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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
OPEN 4.34
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VOLUME 1
52-Week high 6.30
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P/E 13.56
Mkt Cap.(Rs cr) 3
Buy Price 0.00
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Sell Price 0.00
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OPEN 4.34
CLOSE 4.34
VOLUME 1
52-Week high 6.30
52-Week low 3.53
P/E 13.56
Mkt Cap.(Rs cr) 3
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

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 2020 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 the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at 31 March 2020 the loss and totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

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 opinion.

Key Audit Matters

Key audit matters ('KAM') are those matters that in our professional judgment were ofmost significance in our audit of the standalone financial statements of the currentperiod. 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 the matters described below to bethe key audit matters to be communicated in our report.

We have determined that there are no key audit matters 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.

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 regulation 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 2016 ("the Order")issued by the Central

Government of India in terms of Section 143(11) of the Act we give in the"Annexure A" a statement

on the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.

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

a. We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit;

b. In our opinion proper books of account as required by law have been kept by theCompany so far as 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. In our opinion the aforesaid standalone financial statements comply with the Ind ASspecified 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 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2020 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 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;

g. With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended according tothe information and explanation given to us the Company has not paid any managerialremuneration during the year;

h. 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 doesnot 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.

For Doogar & Associates
Chartered Accountants
Firm Registration No. 000561N
Vardhman Doogar
Partner
Membership No. 517347
UDIN: 20517347AAAAHO7345
Place:Gurugram
Date:June 29 2020

Annexure "A" to the Independent Auditor's Report

(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirement'ssection of our report to the members of Ekam Leasing and Finance Co. Limited of even date)

i. In respect of the Company's fixed assets: -

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

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

c. According to the information and explanations given to us we report that Companydoes not own any immovable property whether freehold or lease hold.

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

iii. According to the information and explanations given to us the Company has grantedunsecured loans to bodies corporate covered in the register maintained under Section 189of the Companies Act 2013 in respect of which:

a. The terms and conditions of the grant of such loan are in our opinion prima facienot prejudicial to the Company's interest.

b. The schedule of repayment of principal and payment of interest has been stipulatedand repayments or receipts of principal amounts and interest have been regular as perstipulations.

c. There is no overdue amount remaining outstanding as at the year-end.

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 not accepted any deposits within the meaning of Section 73 to 76 ofthe Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended). Accordinglythe provisions of clause 3(v) of the Order are 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.

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

a. The Company is regular in depositing with appropriate authorities undisputedstatutory dues including income-tax and other material statutory dues applicable to it.

b. There were no undisputed amounts payable in respect of Income-Tax other statutorydues outstanding at the year end for a period of more than six months from the date theybecome payable.

c. There is no dues in respect of Income Tax and other statutory dues that have notbeen deposited with the appropriate authorities on account of any dispute.

viii. In our opinion on the basis of audit procedures and according to the informationand explanation given to us the company has not defaulted in repayment of loans andborrowings to financial institutions and banks. The company has neither taken any loanfrom the government nor having any outstanding debentures during the year.

ix. According to the information and explanations given by the Management the Companyhas not raised any money by way of initial public offer or further public offer and termloans.

x. To the best of our knowledge and according to the information and explanations givento us we report that no fraud by the Company or no material fraud on the Company by theofficers and employees of the Company has been noticed or reported during the year.

xi. The company had not paid any managerial remuneration and hence reporting underparagraph 3(xi) of the order is not applicable.

xii. The Company is not a Nidhi Company and hence reporting under clause 3 (xii) of theCARO 2016 is not applicable to the Company.

xiii. According to the information and explanations given to by the managementtransactions with the related parties are in compliance with Sections 177 and 188 of theAct where applicable and details of such transactions have been disclosed in the notesto the standalone financial statements as required by the applicable accounting standards.

xiv. According to the information and explanations given to us the Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year. Accordingly paragraph 3(xiv) of the Order is notapplicable to the Company.

xv. According to the information and explanations given to us the Company has notentered into non-cash transactions with directors or persons connected with him.Accordingly paragraph 3(xv) of the Order is not applicable to the Company.

xvi. According to the information and explanations given to us we report that theCompany has registered as required under Section 45-IA of the Reserve Bank of India Act1934.

For Doogar & Associates

Chartered Accountants

Firm Registration No. 000561N

Vardhman Doogar

Partner

Membership No. 517347

UDIN: 20517347AAAAHO7345

Place: Gurugram Date:June 29 2020

Annexure "B" to the Independent Auditor's Report

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

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSubsection 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 2020 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 2020 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.

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 2020 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 unmodified report dated June 29 2020.

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's Report(Reserve Bank) Directions 2016' (the 'Directions') issued by the Reserve Bank of India(the 'RBI') it is our responsibility to examine the books and records of the Company andreport on the matters specified in Para 3 and 4 of the said Directions to the extentapplicable 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

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. Based on our examination of the books and records of the Company as produced for ourexamination and the information and explanations given to us we 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 Nonbanking financial institution without accepting public deposits as on March312020.

(iii) The Company has Net Owned Fund (NOF) of INR 285.64 Lakhs as on March 31 2020calculated 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 April012019.

(v) The Company has not accepted any public deposits during the year ended March312020.

(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: 20517347AAAAHO7345
Place: Gurugram
Date: June 29 2020

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