<dhhead>INDEPENDENT AUDITORS REPORT </dhhead>
To the Members of NAVODAY ENTERPRISES LIMITED Report on the
Audit of the Standalone Financial Statements Opinion
We have audited the standalone financial statements of NAVODAY
ENTERPRISES LIMITED (the Company) having CIN No U74300MH2007PLC173780,
which comprise the balance sheet as at 31st March, 2023, and the statement of Profit and
Loss, (statement of changes in equity) and statement of cash flows for the year ended as
on 31st March, 2023 , and notes to the financial statements, including a summary of
significant accounting policies and other explanatory information [in which are included
the Returns for the period ended on that date audited by the branch auditors of the
Companys branches. In our opinion and to the best of our information and according
to the explanations given to us, except for the effects of the matter described in the
Basis for Qualified Opinion paragraph below, the aforesaid standalone 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, 2023, and profit (changes in equity) and
its cash flows for the year ended on 31st March, 2023.
Basis for qualified 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
on the financial statement.
1. Loan agreement for the loans & advances given to the
following parties has not been provided:
Name of the Party |
Amount of Transaction (Rs.) |
Matilda Britto |
2,500,000.00 |
Miloeux Media And Entertainment |
5,000,000.00 |
Narendra Tater |
2,000,000.00 |
Nostalgia Finve |
5,000,000.00 |
Pratik Bafna |
6,300,000.00 |
Pravin Bansi |
2,500,000.00 |
Pravin Bhoir |
2,500,000.00 |
Sharlet Britto |
2,500,000.00 |
Sharp Laser Component |
1,833,040.00 |
2. Party wise details and Loan agreements has not been provided
for Loans & advances given of Rs. 39,210,000.00.
3. Supporting documents for Short Term Loans and advances of Rs.
6,54,72,594 has not been provided.
4. We are not able to ascertain the current valuation of the
investments in 3rd Rock Multimedia for Rs 50,00,000 as Latest Financials / Valuation
report were not made available.
5. Our report expresses qualified opinion on the adequacy and
operating effectiveness of the Companys internal financial controls with reference
to standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional
judgment, were 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 a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters. Reporting of key audit matters as per SA 701, Key Audit
Matters are applicable to the Company as it is a listed company. Reporting of key audit
matters as per SA 701, below are our observation for the financial year 2022-2023:
1. TDS returns and TDS Challans could not be verified with the
books of account as TDS Return and TDS Challans not filled/ paid as of date of this
report.
2. No TDS has been deducted and paid in the F.Y. 2022-23 for the
following transactions:
Particulars |
Amount in Rs. |
Rent |
354,330.00 |
Payment to Auditors |
80,000.00 |
Other Outsourcing Charges - Hasmukh Nagindas |
816,707.00 |
Payment made to BSE |
118,000.00 |
Legal & Professional fees |
699,600.00 |
3. Ageing details for Sundry Creditors and Sundry Debtors has
not been provided.
4. No Supporting documents provided for debit balance of sundry
creditors of Rs 7,88,92,979.53
5. No Breakup, details and Ageing provided for Duties and taxes
for Amount Rs. 12,19,689
6. No Breakup, details and Ageing provided for Duties and taxes
for Amount Rs. 72,19,230
7. Bank statement of Tamilnad Mercantile bank has not been
provided.
8. Supporting documents and workings for the Prepaid Expenses
has not been provided.
9. No Supporting documents (Challans) for MCA expenses of Rs.
17,44,363.26 has not been provided.
10. There is credit balance of Loans and advances given to the
following parties and also any supporting document has not been provide:
Name of the Party |
Amount Transaction of (Rs.) |
Alphabet Imaging Technologies Llp |
266,467.00 |
Cognition Infrastructure Pvt Ltd |
15,979.00 |
Essar Power Hazira Ltd |
88,000.00 |
Saourav Impex Pvt Ltd |
3,500,000.00 |
Other Matters
Other matters are those matters other than those that are
presented or disclosed in the financial statements that, in our opinion is relevant to
users understanding of the audit. Reporting of other matters for the FY 2022-23:
1. GSTR 9 and 9C not filed for FY 2021-22
2. GST Output Liability as per Books is Rs. 89,25,031.33 and as
per GSTR3B is Rs. 39,54,863.00 resulting to difference of Rs. 49,70,168.33 which is
unreconciled until this date of this audit report.
