To The Members of Northern Projects Limited Report on the Standalone Financial
Statements
I have audited the standalone financial statements of Northern Projects Limited
("the Company"), which comprise the Balance Sheet as at 31st March, 2021, the
Statement of Profit Loss and the Cash Flow Statement for the year then ended, and notes to
the financial statements, including a summary of the significant accounting policies and
other explanatory information.
In my opinion and to the best of my information and according to the explanations given
to me, the aforesaid financial statements give the information required by the Act in the
manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India, of the state of affairs of the Company as at 31st
March, 2021 and 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 under
section 143(10) of the Companies Act, 2013. My responsibilities under those Standards are
further described in the Auditors Responsibilities for the Audit of the Financial
Statements section of my report. I am independent of the company in accordance with the
Code of Ethics issued by the institute Of Chartered Accountants of India together with
ethical requirements that are relevant to my audit of the financial statements under the
provisions of the Companies Act, 2013 and the rules there under, and I have fulfilled my
other ethical responsibilities in accordance with these requirements and the code of
Ethics. I believe that the audit evidence I have obtained is sufficient and appropriate to
provide 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.
Managements Responsibility for the Standalone Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section
134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of
these standalone financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act. This responsibility also includes maintenance of
adequate accounting records in accordance with the provisions of the Act for safeguarding
of the assets of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting policies; making
judgments and estimates that are reason-able and prudent; and design, implementation and
maintenance of adequate internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error
In preparing the financial statements, management is responsible for assessing the
Companys ability to continue as a going concern, disclosing, as applicable matters
related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
Auditors Responsibilities
My objectives are to obtain reasonable assurance about whether the financial statements
as a whole are free from material misstatement, whether due to fraud or error and to issue
an auditors report that includes my opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with SAs will
always detect a material misstatement when it exists Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of
these financial statements.
Other Matter
None
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2016 ("the Order"),
issued by the Central Government of India in terms of sub-section(11) of section 143 of
the Companies Act,2013, I give in the Annexure A a statement on 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, I report that:
a) I have sought and obtained all the information and explanations which to the best of
my 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 the
Company 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 Statement
dealt with by this Report are in agreement with the books of account.
d) In my opinion, the aforesaid financial statements comply with the Accounting
Standards 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 1st
April 2020 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2021 from being appointed as a director in terms of Section
164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial
reporting of the Company 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 Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in my opinion
and 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 financial
position in its financial statements - Refer Clause (a) of Note19 to the financial
statements;
ii) The Company did not have any long term contracts including derivative contract as
at 31st March, 2021.
iii) There were no amount which were required to be transferred to the Investors
Education and Protection Fund by the company as at 31st March, 2021.
Place: Kolkata
Date: 29.06.2021
ANNEXURE A TO THE INDEPENDENT AUDITORS REPORT
(Referred to Paragraph 1 of Report on Other Legal and Regulatory Requirements of our
Report of even date)
On the basis of such checks as we considered appropriate and in terms of the
information and explanations given to me, I state that:
i Since there was no fixed asset as on balance sheet date, comment on paragraph (1) is
not 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 granted
unsecured loan, to the companies covered in the register maintained under section 189 of
the Companies Act, 2013.
a) In my opinion, the rate of interest and other terms and conditions on which the
loans & advances, granted to the Companies listed in the register maintained under
Section 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 the
register maintained under section 189 of the Act, the borrowers have been regular in the
payment 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 to
Companies listed in the register maintained under section 189 of the Act.
iv. According to the information and explanations given to me in respect of loans,
investments, guarantees and security provision of Section 185 and 186 of the Companies
Act, 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 such
deposits, taken by the Company, for which directives issued by the Reserve Bank of India
and the provisions of sections 73 to 76 or any other relevant provisions of the Companies
Act,2013 and the rules framed there under, were applicable.
vi. As explained to me by the management, maintenance of cost records under sub section
148(i) of the Companies Act, 2013 was not applicable.
vii. a) According to the records of the Company and as per the information and
explanations given to me, it was regular in depositing undisputed statutory dues like
Provident Fund, Employees State Insurance, Income Tax, Goods and Service Tax, Customs
Duty, Cess and Other Statutory Dues with the appropriate authorities and there was no
outstanding statutory dues as at 31.03.2020 for the period of more than 6 months from the
date they became payable.
b) There was no disputed statutory dues, which have not been deposited with the
appropriate authorities cave and except disputed statutory dues in respect of Income Tax
amounting to 245.27 lakhs which is pending before ITAT for Assessment years 2002-2003,
2005-2006 and 2006-2007. [Refer Note 16(a)],
viii. On the basis of records examined by me and the information and explanations given
to me, the Company did not default in repayment of dues to Financial Institutions, Banks,
Government or dues to debenture holders.
ix. The Company did not raise any money by way of initial public offer or further
public offer or term loan during the year under review, hence the comment on the said
paragraph of order is not applicable.
x. During the course of my examination of the books and records of the Company, carried
out in accordance with the generally accepted audit practices in India, and according to
the information and explanation given to me, I have neither come across instance of fraud
on or by the Company, noticed or reported during the year, nor have I been informed of
such case by the management.
xi. Managerial remuneration has been paid by the company in accordance with the
provision 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 with
section 177 and 188 of Companies Act 2013, where applicable and the details have been
disclosed in notes to accounts as applicable by accounting standard.
xlv. The Company did not make any preferential allotment or private placement of shares
or fully or partly convertible debentures during the year under review hence comment on
the said paragraph of order is not applicable.
xv. To the best of my knowledge and belief and as per the information and explanations
given to me, the Company did not enter into any non-cash transaction with directors or
persons connected with him
xvi. The Company obtained Registration Under Section 45-IA of Reserve Bank of India
Act, 1934.
|
For AMITAVA SARKAR &CO. |
|
Chartered Accountants |
|
PRN : 328605E |
| Place: Kolkata Date: 29.06.2021 |
|
|
Amitava Sarkar |
|
Proprietor |
|
Membership No 050290 |
|
UDIN: 21050290AAAAAM6562 |
ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT
Report on the Internal Financial Controls under Clause (f) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act").
I have audited the internal financial controls over financial reporting of Northern
Projects Limited ("the Company") as of 31st March, 2021 in conjunction with my
audit of the financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities
include the design, implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the orderly and efficient conduct of its
business, including adherence to companys policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation of reliable financial information, as
required under the Companies Act, 2013.
Auditors Responsibility
My responsibility is to express an opinion on the Companys internal financial controls
over financial reporting based on our audit. I conducted my audit in accordance with the
Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the
"Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be
prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to
an audit of internal financial controls, both applicable to an audit of Internal Financial
Controls and, both issued by the Institute of Chartered Accountants of India. Those
Standards and the Guidance Note require that I comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance about whether adequate internal
financial controls over financial reporting was established and maintained and if such
controls operated effectively in all material respects.
My audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. My audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
I believe that the audit evidence I have obtained is sufficient and appropriate to
provide a basis for my audit opinion on the Companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that(1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorisations of
manage-ment and directors of the company: and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorised acquisition, use, or disposition of the
companys 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 financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In my opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at 31st March, 2021, based on the
internal control over financial reporting criteria established by the Company considering
the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India.
Place: Kolkata
Date: 29.06.2020
+91-9892691696
