To the Members of UNITECH INTERNATIONAL LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of Unitech International Limited("the Company") which comprise the Balance Sheet as at 31st March 2017 theStatement 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 Act 2013 ("the Act") with respect to the preparation ofthese financial statements to 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 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 misstatement whether due to fraud orerror.
1. Our responsibility is to express an opinion on these financial statements based onour audit.
2. We have taken into account the provisions of the Act and the Rules made there underincluding the accounting standards and matters which are required to be included in theaudit report.
3. We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India. Those Standards and pronouncements requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.
4. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditors' judgment including the assessment 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 but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
6. 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 its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditor's Report) Order 2015' issued by theCentral Government of India in terms of sub-section (11) of section 143 of the Act(hereinafter referred to as the "Order") and on the basis of such checks of thebooks and records of the Company as we considered appropriate and according to theinformation and explanations given to us we give in the Annexure a statement on thematters specified in paragraphs 3 and 4 of the Order. 10. 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 the
Company 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 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 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of Section164 (2) of the Act.
(f)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 knowledge and belief and according to the information andexplanations given to us:
i)The Company has disclosed the impact if any of pending litigations as at 31st March2017 on its financial position in its financial statements.
ii) The Company has no long-term contracts as at 31st March 2017 for which there wereno material foreseeable losses. The Company did not have any derivative contracts as at 31stMarch 2017;
iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the year ended 31stMarch 2017.
| ||For S. S. Agarwal & Co. |
| ||Chartered Accountants |
| ||F. R. N0.312054E |
|Place : Mumbai ||(S. S. Agarwal) |
|Date : 30th May 2017 ||Proprietor |
| ||M. No. 050521 |
Annexure to Independent Auditors' Report
Referred to in paragraph 9 of the Independent Auditors' Report of even date to themembers of Unitech International Limited on the financial statements as of and for theyear ended 31st March 2017.
i. (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The fixed assets are physically verified by the Management according to a phasedprogramme designed to cover all the items over a period of three years which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. Pursuant to the programme a portion of the fixed assets has been physicallyverified by the Management during the year and no material discrepancies have been noticedon such verification except the assets which were under the control of the previousbankers of the company and are under pending litigation.
ii. (a) The inventory excluding stocks with third parties has been physically verifiedby the Management during the year. In respect of inventory lying with third parties thesehave substantially been confirmed by them. In our opinion the frequency of verificationis reasonable.
(b) In our opinion the procedures of physical verification of inventory followed bythe Management are reasonable and adequate in relation to the size of the Company and thenature of its business.
(c) On the basis of our examination of the inventory records in our opinion theCompany is maintaining proper records of inventory. The discrepancies noticed on physicalverification of inventory as compared to book records were not material.
iii. The Company has not granted any loans secured or unsecured to companies firmsor other parties covered in the register maintained under Section 189 of the Act.Therefore the provisions of Clause 3(iii)(a) and (iii)(b) of the said Order are notapplicable to the Company. iv. In our opinion and according to the information andexplanations given to us there is an adequate internal control system commensurate withthe size of the Company and the nature of its business for the purchase of inventory andfixed assets and for the sale of goods and services. Further on the basis of ourexamination of the books and records of the Company and according to the information andexplanations given to us we have neither come across nor have been informed of anycontinuing failure to correct major weaknesses in the aforesaid internal control system.
v. The Company has not accepted any deposits from the public within the meaning ofSections 73 74 75 and 76 of the Act and the rules framed there under to the extentnotified.
vi. The Central Government of India has not specified the maintenance of cost recordsunder subsection (1) of Section 148 of the Act for any of the products of the Company.
vii. (a) According to the information and explanations given to us and the records ofthe
Company examined by us in our opinion the Company is regular in depositing undisputedstatutory dues including provident fund employees' state insurance income tax salestax wealth tax service tax duty of customs duty of excise value added tax and othermaterial statutory dues as applicable with the appropriate authorities. (b) According tothe information and explanations given to us and the records of the Company examined byus there are no dues of wealth tax and duty of custom which have not been deposited onaccount of any dispute.
(c) According to the information and explanations given to us no amount is required tobe transferred to Investor Education and Protection Fund within the stipulated time inaccordance with the provisions of the Companies Act 1956 and the rules made there under.
viii. There are no accumulated losses as at the end of the financial year and thecompany has not incurred any cash losses during the financial year and in the immediatelypreceding financial year. ix. According to the information and explanation given to us asalso on the basis of books and records examined by us the company has not defaulted inthe repayment of dues to bank during the year. Since there is no borrowing from theFinancial Institution nor any debentures have been issued by the company the question ofcommenting on whether the company has defaulted in repayment of dues of financial s theCompany does not have any borrowings from any financial institution or debenture holdersdoes not arise as at the balance sheet date the provisions of Clause 3(ix) of the Orderare not applicable to the Company. x. In our opinion and according to the information andexplanations given to us the
Company has not given any guarantee for loans taken by others from banks or financialinstitutions during the year. Accordingly the provisions of Clause 3(x) of the Order arenot applicable to the Company.
xi. The Company has raised term loans from Bank of Maharashtra which is within thelimit the provisions of Clause 3(xi) of the Order are also applicable to the Company.
xii. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud on or by the Company noticed or reported during the year norhave we been informed of any such case by the Management.
| ||For S. S. Agarwal & Co. |
| ||Chartered Accountants |
| ||F. R. N0. 312054E |
|Place: Mumbai ||(S. S. Agarwal) |
|Date: 30th May 2017 ||Proprietor |
| ||M. No. 050521 |