Ucal Fuel Systems Ltd

BSE: 500464 | NSE: UCALFUEL | ISIN: INE139B01016 
Market Cap: [Rs.Cr.] 186.06 | Face Value: [Rs.] 10
Industry: Auto Ancillaries

Auditor's Report
INDEPENDENT AUDITOR

TO THE MEMBERS OF M/s. UCAL FUEL SYSTEMS LTD., CHENNAI

Report on the Financial Statements

We have audited the accompanying financial statements of UCAL FUEL SYSTEMSLimited ("the Company"), which comprise the Balance Sheet as at March31, 2013, and the Statement of Profit and Loss and Cash Flow Statement for the year thenended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position, financial performance and cash flows of theCompany in accordance with the Accounting Standards referred to in sub-section (3C) ofSection 211 of the Companies Act, 1956 ("the Act"). This responsibility includesthe design, implementation and maintenance of internal control relevant to the preparationand presentation of the financial statements that give a true and fair view and are freefrom material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing 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.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment, including the assessment of the risks of material misstatement of the financialstatements, whether due to fraud or enor. In making those risk assessments, the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management, aswell 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 audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us, the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:

(a) in the case of the Balance Sheet, of the state of affairs of the Company as atMarch 31, 2013;

(b) in the case of the Statement of Profit and Loss, of the profit for the year endedon that date; and

(c) in the case of the Cash Flow Statement, of the cash flows for the year ended onthat date.

Emphasis of Matter

We draw attention to Note No. 31 of the Notes to Accounts with regard to the diminutionin the value of investment in the subsidiary company M/s Amtec Precision Products Inc. Ouropinion is not qualified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order, 2003 ("the Order")issued by the Central Government of India in terms of sub-section (4A) of Section 227 ofthe Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and5 of the Order

2. As required by Section 227(3) of the Act, we report that:

a. We have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit.

b. In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books.

c. The Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt withby this Report are in agreement with the books of account.

d. In our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash FlowStatement comply with the Accounting Standards referred to in subsection (3C) of section211 of the Companies Act, 1956.

e. On the basis of written representations received from the directors as on March 31,2013, and taken on record by the Board of Directors, none of the directors is disqualifiedas on March 31, 2013, from being appointed as a director in terms of clause (g) ofsub-section (1) of section 274 of the Companies Act, 1956.

f. Attention is invited to Note No.40, of Notes to Accounts, regarding managerialremuneration to directors, which is in excess of the limits prescribed by the CompaniesAct, 1956.

For G. BALU ASSOCIATES,
Chartered Accountants
FRN: 000376S
R. RAVISHANKAR
Place : Chennai Partner
Date : 16.05.2013 Membership number: 26819

ANNEXURE TO THE AUDITOR'S REPORT

The Annexure referred to in our report to the members of UCAL FUEL SYSTEMS LIMITED('the Company') for the year ended 31 March 2013. We report that:

(1) a) The company has maintained proper records showing full particulars, includingquantitative details and situation of fixed assets. The company is in the process ofupdating its Fixed Asset register.

b) The fixed assets have been physically verified by the management at reasonableintervals and no material discrepancies were noticed on such verification.

c) No substantial parts of fixed assets have been disposed off during the year.

(2) a) Physical verification of inventory has been conducted at reasonable intervals bythe management.

b) The procedures for physical verification of inventory followed by the management arereasonable and adequate in relation to the size of the company and nature of its business.

c) The company is maintaining proper records of inventory and no material discrepancieswere noticed on physical verification.

(3) The company has taken unsecured loan from few parties covered in the Registermaintained under Sec. 301 of the Act to the extent of Rs. 7.69 Crores (outstanding as on31.03.2012 is Rs. 8.84 Crores). The rate of interest and other terms and conditions of theloan taken is prima-facie not prejudicial to the interest of the company. There is nostipulation regarding the repayment of the loan.

(4) In our opinion and according to the information and explanations given to us, thereare adequate internal control procedures commensurate with the size of the company and thenature of its business, for the purchase of inventory and fixed assets and for the sale ofgoods and services. There is no continuing failure to correct major weaknesses in theinternal control system of the Company.

(5) In our opinion and according to the information and explanations given to us

a) the particulars of contracts or arrangements referred to in Section 301 of theCompanies Act, 1956, have been entered in the register required to be maintained underthat section, and

b) the transactions made in pursuance of such contracts or arrangements have been madeat prices which are reasonable having regard to the prevailing market prices at therelevant time.

(6) In our opinion and according to the information and explanations given to us, thecompany has not accepted any deposits from the public and hence compliance with directivesissued by the Reserve Bank of India and the provisions of Sec. 58 A, 58 AA or any otherrelevant provisions of the Act and the rules framed there under are not applicable.

(7) In our opinion, the company has adequate internal audit system commensurate withits size and nature of its business.

(8) As per the books and records produced to us and explanations offered thereon, weare of the opinion that, prima facie, the cost records and accounts prescribed by theCentral Government under Sec. 209 (1) (d) of the Companies Act, 1956, have been made andmaintained. However we are not required and have not made any detailed examination of thesaid records, with a view to determine whether they are accurate or complete.

