Auditor Report of Uniworth Ltd.
Mar 31, 2015
We have audited the accompanying Financial Statements of UNIWORTH
LIMITED ("the Company"), which comprise the Balance Sheet as at 31st
March, 2015, the Statement of Profit and Loss, the Cash Flow Statement,
and a summary of the Significant Accounting Policies and other
explanatory information for the year then ended.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies act, 2013 ("the Act") with respect
to the preparation of these Financial Statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgements
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
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 judgement, including
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial control system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our qualified audit opinion on the
Financial Statements.
Basis for Qualified Opinion
1. Footnote (i) to Note No. 23 regarding interest provision on
borrowings from some of the institutions and banks which has been made
in the financial statements under simple interest method at the
prevailing / estimated rates applicable on such loans in absence of
relevant documents/confirmations, as a result of which impact of
compound interest/penal charges, wherever applicable, having not been
ascertained, as well as the note therein regarding the matter of
dispute between the Company and the Bankers/Creditors in connection
with charging of interest payment and payment of principal.
2. Footnote No (ii) to Note No. 23 regarding non-provision of Interest
on certain loans and the impact of the non- provision is not presently
ascertainable.
3. Footnote No. 4 (i) (ii) and (iii) of Note No. 15 regarding overdue
Export Bills amounting to Rs. 31787.31 lacs outstanding for long which,
in our opinion, are doubtful of recovery against which adequate
provision has not been made in the financial statements.
4. Footnote 1 of 17 regarding Claims Receivable amounting to Rs.
689.36 lacs due from various banks outstanding for long which in our
opinion are doubtful of recovery against which adequate provision has
not been made in the financial statements.
5. Footnote 3 of Note No. 17 regarding advance of Rs. 3144.73 lacs due
from certain parties which, in our opinion, are considered doubtful of
recovery against which adequate provision has not been made.
6. Footnote 3 of Note No. 16 relating to non-accounting of withdrawals
/ other transactions from certain Bank accounts during the year due to
reasons stated on the said Note 16 (3).
7. Note No. 30 regarding non-compliance of Accounting Standard (AS) 6
: Depreciation Accounting due to non- adoption of Schedule - II of the
Companies Act, 2013 and also non-compliance of mandatory Accounting
Policy for Depreciation required to be followed by the Company, due to
reasons stated in the said Note.
8. In absence of any workings for impairment of assets as per
Accounting Standard (AS) 28 Impairment of Assets, the impact of such
impairment is not ascertainable.
9. Non-provision / non-compliance of Items indicated in (1) to (8)
above constitute a departure from the Accounting Standards referred to
in Section 133 of the Act. Without considering Item Nos. (1), (2), (6),
(7) and (8) above, whose impact on the Company's Statement of Profit
and Loss is presently non-ascertainable, had the provisions indicated
in Item Nos. (3) to (5) been made,
(i) the Loss for the year would have increased by Rs. 35621.40 lacs
(ii) Trade Receivables would have decreased by Rs. 31787.31 lacs
(iii) Short Term Loans and Advances would decreased by Rs. 3834.09 lacs
(iv) The Shareholders' Fund would have been lower by Rs. 35621.40 lacs
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the like effects of the matters
described in the Basis for Qualified Opinion paragraph above, the
aforesaid Financial Statements give the information required by the Act
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India, of the
state of affairs of the Company as at 31st March, 2015 and its loss and
its cash flows for the year ended on that date.
Emphasis of Matters
We draw your attention to the following matters in the Notes to the
Financial Statements:
1. Following Notes to the Financial Statements describe the uncertainty
related to the outcome of the lawsuits / other legal matters and
matters under settlements indicated therein:
(a) Footnote (2) to Note No. 4 regarding legal issues following
securitization of Secured Loans as stated in the said Note.
(b) Footnote (2) of Note No. 15 regarding pending adjustments of Sundry
Debtors against supplies and other liabilities etc. due to the buyers.
In absence of final settlement with the parties and non-receipt of
necessary approval from concerned regulatory authority, extent of the
amount of adjustments so required could not be ascertained.
(c) Footnote to Note No. 6 regarding estimated amount of ' 8722.28 lacs
provided during the year 2002-03 as sales claims and commissions
relating to earlier years from overseas customers of the Company which
is pending for final settlement. Necessary adjustments for such claims
and commissions will be made after final settlement and obtaining
necessary approval from the concerned regulatory authority.
(d) Footnote 1 of Note No 15 and Footnote 2 of Note No. 17 regarding
Debtors and Advances amounting to Rs. 1453.62 lacs and Rs. 1387.19 lacs
respectively relating to Companies, which have become Sick and referred
to BIFR under the Sick Industrial Companies (Special Provisions) Act,
1985. As the rehabilitation scheme of these companies are pending
finalisation, the amount of provision, if any, which may be required
remain unascertainable.
(e) Note No. 32 regarding legal recourse taken by certain banks and
financial institutions for recovery of their dues and the matter is
sub-judice as stated in the said Note.
(f) Note No. 33 regarding non-compliance of certain technical
formalities due to which transfer of certain borrowing facilities to a
body corporate could not be made.
(g) Note No. 34 regarding applications made by the Company with the
Reserve Bank of India from time to time for extension / setting off of
certain overdue bills.
(h) Note No. 35 regarding Debit Note sent by a body corporate in an
earlier year for unilateral transfer back of all assets, not taken into
cognizance by the Company in preparing these Financial Statements as
stated in the said Note.
(i) Note No. 38 regarding claims filed by a body corporate for Rs.
21,625 lacs for non-fulfilment of clauses of the agreement relating to
transfer of Nagpur Unit to them, outcome of which would eventually
arise on finalisation of suit.
(j) Matters disclosed in Note No. 19 relating to Entry Tax,
Central/Commercial Sales Tax Demands, Customs Demands, Professional
Tax/Labour Cases/Water Cess, Electricity Duty, etc., disclosed under
Contingent Liabilities, which are contested by the Company and pending
before various forums / authorities for final decisions.
2. Note No. 4 (Footnote 4), Note No. 7 (Footnote) and Note No. 16
(Footnote 1) to the financial statements regarding non-receipt of
confirmations in respect of borrowings from banks/Financial
Institutions and also debit balances in certain current accounts with
banks due to restructuring being in progress, book balances thereof
have been relied upon.
3. Note No 27 (d) regarding balance with a related party under
reconciliation
4. Footnote 2 & 3 of Note No. 4 to the financial statements regarding
preparation of these financial statements on Going Concern basis for
the reasons stated therein as also the fact that the Company has
accumulated losses and its net worth has been fully eroded Further the
Company has incurred net loss during the current and previous years,
and the Company's current liabilities exceeded its current assets as at
the Balance Sheet date. These conditions, along with other matters set
forth in Notes to Financial Statements, indicate the existence of a
material uncertainty that may cast significant doubt about the
Company's ability to continue as a going concern.
Our opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
i) As required by the Companies (Auditor's Report) Order, 2015 issued
by the Central Government in terms of Sub-section (11) of Section 143
of the Act, we enclose in the Annexure a statement on the matters
specified in the said Order, to the extent applicable to the Company.
ii) As required by Section 143(3) of the Act, we report that
a) We have sought and, except for the matters described in the Basis
for Qualified Opinion paragraph, obtained all the information and
explanations which to the best of our knowledge and belief were
necessary for the purpose of our audit.
b) Except for the possible effects of the matters described in the
Basis for Qualified Opinion paragraph above, 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 Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) Except for the possible effects of the matters described in the
Basis for Qualified Opinion paragraph, in our opinion, the Balance
Sheet, Statement of Profit and Loss and Cash Flow Statement comply with
the Accounting Standards specified under Section 133 of the Act, read
with Rule 7 of the Companies(Accounts) Rules, 2014;
e) The matters described in the Basis for Qualified Opinion paragraph
above, in our opinion, may have an adverse effect on the functioning of
the Company;
f) The matters described in sub-paragraph (1) under the Emphasis of
Matters paragraph above, in our opinion, may have an adverse effect on
the functioning of the Company;
g) On the basis of written representations received from the Directors
as on 31st March, 2015 taken on record by the Board of Directors, none
of the Director is disqualified as on 31st March, 2015 from being
appointed as a director in terms of Section 164(2) of the Act.
h) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position, wherever ascertainable.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
loss.
iii. The Company has not transferred any amount to Investor Education
and Protection Fund (Refer to Footnote No. 1 to Note No.4)
ANNEXURE TO THE AUDITORS' REPORT
The Annexure referred to in our report to the members of UNIWORTH
LIMITED the year ended 31ST March, 2015.
