You are here » Home » Companies » Company Overview » Uniworth International Ltd

Uniworth International Ltd.

BSE: 514282 Sector: Others
NSE: UNIWORTINT ISIN Code: INE760D01015
BSE 05:30 | 01 Jan Uniworth International Ltd
NSE 05:30 | 01 Jan Uniworth International Ltd

Uniworth International Ltd. (UNIWORTINT) - Auditors Report

Company auditors report

To the members of uniworth internationall imited

Report on the financial statements

We have audited the accompanying standalone financial statements of uniworthinternational limited ("the company") which comprise the balance sheet asat 31st March 2017 the statement of profit and loss the cash flow statement and asummaryofthesignificantaccounting policies and other explanatory information for the yearthen ended.

Management's responsibility for the financial statements

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 that 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 the assets of the companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgements 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

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the act and the rules made there under.

We conducted our audit in accordance with the standards on auditing specified undersection 143(10) of the act. Those standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe standalone financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone financial statements. The procedures selected depend onthe auditor's judgement including 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 of thestandalone financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the company has in place financialcontrol systemover financial reporting adequate internal and the operating effectiveness of suchcontrols. An audit also includes evaluating the appropriateness of the accounting policiesused and the reasonableness of the accounting estimates made by the company's directorsas well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our qualified audit opinion on the standalone financial statements.

Basis for qualified opinion a) footnote to note no.14 regarding interest provisionon borrowing from some of the institutions and banks made in the accounts under simpleinterest method at the prevailing/estimated rates applicable on such loans in absence ofrelevant documents/confirmations the impact of which cannot be ascertained as well as thenote therein regarding the matter of dispute between the company and the bankers/creditorsin connection with charging of interest payment and payment of principal b) note no. 9(v)regarding foreign exchange gain amounting rs.1866.29 lacs arising out of export bills havenot been considered in accounts due to uncertainty in realization. C) note no. 9(i)(iii)& (iv) regarding overdue export bills amounting to rs. 2711.29 lacs outstanding forlong which in our opinion are doubtful of recovery against which no provision has beenmade in the financial statement. D) note no.11(i) & (iii) regarding claim receivableamounting to rs. 57.21 lacs due from various banks outstanding for long and miscellaneousadvance includes rs.565.01 lacs receivable from the companies which in our opinion aredoubtful of recovery against which no provision has been made in the financial statements.E) however had our observation made in para no (a) (b) (c) & (d) above beingconsidered the loss after tax for the year would have been rs.1544.94 lacs (as against thereported loss figure lacs) and loans advances and deposits would have been rs.231.48 lacs(as against reported figure of rs.288.69 lacs) sundry debtors would have been rs. 2165.57lacs (as against reported figure of rs 3010.57 lacs ) accumulated losses would have beenrs.12528.86 lacs (as against reported figure of rs 11626.65 lacs)

Qualified opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the like effects of the matters described in the basis forqualified opinion 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 2017 and its loss and its cash flows for the yearended on that date.

Emphasis of matters

We draw your attention to the following matters in the notes to the standalonefinancial statements:

Following notes to the standalone financial statements describe the uncertainty relatedto the outcome of the lawsuits /other legal matters and matters under settlementsindicated therein: a) note no. 18 regarding presentation of the accounts on the basisapplicable to "going concern" although the company's net worth has been fullyeroded due to accumulated losses including the loss for the year for the reason asstated in the note. In the event the going concern assumption is vitiated; the financialstatements may require necessary adjustment. B) note no. 5(iii) regarding non receipt ofconfirmation in respect of bank borrowings due to restructuring in progress book balanceshave been relied upon. C) note no. 4 regarding estimated amount of rs. 804.00 lacs beingprovided during the financial year 2002-03 as sales claims & commissions relating toearlier years from overseas customers of the company which is pending for finalsettlement. The necessary adjustments for such claims & commission will be made afterfinal settlement and obtaining necessary approval from the concerned regulatoryauthorities in absence of which we are unable to express our opinion on such adjustment.D) note no.7 regarding investment which includes of rs 5.12 lacs in a company which havebecome sick.

No provision has been considered necessary by management at this stage.

our opinion is not modified in respect of these matters.

