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Udaipur Cement Works Ltd.

BSE: 530131 Sector: Industrials
NSE: JKUDYOG ISIN Code: INE225C01029
BSE 00:00 | 22 Mar 14.52 -0.41
(-2.75%)
OPEN

14.93

HIGH

15.20

LOW

14.40

NSE 05:30 | 01 Jan Udaipur Cement Works Ltd
OPEN 14.93
PREVIOUS CLOSE 14.93
VOLUME 70388
52-Week high 25.60
52-Week low 11.24
P/E
Mkt Cap.(Rs cr) 452
Buy Price 14.52
Buy Qty 400.00
Sell Price 14.52
Sell Qty 100.00
OPEN 14.93
CLOSE 14.93
VOLUME 70388
52-Week high 25.60
52-Week low 11.24
P/E
Mkt Cap.(Rs cr) 452
Buy Price 14.52
Buy Qty 400.00
Sell Price 14.52
Sell Qty 100.00

Udaipur Cement Works Ltd. (JKUDYOG) - Auditors Report

Company auditors report

To

The Members

Udaipur Cement Works Limited

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of UDAIPURCEMENT WORKS LIMITED ("the Company") which comprise the Balance Sheet as at31 March 2018 the Statement of Profit and Loss (including Other Comprehensive Income)the Cash Flow Statement and the Statement of Changes in equity for the year then endedand a summary of significant accounting policies and other explanatory information (hereinafter referred to as "standalone Ind AS Financial Statements").

Management's Responsibility for the Standalone Ind AS 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 preparationof these standalone Ind AS financial statements that give a true and fair view of thestate of affairs (financial position) loss (financial performance including othercomprehensive income) cash flows and changes in equity of the Company in accordance withthe Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read withthe Companies (Indian Accounting Standards) Rules 2015 as amended and other accountingprinciples generally accepted in India.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based 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 thereunder.

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including the Ind AS of thestate of affairs (financial position) of the Company as at 31 March 2018 and its loss(financial performance including other comprehensive income) its cash flows and thechanges in equity for the year ended on that date.

Other Matters

The comparative standalone Ind AS financial statements of the Company for financialyear ended on 31 March 2017 included in these standalone financial statements have beenaudited by predecessor auditors whose report for the year ended on 31 March 2017 datedMay 10 2017 expressed an unmodified opinion on those financial statements.

Our opinion on the standalone financial statements and our report on Other Legal andRegulatory Requirements below is not modified in respect of these matters.

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 section 143 (11) of the Act we givein the Annexure 'A' a statement on the matters specified in paragraphs 3 and 4 of theOrder.

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 it appears from our examination of those books;

(c) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome the Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account;

(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Indian Accounting Standards prescribed under section 133 of the Act read with relevantrule issued thereunder;

(e) On the basis of written representations received from the directors as on 31 March2018 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31 March 2018 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'. Our report expresses an unmodified opinion on the adequacyand operating effectiveness of the Company's internal financial controls over financialreporting; and

(g) 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements - Refer Note 45 to the standaloneInd AS financial statements;

ii. The Company did not have any long term contracts including any derivative contractsfor which there were any material foreseeable losses;

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For Bansilal Shah & Co
Chartered Accountants
FRN: 000384W
Arvind Shah
Place : Udaipur Partner
Date : 10 May 2018 M. No.: 071690

"Annexure - A" to the Auditors' Report

(Referred to in Paragraph 1 under the heading "Report on other legal andregulatory requirements" of our report of even date)

1) In respect of its fixed assets:

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) According to the information and explanations given to us fixed assets have beenphysically verified by the management in a phased periodical manner which in our opinionis reasonable having regard to the size of the Company and nature of its assets. Nomaterial discrepancies were noticed on such verification.

(c) Based upon the audit procedure performed and according to the records of theCompany the title deeds of all the immovable properties are held in the name of theCompany.

2) In respect of its inventories:

(a) The management has physically verified the inventories. In our opinion thefrequency of verification is reasonable.

(b) The discrepancies noticed on verification between the physical stocks and the bookrecords were not material and such discrepancies have been properly dealt with in thebooks of accounts.

3) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under section 189 of theAct. Accordingly the provisions of clause 3(iii) (a) to (c) of the order are notapplicable to the company and hence not commented upon.

4) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act in respect ofgrant of loans making investments and providing guarantees and securities as applicable.

