Navkar Builder Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Navkar Builder Limited ("theCompany") which comprise the Balance Sheet as at March 31 2015 and the Statementof Profit and Loss and Cash Flow Statement for the period then ended and a summary ofsignificant accounting policies and other explanatory information.
Management's Responsibility for the 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 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.
Our responsibility is to express an opinion on these financial statements based on ouraudit.
We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.
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 the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by 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.
In our opinion and to the best of our information and according to the explanationsgiven to us the 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 affairs of the Company as at March31 2015 and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order 2015 ('the Order') issued by theCentral Government of India in terms of subsection (11) of section 143 of the Act we givein the Annexure a statement on the matters specified in the paragraph 3 and 4 of theOrder to the extent applicable.
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 thebest of 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 bythe Company so far as it appears from our examination of those books.
(c) The Balance Sheet the Profit and Loss Statement 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 onMarch 31 2015 taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2015 from being appointed as a director in terms of Section164 (2) of the Act.
(f) 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 does not have any pending litigations which may have impact on itsfinancial position in its financial statements;
ii. The Company did not have any long-term contracts including derivative contracts forwhich 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.
J.B. Shah & Co Chartered Accountants
Jasmin B. Shah Proprietor
Firm Reg. No. 121333W
Annexure to Independent Auditor's Report (Referred to in our report of even date)
1) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of the fixed assets.
(b) The company has a regular programme of physical verification of its fixed assetswhich in our opinion is reasonable having regard to the size of the Company and thenature of its assets. In accordance with such programme a major portion of the fixedassets have been physically verified by the management during the period. No materialdiscrepancies were noticed on such verification. In our opinion the Company has notdisposed off any major fixed assets during the period.
2) (a) The inventories have been physically verified by the management at reasonableintervals during the year. In our opinion the frequency of verification is reasonablehaving regard to the size of the Company and the nature of its business.
(b) The procedures for the physical verification of inventory followed by managementare reasonable and adequate in relation to the size of the company and the nature of itsbusiness.
(c) The company has maintained proper records of inventories. As explained to us therewas no material discrepancies noticed on physical verification of stock as compared tobook records.
3) According to the information and explanation given to us the company has grantedloans secured or unsecured to companies firms or other parties covered in the registerrequired to be maintained under Section 189 of the Act.
4) In our opinion and according to the information and explanations given to us thereis an adequate internal control system commensurate with the size of the Company and thenature of its business with regard to purchase of inventories and fixed assets and withregard to sale of goods and services. We have not observed any major weakness in theinternal control system during the course of the audit.
5) The company has not accepted any deposits from the public in accordance with theprovisions of Section 73 to 76 of the Act and rules framed thereunder.
6) According to the information and explanation given to us the central government hasnot prescribed for the maintenance of cost records under section 148 (1) of the CompaniesAct 2013 for operations carried out by the company.
7) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/accrued in the books ofaccount in respect of undisputed statutory dues including Provident Fund Employees' StateInsurance Income Tax Sales Tax/ Value Added Tax Entertainment Tax Wealth Tax ServiceTax Customs Duty Excise Duty and material statutory dues have generally been regularlydeposited during the year by the Company with the appropriate authorities.
According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Employees' State Insurance Income Tax Sales Tax/Value Added Tax Entertainment Tax Wealth Tax Service Tax Customs Duty Excise Duty andother material statutory dues were in arrears as at 31st March 2015 for aperiod of more than six months from the date they became payable.
(b) According to the information and explanation given to us the Company does not haveany disputed dues required to be paid to the government authorities.
(c) According to the information and explanations given to us the company does not haveany amounts which were required to be transferred to the investor education and protectionfund in accordance with the relevant provisions of the Companies Act 1956 (1 of 1956).
8) The company does not have any accumulated losses at the end of financial year andhas not incurred cash losses in the financial year and immediately preceding financialyear.
9) In our opinion and according to the information and explanation given to us theCompany has not defaulted during the year in repayment of dues to its financialinstitutions and bankers. The company did not have any outstanding debentures during theyear.
10) According to the information and explanation give to us the company has not givenany guarantee for loans taken by others from banks or financial institutions.
11) In our opinion and according to the information and explanation given to us termloans were applied for the purpose for which the loans were obtained.
12) According to the information and explanation given to us no material fraud on orby the company has been noticed or reported during the course of our audit.
For J.B. Shah & Co
Jasmin B. Shah
Firm Reg. No. 121333W