TO THE MEMBERS OF
UNITED CREDIT LIMITED
Report on the Audit of the Financial Statements
Opinion
1. We have audited the accompanying financial statements of United Credit
Limited("the Company), which comprise the Balance Sheet as at 31st March 2022, the
Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash
Flows ,the Statement of Changes in Equity and notes to the financial statements for the
year then ended on that date including a summary of significant accounting policies and
other explanatory information (herein after referred to as "Financial
Statements").
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 sorequired 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 March 31, 2022, its profit (including Other
Comprehensive Income), Changes in equity and its cash flows for the year ended on that
date.
Basis for Opinion
2. We conducted our audit in accordance with the Standards on Auditing (SAs) 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 Financial Statements
section of our report. We are independent of the Company in accordance with the Code of
Ethics issued by the Institute of Chartered Accountants of India together with the ethical
requirements that are relevant to our audit of the financial statements under the
provisions of the Act and the Rules thereunder, and we have fulfilled our other 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
for our opinion.
Key Audit Matters
3. Key Audit Matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. These matters
were addressed in the context of our audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters. We
have determined that there are no key audit matters to communicate in our report.
Other Information
4. The Companys Board of Directors is responsible for the other information. The other
information comprises the information included in the Management Discussion and Analysis,
Boards Report including Annexures to Board Report and Shareholders Information but does
not include the financial statements and our auditors report thereon . The aforesaid
documents are expected to be made available to us after the date of this auditors report.
5. Our opinion on the financial statements does not cover the other information and we
do not express any form of assurance conclusion thereon.
6. In connection with our audit of the financial statements, our responsibility is to
read the other information when it becomes available and, in doing so, consider whether
the other information is materially inconsistent with the financial statements or our
knowledge obtained in the audit, or otherwise appears to be materially misstated.
7. When we read the aforesaid documents, if we conclude that there is a material
misstatement therein, we are required to communicate the matters to those charged with
governance.
Managements Responsibility for the Financial Statements
8. The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of
these financial statements that give a true and fair view of the financial position,
financial performance, changes in equity 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. 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 statement that give a true and fair view and
are free from material misstatement, whether due to fraud or error.
9. In preparing the financial statements, management is responsible for assessing the
Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
10. The Board of Directors are also responsible for overseeing the companys financial
reporting process.
Auditors Responsibility for the Audit of the Financial Statements
11. Our objectives are to obtain reasonable assurance about whether the 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 is not a guarantee that an audit conducted in accordance with SAs
will 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 of users taken on the
basis of these financial statements.
12. 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 the risks of material misstatement of the 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.
• Obtained an understanding of internal control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances. Under Section 143(3)
(i) of the Companies Act, 2013, we are 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 management.
• Conclude on the appropriateness of managements use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the 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 as
a going concern.
• Evaluate the overall presentation, structure and content of the financial
statements, including the disclosures, and whether the financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
13. 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 during our audit.
14. 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 to bear on
our independence, and where applicable, related safeguards.
15. From the matters communicated with those charged with governance, we determine
those matters that were of most significance in the audit of thefinancial statements of
the current period and are therefore the key audit matters. We describe these matters in
our auditors report unless law or regulation precludes public disclosure about the
matters or when we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh the
public interest benefits of such communication.
16. Materiality is the magnitude of misstatements in the financial statements that,
individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the 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 results of our work; and (ii) to evaluate the effect of any
identified misstatements in the financial statements.
Report on Other Legal and Regulatory Requirements
17. As required by the Companies (Auditors Report) Order, 2020 ("the Order")
issued by the Central Government oflndia in terms of sub-section (11) of section 143 of
the Act, we give in the Annexure-A, a statement on the matters specified in paragraphs 3
and 4 of the Order, to the extent applicable.
18. 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 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 books.
(c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive
income) and the Cash Flow Statement, Statement of Changes in Equity dealt with by this
report are in agreement with the books of account .
