Report to the members of navkar corporation limited report on the audit of ind asfinancial statements 31st march 2021 opinion
We have audited the accompanying financial statements of navkar corporation limited(the company') which comprise the balance sheet as at march 31 2021 and the
Statement of profit and loss (including other comprehensive
Income) the statement of changes in equity and statement of cash flows for the yearthen ended and notes to the financial statements including a summary of the significantaccounting policies and other explanatory information
(hereinafter referred to as the financial statements').
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by thecompanies act 2013 ("the act") in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in india of thestate of affairs of the
Company as at march 31 2021 its profit (including other comprehensive income)changes in equity and its cash flows for the year ended on that date.
Basis for opinion
We conducted our audit in accordance with the standards on
Auditing (sas) specified under section 143(10) of the act. Our responsibilities underthose standards are further described in the auditor's responsibilities for the audit ofthe financial
Statements section of our report. We are independent of the company in accordance withthe code of ethics issued by the institute of chartered accountants of india"icai" together with the ethical requirements that are relevant to our audit ofthe financial statements under the provisions of the
Companies act 2013 and the rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the icai's code of ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion.
Emphasis of matter impact for outbreak of coronavirus (covid19)
We draw attention to note no. 39 of the financial statements which describes themanagement's assessment of the impact of the uncertainties related to outbreak of covid-19on the business operations of the company.
Our opinion is not modified in respect of this matter.
Key audit matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements for the financial year ended march31
2021. These matters were addressed in the context of our audit of the financialstatements as a whole and in forming our opinion thereon and we do not provide a separateopinion on these matters. In addition to the matter described in the emphasis of matterpara above we have determined the matters described below to be the key audit matters tobe communicated in our report.
|Key audit matters ||How our audit addressed the key audit matter |
|1.revenue from contracts with customers (described in note 2 (k) of the financial statements) || |
|Assessment of revenue from contracts with customers as a basis of accounting: ||Our procedures included the following: |
|revenue from contracts with customers is recognized when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ||We assessed the design and tested the operating effectiveness of internal controls related to revenue recognition discounts and rebates. |
|the company is engaged in container freight station (cfs) and inland container depot (icd) operations and related activities. It has developed procedures to record the revenue on the basis of the movement of the cargo and revenue accrues as per indian accounting standard 115. ||We performed sample tests of individual sales transaction and traced to related documents considering the terms of performance. |
|due to different terms with different customers and transaction price there is a risk that the revenue or discounts or rebates; might not be recorded correctly. ||We tested cut-off procedures with respect to year-end sales transactions made. |
| ||We also performed analytical procedures of revenue by streams to identify any unusual trends. |
| ||We have identified invoices booked in tracker software with books of account and verified the reconciliation for differences |
| ||Conclusion |
|Revenue is a key parameter to ascertain the company's performance. ||Based on our combination of procedures involving enquiry observation and inspection of evidence in respect of operation of these controls we have concluded that the revenue has been recognized in accordance with the relevant accounting standards. |
|The company focuses on revenue as a key performance measure which could create an incentive for revenue to be recognized before the risk and rewards have been transferred. || |
|Associated with revenue accordingly due to the significant recognition in accordance with terms of ind as 115 revenue from contracts with customers' it has been considered to be a key audit matter in our audit of these financial statements. || |
|1.lease accounting as per ind as 116 (described in note 21 of the financial statements) || |
|Application and assessment of lease under ind as 116: ||Our procedures included the following : |
|During the year under review the company has entered into certain transactions which fall under the preview of ind as 116 leases are required to recognize a right-of-use (rou) asset and a lease liability arising from a lease in the balance sheet. The lease liabilities are initially measured by discounting future lease payments during the lease terms as per the contract/arrangement. Adoption of the standard involves judgments and estimates including determination of the discount rates and the lease term. ||We have assessed and tested new processes and controls in respect of the lease accounting standard ind as 116; |
|additionally the standard mandates detailed disclosures in respect of lease transactions. ||We have assessed the evaluation made by the company on the identification of leases based on the contractual agreements and our knowledge of the business. |
| ||We have evaluated the reasonableness of the discounting rate applied in determining the lease liabilities; |
| ||We have tested completeness of the lease data used in computing rou asset and the lease liabilities. |
| ||On a statistical sample we performed the following procedures: |
| ||Assessed the key terms and conditions of each lease with the underlying lease contracts; and |
| ||Evaluated computation of lease liabilities and the key estimates such as discount rates and the lease term. |
| ||Assessed and tested the presentation and disclosure relating to leases. |
| ||Conclusion: |
| ||Based on the combination of procedures observations and evidences we have concluded that the lease has been recognized in accordance with the relevant accounting standards. |
The company's board of directors are responsible for the other information. The otherinformation comprises the information included in the director report but does not includethe financial statements and our auditor's report thereon.
Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.
In connection with our audit of the financial statements responsibility is to read theother information and in doing so consider whether the other information is materiallyinconsistent with the financial statements or our knowledge obtained in the audit orotherwise appears to be materially misstated.
