TO THE MEMBERS OF UNIPLY INDUSTRIES LIMITED Report on the Audit of the Standalone
Financial Statements
Qualified Opinion
We have audited the accompanying standalone financial statements of Uniply Industries
Limited (the Company/UIL), which comprise the Balance Sheet as at March 31, 2020, the
Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow
Statement and the Statement of Changes in Equity for the year then ended, and a summary of
the significant accounting policies and other explanatory information (hereinafter
referred to as "the Standalone financial statements").
In our opinion and to the best of our information and according to the explanations
given to us, except for the effects/possible effects of the matters described in the Basis
for Qualified Opinion section of our report, the aforesaid standalone financial statements
give the information required by the Companies Act, 2013 (‘Act) in the manner so
required and give a true and fair view in conformity with the accounting principles
generally accepted in India including Indian Accounting Standards (Ind AS) specified
under section 133 of the Act, of the state of affairs of the Company as at March 31, 2020,
and its loss (including other comprehensive income), its cash flows and the changes in
equity for the year ended on that date.
Basis for Qualified Opinion
(a) The management of the company is of the opinion that there should not be any
impairment of investment in equity shares of Uniply Decor Limited (‘UDL) amounting
to Rs. 1,15,54,22,555/-, an associate company, at fair value as on 31.03.2020, considering
the future business potential and growth of associate company. Investment in UDL has
declined by 89% as on 31.03.2020, from its original cost. In view of the aforesaid
required provision not being made, net loss for the year ended March 31 2020, has been
understated and carrying value of the investment and other equity have been overstated by
Rs. 102,83,18,535/- as on March 31, 2020.
(b) The company has GST Input Tax Credit (ITC) of Rs. 29,44,58,361/- across various
locations. However, in the absence of active GST registration across all the locations, we
are unable to comment on the appropriateness of availing the same. This may cause the
amount of loss to be understated by and other equity to be overstated by Rs.
29,44,58,361/-.
(c) With reference to Note No. 43 of the standalone financial statement, the Company
has advanced Rs.2,06,16,50,242/- to KKN Holdings Private Limited (Formerly known as
Foundation outsourcing India Private Limited), which is a related party, for various
purposes. The management of the Company believes that underlying assets shall be
transferred to the Company and capitalised by 31.03.2021 and / or surplus / deficit, if
any, shall be repaid back to / paid by the Company. However, since considerable time has
elapsed and in the absence of sufficient and appropriate evidence, we are unable to
comment on the adjustment / recovery of this amount and its consequent impact thereof on
profit and loss account and balance sheet.
(d) Due to delayed receivables followed by impact of COVID 19 shut-down the business
faced severe liquidity crunch and certain portion of statutory dues, primarily TDS and
self-assessment tax, have not been paid in accordance and within prescribed timeline. In
view of the aforesaid required provision of interest, late fees and penalty not being
made, we are not able to comment on consequent impact thereof on profit and loss account
and balance sheet.
(e) With reference to Note No. 50.1 of the standalone financial statements, since the
Company has neither received confirmation from its Debtors, which already are outstanding
for more than six months nor balances have been reconciled with them, therefore, in the
absence of sufficient and appropriate evidence, we are unable to comment on the adjustment
/ recovery of the same and its consequent impact thereof on profit and loss account and
balance sheet.
(f) The balances in the Trade payables amounting to Rs. 2,42,69,05,749/- are subject to
confirmation and reconciliation. We have not been provided confirmation letters for the
same.
(g) Advances from customers amounting to Rs.14,52,42,088/- are subject to confirmation.
Therefore, no adjustments have been made in the accompanying standalone financial
statements for any possible difference on reconciliation of advance from customers. The
consequential financial impact on profit & loss account and balance sheet could not
been ascertained.
(h) Advances to suppliers amounting to Rs. 22,76,34,805/- are subject to confirmation.
Therefore, no adjustments have been made in the accompanying standalone financial
statements for any possible difference on reconciliation of advance to suppliers. The
consequential financial impact on profit & loss account and balance sheet could not
been ascertained.
(i) With reference to Note 44 of the standalone financial statements, during the year
company lease assets and lease liability amounting to Rs. 6,46,53,467/- and 5,90,16,182/-
respectively created in accordance with INDAS 116 has been written off in the books of
accounts due to discontinuance of its long term leases entered with various parties. In
the absence of sufficient and appropriate evidence, we are unable to comment on the
treatment of the same in the books of accounts.
(j) The management of the company is of the opinion that there should not be any
impairment of Property, plant and equipment despite suspension of business from October
2019 to March 2020. In the absence of future cash flow information about the value in use
of the Property, plant and equipment, we are unable to comment upon its impairment
provision, if any as per IND AS- 36 "Impairment of Assets".
