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India Lease Development Ltd.

BSE: 500202 Sector: Financials
NSE: INDIALEASE ISIN Code: INE333C01013
BSE LIVE 14:40 | 21 Sep 4.38 -0.23
(-4.99%)
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NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 4.38
PREVIOUS CLOSE 4.61
VOLUME 500
52-Week high 8.40
52-Week low 4.38
P/E
Mkt Cap.(Rs cr) 6
Buy Price 4.38
Buy Qty 23.00
Sell Price 0.00
Sell Qty 0.00
OPEN 4.38
CLOSE 4.61
VOLUME 500
52-Week high 8.40
52-Week low 4.38
P/E
Mkt Cap.(Rs cr) 6
Buy Price 4.38
Buy Qty 23.00
Sell Price 0.00
Sell Qty 0.00

India Lease Development Ltd. (INDIALEASE) - Auditors Report

Company auditors report

To

The Members of

India Lease Development Limited

Report on the Financial Statements

We have audited the accompanying financial statements of India Lease DevelopmentLimited ("the Company") which comprise the Balance Sheet as at March312016 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

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's 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 anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe 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 March312016 and its profit and its cash flows for the year ended on that date.

Emphasis of Matter

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

i) Note No. 21 to the financial statements which describes the Company has discontinuedfresh hire purchase / leasing business. The management is of the view that the realizationof the assets will be sufficient to pay off its entire liabilities. In view of the abovethe financial statements have been prepared on the assumption that the Company willcontinue as a going concern.

ii) Note No. 22 to the financial statements which describes that there isnon-compliance of the provisions of Non Banking Financial Companies Prudential Norms(Reserve Bank) Directions 1998 with regard to maintenance of CreditConcentration/Investment Norms in respect of lending to one of the Company where these areexceeding the limits.

Our opinion is not qualified in respect of these matters.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of Section 143 ofthe Act we give in the ‘Annexure-A' a statement on the matters specified inparagraphs 3 and 4 of the Order.

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;

(e) On the basis of written representations received from the directors as on March312016 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2016 from being appointed as a director in terms of Section164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report 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 does not have any pending litigations which would impact its financialstatements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses; and

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

For S. N. Dhawan and Co.
Chartered Accountants
Firm Reg. No.: 000050N
(N.C. Setia)
Place : New Delhi Partner
Date : May 28 2016 Membership. No. 012533

Annexure - A to the Independent Auditor's Report

(Referred to in paragraph 1 under the heading "Report on Other Legal andRegulatory Requirements" of our report of even date)

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

(b) As per information and explanations given to us the fixed assets have beenphysically verified by the management during the year. In our opinion the frequency ofverification is reasonable and no material discrepancies were noticed.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company does not hold any immovable propertiesTherefore the provisions of clause 3 (i)(c) of the Order are not applicable to theCompany.

ii) The Company does not have any inventories. Therefore the provisions of paragraph 3(ii) of the Order are not applicable.

iii) According to the information and explanations given to us and based on ourexamination of the documents and records the Company has granted unsecured loans to thecompanies firms limited liability partnerships or other parties covered in the registermaintained under Section 189 of the Act in respect of such loans;

a) Terms and conditions of loans so granted are not prima facie prejudicial to theinterest of the Company.

b) According to the information and explanations given to us no repayment schedule hasbeen specified and accordingly the question of regularity in repayment of principal amountdoes not arise. However the interest is being paid regularly.

c) As stated above no repayment schedule have been specified therefore there are noamount which is overdue for more than 90 days.

iv) In our opinion and according to information and explanations given to us theCompany has in respect of loans investments guarantees and security complied with theprovisions of Section 185 and 186 of the Act.

v) The Company has not accepted any deposits within the meaning of Sections 73 to 76 ofthe Act. Therefore the provisions of clause 3(v) of the Order are not applicable to theCompany.

vi) According to the information and explanations given to us maintenance of costrecords under sub-section (1) of Section 148 of the Companies Act 2013 has not beenprescribed by the Central Government.

vii) (a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company is regular in depositingundisputed statutory dues including provident fund employees' state insuranceincome-tax service tax cess and other material statutory dues to the appropriateauthorities and no undisputed amounts payable in respect of above were in arrears as atMarch 312016 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 dues ofincome-tax sales-tax and service tax which have not been deposited on account of anydispute.

viii) In our opinion and according to the information and explanations given to us thecompany has not taken any loan from financial institution banks or debenture holders.Therefore the provisions of clause 3 (viii) of the Order are not applicable to theCompany.

ix) In our opinion and according to the information and explanations given to us theCompany has not raised any moneys by way of initial public offer or further public offer(including debt instrument) and term loan. Therefore the provisions of clause 3 (ix) ofthe Order are not applicable to the Company.

x) Based on our audit procedures and as per the information and explanations given bythe management we report that no fraud by the Company or on the Company by its officersor employees has been noticed or reported during the year.

xi) According to the information and explanations given to us and based on ourexamination of the books of account and other records of the Company the managerialremuneration has been paid or provided in accordance with the requisite approvals mandatedby the provisions of Section 197 read with the schedule V to the Act.

xii) According to the information and explanations given to us the Company is not aNidhi Company. Therefore the provisions of Clause 3(xii) of the Order are not applicableto the Company.

xiii) Based on our audit procedures and as per the information and explanationsprovided by the management in our opinion the Company has entered into transactions withrelated parties in compliance with the provisions of section 177 and 188 of the Act whereapplicable and the details of such transactions have been disclosed in the notes to thefinancial statements as required by the applicable accounting standards.

xiv) According to the information and explanations given to us and based on ourexamination of records the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year.

Therefore the provisions of clause 3(xiv) of the Order are not applicable to theCompany.

xv) According to the information and explanations given to us and based on ourexamination of documents and records the Company has not entered into any non-cashtransactions with directors or persons connected with him. Therefore the provisions ofclause 3(xv) of the Order are not applicable to the Company.

xvi) The Company has obtained the registration required registered under section 45-IAof Reserve Bank of India Act 1934.

For S. N. Dhawan and Co.
Chartered Accountants
Firm Reg. No.: 000050N
(N.C. Setia)
Place : New Delhi Partner
Date : May 28 2016 Membership. No. 012533

Annexure - B to the Independent Auditor's Report

(Referred to in paragraph 2(f) under the heading "Report on Other Legal andRegulatory Requirements" of our report of even date) Report on the InternalFinancial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act2013 ("the Act")

We have audited the internal financial controls over financial reporting of IndiaLease Development Limited ("the Company") as of March 312016 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat 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). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

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 ICAI. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively 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 judgement 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 controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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 March 312016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the ICAI.

For S. N. Dhawan and Co.
Chartered Accountants
Firm Reg. No.: 000050N
(N.C. Setia)
Place : New Delhi Partner
Date : May 28 2016 Membership. No. 012533