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Universal Starch Chem Allied Ltd.

BSE: 524408 Sector: Others
NSE: N.A. ISIN Code: INE113E01015
BSE LIVE 14:53 | 17 Nov 26.40 1.05
(4.14%)
OPEN

26.45

HIGH

26.45

LOW

26.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 26.45
PREVIOUS CLOSE 25.35
VOLUME 1027
52-Week high 33.00
52-Week low 17.00
P/E
Mkt Cap.(Rs cr) 11
Buy Price 26.00
Buy Qty 50.00
Sell Price 26.60
Sell Qty 76.00
OPEN 26.45
CLOSE 25.35
VOLUME 1027
52-Week high 33.00
52-Week low 17.00
P/E
Mkt Cap.(Rs cr) 11
Buy Price 26.00
Buy Qty 50.00
Sell Price 26.60
Sell Qty 76.00

Universal Starch Chem Allied Ltd. (UNIVERSALSTARCH) - Auditors Report

Company auditors report

INDEPENDENT AUDITOR'S REPORT

To

The Members of

Universal Starch Chem Allied Limited

Report on the Standalone Financial Statements

We have audited the accompanying financial statements of M/s. Universal Starch ChemAllied Limited ("the Company") which comprise the Balance Sheet as at March31st 2016 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

Management’s Responsibility for the Standalone 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 standalone financial statements to 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 maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial 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 and the rulesmade there under.

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 require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the 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 statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the

Company's preparation of the financial statements that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances. 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.

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

Opinion

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 March 31st 2016

the Loss stated in the Statement of Profit and Loss and

the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

As required by 'the Companies (Auditor’s Report) Order 2016' issued by theCentral Government of India in terms of sub section (11) of section 143 of the Act(hereinafter referred to as "Order") and on the basis of such checks of thebooks and records of the Company as we considered appropriate and according to theinformation and explanation given to us we give in the Annexure A statement of thematters specified in paragraphs 3 and 4 of the Order.

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

We have sought and obtained all the information and explanations which to the best ofour knowledge and belief were necessary for the purposes of our audit.

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.

The Balance Sheet Statement of Profit and Loss and the Cash Flow Statement dealt withby this Report are in agreement with the books of account.

In our opinion the aforesaid financial statements comply with the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014.

On the basis of the written representations received from the directors as on March31st 2016 taken on record by the Board of Directors none of the directors isdisqualified as on March 31st 2016 from being appointed as a director in terms ofSection 164 (2) of the Act.

With respect to the adequacy of the financial controls over financial reporting of theCompany and the operating effectiveness of such controls refer to our separate report inAnnexure B; and with respect to the other matters to be included in the Auditor’sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our knowledge and belief and according to the informationand explanations given to us:

The Company does not have any pending litigations which would impact its financialposition.

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

There were no amounts which were required to be transferred to the Investor Educationand Protection Fund by the Company during the year ended March 31st 2016.

For M B Agrawal & Co.
Chartered Accountants
FRN No: 100137W
Place: Mumbai Harshal Agrawal
Date:28th May 2016 Partner
Membership No: 109438

Annexure-A to the Independent Auditors' Report

Referred to in Paragraph 9 of the Independent Auditors' Report of even date on thefinancial statement as of and for the year ended March 31st 2016.

In respect of Fixed Assets:

The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets;

As explained to us the Management of the Company has physically verified these fixedassets at reasonable intervals and no material discrepancies were noticed on suchverification.

The value of Land in the books of the company on the basis of historical cost amountsto Rs. 4684785/- of the same title deeds of 3228.11 sq.mtr. amounting toRs.260375/- are not in the name of the Company.

In respect of Inventories:

The stock of Inventories of the Company has been physically verified the Management atreasonable intervals. The discrepancies noticed on such verification of the inventories ascompared to the book records were not material.

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 sub-points of paragraph 3 (iii)of the Order are not applicable.

According to information and explanations provided to us the Company has the companyhas complied with the provisions of Section 185 and 186 of the Companies Act 2013 inrespect of loans investments guarantees and security.

According to information and explanations provided to us the company has not obtaineddeposit from public as defined according to the provisions of Section 73 to 76 of theCompanies Act 2013 and the Rules framed there under.

