| We have audited the attached Balance sheet of K. Z. Leasing & Finance
Ltd. As on the 31/03/2014 and also the Profit & loss A/c / Cash Flow
Statement of the company for the year ended on that date annexed there
to. There is financial statement are the responsibility of the company
management. our responsibility is to express an opinion on these
financial statement based on our audit.
We conduct our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
are free of material misstatements. An audit includes examining, on a
test basis, evidence supporting the amount and disclosures in the
financial statements. An audit also include assessing the accounting
principles used and significant estimates made by management as well as
evaluating the overall financial statement presentation. we believe
that our audit provides a reasonable basis for our opinion.
As required by the companies ( Auditors Report ) order, 2004 issued by
the central Government in terms of section 227( 4A ) of the companies
Act, 1956, we give in the Annexure a Statement on the Matters specified
4 & 5 if the said order.
Further to our comment in the Annexure referred to in the above
paragraph, we report that
( A ) We have obtained all the information and explanations which to
the best of our knowledge and belief were necessary for the purpose of
our audit.
( B ) In our opinion, proper books of accounts and cash flow statement,
as required by low have been kept by the Company so as far it appears
from our examination of the books.
( C ) The Balance sheet and Profit and loss account and cash flow
statement dealt with by this report are in agreement with the books of
Account.
( D ) In our opinion the balance sheet and the profit & loss account
comply with the accounting standards referred to in sub - section (3C)
of section 211 of the companies Act. 1956. Except accounting standard
28 (Impairment of assets), AS-22 (Tax on Income) and AS-18 (Related
party discloser).
( E ) On the basis of written representations received from the
directors as on 31/03/2014 and taken on record by the board of
directors, we report that none of the directors are disqualified as on
31/03/2013 from being appointed as a director in terms of clause (g) of
sub section (1) of section 274 of the companies Act. 1956
Subject to the foregoing, in our opinion and to the best of our
information and according to the explanations given to us, the said
balance sheet and profit & loss account read together with notes
thereon, give the information required by the companies Act. 1956. in
the manner so required and give a true & fair view in conformity with
the accounting principles generally applicable in India:
1 ) In case of the balance sheet, of the state of affairs of the
company as at March 31,2014 and
2 ) In case of Profit & loss account of the Profit(Previous year's
loss) for the year ended on that date.
3 ) In case of cash flow Statement of the company for the year ended on
that date.
1. In Respect of Fixed Assets
a. The Company is maintained proper records showing full particulars,
including quantitative details and situation of fixed assets;
b. as explained to us, these fixed assets have been physically verified
by the management at reasonable intervals: no discrepancies were
noticed on such verification.
c. In our opinion the company has not disposes off a part of fixed
assets during the year. Which will affect he going concern of the
company.
2. In Respects Of Its Inventories.
a. Physical verification of Inventory has been conducted at reasonable
interval by the management.
b. The procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
company and nature of business.
c. The company is maintaining proper records of inventory. There were
no material discrepancy noticed on physical verification.
3. In Respect of loan, secured or unsecured, granted or taken by the
company to/from companies,
Firm or other parties, covered in the register Maintain under section
301 of the companies ACT 1956;
a. According to the information and explanation given to us. The
company has not granted / taken any loans, secured or unsecured, to /
from companies, firms, or other parties covered under section 301 of
the Companies Act. 1956 except deposits accepted from promoters.
b. As stated by management the rate of interest and other terms and
conditions of the unsecured loan taken by the company are prima facie
not prejudicial to the interest of the company.
c. Payment of the principal amount and interest are also regular repaid
and repayable on demand.
d. There is no overdue amount in respect of loan taken by the company.
In respect of loans given by the company, these are repayable on demand
and therefore the question of overdue amount does not arise.
4. In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of fixed assets and also for the sale of
shares.
5. In respect of the transactions covered under section 301 of the
companies Act. 1956;
a. In our opinion and according to the information and explanation
given to us, there are no transactions that need to be entered in to
the registered maintained under Section 301 of the Companies Act. 1956
except deposits accepted from promoters.
6. The Company has not accepted any deposits form the public.
7. In our Opinion, the internal audit system of the company is
commensurate with its size and nature of its business.
8. As this company is in the business of finance and therefore cost
records under section 209( 1 ) ( d ) does not arises.
9. In respect Of Statutory Dues
a. according to information and explanation given to us the company is
regular in depositing undisputed statutory dues including Provident
Fund, Investor, Education and Protection Fund, Employees State
Insurance, Income Tax, sales Tax, Wealth Tax, Custom Duty, Excise Duty,
cess and any other statutory dues with the appropriate authorities.
10. The company has accumulated Profit and has not incurred any cash
losses during the financial year covered by our audit or in the
immediately preceding financial year.
11. Based on our audit procedures and according to the information and
explanation given to us, we are of the opinion that the company has not
defaulted in repayment of dues to financial institutions, banks or
debenture holders.
12. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the company on
the basis of security by way of pledge of shares. Debenture and other
securities.
13. As explained to us, it is the company's intention to make
investments on a long term basis and therefore it is not dealing or
trading in shares, securities, debenture and other investments,
company's has made trading in shares.
14. The company has maintained proper records of transactions and
contracts in respect of trading in securities, debentures and other
investments and timely entries have been made therein. All shares,
debentures and other investments have been held by the company in its
own name.
15. According to information and explanation given to us. The company
has not given any guarantee for loans taken by others from bank of
finance institutions.
16. According to information and explanation given to us. The company
has not raised any term loan during the year under review and hence
question of its application does not arise.
17. According to information and explanation given to us and on an
overall examination of the balance sheet of the company there is proper
utilization of all short term and long term resources and as per
objects of the company.
18. During The Year, the company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under section 301 of the companies Act. 1956.
19. According to the information and explanation given to us there is
no debenture issue therefore this clause is not applicable.
20. The Company has not raised any money by the way of public issue
during the year.
21. In our opinion and according to the information and explanations
and given to us, no fraud on or by the company has been noticed or
reported during the year, that causes the financial statements to be
materially misstated.
22. The board of Directors has passed a resolution on dated. 30/08/2002
for the non acceptance of public deposits.
23. The company has not accepted public deposit and old deposits (
except from promoter and relative ) were repaid.
24. The Company has complied with the prudential norms relating to
income recognition, accounting standards, asset classification and
provisioning for bad and doubtful debts as applicable to it.
25. Capital Adequacy
(a) The capital adequacy ratio as disclosed in the return submitted to
the bank in from (NBS -1,2,3) has been an correctly arrived at and find
ratio is in compliance with the minimum CRAR Prescribed by the bank.
(b) The Company has furnished to the bank the annual statement as
capital funds, risk assets/exposures and risk asset ratio ( NBS 1,2,3 )
within the stipulated period.
26. The company has received registration as provided in section 45IA
of the Reserve bank Of India Act. 1934.
Place : Ahmedabad For, J. M. Patel & Bros.
Date : 22-05-2014 Chartered Accountants
J. M. Patel
(Proprietor)
FR NO.107707W |