You are here » Home » Companies » Company Overview » Nagpur Power & Industries Ltd

Nagpur Power & Industries Ltd.

BSE: 532362 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE099E01016
BSE 00:00 | 20 Jul 31.50 -0.95
(-2.93%)
OPEN

31.00

HIGH

31.50

LOW

31.00

NSE 05:30 | 01 Jan Nagpur Power & Industries Ltd
OPEN 31.00
PREVIOUS CLOSE 32.45
VOLUME 1002
52-Week high 53.45
52-Week low 23.25
P/E
Mkt Cap.(Rs cr) 41
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 31.00
CLOSE 32.45
VOLUME 1002
52-Week high 53.45
52-Week low 23.25
P/E
Mkt Cap.(Rs cr) 41
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Nagpur Power & Industries Ltd. (NAGPURPOWER) - Auditors Report

Company auditors report

TO THE MEMBERS OF

NAGPUR POWER AND INDUSTRIES LIMITED

Report on the Standalone Financial Statements

1. We have audited the accompanying standalone financial statements of NAGPUR POWERAND INDUSTRIES LIMITED ("the Company") which comprise the Balance Sheet asat 31st March 2017 the Profit and Loss Statement and Cash Flow Statement forthe year then ended and a summary of the significant accounting policies and otherexplanatory information which we have signed under reference to this report.

Management's Responsibility for the Standalone 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 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.

Auditor's Responsibility

3. Our responsibility is to express an opinion on these financial statements based onour audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe 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 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 control relevant to the Company's preparation of thefinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of 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 is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Opinion

4. 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 the affairs of theCompany as at 31st March 2017 and its Profit and its cash flows for the yearended on that date.

Report On Other Legal and Regulatory Requirements

5. 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 inparagraphs 3 and 4 of the Order to the extent applicable.

6. 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 Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account.

d. In our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards specified under section 133 of the Actread with Rule 7 of the Companies (Accounts) Rules 2014;

e. On the basis of written representations received from the directors as on 31stMarch 2017 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in termsof section 164(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" and

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 litigation on its financialposition in its financial statements – Refer Note 25 to the financial statements;

(ii) The Company did not have any long-term contracts including derivative contractsfor which 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.

(iv) The company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016 and the relevant transactions are in accordance with the booksof accounts maintained by the company.

For M.V. GHELANI & CO.
CHARTEREDACCOUNTANTS
Firm Regn. No. 119077W
(M. V. GHELANI)
PROPRIETOR
Membership No.: 031105
Place : Mumbai
Date : 30th May 2017

ANNEXURE ‘A'TO THE INDEPENDENT AUDITORS' REPORT ON THE ACCOUNTS FOR THE YEAR ENDED31STMARCH 2017.

Annexure referred to in paragraph 5 under the heading "Report on other legal andregulatory requirements" of our report of even date to the members of Nagpur Powerand Industries Limited on the audit of the standalone financial statements for the yearended 31st March 2017.

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

b) As explained to us the fixed assets have been physically verified by the managementduring the year in accordance with a phased programme of verification which in ouropinion is reasonable having regard to the size of the company and nature of its fixedassets. The discrepancies noticed on verification between the physical fixed assets andthe books records were not material having regard to nature and size of the operations ofthe Company and the same have been properly dealt with in books of accounts.

c) According to the information and explanations given to us and on the basis ofdocuments and records produced

before us the title deeds of immovable properties are held in the current or formername of the company.

ii) As explained to us the inventories have been physically verified during the yearby the management at reasonable intervals.

In our opinion and according to information and explanation given to us the company ismaintaining proper records of inventory. The discrepancies noticed on verification betweenthe physical stocks and the book records were not material having regard to the size ofthe operations of the Company and the same have been properly dealt with in books ofaccounts.

iii) The Company has granted loans to one party covered in the register maintainedunder section 189 of the Companies Act 2013 ("the Act):

(a) The above loan has been given to an entity at an interest rate of 10% p.a. whereinthe company has also made a strategic investment in its Equity and is without anystipulation as regards to its repayment. In view of the controlling interest and longstrategies of the management the terms and conditions of this loan are not prima facieprejudicial to the interest of the company.

(b) In view of what is stated at (a) above there is no schedule of repayment ofprincipal and payment of interest and there is no repayment or receipt during the year.