(i) (a) Whether the company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets;
The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. However,
the updation of such records particularly with reference to estimated
useful life of each asset is in process.
(b) Whether these fixed assets have been physically verified by the
management at reasonable intervals; whether any material discrepancies
were noticed on such verification and if so, whether the same have been
properly dealt with in the books of account;
The physical verification of fixed assets, as stated by the management
has been conducted by the Management during the year, wherever
practicable and the reconciliation of the quantities with the book
records in progress. The discrepancies, if any, would be adjusted on
completion of reconciliation / updation of records as stated above.
(ii) (a) Whether physical verification of inventory has been conducted
at reasonable intervals by the management;
Inventories of Raw Materials, Finished Goods, Work in Progress and
Stores & Spares have been physically verified at reasonable intervals
by the Company, except Finished Goods of Rs. 18.40 Lacs lying with
third parties and Rs. 115.51 Lacs under seizure of the Excise
Department
(b) Are the procedures of physical verification of inventory followed
by the management reasonable and adequate in relation to the size of
the company and the nature of its business If not, the inadequacies in
such procedures should be reported;
The procedures of physical verification of inventories followed by
the Management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) Whether the company is maintaining proper records of inventory and
whether any material discrepancies were noticed on physical
verification and if so, whether the same have been properly dealt with
in the books of account.
On the basis of our examination of the records of inventories, we
are of the opinion that the Company is maintaining proper records of
inventories. The discrepancies noticed on verification between physical
stocks and the book records, which were not material, have been
properly dealt with in the books of account.
(iii) Whether the company has granted any loans, secured or unsecured
to companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act. If so,
(a) Whether receipt of the principal amount and interest are also
regular; and
(b) If overdue amount is more than rupees one lakh, whether reasonable
steps have been taken by the company for recovery of the principal and
interest;
The Company has not granted any loan, secured or unsecured, during the
year to any company, firm or other party covered in the register
maintained under section 189 of the Companies Act, 2013.
In this regard, we have relied upon the entries recorded in the
register maintained under section 189 of the Act.
(iv) Is there an adequate internal control system commensurate with the
size of the company and the nature of its business, for the purchase of
inventory and fixed assets and for the sale of goods and services.
Whether there is a continuing failure to correct major weaknesses in
internal control system.
In our opinion and according to the information and explanations given
to us, there are adequate internal control systems commensurate with
the size of the Company and the nature of its business, for the
purchases of inventory and fixed assets and for the sale of goods.
During the course of our audit, no major weakness has been noticed in
the internal control system, nor have there been any continuing failure
on the part of the Company to correct any major weakness.
(v) In case the company has accepted deposits, whether the directives
issued by the Reserve Bank of India and the provisions of sections 73
to 76 or any other relevant provisions of the Companies Act and the
rules framed there under, where applicable, have been complied with?
If not, the nature of contraventions should be stated; If an order has
been passed by Company Law Board or National Company Law Tribunal or
Reserve Bank of India or any court or any other tribunal, whether the
same has been complied with or not?
The Company has not accepted any deposit from the public within the
meaning of sections 73 to 76 or any other relevant provisions of the
Companies Act, 2013.
(vi) Where maintenance of cost records has been specified by the
Central Government under sub- section (1) of section 148 of the
Companies Act, whether such accounts and records have been made and
maintained.
We have broadly reviewed the books of accounts maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under sub- section (1) of section 148 of
the Companies Act, 2013 and are of the opinion that prima facie the
prescribed accounts and records have been made and maintained. However,
we have not made a detailed examination of the records with a view to
determine whether they are accurate or complete.
(vii) (a) Is the company regular in depositing undisputed statutory
dues including provident fund, employees' state insurance, income-tax,
sales-tax, wealth tax, service tax, duty of customs, duty of excise,
value added tax, cess and any other statutory dues with the appropriate
authorities and if not, the extent of the arrears of outstanding
statutory dues as at the last day of the financial year concerned for a
period of more than six months from the date they became payable, shall
be indicated by the auditor.
According to the records of the Company, the Company has been
generally regular in depositing during the year with appropriate
authorities undisputed statutory dues including provident fund,
employees' state insurance, income tax, sales tax, wealth tax, service
tax, customs duty, excise duty, value added tax, cess and any other
statutory dues, where applicable, except in the following cases which
are outstanding for a period of more than six months from the date they
became payable:
VAT Rs. 6.80 lacs
Central Sales Tax Rs. 36.54 lacs
Service tax Rs. 42.81 lacs
Entry Tax Rs. 0.80 lacs
(b) In case dues of income tax or sales tax or wealth tax or service
tax or duty of customs or duty of excise or value added tax or cess
have not been deposited on account of any dispute, then the amounts
involved and the forum where dispute is pending shall be mentioned. (A
mere representation to the concerned Department shall not constitute a
dispute).
According to the records of the Company, following statutory dues
have not been deposited by the Company on account of disputes :
Nature of Amount Period since Forum
dues (Rs. in when
Lacs)
Entry Tax 57.11 1997-98 Appeal with
Commissioner of
Commercial Tax.
Excise Duty 8.64 Prior to 2000 Under Appeal
with CESTAT,
New Delhi
Electricity 18.57 2005 Wit Petition
Duty & before Bilaspur
Cess High Court.
(c) Whether the amount required to be transferred to investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made thereunder has been
transferred to such fund within time.
The Company has not transferred any amount to Investor Education
and Protection Fund. [Refer to Footnote (1) to Note No. 4 (a) ]
(viii) Whether in case of a company which has been registered for a
period not less than five years, its accumulated losses at the end of
the financial year are not less than fifty per cent of its net worth
and whether it has incurred cash losses in such financial year and in
the immediately preceding financial year;
The accumulated losses of the Company at the end of the financial year
have exceeded its net worth and also the Company has incurred cash
losses in the current financial year and in the immediately preceding
financial year.
(ix) Whether the company has defaulted in repayment of dues to a
financial institution or bank or debenture holders? If yes, the period
and amount of default to be reported;
The Company has defaulted in repayment of dues to financial
institutions, banks and debenture holders as under:
(a) As per Original Agreement, all the following Term Loans have become
due for repayments. However, the Company's negotiations with the term
lenders for rescheduling / restructuring is in process:
Nature of Financial Amount Period of
Assistance (Rs. in lacs) Default
a) Term Loan
i) Financial Institution Not Ascertainable
Principal 21172.09
Interest 10686.97
ii) Bank Not Ascertainable
Principal 37585.42
Interest 55087.41
b) Debenture
Nov-convertible Part C
Redeemable Debenture
Principal 1900.62
Interest 196.95
Also refer to Note No. 4
(x) Whether the company has given any guarantee for loans taken by
others from bank or financial institutions, the terms and conditions
whereof are prejudicial to the interest of the company;
The Company has given guarantee for loans taken by Other Company others
from bank or financial institution and the related terms and conditions
are not prejudicial to the interest of the Company.
(xi) Whether term loans were applied for the purpose for which the
loans were obtained;
Based on the information and explanations given to us by the
Management, no Term Loan was obtained by the Company during the year.
(xii) Whether any fraud on or by the company has been noticed or
reported during the year; If yes, the nature and the amount involved is
to be indicated.
Based upon the audit procedures performed during the course of our
audit and information and explanations given by the Management, we
report that no fraud on or by the Company has been noticed or reported
during the year.
For S. S. KOTHARI & CO.
Chartered Accountants
Firm Registration. No. 302034E
A. DATTA
Place : Kolkata Partner
Date : 29th May, 2015. Membership No. 005634
Mar 31, 2014
We have audited the accompanying Financial Statements of Uniworth
Limited, which comprise the Balance Sheet as at 31st March, 2014 and
the Statement of Profit & Loss and the Cash Flow Statement for the year
then ended, and a summary of significant accounting policies and other
explanatory information.
2. 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
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
misstatements, whether due to fraud or error.