3. Input Tax Credit as per Books is Rs. 2,73,30,499.76 and as
per GSTR3B is Rs. 6,03,20,853.76 resulting to difference of Rs.3,29,90,354.00 which is
unreconciled until this date of this audit report.
4. The company has been issued below notices from GST Department
as per GST Portal
Notice/ Demand Order Id |
Type |
Notice / Order Description |
Date of Issuance |
Due Date |
Amount of Demand |
ZA2709223554938 |
Order |
Registration Certificate |
29/09/2022 |
NA |
NA |
ZA270922106118N |
Notice |
Notice for Seeking Additional Information / Clarification /
Documents relating to Application for Amendment |
19/09/2022 |
28/09/2022 |
NA |
ZA2706220736759 |
Order |
Registration Certificate |
3/6/2022 |
NA |
NA |
ZA2705220919571 |
Notice |
Notice for Seeking Additional Information / Clarification /
Documents relating to Application for Amendment |
13/05/2022 |
25/05/2022 |
NA |
ZA271221230939H |
Notice |
Notice to return defaulter u/s 46 for not filing return |
26/12/2021 |
10/1/2022 |
NA |
ZA271121217690Y |
Notice |
Notice to return defaulter u/s 46 for not filing return |
26/11/2021 |
11/12/2021 |
NA |
ZA271021249720X |
Notice |
Notice to return defaulter u/s 46 for not filing return |
27/10/2021 |
11/11/2021 |
NA |
ZA270921276620F |
Notice |
Notice to return defaulter u/s 46 for not filing return |
27/09/2021 |
12/10/2021 |
NA |
ZA270821310846G |
Notice |
Notice to return defaulter u/s 46 for not filing return |
27/08/2021 |
11/9/2021 |
NA |
ZA270721863161M |
Notice |
Notice to return defaulter u/s 46 for not filing return |
30/07/2021 |
14/08/2021 |
NA |
ZA2707215952657 |
Notice |
Notice to return defaulter u/s 46 for not filing return |
23/07/2021 |
7/8/2021 |
NA |
ZA270721327592I |
Notice |
Notice to return defaulter u/s 46 for not filing return |
12/7/2021 |
27/07/2021 |
NA |
ZA270421100814Z |
Notice |
Notice to return defaulter u/s 46 for not filing return |
6/4/2021 |
21/04/2021 |
NA |
ZA270321130958H |
Notice |
Notice to return defaulter u/s 46 for not filing return |
6/3/2021 |
21/03/2021 |
NA |
ZA270221162566M |
Notice |
Notice to return defaulter u/s 46 for not filing return |
8/2/2021 |
23/02/2021 |
NA |
ZA271120118921Z |
Order |
Order for revocation of cancellation of registration |
18/11/2020 |
NA |
NA |
ZA271120044922W |
Notice |
Show Cause Notice for Cancellation of Registration |
5/11/2020 |
19/11/2020 |
NA |
ZA270819099063Z |
Order |
Registration Certificate |
23/08/2019 |
NA |
NA |
ZA2707191166067 |
Order |
Registration Certificate |
25/07/2019 |
NA |
NA |
ZA270719108659W |
Order |
Registration Certificate |
24/07/2019 |
NA |
NA |
ZA271218154338B |
Notice |
Show Cause Notice for Cancellation of Registration |
27/12/2018 |
4/1/2019 |
NA |
ZA270118005369J |
Notice |
Registration SCN |
3/1/2018 |
11/1/2018 |
NA |
Responsibilities of Management and Those Charged with Governance
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, (changes in equity) 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, 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.
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 in terms of Section 143(11)
of the Act, we give in Annexure A a statement on the matters specified in
paragraphs 3 and 4 of the Order.
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 standalone 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 31stMarch, 2023 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 with reference to standalone financial statements of the Company and the
operating effectiveness of such controls, refer to our separate Report in Annexure B.
