Independent Auditors Report on the Quarterly and Year to Date Audited Standalone
Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015, as amended
To
The Board of Directors of Arco Leasing Limited
Opinion
We have audited the accompanying statement of quarterly and year to date standalone
financial results of Arco Leasing Limited (the "Company") for the quarter and
year ended March 31, 2023 ("Statement"), attached herewith, being submitted by
the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015, as amended (the "Listing
Regulations").
In our opinion and to the best of our information and according to the explanations
given to us, the Statement:
i. is presented in accordance with the requirements of the Listing Regulations in this
regard; and
ii. gives a true and fair view in conformity with the applicable accounting standards
and other accounting principles generally accepted in India, of the net profit, other
comprehensive income and other financial information of the Company for the quarter and
year ended March 31,2023.
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, as amended ("the Act"). Our
responsibilities under those Standards are further described in the "Auditors
Responsibilities for the Audit of the Standalone Financial Results" section of our
report. We are independent of the Company in accordance with the Code of Ethics issued by
the Institute of Chartered Accountants of India together with the ethical requirements
that are relevant to our audit of the financial statements under the provisions of the Act
and the Rules thereunder, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the Code of Ethics. We believe that the audit
evidence obtained by us is sufficient and appropriate to provide a basis for our opinion.
Managements Responsibilities for the Standalone Financial Results
The Statement has been prepared on the basis of the standalone annual financial
statements. The Board of Directors of the Company are responsible for the preparation and
presentation of the Statement that gives a true and fair view of the net profit and other
comprehensive income of the Company and other financial information in accordance with the
applicable accounting standards prescribed under Section 133 of the Act read with relevant
rules issued thereunder and other accounting principles generally accepted in India and in
compliance with Regulation 33 of the Listing Regulations. This responsibility also
includes maintenance of adequate accounting 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 prudent; and the design,
implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the Statement that give a true
and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the Statement, the Board of Directors are responsible for assessing the
Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless the Board
of Directors either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the Standalone Financial Results
Our objectives are to obtain reasonable assurance about whether the Statement as a
whole is free from material misstatement, whether due to fraud or error, and to issue an
auditors report that includes our opinion. Reasonable assurance is a high level of
assurance but is not a guarantee that an audit conducted in accordance with SAs will
always detect a material misstatement when it exists. Misstatements can arise from fraud
or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of
the Statement.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Statement, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to
design 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 has
adequate internal financial controls with reference to financial statements in place and
the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by the Board of Directors.
• Conclude on the appropriateness of the Board of Directors use of the going
concern basis of accounting and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on the
Companys ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditors report to the
related disclosures in the financial results 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 auditors report. However, future events or conditions may cause the Company
to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the Statement,
including the disclosures, and whether the Statement represents the underlying
transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
Other Matters
The Statement includes the results for the quarter ended March 31,2023 being the
balancing figure between the audited figures in respect of the full financial year ended
March 31, 2023 and the published unaudited year-to-date figures up to the third quarter of
the current financial year, which were subjected to a limited review by us, as required
under the Listing Regulations.
For M.C. Jain & Co.
Chartered Accountants
(C.A. Vatsal Gohil)
Partner
Membership no. 146059
Firm Registration no. 304012E
Mumbai, May 25, 2023
UDIN : 23146059BGYANS3417
"ANNEXUKE A" TO THK INDEPENDENT AUDITORS REPORT
With reference to the Annexure A referred to in the Independent Auditors Report to the
members of Arco Leasing Limited on the standalone financial statements for the year ended
31 March 2023, we report the following:
i. a. As explained to us, there are no fixed assets owned by the company.
b. According to the information and explanation given to us, no proceedings have been
initiated or are pending against the company for holding any benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder during
the year.
ii. As explained to us, there are no inventories owned by the company.
iii. According to the information and explanations given to us and on the basis of our
examination of the books of account, the Company has not granted any loans, secured or
unsecured, to companies, firms, Limited Liability Partnerships or other parties listed in
the register maintained under Section 189 of the Companies Act, 2013. Consequently, the
provisions of clauses iii (a), (b) and (c) of the order are not applicable to the Company.