5) According to the information and explanations given to us the Company has notaccepted any deposit from the public during the year in terms of the provisions of section73 to 76 of the Act or any other relevant provisions of the Companies Act 2013 and therules made thereunder.

6) We have broadly reviewed the accounts and records maintained by the Company pursuantto the Companies (Cost Records and Audit) Rules 2014 read with Companies (Cost Recordsand Audit) Amendment Rules 2014specified by the Central Government under Section 148 ofthe Act and are of the opinion that prima facie the prescribed Cost records have beenmade and maintained. We have however not made a detailed examination of the records witha view to determine whether they are accurate or complete.

7) (a) According to the information and explanations given to us the Company hasgenerally been regular in depositing with appropriate authorities undisputed statutorydues including Provident Fund Employees' State Insurance Income Tax Sales Tax valueAdded Tax Service Tax Goods and Service Tax Custom Duty Excise Duty Cess and othermaterial statutory dues applicable to it with the appropriate authorities.

(b) According to the information and explanations given to us no undisputed amountspayable in respect of the aforesaid dues were outstanding as at 31 March 2018 for aperiod of more than six months from the date they become payable.

According to the information and explanations given to us the details of disputedamount of Income Tax Value Added Tax Sales Tax Excise Duty Custom Duty and Service Taxnot deposited by the Company on account of disputes are as follows:

Name of the statute Nature of the dues Period Forum where dispute is pending Amount (in Rs )
Central Excise Act Excise Duty 1995-96 High Court 440017
Excise Duty (Interest) 2000-01 Assistant commissioner Central Excise Udaipur 281325
Excise Duty 2017-18 Assistant Commissioner Central Excise & Service Tax Udaipur 2390020
Excise Duty (Interest) 2017-18 Assistant Commissioner Central Excise & Service Tax Udaipur 2147679
Excise Duty (Penalty) 2017-18 Assistant Commissioner Central Excise & Service Tax Udaipur 597505
Excise Duty 2017-18 Assistant Commissioner Central Excise & Service Tax Udaipur 6978574
Service Tax Act Service Tax 1997-98 Assistant CommissionerExcise (S.T.) 6605892
Sales Tax Act Sales Tax 1999-2000 Assistant Commissioner (Comm. Tax) 814000
Sales Tax (Interest) 1996-97 Assistant Commissioner(Comm. Tax) 911000
1997-98
1998-99
Sales Tax 1996-97 Assistant Commissioner (Comm. Tax) Circle B Jammu 2504900

8) Based on the information and explanations given to us we are of the opinion thatthe Company has not defaulted in repayment of dues to the financial institutions banksgovernments or debenture holders during the year.

9) The company has not raised any money by way of initial public offer further publicoffer (including debt instruments) during the year except for Inter Corporate Loan and thesame was utilized for the purpose for which it was raised.

10) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company or no material fraud on the Company by its officersor employees has been noticed or reported during the year.

11) In our opinion the managerial remuneration has been paid or provided in accordancewith the requisite approvals mandated by the provisions of section 197 read with ScheduleV to the Act.

12) The Company is not a Nidhi Company. Therefore the provisions of clause 3(xii) ofthe Order are not applicable to the Company.

13) In our opinion all transactions with the related parties are in compliance withsections 177 and 188 of the Act where applicable and the details have been disclosed inthe Standalone Ind AS Financial Statements as required by the applicable Indianaccounting standards.

14) The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year except as stated in Note No. 15to the Standalone Financial Statements.

15) According to the information and explanations given to us and on an overallexamination of the financial statements of the Company we report that the Company has notentered into any non-cash transaction with directors or persons connected with himtherefore reporting under clause 3(xv) of the Order are not applicable.

16) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For Bansilal Shah & Co
Chartered Accountants
FRN: 000384W
Arvind Shah
Place : Udaipur Partner
Date : 10 May 2018 M. No.: 071690

"Annexure - B" to the Auditors' Report

(Referred to in Paragraph 2(f) under the heading "Report on other legal andregulatory requirements" of our report of even date)

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 UdaipurCements Works Limited ("the Company") as of 31 March 2018 in conjunction withour audit of the standalone Ind AS financial statements of the Company for the year endedon 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 Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India and the Standards on Auditing prescribed under Section 143(10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) 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

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial 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 occur and not be detected. Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31 March 2018 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For Bansilal Shah & Co
Chartered Accountants
FRN: 000384W
Arvind Shah
Place : Udaipur Partner
Date : 10 May 2018 M. No.: 071690