3. Auditor''s Responsibility
Our responsibility is to express an opinion on these Financial
Statements based on our audit. We 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 misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the Financial Statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the Financial Statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the Financial Statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
4. Attention is invited to the following:
a) Footnote 3 of Note No. 4 regarding preparation of these Accounts on
Going concern basis.
b) Footnote (i) to Note No. 23 regarding Interest provision on
borrowings from some of the institutions and banks which has been made
in the accounts under simple interest method at the prevailing/
estimated rates applicable on such loans in absence of relevant
documents/ confirmations, as a result of which impact of compound
interest/penal charges wherever applicable having not been ascertained,
as well as the note therein regarding the matter of dispute between the
Company and the Bankers/Creditors in connection with charging of
interest payment and payment of principal.
c) Footnote (ii) to Note No. 23 regarding non provision of Interest
provisions on certain loans borrowings and the impact of the non
provision is not presently ascertainable.
d) Note no. 4 (Footnote 4), Note No. 7 (Footnote) and Note No. 16
(Footnote 1) regarding non receipt of confirmations in respect of
borrowings from Banks/Financial Institutions and also debit balances in
certain current accounts with banks due to restructuring being in
progress, book balances thereof have been relied upon.
e) Footnote (2) of Note No. 15 regarding pending adjustments of Sundry
Debtors against supplies and other liabilities etc due to the buyers.
In absence of final settlement with the parties and non receipt of
necessary approval from concerned regulatory authority, we are unable
to express our opinion on any such adjustments.
f) Footnote to Note No. 6 regarding estimated amount of Rs. 8722.28
lacs being provided during the year 2002-03 as sales claims and
commissions relating to earlier years from overseas customers of the
Company which is pending for final settlement. The necessary
adjustments for such claims and commissions will be made after final
settlement and obtaining necessary approval from the concerned
regulatory authorities, in absence of which we are unable to express
our opinion on such adjustments.
g) Footnote 1 of Note No. 15 and Footnote 2 of Note No. 17 regarding
Debtors/Advances amounting to Rs.2840.81 lacs relating to Companies,
which have become Sick and referred to BIFR Under the Sick Industrial
Companies (Special Provisions) Act, 1985. As the rehabilitation scheme
of this company is pending finalisation, we are unable to comment on
the amount of provision, if any, which may be required
h) In absence of relevant documents/confirmations from banks we are
unable to comment on the current status of Margin deposit with banks
amounting to Rs. 44.99 lacs per Note No.16.
i) Footnote 1 of Note No. 17(b) regarding Claim receivable amounting to
Rs. 689.36 lacs due from various banks outstanding for long which in
our opinion are Doubtful of recovery against which no adequate
provision has been made in the Books of Accounts.
j) Footnote 3 of Note No. 17(b) regarding advance of Rs. 2827.47 lacs
due from a party in respect of which we are unable to form any opinion
as to the nature and purpose of making such advance as also
recoverability of the same.
k) Footnote 2 of Note No. 15 regarding recoverability and adjustment of
Debtor balances as mentioned in the note for which we have relied on
the Management representation.
l) Footnote 4(ii) & Footnote 4(iii) of Note No.15 regarding Overdue
Export Bills amounting to Rs28089.42 lacs outstanding for long which in
our opinion are Doubtful of recovery against which no adequate
provision has been made in the Books of Accounts.
m) Footnote 1 of Note No. 4 regarding non payment and transfer of
matured debenture and interest thereof to the account of Investor
Education & Protection Fund due to the reasons mentioned in the note
for which we are unable to express any opinion.
n) In absence of any workings for impairment of assets as per
Accounting Standard- A28 "Impairment of assets", the impact of such is
not ascertainable.
Resultant impacts of the matters contained in Para nos. (a) to (n)
above are not ascertainable at this stage.
5. Opinion
Subject to our remarks in paragraph 4 above, in our opinion and to the
best of our information and according to the explanations given to us,
the Financial Statements read with other notes thereon, give the
information required by the Companies Act, 1956 in the manner so
required and also 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, 2014;
(b) In the case of Statement of Profit & Loss, of its 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.
6. Report on Other Legal and Regulatory Requirements
i) 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 enclose in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of
the said order to the extent applicable to the company.
ii) 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 as far as appears from our examination of those
books.
c) The Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account; and
d) In our opinion, the Balance Sheet, Statement of Profit & Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
Sub-section (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 Affairs in respect of Section 133 of the Companies Act,
2013, except Accounting Standard-28 "Impairment of Assets" and in the
case of Leave Encashment, which is provided on accrual basis instead of
actuarial valuation as prescribed by Companies (Accounting Standard)
Rules, 2006.
e) As the Company has defaulted in redemption of its debentures, the
directors of the company have become disqualified as on 31st March 2014
from being appointed as director in terms of clause (g) of sub-section
(1) of Section 274 of the Companies Act 1956.
Annexure referred to in the Auditors'' Report to the members of UNIWORTH
LIMITED on the accounts for the year ended 31st March, 2014.
I) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets. However, the updation of such records is in process.
b) The physical verification of the Fixed Assets, as stated by the
Management, has been conducted by the Management whenever practicable
and the reconciliation of the quantities with the book records is in
progress/has been done on a continuous basis as confirmed by the
Management. The differences, if any, arsing out of such reconciliation
to the extent such reconciliation has been done so far have been
adjusted and no serious discrepancies between book records and physical
inventory have been revealed.
c) Substantial part of the Fixed Assets has not been disposed of during
the year as to affect the going concern status.
II) a) The inventory has been physically verified during the year by
the Management, except those lying with third parties / under seizure.
In our opinion, the frequency of verification is reasonable.
b) The procedures of physical verification of inventories followed by
the Management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c) On the basis of our examination of the records of inventory, we are
of opinion that the company is maintaining proper records of inventory.
The discrepancies noticed on verification between physical stocks and
the book records, wherever ascertained were not significant and have
been properly dealt with in the books of account.
III) The Company has neither taken nor granted any loan, secured or
unsecured during the year from/ to companies, firms or other parties
covered in the Register maintained under section 301 of the Companies
Act, 1956. However, we have relied upon the entries recorded in the
Register maintained under section 301 and Management''s representation
in this regard. Accordingly, clauses 4(III) (b) to (g) of the Order are
not applicable.
IV) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and nature of its business
for the purchase of inventory and fixed assets and for the sale of
goods and services. Further, on the basis of our examination of the
books of accounts and according to the information and explanation
given to us, we have not come across any instances of major weaknesses
in the aforesaid internal control system.
V) Based on the audit procedures applied by us and according to the
information and explanations provided by the Management, we are of the
opinion that there are no contracts and arrangements, the particulars
of which need to be entered into the register maintained under section
301 of the Companies Act, 1956. Accordingly clause 4(V) (b) of the
Order is not applicable.
VI) The Company has not accepted any deposits from the public within
the meaning of section 58A and 58AA of the companies Act, 1956 during
the year.
VII) In our opinion, the present internal audit system of the Company
is commensurate with the size of the company and nature of its
business.
VIII) We have broadly reviewed the books of accounts maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under clause (d) of sub- section (1) of
section 209 of the Companies Act, 1956 and are of the opinion that
prime facie, the prescribed accounts and 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.
IX) a) According to the records of the Company, the Company has been
generally regular in depositing undisputed statutory dues including
Provident Fund, Employees State Insurance, Income Tax, Sales Tax,
Wealth Tax, Customs Duty, Excise Duty, Service Tax, Cess and any other
statutory dues during the year with the appropriate authorities where
applicable, except in the following cases which are outstanding for
more than six months:
Sales Tax - Rs. 32.15 lacs
Entry Tax - Rs. 57.12 lacs
Excise Duty - Rs. 8.52 lacs
Electricity Duty & Cess - Rs 185.69 lacs
Service Tax - Rs 38.81 lacs
b) According to the information and explanation given to us, the dues
of Sales tax, Custom duty, Wealth tax, Income tax, Excise duty, Service
tax and Cess which have not been deposited on account of any dispute
and the forum where dispute is pending are as under:
Nature of Liability Rs./Lacs Forum
Excise Duty 1440.17 CESTAT, New Delhi/
Commissioner of Appeal
Water cess 3.65 CSIDC
Sales Tax 199.56 Sales Tax Authorities
Entry Tax 88.58 Dy. Comm. of Commercial Taxes
Electricity Duty 115.45 CGSEB
X) The accumulated losses of the Company are more than its networth.
The Company has incurred cash losses during the current financial year
covered by our audit and also in the immediately preceding financial
year.
XI) The Company has defaulted in repayment of dues to the Financial
Institutions, Bank and debenture holders.
XII) According to the information and explanation 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.
XIV) The Company is not in the business of dealing or trading in
shares. The Company has maintained proper records of transactions and
contracts in respect of shares, securities, debentures and other
investments and timely entries have been made therein. We also report
that the Company has held shares, securities, debentures and other
securities in its own name.