Our report expresses an qualified opinion on the adequacy and operating effectiveness of
the Companys internal financial controls with reference to standalone financial
statements.
g) In our opinion, the managerial remuneration for the year
ended March 31, 2023 has been paid / provided by the Company to its directors in
accordance with the provisions of section 197 read with Schedule V to the Act;
h) 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. (a) The Management has represented that, to the best of its
knowledge and belief, no funds (which are material either individually or in the
aggregate) have been advanced or loaned or invested (either from borrowed funds or share
premium or any other sources or kind of funds) by the Company to or in any other person or
entity, including foreign entity (Intermediaries), with the understanding,
whether recorded in writing or otherwise, that the Intermediary shall, whether, directly
or indirectly lend or invest in other persons or entities identified in any 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 its
knowledge and belief, no funds (which are material either individually or in the
aggregate) have been received by the Company from any person or entity, including foreign
entity (Funding Parties), with the understanding, whether recorded in writing
or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the
Funding
Party (Ultimate Beneficiaries) or provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered
reasonable and appropriate in the circumstances, nothing has come to our notice that has
caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e),
as provided under (a) and (b) above, contain any material misstatement.
i) The company is in compliance with the provisions of section
197 read with schedule V of the companies Act.
For Choudhary Choudhary & Co. |
Chartered Accountants |
Firm Reg. No. 02910C |
Alok Kumar Mishra |
Partner |
Membership No. 124184 |
Place: Mumbai |
Date: 30/05/2023 |
UDIN : 23136933BGWKCJ6005 |
Annexure A
to the Independent Auditors Report
(Referred to in paragraph 1 under the heading Report on
Other Legal & Regulatory Requirement of our report of even date)
TO THE MEMBERS OF NAVODAY ENTERPRISES LIMITED
i. (a) In respect of Plant, Property and Equipment:
(1) The Company has maintained proper records showing full
particulars, including quantitative details and situation of Plant, Property and
Equipment;
(2) The Company has maintained proper records showing full
particulars of intangibles assets.
(b) All Property, Plant and Equipment have not been physically
verified by the management during the year but there is a regular programme of
verification which, in our opinion, is reasonable having regard to the size of the Company
and the nature of its assets. No material discrepancies were noticed on such verification.
There were no inventories as on date of report.
(c) The company does not owned any immovable property and hence
reporting under clause 3(i)(c) is not applicable.
(d) According to the information and explanations provided to
us, the Company has not revalued its Property, Plant and Equipment (including Right of use
assets) or intangible assets during the year ended March 31, 2023.
(e) According to the information and explanations provided to
us, the company does not owned any immovable property hence reporting under clause 3(i)(e)
is not applicable.
ii. a) The Company does not have any inventory and hence
reporting under clause 3(ii)(a) of the Order is not applicable.
b) The Company has not been sanctioned working capital limits in
excess of 5 crore, in aggregate, at any points of time during the year, from banks or
financial institutions on the basis of security of current assets and hence reporting
under clause 3(ii)(b) of the Order is not applicable.
iii. The Company has made investments in, companies, firms,
Limited Liability Partnerships, and granted unsecured loans to other parties, during the
year, in respect of which:
a) The Company has provided loans during the year and details of
which are given below:
Particulars |
Advances in nature of loans (Amount in Rs.) |
A. Aggregate amount granted/provided during the year |
|
1) Subsidiaries |
0.00 |
2) Joint Ventures |
0.00 |
3) Associates |
0.00 |
4) Others |
23,55,588.00 |
B. Balance outstanding as at balance sheet date in respect of
above cases |
|
1) Subsidiaries |
0.00 |
2) Joint Ventures |
0.00 |
3) Associates |
0.00 |
4) Others |
6,78,28,182.00 |
The Company has not provided any guarantee or security to
companies, firms, limited liability partnerships or other parties.
(b) In our opinion, the investments made and the terms and
conditions of the grant of loans, during the year are, prima facie, not prejudicial to the
Companys interest.
(c) The Company has granted loans and advance in the nature of
loan (including receivable in the nature of loan) which are payable on demand. During the
year the Company has not demanded such loans. Having regard to the fact that the repayment
of principal or payment of interest, wherever applicable, has not been demanded by the
Company, in our opinion the repayments of principal amounts are not regular. However, we
have not obtained balance confirmation as on 31.03.2023.
(d) In respect of loans granted by the Company, there is no
overdue amount remaining outstanding as at the balance sheet date.
(e) No loan granted by the Company which has fallen due during
the year, has been renewed or extended or fresh loans granted to settle the overdues of
existing loans given to the same parties.
