To the Members of DEVKI LEASING AND FINANCE LIMITED Report on the Audit of the IND ASFinancial Statements Opinion
We have audited the accompanying IND AS financial statements of DEVKI LEASING ANDFINANCE LIMITED ("the Company") which comprise the Balance Sheet as atMarch 31 2022 the Statement of Profit and Loss (including Other Comprehensive Income)the Statement of Changes in Equity the Cash Flow Statement for the year then ended andnotes to the IND AS financial statements including a summary of significant accountingpolicies and other explanatory information.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid IND AS financial statements give the information required bythe 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 the Companies (Indian Accounting Standards) Rules 2015 asamended and other accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2022 and loss and total comprehensive incomechanges in equity and its cash flows for the year ended 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 the INDAS Financial Statements section of our report. We are independent of the Company inaccordance with the Code of ethics issued by the Institute of Chartered accountantsof India together with the ethical requirements that are relevant to our audit of the INDAS financial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion on the IND AS financial statements.
Key Audit Matters
Key audit matters are those matters that in our professional judgement 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. There is no key audit matter to be communicated in our report.
Information Other than the Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report and BusinessResponsibility Report but does not include the financial statements and our auditor'sreport thereon.
Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.
In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse 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 is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparationand presentation of these IND AS financial statements that give a true and fair view ofthe financial position financial performance total comprehensive income changes inequity and cash flows of the Company in accordance with the Indian Accounting Standardsprescribed under Section 133 of the Act read with the Companies (Indian AccountingStandards) Rules2015 as amended and other accounting principles generally accepted inIndia. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe IND AS financial statements that give a true and fair view and are free from materialmisstatements whether due to fraud or error.
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 objectives are to obtain reasonable assurance about whether the IND AS financialstatements as a whole are free from material misstatements whether due to fraud orerror and to issue an auditor's report that includes our opinion. Reasonable assurance isa high level of assurance but it is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these IND AS financial statements.
As part of an audit in accordance with SAs we exercised 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 from fraud is higher thanfor one resulting from error as fraud may involve collusion forgery intentionalomissions misrepresentations or the override of internal control.
Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany 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.
Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.
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 financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen 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 2020 ("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 said Order to the extent as 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 including Other ComprehensiveIncome Statement of Changes in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the books of account;
d. In our opinion the aforesaid IND AS financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Indian Accounting Standards) Rules2015;
e. On the basis of the written representations received from the directors as at March31 2022 and taken on record by the Board of Directors none of the directors isdisqualified as at March 312022 from being appointed as director in terms section 164(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 has no pending litigations on its financial position in its Ind ASFinancial Statements;
ii. The Company did not have any long-term contracts including derivative contracts;
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
i. With respect to the matter to be included in the Auditors' Report under section197(16) of the Act as amended:
In our opinion and according to the information and explanations given to us theremuneration paid by the Company to its managing director during the year is in accordancewith the provisions of section 197 of the Act.
Unique Document Identification Number (UDIN) for this document is 22436593AJVUHB8409.
For: S P A R K & Associates Chartered Accountants LLP FRN: 005313 C/C400311
|Chandresh Singhvi |
|Membership No. 436593 |
|Place: Indore |
|Date: 30th May 2022 |
Annexure "A" to Independent Auditors' Report
(Referred to in our report of even date)
Report on the order issued under section 143(11) of companies Act 2013
I. (a) i. The said Company's Unit has generally maintained proper records showing fullparticulars including quantitative details and situation of Property Plant andEquipment.
ii. The company is maintaining proper records showing full particulars of intangibleassets.
(b) The Property Plant and Equipment referred to in Note no. 2 of financial statementshave been physically verified by the management at reasonable intervals (covering all theassets in a period of three years) which in our opinion is reasonable having regard tothe size of the said Company's Unit and nature of its assets. As informed to us nomaterial discrepancy was noticed on such physical verification.
(c) According to the information and explanation given to us and on the basis of ourexamination of the records of the corporation we found that company does not hold anyimmovable property hence reporting under this clause is not applicable to the company
(d) According to the information and explanations given to us the said company has notrevalued its Property Plant and Equipment (including Right of Use assets) or intangibleassets or both during the year.
(e) There are no proceedings initiated or pending against the company for holding anybenami property under the Benami Transactions (Prohibition) Act 1988 (45 of 1988) andrules made thereunder as details provided by management
II. (a) As explained to us and information provided to us company does not haveinventories hence this clause is not applicable
(b) As explained to us and information provided to us during any point of time of theyear company has not been sanctioned working capital limits in excess of 5 crore rupeesin aggregate from banks or financial institution on the basis of security of currentasset
III. According to the information and explanations given to us the company has notmade investment in provided any guarantee or security or granted any loan or advances inthe nature of loans secured or unsecured to companies firms Limited LiabilityPartnerships or any other parties accordingly this clause is not applicable to the saidCompany's Unit.
IV. In our opinion and according to the information and explanation given to us theCompany has complied with the provisions of section 185 & 186 of the Companies Act2013 with respect to the loans made.
V. The Company has not accepted any deposits 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.
VI. 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.
VII. (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted / accrued in the books ofaccount in respect of undisputed statutory dues including provident fund income-taxsales tax value added tax duty of customs goods and service tax cess and othermaterial statutory dues have been regularly deposited during the year by the Company withthe appropriate authorities.