(c) In view of what is stated at (a) above the amount overdue cannot be determined andtherefore the question of company taking reasonable steps for recovery of principal amountand interest cannot be commented upon.

iv) In our opinion and according to the information and explanation given to us theCompany has complied with the provisions of section 185 and 186 of the Act in respect ofloans making investments and providing guarantees and securities as applicable.

v) The Company has not accepted any deposits from the public within the meaning of thedirectives issued by the Reserve Bank of India and the provisions of sections 73 to 76 orany other relevant provisions of the Companies Act and the rules framed thereunder.

vi) According to the information and explanations given to us the maintenance of costrecords was not prescribed by the Central Government under section 148(1) of the Act forany of the activities of the Company.

vii) (a) According to the information and explanations given to us the Company isgenerally regular in depositing undisputed statutory dues including provident fundemployees' state insurance income tax sales tax wealth tax service tax duty ofcustom duty of excise value added tax cess and other statutory dues applicable to itwith appropriate authorities.

According to the information and explanations given to us no undisputed amounts payablein respect of provident fund employees' state insurance income tax sales tax wealthtax service tax duty of custom duty of excise value added tax cess and otherstatutory dues applicable to it were in arrears as at 31st March 2017 for aperiod of more than six months from the date they become payable.

(b) According to the information and explanations given to us there are no dues ofsales tax income tax custom duty service tax excise duty or cess which have not beendeposited on account of any dispute except as stated below:

Name of the Statute Nature of dues Amount Forum where dispute is pending
(Rs. in lacs)
West Bangal Sales tax Act 1957 - Sales tax Case at Calcutta. Sales tax demand of three Asst. Years 2.43 Commissioner of Sales Tax (Appeal) Calcutta.
Uttar Pradesh Sales Tax Act 1957 - Sales tax case at Kanpur. Sales tax demand for Asst. Year 1980-81 3.33 Commissioner of Sales Tax (Appeal) Kanpur.
B.S.T Act 1959 B.S.T & C.S.T 195.45 JT. Commissioner of sales tax (Appeals) Nagpur
Customs Act 1962 Customs and Advalorem Duty 117.43 Commissioner of Customs (E.P.) and Directorate General of Foreign Trade (DGFT)
The Bombay Stamp Act1958 Stamp duty 45.83 Supreme Court of India
Other statutory dues Entry tax 4.58 Tahsildar
The Income Tax Act 1961 Income tax demand for A.Y. 2008-09 5.72 Commissioner of Income Tax (Appeals) Mumbai
The Income Tax Act 1961 Income tax demand under section 156 for A.Y. 2010-11 13.73 Income Tax Appellate Tribunal
Total 388.50

viii) According to the information and explanations given to us and the records madeavailable to us the Company has not defaulted in repayment of dues to any financialinstitution banks or debenture holders during the year.

ix) According to the information and explanations given to us the Company has notraised money by way of initial public offer or further public offer and term loan.

x) Based on the audit procedures performed by us to the best of our knowledge andbelief and according to the information and explanation given to us by the Management nofraud by the Company or fraud on the company by its officers or employee has been noticedor reported during the year.

xi) According to the information and explanations given 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.

xii) 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 Order is notapplicable to the Company.

xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with related parties are incompliance with section 177 and 188 of the Act where applicable. The details of suchrelated party transactions have been disclosed in the financial statements as requiredunder Accounting Standards.

xiv) According to the information and explanations given 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.

xv) According to the information and explanations given to us and based on thedocuments and records produced before us the company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable to the Company.

xvi) According to the information and explanation given to us and based on thedocuments and records produced before us and relying on an expert advice the company isnot required to be registered under Section 45-IA of the Reserve Bank of India Act 1934.

For M.V. GHELANI & CO.
CHARTEREDACCOUNTANTS
Firm Regn. No. 119077W
(M. V. GHELANI)
PROPRIETOR
Membership No.: 031105
Place : Mumbai
Date : 30th May 2017

ANNEXURE B TO THE AUDITOR'S REPORT ON THE ACCOUNTS FOR THE YEAR ENDED 31STMARCH 2017

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 (the Act)

1 We have audited the internal financial controls over financial reporting of NAGPURPOWER AND INDUSTRIES LIMITED ("the Company") as of March 31 2017 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

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'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that operate effectively for ensuring the orderly and efficient conductof its business including adherence to company's policies the safeguarding of itsassets the prevention and detection of frauds and errors the accuracy and completenessof the accounting records and the timely preparation of reliable financial informationas required under the Companies Act 2013.

Auditor's 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 issued by the ICAI anddeemed to 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 both issued by the ICAI. Those standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting were established and maintained and if such controls operatedeffectively 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 on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

4 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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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

5 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

6 In our opinion to the best of our information and according to explanations given tous the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31st 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 ICAI.

For M.V. GHELANI & CO.
CHARTEREDACCOUNTANTS
Firm Regn. No. 119077W
(M. V. GHELANI)
PROPRIETOR
Membership No.: 031105
Place : Mumbai
Date : 30th May 2017