(d) In our opinion, the aforesaid 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, 2022 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2022 from being appointed as a director in terms of Section
164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate Report in "Annexure B".
(g) With respect to the other matters to be included in the Auditors Report in
accordance with the requirements of section 197(16) of the Act, as amended: In our opinion
and to the best of our information and according to the explanations given to us, the
remuneration paid by the Company to its directors during the year is in accordance with
the provisions of section 197 of the Act.
(h) 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:
a. The Company has disclosed the impact of pending litigations as at 31st March, 2022
on its financial statements - Refer Note 25 to the financial statements.
b. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
c. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company. d. (i) The Management has represented that,
to the best of its knowledge and belief, no funds (which are material either individually
or in the aggregate) have been advanced or loaned or invested (either from borrowed funds
or share premium or any other sources or kind of funds) by the Company to or in any other
person or entity, including foreign entity ("Intermediaries"), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall,
whether, directly or indirectly lend or invest in other persons or entities identified in
any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries")
or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(ii) The Management has represented, that, to the best of its knowledge and belief, no
funds (which are material either individually or in the aggregate) have been received by
the Company from any person or entity, including foreign entity ("Funding
Parties"), with the understanding, whether recorded in writing or otherwise, that the
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 any guarantee, security or the like on
behalf of the Ultimate Beneficiaries;
(iii) Based on the audit procedures that have been considered reasonable and
appropriate in the circumstances, nothing has come to our notice that has caused us to
believe that the representations under sub-clause (i) and (ii) of Rule 11 ( e), as
provided under (i) and (ii) above, contain any material misstatement.
e. The Company has neither proposed any dividend in the Previous year or in the current
year nor paid any interim dividend during the year.
ANNEXURE- A: TO THE INDEPENDENT AUDITORS REPORT
To the Members of UNITED CREDIT LIMITED
[Referred to in paragraph 17 of the Auditors Report of even date]
1. (a)(A) The Company has maintained proper records showing full particulars including
quantitative details and situation of Property, plant and Equipment.
(a) (B) According to the information and explanations given to us and the records of
the Company examined by us, the company does not have any intangible assets.
(b) The Property, plant and Equipment of the Company have been physically verified by
the management during the year and no material discrepancies between the book records and
the physical inventory have been noticed. In our opinion, the frequency of verification is
reasonable.
(c) According to the information and explanations given to us and the records of the
Company examined by us, the company does not have any immovable properties.
(d) According to the information and explanations given to us and the records of the
company examined by us, the Company has not revalued any of its Property, Plant and
Equipment or Intangible assets during the year.
(e) According to the information and explanations given to us no proceeding has been
initiated during the year or are pending against the Company as at March 31,2022 for
holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as
amended in 2016) and rules made thereunder.
II. (a) The Company does not have any inventory at the year-end and hence reporting
under this clause is not applicable.
(b) According to the information and explanations given to us and the records of the
company examined by us, the company has not borrowed working capital loans from any bank
during the year and hence reporting under this clause is not applicable.
111. (a) The Company is a registered NBFC hence reporting under this clause is not
applicable.
(b) According to the information and explanation given to us and the records of the
company examined by us, terms and conditions of investment made are not prima-facie
prejudicial to the interests of the Company.
( c) According to the information and explanation given to us and records of the
Company examined by us , there is no stipulation of recovery of principals as these loans
are repayable at demand. For interest payments, repayment terms are fixed.
(d) The aforesaid loans being repayable on demand, there is no amount overdue for more
than ninety days in respect of recovery of principal. Interest are repayable on quarterly
basis and no dues are outstanding for more than ninety days as on 31st March, 2022.
(e) The Company is a registered NBFC hence reporting under this clause is not
applicable.
