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Ekam Leasing And Finance Co Ltd.

BSE: 530581 Sector: Financials
NSE: N.A. ISIN Code: INE906L01025
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NSE 05:30 | 01 Jan Ekam Leasing And Finance Co Ltd
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VOLUME 420
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P/E 29.71
Mkt Cap.(Rs cr) 4
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OPEN 6.24
CLOSE 6.56
VOLUME 420
52-Week high 10.73
52-Week low 3.76
P/E 29.71
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Ekam Leasing And Finance Co Ltd. (EKAMLEASING) - Auditors Report

Company auditors report

To the Members of

Ekam Leasing and Finance Co. Limited

Report on the Audit of the Standalone Financial Statements

Qualified Opinion

We have audited the standalone financial statements of Ekam Leasing and Finance Co.Limited ("the Company") which comprise the Standalone Balance Sheet as at 31March 2022 the Standalone Statement of Profit and Loss (including Other ComprehensiveIncome) the Standalone Statement of Changes in Equity and the Standalone Statement ofCash Flows for the year then ended and notes to the standalone financial statementsincluding a summary of the significant accounting policies and other explanatoryinformation (hereinafter referred to as "the standalone financial statements").

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects / possible effects of our observations stated in"Basis for Qualified Opinion" section below the aforesaid standalone financialstatements give the information required by the Companies Act 2013 ("the Act")in the manner so required and give a true and fair view in conformity with the IndianAccounting Standards prescribed under section 133 of the Act read with the Companies(Indian Accounting Standards) Rules 2015 as amended ("Ind AS") and otheraccounting principles generally accepted in India of the state of affairs of the Companyas at 31 March 2022 the profit and total comprehensive income changes in equity and itscash flows for the year ended on that date.

Basis for Qualified Opinion

Attention is drawn to:

a) Note No. 41 of the standalone financial statements the company has outstandingloans receivable amounting INR 526.79 lakhs which in our opinion has becomeNon-Performing Assets as the company is not able to recover the principal and itsinterest. The company has made the provision on the same considering the same as"Standards Asset" instead of substandard assets. As per prudential norms issuedby Reserve Bank of India the Company has not made the adequate provision considering thecorrect classifications of Non-performing assets amounting INR 52.68 lakhs. Accordinglyprofit is overstated by INR 52.68 lakhs and simultaneously provisions are understated byINR 52.68 lakhs.

b) Note No. 42 of the standalone financial statements the company has recognized thetotal interest income amounting INR 57.31 Lakhs out of which interest income amountingINR 54.33 Lakhs are related to accounts which are Non-performing Assets (as describe inNote (a) of Basis of Qualified Opinion above). As per Income recognition norms issued byReserve Bank of India the interest income is not allowed to recognize from Non-performingassets. Accordingly profit is overstated by INR 54.33 lakhs and simultaneously loans areoverstated by INR 54.33 lakhs.

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India (ICAI) togetherwith the ethical requirements that are relevant to our audit of the standalone financialstatements under the provisions of the Act and the rules made thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theICAI's Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit qualified opinion.

Emphasis of Matters:

We draw attention to the Note 43 of audited financial statements for accountingdeferred tax assets (net) on unabsorbed depreciation & business losses and of MATcredit entitlement as on 31st March 2022 of amounting INR 9.40 lakhs and INR 21.30 lakhsrespectively. On the basis of future prospects of the company Management is confidentthat the company will have sufficient profits against these unused tax credit and unusedlosses. Accordingly they are considered good by the management.

Our opinion is not modified in respect of above stated matters.

Key Audit Matters

Key audit matters (‘KAM') are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined that there are no key auditmatters to communicate in our report.

Information Other than the Standalone Financial Statements and Auditor's report thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Company's annual report but doesnot include the standalone financial statements and our auditors' report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated. If based on thework we have performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in thisregard.

Management's Responsibilities for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance (includingother comprehensive income) changes in equity and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting Standards (Ind AS) specified under Section 133 of the Act. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the standalone financial statements that give atrue and fair view and are free from material misstatement whether due to fraud or error.

In preparing the standalone financial statements the Company's management isresponsible for assessing the ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless the management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

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

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but 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 standalone 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 Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness 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 standalone 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 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 standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the standalone 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 standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditors' report unless law or regulat ion precludes public disclosure about thematter or 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 (Auditors' Report) Order 2020 ("the Order")issued by the Central Government of India in terms of Section 143(11) of the Act we givein the "Annexure A" a statement on the matters specified in paragraphs 3 and 4of the Order to the extent applicable.

