To
The Members of K. Z. LEASING AND FINANCE LIMITED Report on the audit of the
Financial Statements Opinion
We have audited the accompanying standalone Ind AS financial statements of K Z
leasing & Finance Limited ("the Company"), which comprise the Balance
Sheet as at 31st March 2023, the Statement of Profit and Loss, the Statement of
Changes in Equity and the Statement of Cash Flows for the year ended, and summary of the
significant accounting policies and other explanatory information (here in after referred
to as" Standalone Ind AS financial statements").
In our opinion and to the best of our information and according to the explanations
given to us, standalone 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
accounting principles generally accepted in India of the state of affairs of the Company
as at 31 March 2023, its profit (including other comprehensive income), changes in equity
and its cash flows for the year ended on that date.
Basis of Opinion
We conducted our audit of the standalone Ind AS financial statements in accordance with
the Standards on Auditing specified under Section 143(10) of the Act. Our responsibility
under those Standards is further described in Auditors Responsibility for the Audit of
the standalone financial statements section of our report. We are independent of the
company in accordance with the code of ethics issued by ICAI together with the
independence requirement that is relevant to our audit of standalone financial statements
under the provisions of theAct and the rule made there, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and the ICAIs Code of
Ethics.
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.
We have determined that there are no key audit matters to be communicated in our report.
Other Information
The companys management and board of directors are responsible for the other
information. The other information comprises Boards Report on corporate governance and
Business Responsibility report but does not include the standalone financial statement and
our auditors report there on.
Our opinion on the financial statement does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of standalone financial statements, our responsibility is
to read the other information and, in doing so, consider whether the other information is
materially inconsistent with the standalone financial statements or our knowledge obtained
during the course of our audit procedure or other wise appear to be materially misstated.
If based on the work we have performed, we conclude that there is a material
misstatement of this other information; we are required to report on that fact. We have
nothing to report in this regard.
Managements Responsibility for the Standalone Ind AS 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 standalone Ind AS financial statements that give a true and fair view of the state
of affairs, Profit(including other comprehensive income), changes in equity and cash flows
of the Company in accordance with the accounting principles generally accepted in India,
including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the
Act.
This responsibility also includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safe guarding 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 standalone Ind AS
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.
The Board of directors is also responsible for overseeing the companys financial
reporting process.
Auditors Responsibility
Our objectives are to obtain reasonable assurance about whether standalone 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 aggregate, they could
reasonably be expected to influence the economic decision of users taken on the basis of
these standalone financial statements.
As a 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 risk of material misstatement of the standalone
financial statements, whether due to fraud or error, design and perform audit procedure
responsive to those risks, and obtain 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 the one resulting from error, as fraud may involve
collusion, forgery, intentional, omission, misrepresentation, or the over ride of internal
control.
• Obtain an understanding of internal financial 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 an adequate internal financial control 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 the 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 standalone financial statements or, if such disclosures are inadequate, to modify your
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 standalone
financial statements, including the disclosures, and whether the standalone financial
statements represent the underlying transactions and events in a manner that achieves fair
presentation.
Materiality is the magnitude of misstatements in the standalone financial statements
that individually or in aggregate, make it probable that the economic decisions of a
reasonably knowledgeable user of the standalone financial statements may be influenced. We
consider quantitative materiality and qualitative factors in (i) planning the scope of our
audit work and in evaluating the results of our work; and (ii) to evaluate the effect of
any identified misstatements in the standalone financial statements.
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 standalone financial statements
of the current period and are therefore the key audit matters. We describe these matters
inour 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 out weigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2020 ("the Order")
issued by the Central Government in terms of Section 143(11) of the Act, we give in "Annexure
A" a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, were port that:
(a) We have sought and obtained all the information which to the best of our knowledge
and belief was 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, the Statement of Profit and Loss, Statement of Changes in Equity
and the Cash Flow Statement dealt with by this Report are in agreement with the books of
account.
(d) In our opinion, the afore said standalone Ind AS financial statements comply with
the Indian Accounting Standards prescribed under section 133 of the Act.
(e) On the basis of the written representations received from the directors and take
non record by the Board of Directors, none of the directors is disqualified as on 31 March
2023 from being appointed as a director in terms of Section 164(2) of the Act;
(f) With respect to the adequacy of the intern a financial controls with reference
to financial statements of the Company and the operating effectiveness of such controls,
refer to our separate Report in "Annexure B".
(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. There is no pending litigation on the company there fore the same is not
required to be disclosed.
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 by the Company.