(f) The Company has not granted any loans or advances in the
nature of loans either repayable on demand or without specifying any terms or period of
repayment during the year. Hence, reporting under clause 3(iii)(f) is not applicable.
iv. The Company has not advanced loans or made investments in or
provided guaranty or security to parties covered by section 185 and section 186 is not
applicable to the Company. Hence reporting under paragraph 3(iv) of the Order is not
applicable.
v. The Company has not accepted any deposits from the public and
hence the directives issued by the Reserve Bank of India and the provisions of Sections 73
to 76 or any other relevant provisions of the Act and the Companies (Acceptance of
Deposit) Rules, 2015 with regard to the deposits accepted from the public are not
applicable.
vi. The maintenance of cost records has not been specified by
the Central Government under section 148(1) of the Companies Act, 2013, for the business
activities carried out by the Company. Hence reporting under paragraph 3 (vi) of the Order
is not applicable.
vii. a)According to the information and explanations given to
us, no undisputed amounts payable in respect of income-tax, goods and service tax and
other material statutory dues were in arrears as at March 31, 2023 for a period of more
than six months from the date they became payable.
Except an amount aggregating Rs. 32,43,211 towards TDS deducted
and payable ( u/s 194J) which has been unpaid as on the date of signing of this report as
depicted below:
Name of the statute |
Nature of dues |
Period to which the amount relates |
Amount due (Rs) |
Due date (Pending Since) |
Date of payment |
Income Tax Act |
TDS |
FY 2015-16 |
3,53,000.00 |
07.04.2016 |
Not Paid |
Income Tax Act |
TDS |
FY 2016-17 |
3,000.00 |
07.04.2017 |
Not Paid |
Income Tax Act |
TDS |
FY 2017-18 |
13,72,255.00 07.04.2018 |
Not Paid |
|
Income Tax Act |
TDS |
FY 2020-21 |
14,78,756.00 |
07.04.2021 |
Not Paid |
Income Tax Act |
TDS |
FY 2021-22 |
36,200.00 |
07.04.2022 |
Not Paid |
Total |
|
|
32,43,211.00 |
|
|
b) Details of statutory dues referred to in sub-clause (a) above
which have not been deposited as on March 31 ,2023 on account of disputes are given below:
SR Nature of the Statue |
Nature of Dues |
Forum where dispute is pending |
Period to which amount relates |
Amount in Rs |
|
1 Income Tax Act |
Outstanding demand |
Central Processing Centre (CPC) of the Income Tax Department |
AY 2013-14 |
|
Outstanding Demand Rs.2,77,350 and Outstanding Interest
Rs.1,52,515 |
2 Income Tax Act |
Outstanding demand |
Central Processing Centre (CPC) of the Income Tax Department |
AY 2016-17 |
|
Outstanding Demand Rs.2,52,350 and Outstanding Interest
Rs.55,506 |
3 Income Tax Act |
Outstanding demand |
Central Processing Centre (CPC) of the Income Tax Department |
AY 2014-15 |
|
Outstanding Demand Rs.1,20,960 and Outstanding Interest
Rs.54,405 |
4 Income Tax Act |
Income Tax Assessment Proceeding u/s 147 |
Central Processing Centre (CPC) of the Income Tax Department |
AY 2017-18 |
147 |
Outstanding Demand Rs. 68,27,140 |
5 Income Tax Act |
Payment of Outstanding Liabilities |
Central Processing Centre (CPC) of the Income Tax Department |
AY 2017-18 |
147 |
Outstanding Demand Rs.97,370 |
6 Income Tax Act |
Payment of Outstanding Liabilities |
Assessing Officer of Income tax department |
AY 2017-18 |
272A(1)(d) |
Outstanding Demand Rs.10,000 |
viii. There were no transactions relating to previously
unrecorded income that have been surrendered or disclosed as income during the year in the
tax assessments under the Income Tax Act, 1961 (43 of 1961)
ix. (a) The Company has not taken any loans or other borrowings
from any lender. Hence reporting under clause 3(ix)(a) of the Order is not applicable.
(b) The Company has not been declared wilful defaulter by any
bank or financial institution or government or any government authority.
(c) The Company has not taken any term loan during the year and
there are no outstanding term loans at the beginning of the year and hence, reporting
under clause 3(ix)(c) of the Order is not applicable.
(d) On an overall examination of the financial statements of the
Company, funds raised on short term basis have, prima facie, not been used during the year
for long-term purposes by the Company.
