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Devki Leasing & Finance Ltd.

BSE: 530765 Sector: Financials
NSE: N.A. ISIN Code: INE510B01018
BSE LIVE 14:59 | 06 Jul Stock Is Not Traded.
NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 1.38
PREVIOUS CLOSE 1.45
VOLUME 1000
52-Week high 2.39
52-Week low 1.37
P/E
Mkt Cap.(Rs cr) 0
Buy Price 1.38
Buy Qty 250.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1.38
CLOSE 1.45
VOLUME 1000
52-Week high 2.39
52-Week low 1.37
P/E
Mkt Cap.(Rs cr) 0
Buy Price 1.38
Buy Qty 250.00
Sell Price 0.00
Sell Qty 0.00

Devki Leasing & Finance Ltd. (DEVKILEASING) - Auditors Report

Company auditors report

TO THE MEMBER OF DEVKI LEASING AND FINANCE LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of Devki Leasing and FinanceLimited ("the Company") which comprise the Balance Sheet as at 31st March2016 the Statement of Profit and Loss the Cash Flow Statement for the year then endedand 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 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 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.

Auditor Responsibility

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 theauditor’s 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 Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company’s Directors aswell as evaluating the overall 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.

Opinion

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 2016 and its profit and loss and its cash flows for the year ended on that date.

Emphasis of Matters

We draw attention to the following matters in the Notes to the financial statements:

Note No. 24 (b) to the financial statements indicate that the company’s policyrelating to retirement benefits which are accounted for on payment basis.

Note No. 24 (c) to the financial statements which describe the Non Provision ofInterest on Secured Loan from Dena Bank.

Our opinion is not qualified / modified in respect of these matters.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies ( Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms if sub-section (11) ofsection 143 of the Act we give in the Annexure A a statement on the matter 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.

(d) On the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms of Section164 (2) of the Act.

(e) With respect to the adequacy of internal financial controls over financialreporting of the Company and the operating effectiveness of such control refer to ourseparate repost in " Annexure B " ; and

(g) With respect to the other matters to be included in the Auditor’s 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 has disclosed the impact of pending litigations on its financialposition in its financial statements – Refer Note 24 (c) to the financial statements.

(ii) The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts. - Refer Note28 to the financial statements.

(iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For A.B.DOSHI & CO.

Chartered Accountants

Firm’s Registration No. 001577C

Ashwini Kumar Doshi

Proprietor

Membership number 031460

Indore May 04 2016

Annexure "A" to the Independent Auditors’ Report

The Annexure referred to in paragraph 1 under the heading of "Report on OtherLegal and Regulatory Requirement" of our Independent Auditors’ Report to themember of the Company on the financial statements for the year ended 31st March2016 we report that :

1 (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) All the assets have been physically verified by the management during the year andno material discrepancies were noticed on such verification. In our opinion the frequencyof verification is reasonable having regard to the size of the Company and the nature ofits assets.

(c) According to the information and explanations given to us and on the basis of ourexamination Company does not have any immovable property hence requirement of this clauseis not applicable to the company.

2. The stock of shares and securities has been physically verified by the management atreasonable intervals during the year and no material discrepancies were noticed on suchverification .In our opinion the frequency of verification is reasonable.

3. The Company has granted unsecured loans to One Party covered in the registermaintained under section 189 of the Companies Act 2013 (‘the Act’).

(a) In our opinion the rate of interest and other terms and condition on which theloan had been granted to the party covered in the register maintained under section 189 ofthe Act were not prima facie prejudicial to the interest of the Company.

(b) In the case of the loans granted to the Party covered in the register maintainedunder section 189 of the Act the borrowers have been regular in the payment of theinterest as stipulated. The term of arrangements do not stipulate any repayment scheduleand the loans are repayable on demand.

(c) There are no overdue amounts in respect of the loans granted to the party coveredin the register maintained under section 189 of the Act.

4. The Company is a non –banking financial company register under chapter IIIB ofReserve Bank of India Act 1934 (2 of 1934) hence section 186 of the Companies Act 2013with respect to investments made is not applicable to the Company.

In our opinion and according to the information and explanation given to us theCompany has complied with the provisions of section 185 of Companies Act 2013 withrespect to the loans made.

5. The Company has not accepted any deposit from the public as governed by theprovision of Section 73 to 76 or any other relevant provision of the Companies Act 2013and rules framed their under.

6. The Central Government has not prescribed the maintenance of cost record undersection 148 (1) of the Act for any of the services rendered by the Company.

7. (a) According to the information and explanation given to us and on the basis of ourexamination of the record of the company the company is regular in depositing with theappropriate authorities undisputed statutory dues including provident fundemployees’ state insurance income tax sales tax service tax custom duty exciseduty Value added tax cess and other material statutory dues applicable to it.

According to the information and explanations given to us there is no undisputedamount payable in respect of income tax sales tax service tax custom duty exciseduty value added tax and cess were in arrears as at the last day of the financial yearconcerned for a period of more than six months from the date they become payable.

(b) According to the information and explanations given to us there are no dues ofincome tax sales tax wealth tax service tax custom duty excise duty and cess whichhave not been deposited on account of any dispute.

8. The company has defaulted in repayment of dues to the Dena bank from 01.10.2009amounting to Rs. 262.8 Lac and same has been declared as Non Performing assets by the bank

9. The Company does not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3(ix) of the Order is not applicable.

10. According to information and explanations given to us no material fraud by theCompany or on the Company by its officer or employees has been noticed or reported duringthe course of our audit.

11. According to the information and explanation given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the provision of section 197 read with Schedule V to theCompanies Act .

12. In our opinion and according to the information and explanation given to us theCompany is not a nidhi company.

Accordingly paragraph 3(xii) of the Order is not applicable.

13. According to the information and explanation given to us and based on ourexamination of the records of the Company transaction with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransaction have been disclosed in the financial statements as required by applicable bythe applicable accounting standards.

14. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year

15. According to the information and explanation given to us and base on ourexamination of the records of the Company the Company has not entered into non-cashtransaction with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

16. The Company is a non –banking financial Company. Accordingly has obtainedregistration Under Section 45 IA of Reserve Bank of India Act 1934 .

For A.B.DOSHI & CO.

Chartered Accountants

Firm’s Registration No. 001577C

Ashwini Kumar Doshi

Proprietor

Membership number 031460

Indore May 04 2016

Annexure "B" to the Independent Auditors’ Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of DevkiLeasing and finance Limited ("the Company") as of 31 March 2016 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI’). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company’s policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany’s assets that 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 financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of intern.

For A. B. DOSHI & CO.
Chartered Accountants
Firm Registration No. 001577C
Ashwini Kumar Doshi
Place: Indore Proprietor
Date: May 04 2016 Membership .No. 031460