2. As required by Section 143(3) of the Act we report that:

a. Except for the matter described in the Basis of Qualified Opinion given above wehave sought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit;

b. Except for the matter described in the Basis of Qualified Opinion given above inour opinion proper books of account as required by law have been kept by the Company sofar as it appears from our examination of those books;

c. The standalone Balance Sheet the standalone Statement of Profit and Loss (includingother comprehensive income) the Statement of Changes in Equity and the Statement of CashFlows dealt with by this Report are in agreement with the books of account;

d. Except for the matter described in the Basis of Qualified Opinion given above inour opinion the aforesaid Standalone financial statements comply with the AccountingStandards specified under Section 133 of the Act;

e. The matters described in "Basis of Qualified Opinion" paragraph above inour opinion may have an adverse effect on the functioning of the company.

f. 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;

g. With respect to the adequacy of the internal financial controls over financialreporting of the Company with reference to standalone financial statements and theoperating effectiveness of such controls refer to our separate Report in "AnnexureB". Our report expresses an unmodified opinion on the adequacy and operatingeffectiveness of the Company's internal financial controls over financial reporting;

h. 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 according tothe information and explanation given to us the Company has not paid any managerialremuneration during the year;

i. With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company does not have any pending litigations on its financial position in itsstandalone financial statements.

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

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

iv. (a) The Management has represented that to the best of its knowledge and beliefno funds (which are material either individually or in the aggregate) have been advancedor loaned or invested (either from borrowed funds or share premium or any other sources orkind of funds) by the Company to or in any other person or entity including foreignentity

("Intermediaries") with the understanding whether recorded in wr iting orotherwise that the Intermediary shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theCompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries;

(b) The Management has represented that to the best of its knowledge and belief nofunds (which are material either individually or in the aggregate) have been received bythe Company from any person or entity including foreign entity ("FundingParties") with the understanding whether recorded in writing or otherwise that theCompany shall whether directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries;

(c) Based on the audit procedures that have been considered reasonable and appropriatein the circumstances nothing has come to our notice that has caused us to believe thatthe representations under sub-clause (i) and (ii) of Rule 11(e) as provided under (a) and(b) above contain any material misstatement.

v. The Company has neither declared nor paid any dividend during the year.

For Doogar & Associates

Chartered Accountants

Firm Registration No. 000561N

Vardhman Doogar

Partner

Membership No. 517347

UDIN: 22517347AKTDXU9276

Place: New Delhi

Date: 30/05/2022

Annexure "A" to the Independent Auditor's Report

(Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the members of Ekam Leasing and Finance Co. Limitedof even date)

Report on the matters specified in paragraph 3 of the Companies (Auditor's Report)Order 2020 ("the Order") issued by the Central Government of India in terms ofsection 143(11) of the Companies Act 2013 ("the Act")

i. In respect of the Company's property plant and equipment and intangible assets: -

(a) (A) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment.

(B) According to the information and explanations given to us we report that theCompany does not own any intangible assets therefore Para 3(i)(a)(B) of the Order is notapplicable to the Company.

(b) The Company has a program of physical verification of property plant and equipmentto cover all the assets in a phased manner which in our opinion is reasonable havingregard to the size of the Company and nature of its assets. Pursuant to the programcertain Property Plant and Equipment were physically verified by the management duringthe year. According to the information and explanations given to us no materialdiscrepancies were noticed on such verification.

(c) There is no immovable property held by the Company and accordingly the requirementto report on clause 3(i)(c) of the Order is not applicable to the Company.

(d) The Company has not revalued any of its Property Plant and Equipment and does notown any intangible assets.

(e) No proceedings have been initiated during the year or are pending against theCompany as at March 31 2022 for holding any benami property under the Benami Transactions(Prohibition) Act 1988 (as amended in 2016) and rules made thereunder.

ii. (a) The Company's business does not involve inventories and accordingly therequirements under paragraph 3(ii)(a) of the Order are not applicable to the Company.

(b) According to the information and explanations given to us we report that theCompany has not been sanctioned working capital limits. Hence Para 3(ii)(b) of the Orderis not applicable to the Company.

iii. (a) Since the company's principal business is to give loans. Accordingly theprovision of clause 3(iii)(a) of the order is not applicable to it.

(b) In our opinion the terms and conditions of loans during the year are primafacie not prejudicial to the Company's interest.

