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Uflex Ltd.

BSE: 500148 Sector: Industrials
NSE: UFLEX ISIN Code: INE516A01017
BSE 00:00 | 22 Mar 217.80 -1.80
(-0.82%)
OPEN

220.90

HIGH

220.90

LOW

217.50

NSE 00:00 | 22 Mar 218.05 -2.20
(-1.00%)
OPEN

220.40

HIGH

222.00

LOW

217.00

OPEN 220.90
PREVIOUS CLOSE 219.60
VOLUME 5423
52-Week high 375.45
52-Week low 181.00
P/E 32.27
Mkt Cap.(Rs cr) 1,573
Buy Price 217.95
Buy Qty 916.00
Sell Price 222.00
Sell Qty 1.00
OPEN 220.90
CLOSE 219.60
VOLUME 5423
52-Week high 375.45
52-Week low 181.00
P/E 32.27
Mkt Cap.(Rs cr) 1,573
Buy Price 217.95
Buy Qty 916.00
Sell Price 222.00
Sell Qty 1.00

Uflex Ltd. (UFLEX) - Auditors Report

Company auditors report

To

The Members of

Uflex Limited

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of UflexLimited ("the Company") which comprise the Balance Sheet as at March 31 2018the Statement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Cash Flow Statement for the year then ended and a summary ofthe significant accounting policies and other explanatory information.

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 preparation ofthese standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the Indian Accounting Standards(Ind AS) prescribed under Section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended and other accounting principles generallyaccepted 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; the 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 standalone Ind AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

Auditor's Responsibility

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

In conducting our audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions 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 Ind AS and other accounting principles generally accepted in India of the stateof affairs of the Company as at March 312018 and its profit total other comprehensiveincome its changes in equity and the cash flows for the year ended on that date.

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 books of account.

d) In our opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards prescribed under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on March31 2018 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 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" 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 No. 34 A & 34 C tothe Standalone Ind AS 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

Firm's Regn. No.: 019416N

CA. Deepak Sehgal

Partner

Membership No. 085391

Place : NOIDA

Date : May 28 2018

ANNEXURE-A TO INDEPENDENT AUDITORS' 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 except in respect of two residential flats aggregating toRs. 25.15 lacs (original acquisition cost) and one lease hold land of Rs. 208.46 Lacs(original acquisition cost) where title deeds are pending for execution.

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 loan granted during the year by theCompany to one of the Indian Subsidiary covered in the register maintained under Section189 of the Companies Act 2013:

a) In our opinion and according to the information given to us the terms andconditions of the loan 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 repayments 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 unsecured loan granted to another Indian Subsidiary outstandingat the beginning of the year re-payments have been made as per stipulated terms and thesame has been squared-off during the year.

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 and guarantees given.

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 Sales Tax Service Tax CustomDuty Excise Duty Value Added Tax Goods and Service Tax (GST) Cess and other applicablestatutory dues have been generally deposited regularly with the appropriate authorities.

b) According to the information and explanation given to us there are no dues ofcustom duty and GST which have not been deposited on account of any dispute. Howeverfollowing amount are involved (Gross of amount deposited under protest if any) withunder-mentioned forums in respect of the disputed statutory dues:

i. Aggregate Sale Tax/ Value Added Tax of Rs. 1110.68 lacs pending before (a) VariousHigh Courts (Rs. 775.20 lacs) (b) Tribunal (Rs. 199.59 lacs) & (c) AssessingAuthorities (Rs. 135.89 lacs).

ii. Aggregate Income Tax of Rs. 525.26 lacs pending before ITAT.

iii. Aggregate Excise duty of Rs. 7798.86 lacs pending before (a) Supreme Court (Rs.134.82 lacs) (b) Various High Courts (Rs. 72.56 lacs) (c) Tribunal (Rs. 4570.02 lacs)(d) Commissioner (Appeals) (Rs. 2529.16 lacs) & (e) Assessing Authorities (Rs. 492.30lacs).

iv. Aggregate Service Tax of Rs. 151.91 lacs pending before (a) Tribunal (Rs. 90.71lacs) (b) Commissioner (Appeals) (Rs. 54.86 lacs) & (c) Assessing Authorities (Rs.6.34 lacs).

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/ financial institutions. Further the Company does not have any loansor borrowings from government and has not 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 Ind AS Financial Statements asrequired by the 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. 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

Firm's Regn. No.: 019416N

CA. Deepak Sehgal

Partner

Membership No. 085391

Place : NOIDA

Date : May 28 2018

ANNEXURE-B TO THE INDEPENDENT AUDITORS' 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 2018 in conjunction with our audit of theStandalone Ind AS 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 Companies act 2013 to theextent applicable to an audit of Internal Financial Controls. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial 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 auditors' judgment including the assessment of the risks ofmaterial misstatement of the Standalone Ind AS financial statements whether due to fraudor 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 Standalone Ind AS financial statements for external purposes in accordancewith the 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) providereasonable assurance that transactions are recorded as necessary to permit preparation ofStandalone Ind AS financial statements in accordance with the Ind AS and other accountingprinciples generally accepted in India and that receipts and expenditures of the Companyare being made only in accordance with authorizations of the Management and Directors ofthe Company; and (3) provide reasonable assurance regarding prevention or timely detectionof unauthorized acquisition use or disposition of the Company's assets that could have amaterial effect on the Standalone Ind AS 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 2018 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

Firm's Regn. No.: 019416N

CA. Deepak Sehgal

Partner

Membership No. 085391

Place : NOIDA

Date : May 28 2018