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Virat Leasing Ltd.

BSE: 539167 Sector: Financials
NSE: N.A. ISIN Code: INE347L01014
BSE 00:00 | 15 Mar Virat Leasing Ltd
NSE 05:30 | 01 Jan Virat Leasing Ltd
OPEN 12.50
PREVIOUS CLOSE 12.50
VOLUME 25
52-Week high 12.50
52-Week low 0.00
P/E 208.33
Mkt Cap.(Rs cr) 16
Buy Price 13.12
Buy Qty 50.00
Sell Price 0.00
Sell Qty 0.00
OPEN 12.50
CLOSE 12.50
VOLUME 25
52-Week high 12.50
52-Week low 0.00
P/E 208.33
Mkt Cap.(Rs cr) 16
Buy Price 13.12
Buy Qty 50.00
Sell Price 0.00
Sell Qty 0.00

Virat Leasing Ltd. (VIRATLEASING) - Auditors Report

Company auditors report

TO THE MEMBERS VIRAT LEASING LIMITED

REPORT ON THE AUDIT OF THE STANDALONE IND AS FINANCIAL STATEMENTS

Opinion

We have audited the accompanying Standalone Ind AS Financial Statements of ViratLeasing Limited ("the Company") which comprise the Balance Sheet as at March31 2020 the Statement of Profit and Loss including Other Comprehensive Income the CashFlow Statement and the Statement of Changes in Equity for the year then ended and notesto the Ind AS Financial Statements including a summary of significant accounting policiesand other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS Financial Statements give the information required bythe Companies Act 2013 as amended ("the Act") in the manner so required andgive a true and fair view in conformity with the accounting principles generally acceptedin India of the state of affairs of the Company as at March 31 2020 its profitincluding other comprehensive income its cash flows and the changes in equity for theyear ended on that date.

Basis for Opinion

We conducted our audit of the standalone Ind AS Financial Statements in accordance withthe Standards on Auditing (SAs) as specified under section 143(10) of the Act. Ourresponsibilities under those SAs are further described in the Auditor's Responsibilitiesfor the Audit of the Ind AS Financial Statements section of our report. We are independentof the Company in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India ('the ICAI') together with the ethical requirements that are relevantto our audit of the Financial Statements under the provisions of the Act and the Rulesthere under 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 audit opinion on thestandalone Ind AS Financial Statements.

Emphasis of Matter

We draw attention to Note no. 5.13 of standalone Financial Statements which explainsthe uncertainties and management's assessment of the Financial impact due to theprevailing situation related to the Covid-19 pandemic on the future performance of theCompany.

Our opinion is not modified in respect of above matter

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone Ind AS Financial Statements for the Financialyear ended March 31 2020. These matters were addressed in the context of our audit of thestandalone Ind AS Financial Statements as a whole and in forming our opinion thereon andwe do not provide a separate opinion on these matters. For each matter below ourdescription of how our audit addressed the matter is provided in that context.

We have determined the matters described below to be the key audit matters to becommunicated in our report. We have fulfilled the responsibilities described in theAuditor's responsibilities for the audit of the standalone Ind AS Financial section of ourreport including in relation to these matters. Accordingly our audit included theperformance of procedures designed to respond to our assessment of risks of materialmisstatement of the standalone Ind AS Financial Statements. The result of our auditprocedures including the procedures performed to address the matters below provide thebasis for our audit opinion on the accompanying Ind AS Financial Statements.

Description of Key Audit Matter

Transition to Ind AS accounting framework (as described in Note No. 8 of the Ind ASFinancial Statements)