Report on other legal and regulatory requirements i) as required by the companies(auditor's report) order 2015 issued by the central government in terms of sub-section(11) of section 143 of the act we enclose in the annexure a a statement on thematters specified in the said order to the extent applicable to the company. Ii) asrequired by section 143(3) of the act we report that a) we have sought and except forthe matters described in the basisforqualifiedopinion paragraph obtained all theinformation and explanations which to the best of our knowledge and belief were necessaryfor the purpose of our audit; b) except for the possible effects of the matters describedin the basis for qualified opinion paragraph above in our opinion proper books of accountas required by law have been kept by the company so far as appears from our examination ofthose books. C) the standalone balance sheet statement of profit and loss and cash flowstatement dealt with by this report are in agreement with the books of account; d) exceptfor the possible effects of the matters described in the basis for qualified opinionparagraph in our opinion the standalone balance sheet statement of profit and loss andcash flow statement comply with the accounting standards specified under section 133 ofthe act read with

Rule 7 of the companies(accounts) rules 2014; e) the matters described in the basisfor qualified opinion paragraph above in our opinion may have an adverse effect on thefunctioning of the company; f) the matters described in sub-paragraph (1) under theemphasis of matters paragraph above in our opinion may have an adverse effect on thefunctioning of the company; g) on the basis of written representations received from thedirectors as on 31st March 2017 taken on record by the board of directors none of thedirector is disqualified as on 31st March 2017 from being appointed as a director interms of section 164(2) of the act. H) with respect to the adequacy of the internalfinancial controls over financial reporting of the company and the operating effectivenessof such controls refer to our separate report in

Annexure – b. I) with respect to the other matters to be included in theauditor's report in accordance with rule 11 of the companies (audit and auditors) rules2014 in our opinion and to the best of our information and according to the explanationsgiven to us: i. There is no pending litigations and impact thereof in the financialposition of the company. Ii. The company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable loss iii. The companyis not required to transfer any amount in investor education and protection fund.

For s. S. Kothari & co.
Chartered accountants
Firm registration. No. 302034e
(ca p. K. Bhattacharya)
Place: kolkata Partner
Date: 30th may 2017. Membership no. 015899

Annexure - a to the auditors report the annexure referred to in our report to themembers of uniworth international limited for the year ended 31st March 2017.

We report that:

