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Uni Abex Alloy Products Ltd.

BSE: 504605 Sector: Engineering
NSE: N.A. ISIN Code: INE361D01012
BSE 00:00 | 24 Jun 580.55 8.55
(1.49%)
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NSE 05:30 | 01 Jan Uni Abex Alloy Products Ltd
OPEN 586.00
PREVIOUS CLOSE 572.00
VOLUME 281
52-Week high 807.50
52-Week low 516.50
P/E 9.32
Mkt Cap.(Rs cr) 115
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 586.00
CLOSE 572.00
VOLUME 281
52-Week high 807.50
52-Week low 516.50
P/E 9.32
Mkt Cap.(Rs cr) 115
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

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

Company auditors report

TO THE MEMBERS OF UNI-ABEX ALLOY PRODUCTS LIMITED

Report on the Audit of the Financial Statements Opinion

1. We have audited the accompanying financial statements of Uni-Abex Alloy ProductsLimited (‘the Company’) which comprise the Balance Sheet as at 31 March 2021the Statement of Profit Comprehensive Income) the Statement of Cash Flow and theStatement of Changes in Equity for the year then ended and a summary of the significantaccounting policies and other explanatory information.

2. 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 theCompanies Act 2013 (‘Act’) in the manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India includingIndian Accounting Standards (‘Ind AS’) specified under section 133 of theCompany as at 31 March 2021 and its profit (including other comprehensive income) itscash flows changes in equity for the year ended on that date.

Basis for Opinion

3. We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act.

Our responsibilities under those standards are further described in the Auditor’sResponsibilities for the Audit of the Financial Statements section of our report. we areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India (‘ICAI’) together with the ethicalrequirements statements under the provisions of that are relevant to our audit of theAct and the rules thereunder financial and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.

Key Audit Matters

4. Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion these matters.

5. we have determined the matter described below to be the key audit matters to becommunicated in our report.

Key audit matter How our audit addressed the key audit matter
Valuation of inventory Our audit procedures included but were not limited to the following:
Refer note 3 (o) to the accompanying financial statements for accounting policy for valuation of inventory balance and refer note 13 for the closing inventory balance as at 31 March 2021 which comprises of `2208.82 lakhs of raw materials inventories `749.11 lakhs of work-in- progress inventories `76.61 lakhs of finished goods inventories and `63.72 lakhs of stores and spares inventories. Obtained an understanding of management process for inventory valuation;
The raw material inventory includes inventory relating to ‘Turnings’ which is produced as a by-product in the process of production of ‘Decanters’ and consumed again in the production cycle to produce billets and chips. Further the production process of alloy products involves mixing of different types of purchased metals such as nickel ferroalloy chromium and billets. Evaluated design effectiveness and tested the design effectiveness of controls over inventory valuation process;
The valuation of work-in-progress and finished goods is a complex exercise. The valuation process involves estimation in determination of: Tested key inputs used in the valuation process from source documents/general ledger accounts;
Alloy rate based on product mix Tested reconciliation of opening inventories purchase/production sales and year-end inventories to validate the yield during the year and to identify any abnormal production loss;
Overhead absorption rates Compared key estimates including those involved in computation of alloy rates and overhead absorption to prior years and enquired reasons for any significant variations;
Determination of yield and On a sample basis recomputed the value of inventories and the value of self-generated raw materials items using the management’s model of valuation ensuring consistency from previous year;
Determination of value of by-products Inspected management physical verification records for identification of obsolete or damaged inventories and also conducted physical verification of inventory as at 31 March 2021;
Accordingly valuation of year-end inventory balances which is significant with respect to the total assets held by the Company and which involves complex computations estimates significant management and judgements is considered to be one of the area which auditor’s attention and therefore requires significant determined to be a key audit matter for the current year audit. Tested arithmetical accuracy of valuation calculations; and
Assessed the appropriateness and adequacy of the related disclosures in the financial statements in accordance with the requirements of applicable accounting standards.

