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Udaipur Cement Works Ltd.

BSE: 530131 | NSE: JKUDYOG | Series: NA | ISIN: INE225C01029 | SECTOR: Cement - Major

BSE Live

May 28, 15:40
9.45 -0.13 (-1.36%)
Volume
AVERAGE VOLUME
5-Day
81,745
10-Day
89,504
30-Day
79,009
21,484
  • Prev. Close

    9.58

  • Open Price

    9.70

  • Bid Price (Qty.)

    9.35 (100)

  • Offer Price (Qty.)

    9.55 (442)

NSE Live

Dec 27, 11:22
1.30 -0.30 (-18.75%)
Volume
No Data Available
10,925
  • Prev. Close

    1.60

  • Open Price

    -

  • Bid Price (Qty.)

    - (0)

  • Offer Price (Qty.)

    - (0)

Udaipur Cement Works is not listed on NSE

Annual Report

For Year :
2018 2017 2016 2015 2014 2012 2011 2010 2008

Auditor's Report

We have audited the attached Balance Sheet of Udaipur Cement Works Limited as at 31st December 2008, the Profit & 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 Companys 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 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 presentation. We believe that our audit provides a reasonable basis for our opinion. 1. As required by the Companies (Auditors report) Order, 2003 (The Order) (as amended) issued by the Central Government of India in terms of section 227(4A) of the Companies Act, 1956(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 during the course of audit, we enclose in the Annexure, a statement on the matters specified in the paragraphs 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 account as required by law have been kept by the company so far as appears from our examination of those 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 and to the best of our information, the profit & Loss Account, Balance Sheet and the Cash Flow Statement comply with the accounting standards referred to in section 211 (3C) of the Companies Act, 1956, to the extent applicable except to the extent non - provision of interest liability etc. and preparation of accounts on going concern basis (AS-1), non-provision for leave encashment, (note no. 2-AS 15), non- determination of current net Realisable Value of Inventory and Non- determination/ non- provision of obsolete and unusable assets and Inventory and for impairment of assets(note no.3- AS-2, AS-10 and AS-28); e) On the basis of written representations received from the directors, as on 31st December, 2008, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st December, 2008 from being re-appointed as a director of the company in terms of the clause (g) of sub- (1) of section 274 of the companies Act, 1956. However all the directors of the company are disqualified to be appointed/ reappointed as directors in any other public company; f) Attention is invited to: (i) Note no. 1 & 11 of Schedule 14 regarding preparation of accounts on going concern basis for the reasons stated in the said notes and our inability to comment thereon; (ii) Note no. 2 of Schedule 14 regarding non-provision of salary , wages , allowances and other benefit etc. as stated in the said note (amount unascertained). (iii) Note no. 3 of Schedule 14 regarding valuation of respective inventories as valued, considered same as in the previous year and have been taken on the same value as in the previous year and non provision of adjustment of lower of net realisable value over cost of inventories and non provision for obsolete, shortages, damaged and non-moving, inventories and fixed assets and for impairment of assets (amount unascertained) as stated in the said note. (iv) Note no. 4(a) of Schedule 14 regarding non provision of interest on secured loans, bank borrowings, trade deposits, royalty, dues payable to Ajmer Vidyut Vitaran Nigam Ltd. (AWNL), excise duty demand and penal interest, liquidated damages, etc. thereon as stated in the said note (amount unascertained and regarding non-accounting of interest earned on certain deposits. (v) Note No. 4(c) of Schedule 14 regarding non-accounting of interest earned on certain deposits as stated in the said note (amount unascertained). (vi) Note No. 14 of Schedule 14 regarding non-provisiorl against overdue debtors amounting to Rs. 3,78,70,578 and loans and advances amounting to Rs. 4,72,70,130. (vii) Note No. 21,14, 6 & 11 of Schedule 14 regarding pending reconciliation/ confirmation of balances of secured loans, unsecured loans, deferred interest, creditors, other current liabilities, banks, deposits, debtors, loans and advances and contingent liabilities considered to the extent identified by the management and our inability to comment thereon. (viii) Note No. 13 of Schedule 14 regarding non-provision of interest on overdue liability of Sundry Creditors under Current Liabilities & Provisions as defined under the Micro, Small and Medium Enterprises Development Act, 2006 (amount unascertained) and identification of such