XV) The Company has given guarantee for loans taken by other companies
from banks or Financial Institutions and as per the Management
Representations we are of the opinion that the related terms and
conditions are not prima facie prejudicial to the interests of the
company.
XVI) Based on information and explanations given to us by the
Management, no term loans were obtained by the Company during the year.
Hence this Clause is not applicable.
XVII) On the basis of our overall examination of the Balance Sheet, no
funds raised on short term basis have been used for long term
investment.
XVIII) During the year under audit, the Company has not made any
preferential allotment of shares to parties or companies covered in the
register maintained under section 301 of the Companies Act, 1956.
XIX) The Company has not issued any debentures during the year.
XX) The Company has not raised any money by way of Public Issue during
the year.
XXI) Based upon the audit procedures performed and on the basis of
information and explanations given by the Management, we report that no
fraud on or by the Company has been noticed or reported during the
year.
For S. S. KOTHARI & CO.
Chartered Accountants
Firm Registration No. : 302034E
A. Datta
Place : Kolkata Partner
Date : 29th May, 2014 Membership No. 5634
Mar 31, 2013
1. REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of Uniworth
Limited, which comprise the Balance Sheet as at 31st March''2013 and the
Statement of Profit & Loss and the Cash Flow Statement for the year
then ended, and a summary of significant accounting policies and other
explanatory information.
2. 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. 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 misstatements, whether
due to fraud or error.
3. AUDITOR''S RESPONSIBILITY
Our responsibility is to express an opinion on these financial
statements based on our audit. We 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 misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the 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.
4. ATTENTION IS INVITED TO THE FOLLOWING:
a) Foot note 3 of note 4 regarding preparation of these Accounts on
Going concern basis.
b) i) Footnote (i) to Note no 23 regarding Interest provision on
borrowings from some of the institutions and banks which has been made
in the accounts under simple interest method at the
prevailing/estimated rates applicable on such loans in absence of
relevant documents/ confirmations, as a result of which impact of
compound interest/penal charges wherever applicable having not been
ascertained.
ii) Foot Note (ii) to Note no 23 regarding non provision of Interest
provisions on certain loans borrowings and the impact of the non
provision is not presently ascertainable
iii) Note 4 (Foot Note 4), Note 7 ( Foot Note ) and Note 16 (Foot Note)
regarding non receipt of confirmations in respect of borrowings from
Banks/Financial Institutions and also debit balances in certain current
accounts with banks due to restructuring being in progress, book
balances thereof have been relied upon.
c) Foot Note (2) of Note 15 regarding pending adjustments of Trade
Receivable against supplies and other liabilities etc due to the
buyers. In absence of final settlement with the parties and non receipt
of necessary approval from concerned regulatory authority, we are
unable to express our opinion on any such adjustments.
d) Footnote to Note No. 6 regarding estimated amount of Rs. 8722.28
lacs being provided during the year 2002-03 as sales claims and
commissions relating to earlier years from overseas customers of the
Company which is pending for final settlement. The necessary
adjustments for such claims and commissions will be made after final
settlement and obtaining necessary approval from the concerned
regulatory authorities, in absence of which we are unable to express
our opinion on such adjustments.
e) Footnote 1 of Note No. 15 and Footnote 2 of Note No. 17 regarding
Trade Receivable/Advances amounting to Rs.3295.77 lacs relating to
Companies, which have become Sick and referred to BIFR Under the Sick
Industrial Companies (Special Provisions) Act, 1985. As the
rehabilitation scheme of this company is pending finalisation, we are
unable to comment on the amount of provision, if any, which may be
required
f) In absence of relevant documents/confirmations from banks we are
unable to comment on the current status of Margin deposit with banks
amounting to Rs. 44.99 lacs as per Note No.16.
g) Footnote 1 of Note No. 17 regarding Claim receivable amounting to
Rs. 689.36 lacs due from various banks outstanding for long which in
our opinion are Doubtful of recovery against which no adequate
provision has been made in the Books of Accounts.
h) i) Foot Note 2 of Note No. 15 regarding recoverability and
adjustment of Trade Recievable balances as mentioned in the note for
which we have relied on the Management representation.
ii) Foot Notes 4(ii) & Footnote 4(iii) of Note No.15 regarding Overdue
Export Bills amounting to Rs28089.42 lacs outstanding for long which in
our opinion are Doubtful of recovery against which no adequate
provision has been made in the Books of Accounts.
i) Foot note 1 of Note No. 4 regarding non payment and transfer of
matured debenture and interest thereof to the account of Investor
Education & Protection Fund due to the reasons mentioned in the note
for which we are unable to express any opinion.
j) In absence of any workings for impairment of assets as per
Accounting Standard- A28 "Impairment of assets", the impact of such is
not ascertainable.
Impacts of Para no. (a) to (j) is not ascertainable at this stage.
5. OPINION
Subject to our remarks in paragraph 4 above, in our opinion and to the
best of our information and according to the explanations given to us,
the Financial Statements read with other notes thereon, give the
information required by the Companies Act, 1956 in the manner so
required and also 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, 2013 and
(b) In the case of Statement of Profit & Loss, of its 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.
6. REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
i) As required by the Companies (Auditor''s Report) Order 2003 issued by
the Central Government in terms of Section 227 (4A) of the Companies
Act, 1956, we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said order to the extent
applicable to the company.
ii) 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 the law have
been kept by the company as far as appears from our examination of
those books.
c) The Balance Sheet ,Statement of Profit & Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Statement of Profit & Loss and
Cash Flow Statement dealt with by this report comply with the
requirements of the Accounting Standards referred to in Sub-section
(3C) of Section 211 of the Companies Act, 1956 (as amended) except
Accounting Standard -28 " Impairment of Assets" and in the case of
Leave Encashment, which is provided on accrual basis instead of
actuarial valuation as prescribed by Companies (Accounting Standard)
Rules, 2006.
e) As the Company has defaulted in redemption of its debentures, the
directors of the company have become disqualified as on 31st March 2013
from being appointed as director in terms of clause (g) of sub-section
(1) of Section 274 of the Companies Act 1956
Annexure referred to in the Auditors'' Report to the members of UNIWORTH
LIMITED on the accounts for the year ended 31st March 2013.
I. a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets. However, the updation of such records is in process.
b) The physical verification of the Fixed Assets, as stated by the
Management, has been conducted by the Management whenever practicable
and the reconciliation of the quantities with the book records is in
progress/has been done on a continuous basis as confirmed by the
Management. The differences, if any, arsing out of such reconciliation
to the extent such reconciliation has been done so far have been
adjusted and no serious discrepancies between book records and physical
inventory have been revealed.
c) Substantial part of the Fixed Assets has not been disposed of during
the year as to affect the going concern status.
II. a) The inventory has been physically verified during the year by
the Management, except those lying with third parties. In our opinion,
the frequency of verification is reasonable.
b) The procedures of physical verification of inventories followed by
the Management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c) On the basis of our examination of the records of inventory, we are
of opinion that the company is maintaining proper records of inventory.
The discrepancies noticed on verification between physical stocks and
the book records, wherever ascertained were not significant and have
been properly dealt with in the books of account.
III. The Company has neither taken nor granted any loan, secured or
unsecured during the year from/ to companies, firms or other parties
covered in the Register maintained under section 301 of the Companies
Act, 1956. However, we have relied upon the entries recorded in the
Register maintained under section 301 and Management''s representation
in this regard. Accordingly, clauses 4(III) (b) to (g) of the Order are
not applicable.
IV. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and nature of its business
for the purchase of inventory and fixed assets and for the sale of
goods and services. Further, on the basis of our examination of the
books of accounts and according to the information and explanation
given to us, we have not come across any instances of major weaknesses
in the aforesaid internal control system.
V. Based on the audit procedures applied by us and according to the
information and explanations provided by the Management, we are of the
opinion that there are no contracts and arrangements, the particulars
of which need to be entered into the register maintained under section
301 of the Companies Act, 1956. Accordingly clause 4(V) (b) of the
Order is not applicable.
VI. The company has not accepted any deposits from the public within
the meaning of section 58A and 58AA of the companies Act, 1956 during
the year.
VII. In our opinion, the present internal audit system of the Company
is commensurate with the size of the company and nature of its
business.
VIII. We have broadly reviewed the books of accounts maintained by the
company pursuant to the rules made by the Central Government for the
maintenance of cost records under clause (d) of sub- section (1) of
section 209 of the Companies Act, 1956 and are of the opinion that
prime facie, the prescribed accounts and 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.
