To
The Members of UNITED TEXTILE LIMITED
Report on the Financial Statements
Opinion
We have audited the accompanying standalone financial statement of UNITED TEXTILES
LIMITED ("the Company"),which comprise the Balance Sheet as at March 31, 2023,
the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of
Changes in Equity and the Cash Flow Statement for the year then ended and a summary of
significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements give the information required by the
Companies Act, 2013 ("the Act") in the manner so required and give a true and
fair view in conformity with the [Indian Accounting Standards prescribed under section 133
of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended,
("Ind AS") and other accounting principles generally accepted in India, of the
state of affairs of the Company as at 31 March 2023, and its profit, total comprehensive
income, its cash flows and the changes in equity for the year ended on that date.
Basisof Opinion
We conducted our audit in accordance with the Standards on Auditing specified under
Section 143(10) of the Act. Our responsibilities under those Standards are further
described in the Auditors Responsibilities for the Audit of the Standalone financial
statements section ofourreport. We are independent of the Company in accordance with Code
of
Ethics issued by the Institute of Chartered Accountants of India together with the
ethical requirements thatare relevant
to our audit of the standalone financial statements under the provisions of the
Companies Act, 2013 and the Rule thereunder, and we have fulfilled our ethical
responsibilities in accordance with these requirements and the Code of Ethics. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis
of our opinion.
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Act with respect to the preparation ofthese financial statements that give
atrue and fairview of the financial position, financial performance including other
comprehensive income, cash flowsand changes in equity of the Company in accordance with
the Ind AS and other accounting principles generally accepted in India. This
responsibility also includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding the assets of the Company and for preventingand
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 statement that give
a true and fair view and are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is responsible for assessing the
Companys
abilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoing
concern basis of accounting unless management either intends to liquidate the Company or
toe ease operations, orhas norealistic alternative butto do so
The Board of Dire ctorsisal so resp onsibleforoverseeingth
eCompanysfinancialreportingp rocess Auditors Responsibility
Our objectives are to obtain reasonable assurance about whether the standalone
financial statements as a whole are free from material misstatement, whether due to fraud
or error, and to issue an auditors report that includes our opinion. Reasonable assurance
is a high level of assurance, but isnota guarantee thatan auditconducted in accordance
with SAswill always detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions ofusers taken on the
basis ofthese standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism
throughout the audit. We also:
• Identify and assess die risks of material misstatement of the standalone
financial statements, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. "The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
• Obtain an understanding of internal control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances. UnderSection 143(3)(i)
oftheAct,weare also responsible for expressing our opinion on whether the Company has
adequate internal financial controls system in place and the operating effectiveness of
such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by the management.
• Conclude on the appropriateness of managements use of the goingconcern basis of
accounting and, based on the audit evidence obtained, whethera material uncertainty exists
related to events or conditions thatmay cast significant doubt on the Companys ability to
continue as a going concern. Ifwe conclude that a material uncertainty exists, we are
required to draw attention in our auditors report to the related disclosures in the
standalone financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditors report. However, future events or conditions may cause the Company to cease to
continue asa going concern.
• Evaluate the overall presentation, structure and content of the standalone
financial statement^ including the disclosures, and whether the standalone financial
statements represent the underlying transactions and events in a manner that achieves fair
presentation.
Materiality is the magnitude of misstatements in the standalone financial statements
that, individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the standalone financial statements may be influenced. We
consider quantitative materiality and qualitative factors in (i) planning the scope of our
audit work and in evaluating the resu Its of our work; and (ii) to evaluate the effect of
any identified misstatements in the standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify duringour audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought tobearon our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the standalone financial statements
for the financial year ended March 31, 2023 and are therefore the key audit matters. We
describe these matters in our auditors report unless law or regulation precludes public
disclosure aboutthe matter orwhen, in extremely rare circumstance^ we determine
thatamattershould notbe communicated in our report because the adverse consequences of
doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2020 ("the Order")
issued by the Central Government of India in terms of sub-section (11) of section 143 of
the Act, we give in the AnnexureA a statement on the matters specified in the paragraph
3and4 of the Order, to the extentapplicable.
2. Asrequired by Section 143(3)oftheAct,wereportthat:
(a) We have sought and obtained all the information and explanationswhich to the bestof
our knowledge and beliefwere necessary for the purposes of our audit.