Sr. No. Key Audit Matt er How the matter was addressed in our audit
1. In accordance with the roadmap for implementation of Indian Accounting Standards (Ind AS) for non-banking Financial companies as announced by the Ministry of Corporate Affairs ('the MCA') the Company has adopted Ind AS from April 1 2019 with an effective date of April 1 2018 for such transition. For periods up to and including the year ended March 31 2019 the Company had prepared and presented its Financial Statements in accordance with accounting standards notified under Section 133 of the Companies Act 2013 read with Rule 7 of the Companies (Accounts) Rules 2014 ("Indian GAAP" or "previous GAAP"). In order to give effect of the transition to Ind AS these Financial Statements for the year ended March 31 2020 together with the comparative Financial information for the previous year ended March 31 2019 and the transition date balance sheet as at April 1 2018 have been prepared under Ind AS. The transition has involved significant changes in the Company's Financial reporting policies and processes including generation of reliable and supportable Financial information. Further the management has exercised significant judgement for giving an appropriate effect of the first-time adoption principles of Ind AS 101 as at transition date and to determine the impact of the new accounting framework on certain accounting and disclosure requirements prescribed under relevant accounting standards to the extent applicable. In view of the material impact and complexities and significant judgement involved in implementing Ind AS we have focused on this area in our audit. Our audit procedures included:
In our audit approach we assessed the impact of the transition to Ind AS and discussed with the management regarding the policies and procedures adopted for such transition. Our audit procedures included:
1) Read the Ind AS impact assessment performed by the management and the resultant changes made to the accounting policies considering the requirements of the new framework.
2) Assessed the judgement exercised by the management in applying the first-time adoption principles of Ind AS 101 especially in respect of fair valuation of assets and liabilities existing as at transition date.
3) Read changes made to accounting policies and estimates in light of the requirements.
4) We understood the Financial statement closure process and the additional controls established by the Company for transition to Ind AS.
5) Assessed the judgement applied by the Company in determining its business model for classification of Financial assets.
6) Tested the accounting adjustments posted as at the transition date and in respect of the previous year to convert the Financial information reported under erstwhile Indian GAAP to Ind AS.
7) Assessed the judgement applied by the Company in respect of areas where the accounting treatment adopted or the disclosures made under the new accounting framework were inconsistent with the extant RBI Directions.
Assessed disclosures made by the management for compliance with Ind AS.

Provision for Expected Credit Losses (ECL) on Loans (refer Note No 5.4 (f) Note No. 11Note No. 36(1)(a) and Note No. 37(2) to the Standalone Financial Statements)

Sr. No. Key Audit Matter How the matter was addressed in our audit
1. Management estimates impairment provision using Expected Credit loss model for the loan assets. Measurement of loan impairment involves application of significant judgement by the management. The most significant judgements are: Timely identification and classification of the impaired loans. 1) In our audit approach we assessed the basis upon which the ECL model is build and discussed with the management of the Company in order to understand the mechanics of ECL deployed by the company to measure the loan impairment.
2) We examined that Board does not have approved policy for computation of ECL but have in place the internal guidelines for computation of ECL. These internal guidelines address procedures and controls for assessing and measuring the credit risk on its loan portfolio.
Determination of probability of defaults (PD) and estimation of loss given defaults (LGD) based on the premise that loans made by the company are unsecured and relevant factors 3) We evaluated the operating effectiveness of controls across the process relevant to ECL including the judgments and estimates.
The estimation of Expected Credit Loss (ECL) on Financial instruments involve significant judgments and estimates. Following are points with increased level of audit focus: 4) We evaluated the nature of loan assets of the company and held discussions with the management and assessed that the company has only one class of loan i.e. unsecured loans repayable on demand and 12 month ECL is just the same as lifetime ECL because the all the loans are repayable on demand which is shorter than 12 months as a result life time of a loan is that short period required to transfer cash when demanded by the company.
5) We tested the completeness of loans and advances included in the Expected Credit Loss calculations as of March 31 2020 by reconciling it with the balances as per loan balance register as on date.
• Classification of assets to stage 1 2 or 3 using criteria in accordance with Ind AS 109 which also include considering the impact of recent RBI's Covid-19 regulatory circulars. 6) We tested assets on sample basis to verify that they were allocated to the appropriate stage.
• Accounting interpretations assumptions and data used to build the models; 7) For samples of exposure we tested the appropriateness of determining EAD PD and LGD
• Inputs and judgements used by the management at various assets stages considering the current uncertain economic environment with the range of possible effects unknown to the country arising out of the Covid- 19 pandemic 8) For forward looking assumptions used in ECL calculations we held discussions with management assessed the assumptions used to determine the probability weights assigned to the possible outcomes. During our examination we assessed that company the company estimates the PD based on historical observed default rates adjusted for forward looking estimates based upon macro-economic developments occurring in the economy and market it operates in.
• The disclosures made in the Financial Statements for ECL especially in relation to judgements and estimates made by the management in determination of the ECL.
Considering the significance of such allowances to the overall Financial Statements and degree of judgement and estimation involved in computation of expected credit losses this area is considered as key audit matter. 9) We performed an overall assessment of the ECL provision including the management's assessment on Covid-19 impact to determine if they were reasonable considering the Company's portfolio risk profile credit risk management practices and the macro-economic environment. We held discussions with the management on its assessment on Covid-19 impact and we assessed that management does not expect any significant haircuts in view of Covid-19. However we could not assess the appropriateness of the future scenarios and assumptions made by the management in response to Covid-19 related economic uncertainty as we do not have the access of the detailed data (like Income tax returns Financial Statements projected Financial Statements cash flow Statements etc.) of the borrowers of the company.
We assessed the adequacy and appropriateness of disclosures in compliance with the Ind AS 107 in relation to judgements

