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NPR Finance Ltd.

BSE: 530127 Sector: Financials
NSE: N.A. ISIN Code: INE446D01011
BSE LIVE 11:57 | 22 Sep 24.40 0.15
(0.62%)
OPEN

24.50

HIGH

24.50

LOW

24.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 24.50
PREVIOUS CLOSE 24.25
VOLUME 134
52-Week high 37.05
52-Week low 13.35
P/E 7.05
Mkt Cap.(Rs cr) 15
Buy Price 23.10
Buy Qty 200.00
Sell Price 24.40
Sell Qty 33.00
OPEN 24.50
CLOSE 24.25
VOLUME 134
52-Week high 37.05
52-Week low 13.35
P/E 7.05
Mkt Cap.(Rs cr) 15
Buy Price 23.10
Buy Qty 200.00
Sell Price 24.40
Sell Qty 33.00

NPR Finance Ltd. (NPRFINANCE) - Auditors Report

Company auditors report

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of NPR FINANCELIMITED which comprise the Balance Sheet as at 31st March 2016 theStatement of Profit and Loss and Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information.

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 statement that give a true and fair view of the financialposition financial performance of the company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the company and for preventingand detecting frauds and other irregularities selection and application of appropriateaccounting policies making judgments and estimates that are reasonable and prudent anddesign implementation 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 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 financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the standalonefinancial 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 for the year ended on that date.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditors' Report) Order 2016 issued by the Government ofIndia in terms of sub section (11) of sec 143 of the Companies Act 2013 we annex herewith"Annexure A" on statement on the matters specified in paragraph 3 & 4of the said Order 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 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 and proper returnsadequate for the purposes of our audit have been received from the branches not visited byus.

c. The Balance Sheet the Statement of Profit and Loss & the Cash Flow Statementdealt with by this Report are in agreement with the books of account and with the returnsreceived from the branches not visited by 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.

e. There are no observations or comments on financial transactions or matters whichhave any adverse effect on the functioning of the company.

f. On the basis of written representations received from the directors as on 31stMarch2016 taken on record by the Board of Directors none of the Directors isdisqualified as on 31st March2016 from being appointed as a director in termsof section 164(2) of the Act.

g. There are no qualifications reservations or adverse remarks relating to themaintenance of accounts and other matters connected therewith.

h. 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";

i. During the Course of Audit and according to the information and explanation given tous there was a fraud on the Company by an employee of the company wherein there was amisappropriation of funds to the tune of Rs. 9.45 Lacs (Approx.). This has been reportedby the Internal Auditor and Secretarial Auditor in their reports; and

j. 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 Point No.(ii) of note no. 2.26 of notes to thefinancial 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 at the end of the year.

For R.P.BOOBNA & CO
Chartered Accountants
Registration No. : 304093E
PANKAJ KAKARANIA
Place : Kolkata Partner
Dated : 26th day of May 2016 Membership No. : 053304

Annexure A to the Auditor's Report

The Annexure referred to in our Independent Auditor's Report to the members of thecompany on the standalone financial statements for the year ended 31 March 2016 we reportthat:

As required by the Companies (Auditors' Report) Order 2016 issued by the Government ofIndia in terms of sub section (11) of sec 143 of the Companies' Act 2013 we annexherewith a statement on the matters specified in paragraph 3 & 4 of the said order andon the basis of such checking of the Books and Records as we consider appropriate and theinformation and explanations given to us during the course of our Audit we further reportthat:

(i) a) The company has maintained proper Fixed Assets Register showing full particularsincluding quantitative details and situation of fixed assets.

b) The company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified.

In accordance with this programme certain fixed assets were verified during the yearand no material discrepancies were noticed on such verification.

c) The title deeds of immovable properties have been verified by us and are held in thename of the company. We have relied on the Certificate of Management with respect to titledeeds pledged with bank.

ii) As informed the inventory has been physically verified by the management atreasonable intervals during the year and no material discrepancies were noticed.

iii) According to the information and explanation given to us the company has grantedunsecured loans to companies firms or other parties covered in the register maintainedunder section 189 of the Companies Act 2013.Please refer to point no 2.37 of notes to thefinancial statements for details. As informed to us the amounts are payable on demand.