(k) We draw attention that during our audit process, certain documentation and
information relevant for the purpose of audit could not be provided to us in view of
unprecedented Covid - 19 situation and consequently, could not be audited by us.
Emphasis of Matters
Without qualifying our opinion, we draw attention to the following notes to standalone
Ind AS financial statements:
(a) We draw attention to Note No. 42 of the standalone financial statements, regarding
the advance of Rs. 260 crores to KKN Holdings Private Limited. The said transaction is
pending for procedural formalities.
(b) We draw attention to Note No. 45 of the standalone financial statements,
Promoters following shares were pledged and have been invoked and taken over by
lenders. Details have been provided hereinbelow:
i. 2250190 shares (1.34% of total shareholding of the company) held by Mr. Keshav
Narayan Kantamneni was pledged to and invoked by Beacon Trusteeship Ltd. on 21.03.2020 for
default on Non-convertible Debentures issued by KKN Holdings Pvt. Ltd.
ii. 7149810 shares (4.26% of total shareholding of the company) held by M/s. Madras
Electronics Solutions Pvt Ltd was pledged to and invoked by Beacon Trusteeship Ltd. on
21.03.2020 for default on Non-convertible Debentures issued by KKN Holdings Pvt. Ltd.
iii. 17097810 shares (10.20% of total shareholding of the company) held by Mr. Keshav
Narayan was pledged to and invoked by SBICAP Trustee Company Ltd. on 09.10.2020 for
default by wholly owned subsidiary VPIPL.
Promoters have contested the invocation.
(c) We draw attention to Note No. 46 of the standalone financial statements, The
company has paid GST amounting to Rs.10,19,95,500/- by reversing GST Input tax credit(ITC)
via form DRC - 03 as demanded in GST search and search survey operation carried on
companys premises in November 2019.
(d) We draw attention to the Note 47 to the standalone financial Statements, the
company has incurred net loss of Rs. 8,47,70,920/- during the year ended 31st March, 2020,
and having negative cash flow of Rs.42,56,99,416/-. However, the companys Statement have
been prepared on going concern basis considering the stand taken by management in said
note.
(e) We draw attention to Note 48 of the standalone financial statements, regarding
provision of interest as mandated by law, on dues of Micro, Small & Medium Enterprises
under MSMED Act. In the absence of supporting information, we are unable to form an
opinion as to the correctness and completeness of the information.
(f) We draw attention to Note 49 of the standalone financial statements,
- Balance with SBI - EEFC A/c (6054) amounting to Rs 348/-, (Inoperative, hence no
statement available)
- Balance with HDFC Esrow A/c (18185) amounting to Rs. 0/- ,
have been taken as per books and have not been confirmed by respective banks.
(g) We draw attention to Note No. 51 of the standalone financial statements, regarding
investments in Vector Projects India Private Limited amounting to Rs. 57,50,00,000/-,
wherein, the management of the Company considers carrying amount of investment as fair
market value and consequently, no provision for impairment has been considered necessary.
(h) We draw attention to Note no. 27 to the standalone financial statements, Bad debts
includes unbilled debtors of Rs. 15.02 crores which was never billed to any debtors. And
the same belongs to FY 18-19 unbilled income.
(i) We draw attention to note no. 52, 53 and 54 of the standalone financial statements,
regarding extension for agreements / arrangements entered with Promoters and consequent
transfer of underlying assets, which has been pending for a considerable period of time.
(j) We draw attention to Note no. 55 of the standalone financial statements, regarding
delay in conducting the AGM.
(k) We draw attention to Note 56 of the standalone financial statements, regarding the
managements evaluation of COVID-19 impact on the future performance of the Company and
its subsidiaries. Our opinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. These matters
were addressed in the context of our audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
Apart from the matter described in the Basis for Qualified Opinion section, we have
determined no other key audit matters to communicate in our report.
Information other than the Financial Statements and Auditors Report thereon
The Companys Board of Directors is responsible for the other information. The other
information comprises the information included in the Management Discussion and Analysis,
Report on Corporate Governance, Directors Report etc., but does not include the
standalone financial statements and our auditors report thereon. These reports are
expected to be made available to us after the date of this auditors report.
Our opinion on the standalone financial statements does not cover the other information
and we will not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read
the other information identified above when it becomes available and, in doing so,
consider whether the other information is materially inconsistent with the financial
statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
When we read these reports, if we conclude that there is a material misstatement
therein, we are required to communicate the matter to those charged with governance.
