We have audited the accompanying financial statements of Udaipur Cement
Works Limited (the Company), which comprise the Balance Sheet as
at 31st March 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters in
section 134 (5) of the Companies Act, 2013 (the Act) with respect
to preparation of these financial statements that give a true and fair
view of the financial position, financial performance and cash flows of
the Company in accordance with the accounting principles generally
accepted in India, including the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes the maintenance of
adequate accounting records in accordance with the provisions of the
Act for safeguarding of the assets of the Company and for preventing
and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation
and maintenance of internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of the
accounting records, 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 er ro r.
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143 (10) of the Act. Those Standards require
that we comply with 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 judgment, 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 internal financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit a l so i n cl u d es eval u
ati n g th e appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the Company''s
Directors, as well as evaluating the overall presentation of the
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid 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 March 31, 2015;
b) in the case of Statement of Profit and Loss, of the profit for the
year ended on that date ; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies
(Auditor''s Report) Order, 2015 (the Order), issued by the
Government of India in terms of sub-section (11) of section 143 of the
Companies Act, 2013, we give in the Annexure a statement on the matters
specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that :
a) We have sought and 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
c) The Balance Shee, the Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the
directors as on 31st March 2015, taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March 2015,
from being appointed as a director in terms of Section 164 (2) of the
Act. However all the directors of the company except Mr. S. K. Kinra ,
Special Director appointed by Hon''ble BIFR & Mr. Ganpat Singh and Miss
Kumud Pahuja appointed as Additional Director on March 21, 2015 are
disqualified to be appointed / reappointed as directors in any other
f) With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and
Auditor''s) Rules, 2014, in our opinion and to the best of our
information and according to the explanations given to us:
i The Company has disclosed the impact of pending litigations on its
financial position in its financial statements- refer Note No. 30 to
the financial statements.
ii. The Company did not have any such long-term contracts including
derivative contracts for which there were any material foreseeable
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
ANNEXURE TO THE AUDITOR''S REPORT
[Referred to in Paragraph (1) under the heading Report on other
Legal and Regulatory Requirements of the Auditors'' Report of even
date to the members of Udaipur Cement Works Limited on the accounts of
the Company for the year ended 31.03.2015]
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
our audit, we report that : i a) The Company has maintained proper
records showing full particulars including quantitative details and
situation of fixed assets.
b) As explained to us, fixed assets have been physically verified by
the management at regular intervals; as informed to us no material
discrepancies were noticed on such verification.
ii) a) Physical verification of inventories has been conducted by the
management at reasonable intervals.
b) The procedure of physical verification of inventory followed by the
management is 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 such physical verification of inventory as
compared to book records were not material.
(iii) The Company has not granted / taken any loans secured or
unsecured to / from Companies, firms or other parties covered in the
registered maintained u/s 189 of the Act.
iv) In our opinion, the Company has an adequate internal control system
commensurate to the size of the Company and nature of its business for
the purchase of inventory and fixed assets and for sale of goods &
services and no major weaknesses in internal control system has been
v) The Company has not accepted any deposits from public within the
meaning of the directives issued by the Reserve Bank of India and under
the provisions of section 73 to 76 or any other relevant provisions of
the Act and the Rules framed thereunder. As informed to us, no order
has been passed by the Company Law Board or National Law Tribunal or
Reserve Bank of India or any court or any other tribunal in this
vi) We have broadly reviewed the books of account maintained by the
Company pursuant to the order made by the central government for
maintenance of cost records under section 148 (1) of the Companies Act,
2013 in respect of the Company''s products to which the said rules are
made applicable and are of the opinion that prima facie, the prescribed
records have been made and maintained. We have not, however, made a
detailed examination of the said records with a view to determine
whether they are accurate.
vii a) According to the records of the Company and information and
explanations given to us, the Company is regular in depositing
undisputed statutory dues, including Provident Fund, Employees State
Insurance, Entry Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty,
Excise, VAT, Cess and other material Statutory dues with the
appropriate authorities to the extent applicable. There are no
undisputed statutory dues payable for a period of more than six months
from the date they became payable as at 31st March 2015.
b) According to the records and information and explanations given to
us there are following dues under various taxes which has not been
deposited on account of any dispute and the amounts involved and the
forum where dispute is pending are given below: -
Name of the
Statute Nature of
the Dues Period Forum where dispute is
Excise Act Excise Duty 1995-96 High Court 4,40,017
(Interest) 2000-01 Assistant Commissioner
Central Excise, Udaipur 2,81,325
Tax Act Service Tax 1997-98 Assistant Commissioner
of Excise (S.T.) 66,05,892
Act Sales Tax 1999-2000 Assistant Commissioner
(Comm. Tax) 8,14,000
1998-99 Assistant Commissioner
(Comm. Tax) 9,11,000
Sales Tax 1996-97 Assistant Commissioner
(Comm. Tax) Circle
''B'' Jammu 25,04,900
c) There has not been an occasion in case of the Company during the
year under report to transfer any sums to the Investor Education and
Protection Fund. The question of reporting delay in transferring such
sums does not arise.
viii) The Company''s accumulated losses at the end of the year are not
more than fifty percent of its net worth. It hasn''t incurred cash
losses in the current year and in the immediately preceding period.
ix) On the basis of records made available and information and
explanations given to us, the Company has not defaulted in repayment of
dues, considering the sanction of BIFR scheme, to financial
institutions, banks and debenture holders.
x) 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.
xi) On the basis of information and explanations given to us, the term
loan has been applied for the purpose for which they were obtained.
xii) Based on the audit procedures performed and on the basis of
information and explanations provided by the management, no fraud on or
by the Company has been noticed or reported during the course of our
For OM PRAKASH S. CHAPLOT & CO.
Place of Signature : Udaipur Partner
Date : 12th May 2015 M. No. 010184