To the Members UNITED LEASING & INDUSTRIES LIMITED
We have audited the accompanying financial statements of UNITED LEASING &INDUSTRIES LIMITED ("the company") which comprise the BalanceSheet as at 31 March 2015the Statement of Profit and Loss the Cash Flow Statement forthe year then ended and a summary of the significant accounting policies and otherexplanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act 2013 with respect to the preparation of these financialstatements that give a true and fair view of the financial position financial performanceand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the Accounting Standards specified under Section 133 of theAct read with Rule 7 of the Companies (Accounts) Rules 2014. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material mis-statement whether due to fraudor error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of theAct and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified underSection 143 (10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and there as on reasonableness of theaccounting estimates made by the Company's Directors as well as evaluating the overallpresentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the stand alone financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the afore said financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2015 and its profit and its cash flows for the year ended on that date.
Emphasis of Matters
As per Schedule II of the companies act 2013 company shall recognize thecarrying value in the opening balance of retained earnings where the remaining useful lifeof an asset is nil. Company is having negative opening retained earnings amounting of
Rs.10633599/- which has further been increased by asset balances to be written offas per Schedule- II of companies act 2013 amounting of Rs.21114410/- and loss duringthe year by Rs 7554583/- resulting into negative retained earnings of Rs 39302592/-.Our opinion is not qualified /modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2015 ("the Order")issued by the Central Government of India in terms of section 143 of the Act we give inthe Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order tothe extent applicable.
2. As required by Section143 (3) of theAct we report that:
a) We have sought and obtained all the information and explanations which to the bestof 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 theCompany so far as it appears from our examination of those books.
c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.
d) In our opinion the afore said financial statements comply with the AccountingStandards specified under Section 133 of theAct read with Rule 7 of the Companies(Accounts) Rules 2014.
e) On the basis of the written representations received from the directors as on 31stMarch 2015 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2015 from being appointed as a director in terms of Section164(2) of theAct.
f) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financialposition
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
The Annexure referred to in paragraph 1 of Report on Other Legal and RegulatoryRequirements of our Report of even date to the members of UNITED LEASING & INDUSTRIESLIMITED on the accounts of the Company for the year ended 31st March 2015.
On the basis of such checks as we considered appropriate and according to theinformation and explanation given to us during the course of our audit we report that:
(i) (a) According to information and explanation provided to us the company ismaintaining proper records showing full particulars including quantitative details andsituation of fixed assets;
(b) As explained to us the fixed assets have been physically verified by the managementat reasonable intervals no material discrepancies were noticed on such verification.
(ii) The company does not have any inventory .accordingly the provision of the ordernot applicable
(iii) The Company has not granted loans secured or unsecured to companies firms orother parties listed in the Register maintained under Section 189 of the CompaniesAct2013 and hence clauses (a) and (b) are not applicable to the Company.
(iv) In our opinion and according to the information and explanations given to ushaving regard to the explanations that some of the items sold are of special nature andsuitable alternative sources are not readily available for obtaining comparablequotations there is an adequate internal control system commensurate with the size of theCompany and the nature of its business with regard to purchase of fixed assets and thesale of goods and services. During the course of our audit we have not observed any majorweakness in the aforesaid internal control system.
v) In our opinion and information and explanation given to us the company has accepteddeposits from the members of the company in previous years. The company has renewedcertain deposits amounting to Rs 5707227/-during the year but certain proceduralguidelines as mentioned in the section 73 of the companys act 2013 and rules framedthere under has not been followed.
(vi) According to the information and explanations given to us the Companies (CostRecords and Audit) Rules 2014 prescribed by the Central Government under Section 148 (1)of the Companies Act 2013 are not applicable to the Company
(vii) According to the information and explanation given to us and records of thecompany examined by us:
(a) The company regular in depositing undisputed statutory dues including providentfund employees' state insurance income-tax sales-tax wealth tax service tax duty ofcustoms duty of excise value added tax cess and any other statutory dues with theappropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund Employees'State Insurance Income-tax SalesTaxWealthTax ServiceTax Duty of Customs Duty ofExciseValueAddedTax Cess and other material statutory dues in arrears as at 31st March2015 for a period of more than six months from the date they became payable
(c) There were no amounts payable in respect of Wealth Tax Duty of CustomsIncome-tax Service Tax Duty of Excise and Cess and other material statutory dues inarrears as at 31st March 2015 which have not been deposited as on 31st March 2015 onaccount of disputes.
(d) According to the information and explanation given to us and the record of thecompany ;the company is not required to transfer to investor education and protection fundin accordance with the relevant provisions of the Companies Act 1956 (1 of 1956) .
(viii) The company has accumulated losses at the end of financial year which is morethan fifty percent of its net worth. The company has not incurred cash losses during thefinancial year covered by the audit and in immediately preceding financial year.
(ix) According to the information and explanations given to us the company has notdefaulted in repayment of dues to a financial institution or bank .
(x) According to the information and explanations given to us the company has not givenany guarantee for loans taken by others from bank or financial Institutions.
(xi) In our opinion and according to the information and explanations given to us theCompany has not obtained any term loan during the year and hence the question ofcommenting on the application thereof does not arise.
(xii) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company and no material fraud on the Company has been noticedor reported during the year.
| ||JP CHAWLA & COMPANY |
| ||Chartered Accountants |
| ||Firm Regn No. 001875N |
| ||Sd/- |
| ||J.P.CHAWLA |
|Place: New Delhi ||( Partner) |
|Dated: 26th May 2015 ||Membership No. 015488 |