To, \
he Members of
NAVKAR URBANSTRUCTURE LIMITED
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of NAVKAR URBANSTRUCTURE LIMITED, which
comprise the balance sheet as at 31st March 2023, and the statement of profit and
loss, statement of cash flows, notes to the financial statements, including a summary of
significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements give the information required by the
Companies Act, 2013 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 March 31, 2023, and its profit, and its cash flows for the year ended on
that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Companies Act, 2013. Our responsibilities under those
Standards are further described in the Auditors
Responsibilities 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 the
Institute of Chartered Accountants of India together with the ethical requirements that
are relevant to our audit of the financial Statements under the provisions of the
Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the Code of Ethics. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Information Other than the Financial Statements and Auditors Report Thereon
The Companys Board of Directors is responsible for the other information. The other
information comprises the information included in the Annual report for example,
Directors Statement, Key Highlights, Boards Report but does not include the financial
statements and our auditors report thereon.
Our opinion on the financial statements does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the 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 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 reasonable 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, the Board of Directors 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
the Board of Directors either intends to liquidate the Company or to cease operations, or
has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the Financial Statements
Our 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 our 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.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial
statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances. Under section 143(3)(i)
of the Companies Act, 2013, we are also responsible for expressing our opinion on whether
the company has adequate internal financial controls system in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of managements use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the financial statements or, if such disclosures are inadequate, to modify our opinion.
Our Conclusions are based on the audit evidence obtained up to the date of our auditors
report. However, future events or conditions may cause the Company to cease to continue as
a going concern.
• Evaluate the overall presentation, structure and content of the financial
statements, including the disclosures, and whether the financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards. From the matters communicated with
those charged with governance, we determine those matters that were of most significance
in the audit of the financial statements of the current period and are therefore the key
audit matters. We describe these matters in our auditors report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2020 ("the Order"),
issued by the Central Government of India in terms of sub-section (11) of section 143 of
the Companies Act, 2013, we give in the Annexure 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, we report that:
(a) We have sought and obtained all the information and explanations which to the best
of 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 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 our 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 taken on
record by the Board of Directors, none of the directors is disqualified as on 31st March,
2023 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 our opinion and to the best of our
information and according to the explanations given to us:
(i) The Company does not have any pending litigations which would impact its financial
position.
(ii) The Company did not have any long-term contracts including derivative contracts
for which there were any material foreseeable losses.
(iii) There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company
(iv) The management has represented that, to the best of its knowledge and belief,
other than as disclosed in notes to accounts, no funds have been advanced or loaned or
invested by the company to or in any other person(s) or entity(ies), including foreign
entity(ies).
(v) The Management has also represented that, to the best of its knowledge and belief,
other than as disclosed in notes to accounts, no funds have been received by the company
from any other person(s) or entity(ies), including foreign entity(ies).
(vi) Balance confirmation from Sundry Debtors, Creditors, Joint Ventures and others
have not been produced for verification.
|
For, SVAgrawal &Co |
|
Chartered Accountants |
|
ICAI Firm Reg. No. 100164W |
|
Sd/- |
|
CA S. V. Agrawal |
| Place: Ahmedabad |
PARTNER |
| Date:30-05-2023 |
Mem. No. :030851 |
|
UDIN: 23030851BGQSIY7234 |
" ANNEXURE A" TO INDEPENDENT AUDITORS REPORT
(Referred to in Paragraph 1under report on other Legal & Regulatory requirements of
our report of event date)
(i) (a) The Company has maintained proper records showing full particulars including
quantitative details and situation of Fixed Assets.
(b) The Company has regular programme of physical verification of its Fixed Assets
through which all Fixed Assets are verified in a phased manner over a period of 3 years.
In our opinion this periodicity of physical verification is reasonable having regard to
the size of the Companyand nature of its Assets. As informed to us , no material
discrepancies were noticed on such verification as carried out under the above programme
during the Current Year.
(c ) In our opinion and according to information and explanations given to us the
Company has title deeds of Immovable Properties in the name of the Company itself.
(d) The Company has not revalued any of its Property, Plant and Equipment or Intangible
Assets or both during the year.
(e) No Proceedings have been initiated or are pending against the Company for holding
any benami property if any under the Benami Transactions(Prohibition) Act, 1988 (45 of
1988) and rules made thereunder.
