6, AS-10
and AS-28);
e) On the basis of written representations received from the directors,
as on 31st March, 2011 and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March,
2011 from being re-appointed as a director of the company in terms of
the clause (g) of sub- (1) of section 274 of the Companies Act, 1956.
However all the directors of the company except Mr. S.K.Kinra, special
director appoints by Hon'ble BIFR are disqualified to be appointed/
re-appointed as directors in any other public company;
f) Attention is invited to:
(i) Note no. 1 & 11 of Schedule 13 regarding preparation of accounts on
"going concern basis" for the reasons stated in the said notes and
our inability to comment thereon;
(ii) Note no. 2 of Schedule 13 regarding non-provision of salary ,
wages , allowances and other benefit etc. as stated in the said note
(amount unascertained).
(iii) Note no. 3 of Schedule 13 regarding valuation of respective
inventories as valued, considered same as in the previous year and have
been taken on the same value as in the previous year and non provision
of adjustment of lower of net realisable value over cost of inventories
and non provision for obsolete, shortages, damaged and non-moving,
inventories and fixed assets and for impairment of assets (amount
unascertained) and non provision of depreciation as stated in the said
note.
(iv) Note no. 4(a) of Schedule 13 regarding non provision of interest
on secured loans, bank borrowings, trade deposits, royalty, dues
payable to Ajmer Vidyut Vitaran Nigam Ltd. (AWNL), excise duty demand
and penal interest, liquidated damages, etc. thereon as stated in the
said note (amount unascertained) and regarding non- accounting of
interest earned on certain deposits.
(v) Note No. 4(c) of Schedule 13 regarding non-accounting of interest
earned on certain deposits as stated in the said note (amount
unascertained).
(vi) Note No. 14 of Schedule 13 regarding non-provision against overdue
debtors amounting to Rs. 3,67,79,578 and loans and advances amounting
to Rs. 4,71,84,621.
(vii) Note No. 21,14,6 & 11 of Schedule 13 regarding pending
reconciliation / confirmation of balances of secured loans, unsecured
loans, deferred interest, creditors, other current liabilities, banks,
deposits, debtors, loans and advances and contingent liabilities
considered to the extent identified by the management and our inability
to comment thereon.
(viii)Note No. 13 of Schedule 13 regarding non-provision of interest
on overdue liability of Sundry Creditors under Current Liabilities &
Provisions as defined under the "Micro, Small and Medium Enterprises
Development Act, 2006" (amount unascertained) and identification of
such parties and their dues by the management and our inability to
comment on the same.
We further report that the loss for the year, balance in profit & loss
account, assets and liabilities as stated are without considering the
impact of items mentioned in para (f)(i) to (v), (vii) & (viii) above.
Had the observation made in para (f) (iii) & (vi) above been
considered, loss for the year would have been Rs. 15,97,41 ;701 (as
against reported figure of Rs 36,85,490), debit balance in profit &
loss account would have been Rs. 3,06,43,97,502 (as against reported
figure of Rs. 2,90,83,41,291), debtors would have been Rs. Nil (as
against reported figure of Rs. 3,67,79,578) and loans & advances would
have been Rs. 10,00,00,000 (as against reported figure of Rs.
14,71,84,621).
Subject to the foregoing, in our opinion and to the best of our
information and according to the explanations given to us, the said
balance sheet, profit & Loss account and the cash flow statement read
together with the notes thereon, give the information required by the
Companies Act, 1956 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 31st March, 2011;
b) In the case of the Profit & loss Account, of the loss for the year
ended on that date; and
c) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date
ANNEXURE TO THE AUDITOR'S REPORT
[Referred to in Paragraph (1) of the Auditors' Report of even date to
the members of Udaipur Cement Works Limited for the year ended
31.03.2011]
i)
a) Records showing full particulars including quantitative details and
situation of fixed assets have been maintained by the company. This
should be read with our comments in para (b) below.
