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Navkar Builders Ltd.

BSE: 531494 Sector: Infrastructure
NSE: N.A. ISIN Code: INE268H01010
BSE 15:14 | 22 Feb 20.45 -1.05
(-4.88%)
OPEN

21.20

HIGH

21.20

LOW

20.45

NSE 05:30 | 01 Jan Navkar Builders Ltd
OPEN 21.20
PREVIOUS CLOSE 21.50
VOLUME 1760
52-Week high 27.65
52-Week low 14.65
P/E
Mkt Cap.(Rs cr) 36
Buy Price 0.00
Buy Qty 0.00
Sell Price 20.45
Sell Qty 14940.00
OPEN 21.20
CLOSE 21.50
VOLUME 1760
52-Week high 27.65
52-Week low 14.65
P/E
Mkt Cap.(Rs cr) 36
Buy Price 0.00
Buy Qty 0.00
Sell Price 20.45
Sell Qty 14940.00

Navkar Builders Ltd. (NAVKARBUILDERS) - Auditors Report

Company auditors report

TO THE MEMBERS OF NAVKAR BUILDERS LIMITED

Report on Audited Financial Statements

We have audited the accompanying financial statements of Navkar Builders Limited("the Company") which comprise the Balance Sheet as at March 31 2017 and theStatement of Profit and Loss and Cash Flow Statement for the period then ended and asummary of significant 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 financial statements that give a true and fair view of the financial position andfinancial performance of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section 133of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement. An audit involvesperforming procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditor's judgment includingthe assessment of the risks of material misstatement of the financial statements whetherdue to fraud or error.

In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the financial statements that give a true andfair view in order to design audit procedures that are appropriate in the circumstancesbut not for the purpose of expressing an opinion on whether the Company has an adequateinternal financial controls system over financial reporting in place and the operatingeffectiveness of such controls. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made by theCompany's Board of Directors as well as evaluating the overall presentation of thefinancial statements. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements read together with the notes thereon give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India to the extentapplicable;

1. In the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2017;

2. In the case of the Statement of Profit and Loss of the profit / (Loss) of theCompany for the year ended on that date; and

3. In the case of the Cash Flow Statement of the cash flows of the Company for theyear 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 subsection (11) of section 143 ofthe Act we give in the "Annexure A" a statement on the matters specifiedin the paragraph 3 and 4 of the Order to the extent applicable.

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 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 as submitted to us;

(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014 to the extent applicable;

(e) On the basis of the written representations received from the directors ason March 31 2017 taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2017 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 overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate 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. There were no pending litigations which would impact the financial position of the

Company. ii. The Company has made provision as required under the applicable law oraccounting standards for material foreseeable losses if any and as required onlong-term contracts including derivative contracts. iii. There were no amounts which wererequired to be transferred to the Investor Education and Protection Fund by the Company.iv. The Company has provided requisite disclosures in its financial statements as toholding as well as dealings in Specified Bank Notes during the period from 8 November2016 to 30 December 2016 and these are in accordance with the books of accountsmaintained by the Company. Refer Note no 30 to the financial statement.

For SVK & ASSOCIATES

Chartered Accountants Firm No. – 118564W

Sd/- Shilpang V. Karia

Partner

M. No. – 102114

Place: Ahmedabad

Date: 29th May 2017

"Annexure – A" to The Auditor's Report

(Referred to in paragraph 1 of our Report of even date on the Statement of Accounts ofNAVKAR BUILDERS LIMITED for the year ended on 31st March 2017) i. FIXED ASSETS: a. Inour opinion the company has generally maintained proper records showing full particularsincluding quantitative details and situation of fixed assets on the basis of availableinformation. b. As explained to us the fixed assets have been physically verified by themanagement during the year in a phased periodical manner which in our opinion isreasonable having regard to size of the company and nature of its assets. No materialdiscrepancies with respect to book records were noticed on such verification. c. Asexplained to us and on the basis of our examination of the books of accounts the deeds ofimmovable properties are held in the name of the company.

ii. INVENTORIES: a. According to the information and explanation given to us theinventories have been physically verified during the year by the management and in ouropinion the frequency of verification is reasonable. b. As explained to us no materialdiscrepancies were noticed on physical verification of inventories as compared to the bookrecords.

iii. LOANS:

According to the information and explanations given to us and on the basis of ourexamination of the books of account the company has not granted loans secured orunsecured to companies firms Limited Liability Partnerships or other parties covered inthe register maintained under Section 189 of the Companies Act 2013 during the yearunder review except Rs. 91.61 lacs given to one party in preceding years containing Nilrate of interest and repayable on demand. iv. LOANS INVESTMENTS & GUARANTEES:

