1. We have audited the attached Balance Sheet of Uni Abex Alloy
Products Limited as at 31st March, 2012, together with the Statement of
Profit and Loss of the Company for the year ended on that date annexed
thereto and the Cash Flow Statement for the year ended on that of the
company date. 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 the 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 our audit provides a reasonable basis for
3. As required by the Companies (Auditor''s Report) Order, 2003,
issued by the Company Law Board in terms of Section 227 (4A) of the
Companies Act, 1956, we annex hereto a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments referred to in paragraph (3) above, we
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
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 the
c) The Balance Sheet, Statement of Profit and Loss dealt with by this
report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Statement of Profit and Loss
dealt with by this report are in compliance with the accounting
standards referred to in Section 211 (3C) of the Companies Act, 1956;
e) On the basis of the written representations received from the
Directors, as on 31st March, 2012 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31 st March, 2012 from being appointed as a director in terms of
Section 274 (1)(g) of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, the accounts read with the 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 affairs of the
Company as at 31st March, 2012;
ii) in the case of the Statement of Profit and Loss, 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.
As required by the Companies (Auditor''s Report) Order, 2003, issued
by the Central Government in terms of Section 227 (4A) of the Companies
Act, 1956 (the Act), and on the basis of such checks as we considered
appropriate and according to the information and explanations given to
us during the course of the audit, we further report that: -
1. (a) The Company has maintained records showing full particulars,
including quantitative details and situation of its fixed assets.
(b) The fixed assets of the Company have been physically verified by
the management during the year as per the programme of verification
drawn up which in our opinion is reasonable having regard to the size
of the Company and the nature of its assets. We are informed that no
material discrepancies were noticed on such verification as compared to
(c) During the year, the Company has not disposed off a substantial
part of fixed assets so as to affect the going concern status of the
2. (a) The stocks of finished goods, raw materials, stores and spare
parts have been physically verified by the management at reasonable
intervals during the year. In our opinion the frequency of verification
(b) In our opinion, 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 has maintained proper records of inventory and the
discrepancies between the physical inventory and the book records
noticed on physical verification were not material and have been
properly dealt with in the books of account.
3. The Company has not granted or taken any loans, secured or
unsecured, to/from companies, firms or other parties covered in the
register maintained under Section 301 of the Act.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems 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 neither been informed
nor have we observed any continuing failure to correct major weaknesses
in internal control system.
5. a) On the basis of our examination of the books of account and
based on the information and explanations provided by the management,
we are of the opinion that the particulars of contracts and
arrangements that need to be entered into the register in pursuance of
Section 301 of the Act have been so entered in the said register.
b) In our opinion and according to the information and explanation
given to us, the aforesaid transactions in pursuance of contracts and
arrangements aggregating in value during the year to more than five
lakhs rupees in respect of each party have been made at prices which
are reasonable having regard to the prevailing market prices.
6. The Company has not accepted any deposits from the public within
the meaning of the provisions of Sections 58A, 58AA or any other
relevant provisions of the Act.
7. The Company has an internal audit system, which in our opinion is
commensurate with its size and nature of its business.
8. The Central Government has prescribed maintenance of cost records
under section 209(1 )(d) of the Companies Act, 1956 in respect of the
products manufactured by the Company. We have broadly reviewed the
books of account maintained by the Company and are of the opinion that
prima facie, the prescribed accounts and records have been made and
9. a) According to the information and explanations given to us by
management and on the basis of the examination of the books of account
carried out by us, the Company has been regular in depositing
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees'' State Insurance, Income-tax,
Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and
the statutory dues with the appropriate authorities. There were no
undisputed arrears of statutory dues outstanding as at 31st March,
2012, for a period of more than six months from the date they became
b) According to the information and explanations given to us by
management and the records of the Company examined by us, there were no
disputed dues in respect of Sales-tax, Income Tax, Custom Duty, Wealth
Tax, Service Tax, Excise Duty and Cess which have not been deposited as
on 31st March, 2012 except as stated below :
Nature of Period Amount Forum where dispute
dues (Rs In Lacs)
1. Sales Tax (F.Y. 1997-98, to
1999-00, 283.11 Dy. Commissioner
2004-05) Commisioner of
Sales Tax Appeals
2. Excise Duty (F.Y. 1995-96,
1997-98 29.81 Dy. Commissioner of
2003-04, Central Excise
3. Excise Duty (F.Y. 2001-02, F.Y.
2003-04 19.18 Customs, Excise,
to 2009-10) Appellate Tribunal
4. Income Tax (A.Y.2005-06,2006-07) 16.13 Commissioner of
10. The Company does not have any accumulated losses as at 31st March,
2012, nor has it incurred any cash loss during the financial year ended
on that date and in the immediately preceding financial year.
11. The Company has not defaulted in repayment of dues to the banks
during the year. The Company did not have any dues payable to financial
institutions or to debenture holders during the year.
12. As per the books and records of the Company examined by us, the
Company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. Clause (xiii) of the Order is not applicable as the Company is not
a chit fund company or nidhi/ mutual benefit fund/ society.
14. The Company has not dealt or traded in shares, securities,
debentures or other investments during the year.
15. According to the information given to us and as per the records
examined by us, the Company has not given any guarantee for the loans
taken by others from banks or financial institutions during the year.
16. The Company has not taken or applied any term loan during the
17. 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
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money by public issue during the
21. During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices in India, we have neither come across any instance of fraud
on or by the Company, either noticed or reported during the year, nor
have we been informed of any such case by the management.
For Ford, Rhodes, Parks & Co.
Firm''s Registration No. 102860W
Mumbai, 29th May, 2012 Membership No.35296