We have audited the accompanying standalone financial statements of SUPERIOR FINLEASE
LIMITED (“the Company”), which comprise the balance sheet as at 31st March 2024, the statement
of profit and loss and the 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 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 accounting
principles generally accepted in India of the state of affairs of the Company as at 31st March 2023,
and the net profit(including other comprehensive income), changes in equity 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 Act. Our responsibilities under those standards are further described in the
'Auditor's 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 (ICAI) together with ethical requirements that are relevant to our
audit of the financial statements under the provisions of the Act and the rules thereunder, and we
have fulfilled our ethical responsibilities in accordance with these requirements and the Code of
Ethics. We believe that the audit evidences we have obtained are 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. We have determined the matters described
hereunder to be key audit matters to be communicated in our report.
Compliance of RBI directions and circulars:
The recent RBI regulations increased the responsibility of auditors of NBFCs.
As Company is an NBFC, it is responsibility of Company to duly follow the directions and circulars.
We focused on the requisite compliance and disclosure as per the requirements in the norms
Auditor's response
Our audit procedure inter- alia includes the following: -
We have reviewed the conditions for prudential norms prescribed by the RBI including: -
a) Provision on standard assets.
b) Transfer of 20% profit to reserve maintain under section 45-IC of the RBI Act.
c) Holding of at least 50% of the financial assets and 50% of the financial income respectively.
d) Maintaining minimum Net Owned Fund of Rs. 200 Lakhs.
Information other than the Standalone Financial Statements and Auditor's Report thereon
The Company's Board of Directors is responsible for the preparation of the other information. The
other information comprises the information included in the Management Discussion and Analysis,
Board's Report including Annexure to Board's Report, Business Responsibility Report, Corporate
Governance and Shareholder's Information, but does not include the standalone financial
statements and the auditor's report thereon.
Our opinion on the standalone 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 the 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 or otherwise appears to be materially misstated.
When we read the Board's Report Including Annexure to the Board's Report, Corporate Governance
and shareholders information, if we conclude that there is a material misstatement therein, we are
require to communicate the matter to those charged with governance. That Such information is
pending for approval as on date of this report. Bank accounts of the Company has been freeze by
government authorities.
Responsibilities of Management and Those Charged with Governance for the Financial
Statements
The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Act
with respect to the preparation of these financial statements that give a true and fair view of the
financial position, financial performance, changes in equity and cash flows of the Company in
accordance with the AS and the other accounting principles generally accepted in India. 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 are operating
effectively for insuring 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 misstatements, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company's
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 Company's financial reporting
process.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain, a reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue our 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 due to fraud or error and are considered material if, individually or
in 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 the SAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
(i) 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 one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of
internal control.
(ii) Obtain an understanding of the internal controls 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 adequate internal
financial controls system in place and the operating effectiveness of such controls.
(iii) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
(iv) Conclude on the appropriateness of management's use of the going concern basis of accounting
and, based on the audit evidence obtained, whether it material uncertainty exists related to events
or conditions that may cast significant doubt on the Company's ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor's 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 upto
the date of our auditor's report. However, future events or conditions may cause the Company to
cease to continue as a going concern.
(v) 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 a id significant audit findings, including any significant deficiencies in
internal controls 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 reasonable be thought to bear on our independence, and
where applicable, relevant safeguards.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2020 ('the Order'), as amended, issued
by the Central Govern vent of India in terms of sub-section (11) of section 143 of the Act, we give in
the Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the order, to the
extent applicable.
2. The Company is a Non-Banking Financial Company not accepting public deposits and holding
certificate of Registration No. 14.00199 dated 04/03/1998 from Reserve Bank of India has been
issued to the Company.
a) The 'Board of Directors has passed resolution for the non-acceptance of any public deposits.
b) The Company has not accepted any public deposits during the relevant year.
c) The Company has complied with the prudential norms relating to income recognition,
accounting standards, asset classification and previously for bad and doubtful debts as applicable
to it.
3. As required by Section 143(3) of the Act, we report that:
a. We have sought and obtained all tht 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 ace aunt 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 aforesaid financial statements comply with the accounting standards specified
under Section 13, of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014
e. On the basis of the written representations received from the directors as on 31st March, 2024
taken on record by the Board of Directors, none of the directors is disqualified as on 31st March,
2024 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 control over financial reporting of the
Company and the operating effectiveness of such controls refer to our separate Report Annexure B.
Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the
Company's internal financial controls over financial reporting.
g. With respect to the other matters to be included in the Auditor's 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 explanation given to us:
i. The Company has pending litigations on its financial position with enforcement directorate, SEBI
ii The Company did not have an long-term contracts including derivative contracts for which there
were any material foreseeable losses.
iii. The Company is not required to tr nsfer any amount to the Investor Education and Protection
Fund.
iv. The Management has represented that,to the best of its knowledge and belief no funds(which are
material either individually or in the aggregate) 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 entities, including foreign entities (“intermediaries) with the
understanding, whether recorded in writing or otherwise, that the intermediary shall, directly or
indirectly lend or invest in other person 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.
v. The Management has represented, that to the best of its knowledge and belief, no funds (which
are material either individually or in the aggregate) 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, 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.
vi. Based on the audit procedures that has been considered reasonable and appropriate in the
circumstances, nothing has come to our notice that has caused us to believe that the
representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above,
contain any material misstatement
FOR R.C. AGARWAL & CO.
Chartered Accountants
Firm Regn. No. 003:175N
PRAVIN KUMAR JHA
Partner
Membership No: 506375
UDIN:24506375BKCFSC3573
NEW DELHI
DATE: 29th MAY, 2024
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