Nicco Uco Alliance Credit Ltd.
|BSE: 523209||Sector: Financials|
|NSE: N.A.||ISIN Code: INE917B01023|
|BSE LIVE 13:19 | 07 Aug||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
|BSE: 523209||Sector: Financials|
|NSE: N.A.||ISIN Code: INE917B01023|
|BSE LIVE 13:19 | 07 Aug||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
To the Members of NICCO UCO ALLIANCE CREDIT LIMITED
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of Nicco Uco Alliance CreditLimited which comprise the Balance Sheet as at March 312016 and the Statement of Profitand Loss and Cash Flow Statement for the year then ended and a summary of significantaccounting 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 Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the Accountingprinciples generally accepted in India including the Accounting Standards specified undersection 133 of the Act read with rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for accountingpolicies; making judgements and estimates that are reasonable and prudent; and designimplementation and maintenance of internal financial controls that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the financial statements that give a true and fairview and are free from material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under. We conducted our audit in accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe financial statements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the financialstatements.
BASIS FOR QUALIFIED OPINION
a) Note No. 2.21 regarding cancellation of certificate of registration of the companyto carry out non-banking financial activities by Reserve Bank of India (RBI) vide itsorder dated 31st March 2005 against which the company has preferred an appeal before theAppellate Authority for Non-Banking Finance Company (NBFC) Joint Secretary Ministry ofFinance Govt. of India New Delhi which as stated is pending.
As the decision with regard to appeal against cancellation of license is pending forreasons as stated in the note above the accounts of the company have been prepared ongoing concern assumption on the basis of legal opinion obtained. In the event of adversedecision/ development the financial statements may require necessary adjustments in thevalue of its assets and liabilities.
b) Note No. 2.3.vii regarding non compliance with order of Company Law Board (CLB) inrepayment of its Fixed Deposits liability and other accounting violation against whichlegal proceedings have been initiated by Serious Fraud Investigation Office.
c) Note No.2.3.ii (b) regarding non-confirmation of balances by Banks and FinancialInstitutions (FI's) in whose Books the account of Company has turned Non Performing Assets(NPAs).
d) Note No.2.23 regarding non-charging of interest on dues to banks and financialinstitution coming under the purview of consortium resulting in reduction of loss by Rs.67 crores.
Except for Paragraph (d) the impact of other paragraphs on this loss after tax andshareholders funds of the company are not ascertainable.
The impact of above paragraphs on the "Loss After Tax" and"Shareholder's Funds" of the company is unascertainable.
In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matters described in the Basis for QualifiedOpinion paragraph the financial statements give the information required by the Act inthe manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India :
a) in the case of the Balance Sheet of the state of affairs of the Company as at March312016;
b) in the case of the Statement of Profit and Loss of the Loss for the year ended onthat date; and
c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.
EMPHASIS OF MATTER
Attention is invited to the following points
Note no. 2.3 iv (a to d) regarding application filed by different banks forming theconsortium of bankers with Debt Recovery Tribunal for and by International FinanceCorporation Washington with Hon'ble Calcutta High Court for recovery of their dues.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of sub-section (11) of section 143 of the Act we give in theAnnexure - 2 a statement on the matters specified in paragraphs 3 and 4 of the Order tothe extent applicable.
2. As required under section 143(3) of the Act we report that :
a. we have obtained all the information and explanations which to the best of ourknowledge 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 theCompany so far as appears from our examination of those books.
c. the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account.
d. in our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards notified under Section 133 of the CompaniesAct 2013 read with Rule 7 of the company accounts rules 2014.
e. On the basis of written representations received from the directors as on March312016 and taken on record by the Board of Directors none of the directors isdisqualified as on March 312016 from being appointed as a director in terms ofsub-section (2) of section 164 of the Companies Act 2013.
f. In our opinion the company has reasonably adequate Internal Financial Control Systemin place providing operating effectiveness of such control. A separate report is attachedin Annexure - 1.
g. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us :
(i) The company has disclosed the details of pending litigation in Note 2.24 impactwhereof is not readily ascertainable.
