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Bhagyashree Leasing & Finance Ltd.

BSE: 511698 Sector: Financials
NSE: N.A. ISIN Code: INE655F01012
BSE 00:00 | 05 Nov Bhagyashree Leasing & Finance Ltd
NSE 05:30 | 01 Jan Bhagyashree Leasing & Finance Ltd
OPEN 29.65
PREVIOUS CLOSE 29.65
VOLUME 2
52-Week high 29.65
52-Week low 0.00
P/E 1482.50
Mkt Cap.(Rs cr) 10
Buy Price 0.00
Buy Qty 0.00
Sell Price 29.65
Sell Qty 1027.00
OPEN 29.65
CLOSE 29.65
VOLUME 2
52-Week high 29.65
52-Week low 0.00
P/E 1482.50
Mkt Cap.(Rs cr) 10
Buy Price 0.00
Buy Qty 0.00
Sell Price 29.65
Sell Qty 1027.00

Bhagyashree Leasing & Finance Ltd. (BHAGYASHREELEAS) - Auditors Report

Company auditors report

To the Members of

Bhagyashree Leasing & Finance Limited

Report on the Audit of the Standalone Financial Statements

We have audited the standalone financial statements of Bhagyashree Leasing &Finance Limited ("the Company") which comprise the balance sheet as at 31stMarch 2022 and the statement of Profit and Loss statement of changes in equity andstatement of cash flows for the year then ended and notes to the financial statementsincluding a summary of significant 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 financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2022 and profit/loss changes in equity and its cash flows for the yearended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

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 preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the 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 high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit.

We also:

• Identify and assess the risks of material misstatement of the 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 Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness of such 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 financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

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.

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 the paragraph3 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 theCompanyso 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 the written representations received from the directors as on 31March 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2022 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 pending litigations which will impact the financialposition in its financial statements.

(ii) The Company did not have any long term contracts including derivative contractsthat require provision under any law or accounting standards for which there were anymaterial foreseeable losses.

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

For SPAK & Co
F.R.NO.: 139877W

Chartered Accountants

Shivraj Patil

Partner

M. No.:138320

Place: Pune

Date: 26.05.2022

UDIN: 22138320AJQIOQ5778

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT COMPANIES (AUDITOR'S REPORT) ORDER 2020

(i) The Company does not hold fixed assets therefore clause (a)clause (b) clause(c)Clause(d) and Clause (e) hence reporting under this clause is not applicable.

(ii) (a) According to the information and explanations given by the management thecompany does not hold any inventory the reporting under this clause is not applicable.

(b) The company has not raised or sanctioned working capital limits in excess of fivecrore rupees in aggregate from banks or financial institutions on the basis of securityof current assets thus reporting under this clause is not applicable.

(iii) (a) According to the information and explanations given to us the Company hasnot granted any loans secured or unsecured to companies firms limited liabilitypartnership or other parties covered in the register maintained under Section 189 of theAct. Accordingly the provisions of clause 3(iii) (a) (b) and (c) of the Order are notapplicable to the Company and hence not commented upon.

(b) Company has not provided any guarantee and investment at the reporting period end.Reviewed the security deposit conditions and found no exception.

(c) Company has not provided any loans and advances in nature of loan hence reportingis not required for the clause.

(d) As per above clause 3(iii)('C) reporting is not required for the relevant clause.

(e) As per above clause 3(iii)('C) reporting is not required for the relevant clause.

(f) As per above clause 3(iii)('C) reporting is not required for the relevant clause

iv) According to the information and explanations given to us in respect of loansinvestments and guarantees provisions of Section 185 and 186 of the Companies Act 2013have been complied with.

v) According to the information and explanations given to us the Company has notaccepted any deposits from the public. Therefore the directives issued by the ReserveBank of India and the provision of section 73 to 76 or any other relevant provisions ofthe Companies Act 2013 and the rules framed there under Therefore the provisions ofClause (v) of paragraph 3 of the Order are not applicable to the Company

vi) To the best of our knowledge and as explained the Central Government has notprescribed the maintenance of cost records under sub section (1) of Section 148 of theAct.

vii)(a) The company is regular in depositing undisputed statutory dues includingprovident fund employees' state insurance income-tax sales-tax duty of customs dutyof excise value added tax and any other statutory dues with the appropriate authorities.According to the information and explanations given to us no undisputed amounts payablein respect of the aforesaid dues were outstanding as at 31st March 2022 for a period ofmore than six months from the date of becoming payable details of which are given below;

(b) According to the information and explanations given to us no undisputed amountspayable in respect of goods and service tax cess and other material statutory dues wereoutstanding as at 31st March 2022 for a period of more than six months from the date ofbecoming payable.

viii) As per information and explanation provided to us there were no transactionswhich were not recorded in the books of account have been surrendered or disclosed asincome during the year in the tax assessments under the Income Tax Act 1961 (43 of 1961.

ix)(a) According to the information and explanations given to us the Company has notdefaulted in repayment of loans or borrowings to banks or financial institution or dues todebenture holders. The Company did not have any outstanding loans or borrowings dues inrespect of government during the year.

(b) The company is not declared willful defaulter by any bank or financial institutionor other lender.

(c) The company has not applied for any loans during the financial year thus reportingunder this clause is not applicable.