parties and their dues by the management and our inability to comment on the same. We further report that the loss for the year, balance in profit & loss account, assets and liabilities as stated are withbut considering the impact of items mentioned in para (f)(i) to (v), (vii) & (viii) above. Had the observation made in para (f) (v) above been considered, loss for the year would have been Rs. 15,98,15,010 (as against reported Figure of Rs 7,46,74,302), debit balance in profit & loss account would have been Rs. 2,97,11,13,194 (as against reported figure of Rs. 2,88,59,72,486), debtors would have been Rs. Nil (as against reported figure of Rs. 3,78,70,578) and loans & advances would have been Rs. 10,00,00,000 (as against reported figure of Rs. 14,72,70,130). Subject to the foregoing, in our opinion and to the best of our information and according to the explanations given to us, the said balance sheet, profit & Loss account and the cash flow statement read together 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: a) In the case of the Balance sheet, of the state of affairs of the Company as at 31st December, 2008; b) In the case of the Profit & loss Account, of the . loss for the year ended on that date; and c) In the case of Cash Flow Statement, of the cash flows for the year ended on that date ANNEXURETOTHE AUDITORS REPORT [Referred to in Paragraph (1) of the Auditors Report of even date to the members of Udaipur Cement Works Limited for the year ended 31.12.2008] i) a) Records showing full particulars including quantitative details and situation of fixed assets have been maintained by the company. This should be read with our comments in para (b) below. b) Physical verification of fixed assets has not been conducted by the management during the year due to plant operation being under suspension as stated in note no. 3 of Schedule 14. Discrepancy, if any, in this respect could not be ascertained and commented by us. c) As per information and explanations provided by the management and records made available to us, fixed assets disposed off during the year were not substantial. ii) a) Physical verification of inventories has not been conducted by the Management during the year as stated in note no.3 of Schedule 14. b) In our opinion and having regard to our comments in Para (ii)(a) above, the procedures of physical verification of inventory needs to be made adequate in relation to the size of the company and nature of its business. c) On the basis of information and records made available, inventory records are maintained (subject to note no.3 of Schedule 14) but in the absence of physical verification report, it is not possible to ascertain and comment on discrepancy between book records and physical inventory and adjustments, if any and ascertainment of amount thereof read together with note no.3 of Schedule 14. iii) The company has neither granted nor taken any loans, secured or unsecured to and from companies, firms or other parties covered in the register maintained under section 301 of the Act. Accordingly, the provisions of clause 4(iii) (b) to (d), (f) & (g) of the order are not applicable. iv) Internal control system require to be strengthened to be made commensurate with the size of the company and the nature of its business for the sale of fixed assets and services and read with our comments elsewhere and note no 3,14, & 21 of Schedule 14. v) According to the information and explanations provided by the management and based upon audit procedure performed, we are of the opinion that there are no particulars of contracts or arrangements referred to in section 301 of the Act to be entered in the register required to be maintained under that section, accordingly, the provisions of clause 4 (v) (b) of the order are not applicable. vi) In our opinion and according to the information and explanations given to us, the company has not accepted any deposits from the public within the meaning of the directives issued by Reserve Bank of India and the provision of sections 58A, 58AA or any other relevant provisions of the Act and the rules framed there under. As informed 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 in this regard. vii) No Internal Audit has been carried out during the year as stated in note no. 17 of Schedule 14. 