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Unimin India Ltd.

BSE: 530321 Sector: Industrials
NSE: UNIMIN ISIN Code: INE672C01014
BSE 00:00 | 03 Mar Unimin India Ltd
NSE 05:30 | 01 Jan Unimin India Ltd
OPEN 1.15
PREVIOUS CLOSE 1.15
VOLUME 20
52-Week high 1.15
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Mkt Cap.(Rs cr) 2
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1.15
CLOSE 1.15
VOLUME 20
52-Week high 1.15
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 2
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Unimin India Ltd. (UNIMIN) - Auditors Report

Company auditors report

To The Members of UNIMIN INDIA LIMITED Report on the Financial Statements

We have audited the accompanying financial statements ofUNIMIN INDIA LIMITED("the Company") which comprises the Balance Sheet as at March 312017 thestatement of Profit and Loss and Cash Flow statement for the year then ended and a summaryof significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformanceand cash flowsof the Company in accordance with the accounting principlesgenerally accepted in Indiaincluding the Accounting Standards specified under Section 133of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. This responsibilityalso includes the maintenance of adequate accounting records in accordance with theprovision of the Act for safeguarding of the assets of the Company and for preventing anddetecting the frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of internal financial control that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the financial statements that give a true and fairview and are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility Is to express an opinion on thesefinanclal statements based on ouraudit.

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 in accordance with the Standards on Auditing specified undersection 143(10) of the Actexcept with regard to the matters set out below in Basis ofQualified Opinion where we have not been able to perform audit in conformity withrelevant auditing standards in the absence of sufficient appropriate evidence. ThoseStandards require that we comply with ethical requirements and plan and perform the auditto obtain reasonable assurance about whether thefinancial statements are free frommaterial misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe financial statements.

We believe that the audit evidence we have obtained except with regard to the mattersset out below in Basis of Qualified Opinion is sufficient and appropriate to provide abasis for our qualified audit opinion on thefinancial statements.

Basis for Qualified Opinion

1. Company's networth is fully eroded due to accumulated losses. Company does not havemajor business operations or future business plan. Inspite of the same accounts of thecompany is prepared on-Going Concern basis.

2. The Company has not made provision for employee retirement benefits as requiredunder AS-15 - Employee Benefits. In absence of actuarial valuation report we are unableto comment upon consequential impact if any arising thereof on the Statement.

3. The Company has taken useful life and residual value of assets different from usefullife and residual value indicated in

Schedule II to the Companies Act 2013 without taking any technical advise. In absenceof sufficient appropriate details we are unable to comment upon consequential impact ifany arising thereof on the statement.

4. The Company had written off balance of a creditor amounting to Rs. 24.05 crores inearlier years. To that extent its reserve is overstated and liability is understated.

5. Balances of Trade Receivables Trade Payables and Loans and Advances are subject toconfirmation and consequent adjustments if any on reconciliation thereof.

6. The company has accepted deposits from the public. However the company has failedto comply with the provisions of section 74.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to US except for the possible effects which are not quantifiable of the mattersdescribed in the Basis for Qualified Opinion paragraph the aforesaid financial statementsgive the information required by the Act in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the company as at 31st March 2017 and its loss and its cash flows forthe year ended on that date:

Emphasis of Matter

1. We draw attention to Note No. 22.2 22.3 & 22.4 in Notes toAccountswhichdescribes that the company has received notices from Sales Tax as well as from Excisedepartment.These liabilities are disclosed under contingent liabilities.

Our opinion Is not modified in respect of these matters.

Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2017 ("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 theAnnexure "A" a statement on the mattersspecified in paragraphs 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 except for the possible effects of the matters described in theBasis for Qualified Opinion paragraph obtained all the Information and explanations whichto the best of our knowledge and belief were neces sary for the purposes of our audit.

b. except for the possible effects of the matters described in the Basis for QualifiedOpinion paragraph in our opinion proper books of account as required by law have beenkept by the Company so far as appears from our examination of those books.

c. the Balance Sheet the statement of Profit and Loss and Cash Flow statement dealtwith by this Report are in agreement with the books of account.

d. except for the possible effects of the matters described in the Basis of QualifiedOpinion paragraph in our opinion the aforesaid financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014 (as amended).

e. the matters described under the Basis for Qualified Opinion paragraph read furtherwith para iv and vii a of our report in Annexure "A" and para 6 of Annexure"B" attached hereto in our opinion may have an adverse effect on thefunctioning of the Company

f. on the basis of written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors Isdisqualified as on 31st March 2017 from being appointed as a director In terms ofSection 164(2) of the Act.

g. the qualification relating to the maintenance of accounts and other mattersconnected therewith are as stated in the Basis for Qualified Opinion paragraph above.

h. with respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls we give ourseparate Report in "Annexure B".

i. with respect to the other matters included in the Auditor's Report In accordancewith Rule 11 of the Companies (Audit ?Audito^s ) Rules2014 in our opinion and to ourbest of our information and according to the explanations given to us:

i. The company has disclosed the Impact of pending litigation on Its financial positionIn Note 22 to Its financial statement

ii. The company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. The Provision Relating to transferring any amount to investor's education andprotection fund is not applicable to the company during the year.

iv. The had provided requisite disclosure (Ref Note no. 36)in it financial statement asto holding as well as dealings in Specified Bank Notes during the period From 8th Novemberto 30th December 2016 and same are in accordance with the books of accounts maintained bythe company.

Sd/- For JayeshSanghrajka& Co. LLP

JayeshSanghrajka Chartered Accountants

Place: Mumbai Designated Partner Firm's Reg. No. 104184W/W100075

Date:31.05.2017 M. No. 037430

Annexure "A" to Independent Auditor's Report

The Annexure referred to in our report to the members of UNIMIN INDIA LIMITED ('TheCompany') for the year ended 31 St March

2017. We report that:

i. In respect of its Fixed Assets:

a. The Company has maintained records showing particulars including quantitativedetails and situation of fixed assets.

b. The fixed assets have been physically verified by the management during the year ina phased periodical manner which in our opinion is reasonable having regard to the sizeof the Company and nature of its assets. No material discrepancies were noticed on suchphysical verification.

c. According to the information and explanations given to US the title deeds ofimmovable properties recorded as fixed assets in the books of account are held in the nameof the company.

il. In respect on its inventories as informed to US inventories have been physicallyverified by the management at the year end.In our opinion and according to the informationand explanations given to US the procedures of physical verification of inventoryfollowed by the management are reasonable and adequate in relation to the size of theCompany and the nature of its business. As explained to us there was no materialdiscrepancies noticed on physical verification of inventory as compared to the bookrecords.

iii. In our opinion and according to the information and explanations given to UStheCompany has granted unsecured loansto three parties covered in the register maintainedunder section 189 of the Act.

a. As per the information and explanation give to US in our opinion terms andconditions of these loans are not prejudicial to the interest of the company.

b. As per the information and explanation given to US there is no repayment schedulefor these loans. Therefore we cannot comment on regularity of receipt of principal andinterest amount.

c. In absence of repayment schedule we cannot comment whether there is overdue amountfor more than ninety days.

iv. In our opinion and according to the information and explanations given to US thecompany has granted loans to parties covered under section 185 and has not complied withthe provisions contained therein. The company has not granted any loan or made investmentsor given guarantees and securityunder 186 of the Companies Act 2013.

