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Pariksha Fin-Invest-Lease Ltd.

BSE: 539481 Sector: Financials
NSE: N.A. ISIN Code: INE270F01010
BSE 05:30 | 01 Jan Pariksha Fin-Invest-Lease Ltd
NSE 05:30 | 01 Jan Pariksha Fin-Invest-Lease Ltd

Pariksha Fin-Invest-Lease Ltd. (PARIKSHAFININV) - Auditors Report

Company auditors report

TO THE SHAREHOLDERS OF

PARIKSHA FIN-INVEST-LEASE LIMITED

Opinion

We have audited the accompanying financial statements PARIKSHA FIN-INVEST-LEASELIMITED ("the Company") which comprise the Balance Sheet as at March 312021 the Statement of Profit and Loss including the Statement of Other ComprehensiveIncome the Cash Flow Statement and the Statement of Changes in Equity for the year thenended and a summary of significant accounting policies and other explanatory information(hereafter referred to as Ind AS Financial Statements).

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 March31 2021 and Loss changes in equity 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 Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis 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 mattersare 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. Wehave determined the matters described below to be the key audit matters to becommunicated.

Key Audit Matters Auditor's Response
Valuation of investments carried at fair value
As at 31st March 2021 the Company held investments amounting to Rs. 53134035/- which represent 69.07 % of the total assets of the Company as at 31 March 2021. These investments comprise of investment in unquoted equity shares and preference shares of related companies which are fair valued using Level 2 and 3 inputs. The fair valuation of these investments is determined by a management appointed independent valuation specialist. The process of computation of fair valuation of investments includes use of unobservable inputs and management judgments and estimates. The key assumptions underlying management's assessment of fair value of these investments include application of liquidity discounts; calculation of discounting rates and the estimation of fair market value of assets of related companies. Our audit procedures in relation to valuation of investments included but were not limited to the following:
The valuation of these investments was considered to be one of the areas which required significant auditor attention and was one of the matters of most significance in the financial statements due to the materiality of the value of such investments and the complexity involved in the valuation of these investments. a) Obtained a detailed understanding of the management's process and controls for determining the fair valuation of these investments. The understanding was obtained by performance of walkthroughs which included inspection of documents produced by the Company and discussion with those involved in the process of valuation;
b) Evaluated the design and the operational effectiveness of relevant key controls over the valuation process including the Company's review and approval of the estimates and assumptions used for the valuation including key authorization and data input controls; :
c) Assessed the appropriateness of the valuation methodologies for varied type of investments in accordance with the Company's policy and tested the mathematical accuracy of the management's model adopted for different types of investments;
d) Obtained the valuation reports received from the management's expert and assessed the expert's competence objectivity and independence in performing the valuation of these investments;
e) Ensured the appropriateness of the carrying value of these investments in the financial statements and the gain or loss recognized in the financial statements as a result of such fair valuation; and
f) Ensured the appropriateness of the disclosures in accordance with the applicable accounting standards

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance of the Company inaccordance with the AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for prventing anddetecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating 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.

The Board of Directors are responsible for overseeing the company's financial reportingprocess.

Auditor's Responsibilities for the Audit of 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 aggregate they couldreasonably be expected to influence the economic decision of users taken on the basis ofthese financial statements. (Refer Appendix A) As part of an audit in accordance with SAsWe exercise professional judgment and maintain professional skepticism throughout theaudit. We also:

- 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 to obtain audit evidence that is suffient and appropriate to provide a basisfor our 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.

- Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the company hasadequate

- Internal financial controls system in place and the operating effectiveness of suchcontrols.

- Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

- 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 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 conclusion are based on the audit evidences 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.

- Evaluate the overall presentation Structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statement thatindividually or in aggregate makes it probable that the economic decision of a reasonablyknowledgeable user of the financial statements may be influenced. We consider quantitativemateriality and qualitative factor in

(i) planning the scope of our audit work; and

(ii) to evaluate the effect of any identified misstatement in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant decencies in internal control that we identify during our audit.

We also provide those charge 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

As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of In-dia in terms of section 143(11) of the Act we givein "Annexure I" a statement on the matters specified in paragraphs 3 and4 of the Order.

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 the law have been kept bythe Company so far as it appears from our examination of those books.

(c) The Balance Sheet and the Statement of Profit and Loss dealt with by this Reportare in agreement with the relevant books of account.

(d) In our opinion the aforesaid financial statements comply with Ind AS specifiedunder Section 133 of the Act read with relevant rules issued there under.

(e) On the basis of the written representations received from the directors as on March31 2021 taken on record by the Board of Directors none of the director is disqualifiedas on March 31 2021 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 II". Our report express an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

(g) With respect to the other matters to be included in the Auditor's report inaccordance with the requirements of section 197(16) of the Act as amended: In our opinionand to best of our information and according to the explanations given to us the companyis not providing any managerial remuneration . Accordingly provisions of section 197 arenot applicable.

(h) 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

(i) The company does not have any pending litigations which would impact its financialposition.