iv. In respect of loans, investments, guarantees, and security, provisions of section
185 and 186 of the Companies Act, 2013 have been complied with.
v. The Company has not accepted any deposits from the public and hence the directives
issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other
relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with
regard to the deposits accepted from the public are not applicable.
vi. As per information & explanation given by the management, maintenance of cost
records has not been specified by the Central Government under sub-section (1) of section
148 of the Companies Act, 2013.
vii. According to the information and explanations given to us, there is no amount
payable in respect of income tax, service tax, sales tax, customs duty, excise duty, value
added tax and cess whichever applicable, which have not been deposited on account of any
disputes.
viii. According to the information and explanation given to us, company has no
transactions, not recorded in the books of account have been surrendered or disclosed as
income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961);
ix. (a) In our opinion, the company has not defaulted in repayment of loans or other
borrowings or in the payment of interest thereon to any lender during the year;
(b) Company is not declared wilful defaulter by any bank or financial institution or
other lender;
(c) According to the information and explanation given to us, term loans were applied
for the purpose for which the loans were obtained;
(d) According to the information and explanation given to us, funds raised on short
term basis have not been utilised for long term purposes;
(e) According to the information and explanation given to us, the company has not taken
any funds from any entity or person on account of or to meet the obligations of its
subsidiaries, associates or joint ventures;
(f) According to the information and explanation given to us, the company has not
raised loans during the year on the pledge of securities held in its subsidiaries, joint
ventures or associate companies;
x. (a) The Company has not raised moneys by way of initial public offer or further
public offer (including debt instruments) during the year;
(b) According to the information and explanation given to us, the Company has not made
any preferential allotment or private placement of shares or convertible debentures
(fully, partially or optionally convertible) during the year
xi. (a) According to the information and explanation given to us, any fraud by the
company or any fraud on the company has not been noticed or reported during the year;
(b) According to the information and explanation given to us, no report under
sub-section (12) of section 143 of the Companies Act has been filed by the auditors in
Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with
the Central Government;
(c) According to the information and explanation given to us, no whistle-blower
complaints, received during the year by the company;
xii. The company is not a Nidhi Company. Therefore, clause 3 (xii) of the order is not
applicable to the company.
xiii. According to the information and explanations given to us, all transactions with
the related parties are in compliance with sections 177 and 188 of Companies Act, 2013
where applicable and the details have been disclosed in the Financial Statements etc. as
required by the applicable accounting standards.
xiv. The company does not have an internal audit system commensurate with the size and
nature of its business.
xv. According to the information and explanations given to us, we are of the opinion
that the company has not entered into any non-cash transactions with directors or persons
connected with him and accordingly, the provisions of clause 3(xv) of the Order is not
applicable.
xvi. According to the information and explanations given to us, we are of the opinion
that the company is not required to be registered under section 45-IA of the Reserve Bank
of India Act, 1934 and the company is not a Core Investment Company (CIC) as defined in
the regulations made by the Reserve Bank of India, accordingly the provisions of clause
3(xvi) of the Order are not applicable;
xvii. The company has made a profit after tax of Rs.6.54 lacs in the financial year as
compared to a loss of Rs. 12.33 lacs in the immediately preceding financial year
xviii. There has been no instance of any resignation of the statutory auditors occurred
during the year
xix. No material uncertainty exists as on the date of the audit report that company is
capable of meeting its liabilities existing at the date of balance sheet as and when they
fall due within a period of 1 year from the balance sheet date
xx. The provisions of Section 135 towards corporate social responsibility are not
applicable on the company. Accordingly, the provisions of clause 3(xx) of the Order is not
applicable.
xxi. There are no any qualifications or adverse remarks given by the respective
auditors in the Companies (Auditors Report) Order (CARO) reports, hence this clause is
not applicable to the company.
For M.C. Jain & Co.
Chartered Accountants
(C.A. Vatsal Gohil)
Partner
Membership no. 146059
Firm Registration no. 304012E
Mumbai, May 25, 2023
UDIN : 23146059BGYANS3417
+91-9892691696
