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Universal Starch Chem Allied Ltd.

BSE: 524408 Sector: Others
NSE: N.A. ISIN Code: INE113E01015
BSE 00:00 | 23 Jul 68.85 2.30
(3.46%)
OPEN

69.80

HIGH

69.80

LOW

68.75

NSE 05:30 | 01 Jan Universal Starch Chem Allied Ltd
OPEN 69.80
PREVIOUS CLOSE 66.55
VOLUME 1051
52-Week high 69.80
52-Week low 17.00
P/E 116.69
Mkt Cap.(Rs cr) 29
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 69.80
CLOSE 66.55
VOLUME 1051
52-Week high 69.80
52-Week low 17.00
P/E 116.69
Mkt Cap.(Rs cr) 29
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Universal Starch Chem Allied Ltd. (UNIVERSALSTARCH) - Auditors Report

Company auditors report

To

The Members of

Universal Starch Chem Allied Limited Report on the Standalone Financial Statements

1. We have audited the accompanying financial statements of M/s. Universal Starch ChemAllied Limited ("the Company") which comprise the Balance Sheet as at March31st 2017 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

Management’s Responsibility for the Standalone 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 standalone financial statements to give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance 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 are free from materialmisstatement whether due to fraud or error.

Auditor’s Responsibility

3. Our responsibility is to express an opinion on these standalone financial statementsbased on our 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 and the rulesmade there under.

5. We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the 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 control relevant to the Company’s preparation ofthe financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of the accounting policies used and the reasonableness of theaccounting estimates made by the Company’s Directors as well as evaluating theoverall presentation of 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 the 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 of:

a. the state of affairs of the Company as at March 31st 2017

b. the Loss stated in the Statement of Profit and Loss and

c. the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

9. As required by 'the Companies (Auditor's Report) Order 2016’ issued by theCentral Government of India in terms of sub section (11) of section 143 of the Act(hereinafter referred to as "Order") and on the basis of such checks of thebooks and records of the Company as we considered appropriate and according to theinformation and explanation given to us we give in the Annexure A statement of thematters specified in paragraphs 3 and 4 of the Order.

10. 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 Statement of Profit and Loss and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account.

d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

e) On the basis of the written representations received from the directors as on March31st 2017 taken on record by the Board of Directors none of the directors isdisqualified as on March 31st 2017 from being appointed as a director in terms of Section164 (2) of the Act.

f) With respect to the adequacy of the financial controls over financial reporting ofthe Company and the operating effectiveness of such controls refer to our separate reportin Annexure B; 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 in our opinionand to the best of our knowledge and belief and according to the information andexplanations given to us:

i. The Company does not have any pending litigations which would impact its financialposition.

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

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company during the year ended March 31st 2017.

iv. The company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period 8th November 2016to 30th December2016 and these disclosures are in accordance with the books of accountsmaintained by the company.

For M B Agrawal & Co.
Chartered Accountants
FRN No: 100137W
Harshal Agrawal
Place: Mumbai Partner
Date: 29th May 2017 Membership No: 109438

Annexure-A to the Independent Auditors' Report

Referred to in Paragraph 9 of the Independent Auditors' Report of even date on thefinancial statement as of and for the year ended March 31st

2017.

1. In respect of Fixed Assets:

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

(b) As explained to us the Management of the Company has physically verified thesefixed assets at reasonable intervals and no material discrepancies were noticed on suchverification.

(c) The value of Land in the books of the company on the basis of historical costamounts to Rs. 4684785/- of the same title deeds of 3228.11 sq.mtr.(P.Y. 3228.11sq.mtr.) amounting to Rs.260375/-(P.Y. 260375/-) are not in the name of the Company.

2. In respect of Inventories:

The stock of Inventories of the Company has been physically verified the Management atreasonable intervals. The discrepancies noticed on such verification of the inventories ascompared to the book records were not material.