Responsibilities of Management and Those Charged with Governance for the Standalone
Financial Statements
The accompanying standalone financial statements have been approved by the Companys
Board of Directors. The Companys Board of Directors is responsible for the matters stated
in section 134(5) of the Act with respect to the preparation of these standalone financial
statements that give a true and fair view of the financial position, financial performance
including other comprehensive income, changes in equity and cash flows of the Company in
accordance with the accounting principles generally accepted in India, including the Ind
AS specified under section 133 of the Act. This responsibility also includes maintenance
of adequate accounting records in accordance with the provisions of the Act for
safeguarding of 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 misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for
assessing the Companys ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Companys financial
reporting process. Auditors Responsibilities for the Audit of the Standalone Financial
Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with
Standards on Auditing will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with Standards on Auditing, we exercise professional
judgment and maintain professional skepticism throughout the audit. We also:
• identify and assess the risks of material misstatement of the standalone
financial statements, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control;
• Obtain an understanding of internal control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances. Under section 143(3)(i)
of the Act, we are also responsible for expressing our opinion on whether the Company has
adequate internal financial controls with reference to standalone financial statements in
place and the operating effectiveness of such controls;
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management;
• Conclude on the appropriateness of managements use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the standalone financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditors report. However, future events or conditions may cause the Company to cease to
continue as a going concern;
• Evaluate the overall presentation, structure and content of the standalone
financial statements, including the disclosures, and whether the standalone financial
statements represent the underlying transactions and events in a manner that achieves fair
presentation;
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the standalone financial statements
of the current period and are therefore the key audit matters. We describe these matters
in our auditors report unless law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Other Matter
The standalone financial statements of the Company for the year ended March 31, 2019
were audited by the predecessor auditor who expressed an unmodified Opinion on those
standalone financial statements on May 30, 2019. Our report on the standalone financial
statements is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by section 197(16) of the Act, based on our audit, we report that the
Company has paid remuneration to its directors during the year in accordance with the
provisions of and limits laid down under section 197 read with Schedule V to the Act.
2. As required by the Companies (Auditors Report) Order, 2016 ("the Order")
issued by the Central Government in terms of Section 143(11) of the Act, we give in the "Annexure
I" statement on the matters specified in paragraphs 3 and 4 of the order, to the
extent applicable.
3. Further to our comments in Annexure I, as required by section 143(3) of the Act,
based on our audit, we report, to the extent applicable, that:
(a) We have sought and except for the matters described in the basis for Qualified
Opinion section, we have sought but were unable to obtain all the information and
explanations which to the best of our knowledge and belief were necessary for the purpose
of our audit of the accompanying standalone financial statements;
(b) Except for the effects/possible effects of the matters described in the Basis for
Qualified Opinion section, in our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of those books;
(c) The standalone financial statements dealt with by this report are in agreement with
the books of account.
(d) Except for the effects/possible effects of the matters described in the Basis for
Qualified Opinion section, in our opinion, the aforesaid financial statements comply with
Ind AS specified under section 133 of the Act.
(e) The matters described in the basis for qualified of opinion paragraph above, in our
opinion, may have an adverse effect on the functioning of the company.
(f) On the basis of the written representations received from the directors and taken
on record by the Board of Directors, none of the directors is disqualified as on March 31,
2020 from being appointed as a director in terms of section 164(2) of the Act.
(g) The qualifications relating to maintenance of accounts and other matters connected
therewith are as stated in the basis for qualified opinion paragraph above.
(h) With respect to the adequacy of the internal financial controls with respect to
standalone financial statements of the company and the operating effectiveness of such
controls, refer to our separate report in "Annexure II". Our report
expresses a Disclaimer of Opinion on the Companys internal financial controls over
financial reporting for the reasons stated therein. and
(i) With respect to the other matters to be included in the Auditors 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 explanations given to us:
i. The company has no pending litigation - Refer Note 41 of standalone financial
statements.
ii. The company does not have any long-term contracts including derivative contracts,
having any material foreseeable losses, for which provision was required.
iii. There has been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection Fund by the company.
For N.D. Kapur & Co Chartered Accountants FRN:001196N
CA Mohit Kumar
Partner
M. No: 547715
UDIN: 21547715AAAABK4700
Place: New Delhi Dated: 20th February 2021
Annexure I to the Independent Auditors Report of even date to the members of Uniply
Industries Limited, on the financial statements for the year ended March 31, 2020.
Based on the audit procedures performed for the purpose of reporting a true and fair
view on the financial statements of the Company and taking into consideration the
information and explanations given to us and the books of account and other records
examined by us in the normal course of audit, and to the best of our knowledge and belief,
we report that:
(i) (a) The company has maintained proper records showing full particulars including
quantitative details and situation of Fixed Assets.