Information other than the Financial Statements and Auditor’s Report thereon

6. The Company’s Board of Directors is responsible for the other information. Theother information comprises the information included in the Annual Report but does notinclude the financial statements and our auditor’s report thereon. The Annual Reportis expected to be made available to us after the date of this auditor's report.

Our opinion on the financial statements does not cover the other information and wewill not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information identified above when it becomes available and in doing soconsider whether the other information is materially inconsistent with the financialstatements or our knowledge materially misstated. when we read the Annual Report if weconclude that there is a material misstatement therein we are required to communicate thematter to those charged with governance.

Responsibilities of Management and Those Charged with Governance for the FinancialStatements

7. The accompanying financial statements have been approved by the Company’s Boardof Directors. The Company’s Board of Directors is responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these 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 Ind AS specifiedunder section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; 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 financial statements that give a true and fair view and from material misstatementwhether due to fraud or error.

8. In preparing the financial statements management is responsible for assessing theCompany’s ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

9. Those Board of Directors is also responsible for overseeing the Company’sfinancial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

10. Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor’s report that includes our opinion. Reasonable assurance is ahigh level of assurance but is not a guarantee that an audit conducted in accordance withStandards on Auditing will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these . financial statements

11. As part of an audit in accordance with Standards on Auditing we exerciseprofessional judgment and maintain professional skepticism throughout the audit. we also:

Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control;

Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls;

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management;

Conclude on the appropriateness of management’s use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on theCompany’s ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor’s report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor’s report. However future events or conditions may cause theCompany to cease to continue as a going concern;

Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation;

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

13. we also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.

14. From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the financial statements ofthe current period and are therefore the key audit matters. we describe these matters inour auditor’s report unless law or regulation precludes public disclosure about thematter or 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

15. As required by section 197(16) of the Act based on our audit we report that theCompany has paid remuneration to its directors during the year in accordance with theprovisions of and limits laid down under section 197 read with Schedule V to the Act.

16. As required by the Companies (Auditor’s Report) Order 2016 (‘theOrder’) issued by the Central Government of India in terms of section 143(11) of theAct we give in the Annexure I a statement on the matters specified in paragraphs 3 and 4of the Order.

17. Further to our comments in Annexure I as required by section 143(3) of the Actbased on our audit we report to the extent applicable 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 of theaccompanying financial statements;

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 IndAS specified undersection 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 are disqualified as on 31 March2021 from being appointed as a director in terms of section 164(2) of the Act;

f) we have also audited the internal financial controls with reference to financialstatements of the Company as on 31 March 2021 in conjunction with our audit of thefinancial statements on that date and our report dated 27 May 2021 as per Annexure IIexpressed unmodified opinion; 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 as detailed in note 44 to the financial statements has disclosed theimpact of pending litigations on its financial position as at 31 March 2021;

ii. the Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses as at 31 March 2021;

iii. there has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the year ended 31 March2021; 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: 27th May 2021 Membership No.: 042423
UDIN No: 21042423AAAAEE1683

ANNEXURE I TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE

TO MEMBERS OF UNI-ABEX ALLOY PRODUCTS LTD. ON THE FINANCIAL STATEMENTS FOR THE YEARENDED 31 MARCH 2021.

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 property plant and equipment.