Statutory and Legal Matters (Refer Note no. 35(3)(c):

Sr. No. Key Audit Matte r How the matter was addressed in our audit
1. The Company received a notice from BSE dated August 10 2017 regarding issue related to suspected shell companies. BSE requested to submit various documents from time to time in this regard along with the queries and other information from the Company. Further BSE appointed M/s BDO India LLP Chartered Accountants to carry out the forensic audit of the Company. The Company replied to all the queries issued by the BSE and provided all the necessary informati'on/documents to the forensic auditors in this regard. Further BDO India LLP issued a forensic audit report on March 11 2020 and the matter is sub-judice as on March 31 2020. Our audit procedures included:
1) We have checked up the order of the BSE issued pursuant to the SEBI's aforesaid directions and other relevant correspondence with the BSE and with the forensic auditors appointed by the BSE in this regard since inception.
2) We have also checked all the relevant legal petitions applications affidavits rejoinders inter- locutory applications as filed by the Company with Hon'ble High Court at Kolkata.
3) We communicated with the Management and those charged with Governance with respect to this matter and the Company is regular in replying to all the queries raised and all the documents sought by the Exchange (BSE) and by the forensic auditors. The forensic audit is in process and the matter is sub- judice at present.
4) We examined the forensic audit report issued by M/s BDO India LLP on March 11 2020. Further we held a discussion with the management and the Company is in process to file its response. The matter is sub- judice as on March 31 2020.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparation of otherinformation. The other information comprises of the Annual report but does not includethe Standalone Financial Statements and our auditor's report thereon. The otherinformation is expected to be made available to us after the date of this auditor'sreport.

Our opinion on the standalone Ind AS Financial Statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Ind AS Financial Statements ourresponsibility is to read the other information identified above when it becomes availableand in doing so consider whether such other information is materially inconsistent withthe Standalone Ind AS Financial Statements or our knowledge obtained during the course ofthe audit or otherwise appears to be materially misstated.

When we read such other information if we conclude that there is a materialmisstatement therein we are required to communicate the matter to those charged withgovernance as required under SA 720 'The Auditor's Responsibilities Relating to OtherInformation' in relation to other information in documents containing Audited FinancialStatements. We have nothing to report in this regard.

Responsibilities of Management for the Standalone Financial Statements

In preparing the Standalone Ind AS Financial Statements Management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's Financialreporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the StandaloneFinancial Statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these Standalone 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 FinancialStatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• 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 Act we are also responsible for expressing our opinion on whether the Company hasadequate internal Financial controls with reference to Financial Statements in place andthe operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting 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.

• Evaluate the overall presentation structure and content of the Ind AS FinancialStatements including the disclosures and whether the Ind AS Financial Statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the Standalone Ind AS FinancialStatements that individually origin aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the Ind AS Financial Statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements 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 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 Ind AS Financial Statements forthe Financial year ended March 31 2020 and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

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 in terms of Section 143 (11) of the Act we give in the"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of theorder 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 the Company has kept proper books of account as required by law asfar as it appears from our examination of those books.

c) The Balance Sheet the statement of Profit and Loss including Other ComprehensiveIncome the Cash Flow Statement and the Statement of Changes in Equity of dealt with bythis Report are in agreement with the books of account.

d) In our opinion the aforesaid Standalone Ind As Financial Statements comply with theAccounting Standards specified under Section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended.

e) Based on the written representations received from the directors as on 31st March2020 taken on record by the Board of Directors none of the directors is disqualified ason 31st March 2020 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 with reference toStandalone Financial Statements of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "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 best of our information and according to the explanations given to us:

i) The Company has disclosed the impact of pending litigations on its Financialposition in its Standalone Financial Statements as at March 31 2020 - (Refer Note 35(3)to the Standalone Financial Statements).

ii) The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses during the year ended March 31 2020.

iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

3) With respect to the matter to be included in the Auditor's Report under Section197(16) of the Act:

In our opinion and according to the information and explanations given to us theremuneration paid by the Company to its directors during the current year is in accordancewith the provisions of Section 197 read with Schedule V to the Act.