b) Physical verification of fixed assets has not been conducted by the
management during the year due to plant operation being under
suspension as stated in note no. 3 of Schedule 13. Discrepancy, if any,
in this respect could not be ascertained and commented by us.
c) As per information and explanations provided by the management and
records made available to us, fixed assets disposed off during the year
were not substantial.
ii)
a) Physical verification of inventories has not been conducted by the
Management during the year as stated in note no. 3 of Schedule 13.
b) In our opinion and having regard to our comments in Para (ii)(a)
above, the procedures of physical verification of inventory needs to be
made adequate in relation to the size of the company and nature of its
business.
c) On the basis of information and records' made available, inventory
records are maintained (subject to note no.3 of Schedule 13) but in the
absence of physical verification report, it is not possible to
ascertain and comment on discrepancy between
book records and physical inventory and adjustments, if any and
ascertainment of amount thereof read together with note no.3 of
Schedule 13.
iii) The company has neither granted nor taken any loans, secured or
unsecured to and from companies, firms or other parties covered in the
register maintained under section 301 of the Act. Accordingly, the
provisions of clause 4(iii) (b) to (d), (f) & (g) of the order are not
applicable.
iv) Internal control system require to be strengthened to be made
commensurate with the size of the company and the nature of its
business for the sale of fixed assets and services and read with our
comments elsewhere and note no 3,14, & 21 of Schedule 13.
v) According to the information and explanations provided by the
management and based upon audit procedure performed, we are of the
opinion that there are no particulars of contracts or arrangements
referred to in section 301 of the Act to be entered in the register
required to be maintained under that section, accordingly, the
provisions of clause 4 (v) (b) of the order are not applicable.
vi) In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from the public
within the meaning of the directives issued by Reserve Bank of India
and the provision of sections 58 A, 58 AA or any other relevant
provisions of the Act and the rules framed there under. As informed to
us, no order has been passed by the Company Law Board or National
Company Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal in this regard.
vii) No Internal Audit has been carried out during the year as stated
in note no. 17 of Schedule 13.
viii) We have broadly reviewed the books of account maintained by the
company pursuant to the order made by the Central Government for the
maintenance of cost records under section 209(1 )(d) of the Companies
Act, 1956 and are of the opinion that prima facie, the prescribed
records have been made and maintained read with Note no. 3 of schedule
13. We have not, however, made a detailed examination of the said
records with a view to determine whether they are accurate.
ix) a) According to the legal opinion obtained by the company liability
of provident fund contribution arises only when salaries and wages are
actually paid, accordingly we are not in a position to express opinion
about payable amount in respect of provident fund contribution. As
informed to us, Employee State Insurance is not applicable to the
company. Further, according to the records of the Company and
information and explanations given to us, the company is generally
regular (except delay in case of Sales Tax, Excise Duty, Income Tax,
Royalty (including as reported below) in depositing undisputed
statutory dues including Investor Education and Protection Fund, Wealth
Tax, Service Tax, Custom Duty, Cess and other material Statutory dues
with the appropriate authorities to the extent applicable. There are no
material statutory dues payable for a period of more than six months
from the date they became payable as at 31st March, 2011 except Sales
Tax Rs. 13,44,27,346, Excise Duty Rs. 70,54,778, , Electricity dues
Rs. 1,83,17,491, Cess Rs. 55,853 and Royalty Rs. 62,61,385, further
this is to be read together with note no. 2,4(a) and 21 of Schedule 13.
b) According to the records and information and explanations given to
us, there are no dues in respect of Wealth Tax, Custom Duty and Cess
that have not been deposited with the appropriate authorities on
account of any dispute and the dues in respect of Income Tax, Excise
Duty, Service Tax and Sales Tax that have not been deposited on account
of dispute and the forum where the dispute is pending are given below:-
Name of the Nature of Period Forum where Amount
Statute The Dues dispute is (In Rs.
pending
Central Excise Excise Duty 1995-96 High Court 4,40,017
Act
Excise Duty 2000-01 Assistant 2,81,325
(Interest) Commissioner
Central
Excise,
Udaipur
Service Tax Service Tax 1997-98 Assistant 66,05,892
Act Commissioner
of Excise
(S.T.)
