You are here » Home » Companies ยป Company Overview » Virat Leasing Ltd

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
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
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 OF VIRAT LEASING LIMITED

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of Virat Leasing Limited("the Company") which comprise the Balance Sheet as at March 31 2022 theStatement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year then ended and notes tothe financial statements including a summary of significant accounting policies and otherexplanatory information (hereinafter referred to as "the Financial Statements")

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 31 2022 and total comprehensiveincome (comprising of Net profit and other comprehensive income) changes in equity andits cash flows for the year then ended.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Companies Act 2013. Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the Financial Statements section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia ("the ICAI") together with the ethical requirements that are relevant toour audit of the financial statements under the provisions of the Act and the Rules madethere under and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the ICAI's Code of Ethics. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter

We draw your attention to Note 5.15 to the financial statements whichexplains the uncertainties and management's assessment of the financial impact due to theCovid-19 pandemic for which a definitive assessment of the impact is dependent uponfuture economic conditions.

Our opinion is not modified in respect of these above matters.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current period.These matters were

addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. We have determined the matters described below to be the key audit mattersto be communicated in our report.

Description of Key Audit Matter

Provision for expected credit losses (ECL) on loans (refer note no5.4(f) note no 10 and

35(1) of the financial statements

Sr. Key Audit Matter No. 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: 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.
Timely identification and classification of the impaired loans. 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 arid 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 The estimation of Expected Credit Loss (ECL) on financial instruments involve significant judgments and estimates. Following are points with increased level of audit focus: 3) We evaluated the operating effectiveness of controls across the process relevant to ECL including the judgments and estimates.
> 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 regulatoiy circulars. 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.
> Accounting interpretations assumptions and data used to build the models; 5) We tested the completeness of loans and advances included in the Expected Credit Loss calculations as of March 312021 by reconciling it with the balances as per loan balance register as on date.
> 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 6) We tested assets on sample basis to verify that they were allocated to the appropriate stage.
> 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. 7) For samples of exposure we tested the appropriateness of determining EAD PD arid LGD
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. 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 estimates the PD based on historical observed default rates adjusted for forward looking estimates based upon macroeconomic developments occurring in the economy and market it operates in.
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 macroeconomic 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.
10) We assessed the adequacy and appropriateness of disclosures in compliance with accounting standards in relation to judgements used in estimation of ECL provisions.

Statutory and Legal Matters (Refer Note no. 31(lHc)

Sr. Key Audit Matter No. How the matter was addressed in our audit
2. 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 Our audit procedures include;
appointed M/ s BDO India LLP Chartered Accountants to carry out the forensic audit of the Company. Further forensic auditors issued their report dated March 11 2020 to which the company has filed its response to the exchange and the matter is sub-judice as on March 31 2022 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 110111716 High Court at Kolkata.
3) We communicated with the Management and those charged with Governance with respect to this matter and the Company has been generally regular in replying to all the queries raised and all the documents sought by the Exchange (BSE) and by the forensic auditors. We examined the forensic audit report issued by M/ s BDO India LLP on March 112020 and the company has filed its response and objections with the Exchange (BSE Ltd) against the findings of the forensic auditors vide their forensic audit report dated March 112020

Information other than the Financial Statements and Auditor's Reportthereon

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the Management'sDiscussion arid Analysis Board's Report including Annexure to Board's Report CorporateGovernance Report included in the Company's annual report but does not include thefinancial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the otherinformation arid we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained during the course of our audit or otherwise appears to be materiallymisstated.

If based on the work we have performed; we conclude that there is amaterial misstatement of this other information; we are required to report that fact. Wehave nothing to report in this regard.

Management's Responsibility and those charged with governance for theFinancial Statements

The Company's Board of Directors are responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these financial statementsthat give a true and fair view of the financial position financial performance changesin equity and cash flows of the Company in accordance with the Indian Accounting Standards(Ind AS) specified under Section 133 of the Act and other accounting principles generallyaccepted in India This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safe guarding of the assets ofthe Company and for preventing and detecting frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of adequateinternal financial controls that were

operating effectively for ensuring the accuracy arid 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 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.

The Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether thefinancial 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 financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of thefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial control system in place and theoperating effectiveness of such controls.

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

• Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the financialstatements that individually origin aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in

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

(ii) to evaluate the effect of any identified misstatements in thefinancial statements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding airy significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould 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 2020("the Order") issued by the Central Government in terms of Sectionl43(ll) of theAct we give in the "Annexure B" a statement on the matters specified inparagraph 3 and 4 of the order to the extent applicable.

