Mumbai
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the Ind AS financial statements of Golden Legand Leasing And Finance
Limited (‘the Company), which comprise the balance sheet as at 31st
March, 2022, the statement of profit and loss, statement of changes in equity and the cash
flow statement for the year then ended and notes to financial statements, including a
summary of significant accounting policies and other explanatory information (hereinafter
referred to as " Ind AS financial statements")
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 Companies Act, 2013 ("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 , 2022, and profit/loss,
its cash flows and changes in equity for the year ended on that date.
Basis for Qualified Opinion
The Company has not provided for loss allowances on Loans and Advances amounting to
about Rs. 13,87,19,869 and trade receivables Rs. 2,55,50,076 as on 31st March,
2022 given by the Company which is to be recognized as required by Indian Accounting
Standard (IND-AS 109). The financial liabilities of the Company and net Profit for the
year ended 31st March,2022 are understated to that extent.
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 Ind
AS 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 on the Ind AS
financial statements.
Emphasis of Matter
We further draw an attention to the uncertainties and the managements assessment of
the financial impact due to the lock-downs and other restrictions and conditions related
to the Covid-19 pandemic situation, for which a definitive assessment of the impact in the
subsequent period is highly dependent upon circumstances as they evolve.
Our opinion is not modified in respect of these matters.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the Standalone financial statements for the financial year
ended 31st March, 2022. These matters were addressed in the context of our audit of the
Ind AS 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 communicate in our report.
Information Other than the Financial Statements and Auditors Report Thereon
The Companys management and Board of Directors are responsible for the other
information. The other information comprises the information included in the Companys
annual report, but does not include the Ind AS financial statements and our auditors
report thereon.
Our opinion on the Ind AS financial statements does not cover the other information and
we do not express any form of assurance conclusion thereon.
In connection with our audit of the Ind AS financial statements, our responsibility is
to read the other information and, in doing so, consider whether the other information is
materially inconsistent with the Ind AS financial statements or our knowledge obtained in
the audit or otherwise appears to be materially misstated. If, based on the work we have
performed and based on the work done/ audit report of other auditors, there is a
38th Annual Report 2021-22 material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Responsibility of Management for 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 Ind AS financial statements that give a true and fair view of the financial
position, financial performance, cash flows and changes in equity 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 statement that give
a true and fair view and are free from material misstatement, whether due to fraud or
error.
In preparing the Ind AS 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 Ind AS 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 Ind AS 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 Ind AS 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 also 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.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditors Report) Order, 2020 ("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 statement on the matters specified in
paragraphs 3 and 4 of the Order, to the extent applicable. As required by Section 143(3)
of the Act, we report that:
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.
(a) 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.
(b) 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.
(c) 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.
(d) On the basis of the written representations received from the directors as on 31st
March, 2022 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2022 from being appointed as a director in terms of Section
164 (2) of the Act.
(e) 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 did not have any pending litigations on its financial position in its
financial statements.
ii. The Company did not have any long term contracts including derivative contracts for
which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection Fund of the Company.
iv. (i) The management has represented that, to the best of its knowledge and belief,
other than as disclosed in the notes to the accounts, no funds have been advanced or
loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the company to or in any other person or entity, including foreign
entities ("Intermediaries"), with the understanding, whether recorded in writing
or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest
in other persons or entities identified in any manner whatsoever by or on behalf of the
company ("Ultimate Beneficiaries") or provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries;
(ii) The management has represented, that, to the best of its knowledge and belief,
other than as disclosed in the notes to the accounts, no funds have been received by the
company from any person or entity, including foreign entities ("Funding
Parties"), with the understanding, whether recorded in writing or otherwise, that the
company shall, whether, directly or indirectly, lend or invest in other persons or
entities identified in any manner whatsoever by or on behalf of the Funding Party
("Ultimate Beneficiaries") or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries; and
(iii) Based on audit procedures which we considered reasonable and appropriate in the
circumstances, nothing has come to their notice that has caused them to believe that the
representations under sub-clause (i) and (ii) contain any material mis-statement.
i. The company has not declared or paid any dividend during the year in contravention
of the provisions of section 123 of the Companies Act, 2013.