(f) According to information and explanation given to us and records of the Company
examined by us, details of loans repayable on demands are as per below given
(Rs. in lakhs)
|
All Parties |
Promoters |
Related Parties |
| Aggregate amount of loans/ advances in nature of loans - Repayable on demand (A) -
Agreement does not specify any terms or period of repayment (B) |
1609.35 |
- |
- |
| Total (A+B) |
1609.35 |
- |
- |
| Percentage of loans/advances in nature of loans to the total loans |
100% |
- |
- |
IV. According to the information and explanations given to us and the records of the
Company examined by us, the Company has not made any investment, advanced any loan, given
any guarantee or provided any securities to others as per section 185 and 186 of the Act
and hence reporting under this clause is not applicable.
V. The Company has not accepted any deposits from public during the year, within the
meaning of the directives issued by the Reserve Bank of India and the provisions of
sections 73 to 76 or any other relevant provisions of the Act and the rules framed there
under. Moreover, no order has been passed by Company Law Board or National Company Law
Tribunal or Reserve Bank of lndia or any other court or tribunal.
VI. The Central Government of India has not prescribed maintenance of cost records
under sub-section (1) of Section 148 of the Act for any of the products of the Company .
VII. (a) According to the information and explanations given to us and the records of
the Company examined by us, in our opinion, the Company is generally regular in depositing
the undisputed statutory dues including provident fund, income-tax, goods and service tax,
duty of customs, cess and any other statutory dues, as applicable, with the appropriate
authorities. (b) According to the information and explanations given to us and the records
of the Company examined by us, there has been no dues of income tax, goods and services
Tax , cess ,provident fund and other statutory dues as at 31st March 2022 which have not
been deposited on account any dispute as at 31st March 2022.
VIII. There were no transactions relating to previously unrecorded income that have
been surrendered or disclosed as income during the year in the tax assessments under the
Income Tax Act, 1961 (43 of 1961).
IX. The Company has not taken any loans or other borrowings from any lender. Hence
reporting under this clause is not applicable.
X. (a) The Company has not raised moneys by way of initial public offer or further
public offer (including debt instruments) during the year and hence reporting under this
clause is not applicable. (b) During the year, the Company has not made any preferential
allotment or private placement of shares or convertible debentures (fully or partly or
optionally) and hence reporting under this clause is not applicable.
XI. (a) During the course of our examination of the books and records of the Company,
carried out in accordance with the generally accepted auditing practices in India, and
according to the information and explanations given to us, we have neither come across any
instance of fraud on or by the Company, noticed or reported during the year, nor have we
been informed of such case by the management.
(b) No report under sub-section (12) of section 143 of the Companies Act has been filed
in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014
with the Central Government, during the year and upto the date of this report.
(c) According to the information and explanations given to us and the records of the
Company examined by us, the Company has not received any complaints from any
whistle-blower during the year (and upto the date of this report) and hence reporting
under this clause is not applicable.
XII. The Company is not a Nidhi Company and hence reporting under this clause is not
applicable.
XIII. According to the information and explanations given to us and the records of the
Company examined by us, the Company has complied with the requirements of sections 177 and
188 of the Act with respect to its transactions with the related parties. Pursuant to the
requirement of the applicable Accounting Standard, details of the related party
transactions have been disclosed in Note 27 of the financial statements for the year under
audit.
XIV. (a) In our opinion the Company has an adequate internal audit system commensurate
with the size and the nature of its business.
(b) We have considered the internal audit reports for the year under audit, issued to
the Company during the year and till date, in determining the nature, timing and extent of
our audit procedures.
xv. In our opinion during the year the Company has not entered into any non-cash
transactions with its directors or persons connected with its directors. and hence
provisions of section 192 of the Companies Act, 2013 are not applicable to the Company .
XVI. (a) The Company is a Non-Banking Finance Company (NBFC) and is required to be
registered under Section 45-IA of the Reserve Bank of India Act, 1934. The Certificate of
registration no. 05.03110 has been issued by the Reserve Bank of India to the Company .