(ii) (a) The Company has regular programme of physical verification of its inventory
through which all Inventory are verified. There are no material discrepancies.
(b) The Company has not been sanctioned any working capital limit at any point of time
of the year in excess of five crores rupees, in aggregate from banks or financial
institutions on the basis of security of current assets.
(iii) (a)The Company has granted Loans and Advances to Companies, firms and other
entities and it is observed that
(A) The Aggregate amount during the year, and balance outstanding at the balance sheet
date with respect to such loans or advances to subsidiaries, joint ventures and associates
is Rs. 59,200. (B) The Aggregate amount during the year, and balance outstanding at the
balance sheet date with respect to such loans or advances to other than subsidiaries,
joint ventures and associates is Rs.7,15,42,965
(b) The Company has granted Loans & Advances and they are not prejudicial to the
Companys Interest.
(c) In respect of loans and advances in the nature of loans, there is no schedule of
repayment of principal and interest has also not been charged on the above.
(d) There is no repayment schedule so no amount is overdue, hence this clause is not
applicable
(e)The Company has not renewed any loans or advances in the nature of loans during the
year to settle the overdues of existing loans given to the same parties.
(f) The Company has granted new loans or advances in the nature of loans during the
year and the aggregate amount of loans or advances granted during the year without any
terms or period of repayment is Rs. 50,000.
(iv) On the basis of verification of books of accounts of the Company it is observed
that the loans & advances given by the Company are according to the provisions of
Companies Act 2013 and thus no contravention exists under provisions of Sec 185 &
186of the Companies Act, 2013. To the best of our knowledge and information provided to us
by the management, the Company has not failed to comply with the provisions of Section 185
& 186 of Companies Act,2013.
(v) On verification of books of accounts, it has come to notice that the company has
not accepted any deposits in contravention as prescribed under Companies (Acceptance of
Deposit) Rules,2014and relevant provisions of Companies Act, 2013.
(vi) On verification of books of accounts, it has come to notice that the company has
not required to maintain cost record as per sec 148 (1) of the Companies Act 2013.
(vii) In respect of Statutory dues:
(a) The Company is not regular in depositing undisputed statutory dues. There are
statutory dues in respect of TDS which has not been paid by the Company until the end of
reporting period.
(b) There are no disputed statutory dues pending for deposit to government/
departmental authority.
(viii) In our opinion and according to the information and explanation given to us, and
as per observation from the books of accounts. the Company has not recorded any
transactions in the books of accounts or disclosed as income during the year in the tax
assessments under Income Tax Act, 1961 (43 of 1961)
(ix) (a) In our opinion and according to the information and explanations given to us,
and as per observation from books of accounts the Company has not defaulted in the payment
of dues to Banks or Financial Institutions during the year.
(b) The Company has not been declared as a willful defaulter by any bank or financial
institution or other lender.
(c) There is no term loan with the Company.
(d) According to information and explanation no funds were raised on Short term basis
by the Company.
(e) According to information and explanation given to us the Company has not taken any
funds from any entity or person on account of or to meet the obligations of its
subsidiaries, associates or joint ventures.
(f) In our opinion and according to the information and explanations given to us, and
as per observation from books of accounts the Company has not raised any new loans during
the year.
(x) (a) According to the information and explanation the company has not raised any
funds by way of Initial Public Offering or any Debt Instrument or any Term Loan during the
reporting period.
(b)The Company has made preferential allotment during the year and requirements of
Section 42 and Section 62 of the Companies Act, 2013 have been complied with. The funds
raised have been used for the purpose for which the funds were raised by the Company
during the year.
(xi) (a) In our opinion and according to the information and explanation given to us,
no material fraud by the Company or on the Company has been noticed or reported during the
year.
(b)According to information and explanation given to us the Company has not filed any
report in Form ADT-4 under sub section (12) of section 143 of the Companies Act, 2013.
(c)According to information and explanation given to us the company has established
vigil mechanism to handle whistle-blower complaints.
(xii) The Company is not a Nidhi Company and thus this clause is not applicable.
(xiii) In our opinion and according to information and explanation given to us the
Company has entered in Related Party Transactions during the year under consideration as
details in Notes to Accounts.
(xiv) (a)According to information and explanation given to us the Company has proper
Internal Audit System as per provisions of SEBI LODR Regulations.
(b)Internal Audit is conducted by the employee of the Company and Report of the same
was not provided by the Assessee, so we are not able to comment on the same.