(b) All the assets have been physically verified by the management during the year. In
our opinion, the frequency of verification is reasonable, having regard to size of the
company and nature of its business. No material discrepancies were noticed on such
verification.
(c) According to the information and explanations given to us, as the company owns no
immovable property, the requirement on reporting whether title deed of immovable held in
the name of company is not applicable.
(ii) According to the information and explanations given to us, the management has
conducted physical verification of inventory at reasonable intervals during the year and
no material discrepancies between physical inventory and book records were noticed on
physical verification. The company does not have any inventory as on 31st March
2020.
(iii)According to the information and explanations given to us, the Company has granted
advanced Rs.1,64,26,52,683/- in financial year 2018-19 and Rs. 3,01,89,97,558/- during
financial year 2019-20 to related company, M/s KKN Holdings Private Limited and have
complied with the provisions of Section 189 of the Companies Act, 2013 with regard to
maintenance of a register under the said section.
a. As per the information and explanation, there is no specific agreements for advance
given to parties. In the absence of information, we are unable to comment on the 3(iii)(a)
of the order.
b. There is no specific repayment schedule.
c. The terms of arrangements do not stipulate any repayment schedule of principal and
interest amount. Accordingly, paragraph 3(iii)(c) of the order is not applicable to the
Company in respect amount of principal and interest overdue.
(iv) According to the information and explanation given to us, the company has granted
total unsecured advance of Rs. 466.17 crores (as detailed above in 3(iii) para of the
order) to related company, M/S. KKN Holdings Private Limited and we are unable to express
our opinion in respect of compliance with the provisions of section 185 and 186 in the
absence of any information regarding terms and conditions of the said advance.
(v) According to the information and explanations given to us, the Company has not
accepted deposits during the year and does not have any unclaimed deposits as at March 31,
2020 and therefore, the provisions of Sections 73 to 76 or any other provision of the
Companies Act, 2013 are not applicable to the Company.
(vi) According to the information and explanations given to us, the company is not
engaged in production of any such goods or provision of any such services for which the
Central Government has prescribed particulars relating to utilization of material and
Labour or other items of cost. Hence, the provisions of Section 148(1) of the Companies
Act 2013, do not apply to the Company. Hence, in our opinion, no comment on maintenance of
Cost records under section 148(1) of the Act is required.
(vii) According to the information and explanations given to us and on the basis of our
examination of the records of the Company:
(a) During the year, the company has not been regular in depositing undisputed
statutory dues including provident fund, employees state insurance, income-tax,
sales-tax, service tax, goods and services tax, duty of customs, duty of excise, value
added tax, cess and other statutory dues, wherever applicable, with the appropriate
authorities. According to the information and explanations given to us, there were approx.
Rs. 26,92,61,639/- payable in respect of aforesaid dues which are in arrears, as at 31st
March 2020 for a period of more than 6 months from the date they became payable.
| S. No. |
Nature of statutory dues |
Period to which they relate |
Amount (Rs.)* |
| 1 |
TDS Payable** |
On or before 31.03.2019 |
10,70,54,380 |
| 2 |
TDS Payable** |
From 1st April 2019 to 30th September 2019 |
4,51,61,260 |
| 3 |
VAT Payable** |
For F.Y. 2019-20 |
25,66,205 |
| 4 |
Goods and Service Tax Payable (Net)* |
Upto 31st March 2020 |
2,49,80,102 |
| 5 |
Provident Fund Payable** |
On or before 31.03.2019 |
2,18,316 |
| 6 |
Provident Fund Payable** |
From 1st April 2019 to 30th September 2019 |
1,43,625 |
| 7 |
Professional Tax Payable** |
For F.Y. 2019-20 |
13,312 |
| 8 |
Income Tax** |
Upto 31st March 2020 |
8,91,24,439 |
| Total |
|
|
26,92,61,639 |
* In the absence of records of GST Search being made available to us, and possible
disaliowabie ITC due to cancellation of GST registrations and non-fiiing of GST returns of
various months, the above figures are taken from books of accounts.
**These figures have been taken from books of accounts.
(b) According to Information & Explanation given to us there are no dues of Income
Tax, Sales Tax, Service Tax, Goods and Service Tax, Excise Duty and Value Added Tax which
have not been deposited as at March 31, 2020 on account of dispute.
(viii) In our opinion & according to the information and explanations given by the
management, the Company has not defaulted in repayment of loans or borrowings to a
financial institution during the year. The Company did not have any outstanding loans or
borrowing dues in respect of a Banks or to government. The company has not issued
Debentures during the year.
