We have audited the accompanying financial statements of Uniply
Industries Limited (the Company), which comprise the Balance Sheet as
at 31st March, 2014, the Statement of Profit and Loss and the Cash
Flow Statement for the year then ended, and a summary of the signifi
cant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash fl ows of the Company in accordance
with the Accounting Standards notifi ed under the Companies Act, 1956
(the Act) read with the General Circular 15/2013 dated 13th September
2013 of the Ministry of Corporate Affairs in respect of section 133 of
the Companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control 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.
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgement, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers the internal control relevant to the
entity''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity''s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by the management, as
well as evaluating the overall presentation of the financial
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the
information required by the Act 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 the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
(b) in the case of the Statement of Profit and Loss, of the Loss for
the year ended on that date, and
(c) in the case of the Cash Flow Statement, of the cash fl ows for the
year ended on that date. Report on Other Legal and Regulatory
1. As required by the Companies (Auditor''s Report) Order, 2003 (the
Order) issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specifi ed in paragraphs 4 and 5 of the order.
2. As required by section 227 (3) of the Act, 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
(b) 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
(c) The Balance Sheet, Statement of Profit and Loss, and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards notifi
ed under the Companies Act, 1956 read with the General Circular 15/2013
dated 13 September 2013 of Ministry of Corporate Affairs in respect of
section 133 of the Companies Act, 2013; and
(e) On the basis of the written representations received from the
directors as on 31st March, 2014 taken on record by the Board of
Directors, none of the directors are disqualified as on 31st March,
2014 from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Act.
ANNEXURE REFERRED TO IN PARA 1 UNDER THE HEADING OF REPORT ON OTHER
LEGAL AND REGULATORY REQUIREMENTS OF OUR REPORT OF EVEN DATE:
In the terms of the information and explanations given to us and the
books and records examined by us in the normal course of audit and to
the best of our knowledge and belief, we state that:
1) 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 verifi ed by the management at
reasonable intervals. No material discrepancies were noticed on verifi
cation made during the year.
c) The Company has not disposed off its substantial part of the fixed
assets during the year and as such has not affected the going concern
of the company.
2) a) The management has conducted physical verifi cation of inventory
at reasonable intervals.
b) The procedures of physical verifi cation 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 is maintaining proper records of inventory. No material
discrepancies in inventory were noticed during the physical verifi
cation as compared to the books and records.
3) According to the information & explanations given to us, the company
has neither taken nor granted any secured or unsecured loans to
companies, fi rms or other parties listed in the register maintained
under Section 301 of the Companies Act, 1956.
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. Accordingly the issue of continuing failure to correct major
weakness in internal control system does not arise.
5) a) In our opinion and according to information and explanation given
to us, there are no contracts
or arrangements that need to be entered in the register maintained
under section 301 of the Companies Act, 1956.
b) In our opinion and according to information and explanation given to
us, as there are no contracts or arrangements that need to be entered
under section 301 of Companies Act, 1956, paragraph (v) (b) of the
order is not applicable.
6) The company has not accepted any deposits from the public.
7) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8) We have broadly reviewed the books of accounts maintained by the
company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209(1)(d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been maintained.
9) a) The company is generally regular in depositing undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Income Tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty, Cess and other statutory dues applicable to
it with appropriate authorities and there are no arrears of outstanding
statutory dues as at the last day of the financial year concerned for
a period of more than six months from the date they became payable.
b) According to the records of the Company there are no dues
outstanding of Income Tax, Value Added Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty, Cess on account of any dispute, except the
S.No Name of Statute Nature of Dues Amount
1 Tamil Nadu Value VAT - On SEZ 54,21,138
Added Tax, 2006 Sales
2 Tamil Nadu Value VAT-Penalty on 70,233
Added Tax, 2006 ITC
Name of Statute Period to which Forum Where
the amount dispute is pending
Tamil Nadu Value
Added Tax, 2006 2007-2008 Commissioner
Commercial Tax Dept
Tamil Nadu Value
Added Tax, 2006 2006-2007 Commissioner
Commercial Tax Dept
10) The company has accumulated losses at the end of the financial
year and has incurred cash loss during the financial year and has also
incurred cash loss during the immediately preceding financial year.
11) Based on the information and explanations given by the management,
we are of the opinion that the Company has not defaulted in repayment
of dues to banks and financial institutions. The company has no
outstanding dues to debenture holders.
12) According to the information and explanations given to us, the
company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13) In our opinion, and according to the information and explanations
given to us, the nature of activities of the company does not attract
the provisions of any special statute applicable to chit fund and nidhi
or mutual benefit fund or societies.
14) In our opinion, the company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the company.
15) According to information and explanations given to us, the company
has not given any guarantee for loans taken by others from banks or
other financial institutions.
16) The term loans availed have been used for the purpose for which it
has been availed.
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 or companies covered in the register maintained under section
301 of the Companies Act 1956 during the year.
19) The company has not issued any debentures and as such the creation
of security or charge does not arise.
20) The company has not raised any money through public issue during
21) During the course of our examination of books and records of the
company, carried out in accordance with the generally accepted auditing
practices in India, and according to the information and explanations
given to us by the management, we have neither come across any
instances of fraud report on or by the company, noticed or reported
during the year nor have we been informed of such case by the
For C. Ramasamy & B. Srinivasan
Place: Chennai Partner
Date: 20.05.2014 Mmebership No: 23714