United Textiles Ltd Directors Report.

To

The Members of UNITED TEXTILES LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of UNITED TEXTILES LIMITED("the March 31, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended and other explanatory information.

Management’s Responsibility for the Standalone Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of theCompanies preparation of these standalone financialstatements that give a true and fair view of the financial position, Company in accordance with the accounting principles generally accepted in India, including the Accounting Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and application of appropriate accounting policies; making judgments and estimates that are reasonable and maintenance of adequate internal financial controls, that were operating effectively for ensuring the relevant to the preparation and presentation of the financial statements that give a true and fair view due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these standalone financial statements based on our audit Act, the accounting and auditing standards and matters which are required to be included in the audit made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10)of with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement fraud or error. In making those risk assessments, the auditor considers internal financial control relevant statements that give a true and fair view in order to design audit procedures that are appropriate in the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the information required by the Act in the manner so required and give a true and fair view in conformity India, of the state of affairs of the Company as at March 31, 2016 and its profit and its cash flows for the

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order, 2016 ("the Order") issued by the Central section 143 of the Companies Act, 2013 we give in the "Annexure-A" a statement on the matters specified 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 best of our knowledge audit.

(b) In our opinion, proper books of account as required by law have been kept by the Company so far

(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by

(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards Rule 7 of the Companies (Accounts) Rules, 2014.

(e) On the basis of the written representations received from the directors of the company as on March none of the directors of the company are disqualified as on March 31, 2016 from being appointed as a

(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company refer to our separate report in Annexure-B

(g) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 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 as on March 31, 2016;

ii. The Company did not have any long-term contracts including derivative contracts for which there were

iii. There were no amount payable which was required to be transferred by the company to the Investor

For N.C. Aggarwal & Co.

Chartered Accountants

Firm Registration No. 003273N

G. K. Aggarwal

Partner

M. No.086622

Date: May 28, 2016

Place: New Delhi

ANNEXURE-A TO INDEPENDENT AUDITORS’ REPORT

(Annexure referred to in our report of even date to the members of UNITED TEXTILES LIMITED on the

1. (a) The Company has maintained proper records showing full particulars, including quantitative details

(b) The Management in accordance with a phased programme of verification adopted by the Company assets. In our opinion, the frequency of verification is reasonable having regard to the size of the Company knowledge, no material discrepancies have been noticed on such verification.

(c) According to the information and the explanations given to us and on the basis of our examination immovable properties are held in the name of the Company.

2. The management has conducted physical verification of inventory at reasonable intervals during the inventory records, in our opinion, the Company is maintaining proper records of inventories. The inventories as compared to book records were not material and the same have been properly dealt with

3. According to the information and the explanations given to us, the company has not granted any loans, Liability Partnerships or other parties covered in the register maintained under section 189 of the 3(iii) (a) (b) and (c) of the order are not applicable to the company and hence not commented upon.

4. The Company has not granted any loans or given any guarantee and security covered under Section the provisions of clause 3(iv) of the order are not applicable to the company and hence not commented

5. According to the information given to us, the Company has not accepted any deposits under the or any other relevant provisions of the companies Act and the Companies (Acceptance of Deposits) Rules, Section 73 to 76, by the Company Law Board or National Company Law Tribunal or Reserve Bank of India

6. As informed to us, Company is not required to maintain the cost records under sub-section (l) of section provisions of clause 3(vi) of the order are not applicable to the company.

7. (a) According to the information and explanations given to us, the Company is regular in depositing dues including provident fund, employees’ state insurance, income tax, sales tax, service tax, duty of other statutory dues with the appropriate authorities. There are no arrears as at March 31, 2016 for a become payable.

(b) According to the information and explanations given to us, there are no dues in respect of income excise and value added tax which have not been deposited with the appropriate authorities on account

8. In our opinion, on the basis of books and records examined by us and according to the information and defaulted in repayment of dues to banks. The company does not have any dues to financial institutions,

9. The Company has not raised any money by way of initial public offer or further public offer (including the information and explanation given to us, the term loans have been applied for the purposes for

10. According to the information and explanations given to us and as represented by the Management records of the Company and in accordance with generally accepted auditing practices in India, we have committed on or by the Company or by its officers or employees during the year.

11. The Company has paid/provided for managerial remuneration to whole-time director in accordance provisions of Section 197 read with Schedule V of the Companies Act, 2013.

12. The company is not a Nidhi Company. Accordingly, the provisions of clause 3 (xii) of the Order are

13. The Company has complied with the provisions of Section 177 and 188 of the Companies Act, 2013 w applicable. Details of the transactions with the related parties have been disclosed in the financial standards.

14 According to the information and explanations given to us and based on our examination of the records preferential allotment or private placement of shares or fully or partly convertible debentures during the Order are not applicable to the Company.

15 According to the information and explanations given to us and based on our examination of the records into any non-cash transactions with directors or persons connected with him as covered under Section provisions of clause 3 (xv) of the Order are not applicable to the Company.

16 The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, Order are not applicable to the Company.

For N.C. Aggarwal & Co.

Chartered Accountants

Firm Registration No. 003273N

G. K. Aggarwal

Partner

M. No. 086622

Date: May 28, 2016

Place: New Delhi

ANNEXURE-B TO INDEPENDENT AUDITORS’ REPORT

Referred to in paragraph 2(f) ‘Report on Other Legal and Regulatory Requirements’ in our Independent the Standalone Financial Statements for the year ended March 31, 2016.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies We have audited the internal financial controls over financial reporting of UNITED TEXTILES LIMITED ("the with our audit of the standalone financial statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internal financial controls criteria established by the Company considering the essential components of internal control stated in Controls over Financial Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants design, implementation and maintenance of adequate internal financial controls that were operating conduct of its business, including adherence to Company’s policies, the safeguarding of its assets, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial 2013.(The "Act" or the "Companies Act").

Auditors’ Responsibility

Our responsibility is to express an opinion on the Companys internal financial controls over financial in accordance with the Guidance Note and the Standards on Auditing, issued by ICAI and deemed to Act, 2013, to the extent applicable to an audit of internal financial controls, , both issued by the ICAI. we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance over financial reporting was established and maintained and if such controls operated effectively in all

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal their operating effectiveness. Our audit of internal financial controls over financial reporting included controls over financial reporting, assessing the risk that a material weakness exists, and testing and internal control based on the assessed risk. The procedures selected depend on the auditor’s judgment, 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 financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Companys internal financial control over financial reporting is a process designed to provide reasonable reporting and the preparation of financial statements for external purposes in accordance with generally internal financial control over financial reporting includes those policies and procedures that (1) pertain reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the transactions are recorded as necessary to permit preparation of financial statements in accordance with receipts and expenditures of the Company are being made only in accordance with authorizations of provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, could have a material effect on 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 override of controls, material misstatements due to error or fraud may occur and not be detected. Also, financial controls over financial reporting to future periods are subject to the risk that the internal financial inadequate because of changes in conditions, or that the degree of compliance with the policies or

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system controls over financial reporting were operating effectively as at March 31, 2016, based on the internal by the Company considering the essential components of internal control stated in the Guidance Note Reporting issued by the ICAI.

For N.C. Aggarwal & Co.

Chartered Accountants

Firm Registration No. 003273N

G. K. Aggarwal

Partner

M. No. 086622

Date: May 28, 2016

Place: New Delhi