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Baid Leasing & Finance Co Ltd.

BSE: 511724 Sector: Financials
NSE: N.A. ISIN Code: INE020D01022
BSE 00:00 | 24 Jun 22.10 0.95
(4.49%)
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NSE 05:30 | 01 Jan Baid Leasing & Finance Co Ltd
OPEN 22.00
PREVIOUS CLOSE 21.15
VOLUME 3454
52-Week high 26.85
52-Week low 3.01
P/E 30.27
Mkt Cap.(Rs cr) 265
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 22.00
CLOSE 21.15
VOLUME 3454
52-Week high 26.85
52-Week low 3.01
P/E 30.27
Mkt Cap.(Rs cr) 265
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Baid Leasing & Finance Co Ltd. (BAIDLEASING) - Auditors Report

Company auditors report

To the Members of

Baid Leasing and Finance Co.Ltd.

"Baid House" Ilnd Floor

1 Tara Nagar Ajmer Road

Jaipur - 302006.

Report on the Ind AS Financial Statements Opinion:

We have audited the accompanying standalone Ind AS Financial Statements of Baid Leasingand Finance Company Limited (CIN:L65910RJ1991PLC006391) which comprise the Balance Sheetas at 31 March 2021 and the

Statement of Profit and Loss (including the Statement of Other Comprehensive Income)Statement of Changes in Equity and Statement of Cash flow for the year then ended andnotes to the Standalone Ind-AS Financial Statements including a summary of thesignificant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind-AS Financial Statements give the informationrequired by the Companies Act 2013 ('the Act') in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under Section133 of the Act read with Companies(Indian Accounting Standards)Rules 2015 as amended("Ind-AS")and other accounting standards generally accepted in India of thestate of affairs of the Company as at 31 March 2021 its Profit (or Loss)* and Cash flowfor the year ended on that date.

Basis for opinion

We conducted our audit of the standalone Ind-AS financial statements in accordance withthe standards on auditing specified under Section 143 (10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Ind-AS Financial Statements section of ourreport. We are independent of the Company in accordance with the code of ethics issued bythe Institute of Chartered Accountants of India together with the ethical requirementsthat are relevant to our audit of the Ind AS financial statements under the provisions ofthe Act and the rules thereunder and we have fulfilled our other ethical responsibilitiesin accordance with these requirements and the ICAI's code of ethics.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on standalone Ind AS financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Ind-AS financial statements of the current period. Thesematters were addressed in the context of our audit of the Ind-AS financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.

We have determined the matters described below to be the key audit matters to becommunicated in our report.

Description of Key Audit Matters

Key audit matters How our audit addressed the key audit matter
(a) Impairment of financial assets (expected credit losses)
Recognition and measurement of impairment of loans and advances involve significant management judgments. • We read and assessed the Company's accounting policies for impairment of financial assets and their compliance with Ind-AS 109.
With the applicability of Ind AS 109 credit loss assessment is now based on expected credit loss ('ECL') model. The Company's impairment allowance is derived from estimates including the historical default and loss ratios. Management exercises judgment in determining the quantum of loss based on a range of factors. • We tested the criteria for staging of loans based on their past-due status to check compliance with requirement of Ind-AS 109.
• We evaluated the reasonableness of the Management estimates by understanding the process of ECL estimation and tested the controls around data extraction and validation.
The most significant areas are: • Segmentation of loan book • Tested the ECL model including assumptions and underlying computation.
• Loan staging criteria • Assessed the floor/minimum rates of provisioning applied by the Company for loan products with inadequate historical defaults.
• Calculation of probability of default / Loss given default • Audited disclosures included in the Ind-AS financial statements in respect of expected credit losses.
• Consideration of probability weighted scenarios and forward looking macro-economic factors
There is a large increase in the data inputs required by the ECL model. This increases the risk of completeness and accuracy of the data that has been used to create assumptions in the model. In some cases data is unavailable and reasonable alternatives have been applied to allow calculations to be performed.

Other Information

The Company's board of directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the Board'sReport including Annexures to Board's Report but does not include the standalone Ind-ASfinancial statements and our auditor's report thereon.

Our opinion on the standalone Ind-AS financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Ind-AS Financial Statements our responsibility isto read the other information and in doing so consider whether the other information ismaterially inconsistent with the Standalone Ind-AS Financial Statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Management's Responsibility for the Ind-AS Financial Statements

The Company's board of directors are responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these Ind-AS Financial Statements thatgive a true and fair view of the financial position financial performance and cash flowsof the Company in accordance with the accounting principles generally accepted in Indiaincluding the accounting standards specified under Section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of 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 statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the Ind-AS Financial Statements management is responsible for assessingthe Company's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's responsibilities for the audit of the Ind AS Financial Statements

Our objective is to obtain reasonable assurance about whether the Ind AS FinancialStatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance withStandard of Auditing will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these Ind AS Financial Statements.