IX. a) According to the records of the Company, the Company has been
generally regular in depositing undisputed statutory dues including
Provident Fund, Employees State Insurance, Income Tax, Sales Tax,
Wealth Tax, Customs Duty, Excise Duty, Service Tax, Cess and any other
statutory dues during the year with the appropriate authorities where
applicable, except in the following cases which are outstanding for
more than six months:
Sales Tax - Rs. 27.04 lacs
Entry Tax - Rs. 57.12 lacs
Excise Duty - Rs. 8.55 lacs
Electricity Duty & Cess - Rs. 185.69 lacs
b) According to the information and explanation given to us ,the dues
of Sales tax, Custom duty, wealth tax, Income tax, Excise duty, Service
tax and Cess which have not been deposited on account of any dispute
and the forum where dispute is pending are as under:
Nature of Liability Rs./Lacs Forum
Excise Duty 879.46 CESTAT, New Delhi/
Commissioner of Appeal
Water cess 3.65 CSIDC
Sales Tax 227.05 Sales Tax Authorities
Entry Tax 48.86 Dy. Comm. of Commercial Taxes
X. The accumulated losses of the company are more than its networth.
The company has incurred cash losses during the current financial year
covered by our audit and also in the immediately preceding financial
year.
XI. The company has defaulted in repayment of dues to the Financial
Institutions, Bank and debenture holders.
XII. According to the information and explanation 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.
XIV. The Company is not in the business of dealing or trading in
shares. The Company has maintained proper records of transactions and
contracts in respect of shares, securities, debentures and other
investments and timely entries have been made therein. We also report
that the Company has held shares, securities, debentures and other
securities in its own name.
XV. The company has given guarantee for loans taken by other companies
from banks or Financial Institutions and as per the Management
Representations we are of the opinion that the related terms and
conditions are not prima facie prejudicial to the interests of the
company.
XVI. Based on information and explanations given to us by the
Management, no term loans were obtained by the Company during the year.
Hence this Clause is not applicable.
XVII. On the basis of our overall examination of the Balance Sheet, no
funds raised on short term basis have been used for long term
investment.
XVIII. During the year under audit, the company has not made any
preferential allotment of shares to parties or companies covered in the
register maintained under section 301 of the Companies Act, 1956.
XIX. The Company has not issued any debentures during the year.
XX. The Company has not raised any money by way of Public Issue during
the year.
XXI. Based upon the audit procedures performed and on the basis of
information and explanations given by the Management, we report that no
fraud on or by the Company has been noticed or reported during the
year.
For S. S. KOTHARI & CO.
Chartered Accountants
Firm Registration No. : 302034E
A. Datta Place : Kolkata Partner
Date : 30th May, 2013 Membership No. 5634
Mar 31, 2012
We have audited the attached Balance Sheet of UNIWORTH LIMITED as at
31st March 2012 and also the Statement of Profit and Loss and 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 opinion on these financial
statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. These Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatements. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principle used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditor's Report) Order, 2003 as amended
by the Companies (Auditors Report) (Amendment) Order 2004 issued by the
Central Government of India in terms of sub-section (4A) of section 227
of the Companies Act, 1956, we enclose as Annexure, a statement on the
matters specified in paragraphs 4 & 5 of the said order.
Attention is invited to the following:
a) Foot note 3 of note 4 regarding preparation of these Accounts on
Going concern basis.
b) i) Footnote(i) to Note no 21 regarding Interest provision on
borrowings from some of the institutions
and banks which has been made in the accounts under simple interest
method at the prevailing/ estimated rates applicable on such loans in
absence of relevant documents/ confirmations, as a result of which
impact of compound interest/penal charges wherever applicable having
not been ascertained.
ii) Foot Note (ii) to Note no 21 regarding non provision of Interest
provisions on certain loans / borrowings and the impact of the non
provision is not presently ascertainable
iii) Note 4 (Foot Note 4), Note 7 (Foot Note 1) and Note 15 (Foot Note)
regarding non receipt of confirmations in respect of borrowings from
Banks/Financial Institutions and also debit balances in certain current
accounts with banks due to restructuring being in progress, book
balances thereof have been relied upon.
c) Foot Note (2) of Note 14 regarding pending adjustments of Sundry
Debtors against supplies and other liabilities etc due to the buyers.
In absence of final settlement with the parties and non receipt of
necessary approval from concerned regulatory authority, we are unable
to express our opinion on any such adjustments.
d) Footnote to Note No. 6 regarding estimated amount of Rs. 8722.28
lacs being provided during the year 2002-03 as sales claims and
commissions relating to earlier years from overseas customers of the
Company which is pending for final settlement. The necessary
adjustments for such claims and commissions will be made after final
settlement and obtaining necessary approval from the concerned
regulatory authorities, in absence of which we are unable to express
our opinion on such adjustments.
e) Footnote 1 of Note No. 14 and Footnote 2 of Note No. 16 regarding
Debtors/Advances amounting to Rs.2708.71 lacs relating to Companies,
which have become Sick and referred to BIFR Under the Sick Industrial
Companies (Special Provisions) Act, 1985. As the rehabilitation scheme
of this company is pending finalisation, we are unable to comment on
the amount of provision, if any, which may be required
f) In absence of relevant documents/confirmations from banks we are
unable to comment on the current status of Margin deposit with banks
amounting to Rs. 44.99 lacs per Note No.15.
g) Footnote 1 of Note No. 16(b) regarding Claim receivable amounting to
Rs. 689.36 lacs due from various banks outstanding for long which in
our opinion are Doubtful of recovery against which no adequate
provision has been made in the Books of Accounts.
h) i) Foot Note 2 of Note No. 14 regarding recoverability and
adjustment of Debtor balances as
mentioned in the note for which we have relied on the Management
representation.
ii) Foot Notes 4(ii) & Footnote 4(iii) of Note No.14 regarding Overdue
Export Bills amounting to Rs28089.42 lacs outstanding for long which in
our opinion are Doubtful of recovery against which no adequate
provision has been made in the Books of Accounts.
i) Foot note 1 of Note No. 4 regarding non payment and transfer of
matured debenture and interest thereof to the account of Investor
Education & Protection Fund due to the reasons mentioned in the note
for which we are unable to express any opinion.
j) In absence of any workings for impairment of assets as per
Accounting Standard- A28 "Impairment of assets", the impact of such
is not ascertainable.
Impacts of Para no. (a) to (j) is not ascertainable at this stage.
Further to our comments referred to 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 purpose of our
audit;
b) In our opinion, proper books of account as required by the law have
been kept by the company as far as appears from our examination of
those books.
c) The Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Statement of Profit & Loss and
Cash Flow Statement dealt with by this report comply with the
requirements of the Accounting Standards referred to in Sub-section
(3C) of Section 211 of the Companies Act, 1956 (as amended) except
Accounting Standard -28 " Impairment of Assets" and in the case of
Leave Encashment, which is provided on accrual basis instead of
actuarial valuation as prescribed by Companies (Accounting Standard)
Rules, 2006.
e) As the Company has defaulted in redemption of its debentures, the
directors of the company have become disqualified as on 31st March 2012
from being appointed as director in terms of clause (g) of sub-section
(1) of Section 274 of the Companies Act 1956
f) In our opinion and to the best of our information and according to
the explanation given to us the said accounts subject to our comments
mentioned in point no (a) to (j) above and read with other notes gives
the information required by the Companies Act, 1956 and also subject as
above give a true & fair view in the manner so required in conformity
with the accounting principles generally accepted in India:
(i) In the case of the Balance Sheet, of the state of affairs of the
company as at 31st March, 2012; and
(ii) In the case of Statement of Profit & Loss, of the Loss for the
year ended on that date and
(iii) In the case of Cash Flow Statement, of the cash flow for the year
ended on that date.
Annexure referred to in the Auditors' Report to the members of UNIWORTH
LIMITED on the accounts for the year ended 31st March 2012.
I. a) The company has maintained proper records showing full
particulars, including quantitative
details and situation of fixed assets. However, the updation of such
records is in process.
b) The physical verification of the Fixed Assets, as stated by the
Management, has been conducted by the Management whenever practicable
and the reconciliation of the quantities with the book records is in
progress/has been done on a continuous basis as confirmed by the
Management. The differences, if any, arsing out of such reconciliation
to the extent such reconciliation has been done so far have been
adjusted and no serious discrepancies between book records and physical
inventory have been revealed.
c) Substantial part of the Fixed Assets has not been disposed of during
the year as to affect the going concern status.
