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Navkar Corporation Ltd.

BSE: 539332 Sector: Others
NSE: NAVKARCORP ISIN Code: INE278M01019
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OPEN 48.20
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VOLUME 21515
52-Week high 90.00
52-Week low 31.60
P/E 6.95
Mkt Cap.(Rs cr) 723
Buy Price 47.80
Buy Qty 328.00
Sell Price 48.00
Sell Qty 9.00
OPEN 48.20
CLOSE 47.99
VOLUME 21515
52-Week high 90.00
52-Week low 31.60
P/E 6.95
Mkt Cap.(Rs cr) 723
Buy Price 47.80
Buy Qty 328.00
Sell Price 48.00
Sell Qty 9.00

Navkar Corporation Ltd. (NAVKARCORP) - Auditors Report

Company auditors report

To the Members of

NAVKAR CORPORATION LIMITED

Report on the Audit of Ind AS Financial Statements - 31st March 2022

Opinion

We have audited the accompanying Ind AS financial statements of NAVKAR CORPORATION LIMITED(‘the Company') which comprise the Balance Sheet as at March 31 2022 and theStatement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and Statement of Cash Flows for the year then ended and notes to the IndAS financial statements including a summary of the significant accounting policies andother explanatory information (hereinafter referred to as ‘the Ind AS financialstatements').

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards (‘Ind AS')prescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended and other accounting principles generally accepted inIndia of the state of affairs of the Company as at March 31 2022 its profit (includingother comprehensive income) changes in equity and its cash flows for the year ended onthat date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Ind AS FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India (‘ICAI')together with the ethical requirements that are relevant to our audit of the Ind ASfinancial statements under the provisions of the Act and the Rules thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theICAI's Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the Ind aS financialstatements.

Emphasis of Matter

We draw attention to Note no. 51 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 Ind AS financial statements for the financial year endedMarch 31 2022. These matters were addressed in the context of our audit of the Ind ASfinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. In addition to the matters described in the Emphasisof Matter Para above we have determined the matters described below to be the key auditmatters to be 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 Ind AS 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 rendered 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. • We performed sample tests of individual sales transaction and traced to related documents considering the terms of performance.
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 tested cut-off procedures with respect to year-end sales transactions made.
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 also performed analytical procedures of revenue by streams to identify any unusual trends.
Revenue is a key parameter to ascertain the Company's performance. 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. • We have identified invoices booked in tracker software and with books of account and verified the reconciliation for differences.
Conclusion
Accordingly due to the significant risk associated with revenue 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 Ind AS financial statements. 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 Ind AS's.
2. Capitalization of property plant and equipment intangible assets and related depreciation and amortization
The company has incurred significant capital expenditure on account of execution of Morbi Project and other fixed assets to improve operational efficiency. Our procedures included the following :
We considered Capital expenditure as a Key audit matter due to: • We obtained an understanding of the Company's capitalization policy and assessed for compliance with the relevant accounting standards.
• Significance of amount incurred on such items during the year ended March 31 2022.
• Judgment and estimate required by management in assessing assets meeting the capitalization criteria set out in Ind AS 16 Property Plant and Equipment. • We performed substantive testing on a sample basis for element of capitalized costs along with reconciliation directly attributable cost including verification of underlying supporting evidence and understanding nature of the costs capitalized.
• Judgment involved in determining the eligibility of costs including borrowing cost and other directly attributable costs for capitalization as per the criteria set out in Ind AS 16 Property Plant and Equipment along with Ind AS 23 Borrowing Costs. • In relation to borrowing costs we obtained the supporting calculations verified the inputs to the calculation and tested the arithmetical accuracy of the model.
Conclusion: Based on the procedures performed no issues were noted from our testing with respect to capitalization of work in progress and Property Plant and Equipment.

Other Information

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 Ind AS financial statements and our auditor's report thereon.

Our opinion on the Ind AS financial statements does not cover the other information andwe do not express any form of assurance conclusion thereon.

In connection with our audit of the Ind AS financial statements our responsibility isto read the other information and in doing so consider whether the other information ismaterially inconsistent with the Ind AS financial statements or our knowledge obtained inthe audit or otherwise 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 Ind AS Financial Statements

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 I nd AS financial statementsthat give a true and fair view of the financial position financial performance (includingother comprehensive income) changes in equity and cash flows of the Company in accordancewith the accounting principles generally accepted in India including Ind AS specifiedunder Section 133 of the Act read with relevant rules issued thereunder. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of 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 Ind AS financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.

In preparing the Ind AS financial statements Board of Directors are responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic 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 Ind AS 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 Ind AS 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 Ind AS 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 in order todesign audit 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 Ind AS financialstatements in place and the operating effectiveness of such controls.

