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Uni Abex Alloy Products Ltd.

BSE: 504605 Sector: Engineering
NSE: N.A. ISIN Code: INE361D01012
BSE 00:00 | 22 Mar 440.00 19.70
(4.69%)
OPEN

439.00

HIGH

441.30

LOW

437.00

NSE 05:30 | 01 Jan Uni Abex Alloy Products Ltd
OPEN 439.00
PREVIOUS CLOSE 420.30
VOLUME 171
52-Week high 680.00
52-Week low 387.05
P/E 15.98
Mkt Cap.(Rs cr) 87
Buy Price 427.05
Buy Qty 20.00
Sell Price 440.00
Sell Qty 30.00
OPEN 439.00
CLOSE 420.30
VOLUME 171
52-Week high 680.00
52-Week low 387.05
P/E 15.98
Mkt Cap.(Rs cr) 87
Buy Price 427.05
Buy Qty 20.00
Sell Price 440.00
Sell Qty 30.00

Uni Abex Alloy Products Ltd. (UNIABEXALLOY) - Auditors Report

Company auditors report

INDEPENDENT AUDITOR'S CERTIFICATE ON CORPORATE GOVERNANCE TO THE MEMBERS OF UNI ABEXALLOY PRODUCTS LIMITED

1. This certificate is issued in accordance with the terms of our engagement letterdated 16 August2017.

2. We have examined the compliance of conditions of corporate governance by Uni AbexAlloy Products Limited (‘the Company') for the year ended on 31 March 2018 asstipulated in Regulations 17 to 27 clauses (b) to (i) of Regulation 46(2) and paragraphsC D and E of Schedule V of the Securities and Exchange Board of India (ListingObligations and Disclosure Requirements) Regulations 2015 (‘Listing Regulations').

Management's Responsibility

3. The compliance of conditions of corporate governance is the responsibility of themanagement. This responsibility includes the designing implementing and maintainingoperating effectiveness of internal control to ensure compliance with the conditions ofcorporate governance as stipulated in the Listing Regulations.

Auditor's Responsibility

4. Pursuant to the requirements of the Listing Regulations our responsibility is toexpress a reasonable assurance in the form of an opinion as to whether the Company hascomplied with the conditions of corporate governance as stated in paragraph 2 above. Ourresponsibility is limited to examining the procedures and implementation thereof adoptedby the Company for ensuring the compliance with the conditions of corporate governance. Itis neither an audit nor an expression of opinion on the financial statements of theCompany.

5. We have examined the relevant records of the Company in accordance with theapplicable Generally Accepted Auditing Standards in India the Guidance Note onCertification of Corporate Governance issued by the Institute of Chartered Accountants ofIndia (‘ICAI') and Guidance Note on Reports or Certificates for Special Purposesissued by the ICAI which requires that we comply with the ethical requirements of the Codeof Ethics issued by the ICAI.

6. We have complied with the relevant applicable requirements of the Standard onQuality Control (SQC) 1 Quality Control for Firms that Perform Audits and Reviews ofHistorical Financial Information and Other Assurance and Related Services Engagements.

Opinion

7. Based on the procedures performed by us and to the best of our information andaccording to the explanations provided to us in our opinion the Company has complied inall material respects with the conditions of corporate governance as stipulated in theListing Regulations during the year ended 31 March 2018.

We state that such compliance is neither an assurance as to the future viability of theCompany nor the efficiency or effectiveness with which the management has conducted theaffairs of the Company.

Restriction on use

8. This certificate is issued solely for the purpose of complying with the aforesaidregulations and may not be suitable for any other purpose.

For Walker Chandiok & Co LLP
Chartered Accountants
Firm Registration No. 001076N/N500013
Per Khushroo B. Panthaky
Place: Mumbai Partner
Date: 23 May 2018 Membership No.: 42423

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UNI ABEX ALLOY PRODUCTS LIMITED

Report on the Financial Statements

1. We have audited the accompanying financial statements of Uni Abex Alloy ProductsLimited (‘the Company') which comprise the Balance Sheet as at 31 March 2018 theStatement of Profit and Loss (including Other Comprehensive Income) the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and a summary ofthe significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

2. 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 financial statements that give a true and fair view of the state of affairs(financial position) profit or loss (financial performance including other comprehensiveincome) cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards(‘Ind AS') specified under Section 133 of the Act. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

3. Our responsibility is to express an opinion on these financial statements based onour audit.

4. 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.