According to information and explanations provided to us the Company has maintainedaccounts and cost records pursuant to the Companies (Cost Accounting Records) Rules 2011and as specified by the Central Government of India under Section 148(1) of the CompaniesAct 2013. We have however not carried out a detailed examination of the same.

In respect of Statutory Dues:

According to information and explanations given to us and the records of the Companyexamined by us in our opinion the Company is generally regular in depositing theundisputed 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 as applicable with appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable on account of provident fund employees’ state insurance income tax salestax service tax duty of customs duty of excise value added tax cess and otherstatutory dues were in arrears as at March 31st. 2016 for a period of more than sixmonths from the date they became payable.

According to the information and explanations given to us and based on the records ofthe company examined by us the particulars of dues not deposited on account of anydisputes with respective authorities are as follows:

Name of Statute Nature of Dues Amount ( Rs. ) Period to which it relates Forum of Dispute
Central Excise Act Excise Duty 4283966/- 2006-2007 CESTAT Mumbai
Income Tax Act Income Tax 3465000/- Asst. Year 2004-2005 CIT (Appeals) 13 Mumbai
Income Tax Act Income Tax 3408000/- Asst. Year 2004-2005 CIT (Appeals) 13 Mumbai

In our opinion and according to the information and explanations given to us thecompany has not defaulted in repayment of loans or borrowings to financial institutionsbanks Government or dues to debenture holders.

The company has not raised any money via initial public offer or by way of furtherpublic offer and by way of term loans during the current financial year. The term loansoutstanding at the beginning of the year were applied for the purposes for which they wereraised.

According to the information and explanations given to us fraud on the company wasnoticed. Immovable Property of the Company measuring 82588.11 sq.mtrs. valuing at Rs.1586725/- (at historical cost) was fraudulently transferred in the personal name of someof the directors. Out of the above property measuring 79300 sq.mtrs. was restored in thename of the Company. Apart from the above we have neither come across any instance ofmaterial fraud on or by the Company by its officers or employees noticed or reportedduring the year nor have we been informed of any such case by the Management.

The Company has paid and provided the Managerial Remuneration in accordance with theprovisions of Section 197 read with Schedule V of the Companies Act 2013.

In our opinion the company is not a Nidhi Company. Accordingly paragraph 3(xii) ofthe Order is not applicable.

According to the information and explanations provided to us and based on ourexamination of the records of the Company all transactions with the related parties arein compliance with Section 177 and 188 of Companies Act 2013 where applicable and thedetails have been disclosed in the Financial Statements as required by the applicableaccounting standards.

According to the information and explanations provided to us the company has not madeany preferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review.

According to the information and explanations provided to us and based on ourexamination of the records of the Company the company has not entered into any non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

The Company is not required to be registered under Section 45- IA of the Reserve Bankof India Act 1934.

For M BAgrawal& Co.
Chartered Accountants
FRN No: 100137W
Place: Mumbai Harshal Agrawal
Date: 28th May 2016 Partner
Membership No: 109438

Annexure - B to the Independent Auditors' Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act") referred to in Paragraph 10(f) inthe Independent Auditors' Report

We have audited the internal financial controls over financial reporting of UniversalStarch Chem Allied Limited ("the Company") as of March 31st 2016 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat 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 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.

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 ICAI.

Because of the matter described in Disclaimer of Opinion paragraph below we were notable to obtain sufficient appropriate audit evidence to provide a basis for an auditopinion on internal financial controls system over financial reporting of the Company.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that

pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company;

provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

provide reasonable assurance regarding prevention or timely detection of unauthorizedacquisition use or disposition of the company's assets that could have a material effecton the financial statements.

Disclaimer of Opinion

According to the information and explanations provided to us the Company does not havein place a system of Internal Financial Controls over Financial Reporting(‘System’). Based on the above information we are unable to obtain sufficientand appropriate Audit Evidence on the basis of which we could have been able to comment onthe System’s adequacy and its operating effectiveness as on the Balance Sheet date.

We have considered the disclaimer reported above in determining the nature timing andextent of audit tests applied in our audit of the financial statements of the Company andthe disclaimer does not affect our opinion on the financial statements of the Company.

For M B Agrawal & Co.
Chartered Accountants
FRN No: 100137W
Place: Mumbai Harshal Agrawal
Date: 28th May 2016 Partner
Membership No: 109438