(c) The Company has granted loans that are re-payable on demand. For loans outstandingat the year end we are informed that the company has not able to recover the interestand thus there has been default on the part of the parties to whom the money has beenlent.

(d) The following amounts are overdue for more than ninety days from companies to whomloan has been granted and reasonable steps have not been taken by the Company forrecovery of the overdue amount of principal and interest.

Particulars Loans (Rs in Lakhs)
Balance outstanding as at balance sheet date in respect of above cases
- Subsidiaries Nil
- Others (including interest accrued on loan) 526.79

(e) As the principal business of company is to give loans para 3(iii)(e) is notapplicable to the company.

(f) As disclosed in the financial statements the Company has granted loans repayableon demand to companies. Of these following are the details of the aggregate amount ofloans granted to related parties as defined in clause (76) of section 2 of the CompaniesAct 2013:

Particulars Loans (Rs in Lakhs)
Aggregate amount of loans (including interest accrued on loan) 526.79
- Promoter & Promoter Group Nil (0%)
- Other Companies 526.79 (100%)

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made.

v. The Company has neither accepted any deposits from the public nor accepted anyamounts which are deemed to be deposits within the meaning of sections 73 to 76 of theCompanies Act and the rules made thereunder to the extent applicable. Accordingly therequirement to report on clause 3(v) of the Order is not applicable to the Company.

vi. The Central Government has not prescribed the maintenance of cost records underSection 148 of the Act for any of the services rendered by the Company. Accordingly therequirement to report on clause 3(vi) of the Order is not applicable to the Company.

vii. According to the information and explanations given to us in respect of statutorydues:

a. In our opinion the Company has generally been regular in depositing undisputedstatutory dues including provident fund employees' state insurance income-tax salestax service tax customs duty excise duty value added tax goods and service tax cessand other material statutory dues applicable to it with the appropriate authorities.

There are no undisputed amounts payable in respect of provident fund employees' stateinsurance income-tax sales tax service tax customs duty excise duty value added taxgoods and service tax cess and other material statutory dues in arrears as at March 312022 for a period of more than six months from the date they became payable.

b. According to the records of the Company there are no dues of goods and servicestax provident fund employees' state insurance income tax sales-tax service taxcustoms duty excise duty value added tax cess goods and service tax and otherstatutory dues which have not been deposited on account of any dispute.

viii. According to the information and explanation given to us and the records of theCompany examined b y us there is no income surrendered or disclosed as income during theyear in the tax assessments under the Income Tax Act 1961 that has not been recorded inthe books of account.

ix.(a) According to the records of the Company examined by us and the information andexplanation given to us the Company has not defaulted in repayment of loans or otherborrowings or in the payment of interest to any lender as at the balance sheet date.

(b) According to the information and explanation given to us and on the basis of ouraudit procedures we report that the Company has not been declared wilful defaulter by anybank or financial institution or government or any government authority.

(c) In our opinion and according to the information and explanation given to us thecompany has not obtained any term loans. Accordingly the reporting under Clause 3(ix)(c)of the Order is not applicable to the Company.

(d) According to the information and explanation given to us and the proceduresperformed by us and on the overall examination of the financial statements of theCompany we report that no funds raised on the short term basis have been used forlong-term purposes by the Company.

(e) According to the information and explanation given to us and on an overallexamination of the financial statements of the Company we report that the Company has nottaken any funds from any entity or person on account of or to meet the obligations of itssubsidiaries associates or joint ventures.

(f) According to the information and explanation given to us and on an overallexamination of the financial statements of the Company we report that the Company has notraised loans during the year on the pledge of securities held in its subsidiaries jointventures or associate companies. Hence the requirement to report on clause (ix)(f) of theOrder is not applicable to the Company.

x. (a) The Company has not raised moneys by way of initial public offer or furtherpublic offer (including debt instruments) during the year. Accordingly the reportingunder Clause 3(x)(a) of the Order are not applicable to the Company.

(b) According to the information and explanation give to us company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures. Accordingly reporting under Clause 3(x)(b) of the Order are not applicable tothe Company.

xi. (a) During the course of the examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company noticed or reported during theyear nor have been informed of any such case by the Management.

(b) During the course of the examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us report under section 143(12) ofthe Act in Form ADT-4 was not required to be filed. Accordingly the reporting underClause 3(xi)(b) of the Order are not applicable to the Company.

