| We have audited the accompanying financial statements of M/s.
UNIVERSAL STARCH CHEM ALLIED LIMITED ("the Company"), which comprise
the Balance Sheet as at 31st March, 2015, the Statement of Profit and
Loss, the Cash Flow Statement for the year then ended, and a summary of
the significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position and financial performance
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 of the assets of the Company and for preventing and
detecting frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and estimates that
are reasonable and prudent; and design, implementation and maintenance
of 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 standalone
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 Section143(10) of the Act. Those Standards require that
we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements. We
believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according
to the explanations given to us, the aforesaid financial
statements give the information required by the Act in the
manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India:
a) In case of its Balance Sheet of the state of affairs of the Company
as at 31st March 2015.
b) In case of Statement of Profit and Loss Account of the loss for the
year ended on that date.
c) In case of Cash flow statement of its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements as required by
Section143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books.
c) The Balance Sheet and Statement of Profit and Loss dealt with by
this Report are in agreement with the books of accounts of the company;
d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014
e) As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section 11 of section 143 of the Companies Act, 2013, we give in
the annexure a statement on the matters specified in paragraphs 3 and 4
of the order;
f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company does not have any pending litigations which would
impact its financial position.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
Annexure to Independent Auditors' Report
(Referred to in Paragraph (f) under the heading of "Report on Other
Legal and regulatory requirements" of our Report of even date)
1. In respect of its Fixed Assets
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
(b) As explained to us, all the assets have been physically verified by
the management in a phased periodical manner, which in our opinion is
reasonable having regard to the size of the Company and the nature of
its assets. No material discrepancies were noticed on such
verification.
2. In respect of its Inventory
(a) The inventory has been physically verified by the management at
reasonable intervals.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
3. The Company has not granted loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 189 of Companies Act, 2013. Accordingly, clauses (a) and
(b) are not applicable to the Company.
4. 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 the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed of any continuing failure to correct major
weaknesses in internal control system.
5. The company has obtained deposit from public / shareholders as
defined according to the provisions of section 73 to 76 of the
Companies Act, 2013 and the Rules framed there under. These deposits
were obtained prior to April 1, 2014 and no new deposits were obtained
during the year. In respect of old deposits, the company has made an
application to the Company Law Board for obtaining further time for
repaying the deposit.
6. We have broadly reviewed the books of account maintained by the
company pursuant to the rules made by the Central Government of India,
the maintenance of cost records has been prescribed 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. We have not, however made a detailed examination of the
cost records with a view to determine whether they are accurate or
complete.
7. In respect of Statutory dues
(a) As per the information and explanations given to us and as per the
records of the Company, the Company is generally regular in depositing
with appropriate authorities undisputed statutory dues including
provident fund, investor education protection fund, employees' state
insurance, income tax, sales tax, wealth tax, Service tax, custom duty,
excise duty, value added tax, cess and other material statutory dues
applicable to it, with appropriate authorities.
(b) According to the information and explanations given to us and the
records of the Company examined by us, the particulars of dues of not
deposited on account of dispute in respect of income tax, wealth tax,
Sales tax, excise, service tax, customs duty, excise duty, value added
tax and cess are as follows:
Name of Nature of Amount Period to Forum of
Statute Dues (Rs.) which it Dispute
relates
Central Excise 42,83,966/- 2006-2007 CESTAT.
Excise Act duty
(c) According to the information and explanations given to us, there is
no 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.
8. The Company's accumulated loss at the end of the financial year is
not more than Fifty percent of the net worth of the Company. The
Company has not incurred cash loss during the year, and during the
immediately preceding financial year.
9. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions or banks.
10. According to the information and explanations offered to us and
the records examined by us, as the company has not given any guarantee
for loan taken by others from banks or financial institutions, whereof
are prejudicial to the interest of the company, is not applicable.
11. The Company has not raised new term loans from banks during the
year. The term loans outstanding at the beginning of the year have been
applied for the purpose for which they were raised.
12. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For M B Agrawal & Co.
Chartered Accountants
FRN No. 100137W
Harshal Agrawal
Place: Mumbai Partner
Date: 29th May, 2015 M.No.109438
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