(i) (a) Whether the company is maintaining proper (i) Records showing full particulars including Quantitative details and situation of fixed Assets; (a) There Is No Fixed Assets Lying With Company. Hence clause is not applicable To the company.
(b) Whether these fixed assets have been Physically verified by the management at Reasonable intervals; whether any material Discrepancies were noticed on such Verification and if so whether the same Have been properly dealt with in the books Of account; (b) There Is No Fixed Assets Lying With Company. Hence clause is not applicable To the company.
(c) Whether the title deeds of immovable Properties are held in the name of the Company. If not provide the details Thereof; (ii) Whether physical verification of inventory has(ii) Been conducted at reasonable intervals by the Management; (c) There Is No Fixed Assets Lying With Company. Hence clause is not applicable To the company
There is no inventory lying with company. Hence Clause is not applicable to the company.
(iii) Whether the company has granted any loans (iii) Secured or unsecured to companies firms Limited liability partnerships or other parties or other firm Party covered Covered in the register maintained under section 189 of the companies act 2013. If so The company has not granted any loan secured Or unsecured during the year to any company
In the Register Maintained under section 189 of the companies Act 2013.
(a) Whether the terms and conditions of the Grant of such loans are not prejudicial to the Company's interest; In this regard we have relied upon the entries Recorded in the register maintained under Section 189 of the act.
(b) Whether the schedule of repayment of Principal and payment of interest has been Stipulated and whether the repayments or Receipts are regular;
(c) If the amount is overdue state the total Amount overdue for more than ninety days And whether reasonable steps have been Taken by the company for recovery of the Principal and interest;
(iv) In Respect of loans investments guarantees (iv) And security whether provisions of section 185 And 186 of the companies act 2013 have been Complied with. If not provide the details thereof. In our opinion and according to the information And explanations given to us the company has Complied with The provisions of sections 185 And 186 of The act with regard to Loans And Investments made.
(v) In case the company has accepted deposits (v) Whether the directives issued by the reserve Bank of india and the provisions of sections 73 to 76 or any other relevant provisions of the Companies act and the rules framed there under Where applicable have been complied with? The Company has not accepted any deposit From The Public within The Meaning of Sections 73 to 76 or any other relevant provisions of the Companies act 2013.
If not the nature of contraventions should be Stated; if an order has been passed by company Law board or national company law tribunal or Reserve bank of india or any court or any other Tribunal whether the same has been complied With or not?
(vi) Where maintenance of cost records has been (vi) Specified by the central government under sub- Section (1) of section 148 of the companies act Whether such accounts and records have been Made and maintained. The company is not required to maintain proper Cost Records as prescribed by the company Pursuant To the rules made by the Central Government for the maintenance of cost records Under sub-section (1) of Section 148 of The Companies act 2013.
(vii) (a) whether the company is regular in (vii) Depositing undisputed statutory dues Including provident fund employees' state Insurance income-tax sales-tax service Tax duty of customs duty of excise value Added tax cess and any other statutory Dues to the appropriate authorities and if Not the extent of the arrears of outstanding Statutory dues as on the last day of the Financial year concerned for a period of More than six months from the date they Became payable shall be indicated; (a) According to the records of the company This Clause Is Not Applicable To The Company.
(b) where dues of income tax or sales tax or Service tax or duty of customs or duty of Excise or value added tax have not been Deposited on account of any dispute then The amounts involved and the forum where Dispute is pending shall be mentioned. (a mere representation to the concerned Department shall not be treated as a Dispute) (b) According to the records of the company this Clause is not applicable to the company
(viii) Whether the company has defaulted in repayment (viii) Of loans or borrowing to a financial institution Bank government or dues to debenture holders? If yes the period and the amount of default to be Reported (in case of defaults to banks financial Institutions and government lender wise details To be provided). Certain banks and financial institution have Taken legal recourse for recovery of their dues From the company.
(ix) Whether moneys raised by way of initial public (ix) Offer or further public offer (including debt Instruments) and term loans were applied for The purposes for which those are raised. If Not the details together with delays or default And subsequent rectification if any as may be Applicable be reported; The company did not raise any money by way of Initial public offer of further public offer (including Debt instruments) during the year. According to The information and explanations given to us The term loan raised during the year had been Applied for the purposes for which the same was Raised.
(x) Whether any fraud by the company or any fraud (x) On the company by its officers or employees Has been noticed or reported during the year; if Yes the nature and the amount involved is to be Indicated Based upon the audit procedure performed and The information and explanation given by the Company we report that no fraud on or by the Company has been noticed or reported during The year that causes the financial statements Materially misstated.
(xi) Whether managerial remuneration has been (xi) Paid or provided in accordance with the requisite Approvals mandated by the provisions of section 197 read with schedule v to the companies Act? If not state the amount involved and steps Taken by the company for securing refund of the Same; According to the records of the company this Clause is not applicable to the company
(xii) Whether the nidhi company has complied with (xii) The net owned funds to deposits in the ratio Of 1: 20 to meet out the liability and whether The nidhi company is maintaining ten per cent In our opinion and according to the information And explanations given to us the company is Not a nidhi company. Accordingly paragraph 3(xii) of the order is not applicable.
Unencumbered term deposits as specified in the Nidhi rules 2014 to meet out the liability; (xiii) Whether all transactions with the related parties (xiii) Are in compliance with sections 177 and 188 Of companies act 2013 where applicable and The details have been disclosed in the financial Statements etc. as required by the applicable Accounting standards; According to the records of the company this Clause is not applicable to the company
(xiv) Whether the company has made any preferential (xiv) Allotment or private placement of shares or fully Or partly convertible debentures during the Year under review and if so as to whether the Requirement of section 42 of the companies act 2013 have been complied with and the amount According to the information and explanations Given to us and based on our examination of The records of the company the company has Not made any preferential allotment or private Placement of shares or fully or partly convertible Debentures during the year
Raised have been used for the purposes for which The funds were raised. If not provide the details In respect of the amount involved and nature of Non-compliance (xv) Whether the company has entered into any (xv) According to the information and explanations
Non-cash transactions with directors or persons Connected with him and if so whether the Provisions of section 192 of companies act 2013 have been complied with; Given to us and based on our examination of the Records of the company the company has not Entered into non-cash transactions with directors Or persons connected with him. Accordingly Paragraph 3(xv) of the order is not applicable
(xvi) Whether the company is required to be registered (xvi) Under section 45-ia of the reserve bank of india Act 1934 and if so whether the registration has Been obtained. The company is not required to be registered Under section 45-ia of the reserve bank of India act 1934.

 

For s. S. Kothari & co.
Chartered accountants
Firm registration. No. 302034e
(ca p. K. Bhattacharya)
Place: kolkata Partner
Date: 30th may 2017. Membership no. 015899

Annexure - b to the auditors' report

Report on the internal financial controls under clause (i) of sub-section 3 of section143 of the companies act 2013 ("the act")

We have audited the internal financial controls over financial reporting of uniworthinternational limited ("the company") as of 31st March 2017 in conjunction withour audit of the standalone financial

Statements of the company for the year ended on that 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

Reporting issued by the institute of chartered accountants of india (‘icai').These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required 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 thestandards on auditing issued by

Icai and deemed to be prescribed under section 143(10) of the companies act 2013 tothe extent applicable to an audit of internal financial controls both applicable to anaudit of internal financial controls and both issued by the institute of charteredaccountants of india. 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.

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 reporting . Financial

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 andcompany; (2) provide reasonable assurance that transactions are recorded as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the company's assets that could have a material effecton the financial statements.

Inherent limitations of internal financial controls over financial reporting

Because of the inherent limitationsofinternal financialreporting including thepossibility controlsover of collusion or improper management override of controlsmaterial misstatements due to error or fraud may occur and not be detected. Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate. Opinion

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 31st March 2017 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. S. Kothari & co.
Chartered accountants
Firm registration. No. 302034e
(ca p. K. Bhattacharya)
Place: kolkata Partner
Date: 30th may 2017. Membership no. 015899