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Uflex Ltd.

BSE: 500148 Sector: Industrials
NSE: UFLEX ISIN Code: INE516A01017
BSE 00:00 | 12 Aug 678.20 7.95
(1.19%)
OPEN

670.00

HIGH

681.25

LOW

665.00

NSE 00:00 | 12 Aug 676.70 6.30
(0.94%)
OPEN

670.40

HIGH

681.95

LOW

665.00

OPEN 670.00
PREVIOUS CLOSE 670.25
VOLUME 24549
52-Week high 719.00
52-Week low 427.05
P/E 20.37
Mkt Cap.(Rs cr) 4,897
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 670.00
CLOSE 670.25
VOLUME 24549
52-Week high 719.00
52-Week low 427.05
P/E 20.37
Mkt Cap.(Rs cr) 4,897
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Uflex Ltd. (UFLEX) - Auditors Report

Company auditors report

TO THE MEMBERS OF UFLEX LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying Standalone Financial Statements of Uflex Limited("the Company") which comprise the Balance Sheet as at March 312021 theStatement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity the Cash Flow Statement for the year then ended notes to the financialstatements including a summary of the significant accounting policies and otherexplanatory information (hereinafter referred to as "the Standalone FinancialStatements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Financial Statements give the information requiredby the Companies Act 2013 as amended ("the Act") in the manner so required andgive a true and fair view in conformity with the Indian Accounting Standards (Ind AS)prescribed under Section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended and other accounting principles generally accepted inIndia of the state of affairs of the Company as at March 312021 the profit and OtherComprehensive Income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the Standalone Financial Statements in accordance with theStandards on Auditing (SAs) as specified under Section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the 'Auditor'sResponsibilities for the Audit of the Standalone Financial Statements' section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the ethicalrequirements that are relevant to our audit of the Standalone Financial Statements underthe provisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Standalone Financial Statements for the Financial Yearended March 31 2021. These matters were addressed in the context of our audit of theStandalone Financial Statements as a whole and in forming our opinion thereon and we donot provide a separate opinion on these matters. We have determined the matters describedbelow to be the key audit matters to be communicated vide this report:

Key Audit Matter Auditor’s Response
Capitalisation and useful life of Property Plant and Equipment (PPE) Our audit procedures included and were not limited to the following:
During the year ended March 31 2021 the Company has incurred capital expenditure on various projects included in Capital Work-in-progress and intangible assets under development. Further items of PPE that are ready for its intended use as determined by the management have been capitalised in the current year. Judgement is involved to determine that the aforesaid capitalisation meet the recognition requirement under Ind AS - 16 on 'Property Plant and Equipment' specifically in relation to determination of whether the criteria for intended use as determined by the management has been met. • Examined the management assessment of the assumptions considered in estimation of technical useful life based on technical evolution;
Further the Company has assessed the useful life of some of its plant and machinery different from useful life mentioned in Schedule-II of the Companies Act 2013. Assessment of useful life of plant and machinery involves management judgement technical assessment consideration of historical experiences anticipated technological changes intended use and expected number of shifts PPE will be used etc.. • Examined the useful economic lives with reference to the Company's historical experience intended use and expected number of shifts PPE will be used and
• Assessed the nature of the additions made to PPE intangible assets Capital Work-in-progress and intangible asset under development on a test check basis to test whether they meet the recognition criteria as set out in Ind AS - 16 on 'Property Plant and Equipment' and Ind - AS 38 on 'Intangible Assets'.
Revenue Recognition Our audit procedures included and were not limited to the following:
The Company's contracts with customers include contracts encompassing multiple products and services. The Company derives revenues from flexible packaging activities Engineering activities and related activities. The Company assesses the activities promised in a contract and identifies distinct performance obligations in the contract where applicable. Identification of distinct performance obligations to determine the deliverables and the ability of the customer to benefit independently from such deliverables involves significant judgement.
• Evaluated the detailed analysis performed by those charged with governance and those acting on their directions on revenue streams;
• Evaluated the appropriateness of the disclosures provided under the Ind AS - 115 on 'Revenue from Contracts with Customers' and assessed the completeness of the relevant disclosures;
• Evaluation and testing of the design and operating effectiveness of the relevant business process controls inter-alia controls over the capture measurement and authorisation of revenue transactions ;
• Evaluated the agreements with the customers to identify the distinct performance obligations where applicable the transaction price and its allocation to the performance obligations in the contract and the classification of the contract for the basis of revenue recognition in accordance with Ind AS - 115 and
• Evaluated the treatment accorded and disclosures by the company for sales returns trade discounts rate differences volume rebates and other factors having bearing on revenue recognition.

