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Emerald Leasing Finance And Investment Co Ltd.

BSE: 538882 Sector: Financials
NSE: N.A. ISIN Code: INE030Q01015
BSE 00:00 | 12 Aug 19.25 -0.20
(-1.03%)
OPEN

20.80

HIGH

20.80

LOW

18.90

NSE 05:30 | 01 Jan Emerald Leasing Finance And Investment Co Ltd
OPEN 20.80
PREVIOUS CLOSE 19.45
VOLUME 3026
52-Week high 37.60
52-Week low 12.20
P/E 33.77
Mkt Cap.(Rs cr) 56
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 20.80
CLOSE 19.45
VOLUME 3026
52-Week high 37.60
52-Week low 12.20
P/E 33.77
Mkt Cap.(Rs cr) 56
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Emerald Leasing Finance And Investment Co Ltd. (EMERALDLEASING) - Auditors Report

Company auditors report

To the Members of

Emerald Leasing Finance and Investment Co. Limited.

Report on the Standalone Financial Statements as per Ind AS

 

Opinion

We have audited the accompanying standalone financial statements ofEmerald Leasing Finance and Investment Co. Limited ("the Company") whichcomprise the Balance Sheet as at March 31 2021 and the Statement of Profit and LossStatement of change in Equity and Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2021 and its Profit and its Cash Flow for the yearended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Companies Act 2013. Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities forthe Audit of the Financial Statements section of our report. We are independent of theCompany in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India together with the ethical requirements that are relevant to our auditof the financial statements under the provisions of the Companies Act 2013 and the Rulesthere under and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies act 2013 ("the Act") with respect tothe preparation of these standalone financial statements that give a true and fair view ofthe financial position financial performance including other comprehensive income cashflows and change in equity of the Company in accordance with the Accounting principlesgenerally accepted in India including the Indian Accounting Standard Ind AS specifiedunder Section 133 of the Act read with the provision of the Companies ( Indian accountingStandards) Rules 2015 as amended . This responsibility includes the maintenance ofadequate accounting records in accordance with the provision of the Act for safeguardingof the assets of the Company and for preventing and detecting the frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial control that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentations of the financial statements that give a true and fair viewand free from material misstatement whether due to fraud or error.

In preparing the standalone financial statements management isresponsible for assessing the company ability to continue as a going concern disclosing asapplicable matter relating to going concern and using the going concern basis ofaccounting unless management either intents to liquidate the company or to ceaseoperation or has no realistic alternative but to do so.

Those board of directors are responsible for overseeing thecompany's financial reporting process.

Auditor's Responsibility

Our objectives are to obtain reasonable assurance about whether thefinancial 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. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements.

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

• Identify and assess the risks of material misstatement of thefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Companies Act 2013 we are also responsible for expressing ouropinion on whether the company has adequate internal financial controls system in placeand the operating effectiveness of such controls.

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

• Conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirement's

1. As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government of India in terms of sub-section(11) of section 143 of the Act we give in the Annexure A a statement on the mattersspecified in the paragraph 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 explanationswhich to the best of our knowledge and belief were necessary for the purpose of our audit;

b) In our opinion proper books of account as required by law have beenkept by the Company so far as appears from our examination of those books.

c) The Balance Sheet Statement of Profit and Loss and Cash FlowStatement dealt with by this Report are in agreement with the books of account.

d) in our opinion the financial statements comply with the IndianAccounting Standards specified under Section 133 of the Companies Act 2013 read withRule 7 of the Companies(Accounts) Rules 2014;

e) On the basis of written representations received from the directorsas on March 31 2021 and taken on record by the Board of Directors none of the directorsis disqualified as on March 31 2021 from being appointed as a director in terms ofsection 164(2) of the Companies Act 2013.

f) with respect to the adequacy of the internal financial controls overfinancial reporting of the company and the operating effectiveness of such control referto our separate report in Annexure "B and

g) With respect to the other matters included in the Auditor'sReport in accordance with Rule 11 of Companies (Audit and Auditors)Rules 2014 in ouropinion and to the best of our information and according to explanations given to us:

i. There is no pending litigations against /for the Company. ii. Thereis no long term contracts including derivative contracts and iii There is no Pending duesto Investor Education and Protection Fund.