For M/s. Goenka Mehta and Associates Chartered Accountants
Gaurav Mehta Partner
Membership No.130401 UDIN: 22130401AXFCOY3799 Place: Rajkot Date : 05.09.2022
Annexure to the Independent Auditors Report
With reference to the Annexure referred to in the Independent Auditors Report to the
members of the Company on the financial statements for the year ended 31st
March , 2022, we report the following: (i) (a) A) The Company has proper records related
to full particulars including quantitative details and situation of Property, Plant and
Equipment.
B) The company has maintained proper records showing full particulars of intangible
assets. (b) In our opinion Property, Plant and Equipment have been physically verified by
the management at reasonable intervals. No material discrepancies were noticed on such
verification during the year. (c) There are no immovable properties, therefore, the
provisions of Clause (i)(c) of paragraph 3 of the order are not applicable to the company.
(d) The company has not revalued its Property, Plant and Equipment during the year.
Therefore, the provisions of Clause (i)(d) of paragraph 3 of the order are not applicable
to the company.
(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 thereunder. Therefore, the provisions of Clause (i)(e) of paragraph 3 of the
order are not applicable to the company.
(ii)
(a) The company has no inventory. Therefore, the provisions of clause (ii)(a) of the
said Order are not applicable to the company.
(b) During any point of time of the year, the company has not been sanctioned any
working capital limits, from banks or financial institutions on the basis of security of
current assets. Therefore, the provisions of Clause (ii)(b) of paragraph 3 of the order
are not applicable to the company.
(iii)
According to the information and explanations given to us and on the basis of our
examination of the records of the company, the company has not made investments in, nor
provided any guarantee or security or granted any loans or advances in the nature of
loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or any
other parties during the year. Accordingly, provisions of clause 3(iii)(a), 3(iii)(b),
3(iii)(c), 3(iii)(d), 3(iii)(e) and 3(iii)(f) of the Order are not applicable to the
Company.
(iv) In our opinion and according to the information and explanations given to us, the
Company has not accepted any deposits from public. Therefore, the provisions of Clause (v)
of paragraph 3 of the order are not applicable to the Company.
(v) As explained to us, the Central Government of India has not specified the
maintenance of cost records under sub-section (1) of Section 148 of the Act for any of
products of the company.
Therefore, the provisions of Clause (vi) of paragraph 3 of the order are not applicable
to the Company.
(vi)
(a) The Company is generally regular in depositing undisputed statutory dues including
Provident Fund, Employees State Insurance, Income tax, GST, Duty of Customs, duty of
Excise, Cess and other statutory dues with the appropriate authorities to the extent
applicable to it. However the Company has not filed its GST returns since March, 2020 due
to Covid-19 pandemic situation and hence the GST Number is cancelled against which appeal
is filed but there is no GST Payable except penalty for filing returns the quantum of
which is not identifiable.
(b) According to the information and explanations given to us and on the basis of our
examination of the records of the company, there is no statutory dues referred to in
sub-clause (a) that have not been deposited on account of any dispute except following
| Sr. Name of the statute No. |
Asst. Year |
Amount Rs. |
Forum where is pending |
dispute |
| 1. Income Tax Act, 1961 |
2014-15 |
14,09,970 |
CIT (A) |
|
| 2. Professional Tax Act |
2020-21 |
21,700 |
Professional Tax |
(viii) In our opinion and according to the information and explanations given to us,
there is not any transaction 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 and according to the information and explanations given to us, the
Company has not defaulted in repayment of any loan or other borrowings or any interest due
thereon to any lender. (b) In our opinion and according to the information and
explanations given to us, the company has not been a declared wilful defaulter by any bank
or financial institution or other lender
(c) The company has no loans. Therefore, the provisions of clause (ix)(c) of the said
Order are not applicable to the company.
