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Nava Bharat Ventures Ltd.

BSE: 513023 Sector: Others
NSE: NBVENTURES ISIN Code: INE725A01022
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OPEN 122.00
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VOLUME 8783
52-Week high 155.00
52-Week low 103.00
P/E 28.78
Mkt Cap.(Rs cr) 2,184
Buy Price 122.40
Buy Qty 10.00
Sell Price 0.00
Sell Qty 0.00
OPEN 122.00
CLOSE 120.25
VOLUME 8783
52-Week high 155.00
52-Week low 103.00
P/E 28.78
Mkt Cap.(Rs cr) 2,184
Buy Price 122.40
Buy Qty 10.00
Sell Price 0.00
Sell Qty 0.00

Nava Bharat Ventures Ltd. (NBVENTURES) - Auditors Report

Company auditors report

To

The Members of

Nava Bharat Ventures Limited

Hyderabad.

REPORT ON THE STANDALONE FINANCIAL STATEMENTS

We have audited the accompanying Standalone Financial Statements of NAVA BHARATVENTURES LIMITED ("the Company") which comprise the Balance Sheet as at 31stMarch 2016 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese Standalone Financial Statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting 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 of 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.

AUDITORS' RESPONSIBILITY

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 andthe disclosures in the Standalone Financial Statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe Standalone Financial Statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Standalone Financial Statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the Financial Statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Standalone Financial Statements.

OPINION

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Financial Statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2016 and its Profit and its cash flows for the year ended on that date.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS:

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure A a statement on the matters specified in paragraphs 3and 4 of the Order.

2. As required by Section 143 (3) of the Act we report that:

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books

(c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid Standalone Financial Statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms of Section164 (2) of the Act.

(f) 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".

(g) 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 litigations on its financialposition in its financial statements - Refer Note 40 to the financial statements

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

for rahmayya & Co.

Chartered Accountants

Firm's Registration Number: 000513S

P. Chandramouli

Partner

Membership Number: 025211

Place : Hyderabad

Date : 30th May 2016

Annexure -A to the Auditors' Report:

The Annexure referred to in Para 1 under the heading of "Report on Other Legal andRegulatory Requirements" of our report of even date to the members of NAVA BHARATVENTURES LIMITED HYDERABAD for the year ended March 312016.

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

b. As explained to us the management has physically verified the fixed assets duringthe year and there is a regular programme of physical verification which in our opinionis reasonable having regard to the size of the Company and the nature of the assets. Nodiscrepancies were noticed on such verification.

c. According to the information and explanations furnished by the Management and basedon the records examined by us regarding the title deeds of the immovable property otherthan self constructed buildings and including investment property we report that:

i. In respect of immovable properties of lands that have been taken on lease anddisclosed as fixed assets in the financial statements the lease agreements are in thename of the company where the Company is the lessee in the agreements.

ii. The title in respect of the land costing Rs.15.71 lakhs admeasuring 14.06 acres and23 guntas is yet to be transferred in the name of the Company.

iii. The title in respect of land costing Rs.26.06 lakhs admeasuring 5.05 acresallotted by APIIC Limited is yet to be transferred in the name of the Company.

iv. The long term lease period relating to the land situated at Samalkot East GodavariDistrict on which the Buildings of Sugar Manufacturing facility were constructed wasexpired on 12.8.1996.

v. In respect of all other immovable properties we are given to understand that thetitle deeds are with Security trustee and are held in the name of the Company.

2. The inventory has been physically verified during the year by the management. In ouropinion the frequency of verification is reasonable. No material discrepancies werenoticed on such verification between the physical stocks and book records.

3. a. During the year the Company has granted unsecured loans to a Company covered inthe register maintained under Section 189 of the Companies Act 2013.

b. In our opinion and according to the information and explanations given to us theterms and conditions of the grant of such loan are not prima facie prejudicial to theinterest of the Company

c. The schedule of repayment of principal and payment of interest has been stipulatedand the repayments are as per the said stipulations.

d. There were no overdue amounts in respect of the said loans.

4. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made.

5. The Company has not accepted any deposits from the public. Hence the provisions ofSections 73 to 76 or any other relevant provisions of the Companies Act 2013 and therules framed there under do not apply to this Company.

6. The maintenance of cost records has been specified by the Central Government undersection 148(1) of the C ompanies Act 201 3 for the Prod ucts of C ompany. We have broadlyreviewed the cost records maintained by the Company pursuant to sub-section (1) of section148 of the Companies Act 2013 and are of the opinion that prime facie the prescribedaccounts and records have been made and maintained. We have however not made a detailedexamination of the cost records with a view to determine whether they are accurate orComplete.

7. a. According to the records the company is generally regular in depositingundisputed statutory dues including provident fund employees' state insuranceincome-tax sales-tax service tax duty of customs duty of excise value added tax cessand all other material statutory dues with the appropriate authorities. However theextent of the arrears of outstanding statutory dues as at March 31 2016 for a period ofmore than six months from the date they became payable are as follows.