5. 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 whetherthese financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial controls relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

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

Opinion

8. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India including Ind AS specified under Section 133 of theAct of the state of affairs (financial position) of the Company as at 31 March 2018 andits profit (financial performance including other comprehensive income) its cash flowsand the changes in equity for the year ended on that date.

Other Matter

9. The comparative financial information for the year ended 31 March 2017 and thetransition date opening balance sheet as at 1 April 2016 prepared in accordance with IndAS included in these financial statements are based on the previously issued statutoryfinancial statements for the year ended 31 March 2017 and 31 March 2016 respectivelyprepared in accordance with Accounting Standards prescribed under Section 133 of the Actread with Rule 7 of the Companies (Accounts) Rules 2014 (as amended) which were auditedby the predecessor auditor whose reports dated 29 May 2017 and 30 May 2016 respectivelyexpressed unmodified opinion on those financial statements and have been adjusted for thedifferences in the accounting principles adopted by the Company on transition to Ind ASwhich have been audited by us. Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

10. 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 I a statement on the matters specified in paragraphs 3 and 4 of theOrder.

11. Further to our comments in Annexure I as required by Section 143(3) of the Act wereport 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 financial statements dealt with by this report are in agreement with the booksof account;

d) in our opinion the aforesaid financial statements comply with Ind AS specifiedunder Section 133 of the Act;

e) on the basis of the written representations received from the Directors and taken onrecord by the Board of Directors none of the Directors is disqualified as on 31 March2018 from being appointed as a Director in terms of Section 164(2) of the Act;

f) we have also audited the internal financial controls over financial reporting(IFCoFR) of the Company as on 31 March 2018 in conjunction with our audit of the financialstatements of the Company for the year ended on that date and our report dated 23 May 2018as per Annexure II expressed an unmodified opinion;

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 as detailed in Note 42 to the financial statements has disclosed theimpact of pending litigations on its financial position;

ii. the Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

iii. there has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company; and

iv. The disclosure requirements relating to holdings as well as dealings in specifiedbank notes were applicable for the period from 8 November 2016 to 30 December 2016 whichare not relevant to these financial statements. Hence reporting under this clause is notapplicable.

For Walker Chandiok & Co LLP
Chartered Accountants
Firm's Registration No. 001076N/N500013
Per Khushroo B. Panthaky
Place: Mumbai Partner
Date: 23rd May 2018 Membership No.: 42423

ANNEXURE I TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE TO MEMBERS OF UNI ABEXALLOY PRODUCTS LTD. ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2018.

Annexure I

Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit and to the best of our knowledge and beliefwe report that:

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

(b) The Company has a regular program of physical verification of its fixed assetsunder which fixed assets are verified in a phased manner over a period of three yearswhich in our opinion is reasonable having regard to the size of the Company and thenature of its assets. In accordance with this program certain fixed assets were verifiedduring the year and no material discrepancies were noticed on such verification.

(c) The title deeds of all the immovable properties (which are included under the head‘Property plant and equipment') are held in the name of the Company.

(ii) In our opinion the management has conducted physical verification of inventory atreasonable intervals during the year and no material discrepancies between physicalinventory and book records were noticed on physical verification.

(iii) The Company has not granted any loan secured or unsecured to companies firmsLimited Liability Partnerships (LLPs) or other parties covered in the register maintainedunder Section 189 of the Act. Accordingly the provisions of clauses 3(iii)(a) 3(iii)(b)and 3(iii)(c) of the Order are not applicable.

(iv) In our opinion the Company has complied with the provisions of Sections 185 and186 of the Act in respect of loans investments guarantees and security.

(v) In our opinion the Company has not accepted any deposits within the meaning ofSections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (asamended). Accordingly the provisions of clause 3(v) of the Order are not applicable.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the Rules made by the Central Government for the maintenance of cost records undersub-section (1) of Section 148 of the Act in respect of Company's products and are of theopinion that prima facie the prescribed accounts and records have been made andmaintained. However we have not made a detailed examination of the cost records with aview to determine whether they are accurate or complete.

(vii) (a) Undisputed statutory dues including provident fund employees' StateInsurance Income-Tax Sales-Tax

Service Tax duty of customs duty of excise value added tax cess and other materialstatutory dues as applicable have generally been regularly deposited with theappropriate authorities though there has been a slight delay in a few cases. Further noundisputed amounts payable in respect thereof were outstanding at the year-end for aperiod of more than six months from the date they became payable.

