United Spirits
BSE: 532432 | NSE: MCDOWELL-N | ISIN: INE854D01016 | Breweries & Distilleries
- Directors Report
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- Auditors Report
- Notes To Accounts
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| Auditor's Report | Year End : Mar '09 |
1. We have audited the attached Balance Sheet of United Spirits
Limited, as at March 31, 2009, and the related Profit and Loss Account
and Cash Flow Statement for the year ended on that date annexed
thereto, which we have signed under reference to this report. These
financial statements are the responsibility of the Companys
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
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003, as
amended by the Companies (Auditors Report) (Amendment) Order, 2004
(together the Order), issued by the Central Government of India in
terms of sub- section (4A) of Section 227 of The Companies Act, 1956
of India (the Act) and on the basis of such checks of the books and
records of the Company as we considered appropriate and according to
the information and explanations given to us, we give 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 in paragraph 3
above, we report that:
4.1. 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;
4.2. 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 those books;
4.3. The Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
4.4. 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 to in sub-section (3C) of section 211 of
the Act;
4.5. On the basis of written representations received from the
directors, as on March 31, 2009, and taken on record by the Board of
Directors of the Company, none of the directors is disqualified as on
March 31, 2009 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Act;
4.6. In our opinion and to the best of our information and according
to the explanations given to us, the said financial statements,
together with the notes thereon and attached thereto, give, in the
prescribed manner, the information required by the Act and also 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 March 31, 2009;
ii) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Annexure to the Auditors Report
[Referred to in paragraph 3 of the Auditors Report of even date to the
members of United Spirits Limited on the financial statements for the
year ended March 31, 2009]
1. (a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets are physically verified by the management
according to a phased programme designed to cover all the items over a
period of three years, which in our opinion is reasonable having regard
to the size of the Company and the nature of its assets. Pursuant to
the programme, a portion of the fixed assets has been physically
verified by the management during the year and no material
discrepancies between the book records and the physical inventory have
been noticed.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
off by the Company during the year.
2. (a) The inventory (except those in transit at the year-
end amounting to Rs.123.794 Million) has been physically verified by
the management during the year. In our opinion, the frequency of
verification is reasonable.
(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) On the basisof our examination of inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
3. (a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under Section 301 of the Act and, accordingly, sub clauses (b), (c) and
(d) of clause (iii) of Paragraph 4 of the Order are not applicable.
(b) The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under Section 301 of the Act and accordingly, sub clauses (f) and (g)
of clause (iii) of Paragraph 4 of the Order are not applicable.
4. In our opinion and according to the information and explanations
given to us, having regard to the explanation that certain items
purchased are of special nature for which suitable alternative sources
do not exist for obtaining comparative quotations, there is an adequate
internal control system 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. Further, on the basis
of our examination of the books and records of the Company, and
according to the information and explanations given to us, we have
neither come across nor have been informed of any continuing failure to
correct major weaknesses in the aforesaid internal control system.
5. (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
referred to in Section 301 of the Act have been entered in the register
required to be maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rupees Five Lakhs in respect of
any party during the year have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time
except for sale of goods aggregating to Rs.649.482 million and purchase
of services aggregating to Rs.94.938 million as there are no market
prices comparable to those sold/ purchased, which, however, are
considered to be of special nature as explained by the management of
the Company.
6. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
58A and 58AA or any other relevant provisions of the Act and the
Companies (Acceptance of Deposits) Rules, 1975 with regard to the
deposits accepted from the public. According to the information and
explanations given to us, no Order has been passed by the Company Law
Board or National Company Law Tribunal or Reserve Bank of India or any
Court or any other Tribunal on the Company in respect of the aforesaid
deposits.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8. The Central Government of India has not prescribed the maintenance
of cost records under clause (d) of sub-section (1) of Section 209 of
the Act for any of the products of the Company.
9. (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
is generally regular in depositing the undisputed statutory dues
including provident fund, investor education and protection fund,
employees state insurance, income-tax, wealth tax, service tax,
customs duty, excise duty and cess, and other material statutory dues,
as may be applicable, with the appropriate authorities except dues with
respect to sales-tax. The extent of the arrears of statutory dues
outstanding as at March 31, 2009 for a period of more than 6 months
from the date they became payable in respect of sales - tax is as
follows :
Period to Date of
Name of Nature Amount which the Due Pay-
the of (Rs. in amount date ment
statute dues Million) relates
Maharashtra Not
Value Added Sales 12.938 2005-06 April 1, yet
Tax, 2002 2006 paid
(b) According to the information and explanations given to us and the
records of the Company examined by us, the particulars of dues of
income- tax, sales-tax, wealth tax, service tax, customs duty, excise
duty and cess as at March 31, 2009, which have not been deposited on
account of a dispute, are given in Appendix-1.
