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Yule Financing & Leasing Co Ltd.

BSE: 511495 Sector: Financials
NSE: N.A. ISIN Code: INE490C01011
BSE 05:30 | 01 Jan Yule Financing & Leasing Co Ltd
NSE 05:30 | 01 Jan Yule Financing & Leasing Co Ltd

Yule Financing & Leasing Co Ltd. (YULEFINLEA) - Auditors Report

Company auditors report

To

The Members of

YULE FINANCING & LEASING CO. LTD.

Standalone Report on the Financial Statements

We have audited the accompanying standalone financial statements of YULE FINANCING& LEASING CO.LTD. ('The Company') which comprise the Balance Sheet as at 31stMarch 2017 the Statement of Profit and Loss and Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ('the Act') with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial standalone statementsbased on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those standards require that we comply with ethicalrequirements and plan arid perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on Whether the company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the companyas at 31 st March 2017 and its loss and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 (the Order) issued bythe Central Government of India in terms of section 143(11) of the Companies Act 2013 wegive in the Annexure A statement on the specified in paragraphs 3 and 4 of the orderapplicable.

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 proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;

c. the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;

d. in our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules2014

e. on the basis of the written representations received from the Directors as on

31stMarch 2017 and taken on record by the Board of Directors none of the Directors isdisqualified as on 31st March 2017 from being appointed as a Director in terms of Section164(2) of the Act. .

f. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in Annexure B and

g. With respect to the other matter to be included in Auditors Report in accordancewith Rule of the Companies (Audit and Auditors)Rule 2014 in our opinion and to the best ofour information and according to the explanations given to us :

i) The Company has disclosed the impact off pending litigations on its financialposition its financial statement.

ii) The Company does not have any long term contracts including derivative contractsfor which there will be any material foreseeable losses.

iii) There is no amount required to be transferred to the Investor Education andProtection Fund by the Company.

For Nandy Haider & Ganguli
Chartered Accountants
Firm's Registration No. - 302017E
S.N. Bandyopadhyay
Place: Kolkata Partner
Date: 30.05.2017 Membership No. 052246

ANNEXURE A TO THE AUDITOR S REPORT

The Annexure referred to in our Independent Auditor's Report to the members of thecompany on the standalone the financial statements for the year ended 31st March 2017 wereport that;

(i) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. The written down value of fixed assetsbeing insignificant prescribed verification has not been done by the management.

(ii) The Company being a servicecompany does not hold any physical inventory. Thusparagraph 3(ii) is not applicable to the Company.

(iii) The Company has not granted any loans secured or unsecured to companies firmsor other parties covered in the register maintained under section 189 of the CompaniesAct.

(iv) In our opinion and according to the information and explanations given to us theCompany has not granted any loans to directors and not made any loan and investment by thecompany under sections 185 and 186 of the companies Act 2013

(v) The Company has not accepted any deposits during the year from the public.

However the directives issued by RBI and the provisions of sections 58A (U/s 73 &76 of Companies Act 2013) and 58AA of the Companies Act1956 and other relevantprovisions of the Act and rules framed thereunder have not been complied with in so far asit relates to the repayment of principal and interest thereon. The orderpassed by theCompany Law Board has also not been complied with. The Company however has preferred anappeal to Hon'bl High Court for revision. Hon'bl High Court has disposed of the Companiesappeal directing CLB to rehear the matter. The order from CLB is still awaited (referitems (b) & (c) of Note 2).

(vi) The Central Government has not prescribed under section 148(1) of the CompaniesAct to the company for maintenance of cost records.

(vii) According to the records of the Company the Company is generally regular indepositing the undisputed statutory dues like Provident Fund Employees' State InsuranceWealth Tax Income Tax Customs Duty Sales Tax Service Tax Cess and other Statutorydues with the appropriate authorities. There were no undisputed statutory dues outstandingfor a period of more than 6 months from the date they became payable as at year-end.

b) According to the records of the company and information and explanations given to usthere are dues of Income Tax and Sales Tax amounting to Rs45758453 and Rs560716respectively which have not been deposited on account of various disputes which are underconsideration of Appellate Authority the details of which are set out in note (d) ofNotes on Accounts -2.

Viii) The Company does not have any loan dues from any financial institution or banktherefore question of any default does not arise

ix) According to the information and explanations given to us the Company has notraised any money or taken any Term Loan during the year. Hence the question does notarise.

x) According to the information and explanations given to us no material fraud on orby the company has been noticed or reported during the course of our audit.

xi) In our Opinion and according to the information and explanations given to us theCompany has not paid/provided managerial remuneration section 197 read with schedule V tothe Companies Act 2013.

xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of theorder is not applicable.

xiii) According to the information and explanations given to us the provisions are notapplicable under section 177. However details of related party transactions under section188have been disclosed in the financial statements as required by the applicableaccounting standards.

xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause (xiv) of the order is not applicable to the Company.

xv) In our opinion and according to the information and explanations given to us duringthe year the Company has not entered into any non-cash transaction with its director ordirectors of its holding subsidiary or associate Company or person connected with themand hence provisions of section 192 of the Companies Act 2013 are not applicable.

xvi) The registration under section 45 1A of the Reserve Bank India Act 1934 has sincebeen cancelled.

For Nandy Haider & Ganguli
Chartered Accountants
Firm's Registration No. - 302017E
S.N. Bandyopadhyay
Place: Koikata Partner
Date: 30.05.2017 Membership No. 052246

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT

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

We have audited the internal financial controls over financial reporting of YULEFINANCING & LEASING CO. LTD. (The Company") as of March 312017 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat 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 over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of the Internal Financial Controls over Financial Reportingissued by The Institute of Chartered Accountants of India (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to Company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

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 systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditure of the Company are being made only in accordance with authorisations of theManagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of theCompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control.

For Nandy Haider & Ganguli
Chartered Accountants
Firm's Registration No. - 302017E
S.N. Bandyopadhyay
Place: Kolkata Partner
Date: 30.05.2017 Membership No. 052246

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