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Uniworth International Ltd.

BSE: 514282 Sector: Others
NSE: UNIWORTINT ISIN Code: INE760D01015
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Uniworth International Ltd. (UNIWORTINT) - Auditors Report

Company auditors report

TO THE MEMBERS OF

UNIWORTH INTERNATIONAL LIMITED Report on the Financial Statements

We have audited the accompanying Standalone Financial Statements of UNIWORTHINTERNATIONAL LIMITED ("the Company") which comprise the Balance Sheet asat 31st March 2015 the Statement of Profit and Loss the Cash Flow Statement and asummary of the Significant Accounting Policies and other explanatory information for theyear then ended.

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 Standalone Financial Statements that 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 the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgements 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 under theprovisions of the Act and the Rules made there under.

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 Standalone financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Standalone financial statements. The procedures selected depend onthe auditor’s judgement including assessment of the risks of material misstatementof the financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to theCompany’s preparation of the Standalone financial statements that give a true andfair view in order to design audit procedures that are appropriate in the circumstancesbut not for the purpose of expressing an opinion on whether the Company has in place anadequate internal financial control system over financial reporting and the operatingeffectiveness of such controls. An audit also includes evaluating the appropriateness ofthe accounting policies used and the reasonableness of the accounting estimates made bythe Company’s Directors as well as evaluating the overall presentation of thefinancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our qualified audit opinion on the Standalone Financial Statements.

Basis for Qualified Opinion

a) Footnote to Note No.13 regarding interest provision on borrowing from some of theinstitutions and banks made in the accounts under simple interest method at theprevailing/estimated rates applicable on such loans in absence of relevantdocuments/confirmations the impact of which cannot be ascertained as well as the notetherein regarding the matter of dispute between the Company and the Bankers/Creditors inconnection with charging of interest payment and payment of principal.

b) Note No. 9(iv) regarding foreign exchange gain amounting Rs.1677.99 Lacs arising outof export bills have not been considered in accounts due to uncertainty in realization.

c) Note No. 9(iii) regarding Overdue Export Bills amounting to Rs. 123.41 lacsoutstanding for long which in our opinion are Doubtful of recovery against which noprovision has been made in the Books of Accounts.

d) Note No. 11(i) regarding Claim receivable amounting to Rs. 57.21 lacs due fromvarious banks outstanding for long which in our opinion are Doubtful of recovery againstwhich no provision has been made in the Books of Accounts.

e) However had our observation made in Para no (a)(b) (c) & (d) above beingconsidered the Profit after tax for the year would have been Rs.899.50 lacs (as againstthe reported Loss figure of Rs.597.87 lacs) and Loans Advances and Deposits would havebeen Rs.231.48 lacs (as against reported figure of Rs.288.69 lacs) Sundry Debtors wouldhave been Rs. 4565.15 Lacs (as against reported figure of Rs 3010.57 lacs) accumulatedlosses would have been Rs.8847.86 lacs (as against reported figure of Rs 10345.23 lacs).

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the like effects of the matters described in the Basis forQualified Opinion paragraph above the aforesaid Standalone Financial Statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2015 and its loss and its cash flows for the yearended on that date.

Emphasis of Matters

We draw your attention to the following matters in the Notes to the StandaloneFinancial Statements:

Following Notes to the Standalone Financial Statements describe the uncertainty relatedto the outcome of the lawsuits /other legal matters and matters under settlementsindicated therein :

a) Note No. 17 regarding presentation of the accounts on the basis applicable to"Going Concern" although the Company’s net worth has been fully eroded dueto accumulated losses including the loss for the year for the reason as stated in thenote. In the event the Going Concern assumption is vitiated; the financial statements mayrequire necessary adjustment.

b) Note No. 5(ii) regarding non receipt of confirmation in respect of Bank borrowingsdue to restructuring in progress book balances have been relied upon.

c) Note No. 4 regarding estimated amount of Rs. 804.00 Lacs being provided during thefinancial year 2002-03 as Sales claims & commissions relating to earlier years fromoverseas customers of the company which is pending for final settlement. Thenecessary adjustments for such claims & commission will be made after final settlementand obtaining necessary approval from the concerned regulatory authorities in absence ofwhich we are unable to express our opinion on such adjustment.

d) Note 7 regarding investment which includes of Rs. 5.12 Lacs in a company and Currentassets which include Rs 565.10 Lacs amounts receivable from Companies which have been Sickand referred to BIFR under Sick Industries Companies (Special Provisions) Act 1985. Noprovision has been considered necessary by management at this stage.