(b) The dues outstanding in respect of income-tax sales-tax service-tax duty ofcustoms duty of excise and value added tax on account of any dispute are as follows:

Statement of Disputed Dues

Name of the statute Nature of dues Amount (Rs in lakhs) Amount paid under Protest (Rs in lakhs) Period to which the amount relates Forum where dispute is pending
Central Sales Tax Act 1956 Sales Tax 150.69 22.63 1997-98 19992000 2001-02 2003-04 2011-12 2012-13 2013-14 Commissioner of Sales Tax Appeals
Central Sales Tax Act 1956 Sales Tax 537.95 33.00 2004-05 2010-11 Deputy Commissioner of Sales Tax
Central Excise Act 1944 CENVAT Credit Disallowance 3.18 Various years Deputy Commissioner of Central Excise
Central Excise Act 1944 CENVAT Credit Disallowance 124.02 Various years Commissioner of Central Excise (Appeals)
Central Excise Act 1944 CENVAT Credit Disallowance 26.40 Various years CESTAT

(viii) The Company has not defaulted in repayment of loans or borrowings to any bank orfinancial institution or government during the year. The Company did not have anyoutstanding debentures during the year.

(ix) The Company did not raise moneys by way of initial public offer or further publicoffer (including debt instruments). In our opinion the term loans were applied for thepurposes for which the loans were obtained though idle/ surplus funds which were notrequired for immediate utilisation have been invested in liquid investments payable ondemand.

(x) In our opinion no fraud by the Company or on the Company by its officers oremployees has been noticed or reported during the period covered by our audit.

(xi) The Company has not paid or provided for any managerial remuneration. Accordinglythe provisions of Clause 3(xi) of the Order are not applicable.

(xii) In our opinion the Company is not a Nidhi Company. Accordingly provisions ofclause 3(xii) of the Order are not applicable.

(xiii) In our opinion all transactions with the related parties are in compliance withSections 177 and 188 of Act where applicable and the requisite details have beendisclosed in the financial statements etc. as required by the applicable Ind AS.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures.

(xv) In our opinion the Company has not entered into any non-cash transactions withthe directors or persons connected with them covered under Section 192 of the Act.

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

For Walker Chandiok & Co LLP
Chartered Accountants
Firm's Registration No. 001076N/N500013
Per Khushroo B. Panthaky
Place: Mumbai Partner
Date: 23rd May 2018 Membership No. 42423

ANNEXURE II TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE TO MEMBERS OF UNI ABEXALLOY PRODUCTS LTD. ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2018

Annexure II

Independent Auditor's Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 (‘the Act')

1. In conjunction with our audit of the financial statements of Uni Abex Alloy ProductsLimited (‘the Company') as at and for the year ended 31 March 2018 we have auditedthe internal financial controls overfinancial reporting (‘IFCoFR') of the Company asat that date.

Management's Responsibility for Internal Financial Controls

2. The Company's Board of Directors is responsible for establishing and maintaininginternal financial controls based on the IFCoFR criteria established by the Companyconsidering the essential components of internal controls stated in the Guidance Note onAudit of Internal Financial Control over Financial Reporting (‘the Guidance Note')issued by the Institute of Chartered Accountants of India (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of the Company's business including adherence to the Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.

Auditors' Responsibility

3. Our responsibility is to express an opinion on the Company's IFCoFR based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theICAI and deemed to be prescribed under Section 143(10) of the Act to the extentapplicable to an audit of IFCoFR and the Guidance Note issued by the ICAI. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate IFCoFR wereestablished and maintained and if such controls operated effectively in all materialrespects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the IFCoFR and their operating effectiveness. Our audit of IFCoFR includes obtaining anunderstanding of IFCoFR assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's IFCoFR.

Meaning of Internal Financial Controls over Financial Reporting

6. A Company's IFCoFR is a process designed to provide reasonable assurance regardingthe reliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A Company'sIFCoFR include 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 ofmanagement and Directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of theCompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

7. Because of the inherent limitations of IFCoFR including the possibility ofcollusion or improper management override of controls material misstatements due to erroror fraud may occur and not be detected. Also projections of any evaluation of the IFCoFRto future periods are subject to the risk that the IFCoFR may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.

Opinion

8. In our opinion the Company has in all material respects adequate internalfinancial controls over financial reporting and such controls were operating effectivelyas at 31 March 2018 based on the IFCoFR criteria established by the Company consideringthe essential components of internal controls stated in the Guidance

Note issued by the ICAI

For Walker Chandiok & Co LLP
Chartered Accountants
Firm's Registration No.: 001076N/N500013
Per Khushroo B. Panthaky
Place: Mumbai Partner
Date: 23rd May 2018 Membership No. 42423