The Members of
NALIN LEASE FINANCE LTD.
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of NALIN LEASEFINANCE LTD. ("the company") which comprise the Balance Sheet as at 31March 2019 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.
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 Act in the 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 March 31 2019 and profit and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder 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.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.
There are no key audit matters to communicate in our report.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating 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.
In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.
Those Board of Directors are also responsible for overseeing the company's financialreporting process.
Auditor's Responsibility for the Audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.
As a part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit.
(a) Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.
(b) 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 Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness of such controls.
(c) Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
(d) Conclude on the appropriateness of management's use of the going concern basis ofaccounting 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 financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.
(e) 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 financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen 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 (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of Section 143 ofthe Act we give in the Annexure-A a statement on the matters specified in theparagraph 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 appears from our examination of those books.
c) The Balance Sheet the Statement of Profit and Loss and Cash Flow Statement dealtwith 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.
e) On the basis of written representations received from the directors as on 31 March2019 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2019 from being appointed as a director in terms of Section 164(2) of theAct.
f) with respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B"; and
g) With respect to the other matters to be included in the Auditor's Report and inaccordance with rule 11 of the companies (Audit & Auditors) Rule 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 litigation which would impact its financialpositions
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii There were no amounts which were required to be transferred to the . InvestorEducation and Protection Fund by the Company.
For Paresh Thothawala & Co.
Firm Reg. No. 114777W
CA Paresh Thothawala
Membership No. 048435
Annexure to the Independent Auditors' Report
The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the financial statements for the year ended 31 March 2019 we report that:
|3(i) (a) ||In our opinion the Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. |
|(b) ||The Company has a regular program of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of three years. In accordance with this program certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. |
|(c) ||According to the information and explanation given to us and based on the examination of the registered sale deed/transfer deed/conveyance deed/other corroborative evidence provided to us we report that the title deeds comprising all the immovable properties of land and building which are freehold we held in the name of the company as at the balance sheet date. The company had not entered in to any lease till the end of the financial year. |
|3(ii)(a) ||The Company is a finance company and it does not hold any physical inventories except stationery & Adhesive Stamp. Hence paragraph 3(ii) of the Order is not applicable |
|(b) ||In our opinion and based on information provided to us no material discrepancies were noticed and in the absence of the same commenting on dealing with the books of accounts does not arise |
|3 (iii) ||Based on information given to us during the year the company has not granted any loans secured or unsecured loan to any party covered in the register maintained under Section 189 of Companies Act 2013. |
|3 (iv) ||Based on information given to us during the year the company has not granted any loans investments guarantees and securities to any party as specified under Section 185 and 186 of Companies Act 2013. |
|3 (v) ||The Company has not accepted any deposits from the public during the year which attract the directives issued by the Reserve Bank of India. Being a Non-Banking Finance Company the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the rules framed thereunder regarding acceptance of deposits are not applicable. Therefore the reporting requirement under clause (v) of paragraph 3 of the Order is not applicable. |
|3 (vi) ||To the best of our knowledge and explanation given to us the provision of maintenance of cost records under sub-section (1) of section 148 of the Act is not applicable to the company. |
|3 (vii)(a) ||In our opinion and according to information and explanation given to us and according to records of the company the company has been regular in depositing undisputed statutory dues including Provident fund Employee's state insurance Income Tax Sales Tax Goods & Service Tax Duty of customs Duty of Excise Value added tax cess and other material statutory dues with the appropriate authorities. There is no arrears of statutory dues as at 31st March 2019 which are outstanding for a period of more than 6 Months from the date they becomes payable. |
|(b) ||According to the information and explanations given to us there are no material dues of income-tax sales tax goods and service tax duty of customs and excise and cess which have not been deposited with the appropriate authorities on account of any dispute. |
|3 (viii) ||In our opinion and based on information given to us the company has not defaulted in repayment of dues to the banks. |
|3 (ix) ||During the year under Audit the Company has not raised moneys by way of IPO or Further Public Offer including debts instruments and term loans. |
|3 (x) ||According to the information and explanations given to us No fraud by the Company or any fraud on the Company by its officers or employees has been noticed or reported during the year. |
|3 (xi) ||In our opinion managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V to the Companies Act. |
|3 (xii) ||As the company is not Chit Fund/ Nidhi/ Mutual Benefit Fund/Society to which the provisions of special statute relating to Nidhi Company/Chit Fund are applicable and hence such clause is not applicable. |
|3(xiii) ||Based upon the audit procedure performed and according to the information and explanation given to us All transactions with related parties are in compliance with section 177 and 188 of the act where applicable and the details have been specified in Note no. 28 of the financial statements of the company. |
|3(xiv) ||The company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review hence this para is not applicable. |
|3(xv) ||The company had not entered into any non-cash transactions with the directors or persons connected with him under section 192 of the Act. |
|3(xvi) ||The Company is registered with RBI as NBFC and has Certificate of registration bearing No. 01.00242 under Section 45IA of the Reserve bank of India Act 1934. |
For Paresh Thothawala & Co.
Firm Reg. No. 114777W
CA Paresh Thothawala
Membership No. 048435