The Shareholders,
JAGSONPAL FINANCE & LEASING LTD,
New Delhi.
Report on the Indian Accounting Standards (Ind AS)Financial Statements
1. Wehave audited the accompanying Ind AS financial statements of JAGSONPALFINANCE
& LEASING LTD (“the Company”), which comprise the Balance Sheet as at March
31, 2023, the Statement of Profit & Loss, the Cash Flow Statement, Statement of
changes in Equity and a summary of significant accounting policies and other explanatory
information.
2. 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 Companies Act, 2013 (the “Act”) in the manner so required and give a true
and fair view in conformity with the Indian Accounting Standards (“Ind AS”)
prescribed under section 133 of the Act read with the Companies (Indian Accounting
Standards) Rules, 2015, as amended and other accounting principles generally accepted in
India, of the standalone state of affairs as at March 31, 2023.
Managements Responsibilities for the Ind AS Financial Statements
3. The Companys Board of Directors is responsible for the matters
statedinSection134(5)of the Companies Act, 2013 (“theAct”) with respect to the
preparation of these Ind AS financial statements togive a true and fair view of the
financial position, financial performance and cashflows of the Company in accordance with
the accounting principles generally accepted in India, including the Indian Accounting
Standards specified in the Companies (Indian Accounting Standard) Rule, 2015 (as amended)
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 the
assets of the Company and for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies; making judgmentsand
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 Ind AS financial statements that give a true and fair view and are
free from material misstatement, whether due to fraud or error.
Auditors Responsibility
4. Our responsibility is to express an opinion on these Ind AS financial statements
based on our audit.
5. Wehavetakeninto accounttheprovisionsofthe 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 theRules made there under.
6. We conducted our audit of theInd AS financial Statements in accordance with the
Standards on Auditing specified under Section 143(10) of the Act and other applicable
authoritative pronouncements issued by the Institute of Chartered Accountants of India.
Those Standards and pronouncements require that we comply with ethical requirements and
plan and perform the audit to obtain reasonable assurance about whether the Ind AS
financial statements are free from material misstatement.
7. An audit involves performing procedures to obtain audit evidence about the amounts
and disclosures in the Ind AS financial statements. The procedures selected depend on the
auditors judgment, including the assessment of the risks of material misstatement of the
Ind AS financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the Companys preparation
and fair presentation of the Ind AS financial statements, in order to design audit
procedure that are appropriate in the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of the accounting
estimates made by Companys Directors, as well as evaluating the overall presentation of
the Ind AS financial statements.
8. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Ind AS financial statements.
Opinion
9. In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid Ind AS 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 Ind
AS and other accounting principles generally accepted in India, of the state of affairs of
the Company as at 31 March 2023, and its total comprehensive loss, its cash flows, the
changes in Equity of the company and a summary of significant accounting policies and
other explanatory information for the year ended on that date.
Report on Other Legal and Regulatory Requirements
10. As required by the Companies (Auditors Report) Order 2016 issued by the Central
Government interms of Sub-section (11) of section 143 of the Act (“the Order”)
and on the basis of such checks of the books and records of the company as we considered
appropriate and according to the information and explanations given to us, we give in the
Annexure B a statement on the matters specified in paragraphs 3 and 4 of the Order.
11. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information to the best of our knowledge and
belief was 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
and changes in Equity Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone Ind AS financial statements comply with
the Accounting Standards specified under Section133 of the Act.
(e) On the basis of written representation received from the directors as on 31st
March, 2023 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2023 from being appointed as a director in terms of Section
164(2) of the act.
(f) As required under section 143(3)(i) of the act, regarding adequacy and operating
effectiveness of internal financial controls a separate annexure A.
(g) 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 impact its Ind AS financial position;
ii. The Company does not have any long term contracts; and iii. The company has no unpaid
dividends that required to be transferred to the Investor Education and Protection Fund.