(b) According to the information and explanations given to us there are no dues ofGST Provident fund Employees' State Insurance Income-tax Sales tax Service tax Dutyof Customs Value added tax Cess or other statutory dues which have not been deposited bythe Company on account of disputes.
VIII. According to the information and explanations given to us there are notransaction that are not recorded in books of accounts have been surrendered or disclosedas income during the year in the tax assessment under income tax act1961(43 of1961).Hence this clause is not applicable
IX. (a) According to the records of the Company examined by us and the information andexplanations given to us the Company has not defaulted in repayment of loans or borrowingto any lender.
(b) According to the information and explanations given to us Company is not declaredas wilful defaulter by bank or financial institution or other lender;
(c) According to the information and explanations given to us the company has notobtained any term loan. Hence this clause is not applicable
(d) According to the information and explanations given to us the fund raised on shortterm basis have not been utilized for the long term purpose.
(e) According to the information and explanations given to us the company does nothave subsidiary associates or joint ventures hence this clause not applicable
(f) According to the information and explanations given to us the company does nothave subsidiary associates or joint ventures hence this clause not applicable
X. (a) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyreporting requirement in paragraph (x) of the order is not applicable
(b) The company has made not made any preferential allotment or private placement ofshares or convertible debentures (fully partially or optionally convertible) during theyear
XI. (a)According to the information and explanations given to us no material fraud onor by the company by its officers or employees has been noticed or reported during thecourse of our audit.
(b) According to the information and explanations given to us no report undersubsection (12) of Section 143 of the Companies Act 2013 has been filed by the auditorsin Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules 2014with the Central Government.
(c) As represented to us by the management there are no whistle blower complaintsreceived by the Company during the year.
XII. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph (xii) of the order is notapplicable.
XIII. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.
XIV (a) In our opinion & based on our examination the company has an internal auditsystem commensurate with the size and nature of its business
(b) We have considered the internal audit reports of the Company issued till date forthe period under audit;
XV According to the information and explanations provided to us the Company has notentered into any non-cash transactions with directors or persons connected with him duringthe financial year.
XVI. (a) According to the information and explanations provided to us the provisionsof Section 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company
(b) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly clause 3(xvi)(b) of the Order is not applicable.
(c) The Company is not a Core Investment Company (CIC) as defined in the regulationsmade by the Reserve Bank of India. Accordingly clause 3(xvi)(c) of the Order is notapplicable.
(d) According to the information and explanations provided to us during the course ofaudit the Company does not have any CIC. Accordingly the requirements of clause3(xvi)(d) are not applicable.
XVII The Company has incurred cash losses in the financial year and in the immediatelypreceding
financial year cash losses for FY 21-22 is Rs. 31.84 Lakhs and For FY 20-21 is Rs.20.80 Lakhs
XVIII There is no resignation of the statutory auditors during the year. Hencereporting under this clause is not applicable.
XIX According to the information and explanations given to us and on the basis of thefinancial ratios ageing and expected dates of realization of financial assets and paymentof financial liabilities other information accompanying the financial statements ourknowledge of the Board of Directors and management plans and based on our examination ofthe evidence supporting the assumptions nothing has come to our attention which causesus to believe that any material uncertainty exists as on the date of the audit report thatthe Company is not capable of meeting its liabilities existing at the date of balancesheet as and when they fall due within a period of one year from the balance sheet date.We however state that this is not an assurance as to the future viability of theCompany. We further state that our reporting is based on the facts up to the date of theaudit report and we neither give any guarantee nor any assurance that all liabilitiesfalling due within a period of one year from the balance sheet date will get dischargedby the Company as and when they fall due.
XX. (a)According to the information and explanations given to us the matter in respectof other than ongoing projects and transferred unspent amount to a Fund specified inSchedule VII to the Companies Act within a period of six months of the expiry of thefinancial year in compliance with second proviso to sub-section (5) of section 135 of thesaid Act are not applicable to the company.
(b) In our opinion and according to the information and explanations given to us theCompany has not transferred the amount remaining unspent in respect of ongoing projectsto a Special Account till the date of our report. However the time period for suchtransfer i.e. thirty days from the end of the financial year as permitted under thesubsection (6) of section 135 of the Act has not elapsed till the date of our report.
XXI According to the information and explanations given to us the company does notmake any consolidation financial statement hence reporting under this clause is notapplicable.
Unique Document Identification Number (UDIN) for this document is. 22436593AJVUHB8409.
For: S P A R K & Associates Chartered Accountants LLP
|Chandresh Singhvi |
|Membership No. 436593 |
|Place: Indore |
|Date: 30th May 2022 |
Annexure - "B" to the Auditors' Report
(Refer to in our report of even date)
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 at March 31 2022 inconjunction with our audit of the IND AS financial statements of the Company for the yearended 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 ("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.
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 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 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 IND ASfinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorizations of Management and Directors of the Company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have a material effect on the IND ASfinancial 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 the Company has in all material respects an adequate internalfinancial control system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 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: S P A R K & Associates Chartered Accountants LLP |
|FRN:005313 C/C400311 |
|Chandresh Singhvi |
|Membership No. 436593 |
|Place: Indore |
|Date: 30th May 2022 |