(e) On an overall examination of the financial statements of the
Company, the Company has not taken any funds from any entity or person on account of or to
meet the obligations of its subsidiaries.
(f) The Company has not raised any loans during the year and
hence reporting on clause 3(ix)(f) of the Order is not applicable.
x. (a) The Company has not raised moneys by way of initial
public offer or further public offer (including debt instruments) during the year and
hence reporting under clause 3(x)(a) of the Order is not applicable.
(b) However, the Company has issued 3854000 Bonus shares on 01st
December 2022 as Public issue and as per the information and explanations given to us, the
funds were applied for the purpose for which those were raised.
xi. (a) No fraud by the Company and no material fraud on the
Company has been noticed or reported during the year.
(b) No report under sub-section (12) of section 143 of the
Companies Act has been filed in Form ADT-4 as prescribed under rule 13 of Companies (Audit
and Auditors) Rules, 2014 with the Central Government, during the year and upto the date
of this report.
(c) The company does not received any whistle blower complaints
during the year and hence reporting under clause 3(xi)(c) is not applicable.
xii. e Company is not a Nidhi Company and hence reporting under
clause (xii) of the Order is not applicable
xiii. Transactions with the related parties are in compliance
with section177 and 188 of Companies Act, 2013 and the details have been disclosed in
notes forming Part of Financial Statements.
xiv. In our opinion, the Company does not have an adequate
internal control commensurate with the size and the nature of its business.
xv. According to the information and explanations provided to
us, the Company has not entered into any non-cash transactions with its directors or
persons connected with its directors.
Accordingly, requirement to report on clause 3(xv) of the Order
is not applicable to the Company and hence not commented upon.
xvi. (a) In our opinion, the Company is not required to be
registered under section 45-IA of the Reserve Bank of India Act, 1934. Hence, reporting
under clause 3(xvi)(a), (b) and (c) of the Order is not applicable.
(b) In our opinion, there is no core investment company within
the Group (as defined in the Core Investment Companies (Reserve Bank) Directions, 2016)
and accordingly reporting under clause 3(xvi)(d) of the Order is not applicable.
xvii. The Company has not incurred cash losses during the
financial year covered by our audit and the immediately preceding financial year.
xviii. There has been no resignation of statutory auditors of
the Company during the year.
Accordingly, requirement to report on Clause 3(xviii) of the
Order is not applicable and hence not commented upon.
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 and our knowledge of the Board of
Directors and Management plans and based on our examination of the evidence supporting the
assumptions, nothing has come to our attention, which causes us to believe that any
material uncertainty exists as on the date of the audit report indicating that 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. We, however, state
that this is not an assurance as to the future viability of the Company. We further state
that our reporting is based on the facts up to the date of the audit report and we neither
give any guarantee nor any assurance that all liabilities falling due within a period of
one year from the balance sheet date, will get discharged by the Company as and when they
fall due.
xx. Section 135(5) of Companies Act, 2013 is not applicable to
the company and hence reporting under clause 3(xx) is not applicable.
For Choudhary Choudhary & Co. |
Chartered Accountants Firm |
Reg. No. 002910C |
Alok Kumar Mishra Partner |
Membership No. 124184 Place: |
Mumbai |
Date: 30/05/2023 |
UDIN : 23136933BGWKCJ6005 |
Annexure B
to the Independent Auditors Report
(Referred to in paragraph 2(f) under the heading Report on
Other Legal & Regulatory Requirement of our report of even date)
We have audited the internal financial controls over financial
reporting of NAVODAY ENTERPRISES LIMITED, having CIN No U74300MH2007PLC173780
(the Company) as of March 31, 2023 in conjunction with our audit of the
standalone 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. 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 over financial reporting based on our audit. We conducted our
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 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 system over financial reporting and their
operating effectiveness. Our 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 standalone 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 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 standalone 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
standalone 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 material effect on the
standalone 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 our opinion, to the best of our information and according to
the explanations given to us, the Company does not have, in all material respects, an
adequate internal financial controls system over financial reporting asset March 31, 2023,
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.
For Choudhary Choudhary & Co. |
Chartered Accountants |
Firm Reg. No. 002910C |
Alok Kumar Mishra |
Partner |
Membership No. 124184 |
Place: Mumbai |
Date: 30/05/2023 |
UDIN: 23136933BGWKCJ6005 |
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Securities Support WhatsApp Number
+91 9892691696
www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.