(b)
The Company is a registered NBFC and hence reporting under clause 3 (xvi) (b) & (
c) is not applicable.
XVII. According to the information and explanations given to us and the records of the
Company examined by us the company has not incurred cash losses in the financial year and
in the immediately preceding financial year.
XVlll. There has been no resignation of the statutory auditors of the Company during
the year.
XIX. On the basis of the financial ratios, ageing and expected dates of realisation of
financial assets and payment of financial liabilities, other information accompanying the
financial statements and our knowledge of the Board of Directors and Management plans and
based on our examination of the evidence supporting the assumptions, nothing has come to
our attention, which causes us to believe that any material uncertainty exists as on the
date of the audit report indicating that Company is not capable of meeting its liabilities
existing at the date of balance sheet as and when they fall due within a period of one
year from the balance sheet date. We, however, state that this is not an assurance as to
the future viability of the Company. We further state that our reporting is based on the
facts up to the date of the audit report and we neither give any guarantee nor any
assurance that all liabilities falling due within a period of one year from the balance
sheet date, will get discharged by the Company as and when they fall due.
xx. According to information and explanation given to us and records of the Company
examined by us, Provisions of sec 135 (5) of the Companies Act. 2013 is not applicable to
Company.
XXI. The Company does not have any subsidiary, associate and joint venture hence
reporting under this clause is not applicable.
ANNEXURE- B TO THE INDEPENDENT AUDITORS REPORT To the Members of United Credit Limited
[Referred to in paragraph 18 (f) of the Independent Auditors Report of even date]
Report on the Internal Financial Control under Clause (i) of Sub -sections 3 of Section
143 of the Companies Act, 2013("the Act")
1. We have audited the internal financial controls over financial reporting of United
Credit Limited ("the Company) as of 31st March, 2022 in conjunction with our
audit of the financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Control
2. The Companys management is responsible for establishing and maintaining internal
financial control 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 (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 ensuring the
orderly and efficient conduct of its business, including adherence to companys policies,
the safeguarding of its assets, the prevention and detection of frauds and errors, the
accuracy and completeness of the accounting records, and the timely preparation of
reliable financial information, as required under the Companies Act, 2013.
Auditors Responsibility
3. 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 Standard on Auditing, issued by ICAI and deemed
to be prescribed under section 143(10) of the Act, to the extent applicable. Those
Standards and the Guidance Note require that we comply with 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.
4. 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 includes
obtaining an understanding of internal financial control over financial reporting,
assessing the risk that a material Weakness exists, and testing and evaluating the design
and operating effectiveness of internal controls based on the assessed risk . The
procedure selected depends on the auditors judgment, including the assessment of the risk
of material misstatement of the financial statement, whether due to fraud or error.
5. 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
over financial reporting.
Meaning of internal Financial Control over Financial Reporting
6. 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 includes those policies and procedures that:
1) Pertains to the maintenance of the records that, in reasonable detail, accurately
and fairly reflect the transactions and dispositions of the assets of the company;
2) Provide reasonable assurance that the transactions are recorded as necessary to
permit preparation of financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditure of the Company are being made
only in accordance with authorization of management and directors of company; and
3) Provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the Companys assets that could have a
material effect on the financial statements.
Inherent Limitations of Internal Financial Control over Financial Reporting
7. Because of inherent limitation of internal financial control over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to errors or fraud may occur and not be detected.
Also, projections of any evaluations of the internal financial control over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
8. In our opinion, the Company has, in all material respect, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at 31st March 2022, 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 Control over Financial Reporting, issued by ICAI.
|
For L. B. Jha & Co. |
|
Chartered Accountants |
|
Firm Registration No.: 301088? |
|
Sd/- |
|
(D.N. Roy) |
|
Partner |
| Place: Kolkata |
(Membership No.: 300389) |
| Date: 27-05-2022 |
UDIN: 22300389AJUSDX7359 |
+91-9892691696
