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Navkar Corporation Ltd.

BSE: 539332 Sector: Others
NSE: NAVKARCORP ISIN Code: INE278M01019
BSE LIVE 15:40 | 21 Sep 192.75 1.10
(0.57%)
OPEN

194.35

HIGH

196.00

LOW

191.10

NSE 15:52 | 21 Sep 192.65 -0.15
(-0.08%)
OPEN

193.00

HIGH

194.05

LOW

191.55

OPEN 194.35
PREVIOUS CLOSE 191.65
VOLUME 1557
52-Week high
52-Week low
P/E 29.29
Mkt Cap.(Rs cr) 2,749
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 194.35
CLOSE 191.65
VOLUME 1557
52-Week high
52-Week low
P/E 29.29
Mkt Cap.(Rs cr) 2,749
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Navkar Corporation Ltd. (NAVKARCORP) - Auditors Report

Company auditors report

TO THE MEMBERS OF NAVKAR CORPORATION LIMITED REPORT ON THE STANDALONE IND-AS FINANCIALSTATEMENTS

1. We have audited the accompanying standalone Ind-

AS financial statements of Navkar Corporation Limited ("the Company") whichcomprise the Balance Sheet as at March 31 2017 the Statement of Profit and Loss(including Other Comprehensive Income) the Cash Flow Statement and the Statement ofChanges in Equity for the year then ended and a summary of the significant accountingpolicies and other explanatory information.

Management's responsibility for the standalone ind-as financial statements

2. 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 Ind-AS financial statements to give a true and fair view of the financialposition financial performance (including other comprehensive income) cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind-AS) specified in theCompanies (Indian Accounting Standards) Rules 2015 (as amended) under Section 133 of theAct. This responsibility also includes maintenance of adequate accounting records inaccordance 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 standalone Ind-AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error auditors' responsibility

3. Our responsibility is to express an opinion on these standalone Ind-AS financialstatements based on our audit.

4. We have taken into account the provisions of the Act and the Rules made thereunderincluding the accounting and auditing standards and matters which are required to beincluded in the audit report under the provisions of the Act and the Rules made thereunder

5. We conducted our audit of the standalone Ind-AS financial statements in accordancewith the Standards on Auditing specified under Section 143(10) of the Act and otherapplicable authoritative pronouncements issued by the Institute of Chartered Accountantsof India. Those Standards and pronouncements require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe standalone Ind-AS financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the standalone Ind-AS financial statements. The procedures selecteddepend on the auditors' judgment including the assessment of the risks of materialmisstatement of the standalone Ind-AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind-AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind-ASfinancial statements.

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

Opinion

8. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind-AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2017 and its profit (including other comprehensive income) itscash flows and the changes in equity for the year ended on that date. other Matter

9. The financial information of the Company for the year ended March 31 2016 and thetransition date opening balance sheet as at April 1 2015 included in these standaloneInd-AS financial statements are based on the previously issued statutory financialstatements for the years ended March 31 2016 and March 31 2015 prepared in accordancewith the Companies (Accounting Standards) Rules 2006 (as amended) which were audited byus on which we expressed an unmodifiedopinion dated May 27 2016 and June 17 2015respectively. The adjustments to those financial statements for the differences inaccounting principles adopted by the Company on transition to the Ind-AS have been auditedby us.

Our opinion is not qualified in respect of this matter. report on other Legal andregulatory requirements

10. As required by ‘the Companies (Auditor's Report) Order 2016' issued by theCentral Government of India in terms of sub-section (11) of section 143 of the Act(hereinafter referred to as the "Order") and on the basis of such checks of thebooks and records of the Company as we considered appropriate and according to theinformation and explanations given to us we give in the Annexure B a statement on thematters specified in paragraphs 3 and 4 of the Order.