(b) All property plant and equipment have not been physically verified by themanagement during the year however there is a regular program of verification once inthree years which in our opinion is reasonable having regard to the size of the Companyand the nature of its assets. 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 except for goods-in-transit and stocks lying withthird parties. For stocks lying with third parties at the year-end written confirmationshave been obtained by the management. No material discrepancies were noticed on theaforesaid 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 Section 186 inrespect of investments. Further in our opinion the Company has not entered into anytransaction covered under Section 185 and Section 186 of the Act in respect of loansguarantees 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 ofthe opinion 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 valueadded tax cess and other material statutory dues as applicable have generally beenregularly deposited to the appropriate authorities though there has been a slight delayin a few cases. Further no undisputed amounts payable in respect thereof were outstandingat the year-end for a period 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 (` in lakhs) Amount paid under Protest (` in lakhs) Period to which the amount relates Forum where dispute is pending Remarks if any
Central sales tax Act 1956 Sales Tax 150.69 29.87 1997-98 1999-00 2001-02 2003-04 2011-12 2012-13 2013-14 Commissioner of Sales Tax (Appeals) -
Central sales tax Act 1956 Sales Tax 559.53 34.00 2004-05 2010-11 2014-15 2015-16 Deputy Commissioner of Sales Tax -
Central sales tax Act 1956 Sales Tax 4.22 - 2016-17 Assistant Commissioner of Central Excise -
Central Excise Act 1944 CENVAT Credit Disallowance 1.79 - Various years Deputy Commissioner of Central Excise -
Central Excise Act 1944 CENVAT Credit Disallowance 37.93 0.67 Various years Commissioner of Central Excise (Appeals) -
Central Excise Act 1944 CENVAT Credit Disallowance 27.39 5.57 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 loan 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 material fraud by the Company or on the Company by its officersor employees has been noticed or reported during the period covered by our audit.

(xi) Managerial remuneration has been paid and provided by the Company in accordancewith the requisite approvals mandated by the provisions of Section 197 of the Act readwith Schedule V to the Act.

(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: 27th May 2021 Membership No. 042423
UDIN: 21042423AAAAEE1683

ANNEXURE II TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE TO MEMBERS OF UNIABEX ALLOY PRODUCTS LTD. ON THE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31MARCH 2021 Annexure II

Independent Auditor’s Report on the internal financial controls with reference tothe financial statements under Clause (i) of Sub-section 3 of Section 143 of the CompaniesAct 2013 (‘the Act’)

1. In conjunction with our audit of the financial statements of Uni- Abex AlloyProducts Limited (‘the Company’) as at and for the year ended 31 March 2021 wehave audited the internal financial controls with reference to financial statements of theCompany as at that date.

Responsibilities of Management and Those Charged with Governance for Internal FinancialControls

2. The Company’s Board of Directors is responsible financial controls forestablishing and maintaining internal financial statements criteria established by theCompany based on the internal financial considering the essential components of internalcontrol stated in the Guidance Note on Audit of internal Financial Controls over FinancialReporting (‘the Guidance Note’) issued by the Institute of Chartered Accountantsof India (‘ICAI’). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of the Company’s business includingadherence to the 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 Act.

Auditor’s Responsibility for the Audit of the Internal Financial Controls withReference to Financial Statements

3. Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. we conducted our auditin accordance with the Standards on Auditing issued by the Institute of CharteredAccountants of India (‘ICAI’) prescribed under Section 143(10) of the Act tothe extent applicable to an audit of internal financial controls with reference tofinancial statements and the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (‘the Guidance Note’) issued by the ICAI. Those Standardsand the Guidance Note require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether adequate internal financialcontrols with reference to financial statements were established and maintained and ifsuch controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls with reference to financial statements and theiroperating effectiveness. Our audit of internal financial controls with reference tofinancial statements includes obtaining an understanding of such internal financialcontrols assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor’s judgement including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror.

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 internal financial controlswith reference to financial statements.

Meaning of Internal Financial Controls with Reference to Financial Statements

6. A company's internal financial controls with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlswith reference to financial statements include 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 authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls with Reference to FinancialStatements

7. Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to future periods are subject to the risk that theinternal financial controls with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

8. In our opinion the Company has in all material respects adequate internalfinancial controls with reference to financial statements and such controls were operatingeffectively as at 31 March 2021 based on the internal financial controls with referenceto financial statements criteria established by the Company considering the essentialcomponents of internal control 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: 27th May 2021 Membership No. 042423
UDIN: 21042423AAAAEE1683

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