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UNIROLL LEATHER INDIA LIMITED
ANNUAL REPORT 2009-2010
AUDITORS' REPORT
TO
THE MEMBERS OF
UNIROLL LEATHER INDIA LIMITED
We have audited the attached Balance Sheet of Uniroll Leather India Limited
as at 31st March, 2010 and also the Profit & Loss Account annexed thereto
and the Cash Flow Statement for the year ended on that date. These
financial statements are the responsibility of the Company's management.
Our responsibility is to express an opinion on these financial statements
based on our audit.
1. We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used
and significant estimates made by management as well as evaluating the
overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
2. As required by the Companies (Auditor's Report) Order, 2003 issued by
the Central Government of India in terms of sub-section (4A) of section 227
of the Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraph 4 and 5 of the said Order.
Further to our comments in the Annexure referred to paragraph 2 above, we
report that:
a) We have obtained all the information and explanations which to the best
of 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 the Company so far as appears from our examination of those books.
c) The Balance Sheet and Profit & Loss Account dealt with by this report
are in agreement with the books of account.
d) In our opinion, the Balance Sheet and Profit & Loss Account dealt with
by this report, comply with the Accounting Standards referred to in sub-
section (3C) of section 211 of the Companies Act, 1956 except Accounting
Standard 15 regarding retirement benefits of employees.
e) On the basis of information and explanations given to us and on the
basis of written representations received from the Directors and taken on
record by the Board of Directors, none of the Directors is disqualified as
on 31 st March, 2010 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to the
explanations given to us, the said accounts read together with Accounting
Policies and Notes thereon give the information required by the Companies
Act, 1956 in the manner so required and give a true and fair view in
conformity with accounting principles generally accepted in India:
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
(ii) In the case of Profit & Loss Account of the loss for the year ended on
that date;
(iii) In the case of Cash Flow Statement, of the cash flows, for the year
ended on that date.
For Mohan & Company
Chartered Accountants
(ICAI Regn. No. 000787C)
Place: Lucknow S. K. Mohan
Dated: 3rd July, 2010 Partner
(Membership No. 008853)
ANNEXURE TO THE AUDITOR'S REPORT OF UNIROLL LEATHER INDIA LIMITED
(Referred to in paragraph 2 of our Report of even date)
i) (a) The Company is maintaining proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) As informed, the fixed assets have been physically verified by the
management during the year. In our opinion, the frequency of verification
is reasonable having regard to the size of the Company and nature of its
fixed assets. No discrepancies were noticed on such verification.
(c) According to the information and explanations given to us, the Company
has not disposed off a major part of its fixed assets during the year,
thereby affecting the going concern status of the company.
ii) As the company has no inventory, the provision of Clause 4 (ii) of the
Companies (Auditor's Report) Order, 2003, regarding physical verification
of inventory are not applicable to the company
(iii) (a) According to information and explanations given to us, the
Company has not granted any loans, secured or unsecured, to companies,
firms or other parties covered in the Register maintained under section 301
of the Act.
(b) According to information and explanations given to us, the Company has
taken unsecured loans from four companies, firms or other parties covered
in the Register maintained under section 301 of the Act. The maximum amount
involved during the year was Rs. 323.63 lacs and the year end balance of
loans taken from said parties was Rs. 323.63 lacs.
(c) As informed, the unsecured loans taken from companies/ parties were
free of interest. In our opinion, the other terms and conditions on which
loans have been taken from companies/other parties listed in the register
maintained under section 301 of the Act are not, prima facie, prejudicial
to the interest of the company.
(d) According to information and explanations given to us, as the loans
taken by the company were payable on demand, the same were paid as and when
demanded and no amount of loan was overdue.
(iv) In our opinion and according to information and explanations given to
us, there are adequate internal control system commensurate with the size
of the Company and the nature of its business for the purchase of inventory
and fixed assets and also for the sale of goods and services. During the
course of audit, we have not observed any major weaknesses in internal
control system.
(v) According to information and explanations given to us, the company has
not made any transaction/arrangement that needs to the entered into a
register pursuance of section 301 of the Act.
(vi) As informed, the Company has not accepted any deposits from the public
during the year.
(vii) In our opinion, the Company has an internal audit system commensurate
with the size and nature of its business.
(viii) As informed, the maintenance of cost records has not been prescribed
by the Central Government under section 209 (1) (d) of the Companies Act,
1956.
(ix) a) As per records, the Company is regular in depositing undisputed
statutory dues including Provident Fund, Investor Education and Protection
Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and any other statutory dues with the
appropriate authorities and as informed no undisputed amounts were
outstanding as at 31st March, 2010 for a period of more than six months
from the date of becoming payable, b) According to information and
explanations given to us, there are no dues of Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty and Cess which have not
been deposited on account of any dispute.
(x) In our opinion and according to information and explanations given to
us, the accumulated losses of the company at the end for the financial year
are more than fifty percent of its net worth and it has incurred cash
losses during the financial year covered by our audit and in the
immediately preceding financial year.
(xi) In our opinion and according to information and explanations given to
us, as the company has not taken any loans from financial institution or
bank, therefore, the provisions of clause 4 (xi) of the Companies
(Auditor's Report) Order, 2003 regarding default in repayment of dues are
not applicable to the company.
(xii) According to information and explanations given to us, the company
has not granted loans and advances on the basis of security by way of
pledge of shares, debentures or other securities.
(xiii) The provisions of any special Statute applicable to Chit Fund, Nidhi
or Mutual Benefit Fund/Societies are not applicable to the company.
(xiv) In our opinion and according to information and explanations given to
us, the company is not dealing or trading in shares, securities, debentures
and other investments. Accordingly the provisions of clause 4 (xiv) of the
Companies (Auditor's Report) Order, 2003 are not applicable to the company.
(xv) According to the information and explanations given to us, the company
has not given any guarantee for the loans taken by others from bank or
financial institution.
(xvi) According to information and explanations given to us, the company
has not obtained any term loan during the year and there were no term loans
outstanding at the beginning of the year.
(xvii) According to information and explanations given to us and on an
overall examination of the Balance Sheet and Cash Flow Statement, we report
that funds raised on short term basis have, prima facie, not been used
during the year for long term investment.
(xviii) According to information and explanations given to us, the company
has not made any preferential allotment of shares to parties and companies
covered in the Register maintained under section 301 of the Act.
(xix) According to the information and explanations given to us, as the
company has not issued any debentures, therefore, the question of creation
of security or charge in respect of debentures issued is not applicable.
(xx) The Company has not raised any money by way of public issue during the
year.
(xxi) According to the information and explanations given to us, no fraud
on or by the company has been noticed or reported during the course of
audit.
For Mohan & Company
Chartered Accountants
(ICAI Regn. No. 000787C)
Place : Lucknow S. K. Mohan
Dated : 3rd July, 2010 Partner
(Membership No. 008853)
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