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 31st
March, 2017, 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.
Managements Responsibility for the Financial Statements
The Companys 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 accounting records in accordance with
the provisions of the Act for safeguarding 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
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 financial statements that
give a true and fair view and are free from material misstatement, whether due to fraud or
error.
Auditors Responsibility
Our responsibility is to express an opinion on these financial standalone 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 thereunder.
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 arid 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
disclosures in the financial statements. The procedures selected depend on the auditors
judgment, including 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 Companys preparation of the
financial statements that give a true and fair view in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on Whether the company has in place an adequate internal financial controls system
over financial reporting and the operating effectiveness of such controls. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness
of the accounting estimates made by the Companys 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 standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us the aforesaid standalone 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 of the state of affairs of the company
as 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 (Auditors Report) Order, 2016 (the Order) issued by
the Central Government of India in terms of section 143(11) of the Companies Act, 2013, we
give in the Annexure A statement on the specified in paragraphs 3 and 4 of the order
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 purposes 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. in our opinion, the aforesaid standalone financial statements comply with the
Accounting Standards specified under section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules,2014
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 is
disqualified as on 31st March, 2017 from being appointed as a Director in terms of Section
164(2) of the Act. .
f. With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate report in Annexure B and
g. With respect to the other matter to be included in Auditors Report in accordance
with Rule of the Companies (Audit and Auditors)Rule 2014 in our opinion and to the best of
our information and according to the explanations given to us :
i) The Company has disclosed the impact off pending litigations on its financial
position its financial statement.
ii) The Company does not have any long term contracts including derivative contracts
for which there will be any material foreseeable losses.
iii) There is no amount, required to be transferred, to the Investor Education and
Protection Fund by the Company.
|
For Nandy Haider & Ganguli |
|
Chartered Accountants |
|
Firms 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 Auditors Report to the members of the
company on the standalone the financial statements for the year ended 31st March, 2017, we
report that;
(i) The Company has maintained proper records showing full particulars including
quantitative details and situation of fixed assets. The written down value of fixed assets
being insignificant prescribed verification has not been done by the management.
(ii) The Company being a servicecompany does not hold any physical inventory. Thus,
paragraph 3(ii) is not applicable to the Company.
(iii) The Company has not granted any loans, secured or unsecured to companies, firms
or other parties covered in the register maintained under section 189 of the Companies
Act.
(iv) In our opinion and according to the information and explanations given to us the
Company has not granted any loans to directors and not made any loan and investment by the
company 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 Act,1956 and other relevant
provisions of the Act and rules framed thereunder have not been complied with in so far as
it relates to the repayment of principal and interest thereon. The orderpassed by the
Company Law Board has also not been complied with. The Company, however, has preferred an
appeal to Honbl High Court for revision. Honbl High Court has disposed of the Companies
appeal directing CLB to rehear the matter. The order from CLB is still awaited (refer
items (b) & (c) of Note 2).
(vi) The Central Government has not prescribed under section 148(1) of the Companies
Act to the company for maintenance of cost records.
(vii) According to the records of the Company, the Company is generally regular in
depositing the undisputed statutory dues like Provident Fund, Employees State Insurance,
Wealth Tax, Income Tax, Customs Duty, Sales Tax, Service Tax, Cess and other Statutory
dues with the appropriate authorities. There were no undisputed statutory dues outstanding
for 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 us
there are dues of Income Tax and Sales Tax amounting to Rs45758453 and Rs560716
respectively which have not been deposited on account of various disputes which are under
consideration of Appellate Authority, the details of which are set out in note (d) of
Notes on Accounts -2.
Viii) The Company does not have any loan dues from any financial institution or bank
therefore question of any default does not arise
ix) According to the information and explanations given to us, the Company has not
raised any money or taken any Term Loan during the year. Hence the question does not
arise.
x) 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.
xi) In our Opinion and according to the information and explanations given to us the
Company has not paid/provided managerial remuneration section 197 read with schedule V to
the Companies Act, 2013.
xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the
order is not applicable.
xiii) According to the information and explanations given to us, the provisions are not
applicable under section 177. However details of related party transactions under section
188have been disclosed in the financial statements as required by the applicable
accounting standards.
xiv) During the year the Company has not made any preferential allotment or private
placement of shares or fully or partly convertible debentures and hence reporting under
clause (xiv) of the order is not applicable to the Company.
xv) In our opinion and according to the information and explanations given to us during
the year the Company has not entered into any non-cash transaction with its director or
directors of its holding, subsidiary or associate Company or person connected with them
and 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 since
been cancelled.
|
For Nandy Haider & Ganguli |
|
Chartered Accountants |
|
Firms Registration No. - 302017E |
|
S.N. Bandyopadhyay |
| Place: Koikata |
Partner |
| Date: 30.05.2017 |
Membership No. 052246 |
ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of YULE
FINANCING & LEASING CO. LTD. (The Company") as of March 31,2017 in conjunction
with our audit of the standalone financial statements of the Company for the year ended on
that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of the Internal Financial Controls over Financial Reporting
issued by The Institute of Chartered Accountants of India (‘ICAI). These
responsibilities include the design, implementation and maintenance of adequate internal
financial controls that were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to Companys policies, the safeguarding of
its assets, the prevention and detection of frauds and errors, the accuracy and
completeness of the accounting records, and the timely preparation of reliable financial
information, as required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
(the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed
to be prescribed under section 143(10) of the Companies Act, 2013, to the extent
applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, both issued by the Institute of Chartered Accountants of
India. Those Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgement, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the Company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and
expenditure of the Company are being made only in accordance with authorisations of the
Management and directors of the Company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorised acquisition, use, or disposition of the
Companys 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 financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at March 31, 2017, based on the
internal control over financial reporting criteria established by the Company considering
the essential components of internal control.
|
For Nandy Haider & Ganguli |
|
Chartered Accountants |
|
Firms Registration No. - 302017E |
|
S.N. Bandyopadhyay |
| Place: Kolkata |
Partner |
| Date: 30.05.2017 |
Membership No. 052246 |
+91-9892691696
