URANIUM CORPORATION OF INDIA LIMITED - (UCIL).....

ANNEXURE TO THE AUDITORS' REPORT
(REFERRED TO IN PARAGRAPH 4 OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF
URANIUM CORPORATION OF INDIA LIMITED ON THE ACCOUNTS OF THE COMPANY FOR
THE YEAR ENDING 31ST MARCH 2007)
(i) (a) The Company has maintained proper
records showing most of the particulars
including quantitative details and
situation of Fixed Assets.
(b)
(c)
The Company has phased programme of
physical verification of its Fixed Assets
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. As informed to us,
no material discrepancies were noticed
on such verification.
In our opinion and according to the
information and explanations given to
us, the Company has not disposed off a
substantial part of its fixed assets.
(ii) (a) As explained to us, inventory has been
physically verified by the management
during the year at reasonable intervals.
(b)
(c)
In our opinion and according to the
information and explanations given to
us, the procedure of physical
verification of inventories followed by
the management is reasonable and
adequate in relations to the size of the
company and nature of its business.
In our opinion and according to the
information and explanations given to
us, the Company is maintaining proper
records of Inventory. The discrepancies
noticed on physical verifiction were not
material and the same has been properly
dealth with in the books of accounts.
However as reported by the
management vide Note No. 12 of Notes
on Accounts in Schedule-15, inventory
valuing Rs. 163.06 Lakhs arising out of
non posting/mis-posting of Issue/
Receipt Vouchers in the Priced Stores
Ledger of earlier years is adjusted in
the current year as Prior Period
Adjustment.
(iii) According to the information and
explanations given to us, the company has
neither granted nor taken any loans, secured
or unsecured from companies, firms or other
parties covered in the register maintained
u/s 301 of the Companies Act, 1956.
(iv)
In our opinion and according to the
information and explanations given to us,
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. During the course of
our audit, we have not observed any major
failures in the internal control system.
(v) According to the information and
explanations given to us, there is no
transaction during the year that needs to be
entered into the register maintained in
pursuance of section 301 of the Act.
(vi)
(vii)
(viii)
The Company has not accepted any deposits
from the public within the meaning of section
58A and 58AA of the Companies Act, 1956
and the rules framed thereunder and the
directives issued by the Reserve Bank of
India.
The Company has an Internal Audit
Department. Internal Audit of the Company
is carried out both by the Internal Audit
Department as well as by firms of Chartered
Accountants. In our opinion, the Internal
Audit System of the Company is required to
be strengthened with regard to
implementation by enlarging the scope and
frequency of coverage in the Audit Plan.
The Central Government has prescribed the
maintenance of cost records by the company
u/s 209(1)(d) of the Companies Act, 1956. We
have broadly reviewed the above records and
are of the opinion that prima-facie the
prescribed accounts and records have been
made and maintained.
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