2) As required by Section 143(3) of the Act we report that:

a) We have sought and obtained all the infonnation and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

b) In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of profit and loss (including othercomprehensive income) the Statement of Changes in Equity and the Statement of cash flowdealt with by this Report are in agreement with the relevant books of account.

d) In our opinion the aforesaid financial statements comply with theAccounting Standards specified under Section 133 of the Act.

e) On the basis of the written representations received from thedirectors taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2022 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 withreference to financials statements of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Aimexure A".

g) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Amendment Rules2021 effective from 01st April 2021 in our opinion and to best of ourinformation and according to the explanations given to us:

a) The Company did not have any pending litigations as at March 312022 which may effect on its financial position.

b) The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses during the yearended March 31 2022.

c) During the year no amounts were required to be transferred to theInvestor Education and Protection Fund by the Company so the question of delay intransferring such sums does not arise.

d) Omitted by the Companies (Audit and Auditors) Amendment Rules 2021effective from 01st April 2021

e) (i) The Management has represented that to the best of itsknowledge and belief as disclosed in Note 37(1)(15)(A) to the financial statements nofunds have been advanced or loaned or invested (either from borrowed funds or sharepremium or any other sources or kind of funds) by the Company to or in any other person(s)or entity(ies) including foreign entities ("Intermediaries") with theunderstanding whether recorded in writing or otherwise that the Intermediary shalldirectly or indirectly lend or invest in other persons or entities identified in anymanner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") orprovide any guarantee security or the like on behalf of the Ultimate Beneficiaries.

(ii) The Management has represented that to the best of its knowledgeand belief as disclosed in Note 37(1)(15)(B) to the financial statements no funds havebeen received by the Company from any person(s) or entity(ies) including foreign entities("Funding Parties") with the understanding whether recorded in writing orotherwise that the Company shall directly or indirectly lend or invest in other personsor entities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries.

(iii) Unmodified Opinion: Based on the audit procedures performed thathave been considered reasonable and appropriate in the circumstances nothing has come toour notice that has caused us to believe that the representations under sub-clause (i) and(ii) of Rule 11(e) contain any material mis-statement.

f) No dividends were declared or paid during the year by the Companyhence compliance with Section 123 of the Companies Act 2013 is not applicable

3) With respect to the matter to be included in the Auditor's Reportunder Section 197(16) of the Act:

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

Annexure - A to the Independent Auditors' Report

With reference to the Annexure A referred to paragraph 2 (f)underReport on Other Legal and Regulatory Requirements of the Independent Audit Report ofeven date to the members of the Company on the financial statements as on and for the yearended March 31 2022 we report the following:

Report on the Internal Financial Controls with reference to FinancialStatements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013(the "Act")

We have audited the internal financial controls with reference tofinancial statements of VIRAT LEASING LIMITED ("the Company") as of March 312022 in conjunction with our audit of the financial statements of the Company for the yearended on that date.

Management's Responsibility for Internal Financial Controls

The Company's Management and the Board of Directors of the Company areresponsible for establishing and maintaining internal financial controls based on theinternal financial controls with reference to financial statements criteria established bythe Company considering the essential component of stated in the Guidance Note issued bythe Institute of Chartered Accountants of India. These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the 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 and the Standards on Auditing prescribed under Section 143(10) of theCompanies Act2013 to the extent applicable to an audit of internal financial controlswith reference to financial statements. Those Standards and the Guidance Note require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls with reference to standalonefinancial statements were established and maintained and whether such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls with reference to financial statements andtheir operating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of such internal financialcontrols assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effective internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols with reference to financial statement.

Meaning of Internal Financial Controls with reference to FinancialStatements.

A company's internal financial control with reference to financialstatement is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of financial statements for external purposesin accordance with generally accepted accounting principles. A company's internalfinancial control with reference to financial statement includes those policies andprocedures that:-

(i) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;

(ii) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorizations of management arid directors of thecompany; arid

(iii) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assets thatcould have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with Reference toFinancial Statements

Because of the inherent limitations of internal financial controls withreference to financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurarid not be detected. Also projections of any evaluation the internal financial controlswith reference 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 adequateinternal financial controls with reference to financial statements and such internalfinancial controls with reference to financial statements were operating effectively as atMarch 31 2022 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 'Guidance Note').

Annexure - B to the Independent Auditors' Report

Referred to in paragraph 1 of the Independent Auditor's Report of evendate to the members of Virat Leasing Limited Company on the financial statements as of andfor the year ended March 31 2022 we report the following:

i. In respect of the Company's Property plant and equipment:

(a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of property plant and equipment. Further theCompany does not have intangible assets.