Sales Tax Sales Tax 1999-2000 Assistant 8,14,000
Act Commissioner
(Comm.Tax)
Sales Tax 1996-97, Assistant 9,11,000
(Interest) 1997-98 & Commissioner
1998-99 (Comm. Tax)
Sales Tax 1996-97 Assistant 25,04,900
Commissioner
(Comm. Tax)
Circle 'B'
Jammu
Land Tax Act Land Tax 2006-07 to Sub-Registrar, 18,59,79,044
2010-11 Mavli &
Vallabhnagar
Above is to be read with note no. 6,& 21 of Schedule 13
x) The company's accumulated losses at the
end of the financial year are more than fifty percent of its net worth
and it has also incurred cash losses in the current financial year and
also in the immediately preceding financial year.
xi) On the basis of records made available and information and
explanations given to us, the company has defaulted in repayment of
dues, considering restructuring scheme, to financials institutions,
banks and debenture holders, the details of which are given below:
Particulars Amount Over due as on Maximum Balance
31.03.2011 (Including accrued outstanding
interest to the extent during the
provided for) year
Debentures holders Rs.40,42,34,400 (including Rs.40,42,34,400
carried over Rs. 40,42,34,400
from previous year)
Banks Rs 18,92,88,108 (including Rs.18,92,88,108
carried over Rs.18,92,88,108
from previous year)
Financial Rs 60,84,70,500 (including Rs.60,84,70,500
Institutions carried over Rs.60,84,70,500
from previous year)
Deferred Interest Rs. 10,82,29,116 Rs.10,82,29,116
Above is to be read with note no. 4, 5 & 21 of Schedule 13
xii) According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
xiii) The company is not a chit fund or a nidhi/ mutual benefit
fund/society; therefore the provisions of clause 4 (xiii) of the Order
are not applicable to the company.
xiv) According to the information and explanations provided by the
management, the company is not dealing in or trading in shares,
securities, debentures and other investments.
xv) 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.
xvi) In our opinion and according to the records, information and
explanations given to us, the Company has not availed any fresh term
loan during the year.
xvii) Based on the examination of the documents and records made
available and on the basis of information and explanations given to us
and on an overall examination of financial statements, we are of the
opinion that the company has not used funds raised on short-term basis
for long-term investment.
xviii) According to the information and explanations given to us, the
company has not made any preferential allotment of shares during the
year to any parties or companies covered in the register maintained
under section 301 of the Companies Act, 1956.
xix) According to information & explanations provided by the management
no debentures have been issued during the year. In respect of
debentures outstanding during the year security or charge had been
created as stated in note no. B 1 of schedule- 3.
xx) The company has not raised any money through a public issue during
the year.
xxi) Based on the audit procedures performed and on the basis of
information and explanations provided by the management which have been
relied upon by us, no fraud on or by the company has been noticed or
reported during the course of our audit or have been informed by the
management.
For OM PRAKASH S. CHAPLOT & CO.
Chartered Accountants
FRN: 000127C
Place: Udaipur (O.P.CHAPLOT)
Date : 05.08.2011 Partner
M.No. 10184
Mar 31, 2010
We have audited the attached Balance Sheet of Udaipur Cement Works
Limited as at 31st March 2010, the Profit & Loss Account and also the
cash flow statement 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.
We 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 finahcial
statements are free of material misstatement. An audit includes
examining, on 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
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As required by the Companies (Auditors Report) Order, 2003 (as
amended) issued by the Central Government of India in terms of section
227(4A) of the Companies Act, 1956, and on the basis of such checks of
the books and records of the company as we considered appropriate and
according to the information and explanations given to us during the
course of audit, we enclose in the Annexure, a statement on the matters
specified in the paragraphs 4 and 5 of the said Order.
