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Nava Bharat Ventures Ltd.

BSE: 513023 Sector: Others
NSE: NBVENTURES ISIN Code: INE725A01022
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OPEN 72.30
PREVIOUS CLOSE 71.55
VOLUME 57054
52-Week high 76.70
52-Week low 32.40
P/E 9.64
Mkt Cap.(Rs cr) 1,268
Buy Price 71.85
Buy Qty 298.00
Sell Price 71.95
Sell Qty 10.00
OPEN 72.30
CLOSE 71.55
VOLUME 57054
52-Week high 76.70
52-Week low 32.40
P/E 9.64
Mkt Cap.(Rs cr) 1,268
Buy Price 71.85
Buy Qty 298.00
Sell Price 71.95
Sell Qty 10.00

Nava Bharat Ventures Ltd. (NBVENTURES) - Auditors Report

Company auditors report

To the Members of Nava Bharat Ventures Limited Report on the Audit ofthe Standalone Financial Statements Opinion

1. We have audited the accompanying standalone financial statements ofNava Bharat Ventures Limited (‘the Company') which comprise the Balance Sheetas at 31 March 2020 the Statement of Profit Loss (including Other Comprehensive Income)the Statement of Changes in Equity and the Cash Flow Statement for the year then endedand a summary and other of the explanatory information.

2. In our opinion and to the best of our information and according tothe explanationsgiventousthe and appropriate to aforesaid standalone financial statementsgive the information required by the Companies Act 2013 (‘Act') in the mannerso required and give a true and fair view in conformity with the accounting principlesgenerally accepted in India including Indian Accounting Standards (‘Ind AS')specified under section 133 of the Act of the state of affairs of the Company as at 31March 2020 and its profit (including other comprehensive income) its cash flows and thechanges in equity for the year ended on that date.

Basis for Opinion

3. We conducted our audit in accordance with the Standards on Auditingspecified under section 143(10) of the Act. Our responsibilities under those Standards arefurther described in the

Auditor's Responsibilities for the Audit of the FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Charteredand Accountants of India(‘ICAI') together with the ethical requirements that are relevant to our auditof the financial statements under the provisions of the Act and the rules thereunder andwe have fulfilled our other ethical responsibilities in accordance with these requirementsand the Code of Ethics. We believe that the audit evidence we have obtained is provide abasis for our opinion.

Key Audit Matters

4. Key audit matters are those matters that in our professionaljudgment were of most significance in our audit of the standalone financial statements ofthe current period. These matters were addressed in the context of our audit of thestandalone financial statements as a whole and in forming our opinion thereon and we donot provide a separate opinion on these matters.

