| We have audited the attached Balance Sheet of Unipon (India) Limited as
on 31st December, 2010 and also the Profit and Loss Account & Cash Flow
Statement of the Company for the year ended on that date both 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.
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 management, as well as evaluating the overall financial statement
presentation. We believe that audit provides a reasonable basis for our
opinion.
(1) As required by the Companies (Auditor's Report) Order, 2003 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 paragraph 4 and 5 of the said
Order.
(2) Further to our comments in the Annexure referred to in paragraph 1
above, we report that:
(a) 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.
(b) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of the
books.
(c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
(d) In our opinion, the Balance Sheet, Profit & 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.
(e) Reference is invited to following Notes in Schedule 'P'.
(i) Note No 3 of Schedule-P: regarding non provision of Depreciation on
Fixed Assets amounting to Rs.7,75,382/-resoled into understatement of
profit during the period, accumulated loss and overstatement of amount
of Fixed Assets by this amount.
(ii) Note No.4 of Schedule -P: regarding capital remission benefit of
Rs.3,25,53,999/- on account of Settlement with working capital bankers
in earlier years. The said amount has credited to profit and loss
account instead of capital reserve and the same is not in accordance
with general accounting principles, this accounting treatment has
resulted into overstatement of profit and understatement of capital
reserve by this amount.
(iii) Note No. 5 of Schedule - P : regarding balance confirmations
(f) On the basis of written representations received from the Directors
as on 31st December, 2010 and taken on record by the Board of
Directors, we report that none of the directors are disqualified as on
31st December, 2010 from being appointed as director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956.
Subject to foregoing, in our opinion and to the best of our information
and according to the explanations given to us, the accounts read with
other notes 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 ;
(i) In the case of the Balance Sheet of the state of the affairs of the
Company as at 31st, December, 2010;
(ii) In the case of Profit & Loss Account of the Profit for the year
ended on that date and ;
(iii) In the case of Cash Flow Statement, of the Cash Flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
Annexure referred to in paragraph '1' of the Auditor's Report to the
Members of UNIPON (INDIA) LIMITED on the accounts for the year ended
31st December, 2010.
(i) (a) The Company has maintained proper records to show full
particulars, including quantitative details and situation of fixed
assets.
(b) As informed to us, the Fixed Assets of the company have been
physically verified by the management during the year, which in our
opinion is reasonable having regard to the size of the company and
nature of assets. As informed to us, no material discrepancies were
noticed on such verification.
(c) None of the substantial part of fixed assets has been disposed off
during the year, paragraph 4(i)(c) of the Companies (Auditor's Report)
Order, 2003 (hereinafter referred to as the Order) is not applicable.
(ii) (a) As explained to us, during the year the inventories have been
physically verified by the management. In our opinion, the frequency of
such verification is reasonable.
(b) In our opinion, the procedure of physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the Company and nature of its business.
(c) On the basis of our examination of the record of inventories, we
are of the opinion that, the company is maintaining proper records of
inventories. As informed, no discrepancies noticed on physical
verification of inventories as compared to book records.
(iii) According to the information and explanations given to us, the
company has not taken from or granted loans to parties covered in the
register maintained under Section 301 of the Companies Act, 1956,
paragraphs 4(iii)(a),4(iii)(b) and 4(iii)(c) of the Companies
(Auditor's Report) Order, 2003 (hereinafter referred to as the Order)
are not applicable.
(iv) 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 for the purchase of inventory fixed assets and for sale of
goods. During the course of our audit, no major weakness has been
observed in the internal control system.
(v) (a) According to the information and explanation given to us,
during the year, the company not entered into any transactions that are
required to be entered into the register maintained in pursuance of
section 301 of the Companies Act, 1956, paragraphs 4(v) (a) and 4(v)
(b) of the Companies (Auditor's Report) Order, 2003 (hereinafter
referred to as the Order) are not applicable.
(vi) During the period, the company has not accepted deposits from the
public to which Section 58-A of the Companies Act 1956 of the Companies
(Acceptance of Deposits) Rules 1975, apply.
(vii) According to the information and explanation given to us, the
company has an internal audit system commensurate with the size of the
company and nature of its business .
(viii) As informed to us, the Central Government has not prescribed
maintenance of cost records under section 209 (1) (d) of the Companies
Act, 1956 for any of the products of the Company.
(ix) (a) As explained to us, the statutory dues payable by the Company
comprises of income tax and provident fund. According to the records
of the Company and information and explanations given to us, the
Company is generally regular in depositing the aforesaid undisputed
statutory dues with the appropriate authorities. There are undisputed
Income Tax Deducted at Source of Rs.15,554/- as at December 31, 2008
outstanding for a period of more than six months from the date they
become payable.
(b) According to the information and explanation given to us, the
details of disputed dues are as under:
Name of
the Statute Nature of
the Dues Amount
Rs. Period to
which Forum where
disputes
Amount
relates is pending
Central Exc
ise & Custom Liability
of Excise 19,04,496 2001-02 Commissi
oner of
Liability
of Penalty 21,24,496 Central E
xcise & Su
rat -II
Income Tax Demand of
Income Tax 15,55,000 2004-05 High Court
of
Gujarat,
Ahmedabad
61,19,481 2006-07 ITO Ward 8
(4) Ahme
dabadf
(x) The accumulated losses of the company at the end of financial year
are not more than fifty percent of its net worth The company has earned
profit in the end of the year and the Company has incurred cash losses
during the immediately preceding such period.
(xi) As informed to us and according to the information and explanation
given to us, the Company has not defaulted in repayment of dues to
financial institutions, banks and debenture holders.
(xii) As Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities;
paragraph 4(xii) of the Order is not applicable.
(xiii) As the Company is not a chit fund/Nidhi/mutual benefit
funds/society to which the provisions of special statute relating to
chit fund are applicable, paragraph 4(xiii) of the order is not
applicable.
(xiv) On the basis of records verified by us, we report that proper
records have been maintained of the transactions and contracts and
timely entries have been made therein. The Shares and securities have
been held by the company in its own name.
(xv) As informed to us , the company has not given any guarantee for
loans taken by others from banks, paragraph 4(xv) of the Order is not
applicable.
(xvi) During the year, the company has not obtained the term loan,
paragraph 4(xvi) of the Order is not applicable.
(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 has been raised on short-term basis and funds raised for
long- term basis have not been utilized for short term purposes.
(xviii) As the Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act, paragraph 4(xviii) of the Order is not applicable.
(xix) During the year, the Company has not issued any debentures;
paragraph 4(xix) of the Order is not applicable.
(xx) During the year, since the company has not raised money by way of
public issue, paragraph 4(xx) of the Order is not applicable.
(xxi) Based upon the audit procedures performed and information and
explanation 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 the year ended Dec 31, 2011.
For DEVPURA NAVLAKHA & CO,
Chartered Accountants
Place: Ahmedabad. (Ashwini Devpura)
Date : 10th February, 2011 PARTNER
FRN:121975W
Membership No. 47390 | 