(b) In our opinion, proper books ofaccount as required by law have been kept by the
Company 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
Statement dealt with by this Report are in agreement with the books ofaccount;
(d) In our opinion, the aforesaid financial statements comply with the Indian
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 March
31, 2023 taken on record by the Board of Directors, none of the directorsisdisqualified as
on March 31,2023 from being appointed as a director in terms ofSectionl64(2) of the Act.
(f) With respectto the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to Anne
xu re B.
(g) With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 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. "file Company does not have any pen ding litigations which would imp act its
financial position;
ii. "The Company did not have any long-term contracts including derivative
contracts for which there were any material foreseeable losses;
iii. Hi ere were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company;
(h) "file managerial remuneration for the year ended 31st March, 2023 has been
paid/ provided for by the Company to its directors in accordance with the provisions of
Section 197 read with Schedule V to the Act.
(i) As per the management representation we report,
(i) no funds have been advanced or loaned or invested by the company to or in any other
person(s) or entities, including foreign entities ("Intermediaries"), with the
understanding that the intermediary shall whether directly or indirectly lend or invest in
other persons or entities identified in any manner by or on behalf of the company
(Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf of
ultimate beneficiaries.
(ii) no funds have been received by the company from any person(s) or entities
including foreign entities ("Funding Parties") with tli e understanding that
such company shall whether, directly or indirectly, lend or invest in other persons or
entities identified in any manner whatsoever by or on behalf of the funding party
(ultimate beneficiaries) or provide guarantee, security or the like on behalf of the
Ultimate beneficiaries.
(iii) Based on the audit procedures performed, we report that nothing has come to our
notice that has caused us to believe that tfi e represen tations given un der su b-clau se
(i) and (ii) by th e management con tain any m aterial misstatement.
(j) No dividend has been paid by the company.
(k) Asproviso to rule 3(1) of the Companies (Accounts) Fiule^ 2014 is applicable for
the Company only with effect from 1st April, 2023, reporting under Fiule 11(g) of the
Companies (Audit and Auditors) Rules, 2014 is not applicable.
For N C Aggarwal & Co,
Chartered Accountants
Firm Registration No. 003273N
G.K. Aggarwal
(Partner)
M. No. 086622
Dated :30th May,2023
Place: Hisar
UDIN:23086622BGVJKZ5138
ANNEXURE A TO INDEPENDENT AUDITORS REPORT
(Annexure referred to in our report of even date to the members of UNITE DTEXTI LED
LIMrfEDon the accounts for the year
ended March 31,2023)
1. (a) The Company has maintained proper records showing full particularsinduding
quantitative details and situation of fixed assets.
(b) A major portion of the PPE has been physically verified by the Management in
accordance with a phased programmed of verification once in three years adopted by the
company. In our opinion, the frequency of the verification is reasonable having regard to
the size of the company and the nature of its assets. To the best of our knowledge, no
material discrepancieshave been noticed on such verification.
(c) The Company does not have any immovable property wherein reporting requirement with
respect to title deed of immovable properties is applicable.
(d) The Company has not revalued its PPE and Intangible assets during the year. Hence,
the reporting requirement of Para
3(i) (d) oftheorderis not applicable to the Company.
(e) As explained to us and as per the information and explanations furnished to us, no
proceedings have been initiated or are pending against the company for holding any benami
property under the Benami Transactions (Prohibition) Act, 1988. Hence, Para 3(i)(e) of the
order is not applicable to the company.
2. (a) As explained to us, the management during the year has physically verified
inventories. In our opinion, the
coverage and procedure ofverification is appropriate. Nodiscrepancies of 10%or more in
the aggregate for each class of inventory were noticed
(b) The company has been sanctioned and availed working capital limit but not in excess
of five crores rupees, in aggregate, from Banks on th e basis of secu rity of current
assets. Hence, th e reportin g requ irem en t of para
3(ii) (b) oftheorderis not applicable to the Company.
3. In our opinion and According to the information and the explanations given to us,
the company has not made any investment in, provided any guarantee or security or granted
any loans or advances in the nature of loans, secured or unsecured, to companies, firms,
Limited Liability Partnerships or any other parties. Hence, theprovisions of Para
3(iii)(a-f) of the order are not applicable to the company.
4. The Company has not granted any loans or given any guarantee and security covered
under Section 185 and 186 of the Companies Act, 2013. Accordingly, the provisions of
clause 3(iv) of the order are not applicable to the company and hence not commented upon.
