| 1. We have audited the attached Balance Sheet of UBE Industries
Limited as at 31st March, 2012, the Profit and Loss Account and also
the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Company's 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 statements 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 the 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 (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of Section 227(4A) 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 purpose of our
audit.
ii) 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
these 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 accounts.
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 in Section 211(3C) of the Companies Act, 1956 to the
extent applicable.
(v) On the basis of the written representations received from the
directors as on 31.03.2012 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2012 from being appointed as 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 accounts read in conjunction with the
notes and accounting policies thereon 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 Balance Sheet of the state of affairs of the company
as at 31st March, 2012;
b) In the case of the Profit and Loss Account of the 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.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF AUDITORS' REPORT OF EVEN DATE ON
THE ACCOUNTS OF UBE INDUSTRIES LIMITED FOR THE YEAR ENDING 31ST MARCH,
2012
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
(b) As explained to us, the fixed assets have been physically verified
by the management according to the phased programme designed to cover
all the fixed assets on rotation basis. In respect of fixed assets
verified according to this programme, which is considered reasonable,
no material discrepancies were noticed on such verification. As regards
capital works in-progress, no such asset held by the company, the same
will be verified by the management on completion of assets.
(c) As explained to us, no fixed assets disposed off during the year,
hence the verification procedure are not applicable to the company.
(d) During the financial year, the company has capitalized the entire
capital work in progress of which is belongs to Projects and Contract
Division.
2. (a) The Inventories of the company have been physically verified by
the Management during the year at reasonable intervals except no stocks
lying with others which have been verified with reference to
confirmation, certificates and others relevant documents where
available.
(b) The procedures of physical verification of inventories 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 has maintained proper records of inventories and the
discrepancies noticed on physical verification of stocks has compared
to book records, which in our opinion were not material, have been
properly dealt with in the books of accounts.
(d) The Company has not taken any interest free unsecured loan from a
party covered in the register maintained under section 301, of the
Companies Act, 1956 hence the rate of interest and other terms and
conditions or its repayment procedures are not applicable.
3. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and for the
sale of goods. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal controls
with regard to purchase of inventory, fixed assets and for the sale of
goods.
4. (a) According to the information and explanations given to us as
confirmed by the Company Secretary of the Company, we are of the
opinion that the no transactions that are need to be entered into the
register maintained under section 301 of the Companies Act, 1956.
(b) In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of Rs. 5,00,000/- in
respect of any party during the year have been made at prices which are
reasonable having regard does not arise.
5. According to the information and explanations given to us, the
Company has not accepted any deposits from the public covered by the
directions issued by the Reserve Bank of India and the provisions of
Section 58AA of the Companies Act, 1956 and the rules framed there
under where applicable and issuance of Order by the Company Law Board
in this regard does not arise.
6. As per the information and explanations given to us by the
management, the Company's internal control procedures together with
internal checks conducted by the management staff during the year can
be considered as an internal audit system commensurate with the size
and nature of its business.
7. We have broadly reviewed without making a detailed examination of
the records maintained by the Company pursuant to the order made by the
Central Government for the maintenance of cost records under Section
209(1)(d) of the Companies Act, 1956 and are of the opinion that prima
facie the prescribed records have been made and maintained.
8. (a) According to the records of the Company and as per the
information and explanations given to us, the Company is regular in
depositing with appropriate authorities undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Customs
duty, Excise duty, Cess and other material statutory dues, as on
31.03.2012 Rs. 0 which are outstanding for a period of more than six
months from the date they became payable.
(b) According to the records of the Company and as per the information
and explanations given to us, there are no dues of Sales Tax, Customs
Duty, Wealth Tax and Cess which have not been deposited on account of
any dispute as on 31.03.2012 except Income Tax the details of which are
as given under:
- Income Tax Liability pertaining to the assessment year 1993-1994 is
Rs. 36,20,286/- and the company has preferred an appeal before the
income Tax appellate Tribunal, no provision is made in this regard
since the appeal is pending.
9. As per the information and explanations given to us and on an
overall examination of the financial statements of the company for the
current and immediately preceding financial year, we report that the
Company does not have any accumulated losses at the end of the current
financial year nor incurred cash losses in the current and immediately
preceding financial year.
10. According to records of the Company, that the company does not
taken any loans from financial institution or bank or debenture
holders, hence the repayment procedure or due or overdue or default and
its verification procedure are not applicable.
11. As per the information and explanations given to us, the Company
has not granted any loans and advances on the basis of security by way
of pledge of share, debentures and other securities to any body during
this year.
12. In our opinion ,as the Company is not a chit fund or a nidhi or
mutual benefit fund or society, the provisions of Clause 4(xiii) of the
Companies (Audit Report) Order, 2003 are not applicable to the Company
for this year.
13. According to the records of the Company, the investments made in
the nature of shares in other Companies are held in the name of the
Company and necessary records recording the transactions and relevant
entries have been maintained. However, during the current financial
year, the Company has not made any transactions of the dealing or
trading in shares, securities, debentures and other investments.
14. As per the information and explanations given to us, that the
company does not given any guarantees for loans taken by others from
financial institutions hence the verification of interest conditions or
its guarantees outstanding are not applicable.
15. According to records of the Company has not raised any term loans
during the year hence its application procedure are not applicable.
16. As per the information and explanations given to us and on an
overall examination of the balance sheet and cash flow statement of the
company, we report that no long term funds raised during the year,
hence its utilization procedures are not applicable.
17. As per the information and explanation given to us, during the
year the Company has not made any preferential allotment of shares to
parties and Companies covered in the Register maintained under section
301 of the Companies Act, 1956.
18. The Company has not issued any debentures during the year, which
requires the creation of security.
19. During the year the Company has not made any public issues for
which the management has to disclose the end use of money raised
through that public issue.
20. As per the representation given by the Company and relied on by
us, no fraud on or by Company has been noticed or reported during the
year.
for C.V.S. Balachandra Rao & Co.,
Chartered Accountants
Firm Registration No.: 007507S
C.V.S. Balachandra Rao
Partner
Membership No. 204580
Place : Hyderabad
Date : 31.08.2012
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