You are here » Home » Companies » Company Overview » Nagpur Power & Industries Ltd

Nagpur Power & Industries Ltd.

BSE: 532362 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE099E01016
BSE LIVE 15:28 | 23 Nov 37.60 -1.90
(-4.81%)
OPEN

36.60

HIGH

37.60

LOW

36.60

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 36.60
PREVIOUS CLOSE 39.50
VOLUME 270
52-Week high 44.00
52-Week low 23.25
P/E 6.53
Mkt Cap.(Rs cr) 49
Buy Price 37.60
Buy Qty 25.00
Sell Price 40.95
Sell Qty 10.00
OPEN 36.60
CLOSE 39.50
VOLUME 270
52-Week high 44.00
52-Week low 23.25
P/E 6.53
Mkt Cap.(Rs cr) 49
Buy Price 37.60
Buy Qty 25.00
Sell Price 40.95
Sell Qty 10.00

Nagpur Power & Industries Ltd. (NAGPURPOWER) - Auditors Report

Company auditors report

TO THE MEMBERS OF

NAGPUR POWER AND INDUSTRIES LIMITED

Report on the Standalone Financial Statements

1. We have audited the accompanying standalone financial statements of NAGPUR POWER ANDINDUSTRIES LIMITED ("the Company") which comprise the Balance Sheet as at March31 2016 the Profit and Loss Statement and Cash Flow Statement for the year then endedand a summary of the significant accounting policies and other explanatory informationwhich we have signed under reference to this report.

Management’s Responsibility for the Standalone Financial Statements

2. The Company’s Board of Directors is responsible for the matters stated insection 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these standalone financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe Accounting principles generally accepted in India including the Accounting Standardsspecified under section 133 of the Act read with rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor’s Responsibility

3. Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by the Company’s Directors as well as evaluating theoverall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our qualified audit opinion on the standalone financial statements.

Basis for Qualified Opinion

4. Attention is invited to Note 14.1 viz company’s Ferro Alloys unitat Khandelwal Nagar Kanhan Nagpur generated waste during the process of manufacturewhich has accumulated over the years in and around the main plant. The waste is reuseablefor extracting metal content therein. The Company has not accounted for Stock of balanceof such accumulated waste over the years at its unit as the technical consultants haveadvised the company that its quality metal content and the realizable value cannot bereasonably ascertained. Our audit report for the previous year was also similarlyqualified.

Qualified Opinion

5. In our opinion and to the best of our information and according to the explanationsgiven to us except for the consequential effect of the matter described in theBasis for Qualified Opinion paragraph above which is not quantifiable theaforesaid standalone financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of the affairs of the Company as atMarch 31 2016 and its loss and its cash flows for the year ended on that date.

Report On Other Legal and Regulatory Requirements

6. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

7. As required by section 143 (3) of the Act we report that:

a. We have sought and except for the matters described in the Basis for QualifiedOpinion paragraph obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit;

b. Except for the possible effects of the matter described in the Basis for QualifiedOpinion paragraph above in our opinion proper books of account as required by law havebeen kept by the Company so far as appears from our examination of those books;

c. The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account.

d. Except for the possible effects of the matter described in the Basis for QualifiedOpinion paragraph above in our opinion the Balance Sheet Statement of Profit and Lossand Cash Flow Statement comply with the Accounting Standards specified under section 133of the Act read with Rule 7 of the Companies (Accounts) Rules 2014;

e. The matter described in the Basis for Qualified Opinion paragraph above in ouropinion may have adverse effect on the functioning of the Company.

f. On the basis of written representations received from the directors as on March 312016 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of section 164(2) of theAct.

g. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B" and

h. With respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

(i) The Company has disclosed the impact of pending litigation on its financialposition in its standalone financial statements – Refer Note 25 to the financialstatements;

(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.

(iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For M.V.Ghelani & Co.
Chartered Accountants
Firm Regn. No. 119077W
Date: May 27 2016 M.V.Ghelani
Place: Mumbai Proprietor
Membership No. 031105

ANNEXURE A TO THE AUDITOR’S REPORT ON THE ACCOUNTS FOR THE YEAR ENDED 31STMARCH 2016.

Annexure referred to in paragraph 6 under the heading "Report on Other Legal andRegulatory Requirements" of our report of even date to the members of Nagpur Powerand Industries Limited on the audit of the standalone financial statements for the yearended 31st March 2016.

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) As explained to us the fixed assets have been physically verified by themanagement during the year in accordance with a phased programme of verification which inour opinion is reasonable having regard to the size of the company and nature of itsfixed assets. The discrepancies noticed on verification between the physical fixed assetsand the book records were not material having regard to nature and size of the operationsof the Company and the same have been properly dealt with in books of account.

(c) According to information and explanations given to us and on the basis of documentsand records produced before us the title deeds of immovable properties are held in thecurrent or former name of the company.

(ii) As explained to us the inventories have been physically verified during the yearby the management at reasonable intervals.In our opinion and according to information andexplanation given to us except in respect of stock of accumulated waste referred toin the Basis for Qualified Opinion Paragraph 4 of our report and Note 14.1 of theaccompanying financial statement the company is maintaining proper records of inventory.Thediscrepancies noticed on verification between the physical stocks and the book recordswere not material having regard to the size of the operations of the Company and the samehave been properly dealt with in books of accounts.

(iii) The Company has granted loans to one party covered in the register maintainedunder section 189 of the Companies Act 2013 ("the Act):

(a) The above loan has been given to an entity at an interest rate of 10% p.a. whereinthe company has also made a strategic investment in its Equity and is without anystipulation as regards to its repayment. In view of the controlling interest and longstrategies of the management the terms and conditions of this loan are not prima facieprejudicial to the interest of the company.