II. a) The inventory has been physically verified during the year by
the Management, except those
lying with third parties. In our opinion, the frequency of verification
is reasonable.
b) The procedures of physical verification of inventories followed by
the Management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c) On the basis of our examination of the records of inventory, we are
of opinion that the company is maintaining proper records of inventory.
The discrepancies noticed on verification between physical stocks and
the book records, wherever ascertained were not significant and have
been properly dealt with in the books of account.
III. The Company has neither taken nor granted any loan, secured or
unsecured during the year from/to companies, firms or other parties
covered in the Register maintained under section 301 of the Companies
Act, 1956. However, we have relied upon the entries recorded in the
Register maintained under section 301 and Management's representation
in this regard. Accordingly, clauses 4(III) (b) to (g) of the Order are
not applicable.
IV. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and nature of its business
for the purchase of inventory and fixed assets and for the sale of
goods and services. Further, on the basis of our examination of the
books of accounts and according to the information and explanation
given to us, we have not come across any instances of major weaknesses
in the aforesaid internal control system.
V. Based on the audit procedures applied by us and according to the
information and explanations provided by the Management, we are of the
opinion that there are no contracts and arrangements, the particulars
of which need to be entered into the register maintained under section
301 of the Companies Act, 1956. Accordingly clause 4(V) (b) of the
Order is not applicable.
VI. The company has not accepted any deposits from the public within
the meaning of section 58A and 58AA of the companies Act, 1956 during
the year.
VII. In our opinion, the present internal audit system of the Company
is commensurate with the size of the company and nature of its
business.
VIII We have broadly reviewed the books of accounts maintained by the
company pursuant to the rules made by the Central Government for the
maintenance of cost records under clause (d) of sub- section (1) of
section 209 of the Companies Act, 1956 and are of the opinion that
prime facie, the prescribed accounts and 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.
IX. a) According to the records of the Company, the Company has been
generally regular in depositing
undisputed statutory dues including Provident Fund, Employees State
Insurance, Income Tax, Sales Tax, Wealth Tax, Customs Duty, Excise
Duty, Service Tax, Cess and any other statutory dues during the year
with the appropriate authorities where applicable, except in the
following cases which are outstanding for more than six months :
Sales Tax - Rs. 29.84 lacs
Entry Tax - Rs. 57.12 lacs
Excise Duty - Rs. 8.52 lacs
Electricity Duty & Cess - Rs. 185.69 lacs
b) According to the information and explanation given to us, the dues
of Sales tax, Custom duty, wealth tax, Income tax, Excise duty, Service
tax and Cess which have not been deposited on account of any dispute
and the forum where dispute is pending are as under :
Nature of Liability Rs./Lacs Forum
Excise Duty 873.43 CESTAT, New Delhi/
Commissioner of Appeal
Water cess 3.65 CSIDC
Sales Tax 227.05 Sales Tax Authorities
Entry Tax 48.86 Dy. Comm. of Commercial Taxes
X. The accumulated losses of the company are more than its networth.
The company has incurred cash losses during the current financial year
covered by our audit and also in the immediately preceding financial
year.
XI. The company has defaulted in repayment of dues to the Financial
Institutions, Bank and debenture holders.
XII According to the information and explanation 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.
XIV The Company is not in the business of dealing or trading in shares.
The Company has maintained proper records of transactions and contracts
in respect of shares, securities, debentures and other investments and
timely entries have been made therein. We also report that the Company
has held shares, securities, debentures and other securities in its own
name.
XV. The company has given guarantee for loans taken by other companies
from banks or Financial Institutions and as per the Management
Representations we are of the opinion that the related terms and
conditions are not prima facie prejudicial to the interests of the
company.
XVI. Based on information and explanations given to us by the
Management, no term loans were obtained by the Company during the year.
Hence this Clause is not applicable.
XVII. On the basis of our overall examination of the Balance Sheet, no
funds raised on short term basis have been used for long term
investment.
XVIII.During the year under audit, the company has not made any
preferential allotment of shares to parties or companies covered in the
register maintained under section 301 of the Companies Act, 1956.
XIX The Company has not issued any debentures during the year.
XX The Company has not raised any money by way of Public Issue during
the year.
XXI Based upon the audit procedures performed and on the basis of
information and explanations given by the Management, we report that no
fraud on or by the Company has been noticed or reported during the
year.
For S. S. KOTHARI & CO.,
Chartered Accountants
Firm Registration No. : 302034E
A.Datta
Place : Kolkata Partner
Date : 27th August, 2012 Membership No. 5634
Mar 31, 2011
We have audited the attached Balance Sheet of UNIWORTH LIMITED as at
31st March 2011 and also the Profit and Loss Account and 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 opinion on these financial
statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. These Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatements. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principle used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis
for our opinion.
As required by the Companies (Auditor's Report) Order, 2003 as amended
by the Companies (Auditors Report) (Amendment) Order 2004 issued by the
Central Government of India in terms of sub-section (4A) of section 227
of the Companies Act, 1956, we enclose as Annexure, a statement on the
matters specified in paragraphs 4 & 5 of the said order.
Attention is invited to the following:
a) Note No. B3(ii) regarding preparation of these Accounts on Going
concern basis.
b) i) Note No. B 13 (a) in Schedule 20 regarding Interest provision on
borrowings from some of the institutions and banks which has been made
in the accounts under simple interest method at the
prevailing/estimated rates applicable on such loans in absence of
relevant documents/ confirmations, as a result of which impact of
compound interest/penal charges wherever applicable having not been
ascertained.
ii) Note No. B 13(c) in schedule 20 regarding non provision of Interest
provisions on certain loans / borrowings and the impact of the non
provision is not presently ascertainable.
c) Note No. B 15 in Schedule 20 regarding outstanding principal amount
of loan Rs. 227.30 lacs and interest receivable thereon Rs. 136.69 lacs
is outstanding for long, which in our opinion is doubtful of recovery
but remain un provided for reasons as stated in the note.
d) Note No. B 19 in Schedule 20 regarding pending adjustments of Sundry
Debtors against supplies and other liabilities etc due to the buyers.
In absence of final settlement with the parties and non receipt of
necessary approval from concerned regulatory authority, we are unable
to express our opinion on any such adjustments.
e) i) Note No. B 6 (i) in Schedule 20 regarding estimated amount of Rs.
8722.28 lacs being provided during the year 2002-03 as sales claims and
commissions relating to earlier years from overseas customers of the
Company which is pending for final settlement. The necessary
adjustments for such claims and commissions will be made after final
settlement and obtaining necessary approval from the concerned
regulatory authorities, in absence of which we are unable to express
our opinion on such adjustments.
ii) Note No. B 6 (ii) in schedule 20 regarding provision during the
year of sales claim of Rs. 163.78 Lacs based on the past experience of
the company for which we are unable to express any opinion.
f) Note No. B9 in Schedule 20 regarding Debtors/Advances amounting to
Rs 1789.19 lacs relating to Companies, which have become Sick and
referred to BIFR Under the Sick Industrial Companies (Special
Provisions) Act, 1985. As the rehabilitation scheme of this company is
pending finalisation, we are unable to comment on the amount of
provision, if any, which may be required.
g) In absence of relevant documents/confirmations from banks we are
unable to comment on the current status of Margin deposit with banks
amounting to Rs. 44.99 lacs.
h) Note No. B 17 in Schedule 20 regarding Claim receivable amounting to
Rs. 689.36 lacs due from various banks outstanding for long which in
our opinion are Doubtful of recovery against which no adequate
provision has been made in the Books of Accounts.
i) i) Note No. B5 (i) & (ii) in schedule 20 regarding recoverability
and adjustment of Debtor balances as mentioned in the note for which we
have relied on the Management Representation.
ii) Note No. B 5 (Hi) in Schedule 20 regarding Overdue Export Bills
amounting to Rs.992.30 lacs outstanding for long which in our opinion
are Doubtful of recovery against which no adequate provision has been
made in the Books of Accounts.
j) In the opinion of the management. certain overdue domestic debtors
amounting to Rs. 70.56 lacs as on 31.03.2011 is fully realisable.
However we are unable to make an opinion on the reliability of the
same. Moreover the year-end balances of the certain debtors are also
unconfirmed.
k) Note No. 20 in schedule 20 regarding non payment and transfer of
matured debenture and interest thereof to the account of Investor
Education & Protection Fund due to the reasons mentioned in the note
for which we are unable to express any opinion.
