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Unitech International Ltd.

BSE: 531867 Sector: Others
NSE: N.A. ISIN Code: INE929K01011
BSE 14:51 | 23 May 5.99 -0.31
(-4.92%)
OPEN

6.30

HIGH

6.30

LOW

5.99

NSE 05:30 | 01 Jan Unitech International Ltd
OPEN 6.30
PREVIOUS CLOSE 6.30
VOLUME 119
52-Week high 12.49
52-Week low 3.69
P/E 1.70
Mkt Cap.(Rs cr) 6
Buy Price 6.30
Buy Qty 150.00
Sell Price 5.99
Sell Qty 81.00
OPEN 6.30
CLOSE 6.30
VOLUME 119
52-Week high 12.49
52-Week low 3.69
P/E 1.70
Mkt Cap.(Rs cr) 6
Buy Price 6.30
Buy Qty 150.00
Sell Price 5.99
Sell Qty 81.00

Unitech International Ltd. (UNITECHINTERNAT) - Auditors Report

Company auditors report

to the Members of Unitech International Limited

Report on the Indian Accounting Standards (Ind AS) Financial Statements

We have audited the accompanying financial statements of Unitech International Limited("the Company") which comprise the Balance Sheet as at March 31 2021 theStatement of Profit and Loss and the Cash Flow Statement for the year ended and a summaryof the significant accounting policies and other explanatory information.

Management's Responsibility for the Ind AS Financial Statements

The Company's Board of Directors are responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese Ind AS financial statements to give a true and fair view of the financial positionfinancial performance and cash flows in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards specified in theCompanies (Indian Accounting Standards) Rules 2015 (as amended) under Section 133 of theAct. 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 Ind AS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS Financial statements basedon our audit.

We have taken into account the provisions of the Act and the Rules made there underincluding the accounting and auditing standards and matters which are required to beincluded in the audit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit of the Ind AS financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act and other applicableauthoritative pronouncements issued by the Institute of Chartered Accountants of India.Those Standards and pronouncements require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the Ind ASfinancial statements are free from material misstatement. An audit involves performingprocedures to obtain audit evidence about the amounts and the disclosures in the Ind ASfinancial statements. The procedures selected depend on the auditors' judgment includingthe assessment of the risks of material mis-statement of the Ind AS financial statementswhether due to fraud or error. In making those risk assessments the auditor considersinternal financial control relevant to the Company's preparation of the Ind AS financialstatements that give a true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofthe accounting policies used and the reasonableness of the accounting estimates made bythe Company's Directors as well as evaluating the overall presentation of the 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 Ind AS financial statements.

Basis for Qualified Opinion

There has been a change in the method valuation of Inventory by the Company. TheCompany's inventories are carried in the Balance Sheet at Rs. 167118438/- (As at 31stMarch 2021). The Management has changed the valuation from Weighted Average Method to Cost/ FIFO and has stated inventory at cost which constitutes a change of accounting policyfor valuation of inventory as per the Accounting Standard – 8 "Accountingpolicies Changes in Accounting Estimates and Errors". The Company's records indicatethat had the Management stated the inventories at the Weighted Average Cost an amount ofRs. 41316019/- (Weighted Average Inventory As at 31st March 21: Rs. 208434457/-)would be required to be written down in future to value inventories at their netrealisable value. The impact of valuation as per Weighted Average Method has led toprofits been overstated in the previous years. It is the responsibility of the managementto disclose the material effect of such change in current year as well as in futureperiods.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis for QualifiedOpinion paragraph above the aforesaid standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2021 and its profit/loss and its cash flows forthe year ended on that date.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of sub-section (11) of Section 143 of the Act ("theOrder") and on the basis of such checks of the books and records of the Company aswe considered appropriate and according to the information and explanations given to uswe give in the Annexure A a statement on the matters specified in paragraphs 3 and 4 ofthe Order.

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 and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

(d)In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act.

(e)On the basis of the written representations received from the directors as on March31 2021 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2021 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 with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in Annexure B.

(g)With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our knowledge and belief and according to the information andexplanations given to us: i) The Company has disclosed that there is no impact if any ofpending litigations as at March 31 2021 on its financial position.

ii) The Company does not have any long-term contracts as at March 31 2021 for whichthere were no material foreseen losses. iii) The company has not declared any dividend andhence the company i s n o t l i a b l e t o transfer any amount required to betransferred to the Investor Education and Protection Fund by the Company during the yearended March 31 2021.

For S. R. Dhariwal and Co
Chartered Accountants
FRNumber: 102466W
SD/-
Place: Mumbai Niral K Saboo
Dated: 30th June 2021 Proprietor
M. No. 158054
UDIN: 21158054AAAADE6847

Annexure A to the Independent Auditors' Report

(a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets. The commercial manufacturing in thecompany had commenced on 01st April 2019.

(b) The fixed assets are physically verified by the Management according to a phasedprogramme designed to cover all the items over a period of two years which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. Pursuant to the programme a portion of the fixed assets has been physicallyverified by the Management during the year and no material discrepancies have been noticedon such verification.

