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|
|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|
TO THE MEMBERS VIRAT LEASING LIMITED
REPORT ON THE AUDIT OF THE STANDALONE IND AS FINANCIAL STATEMENTS
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)
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)
Statutory and Legal Matters (Refer Note no. 35(3)(c):
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.
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.
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.
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
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.
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.