(ii) There is no long term contracts including derivative contracts which requiresprovision for material foreseeable losses.
(iii) There is no delay in transferring amounts to be transferred to Investor Educationand Protection Fund.
Annexure - 1
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of NICCO UCOALLIANCE CREDIT LIMITED ("the Company") as of 31st March 2016 in conjunctionwith our audit of the financial statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects. Our auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
Attention is invited to the paragraph on qualified opinion in our audit report on thestandalone financial statements of even date. In our opinion subject to the abovequalification which have arisen out of material deficiency in financial control over thepast years the company has maintained proper control over financial reporting during theyear under review.
Annexure - 2
ANNEXURE TO THE AUDITORS' REPORT AS REFERRED TO IN PARA OF THE SAID REPORT OF EVEN DATE
1. (a) The Company has maintained proper records to show full particulars includingquantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified during the year at reasonableintervals by the management and no material discrepancies were noticed on suchverification.
2. (a) There is no live agreement for lease and hire purchase stock as on date. Allsuch assets have turned Non-performing and necessary provision has been made for the same.Physical verification for the same has not been done during the year. However as explainedto us by the management there is little scope for doing the same.
(b) Since the company has not conducted the physical verification of its inventoriesthe question of following proper procedure does not arise.
3. According to the information and explanations given to us by the management thecompany has not given any loan secured or unsecured during the year to Companies firms orother parties covered in the Register maintained u/s 189 of the Companies Act 2013 exceptinterest free unsecured advances (net) given to its subsidiary company the maximum amountoutstanding at any time during the year and closing balance as on 31.03.2016 were Rs. 1.37Lacs and Rs. 1.37 Lacs respectively. As explained to us the above advance is repayable ondemand.
4. The company has not given any loan to its directors. The investment made by thecompany exceeds the limit stipulated U/S 186 of the Companies Act 2013. However theinvestments were acquired at a time when the company was register as NBFC and henceexempted from the relevant provision.
5. The Company has not accepted any deposit during the year from the public as per thedirectives issued by the Reserve Bank of India and the provisions of Section 73 or anyother relevant provisions of the Companies Act 2013 and the rules made there under. Incompliance with the order of Hon'ble High Court the company has taken steps for meetingthe principal amount of fixed deposit liability through issue of new shares.
6. As per the information and explanations given to us the Company has given yearlymaintenance job of its Wind Mills to outside agencies on contract. As explained to usthere are no other costs for which cost records are to be maintained.
7. (a) According to the records of the company during the year the company hasgenerally been regular in depositing with the
appropriate authorities undisputed statutory dues including provident fund investoreducation and protection fund employee state insurance income tax sales tax wealthtax service tax custom duty excise duty cess and any other statutory dues whicheverapplicable except for default in deposit of brought forward balances of Service Taxamounting to Rs.2932997/.
(b) According to the records of the company the dues of sales tax custom duty wealthtax income tax excise duty service tax and cess which have not been deposited onaccount of any dispute and the forum where the disputes are pending are as under:
* The above figures are as per the information made available to us.
8. For details of default in repayment of loans to banks and financial institutionsreference may please be made to note no. 2.3 (XII) and 2.5 (VI).
9. The company has not raised any money by way of initial public offer or furtherpublic offer or term loan.
10. To the best of our knowledge and belief and according to the information andexplanations given to us no fraud on or by the company has been noticed or reportedduring the year.
11. Managerial remuneration has been paid in compliance with Section 197 read withSchedule V of Companies Act 2013.
12. The company is not a Nidhi Company.
13. Except for an unsecured advance to subsidiary company there was no othertransaction with related parties
14. The company had not made any preferential allotment on private placement of sharesor fully on partly convertible debentures.
15. The company has not entered into any non cash transaction with directors or personsconnected with him.
16. The company was earlier registered U/S 45-1A of Reserve Bank of India Act 1934.Registration has since been cancelled by Reserve Bank of India.