(ix) The Company has not raised moneys by way of initial public offer or further public
offer (including debt instruments) or term loans and hence reporting under Clause 3 (ix)
of the Order is not applicable to the Company.
(x) Based upon the Audit procedure performed and according to information and
explanation given to us, no fraud by the Company or on the company by its officers or
employees has been noticed or reported during the period covered by our audit.
(xi) As per the information and explanations provided to us, the company has
paid/provided managerial remuneration with the requisite approval as mandated by the
provision under Section 197 read with Schedule V to the Act.
(xii) In our opinion, and to the best of our information and explanations provided by
the management, we are of the opinion that the company is not a Nidhi Company. Hence,
clause 3 (xii) of the Order do not apply to the company.
(xiii) According to the information and explanations given to us and based on our
examination of the records of the company, transactions with the related parties are in
compliance with sections 177 and 188 of the Act wherever applicable and the details of
such transactions have been disclosed in the standalone financial statements as required
by the applicable Indian Accounting Standards.
(xiv) According to the information and explanations give to us and based on our
examination of the records of the Company, the Company has made preferential
allotment/private placement of 24,33,980/- equity shares at Rs. 82.17 per share to Kanwal
Narinder Birsingh Shahpuri HUF on 18th September 2019 aggregating to Rs.
20,00,00,171/- by converting share warrants issued in financial year 2018-19 and has
complied with the provisions of section 42 of the Act.
(xv) According to the information and explanations provided to us, the company has not
entered into any non-cash transaction with directors or persons connected with him and the
provision of section 192 of companies Act, 2013 have been compiled with.
(xvi) This clause of the CARO 2016 is not applicable to the company as the company is
not a required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
For N.D. Kapur & Co Chartered Accountants
FRN:001196N CA
Mohit Kumar Partner M.
No: 547715
UDIN: 21547715AAAABK4700
Place: New Delhi
Dated: 20th February 2021
Annexure II to the Independent Auditors Report
Report on the Internal Financial Controls with reference to financial statements under
Clause (i) of Subsection 3 of Section 143of the Companies Act, 2013 ("the Act")
In conjunction with our audit of the standalone financial statements of Uniply
Industries Limited (the Company) as at and for the year ended March 31, 2020, we were
engaged to audit the internal financial controls with reference to financial statements of
the Company as at that date.
Managements Responsibility for Internal Financial Controls
The Companys Board of Directors is responsible for establishing and maintaining
internal financial controls based on the internal financial controls with reference to
financial statements 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 (the Guidance Note) issued by the Institute of
Chartered Accountants of India (the ‘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 the Companys
business, including adherence to the Companys 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 Act.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys 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 with reference to standalone financial statements
were established and maintained and if such controls operated effectively in all material
respects.
Because of the matters described in Disclaimer of Opinion paragraph below, we were not
able to obtain sufficient and appropriate audit evidence to provide basis for an audit
opinion on internal financial controls over financial reporting with reference to these
standalone financial statements of the company.
Meaning of Internal Financial Controls Over Financial Reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of standalone financial statements for external purposes in accordance with
generally accepted accounting principles. A companys 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 standalone 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 management and directors of the company; and (3)
provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of the companys assets that could have a material effect
on the financial statements.
Disclaimer of Opinion
The internal financial controls over financial reporting with reference to these
standalone financial statements with regard the company were not fully made available to
us to determine if the company has established adequate internal financial controls over
financial reporting with reference to these financial statements at the aforesaid and
whether such financial controls were operating effectively as at 31st March
2020. Accordingly, we do not express an opinion on internal financial controls over
financial reporting with reference to these financial statements.
We also have audited, in accordance with the Standards on auditing issued by institute
of Chartered Accountants of India, as specified under section 143(10) of the Act, the
financial statements of Uniply Industries Limited, which comprises the Balance Sheet as at
31st March, 2020, and the related Statement of Profit and loss and Cash Flow
Statement and the Statement of Changes in Equity for the year then ended, and a summary of
the significant accounting policies and other explanatory information. We have considered
the disclaimer of opinion reported above in determining the nature, timing and extent of
the audit tests applied in our audit of the March 31, 2020 financial statements of Uniply
Industries Limited and this report has not affect our report dated 20th
February 2021 which expressed a qualified opinion on those financial statements.
For N. D. Kapur & Co Chartered Accountants
FRN:001196N
CA Mohit Kumar
Partner M. No: 547715
UDIN: 21547715AAAABK4700
Place: New Delhi
Dated: 20th February 2021
+91-9892691696
