The Members of
M/S Uniply Industries Limited
Report on the Financial Statements
We have audited the accompanying financial statements of M/s. Uniply Industries Limited ("the company"), which comprise the Balance Sheet as at 31st March,2016,the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the 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 stated in Section 134(5) of the Companies Act,2013("the Act") with respect to the preparation and of these financial statement that give a true and fair view of the financial position, financial performance and cash flows of the company in accordance with the accounting principle generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies(Accounts)Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatements, whether due to fraud or error.
Our responsibility is to express an opinion on this financial statement based on our audit.We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statement, whether due to fraud or error. In making those risk assessment, the auditor considers internal financial control relevant to the Company's preparation of the financial statements that give true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company's Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2016;
(b) In the case of the Statement of Profit and Loss, of the profit of the Company for the year ended on that date, and
(c) In the case of cash flow statement, of the cash flows for the year ended on that date
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2016 ("the Order) issued by the Central Government of India in terms of sub-section(ll) of section 143 of the Act, we give in the Annexure B a statement on the matters specified in the paragraph 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 obtained all the information and explanation which to the best of our knowledge and belief were necessary for the purposes of our audit.
b. In our opinion, proper books of accounts as required by law have been kept by the Company 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 Statement dealt with by this Report are in agreement with books of account.
d. In our opinion, the aforesaid financial statements comply with the Accounting Standards 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 31st March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms of Section 164(2) of the Act.
f. With respect to the adequacy of the internal financial controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate report in Annexure A; and
g. With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules,2014, in our opinion and to the best of our information and according to the explanation given to us:
i. The company does not have any pending litigation which would impact its financial position.
ii. The company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred to the Investor Education and Protection Fund by the Company.
For C.Ramasamy & B.Srinivasan
M No: 023714
Annexure A to the Independent Auditors' Report
(Referred to in paragraph 1(f) under "Report on other legal and regulatory requirements" section of our report of even date)
Report on the Internal Financial Controls under clause (i) of subsection 3of Section 143 of the Companies Act, 2013 ('the Act')
We have audited the internal financial controls over financial reporting M/s. Uniply Industries Limited ('the Company') as of 31 March 2016 in conjunction with our audit of the financial statements of the company for the year ended as on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in 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 adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the Company's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the 'Guidance Note') and the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting were established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depends on the auditors' judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company's internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Company's internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of the Management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company'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 financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
In our opinion, to the best of our information and explanation given to us, the company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For C.Ramasamy & B.Srinivasan
M No: 023714
Annexure B to the Independent Auditor's Report referred to in paragraph 1 under the heading "report on other legal and regulatory requirements" of our report of even date
The Annexure referred to in our Independent Auditor's Report to the members of M/s. UnipLy Industries Limited for the year ended on 31.03.2016. We report that:
i. (a) The company has maintained proper records showing fuLL particuLars, incLuding quantitative detaiLs and situation of fixed assets.
(b) These fixed assets have been physically verified by the management at reasonable intervals and no material discrepancies were noticed on such verification and the same have been properLy deaLt with in the books of account.
(c) The titLe deeds of immovabLe properties are heLd in the name of the company.
ii. The Management has conducted physicaL verification of inventory at reasonabLe intervaLs and no materiaL discrepancies were noticed.
iii. As informed to us, the company has not granted any Loans, secured or unsecured to companies, firms, Limited LiabiLity Partnership or other parties covered in the register maintained under section 189 of the Companies Act. Hence clause (a) (b)& (c) are not appLicabLe.
iv. In respect of Loan, Investments, Guarantees & Security the provision of Section 185 & 186 of the Companies Act 2013 have been compiLed with.
v. The company has not accepted any deposits.
vi. Maintenance of cost records has not been specified by the Central Government under sub - section (1) of section 148 of the Companies Act., for the company.
vii. (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, there is some deLay by company in 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 with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts payabLe in respect of the above were in arrears as at 31st March 2016 for a period of more than six months from the date they became payable, except the Input Tax Reversal on Stock Transfer amounting to Rs.11,73,263/-.
(b) According to the information and expLanations given to us, there are no dues of income tax or saLes tax or service tax or duty of customs or duty of excise or vaLue added tax or cess,which had not been deposited on account of any dispute, except the foLLowing
|Name of Statute||Nature of Dues||Amount||Period to which the amount relates||Forum Where dispute is pending|
|TamiLnadu Value Added Tax,2006||VAT on SEZ Sales||Rs.5421138/-||2007-2008||Appellate Commissioner, CTD|
|TamiLnadu Value Added Tax,2006||VAT Penalty on ITC||Rs.70233/-||2007-2008||Appellate Commissioner, CTD|
viii. The company has not defaulted in repayment of dues to financial institutions or banks and Government during the year. There have been no outstanding dues to debenture holders.
ix. During the year company has not raised any money through Initial Public Offer or further Public Offer. The term Loans availed by the company during the year have been applied for the purpose for which it has been availed.
x. Based upon the audit procedures performed for the purpose of reporting true and fair view of the financial statements and as per the information and explanations given by the management, we report that no fraud on the Company by its officers or employees has been noticed or reported during the year.
xi. Managerial Remuneration has been paid/provided in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V to the Companies Act.
xii. Company is not a Nidhi Company.
xiii. ALL transactions with the related parties are in compliance with Section 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.
xiv. The company has not made any preferentiaL aLLotment of shares or fuLLy or partLy convertibLe debentures during the year under review. The company has made private pLacement of Equity shares under review and it has compLied with provision of Section 42 of Companies Act,2013and the amount raised have been used for the purposes for which the funds were raised.
xv. The company has not entered into any non-cash transactions with directors or persons connected with him.
xvi. The company is not required to be registered under section 45-I of the Reserve Bank of India Act, 1934.
For C.Ramasamy & B.Srinivasan
M No: 023714