2. Further to our comments in the Annexure referred to in paragraph 1
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 appears from our examination of those
books;
c) The Balance Sheet, Profit & Loss Account and the Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion and to the best of our information, the Profit & Loss
Account, Balance Sheet and the Cash Flow Statement dealt with by this
report comply with the accounting standards referred to in Section 211
(3C) of the Companies Act, 1956, to the extent applicable except to the
extent of non - provision of interest liability etc. and preparation
of accounts on going concern basis (AS-1), non- provision for leave
encashment. (Note No. 2-AS 15), Non- determination of current net
Realisable Value of Inventory and Non- determination/ non- provision of
obsolete and unusable assets and inventory, non provision of
depreciation and for impairment of assets(note no.3- AS-2, AS-6, AS-10
and AS-28);
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 re- appointed as a director of the company in terms of
the clause (g) of sub- (1) of section 274 of the Companies Act, 1956.
However all the directors of the company are disqualified to be
appointed/ re-appointed as directors in any other public company;
f) Attention is invited to:
(i) Note no. 1 & 11 of Schedule 13 regarding preparation of accounts on
"going concern basis" for the reasons stated in the said notes and our
inability to comment thereon;
(ii) Note no. 2 of Schedule 13 regarding non-provision of salary ,
wages , allowances and other benefit etc. as stated in the said note
(amount unascertained).
(iii) Note no. 3 of Schedule 13 regarding valuation of respective
inventories as valued, considered same as in the previous year and have
been taken on the same value as in the previous year and non provision
of adjustment of lower of net realisable value over cost of inventories
and non provision for obsolete, shortages, damaged and non-moving,
inventories and fixed assets and for impairment of assets (amount
unascertained) and non provision of depreciation as stated in the said
note.
(iv) Note no. 4(a) of Schedule 13 regarding non provision of interest
on secured loans, bank borrowings, trade deposits, royalty, dues
payable to Ajmer Vidyut Vitaran Nigam Ltd. (AVVNL), excise duty demand
and penal interest, liquidated damages, etc. thereon as stated in the
said note (amount unascertained) and regarding non- accounting of
interest earned on certain deposits.
(v) Note No. 4(c) of Schedule 13 regarding non-accounting of interest
earned on certain deposits as stated in the said note (amount
unascertained).
(vi) Note No. 14 of Schedule 13 regarding non-provision against overdue
debtors amounting to Rs. 3,67,79,578 and loans and advances amounting
to Rs. 4,70,28,145.
(vii)Note No. 21, 14, 6 & 11 of Schedule 13 regarding pending
reconciliation/ confirmation of balances of secured loans, unsecured
loans, deferred interest, creditors, other current liabilities, banks,
deposits, debtors, loans and advances and contingent liabilities
considered to the extent identified by the management and our inability
to comment thereon.
(viii)Note No. 13 of Schedule 13 regarding non-provision of interest on
overdue liability of Sundry Creditors under
Current Liabilities & Provisions as defined under the "Micro, Small and
Medium Enterprises Development Act, 2006" (amount unascertained) and
identification of such parties and their dues by the management and our
inability to comment on the same.
We further report that the loss for the year, balance in profit & loss
account, assets and liabilities as stated are without considering the
impact of items mentioned in para (f)(i) to (v), (vii) & (viii) above.
Had the observation made in para (f) (iii) & (vi) above been
considered, loss for the year would have been Rs. 19,23,99,570 (as
against reported figure of Rs 1,86,83,316), debit balance in profit &
loss account would have been Rs. 3,07,83,72,056 (as against reported
figure of Rs. 2,90,46,55,802), debtors would have been Rs. Nil (as
against reported figure of Rs. 3,67,79,578) and loans & advances would
have been Rs. 10,00,00,000 (as against reported figure of Rs.
14,70,28,145).
