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|
|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|
TO THE SHAREHOLDERS OF PARIKSHA FIN-INVEST-LEASE LIMITED Opinion
We have audited the accompanying financial statements of PARIKSHA FIN-INVEST-LEASELIMITED ("the Company") which comprise the Balance Sheet as at March 312019 the Statement of Profit and Loss and the Statement for Cash Flow for the year endedon that date and notes to the financial statement including summary of significantaccounting policies and other explanatory information.
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 theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the Accounting Standards prescribed under the Act and otheraccounting principle generally accepted in India of the state of the affairs of theCompany as at March 31 2019 the profit its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of financial statements in accordance with the Standards onAuditing (SAs) specified under section 143(10) of the Act. Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe Financial 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 (ICAI) together with the independence requirements that are relevant to our audit ofthe financial statements under the provisions of the Act and the Rules made thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the ICAI's Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thefinancial statements.
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. Key auditmatters are selected from matters communicated with those charge with governance but arenot intended to represent all matters that were discussed with them. The auditors'procedures relating to these matters were designed in the context of the audit of thefinancial statements as a whole. However there are no Key audit matters to report.
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 cash flows of theCompany in accordance with the AS and other accounting principles generally accepted inIndia. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor prventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
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.
As part of an audit in accordance with SAs We exercise professional judgment andmaintain professional skepticism throughout the audit. 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 sufficient 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 ofsuch controls.
- 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 deficiencies 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.
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 and 4 ofthe 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 Accounting Standardsspecified under 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 2019 taken on record by the Board of Directors none of the director is disqualifiedas on March 31 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 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'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 asamended in our opinion and to the best of our information and according to theexplanations given to us: (i) The company does not have any pending litigations whichwould impact its financial position.
(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 whichwere required to be transferred to Investor Education and 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 45IAof the Reserve Bank of India Act 1934 and has obtained certificate of registration fromthe Reserve Bank of India.
b) The Company is entitled to continue to hold the Certificate of Registration in termsof its asset/income pattern as on 31st March 2019. c) The Board of Directors of thecompany has passed a resolution for non acceptance of any public deposits. d) Thecompany has not accepted any public deposit during the year under reference. e) Thecompany has complied with the prudential norms relating to income recognition accountingstandards assets classification and provisioning of bad and doubtful debts as applicableto it in terms of NonBanking Financial (Non-Deposit Accepting or Holding) CompaniesPrudential Norms (Reserve Bank) Directions 2016. f) The Company has requisite Net OwnedFund as required by Master direction Non Banking Financial Company Nonsystemically 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 2019 of
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 arerepayable on demand.
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 applicable to theCompany 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 andexplanations given to us no undisputed amounts in respect of statutory dues were inarrears as at March 31 2019 for a period of more than six months from the date theybecame 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:
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 andexplanations given to us and based on our examination of the records of the Companytransactions with the related parties are in compliance with sections 177 and 188 of theAct where applicable and details of such transactions have been disclosed in the financialstatements as required by the applicable accounting 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. TheCompany is required to be registered under section 45-IA of the Reserve Bank of India Act1934 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 2019 in conjunctionwith our audit of the financial statements of the Company for the year ended on 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.
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 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 those 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.
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 2019 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.