(c) During the course of the examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us and as represented to us by themanagement no whistle blower complaints have been received during the year by theCompany. Accordingly the reporting under Clause 3(xi)(c) of the Order are not applicableto the Company.

xii. The Company is not a Nidhi Company and hence reporting under clause 3 (xii) of theOrder is not applicable to the Company.

xiii. According to the information and explanation and records made available by thecompany the Company has complied with the provision of Section 177 and 188 of theCompanies Act 2013 where applicable for all transactions with the related parties andthe details of related party transactions have been disclosed in the financial statementsas required by the applicable accounting standards.

xiv. (a) The Company has an internal audit system commensurate with the size and natureof its business.

(b) We were unable to obtain any of the internal audit reports of the Company hencethe internal audit reports have not been considered by us.

xv. In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsdirectors or persons connected with him. Accordingly reporting under Clause 3(xv) of theOrder are not applicable.

xvi. (a) The Company is required to and has been registered under Section 45-IA of theReserve Bank of India Act 1934 as an Non Deposit Taking Systemically Important Investmentand Credit Company

(b) The Company has conducted non-banking financial activities during the year and theCompany holds a valid Certificate of Registration from the Reserve Bank of India as perthe Reserve Bank of India Act 1934.

(c) The Company is not a Core Investment Company (CIC) as defined in the regulationsmade by the Reserve Bank of India. Accordingly the reporting under clause 3(xvi)(c) ofthe Order is not applicable to the Company.

(d) Based on the information and explanations provided by the management of theCompany the Group has not any CIC of the Group. We have not however separatelyevaluated whether the information provided by the management is accurate and complete.

xvii. The Company has not incurred cash losses during the financial year covered by ouraudit and the immediately preceding financial year.

xviii. There has been no resignation of the statutory auditors of the Company duringthe year.

xix. According to the information and explanations given to us and on the basis of thefinancial ratios ageing and expected dates of realisation of financial assets and paymentof financial liabilities other information accompanying the financial statements and ourknowledge of the Board of Directors and Management plans nothing has come to ourattention which causes us to believe that any material uncertainty exists as on the dateof the audit report indicating that Company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tothe future viability of the Company. We further state that our reporting is based on thefacts up to the date of the audit report and we neither give any guarantee nor anyassurance that all liabilities falling due within a period of one year from the balancesheet date will get discharged by the Company as and when they fall due.

xx. According to the information and explanations given to us the provisions ofsection 135 of the Act are not applicable to the Company. Hence the reporting underparagraph (xx)(a) to (b) of the Order are not applicable to the Company.

For Doogar & Associates

Chartered Accountants

Firm Registration No. 000561N

Vardhman Doogar

Partner

Membership No. 517347

UDIN: 22517347AKTDXU9276

Place: New Delhi

Date: 30/05/2022

Annexure B to the Independent Auditors' Report

(Referred to in paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the members of Ekam Leasing and Finance Co. Limitedof even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of EkamLeasing and Finance Co. Limited as of 31 March 2022 in conjunction with our audit of thestandalone financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors are responsible for establishing and maintaining internalfinancial controls based on the internal financial controls over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India ("the GuidanceNote"). These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to the Company'spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013(hereinafter referred to as "the Act").

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to the standalone financial statements based on our audit. Weconducted our audit in accordance with the Guidance Note and the Standards on Auditingprescribed under Section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting with referenceto standalone financial statements 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 over financial reporting with reference to standalonefinancial statements and their operating effectiveness. Our audit of internal financialcontrols over financial reporting included obtaining an understanding of such internalfinancial controls over financial reporting assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the standalonefinancial 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 withreference to standalone financial statements.

Meaning of Internal Financial Controls over Financial Reporting with Reference toStandalone Financial Statements

A company's internal financial controls over financial reporting with reference tostandalone financial statements are a process designed to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of standalonefinancial statements for external purposes in accordance with generally acceptedaccounting principles. A company's internal financial controls over financial reportingwith reference to standalone financial statements include those policies and proceduresthat (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) providereasonable assurance that transactions are recorded as necessary to permit preparation ofstandalone financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and (3) providereasonable assurance regarding prevention or timely detection of unauthorized acquisitionuse or disposition of the company's assets that could have a material effect on thestandalone financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting withReference to standalone Financial Statements

Because of the inherent limitations of internal financial controls over financialreporting with reference to standalone financial statements including the possibility ofcollusion or improper management override of controls material misstatements due to erroror fraud may occur and not be detected. Also projections of any evaluation of theinternal financial controls over financial reporting with reference to standalonefinancial statements to future periods are subject to the risk that the internal financialcontrols may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

Opinion

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 2022 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 Doogar & Associates

Chartered Accountants Firm Registration No. 000561N

Vardhman Doogar

Partner

Membership No. 517347

UDIN: 22517347AKTDXU9276

Place: New Delhi

Date: 30/05/2022.