I) In absence of any workings for impairment of assets as per
Accounting Standard- A28 "Impairment of assets", the impact of such is
not ascertainable.
Impacts of Para No. (a) to (I) is not ascertainable at this stage.
Further to our comments in the Annexure referred to 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 purpose of our
audit;
b) In our opinion, proper books of account as required by the law have
been kept by the company as far as appears from our examination of
those books.
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the requirements
of the Accounting Standards referred to in Sub-section (3C) of Section
211 of the Companies Act, 1956 (as amended) except Accounting Standard
-28" Impairment of Assets" and in the case of Leave Encashment, which
is provided on accrual basis instead of actuarial valuation as
prescribed by Companies (Accounting Standard) Rules, 2006.
e) As the Company has defaulted in redemption of its debentures, the
directors of the company have become disqualified as on 31st March 2011
from being appointed as director in terms of clause (g) of sub-section
(1) of Section 274 of the Companies Act 1956.
f) In our opinion and to the best of our information and according to
the explanation given to us the said accounts subject to our comments
mentioned in point no (a) to (I) above and read with other notes in
Schedule 20, particularly Note no B4 & 16, gives the information
required by the Companies Act, 1956 and also subject as above give a
true & fair view in the manner so required 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, 2011; and
(ii) In the case of the Profit & Loss account, of the Loss for the year
ended on that date and
(iii) In the case of Cash Flow Statement, of the cash flow for the year
ended on that date.
Annexure referred to in the Auditors' Report to the members of UNIWORTH
LIMITED on the accounts for the year ended 31 st March 2011.
I. a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets. However, the updation of such records is in process.
b) The physical verification of the Fixed Assets, as stated by the
Management, has been conducted by the Management whenever practicable
and the reconciliation of the quantities with the book records is in
progress/has been done on a continuous basis as confirmed by the
Management. The differences, if any, arising out of such
reconciliation to the extent such reconciliation has been done so far
have been adjusted and no serious discrepancies between book records
and physical inventory have been revealed.
c) Substantial part of the Fixed Assets has not been disposed of during
the year as to affect the going concern status.
II. a) The inventory has been physically verified during the year by
the Management. Except those lying with third parties. In our opinion,
the frequency of verification is reasonable.
b) The procedures of physical verification of inventories followed by
the Management are reasonable and adequate in relation to the size of.
the Company and the nature of its business.
c) On the basis of our examination of the records of inventory, we are
of opinion that the company is maintaining proper records of inventory.
The discrepancies noticed on verification between physical stocks and
the book records, wherever ascertained were not significant and have
been properly dealt with in the books of account.
III. The Company has neither taken nor granted any loan, secured or
unsecured during the year from/ to companies, firms or other parties
covered in the Register maintained under section 301 of the Companies
Act, 1956. However, we have relied upon the entries recorded in the
Register maintained under section 301 and Management's representation
in this regard. Accordingly, clauses 4(lll) (b) to (g) of the Order are
not applicable.
IV.. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and nature of its business
for the purchase of inventory and fixed assets and for the sale of
goods and services. Further, on the basis of our examination of the
books of accounts and according to the information and explanation
given to us, we have not come across any instances of major weaknesses
in the aforesaid internal control system
V. Based on the audit procedures applied by us and according to the
information and explanations provided by the Management, we are of the
opinion that there are no contracts and arrangements, the particulars
of which need to be entered into the register maintained under section
301 of the Companies Act, 1956. Accordingly clause 4(V) (b) of the
Order is not applicable.
VI. The company has not accepted any deposits from the public within
the meaning of section 58A and 58AA of the companies Act, 1956 during
the year.
VII. la our opinion, the present internal audit system is commensurate
with the size of the company and nature of its business.
VIII We have broadly reviewed the books of accounts maintained by the
company pursuant to the rules made by the Central Government for the
maintenance of cost records under clause (d) of sub- section (1) of
section 209 of the Companies Act, 1956 and are of the opinion that
prime facie, the prescribed accounts and 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.
IX. a) According to the records of the Company, the Company has been
generally regular in depositing undisputed statutory dues including
Provident Fund, Employees State Insurance, Income Tax, Sales Tax,
Wealth Tax, Customs Duty, Excise Duty, Service Tax, Cess and any other
statutory dues during the year with the appropriate authorities where
applicable, except in the following cases which are outstanding for
more than six months :
Sales Tax - Rs. 30.81 lacs
Entry Tax - Rs. 57.12 lacs
Excise Duty - Rs. 3.83 lacs
Electricity Duty & Cess - Rs. 185.69 lacs
b) According to the information and explanation given to us, the dues
of Sales tax, Custom duty, wealth tax, Income tax, Excise duty, Service
tax and Cess which have not been deposited on account of any dispute
and the forum where dispute is pending are as under:
X. The accumulated losses of the company are more than its net worth.
The company has incurred cash losses during the current financial year
covered by our audit and also in the immediately preceding financial
year.
XI. The company has defaulted in repayment of dues to the Financial
Institutions, Bank and debenture holders.
XII According to the information and explanation 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.
XIV The Company is not in the business of dealing or trading in shares.
The Company has maintained proper records of transactions and contracts
in respect of shares, securities, debentures and other investments and
timely entries have been made therein. We also report that the Company
has held shares, securities, debentures and other securities in its own
name.
XV. The company has given guarantee for loans taken by other companies
from banks or Financial Institutions and as per the Management
Representations we are of the opinion that the related terms and
conditions are not prima facie prejudicial to the interests of the
company.
XVI. Based on information and explanations given to us by the
Management, no term loans were obtained by the Company during the year.
Hence this Clause is not applicable.
XVII. On the basis of our overall examination of the Balance Sheet, no
funds raised on short term basis have been used for long term
investment.
XVIII. During the year under audit, the company has not made any
preferential allotment of shares to parties or companies covered in the
register maintained under section 301 of the Companies Act, 1956.
XIX. The Company has not issued any debentures during the year.
XX. The Company has not raised any money by way of Public Issue during
the year.
XXI. Based upon the audit procedures performed and on the basis of
information and explanations given by the Management, we report that no
fraud on or by the Company has been noticed or reported during the
year.
For S. S. KOTHARI & CO.
Chartered Accountants
Firm Registrati on No.: 302034E
A. Datta
Place: Kolkata Partner
Date : 26th August, 2011 Membership No. 5634
Mar 31, 2010
We have audited the attached Balance Sheet of UNIWORTH LIMITED as at
31st March 2010 and also the Profit and Loss Account and 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 opinion on these financial
statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. These Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatements. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principle used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditors Report) Order, 2003 as amended
by the Companies (Auditors Report) (Amendment) Order 2004 issued by the
Central Government of India in terms of sub-section (4A) of section 227
of the Companies Act, 1956, we enclose as Annexure, a statement on the
matters specified in paragraphs 4 & 5 of the said order.
Attention is invited to the following :
a) Note No. B3(ii) regarding preparation of these Accounts on Going
concern basis.
b) i) Note No. B 13 (a) in Schedule 20 regarding Interest provision on
borrowings from some of the institutions and banks which has been made
in the accounts under simple interest method at the
prevailing/estimated rates applicable on such loans in absence of
relevant documents/ confirmations, as a result of which impact of
compound interest/penal charges wherever applicable having not been
ascertained.
ii) Note No. B 13(c) in schedule 20 regarding non provision of Interest
provisions on certain loans / borrowings and the impact of the non
provision is not presently ascertainable.
c) Note No. B 15 in Schedule 20 regarding outstanding principal amount
of loan Rs. 227.30 lacs and interest receivable thereon Rs. 136.69 lacs
is outstanding for long, which in our opinion is doubtful. of recovery
but remain unprovided for reasons as stated in the note.
d) Note No. B 19 in Schedule 20 regarding pending adjustments of Sundry
Debtors against supplies and other liabilities etc due to the buyers.
In absence of final settlement with the parties and non receipt of
necessary approval from concerned regulatory authority, we are unable
to express our. opinion on any such adjustments.
e) i) Note No. B 6 (i) in Schedule 20 regarding estimated amount of Rs.
