Independent Auditors
To the members
MW Unitexx Limited
Report on the Financial Statements
We have audited the attached financial statements of MW Unitexx Limited
(hereinafter referred to as the Company), comprising of the Balance Sheet as at 31st
March 2014, the Statement of Profit and Loss and the Cash Flow Statement for the year then
ended along with the Significant Accounting Policies and other explanatory information
forming an integral part thereof.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give a
true and fair view of the financial position, financial performance and cash flows of the
Company in accordance with the Accounting Standards referred to in Section 211(3C) of the
Companies Act, 1956 (hereinafter referred to as the Act), read with General Circular
15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs in
respect of Section 133 of the Companies Act, 2013 and in accordance with the accounting
principles generally accepted in India. This responsibility includes the design,
implementation and maintenance of internal control relevant to the preparation and
presentation of the financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our
audit. We conducted our audit in accordance with the Standards on Auditing issued by the
Institute of Chartered Accountants of India. 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 of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the
Auditor’s judgment, including assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the Company’s preparation and fair
presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing opinion on the
effectiveness of the Company’s internal control. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of the accounting
estimates made by the management, as well as evaluating the overall financial statement
presentation.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a reasonable basis for our audit opinion.
Basis for Qualified Opinion
As stated in the Notes No.24.II. 2 ,3 and 4 respectively of the financial statements
regarding;
(i) Continuation of capitalization by the Company in respect of Pre- operative
expensesaggregating to Rs. 1,732.03 Lacs in respect of Unimart Project under the head
Capital Work in Progress despite lack of movement in the said Project during the year.
(ii) Non-provision against Long term Loans and Advances representing interest-free
refundable depositsto agents for more than a year amounting to Rs. 4,471.05 Lacs against
which no performance has been received.
(iii) Provision for employee benefit in the books has been made based on Company’s
estimate rather than carrying out actuarial valuation of Employee benefit expenses which
is not in line with Accounting Standard 15- ‘Employee Benefit’. Impact of the
same on the provisions and loss for the year is presently unascertainable.
Accordingly, (i) Pre-operative expenses under the head Capital Work in Progress have
been overstated and loss for the year has been understated by Rs. 1,732.03 Lacs (ii) Long
termLoans and Advances have been overstated and loss for the year has been understated by
Rs. 4,471.05 Lacs.
Emphasis of Matter
We draw attention to Note No. 24 II (5) of the financial statements, In respect of
Deposit given to one of the party which is shown under the head Long term loans and
advances amounting to Rs. 400 Lacs since March 2006. The said deposit is given for
occupying rent free area in the proposed newly constructed building. However the said
project is still on hold by the developer but the management is hopeful of its performance
in near future.
In our opinion and to the best of our information and according to the explanations
given to us, except for the effects of the matters described in the Basis for Qualified
Opinion paragraph, the 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 2014;
(b) In the case of the Statement of Profit and Loss, of the Profit / Loss of the
Company for the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the Cash flows of the Company for the
year ended on that date
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2003 as amended by the
Companies (Auditor’s Report) (Amendment) Order, 2004 issued by the Central Government
of India in terms of sub-section (4A) of Section 227 of the Act, we enclose in the
Annexure a statement on the matters specified in paragraph 4 of the said Order, to the
extent applicable to the Company during the year under review.
2. Further to our comments in the Annexure referred to in 1. above, as required by
Section 227(3) of the Act, we report as follows:
(a) We have obtained all the information and explanations, which to the best of our
knowledge 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 the
Company so far as 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 the books of account;
(d) In our opinion, the Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement comply with the Accounting Standardsasreferredto in sub-section (3C) of
section 211 of the Act;
(e) On the basis of written representations received from the respective directors as
on 31st March 2013 and taken on record by the Board of Directors, none of the
directors is disqualified as on 31st March 2014 from being appointed as a
director in terms of clause (g) of sub-section (1) of Section 274 of the Act;
|
For Shyam Malpani & Associates |
|
Chartered Accountants |
|
Firm Registration No. 120438 W |
|
Sd/- |
|
Shyam Malpani |
| Place : Mumbai |
Proprietor |
| Dated : 29th May, 2014 |
Membership No. F- 34171 |
Annexure to the Auditors’ Report
(Referred to in paragraph IV.1 of our report of even date)
In terms of the information and explanations given to us and the books and records
examined by us and on the basis of such checks as we considered appropriate, we further
report as under:
(i) The Company has maintained proper records showing full particulars including
quantitative details and situation of fixed assets. As explained to us, the fixed assets
were physically verified by the management during the year and no discrepancies were
noticed upon physical verification of assets and comparison of the same with the updated
fixed assets register. During the year, the Company has not disposed off substantial part
of the fixed assets and the going concern status of the Company has not been affected.
(ii) The inventories have been physically verified by the management during the year
under review at regular intervals.The frequency of physical verification in respect of
inventories, in our opinion, is reasonable and commensurate with the size of the Company
and nature of its operations. In our opinion, the procedures of physical verification of
inventories followed by the management are reasonable and adequate and the Company has
maintained proper records showing full particulars including quantitative details and
situation of its inventories.
