Our endeavour is to enhance Stakeholders' Value - Uflex Ltd.

DIRECTOR’S AUDITORS’ REPORT
5. (a) According to the information and explanations given to
us, the particulars of contracts or arrangements referred
to in section 301 of the Companies Act, 1956, have been
entered in the register required to be maintained under
that Section.
6.
(b) In our opinion and according to the information and
explanations given to us, the transactions made in
pursuance of contracts or arrangements entered in the
register maintained under section 301 of the Companies
Act, 1956 and exceeding the value of Rs. Five Lacs in
respect of a party, during the year, have been made at
prices which are reasonable having regard to prevailing
market prices at the relevant time.
The Company has not accepted any deposit, during the year,
under the provisions of Section 58A & 58AA of the Companies
Act, 1956 and the rules framed there-under.
7. The internal audit of the Company has been conducted
by an independent fi rm of Chartered Accountants and in
our opinion; the company has an internal audit system,
commensurate with the size and nature of its business.
8. The Company has made and maintained Cost Records &
Accounts, concerning polyester chips activity carried on by
the Company, in respect of which, the Central Government
has prescribed the maintenance of cost records under section
209 (1) (d) of the Companies Act, 1956.
9. (a) According to the records of the Company, it is regular
in depositing with appropriate authorities undisputed
statutory dues including provident fund, investor
education and protection fund, employees’ state
(b)
insurance, income tax, sales tax, wealth tax, service tax,
custom duty, excise duty, cess and other applicable
statutory dues.
According to the information and explanations given to
us, there are no undisputed amounts payable in respect
of provident fund, investor education and protection
fund, employees’ state insurance, income tax, sales tax,
wealth tax, service tax, custom duty, excise duty, cess
and other applicable statutory dues, as at the year end;
for a period more than six months from the date they
became payable.
(c) According to the information and explanation given to
us, there are no dues of custom duty, wealth tax and
cess, which have not been deposited on account of any
dispute. However following amounts are involved (Gross
of amount deposited under protest, if any) with undermentioned
forums, in respect of the disputed statutory
dues:-
(i) Aggregate Sales Tax of Rs.413.28 lacs, pending
before (a) Various High Courts (Rs. 233.74 lacs) (b)
Tribunal (Rs.50.95 lacs) (c) Joint Commissioner
(Appeals) (Rs. 0.90 lacs) & (d) Assessing Authorities
(Rs.127.69 lacs)
(ii) Aggregate Income Tax of Rs. 155.02 Lacs, pending
before (a) Tribunal (Rs.116.20 lacs) & (b) CIT (Appeals)
(Rs. 38.82 Lacs).
(iii) Aggregate Excise duty of Rs.4770.47 lacs, pending
before (a) Supreme Court (Rs.11.10 lacs) (b) Tribunal
(Rs.2990.87 lacs) (c) Various High Courts (Rs.1335.02
lacs), (d) Commissioner (Appeals) (Rs.220.44 lacs)
& (e) Assessing/ original adjudicating Authorities
(Rs.213.04 Lacs).
UFLEX LIMITED
10. The Company has neither accumulated losses as at the year
end nor it has incurred cash losses in the fi nancial year under
report and in the immediately preceding fi nancial year.
11. The Company has not defaulted in repayment of dues to
banks or debenture holders or fi nancial institutions.
12. The Company has not granted loans and advances, on the
basis of security by way of pledge of shares, debentures
and other securities. However the Company has maintained
adequate records in respect of advance, by way of security
deposit, granted to one party, in earlier years and outstanding
as at the year-end, against the pledge of shares.
13. The Company is not a chit fund, nidhi or mutual benefi t
fund/society. Therefore the provisions of clause 4(xiii) of the
Companies (Auditor’s Report) Order, 2003 are not applicable
to the Company.
14. The Company has not dealt or traded in shares, securities,
debentures and other investments during the year.
However, it has maintained proper records in respect of
shares and other investments and are held in the name of
the Company.
15. The Company has given Corporate guarantee for facilities
taken by one of its step down Subsidiary from a Bank. On the
basis of representation and explanations, provided to us, we
are of the opinion that the terms and conditions thereof are
not prima-facie prejudicial to the interest of the company.
16. The Company has not raised any term loans during the year.
Further funds raised during earlier years through Foreign
Currency Convertible Bonds, which were temporarily invested
in the Fixed Deposits with the Banks, pending utilization, were
applied for the purpose during the year for which the same
were raised.
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 the funds raised on short-term basis
have not been used for long-term investment.
18. During the year, the Company has not made preferential
allotment of shares to parties and companies covered in the
register maintained under Section 301 of the Companies Act,
1956.
19. Security and Charges has been created in respect of debentures
issued by the Company except in respect of 18% Cumulative
Debentures having face value of Rs.482.90 Lacs pending issuance
of certifi cate to a fi nancial institution pursuant to Negotiated
Settlement Scheme of its outstanding loans, specifi c charge or
security is yet to be created.
20. The Company has not raised any money by public issue during
the year.
21. To the best of our knowledge and belief and according to the
information and explanation given to us, no fraud on or by the
Company was noticed or reported during the year.
For VIJAY SEHGAL & CO.,
Chartered Accountants
Place : NOIDA CA. S.V.SEHGAL
Dated : 30 th July, 2009 Partner
Membership No. 080329
TWENTIETH ANNUAL REPORT 2008 - 2009
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