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Franklin Leasing & Finance Ltd.

BSE: 539839 Sector: Financials
NSE: N.A. ISIN Code: INE399S01010
BSE 00:00 | 19 Mar 19.65 0
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NSE 05:30 | 01 Jan Franklin Leasing & Finance Ltd
OPEN 19.65
PREVIOUS CLOSE 19.65
VOLUME 8000
52-Week high 33.95
52-Week low 18.20
P/E 163.75
Mkt Cap.(Rs cr) 31
Buy Price 18.50
Buy Qty 4000.00
Sell Price 19.70
Sell Qty 8000.00
OPEN 19.65
CLOSE 19.65
VOLUME 8000
52-Week high 33.95
52-Week low 18.20
P/E 163.75
Mkt Cap.(Rs cr) 31
Buy Price 18.50
Buy Qty 4000.00
Sell Price 19.70
Sell Qty 8000.00

Franklin Leasing & Finance Ltd. (FRANKLINLEASING) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

FRANKLIN LEASING AND FINANCE LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of FRANKLIN LEASING ANDFINANCE LIMITED which comprise the Balance Sheet as at 31st March 2017the Statement of Profit and Loss the Cash Flow Statement and a summary of thesignificant accounting policies and other explanatory information for the year then ended.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 with respect to the preparation of these financialstatements that give a true and fair view of the financial position financial performanceand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the Accounting Standards specified under Section 133 of theAct' read with Rule 7 of the Companies (Accounts) Rules 2014 This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities; selection and application of appropriate accounting policies;making judgments and estimates that are reasonable and prudent; and design implementationand maintenance of adequate internal financial controls' that were operating effectivelyfor ensuring the accuracy and completeness o e accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditor's' Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risk of material misstatement of thefinancial statements whether due whether due to fraud or error.

In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the financial statements that give a true andfair view in order to design audit procedures that are appropriate in the circumstances.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates accounting estimates made by the Company'sDirector's as well as evaluating the overall presentation the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the stand alone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2017 its Profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1) As required by the Companies (Auditor's Report) order 2016 (" theOrder") as amended issued by the Central Government of India in terms of subsection (11) of section 143 of the Act we give in the Annexure ‘A' astatement on the matters specified in paragraph 3 and 4 of the said order.

2) The Company is a Non- Banking Financial Company not accepting public deposit and theCertificate of Registration No. B-14-02383 dated 22nd May 2001 from Reserve Bank of Indiahas been issued to the Company: -

a) The Board of Directors of the company has passed a resolution for the non-acceptanceof any public deposits.

b) The company has not accepted any public deposits during the relevant year.

c) The company has complied with the prudential norms relating to income recognitionaccounting standards assets classification and provisioning for bad and doubtful debts asapplicable to it.

3) 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. The Balance Sheet theStatement of Profit and Loss and the Cash Flow Statement dealt with by this report are inagreement with the books of account.

c. In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

d. On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors aredisqualified as on 31st March 2017 from being appointed as director in termsof Sectionl64 (2)of the Act.

e. The observation of financial transactions does not reveal any matter which hasany adverse effect on the functioning of the Company.

f. Report on the Internal Financial Control under Clause (i) of Sub-section 3 ofSection 143 of the Companies Act 2013 is enclosed as Annexure B to this report.

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

i. The Company does not have any pending litigations on its financial position in itsFinancial Statements.

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses. However company does not enter into anylongterm contracts including derivative contracts during the specified period.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

iv. On the basis of information and explanations given to us the Company hasmaintained proper records in respect of holding and /or dealings in Specified Bank Notes(SBN) during the period from November 8th 2016 to December 30th 2016and has made adequate disclosures in these financial statements.

FOR Anil Hariram Gupta 6 Co.

Chartered Accountants

Firm Regn. No. 327781E

Sd/-

Anil Gupta

Partner

Membership No. 066306

Place : New Delhi

Date : 30th May 2017

ANNEXURE A TO THE AUDITORS* REPORT

(Referred to in Paragraph 1 under the heading of "Report on other Legal andRegulatory Requirements" of our report of even date)

1. The Company has maintained proper records to show full particulars includingquantitative details and situation of Fixed Assets.

