You are here » Home » Companies » Company Overview » UFM Industries Ltd

UFM Industries Ltd.

BSE: 531610 Sector: Agri and agri inputs
NSE: N.A. ISIN Code: INE832E01010
BSE 05:30 | 01 Jan UFM Industries Ltd
NSE 05:30 | 01 Jan UFM Industries Ltd

UFM Industries Ltd. (UFMINDS) - Auditors Report

Company auditors report

To the Members

UFM INDUSTRIES LIMITED

Report on the Financial Statements

We have audited the accompanying standalone Ind AS financial statements of UFMINDUSTRIES LIMITED("the Company") which comprise the Balance Sheet as at31.03.2018 the Statement of Profit & Loss including the statement of OtherComprehensive Income the Cash Flow Statementand the Statement of Changes in Equity forthe year then endedand a summary of significant accounting policies and other explanatoryinformation.

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 Ind As financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in the equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) specifiedunder Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 andthe Companies (Indian Accounting Standards)Rules 2015 as amended. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Ind AS financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.

Auditor's 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 thestandalone Ind AS financial statements in accordance with the Standards on Auditingspecified under Section 143(10) of the Act. 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 theStandalone Ind AS financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation and fair presentation of the standalone Ind AS financial statementsthat give a true and fair view in order to design audit procedures that are appropriate inthe circumstances. 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 conformity with the accounting principlesgenerally accepted in India:

i) In the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2018

ii) In the case of the Statement of Profit & Loss of the profit/loss includingother comprehensiveincome for the year ended on that date

iii) In the case of the Cash Flow Statement of the cash flows for the year ended onthat date and

iv) In the case of the Statement of Changes in Equity the changes in equity for theyearended 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 of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the Annexure-Aa statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

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 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 the Statement ofOther ComprehensiveIncome and the cash flow statement dealt with by this Report are inagreement with the books of account;

(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014 and the Companies (Indian Accounting Standards)Rules2015 as amended;

(e) On the basis of the written representations received from the directors as on 31March 2018 taken on record by the Board of Directors the directors are not 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'.

(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 in our opinionand to the best of our information and according to the explanations given to us:

i) The Company does not have any pending litigations which would impact its financialposition in its financial statement.

ii) The Company did not have any long-term contracts including derivative contracts forwhich 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 P. A. Agarwal & Co.

Chartered Accountants F.R.N. : 327316E

CA.Pulkit Agarwal

Partner Place : Silchar

M. No. : 069321 Date : 15.06.2018

'ANNEXURE - A' REFERRED TO IN OUR AUDIT REPORT OF EVEN DATE TO THE MEMBERS OF

UFM INDUSTRIES LIMITEDON ACCOUNTS FOR THE YEAR ENDED 31ST MARCH'2018.

i) (a) The Company has maintained proper records showing full particularsincludingquantitative

details and situation of its fixed assets.

(b) The fixed assets have been physically verified by the management during the year.We are informed that no material discrepancies were noticed by the management on suchverification.

(c) According to the information and explanations given by the management the titledeeds ofimmovable properties included in property plant and equipment/ fixed assets areheld in the nameof the Company.

ii) (a) The management has conducted the physical verification of inventory atreasonable intervals. (b) As explained to us therewas no material discrepancies noticedon physical verification of

inventories ascompared to the books/records.

iii) According to the information and explanation given to us the company has notgranted any loan or advance to any of any companies; firms or other parties covered in theregister maintained under section 189 of the Companies Act 2013:

(a) In view of the above clause (iii) sub-clause (a) is not applicable.

(b) In view of the above clause (iii) sub-clause (b) is not applicable.

(c) In view of the above clause (iii) sub-clause (c) is not applicable.

iv) 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 Companies Act 2013in respect of loans investments guarantees and securities wherever applicable.

v) The Company has not accepted deposits from the members during the year and hence theclause directives issued by the Reserve Bank of India and the provisions of Section 73 to76 or any other relevant provisions of the Companies Act'2013 and the rules framedthereunder are not applicableon the Company.

vi) To the best of our knowledge and as explained the Central Government has notspecified maintenance of cost records under sub-section (1) of section 148 of theCompanies Act 2013 for the products of the Company.

vii) (a) According to the information and explanations given to us and based on therecords of the company examined by us the company is regular in depositing the undisputedstatutory dues including Provident Fund Employees' State Insurance Income Tax SalesTax Wealth Tax Service Tax Custom Duty Excise Duty and other material statutory duesas applicable with the appropriate authorities in India

(b) According to the information and explanations given to us no undisputed amountspayable in respect of providentfund employees' state insurance income-tax service taxsales-tax duty of custom duty of excise value added taxcess and other materialstatutory dues were outstanding at the year end for a period of more than six monthsfromthe date they became payable.

(c) There were no dues of Income Tax or service tax or duty of customs or value addedtax or entry tax

which has not been deposited as on March 2018 on account of any dispute.

viii) According to the records of the Company it has not defaulted in repayment of itsdues to any financial institution bank or debenture holders during the year.

ix) On the basis of review of utilization of funds pertaining to term loans on overallbasis and related information as made available to us the term loan taken by the Companyhave been applied for the purposes for which they are obtained.

x) On the basis of our examination and according to the information and explanationsgiven to us no fraud by the Companyor on the Company by its officers or employees hasbeen noticed or reported during the year.

xi) On the basis of our examination and according to the information and explanationsgiven to us the Company has paid/provided themanagerial remuneration in accordance withtherequisite approvals mandated by the provisions of section 197 read with Schedule V tothe Companies Act 2013.

xii) In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 4 (xii) of the Order are not applicable to the Company.

xiii) 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 and details of such transactions have beendisclosed in the financial statements as required by the applicable accounting standardswherever applicable.

xiv) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of clause 3 (xiv) of the Order are not applicable tothe Company and hence not commented upon.

xv) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of clause 3 (xv) ofthe Order are not applicable to the Company and hence not commented upon.

xvi) In our opinion the company is not required to be registered under section 45 IAof the Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi)of the Order are not applicable to the Company and hence not commented upon.

For P. A. Agarwal & Co.

Chartered Accountants

F.R.N. : 327316E

CA.Pulkit Agarwal

Partner Place : Silchar

M. No. : 069321 Date : 15.06.2018

'ANNEXURE - B' REFERRED TO IN OUR AUDIT REPORT OF EVEN DATE TO THE MEMBERS OF

UFM INDUSTRIES LIMITEDON ACCOUNTS FOR THE YEAR ENDED 31ST MARCH'2018

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 UFMIndustries Limited ("the Company") as of March 31 2018 in conjunction with ouraudit of the standalone Ind AS 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. 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 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 Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls 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 judgement 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in

accordance with authorisations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the company's assets that could have a material effecton 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 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 the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2018 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For P. A. Agarwal & Co.

Chartered Accountants F.R.N. : 327316E

CA.Pulkit Agarwal

Partner Place : Silchar

M. No. : 069321

Date : 15.06.2018