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Kwality Credit & Leasing Ltd.

BSE: 531206 Sector: Financials
NSE: N.A. ISIN Code: INE577C01015
BSE 00:00 | 07 Oct 10.40 0
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10.60

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NSE 05:30 | 01 Jan Kwality Credit & Leasing Ltd
OPEN 10.60
PREVIOUS CLOSE 10.40
VOLUME 5
52-Week high 12.69
52-Week low 8.39
P/E
Mkt Cap.(Rs cr) 4
Buy Price 10.40
Buy Qty 2.00
Sell Price 10.60
Sell Qty 997.00
OPEN 10.60
CLOSE 10.40
VOLUME 5
52-Week high 12.69
52-Week low 8.39
P/E
Mkt Cap.(Rs cr) 4
Buy Price 10.40
Buy Qty 2.00
Sell Price 10.60
Sell Qty 997.00

Kwality Credit & Leasing Ltd. (KWALITYCREDIT) - Auditors Report

Company auditors report

To the Member* of

Report on the Financial Statement*

We have audited the accompanying standalone financial statements of KWALfTY CREDIT& LEASING LIMITED (‘'the company'kwhich comprise the Balance Sheet as at 31**March 2018 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory Information

Management1* Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matter* stated In Section134(5) of the Companies Act 2013 (‘the Act") with respect to the preparation andpresentation of these standalone financial statements that give a true and fair view ofthe financial position financial performance and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014 (as amended). This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting 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 controls that were operating effectively forensuring the accuracy and completeness of the 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 standalone financial statementsbased on our audit

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 ethical equipmentsand plan and perform the audit to obtain reasonable assurance about whether the financialstatements 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 risks of material misstatement of tee financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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 standalone financial statements.

Opinion

In our opinion and to the best of our information and according to tee explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in tee manner so required and give a true and fair view In conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31* March 2018 and Its Profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. 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 Balance Sheet the Statement of Protit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

(d) 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 (as amended).

(e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in terms of Section164 (2) of the Act.

<f) With respect to (he adequacy of (he internal financial con trots over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report In "Annexura A*; and our report expresses an unmodified opinion ondie internal financial controls over financial reporting of die Company.

(g) With reaped to the other matters to be included in the Auditor's Report inaccordance with Role 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 has no pending litigations which would impact on its financial position.

II. The Company did not have any long-term contracts Including derivative contracts forwhich there were any material foreseeable tosses.

Hi. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the company at the end of the year.

2. As required by the companies (Auditor's Report) Order 2016 ("The Order")issued by the Central Government of India fn terms of sub-section (11) of the section 143of the Act we give in the Annexure B a statement on the matter specified in paragraph 3and 4 of the Order to the extent applicable.

For PACHISIA ft ASSOCIATES

(F.R.N. NO. 327542E) (Chartered Accountants)

Place: 783 Anandpur Kolkata-700107 Date: The 29th day of May 2018

(Satya Prakaah PachlsPa)

(Proprietor)

(MhNo 065040)

Annexure - A to the Auditors' Report

(Referred to In paragraph 1(f) under "Report on Other Legal and RegulatoryRequirements' of our report on even date)

Report on the Internal Financial Controls under Clause (t) of Sub-section 3 of Section143 of me Companies Actr 2013 ("the Act")

We have audited the internal financial controls over financial reporting of KWAUTYCREDIT ft LEASING LIMtTED {the Company") as of 31* March 2016 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

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 {‘ICAT). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly aid efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records* and the timely preparation of reliable financialinformation 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 toe Guidance Note on Audit of Infernal Financial Controls over Financial Reporting(toe "Guidance Note11) and the Standards on Auditing issued by ICAI anddeemed to 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 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 ofthe internal financial controls system over financial reporting end 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 toe auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial 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 systemover financial reporting*

