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NPR Finance Ltd.

BSE: 530127 Sector: Financials
NSE: N.A. ISIN Code: INE446D01011
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NSE 05:30 | 01 Jan NPR Finance Ltd
OPEN 14.90
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VOLUME 964
52-Week high 18.00
52-Week low 11.50
P/E
Mkt Cap.(Rs cr) 9
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 14.90
CLOSE 14.20
VOLUME 964
52-Week high 18.00
52-Week low 11.50
P/E
Mkt Cap.(Rs cr) 9
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

NPR Finance Ltd. (NPRFINANCE) - Auditors Report

Company auditors report

TO THE MEMBERS OF NPR FINANCE LIMITED

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying Financial Statements of NPR FINANCELIMITED ("the Company") which comprise the Balance sheet as at 31stMarch 2021 the Statement of Profit and Loss including the statement of OtherComprehensive Income the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and notes to the Financial Statements including a summary ofsignificant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Financial Statements give the information requiredby the Companies Act 2013 as amended ("the Act") in the manner so required andgive a true and fair view in conformity with the Indian Accounting Standards ("INDAS") prescribed under section 133 of the Act readwith the Companies (IndianAccounting Standards) Rules 2015 as amended and other accounting principles generallyaccepted in India of the state of affairs of the Company as at 31st March2021 its Loss after taking into account other comprehensive income its cash flows andthe changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit of financial statements in accordance with theStandards on Auditing ("SAs") specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements section of our report.We are independent of the Company in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India ("ICAI") together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules made there under and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.

We have determined the matters described below to be the key auditmatters to be communicated in our report. We have fulfilled the responsibilities describedin the Auditors' responsibilities for the audit of the Financial Statements section of ourreport including in relation to these matters. Accordingly our audit included theperformance of procedures designed to respond to our assessment of the risks of materialmisstatement of the Financial Statements. The results of our audit procedures includingthe procedures performed to address the matters below provide the basis for our auditopinion on the accompanying Financial Statements:

Key Audit Matter Auditor's Response
1. Recovery and Collection
The Company is into the business of Non Banking Financing activities.In the present economic scenario the primary risk involved in financing is risk of recovery and Collection. We have reviewed the recovery modus of the company and found that they are robust in collecting the bad debts also. We also had a discussion with the management and found that adequate precaution has been taken and that they have set a prudent upper-limit in financing.
2. IT systems and controls
Financial accounting and reporting processes especially in the financing activities are fundamentally reliant on IT systems and IT controls to process significant transaction volumes hence we identified IT systems and controls over financial reporting as a key audit matter for the Company. We tested the operating effectiveness of the Company's IT access controls over the information systems that are important to financial reporting and various interfaces configuration and other identified application controls.
3. Ind AS Implementation (major changes)
Fair Value of Unquoted Equity Investments (Other than Investments in Subsidiaries and Joint Ventures) Investment in Unquoted equity shares are measured at Fair value. The Fair value of these financial assets involved management's judgment because these securities are not traded in an active market. Since this valuation is a Level 3 type of valuation in accordance with Ind AS 113 Fair Value Measurement where one or more significant inputs to the fair value measurement is unobservable . Accordingly this item is considered to be a Key Audit Matter due to significant judgments associated with estimating the fair value of investment. We discussed with management the basis used in determining the fair value and evaluated the appropriateness of the valuation methodologies used by management and compared it to industry norms and the requirements in Ind AS. We confirm the adequacy of the disclosures made in the Financial statements.
4. COVID effect
The "corona virus" - hereinafter "COVID-19" whose outbreak took place in India in the last quarter of the financial year 2019-2020 has continued to impact the financial performance in 2020-2021. The lockdown restrictions which were announced first on 24th March 2020 across various parts of India - were subsequently extended for various periods of time in different parts of India. Unlock Guidelines were also issued from time to time to enable the resumption of economic activities. The virus is not gone yet and continues to impose challenge to the world economy. The extent to which the COVID-19 pandemic will impact the NBFC's provision on assets will depend on future developments which are highly uncertain including among the other things any new information concerning severity of the COVID-19 pandemic and any action to contain its spread or mitigate its impact whether the government mandated or opted by the NBFC. Accordingly actual credit loss may also be different from that which is estimated. Evaluated Management's control over collation of relevant information used for determining Expected Credit Loss on account of Covid-19. Assessed the criteria for staging of financial assets based on their past due status to check the compliance with requirement of Ind AS 109 and RBI Prudential Norms applicable for ND-NSI NBFCs.
Considering the unique and evolving nature of the COVID-19 pandemic which has continued to impact the Company's business operations the extent of its economic impact depends on: future developments including governmental and regulatory measures and the Company's responses thereto. Thus in view of the fact that such high degree of Management's judgment is involved in estimation of various parameters in the ambit of the COVID-19 phenomenon - the COVID- 19 effect has been identified as a Key Audit matter.