Our opinion is not modified in respect of these matters.

Report on Other Legal and Regulatory Requirements

i) As required by the Companies (Auditor’s Report) Order 2015 issued by theCentral Government in terms of Sub-section (11) of Section 143 of the Act we enclose inthe Annexure a statement on the matters specified in the said Order to the extentapplicable to the Company.

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

a) We have sought and except for the matters described in the Basis for QualifiedOpinion paragraph obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit;

b) Except for the possible effects of the matters described in the Basis for QualifiedOpinion paragraph above in our opinion proper books of account as required by law havebeen kept by the Company so far as appears from our examination of those books.

c) The Standalone Balance Sheet Statement of Profit and Loss and Cash Flow Statementdealt with by this Report are in agreement with the books of account;

d) Except for the possible effects of the matters described in the Basis for QualifiedOpinion paragraph in our opinion the Standalone Balance Sheet Statement of Profit andLoss and Cash Flow Statement comply with the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;

e) The matters described in the Basis for Qualified Opinion paragraph above in ouropinion may have an adverse effect on the functioning of the Company;

f) The matters described in sub-paragraph (1) under the Emphasis of Matters paragraphabove in our opinion may have an adverse effect on the functioning of the Company;

g) On the basis of written representations received from the Directors as on 31stMarch 2015 taken on record by the Board of Directors none of the Director isdisqualified as on 31st March 2015 from being appointed as a director in terms of Section164(2) of the Act.

h) 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 information and according to the explanations given to us:

i. There is no pending litigations and impact thereof in the financial position of thecompany.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable loss iii. The Company is not required totransfer any amount in Investor education and protection fund.

For S. S. KOTHARI & CO.
Chartered Accountants
Firm Registration. No. 302034E
A. DATTA
Place: Kolkata Partner
Date: 29th May 2015. Membership No. 005634

ANNEXURE TO THE AUDITORS’ REPORT

The Annexure referred to in our report to the members of UNIWORTH INTERNATIONAL LIMITEDfor the year ended 31st March 2015.

We report that :