11. As required by Section 143(3) of the Act we report that: a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit; b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books; c) The Balance Sheet the Statement of Profit (including othercomprehensive income) the Cash Flow Statement and the Statement of Changes in Equitydealt with by this Report are in agreement with the books of account; d) In our opinionthe aforesaid standalone Ind-AS financial statements comply with the Indian AccountingStandards specified under Section 133 of the Act; e) On the basis of the writtenrepresentations received from the directors as on March 31 2017 taken on record by theBoard of Directors none of the directors is disqualified as on March 31 2017 from beingappointed as a director in terms of Section 164(2) of the Act; f) With respect to theadequacy of the internal financial controls over financial reporting of the Company andthe operating effectiveness of such controls refer to our separate Report in annexurea; and g) With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our knowledge and belief and according to the information andexplanations given to us: (i) The Company has disclosed the impact of pending litigationsas at March 31 2017 on its financial position in its standalone Ind-AS financialstatements Refer Note 46; (ii) The Company did not have any long-term contracts includingderivative contracts as at March 31 2017; (iii) There were no amounts which were requiredto be transferred to the Investor Education and Loss and Protection Fund by the Companyduring the year ended March 31 2017; and (iv) The Company has provided requisitedisclosures in the financial statements as to holdings as well as dealings in SpecifiedBank Notes during the period from November 8 2016 to December 30 2016. Based on auditprocedures and relying on the management representation we report that the disclosures arein accordance with books of account maintained by the Company and as produced to us by theManagement Refer Note 58.

For s. k. patodia & associates
Chartered Accountants
Firm Registration Number: 112723W
arun poddar
Place: Mumbai Partner
Date: May 29 2017 Membership Number: 134572

ANNEXURE A TO INDEPENDENT AUDITORS' REPORT

referred to in paragraph 11(f) of the independent auditors' report of even date to themembers of Navkar Corporation Limited on the standalone financial statements for the yearended March 31 2017.

report on the internal financial Controls under Clause (i) of sub-section 3 of section143 of the act

1. We have audited the internal financial controls over financial reporting of NavkarCorporation Limited ("the Company") as of March 31 2017 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

Management's responsibility for internal financial Controls

2. 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 Act. auditors' 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 deemed to be prescribedunder section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the Institute of Chartered Accountants of India (ICAI). Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the 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.

5. 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

6. 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 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

7. 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

8. 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 March 31 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 s. k. patodia & associates
Chartered Accountants
Firm Registration Number: 112723W
arun poddar
Place: Mumbai Partner
Date: May 29 2017 Membership Number: 134572

ANNEXURE B TO INDEPENDENT AUDITORS' REPORT

referred to in paragraph 10 of the independent auditors' report of even date to themembers of Navkar Corporation Limited on the standalone financial statements as of and forthe year ended March 31 2017. i. (a) The Company is maintaining proper recordsshowing full particulars including quantitative details and situation of fixed assets.

(b) The fixed assets are physically verified by Management according to a phasedprogramme designed to cover all the items over a period of 3 years which in our opinionis reasonable having regard to the size of the Company and the nature of its assets.Pursuant to the programme a portion of the fixed assets has been physically verified bythe Management during the year and no material discrepancies have been noticed on suchverification.

(c) The title deeds of immovable properties as disclosed in Note 5 and 6 on PropertyPlant and Equipment and Investment Property to the financial statements are held in thename of the Company except for certain freehold lands having gross block value of Rs1940.07 lakhs situated at different locations which are in the name of the promoters ofthe Company and are yet to be transferred in the name of the Company as follows:

Sr. Nature of No. Immovable Property Total number of cases Whether leasehold/ freehold Gross block (Rs In lakhs) Net block (Rs In lakhs)
1. Land 17 Freehold 1940.07 1940.07

ii. The physical verification of inventory have been conducted at reasonable intervalsby the Management during the year. The discrepancies noticed on physical verification ofinventory as compared to book records were not material and have been appropriately dealtwith in the books of accounts. iii. The Company has granted unsecured loans to onecompany covered in the register maintained under Section 189 of the Act.