Subject to the foregoing, in our opinion and to the best of our
information and according to the explanations given to us, the said
balance sheet, profit & Loss account and the cash flow statement read
together with the notes thereon, give the information required by the
Companies Act, 1956 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 31st March, 2010;
b) In the case of the Profit & loss Account, of the loss for the year
ended on that date; and
c) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date
ANNEXURE TO THE AUDITORS REPORT
[Referred to in Paragraph (1) of the Auditors Report of even date to
the members of Udaipur Cement Works Limited for the year ended
31.03.2010]
a) Records showing full particulars including quantitative details and
situation of fixed assets have been maintained by the company. This
should be read with our comments in para (b) below.
b) Physical verification of fixed assets has not been conducted by the
management during the year due to plant operation being under
suspension as stated in note no. 3 of Schedule 13. Discrepancy, if any,
in this respect could not be ascertained and commented by us!
c) As per information and explanations provided by the management and
records made available to us, fixed assets disposed off during the year
were not substantial.
ii)a) Physical verification of inventories has not been conducted by the
Management during the year as stated in note no.3 of Schedule 13.
b) In our opinion and having regard to our comments in Para (ll)(a)
above, the procedures of physical verification of Inventory needs to be
made adequate In relation to the size of the company and nature of its
business.
c) On the basis of information and records made available, Inventory
records are maintained (subject to note no.3 of Schedule 13) but In the
absence of physical verification report, It is not possible to
ascertain and comment on discrepancy between book records and physical
Inventory and adjustments, If any and ascertainment of amount thereof
read together with note no.3 of Schedule 13.
iii) The company has neither granted nor taken any loans, secured or
unsecured to and from companies, firms or other parties covered in the
register maintained under section 301 of the Act. Accordingly, the
provisions of clause 4(iii) ( b) to (d), (f) & (g) of the order are not
applicable.
iv) Internal control system require to be strengthened to be made
commensurate with the size of the company and the nature of its
business for the sale of fixed assets and services and read with our
comments elsewhere and note no 3, 14, & 21 of Schedule 13.
v) According to the information and explanations provided by the
management and based upon audit procedure performed, we are of the
opinion that there are no particulars of contracts or arrangements
referred to in section 301 of the Act to be entered in the register
required to be maintained under that section, accordingly, the
provisions of clause 4 (v) (b) of the order are not applicable.
vi) In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from the public
within the meaning of the directives issued by Reserve Bank of India
and the provision of sections 58A, 58AA or any other relevant
provisions of the Act and the rules framed there under. As informed to
us, no order has been passed by the Company Law Board or National
Company Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal in this regard,
vli) No Internal Audit has been carried out during the year as stated
In note no. 17 of Schedule 13.
vlll) We have broadly reviewed the books of account maintained by the
company pursuant to the order made by the Central Government for the
maintenance of cost records under section 209(1 )(d) of the Companies
Act, 1956 and are of the opinion that prima facie, the prescribed
records have been made and maintained read with Note no. 3 of schedule
13. We have not, however, made a detailed examination of the said
records with a view to determine whe ther they are accurate.
ix)a) According to the legal opinion obtained by the company liability of
provident fund contribution arises only when salaries and wages are
actually paid, accordingly we are not in a position to express opinion
about payable amount in respect of provident fund contribution. As
informed to us, Employee State Insurance is not applicable to the
company. Further, according to the records of the Company and
information and explanations given to us, the company is generally
regular (except delay in case of Sales Tax, Excise Duty, Income Tax,
Royalty ( including as reported below) in depositing undisputed
statutory dues including Investor Education and Protection Fund, Wealth
Tax, Service Tax, Custom Duty, Cess and other material Statutory dues
with the appropriate authorities to the extent applicable. There are no
material statutory dues payable for a period of more than six months
from the date they became payable as at 31st March, 2010 except Sales
Tax Rs. 13,44,27,346, Excise Duty Rs. 70,54,778, , Electricity dues
Rs. 1,83,17,491, Cess Rs. 55,853 and Royalty Rs. 62,61,385, further
this is to be read together with note no. 2,4(a) and 21 of Schedule
13.
