The Members of UNITED TEXTILES LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of UNITED TEXTILES LIMITED ("theCompany") which comprise the Balance Sheet as at 31st March 2015 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation 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 misstatement whether due to fraud orerror.
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 the Act and the Rules made thereunder.
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 theauditors judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Companyspreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Companys Directors as well as evaluating theoverall presentation 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 financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid 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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2015 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure a statement on the matters specified inthe paragraph 3 and 4 of the Order to the extent applicable.
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 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 aforesaid financial statements comply with the AccountingStandards 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 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 the Act.
(g) With respect to the other matters to be included in the Auditors Report inaccordance with Rule 11 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 as on 31st March 2015;
ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.
iii. There is no amount payable towards investor education and protection fund inaccordance with the relevant provisions of the Companies Act 1956 (1 of 1956) and rulesmade thereunder.
For N.C. Aggarwal & Co.
Chartered Accountants Firm Registration No. 003273N
G. K. Aggarwal Partner
Membership No. 086622
Date: 30th May 2015
Place: New Delhi
(Annexure referred to in our report of even date to the members of UNITED TEXTILESLIMITED on the accounts for the year ended 31st March 2015)
1. (a) The Company has maintained all proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The Management in accordance with a phased programme of verification adopted by theCompany has physically verified a major portion of the fixed assets. In our opinion thefrequency of verification is reasonable having regard to the size of the Company and thenature of its assets. To the best of our knowledge no material discrepancies have beennoticed on such verification.
2. (a) The management has conducted physical verification of inventory at reasonableintervals during the year.
(b) According to the information and explanations given to us the procedures ofphysical verification of stocks followed by the Management are reasonable and adequate inrelation to the size of the Company and the nature of its business.
c) On the basis of our examination of the inventory records in our opinion theCompany is maintaining proper records of inventories. The discrepancies noticed duringphysical verification of inventories as compared to book records were not material and thesame have been properly dealt with in the books of account.
3. According to the information and the explanations given to us the company has notgranted any loans secured or unsecured to companies firms or other parties covered inthe register maintained under section 189 of the Companies Act 2013. Accordingly theprovisions of clause 3(iii) (a) and (b) of the order are not applicable to the company andhence not commented upon.
4. In our opinion and according to information and explanations given to us havingregard to the explanation that some of the items purchased are of special nature andsuitable alternative sources do not exist for obtaining comparable quotations there areadequate internal control system commensurate with the size of the Company and the natureof its business with regard to purchases of inventories fixed assets and with regard tothe sale of goods and services. During the course of our audit we have not observed anycontinuing failure to correct major weaknesses in internal controls.
5. According to the information given to us the Company has not accepted any depositsunder the provisions of section 73 to 76 of the Companies Act 2013 or any other relevantprovisions of the companies Act and the Companies (Acceptance of Deposits) Rules 2014. Noorder has been passed with respect to Section 73 to 76 by the Company Law Board orNational Company Law Tribunal or Reserve Bank of India or any Court or any other tribunal.
6. We have broadly reviewed the books of account maintained by the company in respectof the products where the maintenance of cost records has been prescribed undersub-section (l) of section 148 of the Companies Act 2013 and are of the opinion thatprima facie the prescribed records have been made and maintained. We have not howevermade a detailed examination of the records.
7. (a) Undisputed statutory dues including provident fund employee stateinsurance income tax sales tax wealth tax service tax duty of customs duty ofexcise value added tax cess and other statutory dues have generally been regularlydeposited with the appropriate authorities and there are no undisputed dues outstanding asat 31st March 2015 for a period of more than six months from the date theybecame payable.
(b) According to the information and explanations given to us there are no dues inrespect of provident fund employee state insurance income tax sales tax wealthtax service tax duty of customs duty of excise value added tax cess and otherstatutory dues which have not been deposited with the appropriate authorities on accountof any dispute.
(c) There is no amount payable towards investor education and protection fund inaccordance with the relevant provisions of the Companies Act 1956 (1 of 1956) and rulesmade thereunder. Hence clause 3(vii) (c) of the Companies (Auditors Report) Order2015 is not applicable to the company.
8. As at 31st March 2015 the Companys accumulated losses is not morethan fifty percent of its net worth. The company has not incurred cash losses in thecurrent financial year and in the immediately preceding financial year.
9. In our opinion on the basis of books and records examined by us and according tothe information and explanations given to us the Company has not defaulted in repaymentof dues to banks. The Company has not taken any loan from any financial institutions anddebenture holders.
10. According to the information and explanations given to us the Company has notgiven any guarantee for loans taken by others from banks.
11. In our opinion and according to the information and explanation given to us theterm loans have been applied for the purpose for which they were raised.
12. During the course of our examination of the books and records of the Company andaccording to the information and explanations given to us by the management we reportthat no fraud on or by the Company has been noticed or reported during the course of ouraudit.
For N.C. Aggarwal & Co.
Firm Registration No. 003273N
G. K. Aggarwal
Membership No. 086622
Date: 30th May 2015
Place: New Delhi
B.O. 83-E Model Town Hisar Ph: Office: 01662-248757 Residence: 01662-247797