(d) As reported in above clause the company has not procured any loans during thefinancial year thus reporting under this clause is not applicable.

(e) The company has not taken any funds from any entity or person on account of or tomeet the obligations of its subsidiaries associates or joint ventures thus reportingunder this clause is not applicable.

(f) As reported in above clause the company has not raised any loans during the year onthe pledge of securities held in its subsidiaries joint ventures or associate companiesthus reporting under this clause is not applicable.

x)(a) As reported the company has not raised moneys by way of initial public offer orfurther public offer (including debt instruments) during the year thus reporting underthis clause is not applicable.

(b) The company has not made any preferential allotment or private placement of sharesor convertible debentures (fully partially or optionally convertible) during the year andif so thus the requirements of section 42 and section 62 of the Companies Act 2013 arenot applicable.

(xi)(a) Based upon the audit procedures performed for the purpose of reporting the trueand fair view of the financial statements and according to the information andexplanations given by the management we report that no fraud by the Company or nomaterial fraud on the Company by the officers and employees of the Company has beennoticed or reported during the year.

(b) Auditor has not filed the ADT-4 during the year. Hence no disclosure is requiredfor the clause.

(c) Based upon the audit procedures performed we report that no whistle blowercomplaint has been registered by company during the year.

(xii) In our opinion the Company is not a Nidhi company. Therefore the provisions ofclause xii of the order are not applicable to the Company and hence not commented upon.

(xiii) According to the information and explanations given by the management and auditprocedures performed by us transactions with the related parties arein compliance withsection 177 and 188 of Companies Act 2013 where applicable and the details have beendisclosed in the notes to the Ind AS financial statements as required by the applicableaccounting standards.

(xiv) (a) Based on our examination the company has internal audit system which iscommensurate with the size and nature of its business.

(b) The reports of the Internal Auditors for the period under audit were considered bythe statutory auditor has not observed any material discrepancies affecting audit reportopinion.

(xv) According to the information and explanations given by the management the Companyhas not entered into any non-cash transactions with directors or persons connected withhim as referred to in Section 192 of the Act.

(xvi) According to the information and explanations given to us the provisions ofsection 45- IA of the Reserve Bank of India Act 1934 are applicable to the Company andcompany has also entered into NBFC or financial institution transaction during the year.

As per structure and transaction of the company it can be ascertained that the companyis not Core Investment Company (CIC) as per RBI Act thus reporting under clause xvi(a)(b)(c) & (d) is not applicable.

(xvii) As per the calculation suggested by guidance note on schedule III by ICAI wecan report that the company has not incurred the cash losses during the year.

(xviii) Company has appointed the new auditor for current year hence we can reportthat resignation has been provided by the statutory auditor.

(xix) No exceptions has been noted related to liquidity risk hence no reporting isrequired for the clause.

(xx) On the basis of procedures performed we report that the management has compliedwith the schedule VII and Section 135 of the Companies Act 2013.

(xxi) Company does not have any component. Accordingly the requirement to report onclause 3(xxi) of the Order is not applicable to the Company.

For SPAK & Co

F.R.NO.: 139877W

Chartered Accountants

Shivraj Patil

Partner

M. No.:138320

Place: Pune

Date: 26.05.2022

UDIN: 22138320AJQIOQ5778

Annexure - B to the 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 BhagyashreeLeasing and Finance Limited ("the Company") as of 31 March 2022 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'). 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 safeguarding ofits 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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness.

Our audit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting.

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 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 financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance 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 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 2022 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 SPAK & Co

F.R.NO.: 139877W

Chartered Accountants

Shivraj Patil

Partner

M. No.:138320

Place: Pune

Date: 26.05.2022

UDIN: 22138320AJQIOQ5778

NON-BANKING FINANCIAL COMPANIES AUDITORS' REPORT FOR THE YEAR ENDED 31ST MARCH 2022

TO THE BOARD OF DIRECTORS OF

Bhagyashree Leasing & Finance Limited

As required by the Non-Banking Financial Companies Auditors' Report (Reserve Bank)Directions 2016 issued by Reserve Bank of India (RBI) on the matters specified in Para 3and 4 of the said Directions to the extent applicable to Bhagyashree Leasing &Finance Limited (‘the Company") and according to the information andexplanations given to us for the purpose of audit we report that:

a. The Company had applied for registration as provided in Section 45-IA of the ReserveBank of India Act 1934 (2 of 1934) and has been granted certificate of registration dated26 May 1998 from the Reserve Bank of India as a Non-Banking Financial Company (NBFC).Further the company is entitled to continue to hold such Registration in terms of itsasset/income pattern as on 31st March 2022.

b. The company meets the required net owned fund requirements as laid down in MasterDirection - Non-Banking Financial Company-Non-Systemically Important Non Deposit takingCompany (Reserve Bank) Directions 2016.

c. The Board of Directors of the Company has passed a resolution for non-acceptance ofany public deposits;

d. The company has not accepted any public deposits during the year under reference;and

e. The company has complied with prudential norms relating to the income recognitionaccounting standards asset classification and provision of bad and doubtful debts asapplicable to it.

For SPAK & Co

F.R.NO.: 139877W

Chartered Accountants

Shivraj Patil

Partner

M. No.:138320

Place: Pune

Date: 26.05.2022

UDIN: 22138320AJQIOQ5778.

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