2. As per information and explanation given to us physical verification of inventoryhas been conducted once in a year by the management and no material discrepancies werenoticed during the course of verification.

3. According to information and explanations given to us the Company has not grantedunsecured loans to parties covered in register maintained under section 189 of theCompanies Act 2013 and hence provisions of this sub-clause are not applicable;

4. According to information and explanations given to us the Company has complied withthe provisions of Section 185 and 186 of the Companies Act 2013 in respect of loansinvestments guarantees and securities.

5. According to information and explanations given to us the Company has not acceptedpublic deposits and the provision of section 73 to 76 or other relevant provisions of theCompanies Act 2013 and rules framed thereunder are not applicable to the Company;

6. According to information and explanations given to us the Company is not liable tomaintain cost records as prescribed under section 148 (1) of the Companies Act 2013;

7. (a) According to information and explanations given to us the company is regular indepositing undisputed statutory dues including income tax and any other statutory duesapplicable to it with the appropriate authorities during the year. There were noundisputed amounts payable on account of the above dues in arrear as at March 31 2017 fora period of more than six month from the date they become payable.

(b) According to information and explanations given to us there are no outstandingstatutory dues on the part of Company which is not deposited on account of dispute.

8. According to information and explanations given to us the company has not obtainedany loans and borrowings from any financial institution bank government or dues todebenture holders and hence question of default of repayment does not arise;

9. According to information and explanations given to us the Company has not raisedmoney by way of initial public offer or further public offer. The Company has not takenany term loans from any bank or financial institution;

10. According to information and explanations given to us there is no noticed orunreported fraud on or by the Company during the year under audit;

11. According to information and explanations given to us the Company has paidmanagerial remuneration in accordance with applicable provisions of the Companies Act2013;

12. As per information the Company is not a Nidhi Company hence provisions of sub-clause (xii) of the Paragraph 3 of the Order are not applicable;

13. According to information and explanations given to us all transactions with therelated parties are in compliance with sections 177 and 188 of Companies Act 2013wherever applicable and the details have been disclosed in the financial statements etc.as required by the applicable accounting standards;

14. According to information and explanations given to us the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review;

15. According to information and explanations given to us the Company has not enteredinto non- cash transactions with directors or persons connected with him;

16. According to information and explanations given to us the Company is a Non-BankingFinancial Company duly registered under Section 45-1A of the Reserve Bank of India Act1934.

FOR Anil Hariram Gupta & Co.

Chartered Accountants

Firm Regn. No. 327781E

Sd/-

Anil Gupta

Partner

Membership No. 066306

Place : New Delhi

Date : 30th May 2017.

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE FINANCIALSTATEMENTS OF FRANKLIN LEASING AND FINANCE LIMITED

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

We have audited the internal financial controls over financial reporting of FRANKLINLEASING AND FINANCE LIMITED as of 31st March 2017 in conjunction with our audit ofthe standalone financial 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 and maintaining internalfinancial controls. 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 of fraudsand 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 internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance 168 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 auditors judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence obtained is sufficient and appropriate to provide a basis for our auditopinion on the Company's internal financial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company s internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company s internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal mancied controls overfinancial reporting were operating effectively as at 31st March 2017.

FOR Anil Hariram Gupta & Co.

Chartered Accountants

Firm Regn. No. 327781E

Sd/-

Anil Gupta

Partner

Membership No. 066306

Place : New Delhi

Date : 30th May 2017

believe that the audit evidence obtained is sufficient and appropriate to provide abasis for our audit opinion on the Company's internal financial controls system overfinancial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company s internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company s internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal mancied controls overfinancial reporting were operating effectively as at 31st March 2017.

FOR Anil Hariram Gupta & Co.

Chartered Accountants

Firm Regn. No. 327781E

Sd/-

Anil Gupta

Partner

Membership No. 066306

Place : New Delhi

Date : 30th May 2017.