The Members of
M/S Uniply Industries Limited
Report on the Financial Statements
We have audited the accompanying financial statements of M/s. Uniply Industries Limited("the company") which comprise the Balance Sheet as at 31st March2016theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary 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 Section134(5) of the Companies Act2013("the Act") with respect to the preparation andof these financial statement that give a true and fair view of the financial positionfinancial performance and cash flows of the company in accordance with the accountingprinciple 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 the assets of the company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatements whether due to fraudor error.
Our responsibility is to express an opinion on this financial statement 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 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 financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statement whether due to fraud or error. In making those risk assessment theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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 financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the 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 31stMarch 2016;
(b) In the case of the Statement of Profit and Loss of the profit of the Company forthe year ended on that date and
(c) In the case of cash flow statement of the cash flows for the year ended on thatdate
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 ("the Order) issuedby the Central Government of India in terms of sub-section(ll) of section 143 of the Actwe give in the Annexure B a statement on the matters specified in the paragraph 3 and 4 ofthe Order to the extent applicable.
2. As required by Section 143 (3) of the Act we report that:
a. We have sought and obtained all the information and explanation which to the best ofour knowledge and belief were necessary for the purposes of our audit.
b. In our opinion proper books of accounts 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 books of account.
d. In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
e. On the basis of the 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 A; and
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) Rules2014 in our opinionand to the best of our information and according to the explanation given to us:
i. The company does not have any pending litigation which would impact its financialposition.
ii. The company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.
For C.Ramasamy & B.Srinivasan
M No: 023714
Annexure A to the Independent Auditors' Report
(Referred to in paragraph 1(f) under "Report on other legal and regulatoryrequirements" section of our report of even date)
Report on the Internal Financial Controls under clause (i) of subsection 3of Section143 of the Companies Act 2013 ('the Act')
We have audited the internal financial controls over financial reporting M/s. UniplyIndustries Limited ('the Company') as of 31 March 2016 in conjunction with our audit ofthe financial statements of the company for the year ended as 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 the Company's policies the safeguarding of its assetsthe prevention 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 deemed to beprescribed under Section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting were established and maintained and if suchcontrols 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 depends on the auditors' 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 authorizations of theManagement 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.
In our opinion to the best of our information and explanation given to us the companyhas in all material respects an adequate internal financial controls system overfinancial reporting and such internal financial controls over financial reporting wereoperating effectively as at 31 March 2016 based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India.
For C.Ramasamy & B.Srinivasan
M No: 023714
Annexure B to the Independent Auditor's Report referred to in paragraph 1 under theheading "report on other legal and regulatory requirements" of our report ofeven date
The Annexure referred to in our Independent Auditor's Report to the members of M/s.UnipLy Industries Limited for the year ended on 31.03.2016. We report that:
i. (a) The company has maintained proper records showing fuLL particuLars incLudingquantitative detaiLs and situation of fixed assets.
(b) These fixed assets have been physically verified by the management at reasonableintervals and no material discrepancies were noticed on such verification and the samehave been properLy deaLt with in the books of account.
(c) The titLe deeds of immovabLe properties are heLd in the name of the company.
ii. The Management has conducted physicaL verification of inventory at reasonabLeintervaLs and no materiaL discrepancies were noticed.
iii. As informed to us the company has not granted any Loans secured or unsecured tocompanies firms Limited LiabiLity Partnership or other parties covered in the registermaintained under section 189 of the Companies Act. Hence clause (a) (b)& (c) are notappLicabLe.
iv. In respect of Loan Investments Guarantees & Security the provision of Section185 & 186 of the Companies Act 2013 have been compiLed with.
v. The company has not accepted any deposits.
vi. Maintenance of cost records has not been specified by the Central Government undersub - section (1) of section 148 of the Companies Act. for the company.
vii. (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company there is some deLay by company indepositing undisputed statutory dues incLuding provident fund employees' state insuranceincome-tax saLes-tax service tax duty of customs duty of excise vaLue added tax Cessand any other statutory dues with the appropriate authorities.
According to the information and explanations given to us no undisputed amountspayabLe in respect of the above were in arrears as at 31st March 2016 for a period of morethan six months from the date they became payable except the Input Tax Reversal on StockTransfer amounting to Rs.1173263/-.
(b) According to the information and expLanations given to us there are no dues ofincome tax or saLes tax or service tax or duty of customs or duty of excise or vaLue addedtax or cesswhich had not been deposited on account of any dispute except the foLLowing
|Name of Statute ||Nature of Dues ||Amount ||Period to which the amount relates ||Forum Where dispute is pending |
|TamiLnadu Value Added Tax2006 ||VAT on SEZ Sales ||Rs.5421138/- ||2007-2008 ||Appellate Commissioner CTD |
|TamiLnadu Value Added Tax2006 ||VAT Penalty on ITC ||Rs.70233/- ||2007-2008 ||Appellate Commissioner CTD |
viii. The company has not defaulted in repayment of dues to financial institutions orbanks and Government during the year. There have been no outstanding dues to debentureholders.
ix. During the year company has not raised any money through Initial Public Offer orfurther Public Offer. The term Loans availed by the company during the year have beenapplied for the purpose for which it has been availed.
x. Based upon the audit procedures performed for the purpose of reporting true and fairview of the financial statements and as per the information and explanations given by themanagement we report that no fraud on the Company by its officers or employees has beennoticed or reported during the year.
xi. Managerial Remuneration has been paid/provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with schedule V to the CompaniesAct.
xii. Company is not a Nidhi Company.
xiii. ALL transactions with the related parties are in compliance with Section 177 and188 of Companies Act 2013 where applicable and the detaiLs have been discLosed in theFinanciaL Statements etc. as required by the appLicabLe accounting standards.
xiv. The company has not made any preferentiaL aLLotment of shares or fuLLy or partLyconvertibLe debentures during the year under review. The company has made privatepLacement of Equity shares under review and it has compLied with provision of Section 42of Companies Act2013and the amount raised have been used for the purposes for which thefunds were raised.
xv. The company has not entered into any non-cash transactions with directors orpersons connected with him.
xvi. The company is not required to be registered under section 45-I of the ReserveBank of India Act 1934.
For C.Ramasamy & B.Srinivasan
M No: 023714