5. According to the information given to us, the Company has not accepted any deposits
or amount which are deemed to be deposits the provisions of section 73 to 76 of the
Companies Act, 2013 or any other relevant provisions of the companies Act and the
Companies (Acceptance of Deposits) Rules, 2014 as amended from time to time. No order has
been passed with respect to Section 73 to 76, by the Company Law Board or National Company
Law Tribunal or Reserve Bank of India or any Court or any other tribunal.
6. According to the information and explanations given to us, the maintenance of cost
records as specified by the Central Government under sub-section (I) of section 148 of the
Companies Act, 2013 is not applicable to the company.
7. (a) Undisputed statutory dues including Goods and Service Tax, provident fund,
employee state insurance, income tax, sales tax, service tax, duty of customs, duty of
excise, value added tax, cess and other statutory dues have generally been regularly
deposited with the appropriate authorities and there are no undisputed dues outstanding as
at 31st March, 2023 for a period of more than six months from the date they became
payable.
(b) According to the information and explanations given to us, there are no material
statutory dues referred in aforesaid clause 7(a) which havenotbeen deposited with the
appropriate authoritieson account of any dispute.
8. In our opinion and as per the information and explanations furnished to us, there
are no unrecorded transactions or transactions disclosed as income in the tax assessments
under the IncomeTaxAct. Hence, the para 3(viii) oftheorderis notapplicable to the Company.
9. (a) In our opinion, on the basis of books and records examined by us and according
to the information and explanations given to us, the company has not defaulted in
repayment of loan or other borrowing and payment of interest to any lender. Hence, the
para 3(ix) oftheorderisnotapplicable toCompany.
(b) In our opinion, and as per the information and explanation furnished to us, the
Company is not wilful defaulter by any bank orotherfinancial institution oranyotherlender.
(c) In our opinion and as per the information and explanation furnished to us, the term
loan availed were utilized for the purpose for which the loan were taken.
(d) On the basis of books and records examined by us, the funds raised on short term
basis has not been utilized for long term purposes.
(e) There is no subsidiary, associate or joint venture of the company. Hence, Para
3(ix)(e) of the order is not applicable to company.
(f) There is no subsidiary, associate or joint venture of the company. Hence, Para
3(ix)(f) of the order is not applicable to company.
10. (a) The Company has not raised any money byway of initial public offer or further
public offer or debt instruments. Hence, the para3(x) of the orderisnot applicable to the
Company.
(b) According to the information and explanations given to us and based on our
examination of the records of the Company, the Company has not made any preferential
allotmentor private placement of sharesor fully or convertible debentures (fully, partly
or optionally convertible) during the year. Accordingly, provisions of clause 3 (xiv) of
the Order are not applicable to the Company.
11. (a) According to the information and explanations given to us and as represented by
the Management and based on our examination of the books and records of the Company and in
accordance with generally accepted auditing practices in India, we have been informed that
no case of frauds by die Company or on the Company has been noticed or rep orted by the
Comp any.
(b) As informed to us and as per the information and explanation furnished to us, there
was no report in prescribed form ADT-4 undersub-sectionl2 of section 143
oftheCompaniesAct,2013 required to be filed. Hence, the reporting para 3(xi) (b)ofthe
order isnotapplicable to the Company.
(c) No whistle blower complaints were received by the Company. Hence, the reporting
para 3(xi)(c) of the orderisnot applicable to the Company.
12. The company is not a Nidhi Company. Accordingly, the provisions of clause 3 (xii)
ofthe Order are not applicable to the Company.
13. According to the information and explanations given to us, all transactions with
the related parties are in compliance with section 177 and section 188 ofthe Act, and
where applicable the details have been disclosed in the Financial Statements as required
by the applicable accounting standards.
14. In our opinion and as per the information and explanation Furnished to us, the
company has internal audit system commensurate with the size and nature ofitsbusiness.The
Report ofthe internal auditor furnished for the period was considered in framing the
opinion.
15. The Company has not entered into any non-cash transactions with the directors or
persons connected with him as covered under Section 192 ofthe Companies Act, 2013.
Accordingly, provisions of clause 3 (xv) of the Order are not applicable to the Company.
16. (a) According to the information and explanations given to us, the Company is not
required to be registered under section 45-IA ofthe Reserve Bank of India Act, 1934.