3. 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. Accordingly the sub-points of paragraph 3 (iii)of the Order are not applicable.

4. According to information and explanations provided to us the Company has compliedwith the provisions of Section 185 and 186 of the Companies Act 2013 in respect of loansinvestments guarantees and security.

5. According to information and explanations provided to us the company has notobtained deposit from public as defined according to the provisions of Section 73 to 76 ofthe Companies Act 2013 and the Rules framed there under.

6. According to information and explanations provided to us the Company has maintainedaccounts and cost records pursuant to the Companies (Cost Accounting Records) Rules 2011and as specified by the Central Government of India under Section 148(1) of the CompaniesAct 2013. We have however not carried out a detailed examination of the same.

7. In respect of Statutory Dues:

(a) According to information and explanations given to us and the records of theCompany examined by us in our opinion the Company is generally regular in depositing theundisputed statutory dues including provident fund employees' state insurance incometax sales tax service tax duty of customs duty of excise value added tax cess andany other statutory dues as applicable with appropriate authorities. According to theinformation and explanations given to us no undisputed amounts payable on account ofprovident fund employees' state insurance income tax sales tax service tax duty ofcustoms duty of excise value added tax cess and other statutory dues were in arrears asat March 31st. 2017 for a period of more than six months from the date they becamepayable.

(b) According to the information and explanations given to us and based on the recordsof the company examined by us there are no dues of income tax service tax cess andother statutory dues which have not been deposited on account of any disputes withrespective authorities.

8. In our opinion and according to the information and explanations given to us thecompany has not defaulted in repayment of loans or borrowings to financial institutionsbanks Government or dues to debenture holders.

9. The company has not raised any money via initial public offer or by way of furtherpublic offer and by way of term loans during the current financial year. The term loansoutstanding at the beginning of the year were applied for the purposes for which they wereraised.

10. According to the information and explanations given to us fraud on the company wasnoticed. Immovable Property of the Company measuring 82588.11 sq.mtrs. valuing at Rs.1586725/- (at historical cost) was fraudulently transferred in the personal name of someof the directors in the previous year. Out of the above property measuring 79300 sq.mtrs(P.Y. 79300 sq.mtrs.). was restored in the name of the Company. Apart from the above wehave neither come across any instance of material fraud on or by the Company by itsofficers or employees noticed or reported during the year nor have we been informed ofany such case by the Management.

11. The Company has paid and provided the Managerial Remuneration in accordance withthe provisions of Section 197 read with Schedule V of the Companies Act 2013.

12. In our opinion the company is not a Nidhi Company. Accordingly paragraph 3(xii)of the Order is not applicable.

13. According to the information and explanations provided to us and based on ourexamination of the records of the Company all transactions with the related parties arein compliance with Section 177 and 188 of Companies Act 2013 where applicable and thedetails have been disclosed in the Financial Statements as required by the applicableaccounting standards.

14. According to the information and explanations provided to us the company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year under review.

15. According to the information and explanations provided to us and based on ourexamination of the records of the Company the company has not entered into any non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

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

For M B Agrawal & Co.
Chartered Accountants
FRN No: 100137W
Harshal Agrawal
Place: Mumbai Partner
Date: 29th May 2017 Membership No: 109438

Annexure - B to the Independent Auditor's Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act") referred to in paragraph 2 (f) onReport on Other Legal and Regulatory Requirements of our report.

We have audited the internal financial controls over financial reporting of UNIVERSALSTARCH CHEM ALLIED LIMITED ("the Company") as of 31 March 2017 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat date.

Management’s Responsibility for Internal Financial Controls

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 ofadequate 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 Companies Act 2013.

Auditors’ 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 on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively 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 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.

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

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

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

In our opinion the Company has in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31 March 2017 based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For M B Agrawal & Co.
Chartered Accountants
FRN No: 100137W
Harshal Agrawal
Place: Mumbai Partner
Date: 29th May 2017 Membership No: 109438