Annexure "A" to the Independent Auditors Report*
(Referred to in our report of even date)
With reference to Annexure A referred to in the Independent Auditors report to the
members of the Company on the standalone Ind AS financial statements for the year ended 31st
March 2023, we report the following:
I. In Respect of Fixed Assets
(a) As per the information provided by the management, the Company has maintained
proper records showing full particulars including quantitative details and the situation
of Fixed Assets on the basis of available information.
(b) As per the information and explanations given tous, the management at reasonable
intervals during the year in accordance with a programmer of physical verification has
physically verified the fixed assets and no material discrepancies were noticed on such
verification as compared to the available records.
(c) According to the information and explanations given to us, the records examined by
us and based on the examination of the conveyance deeds provided to us, we report that,
the title deeds, comprising all the immovable properties of land and buildings which are
free hold, are held in the name of the Company as at the balance sheet date.
(d) The company has not revalued its Property, Plant and Equipment (including Right of
Use assets) or intangible assets or both during the year, the clause for revaluation of
Property, Plant and Equipment (including Right of Use assets) or intangible assets or both
is not applicable.
(e) 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 there under.
II. In Respect of Inventories
The Company is providing financial services and there is no Inventory with the company,
thus this clause is not applicable to the company.
III. Compliance under section 189 of The Companies Act, 2013
(a) According to information and explanation given to us, the company has not granted
any loan, secured or unsecured to companies, firms, limited liability partnerships or
other parties covered in the register required under section 189 of the Companies Act,
2013. Accordingly, paragraph 3(iii) of the order is not applicable.
(b) In our opinion and according to the information and explanations given to us. The
rate of interest and other terms and conditions for such loans are not prima facie
prejudicial to the interest to the company
(c) In respect of loans granted, repayment of the principal amount is as stipulated and
payment of interest has been regular.
(d) There is no over due amount of loans granted to companies, firms or other parties
listed in the register maintained under section 189 of the companies Act, 2013.
(e) During the year the company has provided loans or provided advances in the nature
of loans, or stood guarantee, or provided security to any other entity and
(f) The Company has not granted loans or advances in the nature of loans which are
repayable on demand or with out specifying any terms or period of repayment to Promoters,
related parties as defined in clause (76) of section 2 of the Companies Act ,2013.
(f) Compliance under sections 185 and 186 of The Companies Act, 2013
According to the information and explanations given to us, the Company has complied
with provisions of Section 185 and 186 of the Companies Act, 2013 in respect of grant of
loans, making investments, and providing guarantees and securities, as applicable.
(g) Compliance under section 73 to 76 of The Companies Act, 2013 and Rules framed there
under while accepting Deposits
In our opinion and according to the information and explanations given to us, the
company has complied with the directives of the Reserve Bank of India and the provisions
of Sections 73 to 76 or any other relevant provisions of the Act and the rules framed
there under.
According to the information and explanations given to us, no order has been passed by
the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any
Court or any other Tribunal on the company in respect of the afore said deposits.
(h) Maintenance of cost records
The Company is not required to maintain cost records pursuant to the Rules made by the
Central Government for the maintenance of cost records under sub-section (1) of section
148 of the Companies Act, 2013.
(i) Deposit of Statutory Dues
(a) The company is generally regular in depositing the undisputed statutory dues
including provident fund employees state insurance, income tax, sales tax and wealth tax,
service tax, customs duty, excise duty, GST, Cess and other statutory dues applicable to
the Company with the appropriate authorities. No undisputed amounts payable in respect of
the aforesaid statutory dues were outstanding as at the last day of the financial year for
a period of more than six months from the date they became payable.
(b) As informed to us by the management, there is no dispute with there venue
authorities regarding any duty or tax payable.
(c) According to the records of the Company, no dues are outstanding of employees
state insurance, income-tax, sales-tax, duty of custom, duty of excise, Cess and other
statutory dues, which have not been deposited with the appropriate authorities on account
of any dispute.
VIII. Unrecorded income disclosed in tax assessments
There were no transactions relating to previously unrecorded income that have been
surrendered or disclosed as income during the year in the tax assessments under the Income
Tax Act, 1961 (43 of s1961).
IX. Repayment of Loans and Borrowings
According to the information and explanation given to us, the company has not defaulted
in repayment of dues to financial institutions, banks or debenture holders. The Company
did not have any outstanding debentures during the year. Accordingly, the provisions of
clause 3 (viii) of the Order are not applicable.
X. Utilization of Money Raised by Public Offers for which they raised
(a) The Company has not raised money by way of an initial public offer or further
public offer (including debt instruments) during the year and hence reporting under clause
3(x)(a) of the Order is not applicable.
