unifrax india ltd Auditors report
UNIFRAX INDIA LIMITED
ANNUAL REPORT 2011
AUDITORS REPORT
TO THE MEMBERS OF
UNIFRAX INDIA LIMITED
1. We have audited the attached Balance Sheet of Unifrax India Limited
(the Company) as at December 31, 2011 and also the Profit and Loss
account and the cash flow statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statement, are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management as well as
evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 (as amended)
issued by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to above, we report
that:
i. We have obtained all the information and explanations, which to the best
of our knowledge and belief were necessary for the purposes of our audit,
ii. 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;
iii. The balance sheet, profit and loss account and cash flow statement
dealt with by this report are in agreement with the books of account;
iv. In our opinion, the balance sheet, profit and loss account and cash
flow statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the Companies
Act, 1956.
v. On the basis of the written representations received from the directors,
as on December 31, 2011, and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on December 31, 2011
from being appointed as a director in terms of clause (g) of sub-section
(1) of Section 274 of the Companies Act, 1956.
vi. In our opinion and to the best of our information and according to the
explanations given to us, the said accounts give the information required
by the Companies Act, 1956, 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 December 31, 2011;
(b) in the case of the profit and loss account, of the profit and loss 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.
For S.V. Ghatalia & Associates
Firm Registration Number: 103162W
Chartered Accountants
Per PRAMOD KUMAR BAPNA
Partner
Membership No.: 105497
Mumbai
Date: March 22, 2012
Annexure referred to in paragraph 3 of our report of even date
Re: Unifrax India Limited
(i)(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) All fixed assets have not been physically verified by the management
during the year but there is a regular programme of verification which, in
our opinion, is reasonable having regard to the size of the Company and
the nature of its assets. No material discrepancies were noticed on such
verification.
(c) There was no disposal of a substantial part of fixed assets during the
year.
(ii)(a) The management has conducted physical verification of inventory
at reasonable intervals during the year.
(b) The procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no material
discrepancies were noticed on physical verification.
(iii)(a) According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured to companies, firms
or other parties covered in the register maintained under Section 301 of
the Companies Act, 1956. Accordingly, the provisions of clause 4(iii)(a)
to (d) of the Order are not applicable to the Company and hence not
commented upon.
(e) According to information and explanations given to us, the Company has
not taken any loans, secured or unsecured, from companies, firms or other
parties covered in the register maintained under Section 301 of the
Companies Act, 1956. Accordingly, the provisions of clause 4(iii)(e) to (g)
of the Order are not applicable to the Company and hence not commented
upon.
(iv) In our opinion and according to the information and explanations given
to us, there is an adequate internal control system commensurate with the
size of the Company and the nature of its business, for the purchase of
inventory and fixed assets and for the sale of goods and services. During
the course of our audit, we have not observed any major weakness or
continuing failure to correct any major weakness in the internal control
system of the company in respect of these areas.
(v)(a) In our opinion, there are no contracts or arrangements that need to
be entered in the register maintained under Section 301 of the Companies
Act, 1956
(b) None of the transactions made in pursuance of such contracts or
arrangements exceed the value of Rupees five lakh in respect of any one
such party in the financial year.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system commensurate
with the size and nature of its business.
(viii) To the best of our knowledge and as explained, the Central
Government has not prescribed maintenance of cost records under clause (d)
of sub-section (1) of Section 209 of the Companies Act, 1956 for the
products of the Company.
(ix)(a) Undisputed statutory dues including provident fund, investor
education and protection fund, employees state insurance, income-tax,
sales-tax, wealth-tax, service tax, customs duty, excise duty, cess and
other material statutory dues have generally been regularly deposited with
the appropriate authorities though there has been a slight delay in few
cases.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees state insurance, income-tax,
wealth-tax, service tax, sales-tax, customs duty, excise duty cess and
other material statutory dues were outstanding, at the year end, for a
period of more than six months from the date they became payable.
(c) According to the records of the Company, the dues outstanding of
income-tax, sales-tax, wealth-tax, service tax, customs duty, excise duty
and cess on account of any dispute, are as follows:
Name of Nature of Dues Amount Period to which Forum where
Statute (Rs.) the amount dispute is
relates pending
Excise and Input Credit 427,760 2004-05 High Court,
Customs Act, Ahmedabad
1944
Income Tax Income Tax 3,993,710 2005-06 Income Tax
Act, 1961 Appellate
Tribunal
Income Tax 2,553,055 2006-07 Commissioner
of Income
Tax (Appeals)
Income Tax 2,078,368 2007-08 Commissioner
of Income
Tax (Appeals)
Income Tax 310,563 2008-09 Commissioner
of Income
Tax (Appeals)
Income Tax 2,939,350 2009-10 Commissioner
of Income Tax
(Appeals)
(x) The Company has no accumulated losses at the end of the financial year
and it has not incurred cash losses in the current and immediately
preceding financial year.
(xi) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has no outstanding dues to a financial institution, bank or
debenture holders.
(xii) According to the information and explanations given to us and based
on the documents and records produced to us, the Company has not granted
loans and advances on the basis of security by way of pledge of shares,
debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause 4(xiii) of the
Companies (Auditors Report) Order, 2003 (as amended) are not applicable
to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the provisions
of clause 4(xiv) of the Companies (Auditors Report) Order, 2003 (as
amended) are not applicable to the Company.
(xv) According to the information and explanations given to us, the Company
has not given any guarantee for loans taken by others from bank or
financial institutions.
(xvi) The Company did not have any term loans outstanding during the year.
(xvii) According to the information and explanations given to us and on an
overall examination of the balance sheet of the Company, we report that no
funds raised on short-term basis have been used for long-term investment.
(xviii) The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under Section 301
of the Companies Act, 1956.
(xix) The Company did not have any outstanding debentures during the year.
(xx) The Company has not raised any money through public issues during the
year.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the 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 or by the Company has been noticed or reported during the
course of our audit.
For S.V. Ghatalia & Associates
Firm Registration Number: 103162W
Chartered Accountants
Per PRAMOD KUMAR BAPNA
Partner
Membership No.: 105497
Mumbai
Date: March 22, 2012