Other Matters:

We draw attention with respect to audit procedure followed during theyear. Further to the continuous spreading of COVID -19 across India the Indian Governmentannounced lockdown commencing from 16th May 2021 In West Bengal which is tillcontinuing with certain relaxations for essential services to contain the spread of thevirus This has resulted in restriction on physical visit to the client locations and theneed for carrying out alternative audit procedures as per the Standards on Auditingprescribed by the Institute of Chartered Accountants of India (ICAI).

As a result of the above the audit was carried out based on remoteaccess of the data as provided by the management. We have been represented by themanagement that the data provided for our audit purposes is correct complete and reliableand are directly generated by the accounting system of the Company without any furthermanual modifications.

We bring to the attention of the users that the audit of the financialstatements has been performed in the aforesaid conditions.

Our audit opinion is not modified in respect of the above.

Information Other than the Financial Statements and Auditor's ReportThereon

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the Company'sannual report but does not include the financial statements and our auditor's reportthereon. Our opinion on the 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 financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained during the course of our audit or otherwise appears to be materiallymisstated.

If based on the work we have performed we conclude that there is amaterial misstatement of this other information; we are required to report that fact. Wehave nothing to report in this regard.

Management's responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these 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 the IndianAccounting Standards (Ind AS) specified under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation 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 financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the financial statements management is 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.

The Board of Directors is also responsible for overseeing the Company'sfinancial reporting process.

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. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of thefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal financial controls relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the company has adequate internal financial controls system 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 the Companyto 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.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine 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 public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould 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 2016("the Order") issued by the Central Government of India in terms of sub-section(11) of section 143 of the Act we give in the "Annexure A" a statementon the matters specified in paragraphs 3 and 4 of 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 explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss including theStatement of Other Comprehensive Income the Statement of Cash Flows and Statement ofChange in Equity dealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended;

(e) On the basis of written representations received from thedirectors as on 31st March 2021 taken on record by the Board of Directorsnone of the Directors are disqualified as on 31st March 2021 from beingappointed as a Director in terms of section 164(2) of the Act.

(f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B".

(g) With respect to the other matters to be included in the Auditor'sReport as per the Companies (Amendment) Act 2017 section 197(16) of the Act regardingthe Managerial remuneration:

In our opinion and according to the information and explanations givento us the remuneration paid by the Company to its directors during the current year is inaccordance with the provisions of Section 197 of the Act. The remuneration paid to anydirector is not in excess of the limit laid down under Section 197 of the Act.

(h) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 (asamended) in our opinion and to the best of our information and according to theexplanations given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its financial statements - Refer Note No. 39 to the financialstatements;

ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses;

iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company at the end of the year.

Referred to Paragraph 1 under the heading of "Report on OtherLegal and Regulatory

Requirements" of our report of even date

i. In respect of the Company's fixed assets:

(a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.

(b) The Company has a programme of physical verification of fixedassets on a yearly basis which in our opinion is reasonable having regards to the size ofthe Company and nature of its business. In accordance with this programme certain fixedassets were physically verified by the management during the year. According to theinformation and explanations given to us no material discrepancies were noticed on suchverification.

(c) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company.

ii. The Company has carried out physical verification of inventory atreasonable intervals. As per the information and explanations given to us no materialdiscrepancies were noticed during such verification.

iii. In our opinion and according to the information and explanationsgiven to us the Company has granted unsecured loans to companies firms or other partiescovered in the register maintained under section 189 of the Companies Act 2013 inrespect of which:

a) In our opinion and according to the information and explanationsgiven to us the terms and conditions of the grant of such loans are not prejudicial tothe Company's interest.

b) The repayment of principal & payment of interest has beenstipulated and the repayment and receipts are regular.

c) The amounts are not overdue.

iv. In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of section 185 and 186 of theAct with respect to the loans given investments made guarantees and securities given.

v. The Company has not accepted any deposits from the public within themeaning of Sections 73 to 76 of the Companies Act 2013 and any other relevant provisionsof the Act and the relevant rules framed there under.

vi. The Company is duly registered as a small Enterprise under MicroSmall and Medium Enterprises Development Act 2006 and therefore the maintenance of costrecords and cost Audit under section 148(1) of the Companies Act 2013 is not required asper the proviso to Rule 3 of Companies (Cost Records and Audit) Rules 2014.

vii. (a) According to the information and explanations given to us andon the basis of our examination of records of the Company Provident Fund Employees'State Insurance Income Tax Goods and Services Tax and any other statutory dues havebeen regularly deposited during the year by the Company with appropriate authorities.