10. The Company has neither accumulated losses as at March 31, 2009
nor has it incurred any cash loss either during the financial year
ended on that date or in the immediately preceding financial year.
11. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders as at the balance sheet date.
12. In our opinion, the Company has maintained adequate documents and
records in the cases where the Company has granted loans and advances
on the basis of security by way of pledge of shares, debentures and
other securities.
13. The provisions of any special statute applicable to chit fund/
nidhi/ mutual benefit fund/ societies are not applicable to the
Company.
14. In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
15. In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company, for loans taken by others from banks or financial institutions
during the year, are not prejudicial to the interest of the Company.
16. In our opinion, and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purposes for which they were obtained.
17. On the basis of an overall examination of the balance sheet of the
company, in our opinion and according to the information and
explanations given to us, there are no funds raised on a short-term
basis which have been used for long-term investment.
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 debenture during the year..
20. The Company has not raised any money by public issues during the
year.
21. 21. During the course of our examination of the 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, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
Annexure to the Auditors Report
[Referred to in paragraph 9(b) of the Annexure to the Auditors report
of even date to the members of United Spirit: Limited on the financial
statements for the year ended March 31, 2009].
Amount Forum where
Name of the Statute (Rs.in dispute Year To Which The Amount
Milli- is pending Relates
on)
1993-94,1994-95,1999-00,
2000-01, 2001-02, 2002-03 to
The Income-Tax 2005-06
Act, 1961 126.203 Commissioner
of Income-
Tax Appeals
3.620 Assessing
Officer 2003-04
140.476 Income Tax
Appelate
Tribunal 2003-04, 2004-05, 2005-06
The Wealth-Tax Act, 1957 - Commissioner
of Income
Tax -Appeals
- 1992-93,1994-95,1996-97
Central and Respective
State 199.471 Supreme 1996-06
Sales Tax Acts Court 1982-83,1984-86,1992-93,
56.825 High 1995-96,1996-97,
Court 1997-98,1997-00,1999-00,
2002-03,2003-04,2006-07
88.749 Appellate 1986-90,1985-86,1986-87,
Tribunal 1987-88, 1988-89,1989-96,
1990-91,1991-92, 1991-93,
1994-95,1995-96,1996-97,
1997-98, 1997-01,1998-99,
1999-00, 2000-01
15.756 Joint 1984-85,1985-86,1987-88,
Commissioner 1991-92, 1992-93,2000-01,
2006-07,2007-08
8.848 Deputy
Commissioner 1984-85,1992-93,2002-03
0.291 Commissioner
of Sales Tax 1999-00, 2000-01
1.995 Assistant
Commissioner 1974-76, 1995-96,1996-97,
2002-03,2008-09
7.183 Assessing
Officer 1993-94,1995-96,1997-98,
2003-04,2004-05
0.892 Appellate
and
Revisional
board 1993-94,2004-05,2005-06
115.431 Additional
Commissioner 2002-03, 2004-05, 2005-06
1971-72,1972-73,1973-74,
1977-78,1978-79,
Respective State
Excise Acts 4.785 Supreme Court
1963-64,1972-74,1983-84,
1984-85, 1985-86,1986-87,
1988-91, 1990-91,1991-92,
1992-93,
265.885 High Court 1993-94,1995-00,1996-97,
1997-98,1998-99,
1998-01, 1999-00, 2000-01,
2001-09,2002-03, 2003-04.
17.464 Appellate
Tribunal 1995-96 1974-81,1980-81,
1981-82,1982-83,1983-84,
1983-85,1984-85,1984-85,
1985-86,1986-87,1985-87,
1987-88,1987-89,1988-89,
1989-90,
193.185 Excise
Commssioner 1991-92, 1995-96, 1993-94,
1995-98,1993-96,1998-99,
1999-00, 2001-02, 2002-03,
2004-05, 2005-06.
1.593 Excise
Superinten-
dent 1986-87,1992-93,1992-99,
1997-98, 2001-02
1.701 District
Magistrate
and
Collector 1994-95
12.170 Chinsurah
Court,>
hooghly 1981-84
8.311 Additional
District
Magistrate 1993-94
0.081 Collector 1994-95
The Central Excise
Act, 1944 6.000 Supreme Court
25.635 High Court 1989-97,1996-97,2004-05
2.363 Commissioner 1995-96, 2003-04
of Central
excise
- Assistant
Commissioner 1995-96
* Net of amounts paid under protest or otherwise
J. Majumdar
Partner
Membership Number- F 51912
For and on behalf of Price Waterhouse
Chartered Accountants
Place : Bangalore
Date : July 29, 2009 |
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| Source : Religare Technova | |
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