To
The Members of Crescent Leasing Limited
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the financial statements of Crescent Leasing Limited (“the
Company”), which comprise the balance sheet as at 31st March, 2020, and the statement
of Profit and Loss and statement of cash flows for the year then ended, and notes to the
financial statements, including a summary of significant accounting policies and other
explanatory information.
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid 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 31st
March, 2020, its profit/loss and its cash flows for the year ended on that date.
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. Our responsibilities under those
Standards are further described in the Auditors Responsibilities for the Audit of the
Financial Statements 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 Companies Act, 2013 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 we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. These matters
were addressed in the context of our audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
Responsibilities of Management and Those Charged with Governance for the Standalone
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. 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 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.
In preparing the financial statements, management is 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 management
either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
Those Board of Directors are also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are 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 these financial statements.
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 financial statements,
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
Companies Act, 2013, we are not responsible for expressing our opinion on whether the
company has adequate internal financial controls system 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 management.
Conclude on the appropriateness of managements 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 statements 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 financial statements,
including the disclosures, and whether the financial statements represent 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.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the financial statements of the
current period and are therefore the key audit matters. We describe these matters in our
auditors report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
We are independent of the Group in accordance with the ethical requirements that are
relevant to our audit of the financial statements and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditors Report) Order, 2016 (“the Order”),
issued by the Central Government of India in terms of sub-section (11) of section 143 of
the Companies Act, 2013, we give in the ‘Annexure A, a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent applicable.
1. 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, the Statement of Profit and Loss and the Cash Flow Statement
dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid financial statements comply with the Accounting
Standards specified under Section 133 of the Act, read with Companies (Indian Accounting
Standards) Rules, 2015, as amended;
e) On the basis of the written representations received from the Directors as on 31st
March, 2020, taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2020 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 with reference to these standalone Ind AS financial statements
and the operating effectiveness of such controls, refer to our separate Report in
‘Annexure B to this report;
g) In our opinion, the managerial remuneration for the year ended 31st March
2020 has been paid/provided by the Company to its directors in accordance with the
provisions of section 197 read with Schedule V to the Act;
h) With respect to the other matters to be included in the Auditors 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 litigations which would impact its financial
position.
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 which were
required to be transferred to the Investor Education and Protection Fund.
The Annexure referred to in paragraph 1 o f Our Report on “Other Legal and
Regulatory Requirements”.
We report that:
i) There being no fixed assets with the company hence Para 3(i) does not apply.
ii) As explained to us, inventories have been physically verified during the year by
the management at reasonable intervals. No material discrepancy was noticed on physical
verification of stocks by the management as compared to book records.
iii) The company has not granted loans to parties covered in the register maintained
under section 189 of the Companies Act, 2013.
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 covered under sections 73
to 76 of the Companies Act, 2013.
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) i) According to the records of the company, undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees State Insurance,
Income-tax, Sales-tax, Service Tax, Custom Duty, Excise Duty, value added tax, cess and
any other statutory dues to the extent applicable, have generally been regularly deposited
with the appropriate authorities. According to the information and explanations given to
us there were no outstanding statutory dues as on 31st of March, 2020 for a
period of more than six months from the date they became payable except for the following.
Income Tax
| Assessment Year |
Amount |
Status |
| 2008-09 (Section 147 of Income Tax Act 1962) |
396990/- |
Appeal Filed to Commissioner appeal on 25/05/2015 |
| 2012-13 (Section 154 of Income Tax Act 1962) |
215010/- |
Appeal Filed to Commissioner appeal on 16/10/2015 |
| 2013-14 (Section 220(2) of Income Tax Act 1962) |
930/- |
|
| 2014-15 (Section 147220(2) of Income Tax Act 1962) |
1328/- |
|
TDS
| TDS |
2 |
0000/- booked on 06/07/2016 |
(interest not Included) |
| TDS |
3 |
7 |
1 |
6 |
2 |
9/- booked on 31/03/2017 (interest not Included) |
| TDS |
1 |
2 |
2 |
5 |
3 |
9/- Booked on 31/03/2018 (interest not included) |
| TDS |
12519759/- Booked on 31/03/2019 (interest not
included) |
ii) 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 except the details given above.
viii) In our opinion and according to the information and explanations given by the
management, we are of the opinion that, the Company has not defaulted in repayment of dues
to a financial institution, bank, Government or debenture holders, as applicable to the
company.
ix) Based on our audit procedures and according to the information given by the
management, the company has not raised any money by way of initial public offer or further
public offer (including debt instruments) or taken any term loan during the year.
x) According to the information and explanations given to us, we report that no fraud
by the company or any fraud on the Company by its officers or employees has been noticed
or reported during the year.
xi) The company has paid managerial remuneration during the financial year Rs.
3,36,000, the same is as per provision of section 197 read with Schedule V of the
companies act, 2013.
xii) The company is not a Nidhi Company. Therefore clause 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 has not made any preferential allotment or private placement of shares
or fully or partly convertible debentures during the year under review.
xv) Provisions of section 192 of Companies Act, 2013 have been complied with in case of
non-cash transactions entered by the company with directors or persons connected with him
xvi) The company is registered under section 45-IA of the Reserve Bank of India Act,
1934.
The Annexure referred to in paragraph 2(f) under the heading ‘Report on other
legal and regulatory requirements of our report of even date
Report on 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 Crescent
Leasing Limited (the ‘Company) as of 31st March 2020 in conjunction with
our audit of the standalone Ind AS 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 Internal Financial Controls over Financial Reporting
issued by the Institute of Chartered Accountants of India. 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 the 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 Act.
Auditors responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting with reference to these standalone Ind AS financial
statements 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 as specified under section 143(10) of the Act, to the
extent 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 with reference to these standalone Ind AS financial statements 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 over financial reporting with reference to these
standalone Ind AS financial statements and their operating effectiveness. Our audit of
internal financial controls over financial reporting included obtaining an understanding
of internal financial controls over financial reporting with reference to these standalone
Ind AS financial statements, 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 internal financial controls over financial
reporting with reference to these standalone Ind AS financial statements.
Meaning of internal financial controls over financial reporting with reference to these
Standalone Ind AS Financial Statements A Companys internal financial control over
financial reporting with reference to these standalone Ind AS financial statements 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 with reference to these standalone Ind AS financial statements
includes those policies and procedures that:
(i) pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the Company;
(ii) 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 expenditures of the Company are being made only in
accordance with authorisations of Management and Directors of the Company; and
(iii) 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 with
reference to these standalone Ind AS Financial Statements Because of the inherent
limitations of internal financial controls over financial reporting with reference to
these standalone Ind AS financial statements, 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 with reference to these standalone Ind AS financial
statements to future periods are subject to the risk that the internal financial control
over financial reporting with reference to these standalone Ind AS financial statements
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 over financial reporting with reference to these standalone Ind AS
financial statements and such internal financial controls over financial reporting with
reference to these standalone Ind AS financial statements were operating effectively as at
31st March 2020, 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 Internal Financial Controls Over Financial
Reporting issued by the Institute of Chartered Accountants of India.
For BERIWAL & ASSOCIATES
Chartered Accountants
FRN- 327662E
CA SUNIL BERIWAL
Proprietor
M. No. 055302
Place : Kolkata
Date : 31.07.2020
+91-9892691696