UNDISPUTED STATUTORY DUES

Name of the Statute Nature of the dues Amount Period to which the amount relates Due Date Date of payment
AP AL (CFNAP) Act 2006 Land Conversion Tax 6466061 2010 -11 - Not yet paid
Orissa Electricity Duty Act 1961 Electricity Duty 1091227 2008-09 30.04.2009 Not yet paid
325551 2009-10 30.04.2010
90239 2012-13 30.04.2013
Customs Act1962 Customs Duty 1761860 1985 - 87 Not yet paid
304945 2008-09 30.04.2009
156781 2009-10 30.04.2010
Go AP 156867 2010-11 30.04.2011
(I & CAD Dept.) Water Charges 260127 2011-12 30.04.2012 Not yet paid
131924 2012-13 30.04.2013
152700 2013-14 30.04.2014
135219 2014-15 30.04.2015
52560 2008-09 30.04.2009
OSPCB Water Cess 60994 2009-10 30.04.2010 Not yet paid
11518 2011-12 30.04.2012
12484 2008-09 31.03.2009 Not yet paid
Go AP APPCB Water Cess 15976 2013-14 31.03.2014
13999 2014-15 31.03.2015
The A.P Electricity Duty Act 2003 (as amended) Electricity Duty 7260282 2003-04 to 2007-08 15.04.2008 Not yet paid
- do - - do - 407520 2008- 09 30.04.2009 Not yet paid
437520 May 2010 30.06.2010
251868 Jun 2010 31.07.2010
- do - - do - 535680 July 2010 31.08.2010 Not yet paid
514944 Aug 2010 30.09.2010
5324777 Sept 2010 31.10.2010
- do - - do - 5239126 2003-04 to 2010-11 30.04.2012 Not yet paid
48979 April 2011 31.05.201 1
- do - - do - 645905 May 2011 30.06.201 1 Not yet paid
495380 March 2012 30.04.2012
712759 2012-13 30.05.2013
- do - - do - 559577 2013-14 30.05.2014 Not yet paid
644816 2014-15 30.05.2015
137854 2011-12 31.03.2012
AP Municipalities Act1965 Property Tax 160268 204510 2012- 13 2013- 14 31.03.2013 31.03.2014 Not yet paid
207359 2014-15 31.03.2015
O S Govt. Ground Rent 7592 2009-10 31.03.2010 Not yet paid
5955 2011-12 31.03.2012
East Coast Railways Water way line 180932 2002-03 to 31.03.2010 Not yet paid
Charges 2009-10
Commissioner Municipality Samalkot Welfare Cess 9969 2014-15 Not yet paid
The Finance Act 1994 Service tax 514022 2014-15 30.06.2015 Not yet paid
A.P Excise Act 1968 Establishment Charges 1245672 - - Not yet paid

b. According to the records of the Company and the information and explanations givento us there were no dues of income tax or sales tax or service tax or duty of customs orduty of excise or value added tax have not been deposited on account of any dispute exceptthe following.

DISPUTED STATUTORY DUES

Name of the Statute Nature of Dues Amount Period to which the amount relates Forum where dispute is pending
AP (Ag.Produce & Live Stock) Marketing Act 1966 Agricultural Market Cess 2815396 1980-81 to 1989-90 The Secretary Agricultural Marketing Committee Visakhapatnam
AP Municipalities Act 1965 Property Tax 149952 1995-96 to 2000-01 Hon'ble High Court of AP
-do- -do- 200798 1995-96 to 2000-01 Hon'ble High Court of AP
Central Sales Tax 220130 2004-05 Asst. Commissioner of Sales Tax Range-II Cuttack
Various Sales Tax Acts 6487532 2000-01 STAT Hyderabad
APGST 7935607 2003-04 Asst.Commissioner of Commercial Taxes Warangal
18670865 2004-05 to 2009-10 CESTAT Bangalore
73700285 2012-13 CESTAT Bangalore
Excise Duty 5529064 1997-98 CESTAT New Delhi
13690286 2000-01 to 2001-02 Hon'ble High Court of AP
1190633 2000-01 to 2005-06 Commissioner of Central Excise(Appeals) Visakhapatnam
Central Excise Act 1944 5373098 Oct 2007 - Mar 2016 Commissioner of Central Excise(Appeals) Visakhapatnam
11169906 2009-14 Appeal yet to be filed
Service Tax 1107337 April 2012 - March 2014 Deputy Commissioner of Central Excise Kakinada
1252798 April 2011 - March 2016 Assistant Commissioner of Central Excise Kakinada
48296986 2011-12 Appeal yet to be filed.
The A.P. Electricity Duty Act 2003. Electricity Duty 50079654 2008-09 to 2015-16 Appeal yet to be filed.
The AP NonAgricultural Land Assessment Act 1963 nala TAX 12251 16 1993-94 to 1998-99 Hon'ble High Court of AP

8. In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of loans or borrowings to any financialinstitutions and Banks.

9. In our opinion and according to the information and explanations given to us theterm loans were applied for the purpose for which the loans were raised and the Companydid not raise any money by way of initial public offer or further public offer (includingdebt instruments) during the year.

10. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

11. According to the information and explanations give 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.

12. 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 Companies (Auditor'sReport) Order 2016 is not applicable

13. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the

Act where applicable and details of such transactions have been disclosed in thefinancial statements as required by the applicable accounting standards.

14. According to the information and explanations give 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.

15. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Companies (Auditor's Report) Order 2016 is not applicable.

16. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

for Brahmayya & Co.

Chartered Accountants

Firm's Registration Number: 000513S

P. Chandramouli

Partner

Membership Number: 025211

Place : Hyderabad

Date : 30th May 2016

REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE(I) OF SUB-SECTION 3 OF SECTION143 OF THE COMPANIES ACT 2013 ("THE ACT")

We have audited the internal financial controls over financial reporting of NAVA BHARATVENTURES LIMITED HYDERABAD ("the Company") as of 31 March 2016 in conjunctionwith our audit of the financial statements of the Company for the year ended on that date.

MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

AUDITOR'S RESPONSIBILITY

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 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively 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.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that:

1. pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

2. provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

3. provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

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

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 31 March 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

for Brahmayya & Co.

Chartered Accountants

Firm's Registration Number: 000513S

P. Chandramouli

Partner

Membership Number: 025211

Place : Hyderabad

Date : 30th May 2016