Information Other than the Standalone Financial Statements and Auditor's Report Thereon

The Company's Management and its Board of Directors are responsible for the preparationof the other information. The other information comprises the information included in theCompany's Annual Report but does not include the Standalone Financial Statements and ourauditor's report thereon.

Our opinion on the Standalone Financial Statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Financial Statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the Standalone Financial Statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Responsibility of the Management for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these Standalone Financial Statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income changes in equity and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting Standards specified under Section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities; selection and application of appropriate accounting policies;making judgments and estimates that are reasonable and prudent; and design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the Standalone Financial Statements that give a true andfair view and are free from material misstatement whether due to fraud or error.

In preparing the Standalone Financial Statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the StandaloneFinancial Statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these Standalone Financial Statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the StandaloneFinancial Statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under Section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe Standalone Financial Statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the StandaloneFinancial Statements including the disclosures and whether the Standalone FinancialStatements represent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Standalone Financial Statementsof the current year and are therefore the key audit matters. We describe these matters inour auditor's report unless law or regulation precludes public disclosure about the matteror when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

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 in terms of Section 143(11) of the Act we give in"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 based on our audit 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 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 Statement of Changes in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the relevant books of account;

d. In our opinion the aforesaid Standalone Financial Statements comply with the Ind ASspecified under Section 133 of the Act read with Companies (Indian Accounting Standards)Rules 2015 as amended;

e. On the basis of the written representations received from the directors as on March31 2021 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2021 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 onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting;

g. With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of Section 197(16) of the Act as amended:

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of Section 197 read with Schedule V 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 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 Financial Statements- Refer Note No. 33(A) & 33(C) to theStandalone Financial Statements;

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

iii. According to the information and explanations given to us there was no delay intransferring amounts required to be transferred to the Investor Education and ProtectionFund by the Company.

For KAAP & Associates
Chartered Accountants
ICAI Firm's Regn. No.: 019416N
CA. Deepak Sehgal
Partner
Place : NOIDA Membership No. 085391
Dated : June 29 2021 UDIN: 21085391AAAAAG8113

ANNEXURE-A TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 under "Report on Other Legal and RegulatoryRequirements" Section of our report to the members of Uflex Ltd. ("theCompany") of even date)

1. In respect of Fixed Assets (Property Plant and Equipment Capital Work in ProgressInvestment Property and Other Intangible Assets including those under development) of theCompany:

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

b) The Fixed Assets have been physically verified by the management at reasonableintervals and no material discrepancies were noticed on such physical verification;

c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

2. The inventory has been physically verified during the year by the management atreasonable intervals and the discrepancies noticed on such physical verification ofinventory as compared to book records were not significant and were properly dealt within the books of account.

3. In respect of interest-bearing unsecured loans granted during the year by theCompany to its Indian Subsidiary covered in the register maintained under Section 189 ofthe Companies Act 2013 ("the Act") :

a) In our opinion and according to the information given to us the terms andconditions of the loans given by the Company are prima-facie not prejudicial to theinterest of the Company;

b) The terms for repayment of principal and payment of interest have been stipulated;however repayment of principal amount and interest has not started till the date of theBalance Sheet as per the stipulated terms;

c) There is no overdue amount in respect of both principal and interest.

Further in respect of interest-bearing unsecured loans granted to: (i) The IndianSubsidiary as referred above outstanding at the beginning of the year principal alongwith interest has been recovered during the year as per modified terms which wereprima-facie not prejudicial to the interest of the Company and (ii) A Joint ventureentity outstanding at the beginning of the year terms of repayments have been modifiedwhich are prima-facie not prejudicial to the interest of the Company.

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 with respectto the loans and investments made guarantees given and securities provided.

5. The Company has not accepted any deposits under the provisions of Sections 73 to 76or any other relevant provisions of the Act and the rules framed there under during theyear under report.