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

• Conclude on the appropriateness of Management's use of the going concern basisof accounting 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 Ind AS financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourAuditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the Ind AS financialstatements including the disclosures and whether the Ind AS financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify 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 Ind AS financial statements forthe financial year ended March 312022 and are therefore the key audit matters. Wedescribe these 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.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2020 ("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 comprehensiveincome) the statement of changes in equity and the Cash Flow Statement dealt with by thisReport are in agreement with the books of account;

d) In our opinion the aforesaid Ind AS financial statements comply with the Ind ASspecified under Section 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 2022 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2022 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 Ind aS financial statements of theCompany and the 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 opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid or provided by the Company to its directors during theyear is in accordance with the provisions of Section 197 of the Act read with Schedule Vof 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 2022 onits financial position in its Ind AS financial statements - Refer to Note 44 on ContingentLiabilities to the Ind AS 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 312022;

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company during the year ended March 31 2022;

iv. (a). The management has represented that to the best of it's knowledge and beliefas disclosed in Note 53 Other Statutory Information's to the Ind AS financial statementsno funds have been advanced or loaned or invested (either from borrowed funds or sharepremium or any other sources or kind of funds) by the company to or in any other person(s)or entity(ies) including foreign entities ("Intermediaries") with theunderstanding whether recorded in writing or otherwise that the Intermediary shallwhether directly or indirectly lend or invest in other persons or entities identified inany manner whatsoever by or on behalf of the company ("Ultimate Beneficiaries")or provide any guarantee security or the like on behalf of the Ultimate Beneficiaries;

(b). The management has represented that to the best of it's knowledge and belief asdisclosed in Note 53 Other Statutory Information's to the Ind AS financial statements nofunds have been received by the company from any person(s) or entity(ies) includingforeign entities ("Funding Parties") with the understanding whether recordedin writing or otherwise that the company shall whether directly or indirectly lend orinvest in other persons or entities identified in any manner whatsoever by or on behalf ofthe Funding Party ("Ultimate Beneficiaries") or provide any guarantee securityor the like on behalf of the Ultimate Beneficiaries; and

(c). Based on audit procedures which we considered reasonable and appropriate in thecircumstances nothing has come to their notice that has caused them to believe that therepresentations under sub-clause (a) and (b) contain any material mis-statement.

v. The company has not declared or paid any dividend during the year in contraventionof the provisions of section 123 of the Companies Act 2013.

For Uttam Abuwala Ghosh & Associates
Chartered Accountants
ICAI Firm Registration Number: 111184W
Ajaysingh Chauhan
Partner
Membership No: 137918
UDIN: 22137918AJFVE08960
Place: Navi Mumbai.
Date: May 19 2022

ANNEXURE A TO INDEPENDENT AUDITORS' REPORT - March 312022

Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' of our report of even date to the members of NAVKAR CORPORATION LIMITED

i. In respect of the Company's Property Plant and Equipment and Intangible Assets

(a) A. The Company is maintaining proper records showing full particulars includingquantitative details and situation of Property Plant and Equipment and Right of UseAssets and Investment Property.

B. The Company is maintaining proper records showing full particulars of IntangibleAssets.

(b) The Property Plant and Equipment have been physically verified by the Managementaccording to phased programme designed to cover all the items over a period of 2-3 yearswhich in our opinion is reasonable having regard to the size of the Company and thenature of its assets. Pursuant to the programme a portion of the Property Plant andEquipment has been physically verified by the Management during the year and no materialdiscrepancies have been noticed on such verification.

(c) According to the information and explanations given by the management the titledeeds of immovable properties including investment properties (other than properties wherethe company is the lessee and the lease agreements are duly executed in favour of thelessee) disclosed in the financial statements are held in the name of the Company as atbalance sheet date. The Company has constructed and repaired the road leading to ICD atVapi the land underneath which is not held in the name of the Company. However theCompany has treated this cost as capital expenditure on enabling asset under Ind AS 16 anddepreciated this asset over its useful life.

Description of Property Gross Carrying Value Held in name of Whether Promoter Director or their Relative or Employee Period held - indicate range where appropriate Reason for not being held in name of Company
Road (ICD at Vapi) Rs. 357.44 lakhs Government No Since 30'h November 2021 Enabling Assets

(d) There is no revaluation of Property Plant and Equipment (including Right of UseAssets) and intangible assets during the year.