(xv) In our opinion and according to information and explanation given to us , during
the year the Company has not entered into non cash transactions with its Director and
provisions of Sec 192 of Companies Act have been complied with.
(xvi) (a) In our Opinion and according to information and explanation provided to us,
the Company is not required to be registered under Section 45-IA of the Reserve Bank of
India Act, 1934.
(b)In our opinion and according to information and explanation given to us, the Company
has not conducted any Non-Banking Financial or Housing Finance activities.
(A) The Company is not a Core Investment Company (CIC) and thus this clause is not
applicable.
(B) As per information and explanation given to us, the group is not having any CIC as
part of the group.
(xvii) The Company has not incurred cash losses in the financial year and in the
immediately preceding financial year.
(xviii) There has been no resignation of the Statutory Auditor during the year.
(xix) On the basis of the financial ratios, ageing and expected dates of realization of
financial assets and payment of financial liabilities, other information accompanying the
financial statements, the auditors knowledge of the Board of Directors and management
plans, the auditor is of the opinion that no material uncertainty exists as on the date of
the audit report that the company is not capable of meeting its liabilities existing at
the date of balance sheet as and when they fall due within a period of one year from the
balance sheet date.
(xx) (a) Section 135 of Companies Act, 2013 is not applicable to the Company as Company
is neither having net worth of Rs. 500 crore or more nor having turnover of Rs. 1000 crore
or more or net profit of Rs. 5 crore or more during the immediately preceding financial
year.
(b)Section 135 of Companies Act, 2013 is not applicable to the Company, thus this
clause is not applicable to the Company.
(xxi) The Company is neither having any Holding Company nor Subsidiary Company or
Associate Company, thus this clause is not applicable.
|
For S. V. AGRAWAL & CO. |
|
Chartered Accountants |
|
ICAI Firm Reg. No. 100164W |
|
Sd/- |
| Place: Ahmedabad |
CA S.V.Agrawal |
| Date: 30-05-2023 |
Partner |
|
Membership No. 30851 |
|
UDIN: 23030851BGQSIY7234 |
" ANNEXURE B" TO THE INDEPENDENT AUDITORS REPORT
Report on the Internal Financial Controls over Financial Reporting under Clause (i) of
Sub-section 3 of Section 143 of the Companies Act, 2013.
Managements Responsibility for Internal Financial Controls
The Companys management and the Board of Directors are responsible for establishing
and maintaining internal financial controls based on the internal financial controls with
reference to financial statements criteria established by the Company considering the
essential components of internal control stated in the Guidance Note on Audit of Internal
Financial Control Over Financial Reporting issued by the Institute of Chartered
Accountants of India (the "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
Our responsibility is to express an opinion on the Companys internal financial
controls with reference to financial statements based on our audit. We conducted our audit
in accordance with the Guidance Note on Audit of Internal Financial Control Over Financial
Reporting (the "Guidance Note") the ICAI and the Standards on
Auditing prescribed under section 143(10) of the Companies Act, 2013, to the extent
applicable to an audit of internal financial controls with reference to financial
statements. Those Standards and the Guidance Note require that we 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.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls with reference to financial controls and their operating
effectiveness. Our audit of internal financial controls with reference to financial
statements included obtaining an understanding of such internal financial controls
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. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinion on the Companys internal financial controls system over
financial reporting.
Meaning of Internal Financial Controls with reference to Financial Statements
A companys internal financial controls with reference to financial statements 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 with
reference to financial statements 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 authorizations of
management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the
companys assets that could have a effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls with reference to
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 with reference to
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 our opinion, to the best of our information and according to the explanation given
to us, the Company has, in all material respects, adequate internal financial controls
system over financial reporting and such internal financial controls over financial
reporting were operating effectively as at 31st March,2023, based on the
internal financial controls over financial reporting criteria established by the Company
considering the essential components of internal controls stated in the Guidance Note on
audit of Internal Financial Controls over financial reporting issued by the Institute of
Chartered Accountants of India
|
For S. V. AGRAWAL & CO. |
|
Chartered Accountants |
|
ICAI Firm Reg. No. 100164W |
|
Sd/- |
| Place: Ahmedabad |
CA S.V.Agrawal |
| Date: 30-05-2023 |
Partner |
|
Membership No. 30851 |
|
UDIN: 23030851BGQSIY7234 |
+91-9892691696