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 for the financialstatements
The company's board of directors are responsible for the matters stated in section134(5) of the act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance
(including other comprehensive income) changes in equity and cash flows of the companyin accordance with the accounting principles generally accepted in india including
Ind as specified under section 133 of the act read with relevant rules issuedthereunder. This responsibility also includes maintenance of adequate accounting recordsin accordance 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 financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
In preparing the financial statements board of directors are responsible for assessingthe company's ability to continue as a going concern disclosing asdeficienciesapplicable in internalmatters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the company or to ceaseoperations or has no realistic alternative but to do so.
Those board of directors are also responsible for overseeing the company's financialreporting process.
Auditor's responsibilities for the audit of the ind as financial statements
Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with saswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.
As part of an audit in accordance with sas we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.
obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(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 statementsplace and the operating effectiveness of such controls.
evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the company to cease to continue asa going concern.
evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including identifyany significant during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements currentperiod and are therefore the key audit matters. We describe these matters in our auditor'sreport unless law or regulation precludes public disclosure about the matter or when inextremely rare circumstances we determine that a matter should not be communicated in ourreport because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication.
Report on other legal and regulatory requirements
1. As required by the companies (auditor's report) order 2016 ("the order")issued by the central government of india in terms of section 143(11) of the act we givein the "annexure a" a statement on the matters specified in paragraphs 3 and 4of the order to the extent applicable.
2. As required by section 143(3) of the act we report that:
A) we have sought and obtained all the information and explanations which to 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 the statement of profit and loss
(including other comprehensive income) the statement in of changes in equity and thecash flow statement dealt with by this report are in agreement with the books of account;
D) in our opinion the aforesaid financial statements comply with the specified undersection 133 of the act read with relevant rules issued thereunder;
E) on the basis of the written representations received from the directors as on march31 2021 and taken on record by the board of directors none of the directors isdisqualified as on march 31 2021 from being appointed as a director in terms of section164 (2) of the act and;
F) with respect to the adequacy of the internal financial controls over financialreporting of the company with reference to these financial statements of the company andthe operating effectiveness of such controls refer to our separate report in"annexure b";
G) with respect to the other matters to be included in the auditor's report inaccordance with the requirements of section 197(16) of the act as amended; in our opinionand to the best of our information and according to the explanations given to us theremuneration paid or provided by the company to its directors during the year is inaccordance with the provisions of section 197 of the act;
H) 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 as amended inour opinion and to the best of our information and according to the explanations given tous:
I. The company has disclosed the impact of pending litigations as at march 31 2021 onits financial position in its financial statements - refer to note 44 on contingentliabilities to the financial statements;
Ii. The company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses as at march 31 2021; iii. There were noamounts which were required to be transferred to the investor education and protectionfund by the company during the year ended march 31 2021; annexure a to independentauditors' report - march 31 2021
Referred to in paragraph 1 under report on other legal and
Regulatory requirements' of our report of even date to the members of navkarcorporation limited i. In respect of the company's fixed . Assets
(a) the company is maintaining proper records showing full particulars includingquantitative details and situation of fixed asset.
(b) the fixed
Management according to phased programme designed to cover all the items over a periodof 2-3 years which in our opinion is reasonable having regard to the size of the companyand the nature of its assets. Pursuant to the programme a portion of the fixed asset hasbeen physically verified by the management during the year and no material discrepancieshave been noticed on such verification.
(c) according to the information and explanations given by the management the titledeeds of immovable properties included in fixed asset are held in the name of the companyas at balance sheet date.
Ii. The physical verification of inventory has been conducted at reasonable intervalsby the management during the year and no material discrepancies were noticed on suchphysical verification.
iii. The company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained undersection 189 of the act. Therefore the provisions of clause 3(iii) (iii)(a) (iii)(b) and(iii)(c) of the said order are not applicable to the company.
Iv. In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the companies act 2013in respect of the loans and investments made and guarantees and security provided by itas applicable.
V. According to the information and explanations given to us the company has notaccepted any deposits from the public within the meaning of sections 73 74 75 and 76 areof the act and the rules framed there under to the extentphysically verified by thenotified. Accordingly the provisions of clause 3(v) of the Order are not applicable tothe company.
Vi. To the best of our knowledge and as explained maintenance of cost records has notbeen specified by the central government under section 148(1) of the companies act 2013for or the business activities carried out by the company. Thus reporting under clause3(vi) of the order is not applicable to the company.
Vii. (a) according to information and explanation given to us the records of thecompany examined by us in our opinion the company is generally regular in depositingundisputed statutory dues in respect of provident fund employees' state insurancecustoms duty cess and other material statutory dues applicable to it with the appropriateauthorities. However in certain cases of income tax and goods and service tax there hasbeen a slight delay in depositing the statutory dues with appropriate authorities.
(b) the particulars of dues of income tax and service tax as on march 31 2021 whichhave not been deposited on account of disputes are as follows:
|Name of the statute the finance act 1994 ||Nature of dues service tax ||Amount ( rs.in lakhs) 104.20 ||Period to which the amount relates october 2011 to ||Forum where the dispute is pending the appellate tribunal central excise |
| || || ||March 2012 ||Customs and service tax |
|The finance act 1994 ||Service tax ||133.95 ||April 2013 to march 2017 ||The joint commissioner cgst & cx. |
|The income tax act 1961 ||Income tax ||171.84 ||Ay 2018-19 ||Income tax appellate tribunal |
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 banks at the balance sheet date. The company does not haveany loans or borrowings from government. Further the company has not issued anydebentures.
