| We have audited the accompanying financial statements of Nalin Lease
Finance Limited ("the Com- pany"), which comprise the Balance Sheet as
at March 31, 2015, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibilities for the Financial Statement
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate ac- counting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and pru- dent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, rel- evant to the preparation
and presentation of the financial statements that give a true and fair
view and are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclo- sures in the financial statements. The
procedures selected depend on the auditor's judgment, includ- ing the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the ac- counting estimates made by the Company's Directors, as well
as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of non provision of
Diferred Tax as per "Significant Accounting Policy - Notes 1(VI)", the
financial statements give the information required by the Act in the
manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
b) in the case of the Profit and Loss Account, of the profits for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal & Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, based on information and
explanations given to us , we give in the Annexure a statement on the
matters specified in paragraphs 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 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 account as required by law have been
kept by the Company 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 with by this Report are in agreement with the books of
account.
d) except for the effects of non provision of Differed Tax as per
"Significant Accounting Policy - Notes 1(VI) in our opinion, the
Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement
comply with the Accounting Standards referred to in section 133 of the
Companies Act, read with Rule 7 of the Companies (Accounts) Rules,
2014;
e) on the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of section 164 (2) of the Act; and
f) With respect to the other matters to be included in Auditor's Report
in accordance with Rule 11 of the Companies ( Audit and Auditors)
Rules,2014 in our opinion and to the best of our information and
according to the explanations given to us:
(i) The Company does not have any pending litigation which would impact
its financial positions.
(ii) The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
(iii) There were no amounts that were required to be transferred to the
Investor Education and Protection Fund by the Company.
Annexure to the Independent Auditors' Report
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the financial statements for the year ended 31
March 2015, we report that:
3 (i) (a) The Company has maintained proper records showing full
particulars, including quan- titative details and situation of fixed
assets.
3 (i) (b) The Company has a regular programme of physical verification
of its fixed assets by which fixed assets are verified in a phased
manner over a period of three years. In accordance with this programme,
certain fixed assets were verified during the year and no material
discrepancies were noticed on such verification. In our opin- ion, this
periodicity of physical verification is reasonable having regard to the
size of the Company and the nature of its assets.
3 (ii) The Company is a finance company and it does not hold any
physical inventories except stationery. Hence paragraph 3(ii) of the
Order is not applicable
3 (iii) The Company has not granted loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act, 2013 ('the Act'). Hence we do
not have any comments under this para.
3 (iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of Its business with regard
to purchase of fixed assets and financing busi- ness. The activities of
the Company do not involve purchase of inventory and the sale of goods.
We have not observed any major weakness in the internal control system
during the course of the audit.
3 (v) The Company has not accepted any deposits from the public.
3 (vi) The Central Government has not prescribed the maintenance of cost
records under section 148(1) of the Act.
3 (vii)(a) According to the information and explanations given to us
and on the basis of our examination of the records of the Company,
amounts deducted / accrued in the books of account in respect of
undisputed statutory dues including provident fund, income tax, sales
tax, wealth tax, service tax, duty of customs, value added tax, cess
and other material statutory dues ( Whichever is applicable) have been
regularly de- posited during the year by the Company with the
appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, income tax,
sales tax, wealth tax, service tax, duty of customs, value added tax,
cess and other material statutory dues were in ar- rears as at 31 March
2015 for a period of more than six months from the date they became
payable.
3 (vii)(b) According to the information and explanations given to us,
there are no material dues of wealth tax, duty of customs and cess,
income tax , sales tax , service tax and vat which have not been
deposited with the appropriate authorities on account of any dispute.
3 (vii)(c) According to the information and explanations given to us
there is no amount which were required to be transferred to the
investor education and protection fund in accor dance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules made there
under.
3 (viii) The Company has neither incurred cash losses nor does have
accumulated losses ex- ceeding 50% of net worth at the end of the
financial year.
3 (ix) The Company did not have any outstanding dues to financial
institutions, banks or debenture holders during the year.
3 (x) In our opinion and according to the information and the
explanations given to us, the Company has not given any guarantee for
loans taken by others from banks or financial institutions.
3 (xi) The Company has availed O.D. required to be reduced every year
which may be con- sidered term loan. The said loan is applied for the
purpose for which it was sanctioned.
3 (xii) According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
Place : Himatnagar
Date : 16/05/2015
|