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 records have been made and maintained read with Note no. 3 of schedule 14. We have not, however, made a detailed examination of the said records with a view to determine whether they are accurate. ix) i) According to the legal opinion obtained by the company liability of provident fund contribution arises only when salaries and wages are actually paid, accordingly we are not in a position to express opinion about payable amount in respect of provident fund contribution. As informed to us, Employee State Insurance is not applicable to the company. Further, according to the records of the Company and information and explanations given to. us, the company is generally regular (except delay in case of Sales Tax, Excise Duty, Income Tax, Royalty including as reported below) in depositing undisputed statutory dues including Investor Education and Protection Fund, Wealth Tax, Service Tax, Custom Duty, Cess and other material Statutory dues with the appropriate authorities to the extent applicable. There are no material statutory dues payable for a period of more than six months from the date they became payable as at 31st Dec, 2008 except Sales Tax Rs. 13,44,27,346, Excise Duty Rs. 70,54,778, , Electricity dues Rs. 1,83,17,491, Cess Rs. 55,853 and Royalty Rs. 62,61,385, further this is to be read together with note no. 2, 4(a) and 21 of Schedule 14. b) According to the records and information and explanations given to us, there are no dues in respect of Wealth Tax, Custom Duty and Cess that have not been deposited with the appropriate authorities on account of any dispute and the dues in respect of Income Tax, Excise Duty, Service Tax and Sales Tax that have not been deposited on account of dispute and the forum where the dispute is pending are given below:- Name of the Nature of The Dues Period Statute Central Excise Excise Duty 1995-96 Act Service Tax Act Service Tax 1997-98 Sales Tax Act Sales Tax 1999-2000 Sales Tax (Interest) 1996- 97, 1997- 98 & 1998 -99 Forum where Amount (In Rs.) dispute is pending High Court 4,40,017 Assistant 66,05,892 Commissioner of Excise (S.T.) Assistant 8,14,000 Commissioner (Comm. Tax) Assistant 9,11,000 Commissioner (Comm. Tax) x) The companys accumulated losses at the end of the financial year are more than fifty percent of its net worth and it has also incurred cash losses in the current financial year and also in the immediately preceding financial year. xi) On the basis of records made available and information and explanations given to us, the company has defaulted in repayment of dues, considering restructuring scheme, to financials institutions, banks and debenture holders, the details of which are given below: Particulars Amount Over due as on 31.12.2008 Maximum Balance (Including accrued interest to the outstanding extent provided for) during the year Debentures holders Rs. 31,50,16,353 (including carried over Rs. 31,50,16,353 Rs. 24,27,15,771 from previous year) Banks Rs 18,66,44,358 (including carried over Rs. 18,66,44,358 Rs. 18,46,19,358 from previous year) Financial Institutions Rs 47,31,29,933 (including carried over Rs. 47,31,29,933 Rs. 36,18,05,243 from previous year) Deferred Interest Rs. 10,82,29,116 Rs. 10,82,29,116 Above is to be read with note no. 4, 5 & 21 of Schedule 14 xii) According to the information and explanations given to us, 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) The company is not a chit fund or a nidhi/ mutual benefit fund/society; therefore the provisions of clause 4 (xiii) of the Order are not applicable to the company. xiv) According to the information and explanations provided by the management, the company is not dealing in or trading in shares, securities, debentures and other investments. xv) According to the information and explanations given to us, the company has not given any guarantee for loans taken by others from banks or financial institutions. xvi) In our opinion and according to the records, information and explanations given to us, the Company has not availed any fresh term loan during the year. xvii) Based on the examination of the documents and records made available and on the basis of information and explanations given to us and on an overall examination of financial statements, we are of the opinion that the company has not used funds raised on short- term basis for long-term investment. xviii) According to the information and explanations given to us, the company has not made any preferential allotment of shares during the year to any parties or companies covered in the register maintained under section 301 of the Companies Act, 1956. xix) According to information & explanations provided by the management no debentures have been issued during the year. In respect of debentures outstanding during the year security or charge had been created as stated in note no. B1 of schedule- 3. xx) The company has not raised any money through a public issue during the year. xxi) Based oh the audit procedures performed and on the basis of information and explanations provided by the management which have been relied upon by us, no fraud on or by the company has been noticed or reported during the course of our audit or have been informed by the management. FOR OM PRAKASH S CHAPLOT & CO. Chartered Accountants (O.P.CHAPLOT) Date : 08.04.2009 Partner Place : Udaipur M. No. 10184