According to the information and explanations given to us and on the basis of ourexamination of the books of account the company has not granted any loans directly orindirectly to any directors or person or entities in which directors are interested and/orhas not given any guarantee or provided any security in connection with loan taken by themexcept Loan of Rs. 91.61 lacs given to one party in preceding years contains Nil rate ofinterest and repayable on demand. According to the information and explanations given tous and on the basis of our examination of the books of account the company has compliedwith the provisions of section 186 in respect of investments made in securities of otherbody corporate.

v. DEPOSITS:

As explained to us the company has not accepted any loans or deposits within meaningof Section 73 to 76 of the Companies Act 2013 read with Rule 2(b) of the Companies(Acceptance of Deposit's) Rules 2014 during the year under review.

vi. COST RECORDS:

According to the information and explanations provided by the management to us and tothe best of our knowledge the Company is not engaged in production of any such goods orproduction of any such services for which the Central Government has prescribedparticulars relating to utilization of material or labour or other items of cost. Hencethe provisions of section 148(1) of the Act do not apply to the Company.

vii. STATUTORY DUES: a. As per information and explanation available to us undisputedstatutory dues including provident fund investor education and protection fundemployee's state insurance income-tax sales-tax wealth tax service tax custom dutyexcise duty value added tax cess and other statutory dues have been generally regularlydeposited with the appropriate authorities applicable to it though there had been somedelays in certain cases. Further according to information explanation given to us Noundisputed statutory dues applicable to the company were outstanding as at 31stMarch 2017 for a period of more than 6 months from the date they become payable exceptDividend Distribution Tax of Rs. 17.86 lacs related to dividend declared in the year2016-17. b. According to the information and explanation available to us there are nodues outstanding on account sales tax income tax wealth tax service tax custom dutyexcise duty cess on account of dispute.

viii. DUES TO FINANCIAL INSTITUTION BANKS OR DEBENTURE

HOLDER:

Based on our audit procedures and as per information and explanation given to us by themanagement of the company we are of the opinion that company has not defaulted inrepayment of dues to financial institutions and banks during the year under review. Thecompany has not issued any debentures.

ix. TERM LOANS & PUBLIC ISSUE:

Based on the audit procedures performed and according to the information explanationsgiven to us on an overall basis the existing as well as new term loans have been appliedfor the purpose for which those were obtained. The company has not raised any moneythrough a public issue during the year under review.

x. FRAUD:

Based upon the audit procedures performed and as per the information and explanationgiven by the management we report that no fraud by the company or any fraud on thecompany by its officers / employees has been noticed or reported during the course of ouraudit.

xi. MANAGERIAL REMUNERATION:

As per the information and explanations given to us the company has complied with theprovisions of section 197 of the Companies Act 2013 regarding managerial remuneration tothe extent applicable. xii. NIDHI COMPANY:

In our opinion the company is not a Nidhi company. Consequently the provisions ofclause (xii) of the order are not applicable to the company.

xiii. RELATED PARTY TRANSACTIONS:

Based upon the audit procedures performed and as per the information and explanationgiven by the management all the transactions with the related parties are in compliancewith Section 177 and 188 of the Companies Act 2013 and have been duly disclosed in thefinancial statements as required by the applicable accounting standards.

xiv. PREFERENTIAL ALLOMENT / PRIVATE PLACEMENT:

Based on the audit procedures performed and according to the information andexplanations given to us the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Consequently the provisions of clause (xiv) of the order are not applicable tothe company.

xv. NON-CASH TRANSACTIONS:

Based on the audit procedures performed and according to the information andexplanations given to us the company has not entered into any non-cash transactions withdirectors or persons connected with him. Consequently the provisions of clause (xv) ofthe order are not applicable to the company.

xvi. REGISTRATION UNDER SECTION 45-IA OF RBI ACT 1934:

Since the company is not an NBFC the provisions of clause (xvi) of the order are notapplicable to the company.

For SVK & ASSOCIATES

Chartered Accountants Firm No. – 118564W

Sd/- Shilpang V. Karia

Partner

M. No. – 102114

Place: Ahmedabad

Date: 29th May 2017

"Annexure – B" to The Auditor's Report

(Referred to in paragraph 2(f) of our Report of even date on the Statement of Accountsof NAVKAR BUILDERS LIMITED for the year ended on 31st March 2017)

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 NavkarBuilders Limited ("the Company") as of 31st March 2017 inconjunction with our audit of financial statements of the company for the year ended onthat 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 (the ‘Guidance Note').These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating 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 Act.

Auditors' 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 issued by ICAI and deemedto 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 and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls 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 judgement 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 controls systemover financial reporting.

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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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

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 2017 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 SVK & ASSOCIATES

Chartered Accountants Firm No. – 118564W

Sd/- Shilpang V. Karia

Partner

M. No. – 102114

Place: Ahmedabad Date: 29th May 2017