5. We have determined the matters described below to be the key auditmatters to be communicated in our report.

Key audit matter How our audit addressed the key audit matter
Impairment assessment of thermal power plant(s): Refer note 2(b)(i) and 2(g) for the accounting policy and note 3 for the related disclosures
Our audit procedures included but were not limited to the following:
The Company's property plant and equipment includes 60 MW thermal power generation station located at Odisha and 20 MW thermal power generation station located at Dharmavaram with carrying value of 19200.79 lakhs (31 March 2019: 19800.29 lakhs) and 7720.20 lakhs (31 March 2019: 7969.22 lakhs) respectively. - Tested the design and operating effectiveness of the key controls put in place by the management in relation to the impairment assessment of property plant and equipment;
- Assessed the Company's cash flow forecast models in respect of these units and the reasonability of the expected value on sale / disposal;
In accordance with Ind AS 36 Impairment of assets the management has assessed the recoverable values of these power plants since these plant(s) have not generated power owing to the mismatch between demand and supply of power and pending receipt of certain approvals from the regulatory authorities. The aforesaid assessment of the recoverable values to determine impairment if any involve exercising signific ant judgements with regard to assumptions and estimates involved in forecasting future cash flows - Evaluated key judgements made by the management in cash flow forecasts used in the determination of the value in use for each of the units and the expected realizable value of these units;
- Assessed the appropriateness of the discount rates applied in determining the value in use of each unit;
- Assessed the reasonableness of the key assumptions regarding future profitability and revenue growth rates potential electricity to be generated realizable value of the underlying asset; and
. These assumptions include capacity utilization of the plans tariff rates discount rates and other operating parameters. - Performed an overall evaluation of the individual unit's cash flow models based on our knowledge of the Company our discussion with the management of the Company's strategic plan combined with the external data which we considered relevant;
Considering the significance of the amounts involved degree of judgement and subjectivity involved in the estimates and key assumptions used in determining the cash flows used in the impairment evaluation we have determined impairment assessment of the aforesaid power generating plant(s) as a key audit matter. - Obtained specific representations from the management where relevant; - Evaluated the appropriateness and adequacy of the disclosures made in the financial statements in accordance with the applicable accounting standards.
Recoverability of Minimum Alternate Tax (MAT) credit asset: Our audit procedures included but were not limited to the following:
Refer note 2(b)(viii) and 2(s) for the accounting policy and note 17 for the related disclosures. - Evaluated the design and tested the operating effectiveness of key controls implemented by the Company over recognition of MAT credit;
As detailed in note 17 to the accompanying standalone financial statements the Company has deferred tax assets aggregating to 13330.41 lakhs (31 March 2019: 16647.78 lakhs) in the nature of credit of Minimum Alternate Tax (MAT) as at 31 March 2020. - Obtained management's analyses for MAT credit realizability and evaluated the analyses and workings in relation to the recognition of deferred tax assets taking into account the status of recent income-tax audits and enquiries changes to the tax laws etc;
- Evaluated the reasonability of future projected profitability by assessing the forecasts against past results and our knowledge of the industry;
The Company's ability to recover the deferred tax asset is assessed by the management at each reporting date which depends on the estimates of future operations and taxable profits the Company expects to earn within the period of by which such MAT balance can be utilized as governed by the Income-tax Act 1961. - Compared the prior year expected tax profits with the actual results to determine the efficacy of the management's budgeting process;
We have identified the recoverability of MAT Credit as a key audit matter owing to the materiality of the amounts involved and inherent subjectivity involved in determination of utilization of MAT credit through estimation of future taxable profits. - Evaluated the appropriateness and adequacy of the disclosures made in the financialstatements in respect of deferred tax assets in accordance with the applicable accounting standards.
Classification and presentation of assets held for sale and discontinued operations: Refer note 2(z) for the accounting policy and note 39 for the related disclosures. Our audit procedures included but were not limited to the following:
The Company has in its board meeting held on 2 March 2020 approved the cessation of operations at the Sugar Plant situated at Samalkot Andhra Pradesh. Accordingly the management has classified the non- current assets pertaining to this division as assets held for sale and discontinued operations in accordance with Ind AS 105 Non-current Assets Held for Sale and Discontinued Operations. - Tested the design and operating effectiveness of the controls put in place by the management in relation to the impairment assessment of property plant and equipment;
- Assessed the compliances with respect to the classification and presentation requirements of the underlying assets of sugar division in accordance with the provisions of Ind AS 105;
Based on management's assessment of the fair value less costs to sell of these non-current assets held for sale no impairment cost was recognised during the current year ended 31 March 2020 to bring the carrying value of these assets to their net realizable values. - Assessed whether the Company's management was committed to a plan to sell the business and actively had initiated the program to locate a buyer and complete the plan as at the reporting date;
This was considered to be one of the areas which required significant auditor attention owing to significant management judgement involved in evaluation of the net realizable value of the underlying assets of the aforesaid sugar division and assessment of compliance with the requirements of the applicable accounting standards and accordingly identified this area as a key audit matter. - Assessed the likelihood of disposal group being available for immediate sale in its current state and whether it is highly probable that the sale will take place;
- Tested management's assessment whether the carrying values of disposal groups are at least equal to their estimated fair value less cost to sell;
- Obtained the fair valuation report of the management's expert for the land and assessed the appropriateness of valuation methodology and techniques along with the assumptions adopted by the expert and the management. Also evaluated the independence objectivity and competency of the expert that was engaged by the management.
- Evaluated the appropriateness and adequacy of the disclosures made in the financial statements in accordance with the applicable accounting standards.
Contingent liabilities relating to ongoing litigation: Our audit procedures included but were not limited to the following:
Refer note 2(r) for the accounting policy and note 34(b) and 34(d) for the related disclosures.
As disclosed in Note 34(b) and 34(d) to the accompanying standalone financialstatements the Company is involved in various indirect taxes and other regulatory cases (‘litigations'). - Obtained an understanding of the management process for: identification of legal and indirect tax matters initiated against the Company assessment of accounting treatment for each such litigation identified as per the applicable accounting standards and for measurement of amounts involved;
Whether a liability is recognised as a provision or disclosed as a contingent liability in the financial statements involves inherent judgments dependent on numberof.
These include assumptions relating to the likelihood and / or timing of the cash outflows from the business and the interpretation of local laws and pending assessments at various levels of the statute. - Tested the design and operating effectiveness of the controls put in place by the management in relation to assessment of the outcome of these pending litigations;
The amounts involved are significant and due to the range of possible outcomes and considerable uncertainty around the various litigations the determination of the need for creating a provision in the financial statements is inherently subjective and therefore is considered to be a key audit matter in the current year. - Obtained an understanding of the nature of litigations pending against the Company and discussed the key developments during the year for these key litigations with the management in-house legal team;
- Where relevant we read the external legal advice obtained by the management;
- Obtained relevant third-party legal confirmations together with follow up discussions where appropriate on certain cases;
- Evaluated the appropriateness and adequacy of the disclosures made relating to provisions and contingent liabilities in accordance with the applicable accounting standards.