(b) In view of what is stated at (a) above there is no schedule of repayment ofprincipal and payment of interest and there is no repayment or receipt during the year.

(c) In view of what is stated at (a) above the amount overdue cannot be determined andtherefore the question of company taking reasonable steps for recovery of principal amountand interest cannot be commented upon.

(iv) In our opinion and according to the information and explanation given to us theCompany has complied with the provisions of section 185 and 186 of the Act in respect ofloans making investments and providing guarantees and securities as applicable.

(v) The Company has not accepted any deposits from the public within the meaning of thedirectives issued by the Reserve Bank of India and the provisions of sections 73 to 76 orany other relevant provisions of the Companies Act and the rules framed thereunder.

(vi) According to the information and explanations given to us the maintenance of costrecords was not prescribed by the Central Government under section 148(1) of the Act forany of the activities of the Company.

(vii) (a) According to the information and explanations given to us the Company isgenerally regular in depositing undisputed statutory dues including provident fundemployees’ state insurance income tax sales tax wealth tax service tax duty ofcustom duty of excise value added tax cess and other statutory dues applicable to itwith appropriate authorities.

According to the information and explanations given to us no undisputed amounts payablein respect of provident fund employees’ state insurance income tax sales taxwealth tax service tax duty of custom duty of excise value added tax cess and otherstatutory dues applicable to it were in arrears as at 31st March 2016 for aperiod of more than six months from the date they become payable.

(b) According to the information and explanations given to us there are no dues ofsales tax income tax custom duty service tax excise duty or cess which have not beendeposited on account of any dispute except as stated below:

Name of the Statute Nature of dues Amount (Rs. in lacs) Forum where dispute is pending
West Bangal Sales tax Act 1957 - Sales tax Case at Calcutta. Sales tax demand of three Asst. Years 2.43 Commissioner of Sales Tax (Appeal) Calcutta.
Uttar Pradesh Sales Tax Act 1957- Sales tax case at Kanpur. Sales tax demand for the Asst. Year 1980-81 3.33 Commissioner of Sales Tax (Appeal) Kanpur.
B.S.T Act 1959 B.S.T & C.S.T 195.45 JT. Commissioner of sales tax (Appeals) Nagpur
Central Excise Act 1944 Customs Act 1962 & Finance Act 1994. Excise Duty Case at Nagpur 26.58 Commissioner of Customs & Central Exice (Appeals) Nagpur.
Customs Act 1962 Customs and Advalorem Duty 117.43 Commissioner of Customs (E.P.) and Directorate General of Foreign Trade (DGFT)
The Bombay Stamp Act 1958 Stamp duty 45.83 Supreme Court of India
Other statutory dues Entry tax 4.58 Tahsildar
The Income Tax Act 1961 Income tax demand under section 156 for the Asst. Year 2010-11 16.72 Income Tax Appellat (Tribunal).
Income Tax Act 1961 Income Tax demand 0.13 Commissioner of Income Tax (Appeal) Mumbai
TOTAL 412.48

(viii) According to the information and explanations given to us and the records madeavailable to us the Company has not defaulted in repayment of dues to any financialinstitution banks or debenture holders during the year.

(ix) According to the information and explanations given to us the Company has notraised money by way of initial public offer or further public and raised the term loans(being car loan) was applied for the purpose for which the loan was obtained.

(x) Based on the audit procedures performed by us to the best of our knowledge andbelief and according to the information and explanations given to us by the Management nofraud by the Company or fraud on the Company by its officers or employee has been noticedor reported during the year.

(xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable to the Company

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with related parties are incompliance with section 177 and 188 of the Act where applicable. The details of suchrelated party transactions have been disclosed in the financial statements as requiredunder Accounting Standards.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

(xv) According to the information and explanations given to us and based on thedocuments and records produced before us the company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable to the Company.

(xvi) According to the information and explanation given to us and based on thedocuments and records produced before us and relying on an expert advicethe Company isnot required to be registered under section 45-IA of the Reserve Bank of India Act 1934.

For M.V.Ghelani & Co.
Chartered Accountants
Firm Regn. No. 119077W
Date: May 27 2016 M.V.Ghelani
Place: Mumbai Proprietor
Membership No. 031105

ANNEXURE B TO THE AUDITOR’S REPORT ON THE ACCOUNTS FOR THE YEAR ENDED 31STMARCH 2016

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 (the Act)

1 We have audited the internal financial controls over financial reporting of NAGPURPOWER AND INDUSTRIES LIMITED ("the Company") as of 31st March 2016 inconjunction with our audit of the financial statements of the company for the year endedon that date.

Management’s Responsibility for Internal Financial Controls

2 The Company’s management is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India (‘ICAI’).These responsibilities include the design implementation and maintenance of adequateinternal financial controls that operate effectively for ensuring the orderly andefficient conduct of its business including adherence to company’s policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditor’s Responsibility

3 Our responsibility is to express an opinion on the Company’s Internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by the ICAI anddeemed to be prescribed under Section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofinternal financial controls both issued by the ICAI. Those standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting were established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

4 A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany’s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

5 Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

6 In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2016based on the internal financial controls over financial reporting criteria established bythe Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls over Financial Reporting issued bythe ICAI.

For M.V.Ghelani & Co.
Chartered Accountants
Firm Regn. No. 119077W
Date: May 27 2016 M.V.Ghelani
Place: Mumbai Proprietor
Membership No. 031105