Unison Metals Ltd.
|BSE: 538610||Sector: Metals & Mining|
|NSE: N.A.||ISIN Code: INE099D01018|
|BSE 15:28 | 20 Feb||Unison Metals Ltd|
|NSE 05:30 | 01 Jan||Unison Metals Ltd|
|BSE: 538610||Sector: Metals & Mining|
|NSE: N.A.||ISIN Code: INE099D01018|
|BSE 15:28 | 20 Feb||Unison Metals Ltd|
|NSE 05:30 | 01 Jan||Unison Metals Ltd|
To the Members of UNISON METALS LTD
Report on the Financial Statements
We have audited the accompanying financial statements of UNISON METALS LTD.("the Company") which com- prise the Balance Sheet as at March 31 2017 andthe Statement of Profit and Loss and Cash Flow Statement for the year then ended and asummary of 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 Act 2013 ('the act') with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flow of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with rule 7 of Companies (Accounts) Rules 2014. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent and designimplementation 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 misstatement whether due to fraud orerror
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 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 anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assess- ment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers 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 accounting policies used and the reasonableness of the accountingestimates made by company's Direc- tors as well as evaluating the overall presentation ofthe 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 of the state of affairs of the company as at 31stMarch 2017 and 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")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure 'A' a statement on the matters specified in paragraphs 3and 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 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 the Statement of Profit and Loss and cash flow statement dealtwith by this Report are in agreement with the books of account.
d) in our opinion the aforesaid financial statements comply with the applicableAccount- ing Standards referred to 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 March 312017 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of section 164(2) of theAct.
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"; and
g) In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014::
(i) The Company has disclosed the impact if any of pending litigations in its finan-cial statements- Refer Note No.26 to the financial statements.
(ii) The Company did not have any long-term contracts including derivative contracts;
(iii) There has been delay of three days in transferring amount required to be trans-ferred to the Investor Education and Protection Fund by the Company.
(iv) The Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8 November2016 to 30 December 2016 and these are in accordance with the books of accountsmaintained by the Company. Refer Note 34 to the financial statements.
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in paragraph 1 of our Report of even date.)
(i) a) The company has maintained proper records showing full particulars includingquanti-tative details and situation of fixed assets;
b) As explained to us the fixed assets have been physically verified by the managementin reasonable interval and no material discrepancies have been noticed on such verifica-tion.
(c) the title deeds of immovable properties are held in the name of the company.
(ii) a) The inventory has been physically verified by the management during the year atreason-
able intervals and in our opinion and according to information and explanations givento us discrepancies noticed on physical verification of stocks were not material.
(iii) The Company has granted loan to body corporate covered in the register maintainedunder section 189 of the Companies Act 2013 ('the Act').
a) In our opinion the terms and conditions on which the loans had been granted to thebody corporate listed in the register maintained under Section 189 of the Act were notprima facie prejudicial to the interest of the Company.
b) In the case of the loans granted to the body corporate listed in the registermaintained under section 189 of the Act the borrower has been regular in the repayment ofthe principal and payment of interest where ever stipulated.
c) There are no overdue amounts in respect of the loan granted to a body corporatelisted in the register maintained under section 189 of the Act.
(iv) According to information and explanations given to us in respect of investmentmade the com- pany has complied with the provisions of section 186 of the Act. The companyhas not given loans or guarantees or provided any security pursuant to section 185 and 186of the Act.
(v) The company has not accepted any deposits during the year from public within themeaning of the provisions of Section 73 to 76 of the Act and rules made thereunder.
(vi) We have broadly reviewed the books of account maintained by the company pursuantto the rules made by the Central Government of India regarding the maintenance of costrecords under sub section(1)of section 148 of the companies Act 2013 and are of theopinion that prima facie the prescribed accounts and records have been maintained. Wehave however not made a detailed examination of the records with a view to determinewhether they are accurate or complete
(vii) a) According to the information and explanations given to us and the recordsexamined by us the company is regular in depositing with appropriate authorities theundisputed statutory dues including Provident Fund Employees' State InsuranceIncome-tax Sales- tax Service Tax Duty of Customs Duty of Excise Value Added TaxCess and any other statutory dues applicable to it
b) According to the information and explanations given to us and board on the recordof the company examined by us there are no dues of Income Tax Sales Tax Service TaxDuty of Customs Duty of Excise Value Added Tax which have not been deposited on accountof k dispute except as follows
(viii) In our opinion and according to the information and explanations given to usthe company has not defaulted in repayment of loans or borrowings to Financial Institutionand Bank. The company has not taken any loan from Government and has not issueddebentures.
(ix) The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments). According to the information and explanations given tous and in our opinion the term loan raised have been applied for the purpose for whichthey were obtained.
(x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statement and as per the information and explanations given bythe management we report that no fraud on or by the Company by its officers or employeeshas been noticed or reported during the course of our audit.
(xi) In our opinion and according to the information and explanations given to us themanagerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provision of section 197 read with schedule V to the companiesact.
(xii) Clause (xii) of paragraph 3 of the Company's (Auditor's Report) order 2016 isnot applicable to the Company as the company is not a Nidhi Company.
(xiii) According to the information and explanations given to us and based on ourexamination of the records of the company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccount ting standards.
(xiv) The company has not made any preferential allotment or private 'placement ofshares or fully or partly convertible debentures during the year under review.
(xv) Clause (xv) of paragraph 3 of the Company's (Auditor's Report) order 2016 is notapplicable to the Company as the Company has not entered into any non-cash transactionswith directors or per- sons connected with him.
(xvi) According to information and explanation to us the company is not required to beregistered under section 45-IA of the Reserve Bank of India Act 1934
Annexure - B to the Auditors' Report
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 UNISONMETAL LTD. ("the Com- pany") as of 31 March 2017 in conjunction with our auditof 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 Con- trols over Financial Reportingissued by the Institute of Chartered Accountants of India ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial con-trols that were operating effectively for ensuring the orderly and efficient conduct ofits business including adherence to 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 deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls.Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively 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 judgment 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 anddispo- sitions 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 re- gardingprevention 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 the Company has in material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31 March 2017 based on the internalcontrol over financial reporting criteria established by the company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.