Information other than the Financial Statements and Auditor'sReport thereon

6. The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the annual reportbut does not include the standalone financial statements and our auditor's reportthereon.

Our opinion on the financial cover the other information and we do notexpress any form of assurance conclusion thereon. In connection with our audit of thefinancial statements our responsibility is to read the other information and in doingso consider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated. If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Responsibilities of Management and Those Charged with Governance forthe Standalone Financial Statements

7. The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance including other comprehensive income changes in equity and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Ind AS specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisionsstatements does not of the Act for safeguarding of the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

8. In preparing the financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

9. Those Board of Directors is also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the FinancialStatements

10. Our objectives are to obtain reasonable assurance about whether thefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with Standards on Auditing will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these financial statements 11. As partof an audit in accordance with Standards on Auditing we exercise professional judgmentand maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls with reference to financial statements inplace and the operating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause theCompany to cease to continue as a going concern.

Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

12. We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant ant deficienciessignific audit findings including any in internal control that we identify during ouraudit. 13. We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear on .our independence and where applicable related safeguards.

14. From the matters communicated with those charged with governancewe determine those matters that were of most significance in the audit of the financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Other Matter

15. The accompanying standalone financial statements include thefinancial information of 1 branch which have not been reviewed / audited and whosefinancial information reflects assets of 16.41 lakhs and 16.41 lakhs as at 31 March2020 and total revenues of Nil total net loss after tax of 12.55 lakhs totalcomprehensive loss of 12.55 lakhs and cash flows (net) of 16.41 lakhs for the year thenended as considered in the standalone financial statements. Our opinion on the standalonefinancial statements and matters identified and disclosed under key audit matters sectionabove in so far as it relates to the amounts and disclosures included in respect of thisbranch is based solely on such unreviewed / unaudited financial information. andexplanations given to us by the management this financial information is not material tothe Company.

Our opinion on the standalone financial statements and our report onother legal and regulatory requirements below is not modified in respect of the abovematter with respect to our reliance on the aforesaid financial information certified bythe management.

Report on Other Legal and Regulatory Requirements

16. As required by section 197(16) of the Act based on our audit wereport that the Company has paid remuneration to its directors during the year inaccordance with the provisions of and limits laid down under section 197 read withSchedule V to the Act.