(a) In respect of the aforesaid loans the terms and conditions under which such loanswere granted are not prejudicial to the Company's interest. (b) In respect of theaforesaid loan the schedule of repayment of principal and payment of interest has beenstipulated and the party is repaying the principal amounts as stipulated and is alsoregular in payment of interest as applicable.

(c) In respect of the aforesaid loans there is no amount which is overdue for morethan ninety days. iv. In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of Section 185 and 186 of theCompanies Act 2013 in respect of the loans and investments made and guarantees andsecurity provided by it.

v. The Company has not accepted any deposits from the public within the meaning ofSections 73 74 75 and 76 of the Act and the Rules framed there under to the extentnotified. vi. The Central Government of India has not specified the maintenance of costrecords under sub-section (1) of Section 148 of the Act for any of the products of theCompany. vii. (a) According to the information and explanations given to us and therecords of the Company examined by us in our opinion the Company is generally regular indepositing undisputed statutory dues in respect of income-tax and service-tax thoughthere has been a slight delay in a few cases and is regular in depositing undisputedstatutory dues including provident fund employees' state insurance sales-tax duty ofcustoms duty of excise value added tax cess and other material statutory dues asapplicable with the appropriate authorities. (b) According to the information andexplanations given to us and the records of the Company examined by us there are no duesof income-tax sales-tax duty of customs duty of excise value added tax which have notbeen deposited on account of any dispute. The particulars of dues of service tax as atMarch 31 2017 which have not been deposited on account of a dispute are as follows:

Name of the statute Nature of dues amount (Rs in lakhs) period to which the amount relates forum where the dispute is pending
The Finance Act 1994 Service Tax 203.73 October 2011 to March 2012 The Commissioner Central Excise Customs and Service Tax
The Finance Act 1994 Service Tax 22.26 FY 2009-2010 The Commissioner Central Excise Customs and Service Tax

viii. According to the records of the Company examined by us and the information andexplanation given to us the Company has not defaulted in repayment of loans or borrowingsto any financial institution or bank as at the balance sheet date. The Company does nothave any loans or borrowings from Government. Further the Company has not issued anydebentures. ix. In our opinion and according to the information and explanations given tous the money raised by way of initial public offer and term loans were applied for thepurposes for which these are raised except un-utilized balance in respect of net proceedsfrom Initial Public Offering (IPO) as at balance sheet date Rs 11636.43 lakhs. Out of theabove un-utilized balance Rs 11608.88 lakhs and Rs 27.55 lakhs are kept in fixed depositand monitoring current account respectively for future utilisation (also refer note 52 tothe financial statements). x. During the course of our examination of the books andrecords of the Company carried out in accordance with the generally accepted auditingpractices in India and according to the information and explanations given to us we haveneither come across any instance of material fraud by the Company or on the Company by itsofficers or employees noticed or reported during the year nor have we been informed ofany such case by the Management. xi. The Company has paid/ provided managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the

Act. xii. As the Company is not a Nidhi Company and the Nidhi Rules 2014 are notapplicable to it the provisions of Clause 3(xii) of the Order are not applicable to theCompany. xiii. The Company has entered into transactions with related parties incompliance with the provisions of Sections 177 and 188 of the Act. The details of suchrelated party transactions have been disclosed in the financial statements as requiredunder the Indian Accounting Standard (Ind-AS) 24 "Related Party Disclosures"specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. xiv. The Company has not made any preferential allotment or private placementof shares or fully or partly convertible debentures during the year under review.Accordingly the provisions of Clause 3(xiv) of the Order are not applicable to theCompany. xv. The Company has not entered into any non-cash transactions with its directorsor persons connected with him. Accordingly the provisions of Clause 3(xv) of the Orderare not applicable to the Company. xvi. The Company is not required to be registered underSection 45-IA of the Reserve Bank of India Act 1934. Accordingly the provisions ofClause 3(xvi) of the Order are not applicable to the Company.

For s. k. patodia & associates
Chartered Accountants
Firm Registration Number: 112723W
arun poddar
Place: Mumbai Partner
Date: May 29 2017 Membership Number: 134572