ANNEXURE A TO THE INDEPENDENT AUDITORS REPORT
Referred to in paragraph 11(f) of the Independent Auditorsreport of even date to the
Members of Jagsonpal Finance & Leasing Ltd. on the Ind AS financial statements for the
year ended 31st March, 2023.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of section
143 of the Act
We have audited the internal financial controls over financial reporting of Jagsonpal
Finance & Leasing Limited (“the Company”) as at March 31, 2023 in
conjunction with our audit of the Ind AS financial statements of the Company for the year
ended on that date.
Responsibility of management
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 (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 Act.
ResponsibilityAuditors
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 deemed to be prescribed
under section 143(10) of the Act 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 ICAI.
“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 internal
financial controls systems 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 judgment, including the assessment of the risk of material
misstatement of the financial statements, whether due to fraud or error. believe that the
evidences obtained by us are sufficient and appropriate to express opinion on internal
financial control system of the company over financial reporting.
Meaning of internal financial controls
A companys Internal financial control over financial reporting 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 expenditures of the company are being made
only in accordance with authorizations of management and directors of the company; and
3) Provide reasonable assurance regarding prevention or timely detection of
unauthorized 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 possibilityof collusion or improper management override of
controls,material misstatements due to error or fraud may occur andnot be detected. Also,
projections of any evaluation of theinternal financial control over financial reporting to
futureperiods are subject to the risk that the internal financialcontrols over financial
reporting may become inadequatebecause of changes in conditions, or that the degree
ofcompliance with the policies or procedures may deteriorate
Opinion
In our opinion, the Company has, in all material respects, an adequate internal
financial controls with reference to Ind AS financial statements and such internal
financial controls over financial reporting were operating effectively as at March 31,
2023, 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.
ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT
Referred to paragraph 10in our Independent Auditors Report to the members of the
company on the financial statements for the year ended 31st March 2023, we
report that: 1. a) The Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets. b) As explained to us, fixed
assets have been physically verified by management which, in our opinion, provides for
physical verification of all the fixed assets at reasonable intervals. c) According to the
information and explanations given to us, no material discrepancies were noticed on such
verification. d) As explained to us, title deeds of immovable properties are held in the
name of company.
2. a) As explained to us, the inventories of finished goods were physically verified at
the end of the year by the Management. In case of inventories lying with third parties,
certificates of stocks holding have beenreceived. b) According to the information and
explanations given to us, no material discrepancies were noticed on such verification.
3. a) The Company has not granted loans to any bodies corporate covered in the register
maintained under section 189 of the Companies Act, 2013 (‘the Act). b) Accordingly,
paragraph 3(iii)(b) of the Order is not applicable to the Company in respect of repayment
of the principal amount.
c) There is no amount due in respect of the loans granted to the bodies corporate
listed in the registermaintained under section 189 of the Act.
4. According to the information and explanations given to us, Company has not given any
loans to directors as specified under section 185 of Companies act 2013 and no Loans and
Investment made by company in contravention of section 186 of Companies Act 2013.
5. In our opinion, and according to the information and explanationsgiven to us, the
Company has not accepted any deposits from public within the meaning of Sections 73 to
76of the Companies Act, 2013.
6. As per the explanations given to us the provision of section 148(1) of the Companies
Act, 2013, regarding maintenance of cost records are not applicable to the company.
7. According to the information and explanations given to us, there are no undisputed
statutory dues payable in respect ofProvident Fund, Employees State Insurance, Income Tax,
Sales Tax, Customs Duty, Excise Duty, which are outstanding as at 31st March, 2023 for a
period of more than six months from the date they became payable.
8. The Company did not have any loans or borrowings from any financial institutions,
banks, Government nor has it issued any debentures as at the balance sheet date, the
provisions of clause 3(viii) of the Order are not applicable of the company.
9. The company has not raised any moneys by way of initial public offer, further public
offer (including dent instruments) and term loans. Accordingly, the provisions of clause
3(ix) of the order are not applicable to the company.
10. According to information and explanations given to us, no fraud by the company or
on the company by its officers or employees noticed or reported during the year.
11. The company is required to, and has been registered under Section 45-IA of the
Reserve Bank of India Act, 1934 as a ‘NBFC.
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