(a) The receipt of Principal amount as well as interest is regular. However the termsof arrangements do not stipulate any repayment schedule and the loans are repayable ondemand. Accordingly paragraph 3(iii)(b) of the order is not applicable to the company inrespect of repayment of the principal amount.

(b) Since the loans are repayable on demand clause 3(iii)(c) of the Order is notapplicable.

iv) In our opinion & according to the information & explanation given to usthe company has complied with the provisions of Section 185 & 186 of the CompaniesAct 2013 in respect of loans investments guarantees & securities.

v) As informed the company has not accepted any deposit from the public covered underthe terms of section 73 to 76 of the Companies Act 2013 or any other relevant provisionsof the Act & rules framed there under.

vi) As explained to us the Central Government has not prescribed the maintenance ofcost records under sub section (1) of Section 148 of the Companies Act 2013.

vii) a) According to the information and explanation given to us provident fundemployee state insurance VAT Service tax TDS and other statutory dues have generallybeen regularly deposited with the appropriate authorities. There are no arrear outstandingstatutory dues at the last day of financial year for a period of more than six months fromthe date they become payable.

(b) On the basis of our examination of the documents and records and according to theinformation and explanation given to us there are no disputed statutory liabilities withrespect to above.

(viii) Based on our audit procedure and as per the information provided to us we areof the opinion that the company has not defaulted in repayment of dues to financialinstitutions banks governments at the end of financial year covered by the audit.

(ix) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments).

However the company has taken term loan & the said were applied for the purpose forwhich it was raised.

(x) According to the information and explanation given to us a fraud on the company byits employee has been noticed during the year wherein there was a misappropriation offunds to the tune of Rs. 9.45 lacs (approx.). Please refer to point no 2.32 of notes tothe financial statements for details.

(xi) In our opinion the managerial remuneration has been provided in accordance withthe requisite approvals mandated by the provisions of section 197 read with Schedule V tothe Companies Act 2013.

(xii) The clause (xii) regarding Nidhi Co. is not applicable to the company.

(xiii) In our opinion all transactions with the related parties are in compliance withSection 177 & Section188 of Companies Act 2013 where applicable and the details havebeen disclosed in the Note no. 2.37 of the notes to the financial statements as requiredby the applicable accounting standards.

(xiv) According to the information & explanation given to us no preferentialallotment/private placement has been made.

Therefore provisions of clause 3 (xiv) of the Companies (Auditor's Report) Order2016 are not applicable to the Company.

(xv) The company has not entered into any non - cash transactions with directors orpersons connected with him.

(xvi) The company is a Non-Banking Financial Institution without accepting PublicDeposits registered under section 45 IA of the Reserve Bank of lndia Act 1934 havingvalid Certificate of Registration.

For R.P.BOOBNA & CO
Chartered Accountants
Registration No. 304093E
PANKAJ KAKARANIA
Place : Kolkata Partner
Dated : 26th day of May 2016 Membership No.: 053304

Annexure B to the Independent Auditor's Report of even date on the StandaloneFinancial Statements of NPR Finance Limited

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 financialcontrols over financial reporting of NPR Finance Limited as of March 31 2016 inconjunction with our audit of the standalone financial statements of the company for theyear 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe 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 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

Company's internal financial control over financial reporting is a process designed toprovide 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 March 31 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. However in the light of fraud detected by the company during theyear such control system has been further strengthened.

For R.P.BOOBNA & CO
Chartered Accountants
Registration No. : 304093E
PANKAJ KAKARANIA
Place : Kolkata Partner
Dated : 26th day of May 2016 Membership No. : 053304