Annexure A to the Independent Auditors' Report

Referred to in paragraph 1 under ‘Report on other Legal andRegulatory Requirements' section of our report of even date. We report that:

1.(a) The company has maintained proper records showing fullparticulars including quantitative details and situation of its fixed assets.

(b) As explained to us fixed assets have been physically verified bythe management at reasonable intervals; no material discrepancies were noticed on suchverification.

(c) In our opinion and according to the information and explanationsgiven to us the company does not have any immovable properties in its name. Thereforepara 3 (1) ( c) are not applicable

2. The company is a service company primarily engaged in financialactivities according there are no inventories with the company therefore clause (ii) isnot applicable

3. According to information and explanations given to us the companyhas not granted unsecured loan to companies firms. Limited Liability Partnerships orother parties covered under section 189 of the companies Act. 2013 accordingly theprovisions of clause 3(iii) (a) to (c) of the order is not applicable to the company andhence cannot be commented upon.

4. The company has not given any loans to directors or to any otherpersons in which the director is interested or given any guarantee or provided anysecurity in connection with any loan taken by him or such person as covered under section185 and 186 of the Companies act 2013

5 The Company has not accepted deposits. Hence the provisions ofSection 73 to 76 or any other relevant provisions of the Act and the rules framed thereunder are not applicable to the Company.

6. The Company is not required to maintain cost records as specified bythe Central Government under sub section (1) of section 148 of the Act. Therefore theprovisions of para 3(vi) of the Order is not applicable to the Company.

7.(a) Based on our audit procedures and on the information andexplanations given by the management we report that there were no undisputed statutorydues including Provident Fund Employees' State Insurance Income-tax Goods andService Tax Cess and any other statutory dues required to be deposited.

(b) Based on our audit procedures and on the information andexplanations given by the management there are no dues outstanding in respect of IncomeTax Goods and Service Tax Cess or any other Statutory dues to be deposited on accountof any dispute.

8.The Company has obtained loans during from financial institution andbank however there was no default in repayment of dues. The company has not taken anyloan from Government or debenture holders during the year.

9. The Company did not raise any money by way of initial public offeror further public offer (including debt instruments) and term loans during the yeartherefore the provisions of para 3(ix) of the Order is not applicable to the Company.

10. According to the information and explanations given to us no fraudby the Company or on the Company by its officers or employees has been noticed or reportedduring the year.

11. The Company has paid managerial remuneration during the financialyear ending 31st March 2021 hence the necessary approval and mandated as perthe provisions of section 197 read with schedule V of the Companies Act 2013 has beenobtained.

12. In our opinion and according to the information and explanationsgiven to us the Company is not a Nidhi company therefore the provisions of para 3(xii)of the Order is not applicable to the Company.

13. According to the information and explanations given to us and basedon our examination of the records of the Company there are no transactions with therelated parties which requires compliance of sections 177 and 188 of the Act.

14. According to the information and explanations given to us and basedon our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year.

15. According to the information and explanations given to us and basedon our examination of the records of the Company the Company has not entered intonon-cash transactions with directors or persons connected with him therefore theprovisions of para 3(xv) of the Order is not applicable to the Company.

16.The Company is NBFC and registered under section 45-IA of theReserve Bank of India Act 1934. [i] (a) The Company has been granted certificate ofregistration from Reserve Bank of India under Section 45IA of the Reserve Bank of IndiaAct 1934.

(b) The company is entitled to continue and hold the certificate ofregistration in terms of asset/income pattern as at 31st March 2021.

(c) Considering the asset/income pattern of the company we are of theopinion that the company is not an Asset Finance Company.

[ii] As per information and explanation given to us the Board ofDirectors have passed a resolution for the non-acceptance of any deposits from public.

[iii] As it appears from our examination of the books of account thecompany has not accepted any deposits from public during the year under review.

[iv} The Company has given Loans & Advances and has complied withthe Prudential Norms relating to income recognition accounting standards assetclassification and provisioning for bad and doubtful debts as applicable as on 31-03-2021.

Annexure - B to the Auditors' Report

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

We have audited the internal financial controls over financialreporting of Emerald Leasing Finance and Investment Company Limited ("theCompany") as of 31st March 2021 in conjunction with our audit of thefinancial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India(‘ICAI'). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects. Our auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;

(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorizations of management and directors of thecompany; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assets thatcould have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31st March2021 based on the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls over Financial Reporting issued by the ICAI.

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