Auditor's Report in accordance with the requirements of Master Direction - Non-BankingFinancial Companies Auditor's Report (Reserve Bank) Directions 2016

To

The Board of Directors

Ekam Leasing and Finance Company Limited

Dear Sirs

1. We have audited the Standalone Financial Statements of Ekam Leasing and Finance Co.Limited ("the Company") which comprises of Standalone Balance Sheet as at March31 2022 Standalone Statement of Profit and Loss (including Other Comprehensive Income)the Standalone Statement of Changes in Equity and the Standalone Statement of Cash Flowsfor the year ended then ended and notes to the standalone financial statements includinga summary of the significant accounting policies and other explanatory information onwhich we have issued our qualified report dated May 30 2022.

Management's Responsibility

2. The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthe Standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standardsspecified under Section 133 of the Act read with relevant rules issued thereunder. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

3. The Management is also responsible for compliance with the provisions of ReserveBank of India Act 1934 and other relevant directions circulars notifications asamended issued by the Reserve Bank of India (‘RBI') and for providing all requiredinformation to RBI.

Auditor's Responsibility

4. Pursuant to the requirements of ‘Non-Banking Financial Companies Auditor'sReport (Reserve Bank) Directions 2016 (the ‘Directions') issued by the Reserve Bankof India (the ‘RBI') it is our responsibility to examine the books and records ofthe Company and report on the matters specified in Para 3 and 4 of the said Directions tothe extent applicable to the Company.

5. We conducted our examination in accordance with the Guidance Note on Audit Reportsand Certificates for Special Purposes issued by the Institute of Chartered Accountants ofIndia.

6. The Guidance Note requires that we comply with the ethical requirements of the Codeof Ethics issued by the Institute of Chartered Accountants of India.

7. We have complied with the relevant applicable requirements of the Standard onQuality Control (SQC) 1 Quality Control for Firms that Perform Audits and Reviews ofHistorical Financial Information and Other Assurance and Related Services Engagements.

Conclusion

8. Except for the matter described in the Basis of Qualified Opinion given in ourIndependent Auditors' Report and based on our examination of the books and records of theCompany as produced for our examination and the information and explanations given to uswe report that: -

(i) The Company had applied for registration as provided in section 45-IA of theReserve Bank of India Act 1934 and has been granted certificate of registration byReserve Bank of India on March 07 1998 vide Registration No. 14.00332.

(ii) The Company is entitled to hold the certificate of registration to carry on thebusiness of Non-banking financial institution without accepting public deposits as onMarch 31 2022.

(iii) The Company has Net Owned Fund (NOF) of INR 308.03 Lakhs as on March 31 2022calculated in accordance with the "Master Direction - Non-Banking Financial Company-Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions2016" and therefore meets the criteria of required Net Owned Fund.

(iv) The Board of Directors has passed the resolution for non-acceptance of any publicdeposits in its meeting held April 20 2021.

(v) The Company has not accepted any public deposits during the year ended March 312022.

(vi) The Company has complied with the prudential norms relating to income recognitionaccounting standards asset classification and provisioning for bad and doubtful debts asapplicable to it in terms of Non-Banking Financial Company - Non-Systemically ImportantNon-Deposit taking Company (Reserve Bank) Directions 2016 in so far as the same areapplicable to the Company.

(vii) The Company is a Non-Systemically Important Non-deposit taking Non-BankingFinancial Company and therefore the reporting under Paragraph 3(C)(iv) is not applicableto the Company.

(viii) The Company is not Micro Finance Institutions (MFI) as defined in theNon-Banking Financial Company - Non-Systemically Important Non-Deposit taking Company(Reserve Bank) Directions 2016 and Non-Banking Financial Company - Systemically ImportantNon-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions 2016.

Restriction on Use

Our report has been issued solely for meeting our responsibilities in relation to thecompliance with the Directions. Our report should not to be used for any other purpose orby any person other than the addressees of this report. Accordingly we do not accept orassume any liability or duty of care for any other purpose or to any other person to whomthis report is shown or into whose hands it may come save where expressly agreed by ourprior consent in writing.

For Doogar & Associates

Chartered Accountants

Firm Registration No. 000561N

Vardhman Doogar

Partner

Membership No. 517347

UDIN: 22517347AKTDXU9276

Place: New Delhi

Date: 30/05/2022.

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