Meaning of Internal Financial Controls over Financial Reporting I

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and toepreparation of financial

statements for external purposes in accordance with generally accepted accountingprinciples A company's internal financial control over financial reporting Includes thosepolicies and procedures that (1) pertain to the maintenance of records that in reasonabledetail accurately and fably reflect the transactions and dispositions of the assets ofthe company; (2) provide reasonable assurance that transactions are recorded as necessaryto permit preparation of financial statements in accordance with generally acceptedaccounting principles and teat receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the company's assets that could have a material effecton tee financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the Inherent limitations of internal financial controls over financialreporting including tee 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 financial controlsover financial reporting were operating effectively as at 31 March 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting Issued by the Institute of CharteredAccountants of India

For PACHISIA & ASSOCIATES

(F.R.N. NO 327542E) {Chartered Accountants)

Place: 783 Anandpur Kdkata-700107

Date: The 29th day of May 2010

(Satya Prafcash PachfelaJ

{Proprietor)

{M.No 065040)

Annexure - B to the Auditors' Report

The Annexure referred to in Independent Auditors Report to the members of toe Companyon toe Standalone financial statements for the year ended 31* March 2018 we report that:

a) The Company has maintained proper records showing toll particulars includingquantitative details and situation of Fixed Assets on the basis of available information

b) As explained to us the Fixed Assets have been physically verified by the managementduring the year which in our opinion is reasonable having regard to size of the Companyand nature of its assets. No material discrepancies were noticed on such physicalverification

c) The company does not have any immoveable property.

(") J1** Company did not cany any inventory during the year and as suchquestion of physical

verification comments on reasonableness of procedure adopted for the same ormaintenance of any records for such inventory or discrepancy on such physical verificationtherein do not arise at all

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms or other parties covered inthe register maintained under Secflon 189 of the Companies Act 2013 Accordinglyparagraph 3 <rfi) (a) and (b) of the order is not applicable.

(tv) As it is a NBFC company With respect to loans investments guarantees andsecurities provisions of Sec 185 & 186 of Companies Act 2013 is not applicable toCompany

(v) The Company has not accepted deposits from the public within the meaning of Section73 or any other relevant provisions of toe Companies Act 2013. Accordingly paragraph 3<v) ofthe order Is not applicable.

(vi) Jt has been explained to us that toe maintenance of cost records has not beenprescribed under

section 146(1) of the Act.

(vii) (a) The Company has generally been regular in depositing undisputed statutorydues Including

Provident Fund Employees' State Insurance Income tax. Sales-tarf Value Added TaxService tax Customs duty Excise Duty Cess and other applicable statutory dues with theappropriate authorities. No undisputed amounts payable in respect of aforesaid dues arethere at toe year end for a period of more than six months from the date they becamepayable.

(b) According to the records of the Company and the information and explanation givento us them are no dues in respect of Income tax Wealth Tax t Sales Tax Exciseduty .custom duty & cess that were not been deposited with the appropriate authoritieson account of any dispute

(viii) The Company does not have any loans or borrowings from any financialInstitution banks government or debenture holders during the year. Accordinglyparagraph 3<viiit of toe Order is not applicable.

(ix> The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term bans during toe year Accordinglyparagraph 3 (fit) of

the Order Is not applicable.

(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringme course of our audit

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has pakf/provfded for managerialremuneration in accordance with the provisions of section 197 read with Scbedute V to theAct

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhr Company. Accordingly paragraph 3(xii) of the order is not

applicable.

<xiil> According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are Incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xfv) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered Into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

(xvi) The company is a Non-Banking Financial Institution without accepting PublicDeposits registered under section 45IA of the Reserve Bank of indie Act 1934 having validCertificate of Registration.

For PACHISEA& ASSOCIATES

fF.R.N. NO. 327542E) (Chartered Accountants)

Place: 783 Anandpur Kolkata-700107 Date: The 23th day of May 2018

(Satya Prakaah Pachbia)

(Proprietor)

(M.No 055040)