For and on behalf of
C.K. CHANDAK& CO
Chartered Accountants
Firm Registration Number: 326844E
CA Chandra Kumar Chandak
Proprietorship
Place: Kolkata Membership Number: 054297
Date: 31.07.2020 UDIN:20054297AAAADN2037

Annexure -"A" to the Independent Auditors' Report on the Standalone FinancialStatements

[Referred to in Paragraph 2(f) under 'Report on Other Legal and RegulatoryRequirements' in the Independent Auditor's Report of even date to the Members of ViratLeasing Limited on the Standalone Financial Statements for the year ended 31st March2020].

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 (the "Act")

We have audited the internal Financial controls with reference to Standalone FinancialStatements of Virat Leasing Limited ("the Company") as of March 31 2020 inconjunction with our audit of the Standalone Financial Statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's Management is responsible for establishing and maintaining internalFinancial controls based on the internal control with reference to Financial Statementscriteria 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 ('the ICAI").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 Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal Financialcontrols with reference to Financial Statements based on our audit. We conducted our auditin accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") issued by the Institute of CharteredAccountants of India ("the ICAI") and the Standards on Auditing prescribed underSection 143 (10) of the Companies Act 2013 to the extent applicable to an audit ofinternal Financial controls with reference to Financial Statements. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal Financialcontrols over Financial reporting was established and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal Financial controls with reference to Financial Statements and their operatingeffectiveness. Our audit of internal Financial controls with reference to FinancialStatements included obtaining an understanding of such internal Financial controlsassessing the risk that a material weakness exists and testing and evaluating the designand operating effective 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 Standalone Financial Statements whether due to fraud orerror.

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 withreference to Financial Statements.

Meaning of Internal Financial Controls with reference to Financial Statements

A company's internal Financial control with reference to Financial statement is aprocess designed to provide reasonable assurance regarding the reliability of Financialreporting and the preparation of Financial Statements for external purposes in accordancewith generally accepted accounting principles. A company's internal Financial control withreference to Standalone Financial statement includes those policies and procedures that: -

(i) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(ii) 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

(iii) 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 with Reference to FinancialStatements

Because of the inherent limitations of internal Financial controls with reference toFinancial Statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation the internal Financial controls withreference to Financial Statements to future periods are subject to the risk that theinternal Financial control with reference to Financial Statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalFinancial controls with reference to Standalone Financial Statements and such internalFinancial controls were operating effectively as at March 31 2020 based on the internalcontrol with reference to Standalone Financial Statements 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 (the 'Guidance Note').

For and on behalf of

C.K. CHANDAK& CO
Chartered Accountants
Firm Registration Number: 326844E
CA Chandra Kumar Chandak
Proprietorship
Place: Kolkata Membership Number: 054297
Date: 31.07.2020 UDIN:20054297AAAADN2037

Annexure -"B" to the Independent Auditors' Report on the Standalone FinancialStatements

[Referred to in Paragraph 1 under 'Report on Other Legal and Regulatory Requirements'in the Independent Auditor's Report of even date to the Members of Virat Leasing Limitedon the Standalone Financial Statements for the year ended 31st March 2020].

(a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of property plant and equipment.

(b) The property plant and equipment are physically verified by the Managementaccording to a phased programme to cover all the items which in our opinion isreasonable having regard to the size of the Company and the nature of its assets. Theproperty plant and equipment has been physically verified by the Management during theyear and no material discrepancies have been noticed on such verification.