(c) i. The title deeds of immovable properties in fixed assets to the financialstatements are held in the name of the Company.

ii. The physical verification of inventory (excluding stocks with third parties) has no t been conducted at reasonable intervals by the Management during the year. In respectof inventory lying with third parties these have substantially been confirmed by them. Asno physical verification of stock has been performed it is not known the extent of thediscrepancies and therefore the effect has not been given in the financial accounts of thecompany. In our opinion the nature of material as dealt by the company contains variousforeign ingredients and are very likely to weight loss of the material.

iii. The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained underSection 189 of the Companies Act 2013 ("the Act"). Therefore the provisions ofClause 3(iii) (iii)(a) (iii)(b) and (iii)(c) of the said Order are not applicable to theCompany.

iv. The Company has not granted any loans or made any investments or provided anyguarantees or security to the parties covered under Section 185 and 186. Therefore theprovisions of Clause 3(iv) of the said Order are not applicable to the Company.

v. The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable..

vi. Pursuant to the rules made by the Central Government of India the Company is notrequired to maintain cost records as specified under Section 148(1) of the Act in respectof its products. We have broadly reviewed the same and are of the opinion that primafacie the prescribed accounts and records have been made and maintained. We have nothowever made a detailed examination of the records with a view to determine whether theyare accurate or complete.

vii. (a) According to the information and explanations given to us and the records ofthe Company examined by us (subject to our notes to the account) in our opinion theCompany is generally regular in depositing undisputed statutory dues in respect of incometax value added tax and profession tax customs duty cess goods and service tax witheffect from July 1 2017 and other material statutory dues as applicable with theappropriate authorities though there has been delay in a few cases.

(b) According to the information and explanation given to us there are no dues ofincome tax service tax duty of customs duty of excise value added tax outstanding onaccount of any dispute. However according to the information and explanations given tous the following dues of Value added tax and Central Sales Tax have not been deposited bythe company on account of disputes:

Name of the Statute Nature of Dues Amount in Rs. Period to which the amount relates Forum where dispute is pending
MVAT Act2002 Sales Tax and Interest (CST) 11176306/- 2012-2013 Joint Commissioner Appeals
MVAT Act2002 Sales Tax and Interest (CST) 770255/- 2014-2015 Joint Commissioner Appeals

viii. According to the records of the Company examined by us and the information andexplanation given to us the Company has not defaulted in repayment of loans or borrowingsto any financial institution or bank or Government. The banker of the company hasconverted a part of its Overdraft facilities to Term Loan facilities. Out of the totalOverdraft facilities of Rs.21.45 crore and amount of Rs. 11.45 crore is converted to TermLoan by the bank. As the Company has not issued any debentures as at Balance Sheet datethe provisions of Clause 3(viii) of the Order to that extent are not applicable to theCompany.

ix. In our opinion and according to the information and explanations given to us theBank loans has been applied for the purposes for which it was obtained as the Company hasnot raised any moneys by way of initial public offer and further public offer (includingdebt instruments) the provisions of Clause 3(ix) of the Order to that extent are notapplicable to the Company.

x. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by theManagement.

xi. T h e Company has paid/ provided for managerial remuneration in accordance with therequisite mandated by the provisions of Section 197 read with Schedule V to the Act. xii.As the Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicable to itthe provisions of Clause 3(xii) of the Order are not applicable to the Company.

xiii. The Company has entered into transactions with related parties in compliance withthe provisions of Sections 177 and 188 of the Act. Hence the details of such relatedparty transactions have been disclosed in the Ind AS financial statements as requiredunder Indian Accounting Standard (AS) 24 Related Party Disclosures specified underSection 133 of the Act.

xiv. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review. Accordingly theprovisions of Clause 3(xiv) of the Order are not applicable to the Company.

xv. The Company has not entered into any non cash transactions with its directors orpersons connected with him. Accordingly the provisions of Clause 3(xv) of the Order arenot applicable to the Company.

xvi. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of Clause 3(xvi) of the Order are notapplicable to the Company.

For S. R. Dhariwal and Co
Chartered Accountants
FRNumber: 102466W
SD/-
Place: Mumbai Niral K Saboo
Dated: 30th June 2021 Proprietor
M. No. 158054
UDIN: 21158054AAAADE6847

Annexure B to the Independent Auditors' Report

Referred to in paragraph 10(f) of the Independent Auditors' Report of even date to themembers of Unitech International Limited on the Ind AS financial statements for the yearended March 31 2021.

Report on the Internal Financial Controls under Clause (i) of Sub section 3 of Section143 of the Act

1. We have audited the internal financial controls over financial reporting of UnitechInternational Limited ("the Company") as of March 31 2021 in connection withour audit of the Ind AS financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

2. 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 (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

Auditors' Responsibility

3. 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 deemed to be prescribedunder Section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the 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 judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to 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 internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

6.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.

Inherent Limitations of Internal Financial Controls over Financial Reporting

7.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

8.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 2021 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 S. R. Dhariwal and Co
Chartered Accountants
FRNumber: 102466W
SD/-
Place: Mumbai Niral K Saboo
Dated: 30th June 2021 Proprietor
M. No. 158054

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