According to the information and explanations given to us noundisputed amounts payable in respect of Provident Fund Employees' State InsuranceIncome Tax Goods and Services Tax and any other statutory dues as applicable were inarrears as at 31st March 2021 for a period of more than six months from thedate they became payable.

(b) According to the information and explanations given to us and onthe basis of our examination of the records of the Company there are disputed statutoryliabilities with respect to Income Tax as at 31st March 2021 given below:

Name of the Statute Nature of dues Amount (in lakhs) Period to which the amount relates Forum where dispute is pending
Income Tax Act 1961 Income Tax Demand 0.03 AY 204-2005 Jurisdictional AO (response has been submitted for rectification of demand being not due)
Income Tax Act 1961 Income Tax Demand 34.55 AY 2005-2006 AO (response has been submitted for rectification of demand being not due)
Income Tax Act 1961 Income Tax Demand 2.19 (inclusive of accrued interest of Rs 1.61 lacs) AY 2007-2008 AO (response has been submitted for rectification of demand being not due)
Income Tax Act 1961 Income Tax Demand 0.16 (inclusive of accrued interest of Rs .05 lacs) AY 2009-2010 Jurisdictional AO (response has been submitted for rectification of demand being not due)
Income Tax Act 1961 Income Tax Demand 0.27 AY 2010-2011 CPC New Delhi (response has been submitted for rectification of demand being not due)
Income Tax Act 1961 Income Tax Demand 0.87 AY 2011-2012 CPC New Delhi (response has been submitted for rectification of demand being not due)
Income Tax Act 1961 Income Tax Demand 44.20 AY 2017-2018 CIT Appeal
Income Tax Act 1961 Income Tax Demand 29.15 AY 2018-2019 CIT Appeal
Income Tax Act 1961 Income Tax Demand 0.11 AY 2019-2020 CPC New Delhi

viii. In our opinion and according to the information and explanationsgiven to us the Company has not defaulted in repayment of loans or borrowings to banksand financial institution. The Company did not have any outstanding loans or borrowingsfrom government and the Company has not issued any debentures.

ix. In our opinion and according to the information and explanationsgiven to us the Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. AccordinglyClause 3(ix) of the Order is not applicable.

x. To the best of our Knowledge and according to the information andexplanation given to us no fraud by the company or on the Company by its officers oremployees has been noticed or reported during the year.

xi. In our opinion and according to the information and explanationsgiven to us and based on examination of records of the Company the managerialremuneration has been provided in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Companies Act 2013.

xii. According to the information and explanations given to us in ourOpinion the Company is not a nidhi company. Accordingly Clause 3(xii) of the Order is notapplicable.

xiii. According to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with sections 177 and 188 of the Act wherever applicable anddetails of such transactions have been disclosed in the Note No. 46 of the notes to thefinancial statements as required by the applicable Indian accounting standards (Ind AS).

xiv. According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year. Accordingly paragraph 3(xiv) of the Order is not applicableto the Company.

xv. According to the information and explanations given to us and basedon our examination of the records of the Company the Company has not entered intonon-cash transactions with directors or persons connected with him. Accordingly paragraph3(xv) of the Order is not applicable to the Company.

xvi. The Company is a Non- Banking Financial Institution withoutaccepting Public Deposits registered under section 45-IA of the Reserve Bank of India Act1934 having valid Certificate of Registration.

Referred to Paragraph 2(f) under the heading of "Report on OtherLegal and Regulatory Requirements" of our report of even date

Report on the Internal Financial Controls Over Financial Reportingunder Clause (i) of Subsection 3 of Section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls over financialreporting of NPR FINANCE LIMITED ("the Company") as of 31stMarch 2021 in conjunction with our audit of the financial statements of the Company forthe year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors 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'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") issued by the Institute of CharteredAccountants of India and the Standards on Auditing prescribed under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controls.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and 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.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

Company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that:

(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;

(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorizations of management and directors of thecompany; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assets thatcould have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion and to the best of our information and according to theexplanations given to us 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 2021based on the internal control over financial reporting 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 Institute ofChartered Accountants of India.

For DEOKI BIJAY & CO
Chartered Accountants
Firm's Registration No. 313105E
D.N AGRAWAL
(Partner)
Place: Kolkata Membership No 051157
Date: 30th day of June 2021 UDIN- 20051157AAAADJ2797

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