V. According to information and explanations give to US the company has accepteddeposits from the public. However the company has failed to comply with the provisions ofsection 74 to repay the deposits in prescribed time. No order has been passed by CompanyLaw Board or National Company Law Tribunal or Reserve Bank of India or any court or anyother tribunal.

vi. In our opinion the maintenance of cost records is not prescribed by the CentralGovernment of India under Section 148(1) of the companies Act in case of the Company.Therefore the provisions of Clause viof paragraph 3 of the Order are not applicable tothe Company.

vii. In respect of statutory dues

a. According to the books and records as produced and examined by US in accordance withgenerally accepted auditing practices In India and also based on Managementrepresentations undisputed statutory dues In respect of Provident Fund Employees' stateInsurance dues Income Tax Sales Tax Service Tax and other material statutory dues havegenerally been regularly deposited by the Company during the year with the appropriateauthorities with the exception of Fringe Benefit Tax of Rs. 1024846/-.These dues areoutstanding for a period of more than six months.

b. As at March 31 2017 following disputed dues have not been paid:

Nature Amount in Lakhs Forum
Excise Dues 663.36 Commissioner Central Excise Custom & Service Tax Daman
Sales Tax 597.90 Deputy Commissioner/ Joint Commissioner (Appeal) Daman

viii According to the information and explanation given to us the company has neithertaken any loan from any financial institution or Bank nor has issued debentures. Henceprovisions of clause No. viii of paragraph 3 of the Order are not applicable to theCompany.

ix. According to information & explanation given to US the company has neitherraised moneys by way of initial public offering nor by way of further public offering. Ithas also not taken any term loan. Hence provisions of clause No. ix of the paragraph 3 ofthe Order are not applicable to the Company.

X. To the best of our knowledge and according to the information and explanations givento us no material fraud by or on the Company has been noticed or reported during theyear.

xi. As per the information and explanations given to US the company has not paid anymanagerial remuneration. Hence provisions of clause No. xi of the paragraph 3 of the Orderare not applicable to the Company.

xii. As per the information and explanations given to US the company is not a Nidhicompany. Hence provisions of clause No. xii of the paragraph 3 of the Order are notapplicable to the Company.

xlii. As per information and explanations given to US there are no transactionscovered under section 177 & 188 of the Act with related parties. Hence provisions ofclause No. xiii of the paragraph 3 of the Order are not applicable to the Company.

xiv. As per information and explanations given to US the company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review. Hence provisions of clause No. xiv of theparagraph 3 of the Order are not applicable to the Company.

XV. According to the information and explanation given to US the company has notentered into any non-cash transactions with directors or persons connected with him duringthe year.

xvi. According to the information and explanation given to US the company Is notrequired to be registered under section 45- IA of the Reserve Bank of India Act 1934.

Sd/- For JayeshSanghrajka8i Co. LLP

JayeshSanghrajka Chartered Accountants

Place: Mumbai Designated Partner Firm's Reg. No. 104184W/W100075

Date:31.05.2017 M. No. 037430

Annexure "B" to the Independent Auditor's report of even date on thefinancial statements of M/s.UNIMIN INDIA LIMITED.

To The Members of UNIMIN INDIA LIMITED

Report on the Internal Financial Controls under Clause (I) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

1. We were engaged to audit the internal financial controls over financial reporting ofUNIMIN INDIA LIMITEDfthe Company") as of March 31 2017 in conjunction with our auditof the financial statements of the Company for the year ended on that date.

2. Management's Responsibility for the Financial Statements

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.

3. 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 accordancewith the Guidance Note and the Standards on Auditing issued by the ICAI and deemed to beprescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of internal financial controlsand both Issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirement and plan and perform theaudit to obtain reasonable assurance about whether adequate Internal financial controlsover financial reporting 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 the Internal controls based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the standalone Financial Statements whether due tofraud or error.

4. 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 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.

5. Inherent Limitation of Internal Financial Controls over Financial Reporting

Because of the Inherent limitation of Internal financial controls over financialreporting including the possibility of collision 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 controlsover financial reporting's may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedure may deteriorate.

6. Opinion

In our opinion and to the best of our information and according to the explanationsgiven to US the system of internal financial controls over financial reporting withregard to the Company were not made available to us to enable us to determine If theCompany has established adequate Internal financial control over financial reporting andwhether such Internal financial controls were operating effectively as at March 31 2017.

Sd7- For JayeshSanghrajka& Co. LLP

JayeshSanghrajka Chartered Accountants

Place: Mumbai Designated Partner Firm's Reg. No. 104184W/W100075

Date:31.05.2017

M. No. 037430