(b) The Company has physically verified all the major property plantand equipment as per phased program of verification hi our opinion the periodicity ofphysical verification is reasonable having regard to the size of the Company and thenature of its assets. The discrepancies reported on such verification were not materialand have been properly dealt in the books of accounts.

(c) According to the information and explanations given to us and therecords examined by us and based on the examination of the records/ deeds provided to uswe report that the title deeds of all the immovable properties other than self-constructedimmovable properties (Office Building) are held in the name of the Company.

(d) The Company has not revalued any of its Property plant andequipment during the year

(e) According to the information and explanations given to us and onthe basis of our examination of the records of the Company and as stated in Note no 33 (1)to the standalone financial statements no proceedings have been initiated or are pendingagainst the Company for holding any benami property under the Benami Transactions(Prohibitions) Act 1988 (45 of 1988) and rules made there under

ii (a) The Company is in the business of providing loans makinginvestments in shares and securities and does not have any physical inventories.Accordingly reporting under clause (ii) (a) of the Order is not applicable.

(b) In our opinion and according to the information and explanationsgiven to us at any point of time of the year the Company has not been sanctioned workingcapital limits in excess of five crores in aggregate from banks or financialinstitutions on the basis of security of currents assets and hence reporting under clause(ii) (b) of the Order is not applicable.

Hi (a)Since the Company's principal business is to give loans theprovisions of clause

(iii) (a) of the Order are not applicable to it.

(b) In our opinion and according to the information and explanationsgiven to us the investments made and the terms and conditions of the grant of loans andadvances in the nature of loans provided are prima facie not prejudicial to theCompany's interest

(c) In our opinion and according to the information and explanationsgiven to us in respect of loans and advances in the nature of loans the loans arerepayable on demand and schedule of payment of interest has been stipulated and repaymentsor receipts are regular during the year

(d) In our opinion and according to the information and explanationsgiven to us no amount is overdue in respect of loans and advances in the nature of loans.

(e) Since the Company's principal business is to give loans theprovisions of clause (iii) (e) of the Order are not applicable to

(f) In our opinion and according to the information and explanationsgiven to us the Company has granted loans or advances in the nature of loans to Relatedparties (as defined in Section 2(76) of the Act) which are repayable on demand. Requireddetails in respect thereof are as follows:

Particulars All parties Promoters Related Parties
Aggregate number of loans / advances in nature of loans 99452.86 Nil 25266.23
Repayable on demand (A)
Agreement does not specify any terms or period of repayment (B) Nil Nil Nil
Total (A) + (B) 99452.86 Nil 25266.23
Percentage of loans/advances in nature of loans to the total loans 100% Nil 25.41%

iv. In our opinion and according to the information and explanationsgiven to us the Company has complied with the applicable provisions of Sections 185 and186 of the Act with respect to the loans given and investments made. Further the Companyhas not given guarantees or provided security.

v. In our opinion and according to the information and explanationsgiven to us the Company has not accepted any deposits from public within the meaning ofsections 73 to 76 or any other relevant provisions of the Companies Act 2013 and therules framed there under arid hence reporting under clause (v) of the Order is notapplicable.

vi. The maintenance of cost records has not been prescribed for theactivities of the Company by the Central Government under Section 148(1) of the CompaniesAct 2013.

vii. a) The Company is generally regular in depositing with appropriateauthorities undisputed statutory dues including Income Tax provident fund employeestate insurance Goods and Services Tax and other statutory dues as may be applicable toit and the extent of the arrears of outstanding Statutory dues as on the last day of thefinancial year concerned were not for a period of more than six months from the date theybecome payable.

As informed the provisions of provident fund employee state insuranceand Goods and Services Tax are currently not applicable to the Company b)In our opinionand according to the information and explanations given to us there are no statutory dueswhich have not been deposited with the appropriate authority on account of any dispute.

viii In our opinion and according to the information and explanationsgive to us and on the basis of our examination of the records of the Company we confirmthat we have not come across any transactions recorded in the books of account whichreflected income surrendered or disclosed during the year in the tax assessments under theIncome Tax Act 1961. Refer note no 37 (1) financial statements.

ix. (a) In our opinion and according to the information andexplanations given to us and on the basis of our examination of the records of theCompany the Company has not defaulted in repayment of loans or other borrowings or inpayment of interest thereon to any lender or financial institutions during the year. TheCompany does not have airy borrowings from banks or from Government.

(b) According to the information and explanations given to us and onthe basis of our audit procedures we report that the Company has not been declared wilfuldefaulter by any bank or financial institution or government or any government authorityor any other lender. Refer Note No. 37(1) to the Financial Statements.