17. As required by the Companies (Auditor's Report) Order 2016(‘the Order') issued by the Central Government of India in terms of section143(11) of the Act we give in the Annexure I a statement on the matters specified 18.Further to our comments in Annexure I as required by section 143(3) of the Act we reportthat:

a) we have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purpose of our auditof the accompanying standalone financial statements;

b) in our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books and properreturns adequate for the purposes of our audit have been received from the branches notvisited by us;

c) the standalone financial statements dealt with by this report are inagreement with the books of account and with the return received from the branch notvisited by us;

d) in our opinion the aforesaid standalone financial statements complywith Ind AS specified under section 133 of the Act; e) on the basis of the writtenrepresentations received from the directors and taken on record by the Board of Directorsnone of the directors is disqualified appointed as a director in terms of section 164(2)of the Act;

f) we have also audited the internal financial of controls withreference to financial the Company as on 31 March 2020 in conjunction with our audit ofthe standalone financial statements of the Company for the year ended on that date and ourreport dated 26 June 2020 as per Annexure II expressed unmodified opinion thereon; g) withrespect to the other matters to be included in the Auditor's Report in accordancewith rule

11 of the Companies (Audit and Auditors) Rules 2014 (as amended) inour opinion and to the best of our information and according to the explanations given tous:

i. the Company as detailed in notes 34(b) 34(c) 34(d) and 34(xii) to(xv) inparagraphs3and4oftheOrder. to the standalone financial statements hasdisclosed the impact of pending litigations on its financial position as at 31 March 2020;

ii. the Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses as at 31 March2020; iii. there has been no delay in transferring amounts required to be transferred tothe

Investor Education and Protection Fund by the Company during the yearended 31 March 2020; iv. the disclosure requirements relating to holdings as wellas dealings in specified bank notes were applicable for the period from 8 November 2016 to30 December 2016 which are not relevant to these standalone financial statements. Hencereporting under this clause is not applicable.

For Walker Chandiok & Co LLP
Chartered Accountants
Firm's Registration No.: 001076N/N500013
Sanjay Kumar Jain
Partner
Membership No.: 207660
UDIN: 20207660AAAABZ2771
Place : Hyderabad
Date : June 26 2020

Annexure I to the Independent Auditor's Report of even date to themembers of Nava Bharat Ventures Limited on the standalone financial statements for theyear ended 31 March 2020

Based on the audit procedures performed for the purpose of reporting atrue and fair view on the financial statements of the Company and taking intoconsideration the information and explanations given to us and the books of account andother records examined by us in the normal course of audit and to the best of ourknowledge and belief we report that:

(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

(b) The fixed assets have been physically verified by the managementduring the year and no material discrepancies were noticed on such verification In ouropinion the frequency of verification of the fixed assets is reasonable having regard tothe size of the Company and the nature of its assets.

(c) The title deeds of all the immovable properties (which are includedunder the head ‘Property plant and equipment') are held in the name of theCompany except for the following properties which were transferred as a result ofamalgamation of companies in earlier years wherein the tittle deeds are in the name of theerstwhile company:

Nature of prop- erty Total Num- ber of Cases Whether lease- hold / freehold Gross block as on 31 March 2020 (in lakhs) Net block on 31 March 2020 (in lakhs) Re- marks
Land Multiple Freehold 451.38 451.38

Owing to expiry of the lease period of the underlying land on which thesugar manufacturing facility of the Company located in Samalkot is situated on 12 August1996 the title deeds of the said are not held in the name of the Company. The buildingsof the sugar manufacturing facility located on the said land have a gross block of1400.82 lakhs and net block of 883.43 lakhs as on 31 March 2020.

(ii) In our opinion the management has conducted physical verificationof inventory at reasonable intervals during the year except for goods-in-transit.Material discrepancies noticed on such verification have been properly dealt with in thebooks of account.

(iii) The Company has granted unsecured loans to companies covered inthe register maintained under Section 189 of the Act; and with respect to the same: (a) inour opinion the terms and conditions of grant of such loans are not prima facieprejudicial to the company's interest.

