| We have audited the accompanying financial statements of Universal
Prime Aluminium Limited ("the Company"), which comprise the Balance
Sheet as at March 31, 2014, and the Statement of Profit and Loss and
Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards notified under the Companies Act, 1956 ("the
Act") read with the General Circular 15/2013 dated 13th September 2013
of the Ministry of Corporate Affairs in respect of section 133 of the
companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial 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 qualified audit opinion.
Basis for Qualified Opinion
I. The liabilities for employee benefits are not being made in
accordance with clauses of Accounting Standard 15 - Employee Benefit
(Revised).
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the Basis for Qualified Opinion paragraph, the financial
statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) in the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of Matter
I. Attention is invited to note no. 19.1 forming part of Financial
Statement regarding preparation of accounts on "Going Concern" basis
despite discontinuation of manufacturing activity and disposing off of
entire plant and machinery. "Going Concern" assumption is subject to
Company's ability to set up manufacturing facility as described
therein. Our opinion is not qualified in this respect.
II. We draw attention to Note below Note No.6 with respect to
disclosure requirement under Micro Small & Medium Enterprises
Development Act; Information has been sought from suppliers under MSME
Act 2006. Pending receipt of such confirmation disclosure could not be
furnished. Our opinion is not qualified in respect of this matter.
III. We draw attention to Note no. 19.10 related to provision not being
made for overdue redemption proceeds of Redeemable Debentures; we are
unable to express an opinion with regard to the extent of
recoverability / realisability of such overdue receivable amounts of "
2500000 due for redemption in March 2014. Our opinion is not qualified
in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2003
("theOrder") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required under provisions of section 227(3) of the Companies Act
1956, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) in our opinion, the Balance Sheet, the Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards notified
under the companies Act, 1956 read with the General Circular 15/2013
dated 13 September 2013 of the Ministry of Corporate Affairs in respect
of section 133 of the companies Act, 2013;
e) on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO AUDITORS' REPORT
Referred to in Paragraph 3 of our Report of even date
1. (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) Company has not carried out physical verification of assets during
the year under audit.
(c) During the year company has not disposed off any substantial part
of fixed assets.
2. (a) Company has not physically verified the inventory during the
year under audit
(b) As the physical verification is not being carried out other
sub-clauses are not applicable
3. (a) As per the information and explanation given to us, the Company
has granted unsecured loans to two companies covered under section 301
the Companies Act 1956. Total amount given during the year aggregated
to " 84,00,000in addition to loans granted during the previous year.
The maximum outstanding aggregated to " 4,80,40,000and outstanding as
at year end aggregated to " 4,45,50,636.
(b) In our opinion, the rate of interest on which loan have been given
to parties listed in register maintained under Section 301 of the
Companies Act, 1956 is not prejudicial to the interest of the Company.
(c) The party to whom loan is granted was regular in the payment of
interest. No repayment period is prescribed hence comment on regular
repayment of principle cannot be provided.
(d) As repayment period for principle amount is not stipulated the
clause 4 (iii) (d) related to steps taken for recovery is not
applicable.
(e) The Company has not taken any loans, secured or unsecured from
Companies, firms or other parties covered in the Register maintained
under section 301 of the Companies Act, 1956. Accordingly clause
4iii(f) and iii(g) of the order are not applicable.
4. In our opinion and according to the information and explanations
given to us, the clause 4 (iv)is not applicable as company is not in
operation and there were no transaction of purchase of inventory and
fixed asset.
5. Based on the Audit procedures performed and according to the
information and explanations given to us the transactions covered by
Section 301 are being recorded in the Register maintained in pursuance
of section 301 of the Companies Act, 1956.
6. The company has not accepted any deposits from the public within
the provisions of section 58A and 58AA of the Companies Act, 1956 or
any relevant provisions of the Act and the Companies (Acceptance of
Deposit Rules 1975 apply.
7. The company does not have any formal internal audit system.
8. According to the information given to us, the provisions of section
209(1) (d) for maintenance of cost recordsare not applicable in view of
discontinuation of manufacturing operations.
9. (a) The Company has been generally regular in depositing undisputed
statutory dues including provident fund, employee's state insurance,
income tax, sales tax, service tax, excise duty, custom duty and other
material dues with appropriate authorities, as applicable to the
Company
(b) The details of dues which are not deposited on account of dispute
are detailed below:
* Central Sales Tax Demand contested under appeal " 1,46,202 (Previous
Year " 1,46,202),
* Other disputed claims -Telephone Exp. dues at Hyderabad " 140000
(Previous Year " 140000)
* Property taxes of PendharGrampanchayat of " 862574 demanded by
Grampanchayat vide demand notice no. 177dt. 18-2-2006 for the period up
to 31-3-2006 against which company has filed special suit in the court
of Civil Judge Senior division Panvel.
10. Company's accumulated losses at the end of financial year do not
exceed 50% of its Net worth. Company has not incurred cash loss during
the year under audit as well in the immediately preceding financial
year.
11. According to the records, Company has not obtained loan from any
financial institution and banks thus the clause is not applicable.
12. 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.
13. The Company is not a chit fund or nidhi /mutual benefit
fund/society.
14. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Order are not applicable to the
Company.
15. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from bank or financial institutions.
16. The Company has not availed credit facilities from the Banks;
hence clause 16 is not applicable.
17. Company has not raised any funds from bank or other institutions
thus clause 17 is not applicable.
18. 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.
19. On the basis of records made available to us, the Company has not
issued any debentures; therefore the creation of charges does not
arise.
20. The Company has not raised any money by way of Public Issue during
the year.
21. To the best of our knowledge and belief and as represented to us
by the management and on the basis of our examination, during the year
no fraud on or by the company has been noticed or reported by/to us
during the course of our audit.
For SINGHI & CO.
Chartered Accountants
Firm Registration No. 302049E
S. Chandrasekhar
Place : Mumbai Partner
Dated : 30th May 2014 Membership No. 007592 |