(e) There is no proceeding has been initiated or pending against company as at March31 2022 for holding any benami property under the Prohibition of Benami PropertyTransactions Act 1988 and rules made thereunder.

ii. In respect of the Company's Inventory

(a) The physical verification of inventory has been conducted at reasonable intervalsby the Management during the year and no discrepancies of 10% or more in aggregate foreach class of inventory were noticed on such physical verification.

In our opinion and based on information and explanations given to us the coverage andprocedure of such verification by the management is appropriate having regard to the sizeof the Company and the nature of its operations. No discrepancies of 10% or more in theaggregate for each class of inventories were noticed on such physical verification ofinventories.

(b) According to the information and explanation given to us and on the basis ofexamination of the records of the Company the company has been sanctioned working capitallimit which is in excess of five crores in aggregate during the year from banks orfinancial institutions on the basis of security of current assets (Trade Receivables).Quarterly returns or statements filed by the company with such banks or financialinstitutions have differences with books of accounts due to understatement of tradereceivables in the quarterly returns / statement.

Rs. in lakhs
Quarter ending Value as per books of account Value as per quarterly return / statement Discrepancy (give details) Remarks 1
On Security of Trade Receivables
June 30 11144.02 11144.02 -- Temporary discrepancies due to finalization of quarterly result pending at the time of giving data to financial institutions.
September 30 11098.25 10713.08 385.17
December 31 9834.03 9767.99 66.04
March 31 9072.61 8630.81 441.81

iii. (a) During the year the Company has not provided loans advances in the nature ofloans stood guarantee or provided security to companies firms Limited LiabilityPartnerships or any other parties. Accordingly the requirement to report on clause3(iii)(a) of the Order is not applicable to the Company.

(b) During the year the Company has not made investment provided guarantees providedsecurity and granted loans and advances in the nature of loans to companies firmsLimited Liability Partnerships or any other parties. Accordingly the requirement toreport on clause 3(iii)(b) of the Order is not applicable to the Company.

(c) The Company has not granted loans and advances in the nature of loans to companiesfirms Limited Liability Partnerships or any other parties. Accordingly the requirementto report on clause 3(iii) (c) of the Order is not applicable to the Company.

(d) The Company has not granted loans or advances in the nature of loans to companiesfirms Limited Liability Partnerships or any other parties. Accordingly the requirementto report on clause 3(iii)(d) of the Order is not applicable to the Company.

(e) There were no loans or advance in the nature of loan granted to companies firmsLimited Liability Partnerships or any other parties. Accordingly the requirement toreport on clause 3(iii)(e) of the Order is not applicable to the Company.

(f) The Company has not granted any loans or advances in the nature of loans eitherrepayable on demand or without specifying any terms or period of repayment to companiesfirms Limited Liability Partnerships or any other parties. Accordingly the requirementto report on clause 3(iii)(f) of the Order is not applicable to the Company.

iv. In our opinion and according to the information and explanation given to us theCompany has not granted any loans investments guarantees or security covered underSection 185 and 186 of the Act. Accordingly paragraph 3(iv) of the Order is notapplicable to the Company.

v. The Company has not accepted any deposits within the meaning of Companies Sections73 74 75 and 76 of the Act and the Rules framed thereunder. Accordingly paragraph 3(v)of the Order is not applicable to the 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 Insurance Goodsand Service Tax Customs Duty Cess and other material statutory dues applicable to itwith the appropriate authorities.

(b) The particulars of dues of income tax and service tax as on March 312022 whichhave not been deposited on account of disputes are as follows:

Name of the statute Nature of dues Amount (Rs. in lakhs) Period to which the amount relates Forum where the dispute is pending
The Finance Act 1994 Service Tax 104.20 October 2011 to March 2012 The Appellate Tribunal Central Excise Customs and Service Tax
The Income Tax Act 1961 Income Tax 171.84 AY 2018-19 Deputy Commissioner of Income Tax-15(1)(2)

viii. There is no transaction related to previously unrecorded income that have beensurrendered or disclosed as income during the year in the tax assessments under the IncomeTax Act 1961 (Sec. 43 of 1961). Accordingly the reporting under clause 3(viii) of theOrder is not applicable to the Company.

ix. (a) In our opinion the Company has not defaulted in repayment of any loans orother borrowings or in the payment of interest thereon to any lender.

(b) The Company has not been declared willful defaulter by any bank or financialinstitution or government or any government authority.

(c) In our opinion and according to the information and explanation given to us by themanagement term loans were applied for the purpose for which the loans were obtained.

(d) On an overall examination of the financial statements of the Company no fundsraised on short-term basis have been used for the long-term purposes by the Company.

(e) According to the information and explanation given to us by the management andexamination of the records of the Company the Company does not have any investment insubsidiaries joint ventures or associate companies. Hence the question of raising anyfunds from any entity or person on account of or to meet the obligations of itssubsidiaries associates or joint ventures does not arise. Accordingly provisions of theclause 3(ix)(e) of the Order is not applicable to the Company.