(b) the schedule of repayment of principal and payment of interest hasbeen stipulated in case of one company and repayments of the principal amount (3 cases)and the receipt of interest (11 cases) are not regular. In respect of loan granted toother party the schedule of repayments of interest and principal has been stipulated andas the interest and principal amounts were not due for payments during the year therepayment of interest and principal amounts are regular;

(c) there is no amount which is overdue for more than 90 days inrespect of loans granted to such companies.

(iv) In our opinion the Company has complied with the provisions ofSection 186 in respect of loans investments and guarantees. In our opinion the Companyhas not entered into any transaction covered under Section 186 of the Act in respect ofsecurity. Further in our opinion the Company has not entered into any transactioncovered under Sections 185 of the Act.

(v) In our opinion the Company has not accepted any deposits withinthe meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits)Rules 2014 (as amended). Accordingly the provisions of clause 3(v) of the Order are notapplicable.

(vi) We have broadly reviewed the books of account maintained by theCompany pursuant to the Rules made by the Central Government for the maintenance of costrecords under sub-section (1) of Section 148 of the Act in respect of Company'sproducts / services and are of the opinion that prima facie the prescribed accounts andrecords have been made and maintained. However we have not made a detailed examination ofthe cost records with a view to determine whether they are accurate or complete.

(vii) (a) The Company is regular in depositing undisputed statutorydues including provident fund employees' state insurance income-tax goods andservice tax cess and other material statutory dues as applicable to the appropriateauthorities. Further no undisputed amounts payable in respect thereof were outstanding atthe year-end for a period of more than six months from the date they become payable.

(b) The dues outstanding in respect of income-tax sales-taxservice-tax duty of customs duty of excise goods and service tax and value added tax onaccount of any dispute are as follows:

Annexure I to the Independent Auditor's Report of even date to themembers of Nava Bharat Ventures Limited on the standalone financial statements for theyear ended 31 March 2020

Statement of Disputed Dues

Name of the statute Nature of dues Amount (in lakhs) Amount paid under Protest (in lakhs) Period to which the amount relates Forum where dispute is pending Remarks if any
Central Sales Tax 64.88 - 2000-01 The Andhra Pradesh Sales Tax and VAT Appellate Tribunal Hyderabad Assistant
Various Sales Tax Acts 2.20 - 2004-05 Commissioner of Sales Tax Range-II Cuttack.
Andhra Pradesh General Sales Tax 79.36 - 2003-04 Assistant Commissioner of Commercial Taxes Warangal
Customs Act 1962 Customs duty 206.06 - 2012-13 Customs Excise and Service tax Appellate Tribunal (CESTAT) Chennai
17.62 - 1985-87 Hon'ble High Court for the State of Telangana The Customs Excise and Service Tax
Central Excise Act 1944 Excise duty 369.94 - 2012-13 Appellate Tribunal (CESTAT) Bangalore
55.29 - 1997-98
1.09 - 2000-01 to 2001-02 CESTAT New Delhi Hon'ble High Court for the State of Telangana
Finance Act 1994 (as amended) Service Tax 6.14 - April 2016 to June 2017 Assistant Commissioner of Central Excise Kakinada
65.62 - October 2007 to March 2017 Commissioner of Central Excise (Appeals) Visakhapatnam
2935.95 857.93 AY 2005-06 2006-07 and 2010-11 Hon'ble High Court for the State of Telangana
Income Tax Act 1961 Income Tax 384.28 384.28 AY 2009-10 2010-11 and 2011-12 Income Tax Appellate Tribunal (ITAT) Hyderabad
807.93 807.93 AY 2008-09 2009-10 2012-13 2013-14 and 2016-17 Commissioner of Income Tax (Appeals) Hyderabad

(viii) The Company has not defaulted in repayment of loans orborrowings to any banks during the year.

The Company did not have any outstanding loans or borrowings fromfinancial institution or government or outstanding debentures during the year.