(c) The Company has neither taken any term loan during the year northere are unutilized term loans at the beginning of the year; hence reporting underclause (ix)(c) of the Order is not applicable.

(d) According to the information and explanations given to us and theprocedures performed by us and on an overall examination of the financial statements ofthe Company we report that no funds raised on short-term basis have prima facie beenused for long term purposes by the Company.

(e) According to the information and explanations given to us and on anoverall examination of the financial statements of the Company we report that the Companyhas not taken any funds from any entity or person on account of or to meet the obligationsof its subsidiaries. The Company does not have any subsidiaries joint ventures orassociates.

(f) According to the information and explanations given to us andprocedures performed by us we report that the Company has not raised loans during theyear on the pledge of securities held in its subsidiaries. The Company does not have anysubsidiaries joint ventures or associates.

x. (a) In our opinion and according to the information and explanationsgiven to us the Company has not raised moneys by way of initial public offer or furtherpublic offer including debt instruments or term loans and hence reporting under thisclause of the Order is not applicable to the Company

(b) The Company has not made any preferential allotment or privateplacement of shares or convertible debentures during the year xl a) To the best of ourknowledge and according to the information arid explanations given to us no fraud by theCompany or no material fraud on the Company by its officers or employees has been noticedor reported during the year.

(b) There is no instance during the year under consideration thatnecessitates reporting in Form ADT-4

(c) There are no instances of whistle-blower complaints received duringthe year by the Company.

xiL In our opinion and according to the information and explanationsgiven to us the Company is not a Nidhi company. Accordingly reporting under clause (xii)of the Order is not applicable to the Company.

xiii In our opinion and according to the information and explanationsgiven to us the Company is in compliance with the provisions of Section 177 arid Section188 of the Companies Act 2013 where applicable for all transactions with the relatedparties and the details of the related party transactions have been disclosed in thefinancial statements as required by the applicable Accounting Standards.

xiv. (a) In our opinion and based on our examination the Company hasart internal audit system commensurate with the size and nature of its business. TheCompany has engaged a firm of Chartered Accountants to carry out internal audit and whosubmit their report to the Audit Committee and to the Board of Directors

(b) The reports of the internal auditors for the period under audithave been considered by us.

xv. In our opinion and according to the information and explanationsgiven to us during the year the Company has not entered into any non-cash transactionswith its directors or persons connected with them

xvi (a) In our Opinion the Company being a non-deposit takingnon-systematically important Non-Banking Financial Company and is required to beregistered under Section 45-IA of the Reserve Bank of India Act 1934 and the Company hasduly obtained the required registration.

(b) The Company has not conducted any Non-Banking Financial or HousingFinance activities without a valid Certificate of Registration (CoR) from the Reserve Bankof India as per Reserve Bank of India Act 1934.

(c) The Company is not a Core Investment Company (CIC) as defined inthe Regulations made by the Reserve Bank of India hence Para 3(xvi)(c) arid Para 3(xvi)(d)of the Order is not applicable to the Company

xvii The Company has not incurred any cash losses in the financial yearand in the immediately preceding financial year.

xviii There has been no resignation of the Statutory Auditors of theCompany during the year.

xix. According to the information and explanations given to us and onthe basis of the financial ratios ageing and expected dates of realization of financialassets and payment of financial liabilities other information accompanying the financialstatements our knowledge of the Board of Directors and management plans and based on ourexamination of the evidence supporting the assumptions nothing has come to our attentionwhich causes us to believe that any material uncertainty exists as on the date of theaudit report that company is not capable of meeting its liabilities existing at the dateof balance sheet as and when they fall due within a period of one year from the balancesheet date. We however state that this is not air assurance as to the future viabilityof the company. We further state that our

reporting is based on the facts up to the date of the audit report andwe neither give any guarantee nor any assurance that all liabilities falling due within aperiod of one year from the balance sheet date will get discharged by the company as andwhen they fall due.

xx. The Provisions of Section 135 of the Companies Act 2013 is notapplicable to the Company hence reporting under {Para 3(xx)(a)} and {Para 3(xx)(b)} ofthe Order is not applicable to the Company.

xxi. The Company does not have any subsidiaries or associates or jointventures the accounts of which are to be consolidated arid as such there are noconsolidated financial statements. Hence reporting under {Para 3(xxi}of the Order is notapplicable to the Company.

For and on behalf of
C.K. Chandak & Co.
Chartered Accountants
Firm Registration Number: 326844E
Sd/-
CA Chandra Kumar Chandak
Proprietor
Membership Number: 054297
UDIN: 22054297AJWYAB8597
Place: Kolkata
Date: 30th May 2022

.