b) According to the records and information and explanations given to
us, there are no dues in respect of Wealth Tax, Custom Duty and Cess
that have not been deposited with the appropriate authorities on
account of any dispute and the dues in respect of Income Tax, Excise
Duty, Service Tax and Sales Tax that have not been deposited on account
of dispute and the forum where the dispute is pending are given below:-
Name of the Statute Nature of The Dues Period
Central Excise Act Excise Duty 1995-96
Service Tax Act Service Tax 1997-98
Sales Tax Act Sales Tax 1999-2000
Sales Tax (Interest) 1996-67,1997-98 &
1998-99
Sales Tex 1996-97
Above is to be mad with note no, 6,& 21 of Schedule 13
Name of the Statute Forum where dispute Is Amount (In Rs.)
pending
Central Excise Act High Court 4,40,017
Service Tax Act Assistant Commissioner 66,05,892
of Excise (S.T.)
Sales Tax Act Assistant Commissioner 8,14,000
(Comm, Tax)
Assistant Commissioner 9,11,000
(Comm, Tax)
Assistant Commissioner 25,04,900
(Comm. Tax) Circle
B Jammu
Abovs Is to be mad wlthnote no. 6,& 21 of Schedule 13
x) The companys accumulated losses at the end of the financial year
are mora than fifty percent of Its net worth and It has also Incurred
cash losses In the current financial year and also In ths Immediately
preceding financial year,
xi) On the basis of records made available
and Information and explanations given to us, the company has defaulted
In repayment of dues, considering restructuring scheme, to financials
institutions, banks and debenture holders, the details of which are
given below
Particulars Amount Over due as on 31.03.2010 Maximum Balance
(Including accrued interest
to the extent provided for) outstanding during
the year
Debentures
holders Rs.40,49,59,779 (including carried
over Rs.31,50,16,353 Rs. 40,49,59,779
from previous year)
Banks Rs 18,92,88,108 (including carried
over Rs. 18,66,44,358 from Rs. 18,92,88,108
previous year)
Financial
Institutions Rs 60,84,70,500 (including carried
over Rs. 47,31,29,933 from Rs 60,84,70,500
previous year)
Deferred
Interest Rs. 10,82,29,116 Rs. 10,82,29,116
Above is to be read with note no. 4,5&21 of Schedule 13
xii) According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
xiii) The company is not a chit fund or a nidhi/ mutual benefit
fund/society; therefore the provisions of clause 4 (xiii) of the Order
are not applicable to the company.
xiv) According to the information and explanations provided by the
management, the company is not dealing in or trading in shares,
securities, debentures and other investments.
xv) 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.
xvi) In our opinion and according to the records, information and
explanations given to us, the Company has not availed any fresh term
loan during the year.
xvii) Based on the examination of the documents and records made
available and on the basis of information and explanations given to us
and on an overall examination of financial statements, we are of the
opinion that the company has not used funds raised on short-term basis
for long-term investment.
xviii) According to the information and explanations given to us, the
company has not made any preferential allotment of shares during the
year to any parties or companies covered in the register maintained
under section 301 of the Companies Act, 1956.
xix) According to information & explanations provided by the management
no debentures have been issued during the year. In respect of
debentures outstanding during the year security or charge had been
created as stated in note no. B 1 of schedule-3.
xx) The company has not raised any money through a public issue during
the year.
xxi) Based on the audit procedures performed and on the basis of
information and explanations provided by the management which have been
relied upon by us, no fraud on or by the company has been noticed or
reported during the course of our audit or have been informed by the
management.
FOR OM PRAKASH S CHAPLOT & CO.
Chartered Accountants
(O.P.CHAPLOT)
Date : 05.07.2010 Partner
Place : Udaipur M. No. 10184
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