(iii) During the year under review, the Company has taken interest-free unsecured loan,
fromthreebodies corporate representing parties covered in the register maintained under
section 301 of the Act. In our opinion, the other terms and conditions of the said loans
are not prima facie prejudicial to the Company’s interests. The maximum and closing
balance of the said loan is given as under:
| Nature and number of the Parties |
Maximum balance during the year ( Rs. in Lacs) |
Closing balance ( Rs. in Lacs) |
| Body Corporate - 6 |
4,009.37 |
4,081.85 |
During the year under review, Company has granted advances to a body corporate
representing aparty covered in the register maintained under section 301 of the Act. In
our opinion, the terms and conditions of the said loans are not prima facie prejudicial to
the Company’s interests. The maximum and closing balances of the said loan are given
as under:
| Nature and number of the Parties |
Maximum balance during the year ( Rs. in Lacs) |
Closing balance ( Rs. in Lacs) |
| Body Corporate - 2 |
23.78 |
15.43 |
The above loans taken as well as granted are demand loans and hence there are no
overdue amounts involved. Also, in our opinion, the Company is taking reasonable steps to
repay/recover the aforesaid loans.
(iv) In our opinion, there are adequate internal control procedures commensurate with
the size of the Company and the nature of its business in respect of purchase of
inventory, fixed assets and with regard to sale of goods and provision of services. During
our audit, we have not come across any continuing failure to correct major weakness in
internal controls prevailing in the Company.
(v) Transactions entered with the parties listed in the register maintained under
section 301 of the Act have been so entered. In our opinion, the said transactions,entered
during the year in respect of each party aggregating to Rs. 5.00 Lacs or more have been
made at prices which are reasonable, having regard to the prevailing market prices at the
relevant time, wherever such market prices are available.
(vi) The Company has not accepted any deposits from the public during the year within
the purview of the directives issued by the Reserve Bank of India and the provisions of
Sections 58A and 58-AA of the Actand the rules framed thereunder.
(vii) In our opinion, the Company has a formal internal audit system which is
commensurate with the size of the Company and the nature of its business.
(viii) As explained to us, the Central Government has prescribed during the year under
review for the maintenance of cost records under clause (d) of section (1) of section 209
of the Act. However; the Company has got the same verified by a Cost Accountant, as
required.
(ix) As per the records verified by us, the Company is generally regular in depositing
the undisputed statutory dues involving Provident Fund, Customs Duty, Value Added Tax and
Income Tax with the appropriate authorities and there was no amount remaining outstanding
for more than six months as at the Balance Sheet date. As regards Investors Education and
Protection Fund, Wealth Tax, Excise Duty, Service Tax and Cess, we were explained that the
said statutes were not applicable to the Company during the year under review.
As per the records verified by us and based on the explanations given to us, there were
no disputed statutory liabilities with the Company at any time during the year under
review.
(x) The accumulated losses with the Company as at the close of the year are not more
than fifty percent of its net worth as at the Balance Sheet date. The Company has not
incurred cash losses in its current as well as immediately preceding previous year
(xi) In our opinion and according to the information and explanations given to us,
there has been default/delay in repayment of dues to a Financial Institution as well
asbanks which are as follows:
| Period of Default |
Amount (In Lacs) |
Remark |
| 0 - 6 Months |
1,000 |
Principal Default |
| 0 - 6 Months |
478.41 |
Interest Default |
| 6 - 12 Months |
1,000 |
Principal Default |
| 6 - 12 Months |
412.15 |
Interest Default |
(a) In respect of Financial institution, the Company has defaulted in repayment of
principal as well as interestpayments as per table given below:
(b) In respect of bank, the Company has delayed in interestpayments ranging from 8-38
days amounting to Rs. 138.50 Lacs.
However, the same has been regularised as at the end of the year.
(xii) As per the records verified by us, the Company has not granted loans and/or
advances on the basis of security by way of pledge of shares, debentures and other
securities during the year under review.
(xiii) The provisions of any special statutes applicable to a chit fund, Nidhi or
mutual Benefit Companies are not applicable to the Company during the year.
(xiv) The Company has not dealt with or traded in shares, securities, debentures and
other investments during the year under review. The Investments held by the Company are in
its own name.
(xv) As per the records verified by us and based on the explanations given to us, the
Company has given guarantee amounting to Rs. 500.00 Lacsfor loans taken by others from
bank.
(xvi) As per the records and based on the explanations provided to us, ,no new
termloans were raised during the year under review. (xvii) Based on the overall
examination of the Balance sheet and the funds flow, we are of the opinion that no funds
raised by the Company on short term basis were utilised for long term investment.
(xviii) The Company has not made any preferential allotment of shares during the year
under review (xix) No debentures were issued by the Company during the year under review.
(xx) The Company has not raised any money by public issue during the year under review.
(xxi) As per the records verified by us and based on the explanations given to us, no
fraud on or by the Company has been noticed or reported during the year that causes the
financial statements to be materially misstated.
|
For Shyam Malpani & Associates |
|
Chartered Accountants |
|
Firm Registration No. 120438 W |
|
Sd/- |
|
Shyam Malpani |
| Place : Mumbai |
Proprietor |
| Dated : 29th May, 2014 |
Membership No. F- 34171 |
+91-9892691696
