To the Members
NALIN LEASE FINANCE LTD.
Report on the Financial Statements
We have audited the accompanying financial statements of NALIN LEASE FINANCE LTD.("the company") which comprise the Balance Sheet as at 31 March 2017 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters in section 134(5)of the Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating 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.
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 our judgmentincluding the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments we considersinternal financial control relevant to the Companys preparation of the financialstatements that give true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made byCompanys Directors as well as evaluating the overall presentation of the financialstatements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
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;
a) In the case of the Balance Sheet of the state of affairs of the Company as at March31 2017;
b) In the case of the Statement of Profit and Loss of the profit for the year ended onthat date; and
c) In the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofSection 143 of the Act we give in the Annexure-A a statement on the mattersspecified in the 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 appears from our examination of those books .
c) the Balance Sheet the Statement of Profit and Loss and Cash Flow Statement dealtwith 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 31 March2017 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2017 from being appointed as a director in terms of Section 164(2) of theAct.
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 Auditors Report and inaccordance with rule 11 of the companies (Audit & Auditors) Rule 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 litigation which would impact its financial positions |
|ii. ||The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses. |
|iii. ||There were no amounts which were required to be transferred to the |
Investor Education and Protection Fund by the Company. iv Company had providedrequisites disclosure in financial statement as to holding as well as dealing in specifiedBank Notes during the period from 8th November 2016 to 30th December 2016. These are inaccordance with the books of accounts maintained by the company. Refer to Note 1 (X) tothe Financial statements.
For Deepak R. Soni & Co.
Place: - Himatnagar
Annexure to the Independent Auditors Report
The Annexure referred to in our Independent Auditors Report to the members of theCompany on the financial statements for the year ended 31 March 2017 we report that:
|3 (i) (a) ||In our opinion the Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. |
|(b) ||The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of three years. In accordance with this programme certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. . |
|(c) ||The Title Deeds of the Immovable properties are held in the name of the Company itself |
|3 (ii) (a) ||The Company is a finance company and it does not hold any physical inventories except stationery & Adhesive Stamp . Hence paragraph 3(ii) of the Order is not applicable |
|(b) ||In our opinion and based on information provided to us no material discrepancies were noticed and in the absence of the same commenting on dealing with the books of accounts does not arise |
|3 (iii) ||Based on information given to us during the year the company has not granted any loans secured or unsecured loan to any party covered in the register maintained under Section 189 of Companies Act 2013. |
|3 (iv) ||Based on information given to us during the year the company has not granted any loans investments guarantees and securities to any party as specified under Section 185 and 186 of Companies Act 2013. |
|3 (v) ||In our opinion the company has not accepted deposits. Hence commenting on the following does not arise. |
| ||The company's compliance with directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act 2013 and the rules framed there under wherever applicable |
| ||The nature of contraventions |
| ||Whether any order has been passed by the Company Law Board or National Company |
| ||Law Tribunal and the company's compliance with the same |
|3 (vi) ||The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Act. |
|3 (vii)(a) ||In our opinion the company is regular in depositing the undisputed statutory dues including provident fund employees state insurance incometax sales tax service tax duty of customs duty of excise value added tax cess and any other statutory dues with the appropriate authorities. |
|(b) ||According to the information and explanations given to us there are no material dues of income-tax sales tax service tax duty of customs and excise and cess which have not been deposited with the appropriate authorities on account of any dispute. |
|3 (viii) ||In our opinion and based on information given to us the company has not defaulted in repayment of dues to the banks. |
|3 (ix) ||During the year under Audit the Company has not raised moneys by way of IPO or Further Public Offer including debts instruments and term loans. |
|3 (x) ||According to the information and explanations given to us No fraud by the Company or any fraud on the Company by its officers or employees has been noticed or reported during the year. |
|3 (xi) ||In our opinion managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V to the Companies Act. |
|3 (xii) ||In our opinion the Company is not a Nidhi Company hence this para is not applicable. |
|3(xiii) ||In our opinion all transactions with the related parties are in compliance with the Section 177 and 188 of the Companies Act 2013 and details have been disclosed in the Financial Statements as require by the applicable accounting standards. |
|3(xiv) ||The company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review hence this para is not applicable. |
|3(xv) ||According to the information and explanation given to us the Company has not entered into any Non cash Transactions with Directors or person connected with them. Hence this para is not applicable. |
|3(xvi) ||The Company is registered with RBI as NBFC and has Certificate of registration bearing No. 01.00242 under Section 45IA of the Reserve bank of India Act 1934. |
For Deepak R. Soni & Co.
Place :- Himatnagar
"Annexure B" to the Independent Auditors Report of even date on theStandalone Financial Statements of NALIN LEASE FINANCE LTD
(Report on Other Legal and Regulatory Requirements section of our report of evendate to the Members of NALIN LEASE FINANCE LTD)
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 NALINLEASE FINANCE LTD ("the Company") as of March 31 2017 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.
Managements Responsibility for Internal Financial Controls
The Companys 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to companys 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 Companies Act 2013.
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 auditors 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 Companys 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 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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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.
In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2017 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.
For Deepak R. Soni & Co.
Place :- Himatnagar