6. We have broadly reviewed the cost records maintained by the Company under Section148(1) of the Act and are of the opinion that prima- facie the prescribed records havebeen made and maintained

7. In respect of Statutory dues:

a) According to the records of the Company undisputed statutory dues includingProvident Fund Employee's State Insurance Income Tax Custom Duty Goods and ServicesTax (GST) Cess and other applicable statutory dues have been generally depositedregularly with the appropriate authorities.

b) According to the information and explanations given to us there are no dues ofcustom duty which have not been deposited on account of any dispute. However followingamount are involved (Gross of amount deposited under protest if any) with under-mentionedforums in respect of the disputed statutory dues:

Name of Statute Nature of Dues Amount (Rs. in lacs) Period to which it pertains (all or some years in case of block) Forum where dispute is pending
The Central Sales

Sales tax and VAT

775.20 AY 2008-09 and AY2010-11 High Courts
Tax Act 1956 and concerned Value Added Tax Laws 215.97 AY 2009-10 to AY 2015-16 Tribunal
56.44 AY 2015-16 and AY 2016-17 Appellate Authority
318.73 AY 2015-16 and AY 2017-18 DC (Appeal)
Total 1366.34
The Income-tax Act 1961 Income-tax 80.31 AY 2002-03 and AY 2003-04 High Court
873.32 AY 2004-05 to AY 2013-14 ITAT
68.91 AY 2016-17 CIT(A)
116.94 AY 2017-18 Assessing Authorities
Total 1139.48
The Central Excise Act 1944 Excise Duty 2003.51 2012-13 to 2015-16 Tribunal
2425.16 1997-98 to 2016-17 Commissioner (Appeals)
339.93 1997-98 to 2017-18 AC/DC/JC
50.76 1998-99 to 2006-07 High Court
7.73 1996-97 Supreme Court
Total 4827.09
The Finance Act 1994 Service Tax 54.86 2006-07 Commissioner (Appeals)
6.34 2006-07 AC/DC
Total 61.20
Laws on Goods and Services Tax Goods and Services Tax 29.69 2017-18 to 2019-20 JC/ADC(A)
Total 29.69

8. Based on the audit procedure and according to the information and explanation givento us we are of the opinion that the Company has not defaulted in repayment of loans orborrowings to banks and financial institution and has availed the relaxation provided bythe Reserve Bank of India on deferment of installments (including interest) of all loansoutstanding as of March 012020 for a period of six months from March 012020 to August312020. Also the Company does not have any loans and borrowings from government and hasnot issued any debentures.

9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments). The term loans raised during the year have beenapplied for the same purpose for which the loans were obtained.

10. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

11. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act.

12. In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

13. 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 Standalone Financial Statements as required bythe applicable Ind AS.

14. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

15. According to the information and explanations given 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 them as referred to in Section 192of the Act. Accordingly paragraph 3(xv) of the Order is not applicable.

16. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act1934.

For KAAP & Associates
Chartered Accountants
ICAI Firm's Regn. No.: 019416N
CA. Deepak Sehgal
Partner
Place : NOIDA Membership No. 085391
Dated : June 29 2021 UDIN: 21085391AAAAAG8113

ANNEXURE-B TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2(f) under "Report on Other Legal and RegulatoryRequirements" section of our report to the members of Uflex Ltd. ("theCompany") of even date)

Report on the Internal Financial Controls over Financial Reporting under Clause (i) ofsub-Section 3 of Section 143 of the Companies Act 2013 (‘the Act')

We have audited the internal financial controls over financial reporting of UflexLimited ('the Company') as of March 31 2021 in conjunction with our audit of theStandalone 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 Controls over FinancialReporting" (the 'Guidance Note') issued by the Institute of Chartered Accountants ofIndia ('ICAI'). These responsibilities include the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to the Company'spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditor's 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 accordance with the Guidance Note issued by the ICAI and theStandards on Auditing prescribed under Section 143 (10) of the Act 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 were 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 Standalone Financial Statements whether due to fraud orerror.

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 Standalone Financial Statements for external purposes in accordance withthe Ind AS and other accounting principles generally accepted in India. A company'sinternal financial control over financial reporting includes those policies and proceduresthat

(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 Standalone Financial Statements in accordance with the Ind AS and otheraccounting principles generally accepted in India and that receipts and expenditures ofthe Company are being made only in accordance with authorizations of the Management andDirectors 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 Standalone 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.

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 March 31 2021 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note issued by the ICAI.

For KAAP & Associates
Chartered Accountants
ICAI Firm's Regn. No.: 019416N
CA. Deepak Sehgal
Partner
Place : NOIDA Membership No. 085391
Dated : June 29 2021 UDIN: 21085391AAAAAG8113

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