(c) The title deeds of immovable property as disclosed in Note no. 16 to the StandaloneFinancial Statements are held in the name of the Company.

ii. The Company is in the business of lending and Investments in shares &securities and consequently does not hold any Tangible Inventory. However Shares &Securities held as stock-in trade comprises the intangible inventory for the company. Theinventory comprises of securities held as stock-in trade are verified by the managementwith the confirmation Statements received from the depository on a regular basis. In ouropinion the frequency of such verification is reasonable. The Company is maintainingproper records of securities held as stock-in trade and no discrepancies were noticed oncomparing the statement from custodian with books of account.

iii. The Company has granted unsecured loans repayable on demand to companies and otherparties covered in the register maintained under section 189 of the Companies Act 2013.

(a) According to the information and explanations given to us and based on the auditprocedures conducted by us we are of the opinion that the terms and conditions of theaforesaid loans granted by the Company are not prejudicial to the interest of the Company.The Schedule of repayment of principal and payment of interest has been stipulated for theloans granted and the repayment is regular.

(b) The aforesaid loans are repayable on demand accordingly provision of Clause3(iii) (b) and (c) of the Order are not applicable to the Company.

iv. Based on information and explanations given to us in respect of loans andinvestments the Company has complied with the provisions of Section 185 and 186 of theCompanies Act as applicable.

v. The Company has not accepted any deposits from public within the meaning of sections73 to 76 or any other relevant provisions of the Companies Act 2013 and the rules framedthere under. Hence Clause (v) of the Order is not applicable.

vi. The Central Government has not prescribed the maintenance of cost records for anyof the products or services of the Company under Sub-section (1) of Section 148 of the Actand rules framed there under. Hence Clause (vi) of the Order is not applicable.

vii. (a) The Company is regular in depositing with appropriate authorities undisputedstatutory dues including Income tax provident fund employees state insurance Goods andServices tax cess and other statutory dues applicable to it and the extent of the arrearsof outstanding dues as on the last day of the Financial year concerned were not for aperiod of more than six months from the date they became payable. As informed theprovisions of provident fund employees state insurance and goods and services tax arecurrently not applicable to the Company.

(b) However according to information and explanation given to us the following dues ofIncome tax have not been deposited by the Company on account of disputes.

Name of Statute Nature of dues Amount under dispu te Period to which the amount relates Forum where dispute is pending
The Income Tax Act 1961 Income Tax and Interest Rs. 118530/- A.Y 2011-12 CIT (Appeals)
The Income Tax Act 1961 Income Tax and Interest Rs. 180990 A.Y 2012-13 CIT (Appeals)
The Income Tax Act 1961 Income Tax and Interest Rs. 601930/- A.Y 2014-15 CIT (Appeals)

viii. The Company has not taken any loans or borrowings from Financial institutionsbanks and government or has not issued any debentures. Hence reporting under clause 3(viii) of the Order is not applicable to the Company.

ix. According to the information and explanations given by the management the Companyhas not raised moneys by way of initial public offer or further public offer (includingdebt instruments) or term loans and hence reporting under clause 3 (ix) of the Order isnot applicable to the Company.

x. To the best of our knowledge and according to the information and explanations givento us no fraud by the Company and no material fraud on the Company by its officers oremployees has been noticed or reported during the year nor have we been informed of anysuch case by the Management.

xi. The Company has paid/provided managerial remuneration in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theAct.

xii. The Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicable toit the provisions of clause 3 (xii) of the Order are not applicable to the Company.

xiii. The Company has entered into transactions with related parties in compliance withthe provisions of Section 177 and 188 of the Companies Act 2013 where applicable. Thedetails of related party transactions have been disclosed in the Standalone FinancialStatements as required by the applicable accounting standard.

xiv. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year. Accordingly the provisions ofClause (xiv) of this Order are not applicable to the Company.

xv. The Company has not entered into any non-cash transactions with its Directors orpersons connected with him. Accordingly the provisions of Clause (xv) of the Order arenot applicable to the Company.

xvi. According to the information and explanations given to us the Company is a Nondeposit taking Systematically not important Non-Banking Financial Company and is dulyregistered under Section 45-IA of the Reserve Bank of India Act 1934.

For and on behalf of
CA Chandra Kumar Chandak
Proprietorship C.K. CHANDAK& CO
Place: Kolkata Membership Number: 054297 Chartered Accountants
Date: 31.07.2020 UDIN:20054297AAAADN2037 Firm Registration Number: 326844E

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