(d) In our opinion and according to the information and explanations given to us, there
are no funds raised on short term basis which have been utilized for long term purposes.
(e) In our opinion and according to the information and explanations 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) In our opinion and according to the information and explanations 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 money by way of initial public offer or further public
offer (including debt instruments). Therefore, the provisions of Clause (x)(a) of
paragraph 3 of the order are not applicable to the Company.
(b) In our opinion and according to the information and explanations given to us, the
company has not made preferential allotment or private placement of shares during the
year. Therefore, the provisions of Clause (x)(b) of paragraph 3 of the order are not
applicable to the Company.
(xi)
(a) We have not noticed any case of fraud by the company or any fraud on the Company by
its officers or employees during the year. The management has also not reported any case
of fraud during the year.
(b) During the year 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) As auditor, we did not receive any whistle- blower complaint during the year.
(xii) The company is not a Nidhi Company. Therefore, the provisions of Clause (xii) of
paragraph 3 of the order are not applicable to the Company.
(xiii) As per the information and explanations received to us all transactions with the
related parties are in compliance with sections 177 and 188 of Companies Act where
applicable, and the details have been Disclosed in the financial statements, etc., as
required by the applicable accounting standards.
Identification of related parties were made and provided by the management of the
company
(xiv) The company is not covered by section 138 of the Companies Act, 2013, related to
appointment of internal auditor of the company. Therefore, the company is not required to
appoint any internal auditor. Therefore, the provisions of Clause (xiv) of paragraph 3 of
the order are not applicable to the Company.
(xv) The Company has not entered into any non-cash transactions with directors or
persons connected with him for the year under review. Therefore, the provisions of Clause
(xv) of paragraph 3 of the order are not applicable to the Company.
(xvi)
(a) According to the information and explanations given to us, The Company, being a
NBFC, is required to be registered under Section 45 IA of the Reserve Bank of India Act,
1934. The registration as required has been duly obtained and registration number issued
to the Company is 13.01171. But the Company is fully engaged in Payment Gateway Business
during the year under review.
(b) The company has not conducted any Non-Banking Financial or Housing Finance
activities during the year.
(c) The company is not a Core Investment Company (CIC) as defined in the regulations
made by the Reserve Bank of India (d) As per the information and explanations received,
the group does not have any CIC as part of the group.
(xvii) The company has not incurred cash loss in current financial year as well in
immediately preceding financial year.
(xviii) There has been no resignation of the previous statutory auditors during the
year.
(xix) On the basis of the financial ratios, ageing and expected dates of realization of
financial assets and payment of financial liabilities, other information accompanying the
financial statements, the auditors knowledge of the Board of Directors and management
plans, we are of the opinion that 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 one year from the balance sheet
date.
(xx) There is not liability of the company under the provisions of section 135 of the
Companies Act, relating to Corporate Social Responsibility. Therefore, the provisions of
Clause (xx) of paragraph 3 of the order are not applicable to the Company.
(xxi) The company has not made investments in subsidiary company. Therefore, the
company does not require to prepare consolidated financial statement. Therefore, the
provisions of Clause Of paragraph of the order are not applicable to the company.
For M/s. Goenka Mehta and Associates Chartered Accountants
Gaurav Mehta Partner
Membership No.130401 UDIN: 22130401AXFCOY3799 Place: Rajkot Date : 05.09.2022
Annexure A to the Auditors Report-31st March, 2022
Report on the Internal Financial Controls under Clause (i) of sub- section 3 of the
Section 143 of the Companies Act, 2013 (‘the Act)
We have audited the internal financial controls over financial reporting of Golden
Legand Leasing And Finance Limited (the company) as of 31st March, 2022 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 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 Accountant 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 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 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 Not 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 were 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 judgment, 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
expenditures of the Company are being made only in accordance with authorization of the
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 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 31st March, 2022,
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 M/s. Goenka Mehta and Associates Chartered Accountants
Gaurav Mehta Partner
Membership No.130401 UDIN: 22130401AXFCOY3799 Place: Rajkot Date : 05.09.2022
+91-9892691696
