We have audited the attached Balance Sheet of UNIFLEX CABLES LIMITED as
at 31st March, 2011, 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.
We have 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 misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosure 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
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 annex here to a Statement on the matters
specified in paragraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred to above, we report
1. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
2. 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 such
books of the Company.
3. The Balance Sheet, Profit and Loss Account and the Cash Flow
Statement referred to in this report are in agreement with the books of
4. In our opinion the attached Balance Sheet as on 31st March, 2011
and the Profit and Loss Account and the Cash Flow Statement for the
period ended on that date, comply with the Accounting Standards
referred to in Section 211(3C) of the Companies Act, 1956.
5. Based on representations made by all the Directors of the Company
and the information and explanations as given by the Directors, none of
the Directors of the Company are disqualified as on 31st March, 2011
from being appointed as directors in terms of clause (g) of sub section
(1) of Section 274 of the Companies Act, 1956.
We report that in our opinion and to the best of our information and
according to the explanations given to us, the said accounts read
together with relevant notes thereon, give the information required by
the Companies Act, 1956, in the manner so required and present a true
and fair view in conformity with the accounting principles generally
accepted in India: -
i) in so far as it relates to the Balance Sheet, of the State of
affairs of the Company as at 31st March, 2011,
ii) in so far as it relates to the Profit and Loss Account, of the loss
of the Company for the period ended on that date and
iii) in so far as it relates to the Cash Flow Statement, of the cash
flows for the period ended on that
ANNEXURE REFERRED TO IN OUR REPORT OF EVEN DATE ON THE ACCOUNT FOR THE
PERIOD ENDED 31st MARCH, 2011 OF UNIFLEX CABLES LTD.
On the basis of such checks as we considered appropriate and in terms
of information and explanations given to us, we state that:
i) a) The Company has generally maintained proper records showing
particulars including quantitative details and situation of fixed
b) As explained to us, some of the fixed assets have been physically
verified by the management during the year in a phased periodical
manner, which in our opinion is reasonable, having regard to the size
of the Company and nature of its assets. Accordingly, a portion of the
Fixed Assets has been physically verified by the Management during the
year. According to the information and explanations given to us, no
material discrepancies were noticed on such physical verification.
c) During the year, the Company has not disposed off any substantial
part of the Fixed Assets, so as to affect its going concern status.
ii) a) The inventory has been physically verified during the year by
the management. In our opinion, the
frequency of verification is reasonable. As per the explanations given
to us, no inventory was lying with outside parties.
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 is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
iii) a) According to the information and explanations given to us the
Company has not taken or granted any loans, secured or unsecured from/
to companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956 except unsecured loans of
Rs. 1,77,24,24,815/- (Maximum amount outstanding Rs. 1,77,24,24,815/-
during the year) had been taken from two parties during the year as
listed in the register maintained under Section 301 of the Companies
b) The rate of interest & other terms & condition of the loan taken by
the Company is prima facie not prejudicial to the interest of the
c) Since there is no stipulation of the repayment of the loan, the
question of repayment of the same does not arise. The Company is
regular in paying the interest on the above-mentioned loan taken.
iv) In our opinion and according to the information
and explanations given to us, there are generally adequate internal
control procedures commensurate with the size of the Company and the
nature of its business with regard to purchases of inventory, fixed
assets and with regard to the sale of goods. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal controls.
v) a) On the basis of audit procedures performed by us and according to
information and explanations and representations given to us, we are of
the opinion that the disclosure of interest by Directors in Company in
which such directors were interested as contemplated under Section 299
of the Companies Act, 1956 and which were required to be entered in the
register maintained under Section 301 of the said Act, have been so
b) In our opinion and according to information and explanations given
to us, the transactions made in pursuance of contacts or arrangement
entered in the register maintained under Section 301 of the Companies
Act, 1956 exceeding the value of rupees five lacs in respect of any
party during the year have been made at prices which are reasonable
having regard to prevailing market prices at that time or prices at
which transactions, if any, for similar goods/services have been made
with other parties at the relevant time.
vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any Deposits from Public. The
Company Law Board has passed no order in respect of the Company.
vii) The Company has appointed a firm of Chartered Accountant as an
Internal Auditor. The Internal Auditors have generally covered the
various aspects of the working of the Company.
viii) We have broadly reviewed the books of account 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
accounts and records have been made and maintained. We have, however
not made a detailed examination of the records with a view to
determining whether they are accurate and complete.
ix) a) The Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
employees' state insurance, income tax, sales tax, wealth tax, custom
duty, cess, investor's education and protection fund and other material
statutory dues applicable to it.
b) On the basis of our examination of the documents and records, the
following disputed statutory dues on account of excise duty, income
tax, which have not been deposited with the appropriate authorities,
are as follows:
Nature of Amount (Rs.) Forum where Period
the dues In lacs dispute is to which
Excise Duty 66,92,604 CESTAT, 2001
Excise Duty 15,16,541 CESTAT, Vapi 2001
Sales Tax 3,91,94,483 CST, Surat, 2006/07
Sales Tax 10,49,705 CST , Jaipur 2008/09
x) In our opinion, the accumulated losses of the Company are more than
fifty percent of its net worth. The Company has incurred cash losses
during the financial year covered by our audit. The Company had
incurred cash loss in the immediately preceding financial year. In
fact, the entire net worth of the Company has been eroded at the end of
the financial year
xi) The Company has not defaulted in repayments of dues to banks and
debenture holders. There was no borrowing from financial institution
during the year.
xii) The Company has not granted any 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 (Auditor's Report) Order, 2003 is not
applicable to the Company.
xiv) According to the information and explanations given to us and the
representations made by the management, we are of the opinion that the
Company has not given any guarantees for loans taken by others from
banks or financial institutions.
xv) The Term Loans have been applied for the purpose for which the
Loans have been obtained.
xvi) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company and after
placing reliance on the reasonable assumptions made by the Company for
classification of long term and short-term usages of the funds, we
report that no funds raised on short- term basis have been used for
long-term investment. No long-term funds have been used to finance
short- term assets except permanent working capital.
xvii) The Company has not made preferential allotment of shares to
parties covered in the register maintained under Section 301 of the Act
during the year.
xviii) There are no debentures outstanding at the end of the year.
xix) The Company has not made any public issue during the year.
xx) According to the information and explanations given to us and to
the best of our knowledge and belief, no fraud on or by the Company has
been noticed or reported by the Company during the course of our audit.
For RASHMIZAVERI & CO.
Membership No. 5299
Firm No. 108683W
Place : Mumbai
Date : 26th May, 2011