JAGSONPAL FINANCE & LEASING LTD New Delhi.
Report on the Indian Accounting Standards (Ind AS) Financial Statements
1. We have audited the accompanying Ind AS financial statements of JAGSONPAL FINANCE& LEASING LTD ("the Company") which comprise the Balance Sheet as at March31 2021 the Statement of Profit & Loss the Cash Flow Statement Statement ofchanges in Equity and a summary of significant accounting policies and other explanatoryinformation.
2. 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 ("Ind AS")prescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended and other accounting principles generally accepted inIndia of the standalone state of affairs as at March 31 2021.
Management's Responsibilities for the Ind AS Financial Statements
3. The Company's Board of Directors is responsible for the matters stated inSection 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these Ind AS financial statements to give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards specified in the Companies (Indian Accounting Standard) Rule 2015 (as amended)under Section 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the Ind AS financial statements that give a true and fair view and arefree from material misstatement whether due to fraud or error.
4. Our responsibility is to express an opinion on these Ind AS financial statementsbased on our audit.
5. 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.
6. We conducted our audit of the Ind AS financial Statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act and other applicableauthoritative pronouncements issued by the Institute of Chartered Accountants of India.Those Standards and pronouncements require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the Ind ASfinancial statements are free from material misstatement.
7. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal control relevant to the Company's preparationand fair presentation of the Ind AS financial statements in order to design auditprocedure that are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe Ind AS financial statements.
8. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements.
9. In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the Ind AS and other accounting principles generally accepted in India of the stateof affairs of the Company as at 31 March 2021 and its total comprehensive loss its cashflows the changes in Equity of the company and a summary of significant accountingpolicies and other explanatory information for the year ended on that date.
Report on Other Legal and Regulatory Requirements
10. As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment in terms of Sub-section (11) of section 143 of the Act ("the Order")and on the basis of such checks of the books and records of the company as we consideredappropriate and according to the information and explanations given to us we give in theAnnexure B a statement on the matters specified in paragraphs 3 and 4 of the Order.
11. As required by Section 143(3) of the Act we report that:
(a) We have sought and obtained all the information to the best of our knowledge andbelief was necessary for the purposes of our audit.
(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.
(c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementand changes in Equity Report are in agreement with the books of account.
(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Accounting Standards specified under Section 133 of the Act.
(e) On the basis of written representation received from the directors as on 31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 from being appointed as a director in terms of Section164(2) of the act.
(f) As required under section 143(3)(i) of the act regarding adequacy and operatingeffectiveness of internal financial controls a separate annexure A.
(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 which impact its Ind AS financialposition;
ii. The Company does not have any long term contracts; and
iii. The company has no unpaid dividends that required to be transferred to theInvestor Education and Protection Fund.
ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT
Referred to in paragraph 11(f) of the Independent Auditors'report of even date to theMembers of Jagsonpal Finance & Leasing Ltd. on the Ind AS financial statements for theyear ended 31st March 2021.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of section143 of the Act
We have audited the internal financial controls over financial reporting of JagsonpalFinance & Leasing Limited ("the Company") as at March 31 2021 inconjunction with our audit of the Ind AS financial statements of the Company for the yearended on that date.
Responsibility of management
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.
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 deemed to be prescribedunder section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the ICAI.
"Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofinternal financial controls systems over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risk ofmaterial misstatement of the financial statements whether due to fraud or error.
We believe that the evidences obtained by us are sufficient and appropriate to expressopinion on internal financial control system of the company over financial reporting.
Meaning of internal financial controls
A company's Internal financial control over financial reporting reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles.
A company's internal financial control over financial reporting includes those policiesand procedures that:
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) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and
3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial 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 control over financialreporting to future periods are subject to the risk that the internal financial controlsover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls with reference to Ind AS financial statements and such internalfinancial controls over financial reporting were operating effectively as at March 312021 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 theInstitute of Chartered Accountants of India.
.ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT
Referred to paragraph 10 in our Independent Auditors' Report to the members of thecompany on the financial statements for the year ended 31st March 2021 wereport that:
1. a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.
b) As explained to us fixed assets have been physically verified by management whichin our opinion provides for physical verification of all the fixed assets at reasonableintervals.
c) According to the information and explanations given to us no material discrepancieswere noticed on such verification.
d) As explained to us title deeds of immovable properties are held in the name ofcompany.
2. a) As explained to us the inventories of finished goods were physically verified atthe end of the year by the Management. In case of inventories lying with third partiescertificates of stocks holding have been received.
b) According to the information and explanations given to us no material discrepancieswere noticed on such verification.
3. a) The Company has not granted loans to any bodies corporate covered in the registermaintained under section 189 of the Companies Act 2013 (the Act').
b) Accordingly paragraph 3(iii)(b) of the Order is not applicable to the Company inrespect of repayment of the principal amount.
c) There is no amount due in respect of the loans granted to the bodies corporatelisted in the register maintained under section 189 of the Act.
4. According to the information and explanations given to us Company has not given anyloans to directors as specified under section 185 of Companies act'2013 and no Loans andInvestment made by company in contravention of section 186 of Companies Act'2013.
5. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from public within the meaning of Sections 73 to 76of the Companies Act 2013.
6. As per the explanations given to us the provision of section 148(1) of the CompaniesAct 2013 regarding maintenance of cost records are not applicable to the company.
7. According to the information and explanations given to us there are no undisputedstatutory dues payable in respect of Provident Fund Employees State Insurance IncomeTax Sales Tax Customs Duty Excise Duty which are outstanding as at 31st March 2021for a period of more than six months from the date they became payable.
8. The Company did not have any loans or borrowings from any financial institutionsbanks Government nor has it issued any debentures as at the balance sheet date theprovisions of clause 3(viii) of the Order are not applicable of the company.
9. The company has not raised any moneys by way of initial public offer further publicoffer (including dent instruments) and term loans. Accordingly the provisions of clause3(ix) of the order are not applicable to the company.
10. According to information and explanations given to us no fraud by the company oron the company by its officers or employees noticed or reported during the year.
11. Company has not paid any Managerial Remuneration during the year.
12. As the company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it the provisions of clause 3(xii) of the order are not applicable to the company.
13. The Company has entered into transactions with related parties in compliance withthe provisions of Sections 177 and 188 of the Act. The details of such related partytransactions have been disclosed in the Ind AS financial statements as required underIndian Accounting Standard (Ind AS) 24 Related Party Disclosures specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.
14. During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause 3(xiv) of the Order is not applicable to the Company.
15. 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 directors of its subsidiary company or persons connected with them and henceprovisions of section 192 of the Companies Act 2013 are not applicable.
16. The company is required to and has been registered under Section 45-IA of theReserve Bank of India Act 1934 as a NBFC'.
| ||For Ashutosh Shukla & Co. |
| ||Chartered Accountants |
| ||Firm Regn. No. 027473N |
|Place: New Delhi ||(Ashutosh Shukla) |
|Dated: 28.06.2021 ||Proprietor |
| ||M.No.524054 |