UNIQUE AGRO PROCESSORS (INDIA) LIMITED
ANNUAL REPORT 2007-2008
The Members of
Unique Agro Processors (India) Limited
1. We have audited the attached Balance Sheet of M/s. Unique Agro
Processors (India) Limited as at 31st March, 2008 and the profit and Loss
Account and also the cash flow statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with auditing Standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements
are free of material misstatements. An audit includes examining, on a test
basis,, evidence supporting the amounts and disclosures in financial
statements. An audit also includes assessing the accounting principles used
and significant estimates made by the management, as well as evaluating the
overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
3. As required by the Companies (Auditor's Report) Order 2003 issued by the
Central Government of India in terms of sub-section (4A) of section 227 of
the Companies Act, 1956, we enclose in the Annexure hereto a statement on
the matters specified in paragraphs 4 and 5 of the said order.
Further to our comments in the Annexure referred to in paragraph 3 above,
we report that:
(i) We have obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purposes of our audit;
(ii) 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;
(iii) The Balance Sheet, Profit Loss Account and cash flow statement dealt
with by this report are in agreement with the books of account;
(iv) In our opinion the Balance Sheet, Profit and Loss Account and cash
flow statement dealt with by this report comply with the Accounting
Standards referred in sub-section (3C) of section 211 of the Companies Act,
v) In our opinion, and based on information and explanations given to us,
none of the Directors is disqualified as on 31st March, 2008 from being
appointed as a Directors in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956;
vi) In our opinion and to the best of our information and according to the
explanation given to us, the said accounts read together with the
schedules, notes thereon and accounting policies attached thereto give the
information required by the Companies Act, 1956, 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 31st March, 2008;
b) in the case. of the profit and loss account of the loss for the year
ended on that date; and
c) in the case of the cash flow statement of the cash flow for the year
ended on that date.
FOR, P.S. THAKARE & CO.
DATED: 28-8-2008 M.NO. 34051
ANNEXURE TO THE AUDITOR'S REPORT
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, the fixed assets have been physically verified by
the management during the year in a phased periodical manner, which in our
opinion is reasonable, having regard to the size of the Company and nature
of its assets. No material discrepancies were noticed on such physical
c) The Company has not disposed off any part of its fixed assets during the
year and therefore going concern status of the Company is not affected.
2. In respect of its inventories
a. As explained to us, inventories have been physically verified by the
management at regular intervals during the year.
b. In our opinion and according the information and explanations given to
us, the procedures of physical verification of inventories followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
c. The Company has maintained proper records of inventories. As explained
to us, there were no material discrepancies noticed on physical
verification of inventory as compared to the book records.
3. In respect of loans, secured or unsecured, granted or taken by the
Company to / from companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956
a) The Company had taken loan from six such companies / firms or other
parties. The maximum amount involved during the year was Rs.32.85 Lacs and
the year end balance of loan taken from such parties was Rs.707.66 Lacs.
The company has granted loans to one such party. The maximum amount
involved during the year was Rs.Nil and the year end balance of loan
granted to such party was Rs.10,00 lacs.
b) In our opinion and according to the information and explanations given
to us, the rate of interest and other terms and conditions on which loans
have been taken from / granted are not prima facie prejudicial to the
interest of the Company.
c) We are unable to comment on the repayment of principal amount and the
payment of interest in respect of loans taken / granted by the company
because no stipulation has been made for repayment of the loans and payment
d) We are unable to comment an overdue amount for reasons stated in para
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 for the purchase of
inventory, fixed assets and with regard to the sale of goods. During the
course of our audit, we have not observed any major weaknesses in internal
5. In respect of transactions covered under Section 301 of the Companies
a) In our opinion and according to the information and explanations given
to us, the transactions made in pursuance of contracts or arrangements,
that needed to be entered in the register maintained under Section 301
of the Companies Act, 1956 have been so entered.
b) In our opinion and according to the information and explanations given
to us, the transactions made in pursuance of contracts or arrangements
entered in the register maintained under Section 301 of the Companies Act,
1956 and exceeding the value of Rupees Five Lacs during the year have been
made at prices which are reasonable having regard to prevailing market
prices at the relevant time.
6. In our opinion and according to the information and explanations given
to us, the company has not accepted any deposits from the public to which
the provisions of Sec 58A and Sec.58AA of the Companies Act, 1956 are
7. In our opinion, through the Company do not have internal audit system
but have reasonable controls and internal checks within the organization
commensurate with its size and nature of business.
8. Maintenance of cost records has not been prescribed by the Central
Government under Clause (d) of Sub-Section (1) of Section 209(1)(d) of the
Companies Act, 1956 to the Company.
9. In respect of statutory dues.
a) According to the records of the Company, undisputed statutory dues have
been generally regularly deposited with the appropriate authorities.
According to the information and explanations given to us, undisputed
amounts remaining payable in respect of tax deducted at source amounting to
Rs.12,554/- which were outstanding as at 31st March, 2008 for a period of
more than six months from the date of becoming payable.
b) The dues of disputes sales tax liability of Rs.8,98,340/- pertaining to
the year 1995-96 have not been deposited. The matter is in appeal before
the Maharashtra Sales Tax Tribunal.
10. The company has accumulated losses to the tune of Rs.765.95 Lacs as on
31st March 2008 which exceeds fifty percent its networth. The Company has
incurred cash losses during the financial year covered by our audit and
during the immediately preceding financial year.
11. In our opinion and according the information and explanation given to
us, company has not defaulted in repayment of dues to Financial
Institutions, Banks or debenture holders.
12. In our opinion and according the information and explanation given to
us, no loans and advances have been granted by the Company on the basis of
security by way of pledge of shares, debentures and other securities and
therefore, provisions of Clause 4(xii) of the Companies (Auditor's Report)
Order 2003 are riot applicable.
13. In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, clause 4(xiii) of the Companies (Auditor's
Report) order 2003 is not applicable to the Company.
14. The Company has not dealt in trading in shares, securities, debentures
and other investments during the financial year concerned and hence clause
4(xiv) of the Companies (Auditors Report) Cedar 2003 is not applicable to
15. The Company has not given any guarantee for loans taken by others from
Bank or Financial Institutions.
16. The Company has not taken any term loan during the financial year.
17. According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we are of the
opinion that the Company has not utilised and short term funds for long
term investment and vice versa.
18. During the year, the company has not made any preferential allotment of
shares to parties and companies covered in the Register maintained under
Section 301 of the Companies Act, 1956.
19. The company has not issued any debentures during the financial year
concerned and hence question of creating securities in respect of the same
does not arise.
20. The Company has not raised any money by way of public issue during the
21. In our opinion and according to the information and explanations given
to us, no fraud on or by the company has been noticed or reported during
the year, that causes the financial statement to be materially misstaked.
For, P.S. Thakare & Co.
NAGPUR (P.S. THAKARE)
DATED: 28-8-2008 PARTNER