We have audited the accompanying financial statements of UNITED LEASING
& INDUSTRIES LIMITED (the company), which comprise the Balance Sheet
as at 31st March 20l5,the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of the 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 stated
in Section 134 (5) of the Companies Act, 2013 with respect to the
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 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 adequate 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 mis-statement, whether due to fraud or error.
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 there under.
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 also includes evaluating the
appropriateness of the accounting policies used and there as on
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 stand alone
In our opinion and to the best of our information and according to the
explanations given to us, the afore said 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, of the state of affairs of the Company as
at 31st March, 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
the carrying value in the opening balance of retained earnings where the
remaining useful life of an asset is nil. Company is having negative
opening retained earnings amounting of Rs.1,06,33,599/- , which has
further been increased by asset balances to be written off as per
Schedule- II of companies act , 2013 amounting of Rs.21,114,410/- and
loss during the year by Rs 7,554,583/-, resulting into negative retained
earnings of Rs 39,302,592/-. 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 in the Annexure a statement on the matters
specified in paragraphs 3 and 4 of the Order to the extent applicable.
2. As required by Sectionl43 (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 it appears from our examination of those
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d) In our opinion, the afore said 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
f) With respect to the other matters to be included in the Auditor''s
Report in accordance with Rulell of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and 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 financial position
ii. The Company did not have any 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.
The Annexure referred to in paragraph 1 of Report on Other Legal and
Regulatory Requirements of our Report of even date to the members of
UNITED LEASING & INDUSTRIES LIMITED 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 the information 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 is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets;
(b) As explained to us the fixed assets have been physically verified
by the management at reasonable intervals, no material discrepancies
were noticed on such verification.
(ii) The company does not have any inventory .accordingly the provision
of the order not applicable
(iii) The Company has not granted loans, secured or unsecured, to
companies, firms or other parties listed in the Register maintained
under Section 189 of the Companies Act, 2013 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 us, having regard to the explanations that some of the items
sold are of special nature and suitable alternative sources are not
readily available for obtaining comparable quotations, there is an
adequate internal control system commensurate with the size of the
Company and the nature of its business with regard to purchase of fixed
assets and the sale of goods and services. During the course of our
audit, we have not observed any major weakness in the aforesaid
internal control system.
v) In our opinion and information and explanation given to us the
company has accepted deposits from the members of the company in
previous years. The company has renewed certain deposits amounting to
Rs 57,07,227/-during the year, but certain procedural guidelines as
mentioned in the section 73 of the company''s act 2013 and rules framed
there under has not been followed.
(vi) According to the information and explanations given to us the
Companies (Cost Records 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 the company examined by us:
(a) The company regular in depositing undisputed statutory dues
including provident fund, employees'' state insurance, income-tax,
sales-tax, wealth tax, service tax, duty of customs, duty of excise,
value added tax, cess and any other statutory dues with the appropriate
(b) There were no undisputed amounts payable in respect of Provident
Fund, Employees'' State Insurance, Income-tax, Sales Tax,Wealth Tax,
Service Tax, Duty of Customs, Duty of Excise,Value Added Tax, Cess and
other material statutory dues in arrears as at 31st March, 2015 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
Customs, Income-tax, Service Tax, Duty of Excise and Cess and other
material statutory dues in arrears as at 31st March, 2015 which have
not been deposited as on 31st March, 2015 on account of disputes.
(d) According to the information and explanation given to us and the
record of the company ;the company is not required to transfer to
investor education and protection fund in 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 more than fifty percent of its net worth. The company has not
incurred cash losses during the financial year covered by the audit and
in immediately preceding financial year.
(ix) According to the information and explanations given to us, the
company has not defaulted in repayment of dues to a financial
institution or bank .
(x) According to the information and explanations given to us the
company has not given any 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, the Company has not obtained any term loan during the year
and hence the question of commenting on the application thereof does
(xii) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company has been noticed or reported during the year.
JP CHAWLA & COMPANY
Firm Regn No. 001875N
Membership No. 015488
Place: New Delhi
Dated: 26th May 2015