| We have audited the accompanying financial statements of NAVCOM
INDUSTRIES LIMITED, ('the company') which comprise the balance sheet as
at 31st March 2015, the statement of profit & loss and the cash flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Management and Board of Directors of the Company are responsible
for the matter 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
Accounting Standards specified under Section 133 of the Act, read with
rule 7 of Companies (Accounts) Rules, 2014. This responsibility
includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding 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 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.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting standards and matters which are
required to be included in the audit report under the provisions of the
Act and the Rules made thereunder. We conducted our audit in accordance
with the Standards on Auditing specified under Section 143(10) of the
Act. Those Standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
tl\e risks of material misstatement of the financial statements,
whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the Company's
preparation and fair presentation of the financial statements in order
to design audit procedures that are appropriate in the circumstances.
An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of the accounting estimates made
management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate for our audit opinion except in some cases confirmation of
balances of Debtors, Creditors, banks and other parties under Loans and
Advances.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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:
(i) in the case of the balance sheet, of the State of Affairs of the
Company as at 31st March 2015;
(ii) in the case of statement of profit & loss, of the LOSS for the
year ended on that date; and
(iii) in the case of cash flow statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order"), issued by the Central Government of India in terms of
subsection (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the said
Order.
2. As required by section 143(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit; except in some cases confirmation of balances of accounts and
parties included in Current Assets, loans and advances and current
liabilities have not been obtained.
b) Subject to our remarks in Para (a) above, in our opinion, proper
books of account as required by law have been kept by the company so
far as appears from our examination of those books;
c) Subject to our remarks in Para (a) above, The Balance Sheet,
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 Balance Sheet, Statement of Profit and Loss and
the Cash Flow Statement comply with the Accounting Standards specified
under section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules 2014; except AS 18 Related Party, and AS-22 Accounting
for Taxes on Income.
e) On the basis of written representations received from the directors,
as on 31st March, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2015 from being
appointed as a director in terms of Section 164(2) of the Act.
f) In our opinion and to the best of our information and according to
the explanations given to us, we report as under with respect to other
matters to be included in the Auditor's Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014:
i. The Company does not have any pending litigations which impact its
financial position
ii. The Company did not have any long-term contracts including
derivative contracts; as such the question of commenting on any
material foreseeable losses thereon does not arise
iii. There has not been an occasion in case of the Company during the
year under report to transfer any sums to the investor Education and
Protection Fund. The question of delay in transferring such sums does
not arise.
Annexure to the Auditor's Report
The Annexure referred to in our report to the members of NAVCOM
INDUSTRIES LIMITED ("the Company") for the year ended 31st March, 2015.
On the basis of such checks as we considered appropriate to the
information and explanation given to us during the course of our audit,
we report that:
(i) (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us, the management has physical verified the fixed
assets at reasonable intervals. No material discrepancies were noticed
on such physical verification.
(ii) (a) According to information and explanations given to us, the
Management has physically verified the inventories during the year. In
our opinion, having regard to the nature of business and location of
stocks, the frequency of verification is reasonable.
(b) In our opinion and according to information and explanations given
to us, the procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the company and nature of its business.
(c) In our opinion and according to information and explanations given
to us, the company is maintaining proper records of inventory. The
discrepancies noticed on" verification between the physical stocks book
record were not material and have been properly dealt in the books of
account.
(iii) The company has not granted unsecured loans to companies, firms
or other parties covered in the register maintained under section 189
of the Companies Act.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of company and the nature of its business with regard to
purchases of inventory and fixed assets and the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company and according to the information and explanation
given to us, no major weakness has not been noticed or reported.
(v) The Company has not accepted any deposits from the public covered
under Section 73 to 76 of the Companies Act, 2013.
(vi) As informed to us, the Central Government has not prescribed
maintenance of cost records under sub-section (1) of Section 148 of the
Act.
(vii) (a) According to information and explanations given to us and
based on the records of the company examined by us,company is generally
regular in depositing undisputed statutory dues including Income Tax,
Sales Tax, Service Tax, Excise Duty, Wealth Tax, Custom Duty and other
material statutory dues.
(b) According to the information and explanation given to us and based
on the records of the company examined by us, there are no dues of
Income Tax, Wealth Tax, Service Tax, Sales Tax, Customs Duty and Excise
Duty which have not been deposited on account of any disputes.
(c) There has not been an occasion in case of the Company during the
year under report to transfer any sums to the Investor Education and
Protection Fund. The question of reporting delay in transferring such
sums does not arise.
(viii) Accumulated losses of the Company at the end of the financial
year are more than fifty per cent of its net worth. The company has
incurred cash loss during the financial year and there was a cash loss
in the financial year immediately preceding the financial year.
(ix) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
banks and financial institutions during the year. The company has not
issued any debentures during the year.
(x) In our opinion and according to information and explanations given
to us, the terms and conditions of guarantees given by the company for
loans taken by others from bank or financial institutions are not prima
facie prejudicial to the interests of the company.
(xi) In our opinion and according to information and explanations given
to us, the term loans taken by the company were applied for the purpose
for which they were obtained.
(xii) According to the information and explanations given to us no
fraud on or by the company has been noticed or reported during the
course of our audit.
For Sanjay N Pawar & Associates
Chartered Accountants
CA. Sanjay N Pawar
Partner
M. No. 112470
Firm Reg. No. 122769W
Place: Pune
Date: May 30, 2015
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