(ii) The Company did not have any long term contracts including derivative contractsfor which there were any material foreseeable losses.

(iii) There were no amounts which were required to be transferred to Investor Educationand Protection Fund by the Company.

(i) Further as required by ‘Non Banking Financial Companies Auditor's Report(Reserve Bank) Directions 2016' we further state that we have submitted a separatereport to the Board of Directors of the Company on the matters specified in saiddirections as under:-

a) The company applied for registration as provided in section 45IA of the Reserve Bankof India Act 1934 and has obtained certificate of registration from the Reserve Bank ofIndia.

b) The Company is entitled to continue to hold the Certificate of Registration in termsof its asset/income pattern as on 31st March 2021.

c) The Board of Directors of the company has passed a resolution for non –acceptance of any public deposits.

d) The company has not accepted any public deposit during the year under reference.

e) The company has complied with the prudential norms relating to income recognitionaccounting standards assets classification and provisioning of bad and doubtful debts asapplicable to it in terms of Non–Banking Financial (Non-Deposit Accepting or Holding)Companies Prudential Norms (Reserve Bank) Directions 2016.

f) The Company has requisite Net Owned Fund as required by Master direction –NonBanking Financial Company – Non systemically Important Non-Deposit taking Company(Reserve Bank) Direction 2016.

ANNEXURE I TO INDEPENDENT AUDITORS' REPORT

Referred to in Paragraph 1 under "Report on Other Legal and RegulatoryRequirements" section of report of even date on the financial statements for the yearended on March 31 2021.

1. The Company has no fixed assets; as such the maintenance of fixed assets records andphysical verification thereof does not arise.

2. The inventory of the company comprises equity shares which are in dematerializedform and which have been verified by the management with reference to holding statementfrom depository participant. In our opinion the procedure of verification of inventoryfollowed by the management is satisfactory. Further the company is maintaining properrecords of its inventory and no discrepancies were noticed on verification.

3. a) According to information made available to us the company has granted unsecuredloans to companies covered in the register maintained under section 189 of the Act and inour opinion the terms and conditions of such loans are not prejudicial to the company'sinterest.

b) As per the information and explanation given to us the said loans are repayable ondemand.

4. According to the information and explanations given to us and in our opinion theCompany has not advanced any loan investment guarantee or security to any person asspecified under section 185 and 186 of the Companies Act 2013. Accordingly clause

(iv) of paragraph 3 of the Companies (Auditor's Report) Order 2016 is not applicableto the Company for the current year.

5. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public within the provisions of sections 73to 76 or any other relevant provisions of the Companies Act 2013 and the rules framedthere under during the year.

6. The Central Government has not prescribed the maintenance of cost records by theCompany under section 148 (1) of the Companies Act 2013.

7. (a) The Company has been regular in depositing to the appropriate authoritiesundisputed statutory dues including Income tax Service tax Goods and Service Tax and anyother statutory dues to the extent applicable to it.

According to the information and explanations given to us no undisputed amounts inrespect of statutory dues were in arrears as at March 31 2021 for a period of more thansix months from the date they became payable.

(b) According to the information and explanation given to us there were no dues ofIncome tax Goods & Service Tax and Cess which have not been deposited on account ofany dispute except the following:

Assessment Year Name of The Statutory Authority Amount Remark
2013-14 INCOME TAX 8923 Appeal is pending before ITAT Delhi
2014-15 INCOME TAX 10000 Appeal is pending before ITAT Delhi

8. On the basis of overall examination of the balance sheet of the company in ouropinion and according to information and explanation given to us the company has notraised any money by way of term loan from any financial institution bank or Governmentduring the year the company has not issued any debentures.

9. According to the information and explanations given to us there was no money raisedby way of initial public offer or further public offer nor any term loan was taken by theCompany during the year.

10. 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 duringthe course of our audit.

11. To the best of our knowledge and belief and according to information given to usthe company has not given any managerial remuneration during the year under review.

12. In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly clause (xii) of paragraph 3 of the Companies(Auditors Report) Order 2016 is not applicable.

13. 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.

14. 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 paid convertible debenturesduring the year.

15. 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 its Directors or persons connected with him. Accordingly clause (xv) ofparagraph 3 of the Companies (Auditors Report) Order 2016 is not applicable.

16. The Company is required to be registered under section 45-IA of the Reserve Bank ofIndia Act 1934 and the registration has been duly obtained.

ANNEXURE II TO INDEPENDENT AUDITORS' REPORT

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

We have audited the internal financial controls over financial reporting of PARIKSHAFIN-INVEST–LEASE LIMITED ("the Company") as of March 31 2021 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India.

These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantof India and the Standards on Auditing prescribed under section 143(10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 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 risks ofmaterial misstatement of the financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the internal financial controls system over financialreporting of the company.

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 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 those 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 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 March 31 2021 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 B. K. KAPUR AND CO.
Chartered Accountants
Firm Registration No. 000852C
(M.S. KAPUR) F.C.A.
Place : Ghaziabad Partner
Dated : 08.06.2021 Membership No: 074615

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