(f) According to the information and explanations given to us by the management andexamination of the records of the Company the Company does not have any investment insubsidiaries joint ventures or associate companies (as defined under the Act). Hence thequestion of raising loan during the year against the pledge of securities held insubsidiaries joint ventures or associate companies does not arise. Accordinglyprovisions of the clause 3(ix)(f) of the Order is not applicable to the Company.

x. (a) The Company has not raised moneys by way of initial public offer or furtherpublic offer (including debt instruments) during the year. Hence the reporting underclause 3(x)(a) of the Order is not applicable.

(b) During the year the Company has not made any preferential allotment or privateplacement of shares or convertible debentures (fully or partly or optionally). Hence thereporting under clause 3(x)(b) of the Order is not applicable.

xi. (a) 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.

(b) No Report under sub-section (12) of section 143 of the Companies Act is filed inForm ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules 2014 withthe Central Government.

(c) We have taken into consideration the whistle blower complaints received by theCompany during the year while determining the nature timing and extent of our auditprocedures. However no such complaints have been received.

xii. The Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicable toit. Hence the reporting under clause 3(xii) of the Order is not applicable to theCompany.

xiii. The Company has entered into transactions with related parties in compliance withthe provisions of Sections 177 and 188 of the Act. The details of such related partytransactions have been disclosed in the Ind AS financial statements as required under theIndian Accounting Standard (Ind-AS) 24 "Related Party Disclosures" specifiedunder Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.

xiv. (a) The company has an internal audit system commensurate with the size and natureof its business.

(b) The Internal Auditors report of the Company issued till the date of the auditreport for the period under audit have been considered by us.

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 with itsdirectors. Hence the provisions of the sec.192 of the Companies Act 2013 are notapplicable to the Company.

xvi. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly the reporting under Clause 3(xvi) (a) (b) (c) and(d) of the Order is not applicable to the Company.

xvii. The Company has not incurred cash losses during the year covered by audit and inthe immediately preceding financial year. Accordingly the reporting under Clause 3(xvii)of the Order is not applicable to the Company.

xviii. There is no resignation of statutory auditors of the Company during the year.Accordingly the reporting under Clause 3(xviii) of the Order is not applicable to theCompany.

xix. On the basis of the financial ratios ageing and expected dates of realization offinancial assets and payment of financial liabilities other information accompanying thefinancial statements our knowledge of the Board of Directors and management plans we areof the opinion that no material uncertainty exists as on the date of the audit report thatindicates that the company is not capable of meeting its liabilities existing at the dateof balance sheet as and when they fall due within a period of one year from the balancesheet date. We however state that this is not an assurance as to the future viability ofthe Company. We further state that our reporting is based on the facts up to the date ofthe audit report and we neither give any guarantee nor any assurance that all liabilitiesfalling due within a period of one year from the balance sheet date will get dischargedby the Company as and when they fall due.

xx. The Company has fully spent the required amount towards Corporate SocialResponsibility (CSR) and there are no unspent CSR amount for the year requiring a transferto a Fund specified in Schedule VII to the Companies Act or special account in compliancewith the provision of sub-section (6) of section 135 of the said Act. Accordinglyreporting under clause 3 (xx) of the Order is not applicable for the year.

xxi. The Company is not required to prepare Consolidated Financial Statements. Hencethe reporting under clause 3(xxi) of the Order is not applicable to the Company.

For Uttam Abuwala Ghosh & Associates
Chartered Accountants
ICAI Firm Registration Number: 111184W
Ajaysingh Chauhan
Partner
Membership No: 137918
UDIN: 22137918AJFVE08960
Place: Navi Mumbai.
Date: May 19 2022

ANNEXURE B TO INDEPENDENT AUDITORS' REPORT - March 31 2022

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 312022 inconjunction with our audit of the Ind AS financial statements of the Company for the yearended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors 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 Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India(‘ICAI'). These responsibilities include the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its 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 Companies Act 2013.

Auditors' Responsibility

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 theStandards on Auditing as specified under Section 143(10) of the Act to the extentapplicable to an audit of internal financial controls both issued by the Institute ofChartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting withreference to these Ind AS financial statements was established and maintained and if suchcontrols 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 Internal 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 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.

Inherent Limitations of Internal Financial Controls Over Financial Reporting withReference to these Ind AS Financial Statements

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.

Opinion

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 2022 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
Membership No: 137918
UDIN: 22137918AJFVE08960
Place: Navi Mumbai.
Date: May 19 2022

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