Iix. In our opinion during the current year the company has not raised moneys by wayof initial public offer or further public offer (including debt instruments). Furthermonies raised by way of the term loans have been applied by the company during the yearfor the purposes for which they were raised.
X. During the course of our examination of the books and records of the companycarried out in accordance with the generally accepted auditing practices in india andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the company or on the company by its officers or employeesnoticed or reported during the year nor we have been informed of any such case by themanagement.
xi. According to the information and explanations given to us the company has paid /provided managerial remuneration in accordance with the requisite approvals mandated bythe provisions of section 197 read with schedule v to the act.
Xii. In our opinion the company is not a nidhi company and the nidhi rules 2014 arenot applicable to it the provisions of clause 3(xii) of the order are not applicable tothe company.
Xiii. According to the information and explanation given to us the company has enteredinto transactions with related parties in compliance with the provisions of sections 177and 188 of the act. The details of such related party transactions have been disclosed inthe standalone ind
As financial statements as required under the indian
Accounting standard (ind-as) 24 "related party
Disclosures" specified under section 133 of the act read with rule 7 of thecompanies (accounts) rules 2014.
Xiv. The company has neither made any preferential allotment of shares or fully orpartly convertible debentures nor made any private placement of fully or partlyconvertible debentures during the year under review. Accordingly the provisions of clause3(xiv) of the order is not applicable to the company.
Xv. According to the information and explanations given to us the company has notentered into any non-cash transactions with its directors or persons connected to itsdirectors. Accordingly the provisions of clause 3(xv) of the order are not applicable tothe company.
xvi. The company is not required to be registered under section 45-ia of the reservebank of india act 1934. Accordingly the provisions of clause 3(xvi) of the order are notapplicable to the company.
Annexure b to independent auditors' report - march 31 2021
Referred to in paragraph 2 (f) under report on other legal and regulatoryrequirements' section of our report of even date to the members of navkar corporationlimited
Report on the internal financial controls under clause (i) of sub-section 3 of section143 of the companies act
2013 ("the act")
We have audited the internal financial controls with reference to ind as financialstatements of navkar corporation limited ("the company") as of march 31 2021 inconjunction with our audit of the ind as financial statements of the
Company for the year ended on that date.
Management's responsibility for internal financial controls
The company's management is responsible for establishing and maintaining internalfinancialcontrols based on the internal control ind as financial statements criteriaestablished by the
Company considering the essential components of internal control stated in the guidancenote on audit of internal financial controls over financial reporting (the "guidancenote") issued by the institute of chartered accountants of india ("icai").These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to the company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the companies act 2013.
Our responsibility is to express an opinion on the company's internal financialcontrols over financial reporting with reference to these ind as financial statementsbased on our audit. We conducted our audit in accordance with the
Guidance note and the standards on auditing as specified under section 143(10) of theact to the extent applicable to an audit of internal financial controls both issued bythe
Institute of chartered accountants of india. Those standards and the guidance noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting with reference to these ind as financial statements 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 with reference to theseind as financial statements and their operating effectiveness. Our audit of internalfinancial controls over financial reporting included obtaining an understanding ofinternal financial controls over financial reporting with reference to these ind asfinancial statements assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the ind as financial statementswhether 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 with reference to these ind as financial statements.
Meaning of nternali financial controls over financial reporting with reference to theseind as financial statements
a company's internal financial control over financial reporting with reference to theseind as financial statements is a process designed to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of ind as financialstatements for external purposes in accordance with generally accepted accountingprinciples. A company's internal financial control over financial reporting with referenceto these ind as financial statements includes those policies and procedures that:
(i) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
(ii) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of ind as financial statements in accordance with generally acceptedaccounting principles and that receipts and on expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and
(iii) 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 ind as financial statements.
Nherenti limitations of internal financial controls over financial reporting withreference to these ind as
because of the inherent limitations of internal financial controls over financialreporting with reference to these ind as financial statements including the possibilityof collusion or improper management override of controls material misstatements due toerror or fraud may occur and not be . Detected. Also projections of any evaluation of theinternal financial controls over financial reporting with reference to these ind asfinancial statements to future periods are subject to the risk that the internal financialcontrol over financial reporting with reference to these ind as financial statements maybecome inadequate because of changes in conditions or that the degree of compliance withthe policies or procedures may deteriorate.
In our opinion and to the best of our information and according to the explanationgiven to us the company has in all material respects an adequate internal financialcontrol system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31 march 2021 based on the internalcontrol over financial reporting with reference to ind as financial statements 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.
For uttam abuwala ghosh & associates
Chartered accountants icai firm registration number: 111184w
| ||Ajaysingh chauhan |
| ||Partner |
|Place: navi mumbai ||Membership no: 137918 |
|Date: may 28 2021 ||Udin: 21137918aaaabi9314 |