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Udaipur Cement Works Ltd.

BSE: 530131 Sector: Industrials
NSE: JKUDYOG ISIN Code: INE225C01029
BSE LIVE 15:52 | 18 Aug 31.70 -0.50
(-1.55%)
OPEN

31.90

HIGH

32.00

LOW

31.15

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 31.90
PREVIOUS CLOSE 32.20
VOLUME 145922
52-Week high 39.20
52-Week low 15.50
P/E
Mkt Cap.(Rs cr) 936
Buy Price 31.70
Buy Qty 549.00
Sell Price 0.00
Sell Qty 0.00
OPEN 31.90
CLOSE 32.20
VOLUME 145922
52-Week high 39.20
52-Week low 15.50
P/E
Mkt Cap.(Rs cr) 936
Buy Price 31.70
Buy Qty 549.00
Sell Price 0.00
Sell Qty 0.00

Udaipur Cement Works Ltd. (JKUDYOG) - Auditors Report

Company auditors report

To the Members of Udaipur Cement Works Limited

Report on the Financial Statements

We have audited the accompanying financial statements (Standalone) of Udaipur CementWorks Limited ("the Company") which comprise the Balance Sheet as at 31stMarch 2016 the Statement of Profit and Loss the Cash Flow Statement for the year endedand a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the (Standalone) Financial Statements

The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of these(Standalone) financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes the maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and for preventing and detecting the frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these (Standalone) financial statementsbased on our audit.

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 thereunder.

We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the (Standalone) financial statements. The procedures selected dependon the auditor's judgment including the assessment of the risks of material misstatementof the financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the financial statements that give true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by Company's Directors as well asevaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the (Standalone) financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid (Standalone) financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2016 and its Profit and its cash flows for the year ended on that date.

Report on other Legal and Regulatory Requirements

1) As required by the Companies (Auditor's Report) Order 2016 (''the Order") asamended issued by the Central Government of India in terms of subsection (11) of section143 of the Companies Act 2013 we give in the Annexure - A a statement on thematters specified in paragraph 3 and 4 of the Order.

2) As required by section 143(3) of the Act we report that:

a) We have sought and obtained all the information and explanations which to the bestof 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 theCompany so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

d) In our opinion the aforesaid (Standalone) financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e) On the basis of written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms of Section164(2) of the Act.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure - B".

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 impact of pending litigations on its financialposition in its financial statements - Refer Note No. 29 to the financial statements.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For OM PRAKASH S. CHAPLOT & CO.
Chartered Accountants
FRN: 000127C
O.P. CHAPLOT
Place: Udaipur Partner
Date : 13th May 2016 M. NO. 010184

"Annexure - A" to the Independent Auditors' Report

[Referred to in paragraph 1 under the heading "Report on Other Legal &Regulatory Requirement" of our report of even date to the members of Udaipur CementWorks Limited on the accounts of the Company for the year ended 31st March 2016]

1) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The fixed assets have been physically verified by the management at the end of theyear no material discrepancies between book records and physical fixed assets werenoticed on such verification.

(c) The title deeds of immovable properties are held in the name of the Company.

2) (a) The management has conducted the physical verification of inventory atreasonable intervals.

(b) The discrepancies noticed on such physical verification of the inventory ascompared to books records which has been properly dealt with in the books of account werenot material.

3) The Company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the Register maintained undersection 189 of the Companies Act 2013. Accordingly the provisions of clause 3 (iii) (a)to (c) of the Order are not applicable to the Company and hence not commented upon.

4) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Companies Act 2013in respect of loans investments guarantees and security.

5) The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable. As informed to us noorder has been passed by the Company Law Board or National Law Tribunal or Reserve Bank ofIndia or any court or any other tribunal in this regard.

6) We have broadly reviewed the books of account maintained by the Company pursuant tothe order made by the central government for maintenance of cost records under section148(1) of the Companies Act 2013 in respect of the Company's products to which the saidrules are made applicable and are of the opinion that prima facie the prescribed recordshave been made and maintained. We have not however made a detailed examination of thesaid records with a view to determine whether they are accurate.

7) (a) According to information and explanations given to us and on the basis of ourexamination of the books of accounts and records the Company has been regular indepositing undisputed statutory dues including Provident Fund Employees State InsuranceIncome Tax Entry Tax Sales tax Service Tax Custom Duty Excise Duty Value added TaxCess and any other statutory dues with the appropriate authorities. According to theinformation and explanations given to us no undisputed amounts payable in respect of theabove were in arrears as at 31st March 2016 for a period of more than six months from thedate they became payable.

(b) According to the records and information and explanations given to us there arefollowing dues under various taxes which has not been deposited on account of any disputeand the amounts involved and the forum where dispute is pending are given below:

Name of the Statute Nature of The Dues Period Forum where dispute is pending Amount (In Rs.)
Central Excise Act Excise Duty 1995-96 High Court 440017
Excise Duty (Interest) 2000-01 Assistant Commissioner Central Excise Udaipur 281325
Service Tax Act Service Tax 1997-98 Assistant Commissioner of Excise (S.T.) 6605892
Sales Tax Act Sales Tax 1999-2000 Assistant Commissioner (Comm. Tax) 814000
Sales Tax (Interest) 1996-97 1997-98 & 1998-99 Assistant Commissioner (Comm. Tax) 911000
Sales Tax 1996-97 Assistant Commissioner (Comm. Tax) Circle ‘B’ Jammu 2504900

8) On the basis of records made available and information and explanations given to usthe Company has not defaulted in repayment of dues to financial institutions banks anddebenture holders.

9) Based upon the audit procedures performed and the information and explanations givenby the management the Company has not raised moneys by way of initial public offer orfurther public offer including debt instruments and term Loans except for Inter CorporateLoan taken from a fellow subsidiary and the same was utilized for the purpose for which itwas raised.

10) Based upon the audit procedures performed and the information and explanationsgiven by the management we report that no fraud by the Company or on the Company by itsofficers or employees has been noticed or reported during the year.

11) Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act.

12) In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 3 (xii) of the Order are not applicable to the Company.

13) In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards.

14) Based upon the audit procedures performed and the information and explanationsgiven by the management the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of clause 3 (xiv) of the Order are not applicable tothe Company and hence not commented upon.

15) Based upon the audit procedures performed and the information and explanationsgiven by the management the Company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of clause 3 (xv) ofthe Order are not applicable to the Company and hence not commented upon.

16) In our opinion the Company is not required to be registered under section 45 IA ofthe Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi) ofthe Order are not applicable to the Company and hence not commented upon.

For OM PRAKASH S. CHAPLOT & CO.
Chartered Accountants
FRN: 000127C
O.P. CHAPLOT
Place: Udaipur Partner
Date : 13th May 2016 M. NO. 010184

"Annexure - B" to the Independent Auditor's Report of even date on the(Standalone) Financial Statements of Udaipur Cement Works Limited

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 UdaipurCement Works Limited ("the Company") as on 31st March 2016 in conjunction withour 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to Company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' Responsibility

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 audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For OM PRAKASH S. CHAPLOT & CO.
Chartered Accountants
FRN: 000127C
O.P. CHAPLOT
Place: Udaipur Partner
Date : 13th May 2016 M. NO. 010184