8722.28 lacs being provided during the year 2002-03 as sales claims and
commissions relating to earlier years from overseas customers of the
Company which is pending for final settlement. The necessary
adjustments for such claims and commissions will be made after final
settlement and obtaining necessary approval from the concerned
regulatory authdrities, in absence of which we are unable to express
our opinion on such adjustments.
ii) Note No. B 6 (ii) in schedule 20 regarding provision of sales claim
of Rs. 60.51 Lacs based on the past experience of the company for which
we are unable to express any opinion.
f) Note No. B 9 in Schedule 20 regarding Debtors/Advances amounting to
Rs 2509.86 lacs relating to Companies, which.have become Sick and
referred to BIFR Under the Sick Industrial Companies (Special
Provisions) Act, 1985. As the rehabilitation scheme of this company is
pending finalisation, we are unable to comment on the amount of
provision, if any, which may be required.
g) In absence of relevant documents/confirmations from banks we are
unable to comment on the current status of Margin deposit with banks
amounting to Rs. 44.99 lacs.
h) Note No. B 17 in Schedule 20 regarding Claim receivable amounting to
Rs. 689.36 lacs due from various banks outstanding for long which in
our opinion are Doubtful of recovery against which no adequate
provision has been made in the Books of Accounts.
i) i) Note No. B5 (i) & (ii) in schedule 20 regarding recoverability
and adjustment of Debtor balances as mentioned in the note for which we
have relied on the Management Representation.
ii) Note No. B 5 (Hi) in Schedule 20 regarding Overdue Export Bills
amounting to Rs.2903.85 lacs outstanding for long which in our opinion
are Doubtful of recovery against which no adequate provision has been
made in the Books of Accounts.
j) In the opinion of the management.certain overdue domestic debtors
amounting to Rs. 70.56 lacs as on 31.03.2010 is fully realisable.
However we are unable to make an opinion on the realisability of the
same. Moreover the year-end balances of the certain debtors are also
unconfirmed.
k) Note No. 20 in schedule 20 regarding non payment and transfer of
matured debenture and interest thereof to the account of Investor
Education & Protection Fund due to the reasons mentioned in the note
for which we are unable to express any opinion.
l) In absence of any workings for impairment of assets as per
Accouhting Standard- A28 "Impairment of assets", the impact of such is
not ascertainable.
Impacts of Para No. (a) to (I) is not ascertainable at this stage.
Further to our comments in the Annexure referred to 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 purpose of our
audit;
b) In our opinion, proper books of account as required by the law have
been kept by the company as far as appears from our examination of
those books.
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the requirements
of the Accounting Standards referred to in Sub-section (3C) of Section
211 of the Companies Act, 1956 (as amended) except Accounting Standard
-28 "Impairment of Assets" and in the case of Leave Encashment, which
is provided on accrual basis instead of actuarial valuation as
prescribed by Companies (Accounting Standard) Rules, 2006.
e) As the Company has defaulted in redemption of its debentures, the
directors of the company have become disqualified as on 31st March 2010
from being appointed as director in terms of clause (g) of sub-section
(1) of Section 274 of the Companies Act 1956.
f) In our opinion and to the best of our information and according to
the explanation given to us the said accounts subject to our comments
mentioned in point no (a) to (I) above and read with other notes in
Schedule 20, particularly Note no B4 &16, gives the information
required by the Companies Act, 1956 and also subject as above give a
true & fair view in the manner so required in conformity with the
accounting principles generally accepted in India:
(i) In the case of the Balance Sheet, of the state of affairs of the
company as at 31st March, 2010; and
(ii) In the case of the Profit & Loss account, of the Loss for the year
ended on that date and
(iii) In the case of Cash Flow Statement, of the cash flow for the year
ended on that date.
Annexure referred to in the Auditors Report to the members of UNIWORTH
LIMITED on the accounts for the year ended 31st March 2010.
I. a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets. However, the updation of such records is in process.
b) The physical verification of the Fixed Assets, as stated by the
Management, has been conducted by the Management whenever practicable
and the reconciliation of the quantities with the book records is in
progress/has been done on a continuous basis as confirmed by the
Management. The differences, if any, arsing out of such reconciliation
to the extent such reconciliation has been done so far have been
adjusted and no serious discrepancies between book records and physical
inventory have been revealed.
c) Substantial part of the Fixed Assets has not been disposed of during
the year as to affect the going concern status.
II. a) The inventory has been physically verified during the year by
the Management. In our opinion, the frequency of verification is
reasonable;
b) The procedures of physical verification of inventories followed by
the Management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c) On the basis of our examination of the records of inventory, we are
of opinion that the company is maintaining proper records of inventory.
The discrepancies noticed on verification between physical stocks and
the book records, wherever ascertained were not significant and have
been properly dealt with in the books of account.
III. The Company has neither taken nor granted any loan, secured or
unsecured during the year from/ to companies, firms or Other parties
covered in the Register maintained under section 301 of the Companies
Act, 1956. However, we have relied upon the entries recorded in the
Register maintained under section 301 and Managements representation
in this regard. Accordingly, clauses 4(lll) (b) to (g) of the Orderare
not applicable.
IV. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and nature of its business
for the purchase of inventory and fixed assets and for the sale of
goods and services. Further, on the basis of our examination of the
books of accounts and according to the information and explanation
given to us, we have not come across any instances of major weaknesses
in the aforesaid internal control system..
V Based on the audit procedures applied by us and according to the
information and explanations provided by the Management, we are of the
opinion that there are no contracts and arrangements, the particulars
of which need to be entered into the register maintained under section
301 of the Companies Act, 1956. Accordingly clause 4(V) (b) of the
Order is not applicable.
VI. The company has not accepted any deposits from the public within
the meaning of section 58A and 58AA of the companies Act, 1956 during
the year.
VII. In our opinion, the internal audit system is commensurate with
the size of the company and nature of its business.
VIII We have broadly reviewed the books of accounts maintained by the
company pursuant to the rules made by the Central Government for the
maintenance of cost records under clause (d) of sub- section (1) of
section 209 of the Companies Act, 1956 and are of the opinion that
prime facie, the prescribed accounts and 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.
IX. a) According to the records of the Company, the Company has been
generally regular in depositing undisputed statutory dues including
Provident Fund, Employees State Insurance, Income Tax, Sales Tax,
Wealth Tax, Customs Duty, Excise Duty, Service Tax, Cess and any other
statutory dues during the year with the appropriate authorities where
applicable, except in the following cases which are outstanding for
more than six months :
Sales Tax - Rs. 39.20 lacs
Entry Tax - Rs. 57.12 lacs
Excise Duty - Rs. 3.83 lacs
Electricity Duty & Cess - Rs. 185.69 lacs
b) According to the information and explanation given to us, the dues
of Sales tax, Custom duty, wealth tax, Income tax, Excise duty, Service
tax and Cess which have not been deposited on account of any dispute
and the forum where dispute is pending are as under:
Nature of Liability Rs./Lacs Forum
Excise Duty 873.43 CESTAT, New Delhi/
Commissioner of Appeal
Water cess 3.65 CSIDC
Sales Tax 62.09 Sales Tax Authorities
Entry Tax 48.86 Dy.Comm.of Commercial
Taxes
X The accumulated losses of the company are more than its networth. The
company has incurred cash losses during the current financial year
covered by our audit and also in the immediately preceding financial
year.
XI. The company has defaulted in repayment of dues to the Financial
Institutions, Bank and debenture holders.
XII According to the information and explanation 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.
XIV The Company is not in the business of dealing or trading in shares.
The Company has maintained proper records of transactions and contracts
in respect of shares, securities, debentures and other investments and
timely entries have been made therein. We also report that the Company
has held shares, securities, debentures and other securities in its own
name.
XV. The company has given guarantee for loans taken by other companies
from banks or Financial Institutions and as per the Management
Representations we are of the opinion that the related terms and
conditions are not prima facie prejudicial to the interests of the
company.
XVI. Based on information and explanations given to us by the
Management, no term loans were obtained by the Company during the year.
Hence this Clause is not applicable.
XVII. On the basis of our overall examination of the Balance Sheet, no
funds raised on short term basis have been used for long term
investment.
XVIII. During the year under audit, the company has not made any
preferential allotment of shares to parties or companies covered in the
register maintained under section 301 of the Companies Act, 1956.
XIX. The Company has not issued any debentures during the year.
XX The Company has not raised any money by way of Public Issue during
the year.
XXI. Based upon the audit procedures performed and on the basis of
information and explanations given by the Management, we report that no
fraud on or by the Company has been noticed or reported during the
year.
For S.S.KOTHARI & CO.,
Chartered Accountants
Firm Registration No. : 302034E
A.Datta
Place : Kolkata Partner
Date : 25th August, 2010 Membership No. 5634
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