(ix) In our opinion the Company has applied moneys raised by way ofthe term loans for the purposes for which these were raised. The Company did not raisemoneys by way of initial public offer / further public offer (including debt instruments)during the year. (x) No fraud by the Company or on the company by its officers oremployees has been noticed or during the period covered by our audit. (xi) Managerialremuneration has been paid (and) / provided by the company in accordance with therequisite approvals mandated by the provisions of Section 197 of the Act read withSchedule V to the Act. (xii) In our opinion the Company is not a Nidhi Company.

Accordingly provisions of clause 3(xii) of the Order are notapplicable.

(xiii) In our opinion all transactions with the related parties are incompliance with Sections 177 and 188 of Act where applicable and the requisite detailshave been disclosed in the financial statements etc. as required by the applicable IndAS. (xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures. (xv) In our opinion theCompany has not entered into any non-cash transactions with the directors or personsconnected with them covered under Section 192 of the Act. (xvi) The Company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934.

For Walker Chandiok & Co LLP
Chartered Accountants
Firm's Registration No.: 001076N/N500013
Sanjay Kumar Jain
Partner
Membership No.: 207660
UDIN: 20207660AAAABZ2771
Place : Hyderabad
Date : June 26 2020

Annexure II and appropriate

Independent Auditor's Report on the Internal Financial Controlswith reference to the standalone financial statements under Clause (i) of Sub-section 3 ofSection 143 of the Companies Act 2013 (‘the Act')

1. In conjunction with our audit of the standalone financial statementsof Nava Bharat Ventures Limited (‘the Company') as at and for the year ended 31March 2020 we have audited the internal financial controls with reference to standalonefinancial statements of the Company as at that date.

Responsibilities of Management and Those Charged with Governance forInternal Financial Controls

2. The Company's Board of Directors is responsible forestablishing and maintaining internal financial controls with reference to financialstatements controls based on the internal financial control over financial 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 were operating effectively for ensuring the orderly and efficientconduct of the Company's business including adherence to the Company'spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditor's Responsibility for the Audit of the Internal FinancialControls with Reference to Standalone Financial Statements

3. Our responsibility is to express an opinion on the Company'sinternal financial controls based on our audit. We conducted our audit in accordance withthe Standards on Auditing issued by the Institute of Chartered Accountants of India(‘ICAI') prescribed under Section 143(10) of the Act to the extent applicableto an audit of internal financial controls and the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting (‘the Guidance Note') issued by theICAI. Those Standards and the Guidance

Note require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether adequate internal financialcontrols were established and maintained and if such controls operated effectively in allmaterial respects.

4. Our audit involves performing procedures to obtain audit evidenceabout the adequacy of the internal financial controls with reference to standalonefinancial statements and their operating effectiveness. Our audit of internal financialcontrols with reference to standalone financial statements includes obtaining anunderstanding of IFCoFR assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement includingthe assessment of the risks of material misstatement of the financial statements whetherdue to fraud or error.

5. We believe that the audit evidence we have obtained is provide abasis for our audit opinion on the Company's internal financial controls withreference to standalone financial statements.

Meaning of Internal Financial Controls over Financial Reporting withReference to Standalone Financial Statements

6. A company's internal financial controls with reference tostandalone financial statements is a process designed to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of financialstatements for external purposes in accordance with generally accepted accountingprinciples. A company's internal financial controls with reference to standalonefinancial statements include 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 with Reference toStandalone Financial Statements

7. Because of the inherent limitations of IFCoFR including thepossibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the IFCoFR to future periods are subject to the risk that the IFCoFR maybecome inadequate because of changes in conditions or that the degree of compliance withthe policies or procedures may deteriorate.

Opinion

8. In our opinion the Company has in all material respects adequateinternal financial controls with reference to standalone financial statements and suchcontrols were operating effectively as at 31 March 2020 based on the internal financialcontrols with reference to financial statements criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the ICAI.

Chartered Accountants
Firm's Registration No.: 001076N/N500013
Sanjay Kumar Jain Partner
Place : Hyderabad Membership No.: 207660
Date : June 26 2020 UDIN: 20207660AAAABZ2771

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