(b) During the year, the Company has not made any preferential all ot mentor private
placement of shares or convertible debentures (fully or partly or optionally) and hence
reporting under clause 3(x)(b) of the Order is not applicable.
XI. Reporting of Fraud during the Year
(a) To the best of our knowledge, no fraud by the Company and no material fraud on the
Company has been noticed or reported during the year.
(b) No report under sub-section (12) of section 143 of the Companies Act has been filed
in Form ADT-4 as prescribed under rule13 of Companies (Audit and Auditors) Rules, 2014
with the Central Government, during the year and upto the date of this report.
(c) As represented to us by the Management, there were no whistleblower complaints
received by the Company during the year.
XII. Compliance by Nidhi Company Regarding Net Owned Fund to Deposits Ratio
As per information and records available, the Company is not a Nidhi Company.
Therefore, the provisions of clause 3(xii) of the order are not applicable to the Company
and hence not commented upon.
XIII. Related party compliance with Section 177 and 188 of companies Act-2013
According to the information and explanations given by the management, transactions
with the related parties are in compliance with section 177 and 188 of the Companies Act,
2013 where applicable and the details have been disclosed in the notes to the financial
statements, as required by the applicable accounting standards.
XIV. Internal Audit Systems
(a) In our opinion, the Company has an adequate internal audit system commensurate with
the size and the nature of its business.
(b) We have considered, the internal audit reports for the year under audit, issued to
the Company during the year and till date, in determining the nature, timing and extent of
our audit procedures.
XV. Non-cash transactions
According to the information and explanations given by the management, the Company has
not entered into any non-cash transactions with directors or persons connected with him as
referred to in section 192 of the Companies Act, 2013.
XVI. Requirement of Registration under 45-IA of Reserve Bank of India Act, 1934
According to the information and explanations given to us and based on our examination
of the records of the company, the company is NBFC Registered with under section 45-IA of
the Reserve Bank of India Act 1934.
XVII. Cash Losses
The Company has not incurred cash losses during the financial year covered by our audit
and the immediately preceding financial year.
XVIII. Resignation of Statutory Auditor
There has been no resignation of the statutory auditors of the Company during the year.
XIX. Material Uncertainty
On the basis of the financial ratios, ageing and expected dates of realisation of
financial assets and payment of financial liabilities, other information accompanying the
financial statements and our knowledge of the Board of Directors and Management plans and
based on our examination of the evidence supporting the assumptions, nothing has come to
our attention, which causes us to believe that any material uncertainty exists as on the
date of the audit report in dictating that Company is not capable of meeting its
liabilities existing at the date of balance sheet as and when they fall due within a
period of one year from the balance sheet date. We, however, state that this is not an
assurance as to the future viability of the Company. We further state that our reporting
is based on the facts up to the date of the audit report and we neither give any guarantee
nor any assurance that all liabilities falling due within a period of one year from the
balance sheet date, will get discharged by the Company as and when they fall due.
XX. Unspent CSR expenditure
The company has no obligation to spend under corporate social responsibility. So,
reporting under clause (xx) of the order is not applicable for the year.
"Annexure "B" to the Independent Auditors Report
(Referred to in paragraph 2(f) under Report on other legal and regulatory
requirements section of our report to the Members of K.Z. LEASING AND FINANCE LIMITED of
even date)
Report on the internal financial controls over financial reporting 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 K.Z.
LEASING AND FINANCE LIMITED ("the Company") as at March 31, 2023, in conjunction
with our audit of the financial statements of the Company for the year ended on that date.
Managements responsibility for internal financial controls
The board of directors of the Company 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, 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 internal financial controls over
financial reporting of the Company 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") issued by the Institute of Chartered Accountants
of India and the standards on auditing prescribed under Section 143 (10) of the Companies
Act, 2013, to the extent applicable to an audit of internal financial controls. 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 were established and maintained and if such
control so perated 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 in 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 control system
over financial reporting.
Meaning of internal financial controls over financial reporting
A companys internal financial control over financial reporting is a processed signed
to provide reasonable assurance regarding there liability 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 (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 nor timely detection of unauthorized acquisition, use,or disposition of the
companys assets that could have a material effect on the financial statements.
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 of 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 and according to the information and explanations given to us, the
Company has, in all material respects, an adequate internal financial control system over
financial reporting 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.
| Place: Surat |
For, Ranjit Galledar & Co. |
| Date: 30/05/2023 |
Chartered Accountant |
|
(FRN: 108640W) |
|
Ranjit Galledar |
|
Proprietor |
|
(Mem. No. 033390) |
|
(UDIN: 23033390BGXCXX4291) |
+91-9892691696