(9) a) According to the records produced, the company is generally regular indepositing with appropriate authorities the undisputed applicable statutory dues includingProvident Fund, Investor Education and Protection Fund, Employees State Insurance, IncomeTax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty and Cess.

b) As per the information and explanations given to us, following are the statutorydues which have not been deposited on account of dispute.

Nature of Dues/Statute Period Amount Rs. in Lakhs Forum where dispute is pending
Income Tax Act AsstYear- 1996-97 14.02 High Court of Madras
Income Tax Act AsstYear- 1999-00 4.12 High Court of Madras
Income Tax Act Asst Year - 2000-01 3.59 High Court of Madras
Income Tax Act Asst Year - 2005-06 2.55 CIT Appeals III, Chennai
Income Tax Act Asst Year - 2005-06 101.91 CIT Appeals III, Chennai
Income Tax Act Asst Year - 2006-07 171.43 CIT Appeals III, Chennai
Income Tax Act Asst Year - 2007-08 2.09 CIT Appeals III, Chennai
Central Excise Act - Service Tax Financial year-2005-06 1.93 Commissioner of Central Excise Appeals
Central Excise Act - Service Tax Financial year-2011-12 4.36 Deputy Commissioner of Service Tax
Central Excise Act - Service Tax Financial year-2011-12 24.81 Additional Commissioner of Service Tax
Central Excise Act - Service Tax Financial year-2010-11 4.81 Deputy Commissioner, Tambaram
Central Excise Act Financial year-2007-08 17.00 Commissioner of Central Excise, Pondicherry
Central Excise Act Financial year-2006-07 120.43 Joint Commissioner of Central Excise
Central Excise Act Financial year-2007-08 3.56 Joint Commissioner of Central Excise, Delhi
Central Excise Act Central Excise (August 2003-June-2004) 1.83 Assistant Commissioner of Central Excise, Tambaram Division
Central Excise Act Central Excise (January 2001 - August 2003) 34.93 Chief Commissioner Excise (Appeals)
Central Excise Act Financial year -2002-03 44.14 Additional Commissioner, Gurgaon.
Central Sales Tax Act Financial year-2005-06 1.04 Appellate Deputy Commissioner
Central Sales Tax Act Financial year-2006-07 4.77 Appellate Deputy Commissioner, Chennai
VAT Act Financial year-2007-08 83.07 Appellate Deputy Commissioner, Chennai
ESI Act ESI (01.04.2000 - 30.06.2002) 1.27 Regional Director, Gurgaon
Indian Stamp Act Stamp Duty 31.37 Inspector General of Registration (Appeals) Chennai, Tamil Nadu

(10) The company does not have accumulated losses as at the end of the Financial Yearand has not incurred cash losses in the current financial year and in the immediatelypreceding financial year.

(11) The company has not defaulted in repayment of dues to any financial institutionsor bank or debenture holders.

(12) The company has not granted any loans and advances on the basis of security by wayof pledge of shares, debentures and other securities.

(13) The company is not a Chit Fund, Nidhi or Mutual Fund or Society.

(14) The company is not dealing or trading in shares, securities, debentures and otherinvestments.

(15) In our opinion and according to the information and explanations given to us, theterms and conditions on which the company has given guarantees for loans taken by othersfrom bank and financial institutions are not prima facie prejudicial to the interests ofthe company.

(16) In our opinion and according to the information and explanations given to us, theterm loans were applied for the purposes for which they were obtained.

(17) On the basis of an overall examination of the accounts of the company, no fundsraised on short term basis have been used for long term investments.

(18) The company has not made any preferential allotment of shares during the year toparties and companies covered in the Register maintained under Section 301 of CompaniesAct,1956.

(19) The company has not issued any debentures during the year.

(20) The company has not raised any money through public issues during the year.

(21) Based upon the audit procedures performed and on the basis of the information andexplanations given to us, no fraud on or by the company has been noticed or reportedduring the year.

For G. BALU ASSOCIATES,
Chartered Accountants
FRN: 000376S
R. RAVISHANKAR
Place : Chennai Partner
Date : 16.05.2013 Membership number: 26819
   
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Future Data Not present
Key Information

Key Executives:

Jayakar Krishnamurthy , Chairman & Managing Director

V Sumantran , Director

S Natrajan , Director

M S Ananth , Director


Company Head Office / Quarters:

Raheja Towers 177 Anna Salai,
Delta Wing-Unit 705,
Chennai,
Tamil Nadu-600002
Phone : Tamil Nadu-91-044-42208111 / Tamil Nadu-
Fax : Tamil Nadu-91-044-28605020 / Tamil Nadu-
E-mail : investor@ucalfuel.co.in
Web : http://www.ucalfuel.com

Registrars:

Integrated Enterprises (I) Ltd
Kences Tower,2nd Floor No 1,Ramakrishna Street,Chennai - 600 017

 
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