(i) (a) Whether the company is maintaining proper (i) records showing full particulars including quantitative details and situation of fixed assets; (a) There is no fixed assets lying with Company. Hence Clause is not applicable to the Company.
(b) Whether these fixed assets have been physically verified by the management at reasonable intervals; whether any material discrepancies were noticed on such verification and if so whether the same have been properly dealt with in the books of account; (b) There is no fixed assets lying with Company. Hence Clause is not applicable to the Company.
(ii) (a) Whether physical verification of inventory (ii) has been conducted at reasonable intervals by the management; (a) There is no inventory lying with Company. Hence Clause is not applicable to the Company.
(b) Are the procedures of physical verification of inventory followed by the management reasonable and adequate in relation to the size of the company and the nature of its business If not the inadequacies in such procedures should be reported; (b) There is no inventory lying with Company. Hence Clause is not applicable to the Company.
(c) Whether the company is maintaining proper records of inventory and whether any material discrepancies were noticed on physical verification and if so whether the same have been properly dealt with in the books of account; (c) There is no inventory lying with Company. Hence Clause is not applicable to the Company.
(iii) Whether the company has granted any loans (iii) secured or unsecured to companies firms or other parties covered in the register maintained under section 189 of the Companies Act. If so The Company has not granted any loan secured or unsecured during the year to any company firm or other party covered in the register maintained under section 189 of the Companies Act 2013.
(a) Whether receipt of the principal amount and interest are also regular; and In this regard we have relied upon the entries recorded in the register maintained under section 189 of the Act.
(b) If overdue amount is more than rupees one lakh whether reasonable steps have been taken by the company for recovery of the principal and interest;
(iv) Is there an adequate internal control system (iv) commensurate with the size of the company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods and services. Whether there is a continuing failure to correct major weaknesses in internal control system. In our opinion and according to the information and explanations given to us there are adequate internal control systems commensurate with the size of the Company and the nature of its business for the purchases of inventory and fixed assets and for the sale of goods. During the course of our audit no major weakness has been noticed in the internal control system nor have there been any continuing failure on the part of the Company to correct any major weakness.
(v) In case the company has accepted deposits (v) whether the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there under where applicable have been complied with? If not the nature of contraventions should be stated; If an order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal whether the same has been complied with or not? The Company has not accepted any deposit from the public within the meaning of sections 73 to 76 or any other relevant provisions of the Companies Act 2013.
(vi) Where maintenance of cost records has been (vi) specified by the Central Government under sub- section (1) of section 148 of the Companies Act whether such accounts and records have been made and maintained. The Company is not required to maintain proper cost records as prescribed by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under sub-section (1) of section 148 of the Companies Act 2013.
(vii) (a) Is the company regular in depositing (vii) undisputed statutory dues including provident fund employees’ state insurance income-tax sales-tax wealth tax service tax duty of customs duty of excise value added tax cess and any other statutory dues with the appropriate authorities and if not the extent of the arrears of outstanding statutory dues as at the last day of the financial year concerned for a period of more than six months from the date they became payable shall be indicated by the auditor. (a) According to the records of the Company this Clause is not applicable to the Company.
(b) In case dues of income tax or sales tax or wealth tax or service tax or duty of customs or duty of excise or value added tax or cess have not been deposited on account of any dispute then the amounts involved and the forum where dispute is pending shall be mentioned. (A mere representation to the concerned Department shall not constitute a dispute).c (b) According to the records of the Company this Clause is not applicable to the Company
(c) Whether the amount required to be trans- ferred to investor education and protection fund in accordance with the relevant provisions of the Companies Act 1956 ( 1 of 1956) and rules made thereunder has been transferred to such fund within time. (c) The Company is not required to transfer any amount to Investor Education and Protection Fund.
(viii) Whether in case of a company which has been (viii) registered for a period not less than five years its accumulated losses at the end of the financial year are not less than fifty per cent of its net worth and whether it has incurred cash losses in such financial year and in the immediately preceding financial year; The accumulated losses of the Company at the end of the financial year have exceeded its net worth and also the Company has incurred cash losses in the current financial year and in the immediately preceding financial year.
(ix) Whether the company has defaulted in repayment (ix) of dues to a financial institution or bank or debenture holders? If yes the period and amount of default to be reported; Certain Banks and Financial Institution have taken legal recourse for recovery of their dues from the company.
(x) Whether the company has given any guarantee (x) for loans taken by others from bank or financial institutions the terms and conditions whereof are prejudicial to the interest of the company; The Company has not given guarantee for loans taken by Other Company others from bank or financial institution and the related terms and conditions are not prejudicial to the interest of the Company.
(xi) Whether term loans were applied for the purpose (xi) for which the loans were obtained; Based on the information and explanations given to us by the Management no Term Loans were obtained by the company during the year . Hence this Clause is not applicable.
(xii) Whether any fraud on or by the company has (xii) been noticed or reported during the year; If yes the nature and the amount involved is to be indicated. Based upon the audit procedures performed during the course of our audit and information and explanations given by the Management we report that no fraud on or by the Company has been noticed or reported during the year.

 

For S. S. KOTHARI & CO.
Chartered Accountants
Firm Registration. No. 302034E
A. DATTA
Place: Kolkata Partner
Date: 29th May 2015. Membership No. 005634