Accordingly, provisions of clause 3 (xvi) of the Order are not applicable to the Company.
(b) In our opinion and asexplained to us by the management, the Company has not
conducted any Non-Banking Financial or Housing Finance activities without a valid
certificate of registration from Reserve Bank of India as per the Reserve Bank of In dia
Act, 1934.
(c) In our opinion and as per the information and explanation furnished to us, the
Company is not aCore Investment Company (CIC) as defined in the regulation made by the
Reserve Bank of India. Hence, the reporting para 3(xvi)(c) and
(d) ofthe order isnotapplicable to the Company.
17. The Company has not incurredcash loss during the current year and in the
immediately preceding financial year.
18. There was no resignation ofthe statutory auditor during the year. Hence, the
reporting para 3(xviii) ofthe orderisnot applicable to the Company.
19. In our opinion and based on the books and relevant documents and on the basis of
the financial ratios, ageing and expected dates of realization of financial assets and
payment of financial liabilities, other information accompanying the financial statements,
the auditors knowledge of the Board of Directors and management plan no material
uncertainty exists ason the date ofthe
auditreportthatcompanyiscapableofmeetingitsliabilitiesexistingatthe date ofbalancesheetas
and when they fall duewithin aperiod ofoneyearfrom the balance sheet date.
20. According to the information and explanations given to us, the Company is not
required to incurred any expenses under Corporatize Social Responsibility (CSR) during the
year. Hence, Para 3(xx) ofthe order is not applicable to the company.
21. There is no subsidiary, associate or joint venture ofthe Company. Therefore, the
para with respect to qualifications or adverse remark by the respective Auditor in the
separate Companies (Auditors Report) Order (CAKO) ot the companies included in the
consolidated financial statements in, the reporting para 3(xxi) oftheorderisnotapplicable
to the Company.
For N C Agga rwa I & Co,
Chartered Accountants
Firm Registration No. 003273N
G.K. Agga rwa I
(Partner)
M. No.086622
Dated :30th May,2023
Place: Hisar
UDIN:23086622BGVJKZ5138
ANNEXURE-B TO INDEPENDENT AUDITORS REPORT
Referred to in paragraph 2(f) Report on Other Legal and Regulatory Requirements in
our Independent Auditors Report to themembers of the Company on the Financial Statements
for the year ended March 31,2023.
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of
Sub-section 3 of Section 143 of the CompaniesAct,2013 ("the Act")
We have audited the internal financial controls over financial reporting of UNITED
TEXTILE LIMITED ("the Company") as of March 31, 2023 in conjunction with our
audit of the financial statements of the Company for the year ended on that date.
Managements Responsibility forlnternal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in die Guidance Note onAudit of Internal Financial Controlsover Financial Reporting (the
"Guidance Note") issued by the Institute of Chartered Accountants of India
(ICAI). These responsibilities include the design, implementation and maintenance of
adequate internal financial controls that were operating effectively for ensuringthe
orderly and efficient conduct ofits business, including adherence to Companys policies,
the safeguarding of its assets, the prevention and detection of fraud sand errors, the
accuracy and completeness of the accounting records, and the timely preparation of
reliable financial information, as required under the Companies Act, 2013.(file
"Act" or the "Companies Act").
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note and the Standards on Auditing, issued by ICAI and deemed to be
prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to
an audit of internal financial controls,, both issued by the ICAI. Those Standardsand the
Guidance Note require thatwe complywith ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether adequate internal financial controls
over financial reporting was established and maintained and if such controls operated
effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtainingan understanding of internal financial controls overfinancial reporting,
assessingthe risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
overfinancial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A Companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A Companys internal financial control over financial
reporting indudesthosepoliciesand proceduresthat
(1) pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the Company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the Company are being made only in
accordance with authorizations of management and directors of the Company; and (3) provide
reasonable assurance regarding prevention or timely detection of unauthorized acquisition,
use, or disposition of the Companys assets thatcould have a material effecton the
financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to die risk that theinternal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or proceduresmay deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at March 31,2023, based on the
internal control over financial reporting criteria established by the Company considering
the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls over Financial Reporting issued by die ICAI.
For N C Aggarwal & Co,
Chartered Accountants
Firm Registration No. 003273N
G.K. Aggarwal
(Partner)
M. No. 086622
Dated: 30th May,2023
Place: Hi sar
UDIN:23086622BGVJKZ5138
+91-9892691696