As part of an audit in accordance with Standard of Auditing we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the Ind AS FinancialStatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under Section 143(3)(i)of the act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe Ind AS Financial Statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the Ind AS FinancialStatements including the disclosures and whether the Ind AS Financial Statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

Materiality is the magnitude of misstatements in the standalone Ind AS FinancialStatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the standalone Ind AS Financial Statementsmay 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 Standalone Ind AS FinancialStatements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Ind AS Financial Statements ofthe current period and are therefore the key audit matters. We describe these matters inour auditor's report unless law or regulation precludes public disclosure about the matteror when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

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 in clauses 3and 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 Statement andStatement of Changes in Equity dealt with by this Report are in agreement with the booksof accounts.

d) In our opinion the aforesaid Ind AS Financial Statements comply with the Ind ASspecified under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 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'. Our report expresses an unmodified opinion on theadequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended: In our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of Section 197 of the Act.

h) 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company does not have any pending litigations.

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

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

For Khilnani & Associates
Chartered Accountants
Sd/-
Place: Jaipur K.K. Khilnani
Date: June 22 2021 Partner
M. No. : 072736
FRN.005776C
UDIN: 21072736AAAADD1919

Annexure 'A'

The Annexure referred to in Clause 1 of Our Report on "Other Legal and RegulatoryRequirements".

1. We report that:

a. The company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.

b. The Company has a program of verification to cover all the items of fixed assets ina phased manner which in our opinion is reasonable having regard to the size of theCompany and the nature of its assets. Pursuant to the program certain fixed assets werephysically verified by the management during the year. According to the information andexplanations given to us no material discrepancies were noticed on such verification.

c. The Company does not hold any immovable property (in the nature of 'property plantand equipment'). Accordingly the provisions of clause 3(i)(c) of the Order are notapplicable.

2. Company has inventory of shares in demat form accordingly the requirements underclause 3(ii) of the Order are not applicable to the Company and hence not commented upon.

3. The Company has granted loans to a party covered in the register maintained undersection 189 of the Act. In our opinion and according to the information and explanationsgiven to us the terms and conditions of the grant of such loans are not prejudicial tothe Company's interest.

4. In our opinion and according to information and explanation given to us the Companyhas not granted any loans or provided any guarantees or given any security or made anyinvestments to which the provision of Section 185 and 186 of the Companies Act 2013 areapplicable. Accordingly clause 3 (iv) of the order is not applicable.

5. In our opinion and according to the information and explanations given to us theCompany being a non banking financial company registered with the Reserve Bank of Indiathe provisions of sections 73 to 76 or any other relevant provisions of the Act and theCompanies (Acceptance of Deposits) Rules 2014 as amended with regard to the depositsaccepted are not applicable to the Company.

6. The Central Government of India has not prescribed the maintenance of cost recordsunder sub-section (1) of Section 148 of the Act for any of the activities of the Companyand accordingly clause 3 (vi) of the order is not applicable.

7. According to the records of the Company undisputed statutory dues includingProvident Fund Investor Education and Protection Fund Employees' State InsuranceSales-tax Service-Tax Custom Duty Excise Duty value added tax cess and any otherstatutory dues to the extent applicable have generally been regularly deposited with theappropriate authorities. According to the information and explanations given to us therewere no outstanding statutory dues as on 31st of March 2021 for a period of more than sixmonths from the date they became payable.

According to the information and explanations given to us there is no amount payablein respect of service tax sales tax customs duty excise duty value added tax and cesswhichever applicable which have not been deposited on account of any disputes.

8. In our opinion and according to the information and explanations given by themanagement we are of the opinion that the Company has not defaulted in repayment of duesto a financial institution bank Government or debenture holders as applicable to theCompany.

9. Company has not raised any money by way of initial public offer or further publicoffer (including debt instruments) during the year. Terms and conditions of term loansraised have been duly complied with.

10. According to the information and explanations given to us we report that no fraudby the company or any fraud on the Company by its officers or employees has been noticedor reported during the year.

11. According to the information and explanations given to us we report thatmanagerial remuneration has been paid in accordance with the requisite approvals mandatedby the provisions of Section 197 read with Schedule V to the Companies Act.

12. The company is not a Nidhi Company. Therefore clause (xii) of the order is notapplicable to the Company.

13. According to the information and explanations given to us all transactions withthe related parties are in compliance with Sections 177 and 188 of Companies Act 2013wherever applicable and the details have been disclosed in the Ind AS Financial Statementsetc. as required by the 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 explanations given to us and based on ourexamination of the records of the company the company has not entered into non-cashtransactions with directors or persons connected with them. Accordingly clause 3(xv) ofthe order is not applicable.

16. The Company is required to be registered under Section 45-IA of the Reserve Bank ofIndia Act 1934 and it has obtained the registration.

For Khilnani & Associates
Chartered Accountants
Sd/-
Place: Jaipur K.K. Khilnani
Date: June 22 2021 Partner
M. No. : 072736
FRN.005776C
UDIN: 21072736AAAADD1919

Annexure 'B'

Report on Internal Financial Controls over Financial Reporting

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 with respect to Ind AS financialstatements of Baid Leasing and Finance Co. Ltd.(the "Company") as of 31 March2021 in conjunction with our audit of the Ind AS financial statements of the Company forthe year ended on 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. 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 company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe 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 Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated 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 Ind AS 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 Ind AS 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 the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

2. Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of Ind AS Financial Statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorizations of management and directors of the company; and

3. Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the Ind AS 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 31 2021 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 Institute of CharteredAccountants of India.

For Khilnani & Associates
Chartered Accountants
Sd/-
Place: Jaipur K.K. Khilnani
Date: June 22 2021 Partner
M. No. : 072736
FRN.005776C
UDIN: 21072736AAAADD1919

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