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Northern Project Ltd.

BSE: 508924 Sector: Financials
NSE: N.A. ISIN Code: INE01CZ01010
BSE 05:30 | 01 Jan Northern Project Ltd
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Northern Project Ltd. (NORTHERNPROJECT) - Auditors Report

Company auditors report

To The Members of Northern Projects Limited

Report on the Standalone Financial Statements

1 have audited the standalone financial statements of Northern Projects Limited("the Company") which comprise the Balance Sheet as at 31st March 2019 theStatement of Profit Loss and the Cash Flow Statement for the year then ended and notes tothe financial statements including a summary of the significant accounting policies andother explanatory information.

In my opinion and to the best of my Information and according to the explanations givento me the aforesaid financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2019 and profit / loss and its cash flows for the year ended on that date.

Basis for opinion

I. conducted my audit in accordance with Standards of Auditing (SAs) specified undersection 143(10) of the Companies Act 2013. My responsibilities under those Standards arefurther described in the Auditor's Responsibilities for the Audit of the FinancialStatements section of my report. I am independent of the company in accordance with theCode of Ethics issued by the institute Of Chartered Accountants of India together withethical requirements that are relevant to my audit of the financial statements under theprovisions of the Companies Act 2013 and the rules there under and I have fulfilled myother ethical responsibilities in accordance with these requirements and the code ofEthics. I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my opinion.

Key Audit Matters

I am of the view that there are no Key Audit Matters to communicate in my audit report.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reason-able and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

Auditor's Responsibilities

My objectives are to obtain reasonable assurance about whether the financial statementsas a whole are free from material misstatement whether due to fraud or error and toissue an auditor's report that includes my opinion. Reasonable assurance is a high levelof assurance but is not a guarantee that an audit conducted in accordance with SAs willalways detect a material misstatement when it exists. Misstatements can arise from fraudor error and are considered material if individually or in the aggregate they couldreasonably be expected to influence the economic decisions of users taken on the basis ofthese financial statements.

Other Matter

None

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 sub-section(11) of section 143 ofthe Companies Act2013 I give in the Annexure 'A' a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable

2. As required by Section 143 (3) of the Act I report that:

a) I have sought and obtained all the information and explanations which to the best ofmy knowledge and belief were necessary for the purposes of my audit.

b) In my 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 and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

d) in my opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

e) On the basis of the written representations received from the directors as on 1stApril 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in terms of Section164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure -B.

g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in my opinionand to the best of my information and according to the explanations given to me :

i) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Clause (a) of Note19 to the financialstatements;

ii) The Company did not have any long term contracts including derivative contract asat 31st March 2019.

iii) There were no amount which were required to be transferred to the InvestorsEducation and Protection Fund by the company as at 31st March 2019.

For AMITAVA SARKAR &CO.

Chartered- Accountants

FRN : 328605E

Amitava Sarkar Proprietor

Membership No 050290

Place: Kolkata

Date: 16.04.2019

ANNEXURE 'A' TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to Paragraph 1 of Report on Other Legal and Regulatory Requirements of ourReport of even date)

On the basis of such checks as we considered appropriate and in terms of theinformation and explanations given to me I state that:

i. Since there was no fixed asset as on balance sheet date comment on paragraph (1) isnot applicable.

ii. Since there was no inventory comment on paragraph (2) is not required.

iii. According to the information and explanations given to me the Company has grantedunsecured loan to the companies covered in the register maintained under section 189 ofthe Companies Act 2013.

a) In my opinion the rate of interest and other terms and conditions on which theloans & advances granted to the Companies listed in the register maintained underSection 189 of the Act were not prima facie prejudicial to the interest of the Company.

b) In the case of the loans & advances granted to the companies listed in theregister maintained under section 189 of the Act the borrowers have been regular in thepayment of the principal and interest as stipulated and as per mutual consent

c) There were no overdue amounts in respect of the loans & advances granted toCompanies listed in the register maintained under section 189 of the Act

iv. According to the information and explanations given to me in respect of loansinvestments guarantees and security provision of Section 185 and 186 of the CompaniesAct 2013 were complied with as the Company is a Non Banking Finance Company.

v. According to the information and explanations given to me there was no suchdeposits taken by the Company for which directives issued by the Reserve Bank of Indiaand the provisions of sections 73 to 76 or any other relevant provisions of the CompaniesAct2013 and the rules framed there under were applicable.

vi. As explained to me by the management maintenance of cost records under sub section148(i) of the Companies Act 2013 was not applicable.

vii. a) According to the records of the Company and as per the information andexplanations given to me it was regular in depositing undisputed statutory dues likeProvident Fund Employees' State Insurance Income Tax Goods and Service Tax CustomsDuty Cess and Other Statutory Dues with the appropriate authorities and there was nooutstanding statutory dues as at 31.03.2019 for the period of more than 6 months from thedate they became payable.

b) There was no disputed statutory dues which have not been deposited with theappropriate authorities save and except disputed statutory dues in respect of Income Taxamounting to ' 245.27 lakhs which is pending before ITAT for Assessment years 2002-20032005-2006 and 2006-2007. [Refer Note 19(a)]

viii. On the basis of records examined by me and the information and explanations givento me the Company did not default in repayment of dues to Financial Institutions BanksGovernment or dues to debenture holders.

ix. The Company did not raise any money by way of initial public offer or furtherpublic offer or term loan during the year under review hence the comment on the saidparagraph of order is not applicable.

x. During the course of my examination of the books and records of the Company carriedout in accordance with the generally accepted audit practices in India and according tothe information and explanation given to me I have neither come across instance of fraudon or by the Company noticed or reported during the year nor have I been informed ofsuch case by the management.

xi. Managerial remuneration has been paid by the company in accordance with theprovision of Section 197 read with Schedule V to the Companies Act.

xii. Paragraph 12 regarding the Nidhi Company is not applicable to the Company.

xiii. As explained to me transactions with the related parties were in compliance withsection 177 and 188 of Companies Act 2013 where applicable and the details have beendisclosed in notes to accounts as applicable by accounting standard.

xiv. The Company did not make any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review hence comment onthe said paragraph of order is not applicable.

xv. To the best of my knowledge and belief and as per the information and explanationsgiven to me the Company did not enter into any non-cash transaction with directors orpersons connected with him.

xvi. The Company obtained Registration Under Section 45-IA of Reserve Bank of IndiaAct 1934.

For AMITAVA SARKAR &CO.

Chartered Accountants

FRN : 328605E

Amitava Sarkar Proprietor

Membership No 050290

Place: Kalkata

Date: 16.04.2019

ANNEXURE 'B' TO THE INDEPENDENT AUDITOR'S REPORT

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

I have audited the internal financial controls over financial reporting of NorthernProjects Limited ("the Company") as of 31st March 2019 in conjunction with myaudit of the 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 internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial informa-tion asrequired under the Companies Act 2013.

Auditors' Responsibility

My responsibility is to express an opinion on the Company's Internal financial controlsover financial reporting based on our audit. I conducted my audit in accordance with theGuidance Note on Audit of Internal Financial Controls over Financial Reporting (the"Guidance Note") and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that l comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

My audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. My audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that(1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanage-ment 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 Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In my opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2019 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For AMITAVA SARKAR & CO.

Chartered Accountants

FRN : 328605E

Amitava Sarkar Proprietor

Membership No 050290

Place: Kolkata

Date: 16.04.2019

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