| We have audited the accompanying financial statements of NORTHERN
PROJECTS LIMITED, which comprise the Balance Sheet as at March 31,
2014, the Statement of Profit and Loss and 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
Management is responsible for 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 Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956. This responsibility includes the design,
implementation and maintenance of internal control 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 conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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
the 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 but not for the
purpose of expressing an opinion on the effectiveness of company's
internal control. An audit aiso includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by 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 to provide a
basis for our audit opinion.
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:
a. in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b. in the case of the Statement of Profit and Loss, of the loss for the
year ended on that date, and
c. in the case of the 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, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
(i) 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;
(ii) 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;
(iii) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
(iv) In our opinion, the Balance Sheet, Statement of Profit and Loss
and Cash Flow Statement comply with the Accounting Standards referred
to in sub-section (3C) of section 211 of the Companies Act, 1956;
(v) On the basis of written representations received from the directors
as on March 31,2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS' REPORT
1. a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) Fixed assets have been physically verified by the management at
reasonable intervals and no material discrepancies have been noticed on
physical verification as confirmed by the Management.
c) No substantial part of fixed assets has been disposed off during the
year, which would effect the going concern assumption.
2. As there is no inventory comments on clauses ii (a), (b) & (c) are
not applicable to the company.
3. (a) The company has granted unsecured loan to companies covered in
the register maintained under Section 301 of the Companies Act, 1956
during the year, details are as follows:
Name of the Company Opening Loan Given Loan
Refunded
Asutosh Enterprises Ltd. 46,450,000 575,000 3,500,000
V. N. Enterprises Ltd. NIL 20,000,000 NIL
Name of the Company Maximum Balance
amount outstanding at
involved the year end
during (Excluding
the year year Interest)
Asutosh Enterprises Ltd. 46,650,000 43,525,000
V. N. Enterprises Ltd. 20,000,000 20,000,000
(b) In our opinion, the rates of interest and terms and conditions on
which loans has been given to parties listed in the register maintained
U/s. 301 are not, prima facie, prejudicial to the interest of the
company.
(c) The receipt of the principal amount and interest are regular as per
mutual consent.
(d) There is no over due amounts of loan given.
(e) As per information and explanation given to us, the company not
taken secured/unsecured loans/ advance from companies, firms or any
other parties covered in the register maintained under section 301 of
the Companies Act, 1956. Hence comments on Clauses iii (f) to (g) are
not applicable.
4. On the basis of checks carried out during the course of audit and
as per explanations given to us, we are of the opinion that there is an
adequate internal control system commensurate with the size of the
Company and the nature of its business, for the purchase and sale of
fixed assets and investments. During the course of our audit, no major
weakness has been noticed in the internal control system.
5. a) In our opinion & according to the information & explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed to be entered into the register maintained
u/s.301 of the Companies Act, 1956 have been so entered.
b) In our opinion & according to the information & explanations given
to us, these transactions have been made at prices which are reasonable
having regards to the prevailing market prices at the relevant time.
6. The company has not accepted public deposits and so the provisions
of Sec.58A, 58AA and any other relevant provisions of the Act does not
apply to the company.
7. As per the explanation and information given to us, the company has
an internal audit system commensurate with the size and nature of the
business.
8. Maintenance of cost records U/s 209(1)(d) of the Companies Act,1956
does not apply to the company.
9. a) According to the information and explanations given to us and on
the basis of our examination of the books of accounts, the company is
regular in depositing undisputed statutory dues including, Income Tax,
and other statutory dues with the appropriate authorities which has
being outstanding for a period of more than six months from the date
they bacame payable.
b) The disputed statutory dues in respect of income tax amounting to Rs
245.27 Lacs, have not been deposited on account of disputed matters
pending before ITA for assessment year 2002-03, 2003-04, 2005-06 &
2006-07.
10. The company does not have any accumulated losses and has not
incurred cash loss in the current financial year. The company has not
incurred any cash losses in the immediately preceding financial year.
11. The company has not taken any loans from any Financial
Institutions or bank has not issued any debentures hence the question
of default in repayment does not arise.
12. According to the information and explanations given to us, the
company has not granted any loans or advances on the basis of security
by way of pledge of Shares, Debentures and Other Securities.
13. The company is not a Chit Fund or a Nidhi /Mutual Benefit
Fund/Society hence clause XIII of the order does not apply.
14. The company is not in the business of dealing or trading in shares
and securities. However the company has maintained proper records of
transactions and contracts in respect of Shares, Securities, Debentures
and other Investment and timely entries have been made therein. The
shares, securities, debentures and other investments have been held by
the company, in its own name.
15. In our opinion and according to the information and explanations
given to us, the company has not given any guarantee for loans taken by
other from banks & financial institutions.
16. Based on information and explanations given to us by the
management, the company has not raised any term loans during the year.
17. On the basis of our overall examination of the Cash Flow
Statement, and on the basis of information given to us no funds raised
on short term basis has been used for long term investment.
18. During the year under audit, the company has not made any
preferential allotment of shares to parties or companies covered in the
register maintained under section 301 of the Companies Act, 1956.
19. On the basis of records made available to us, the company has not
issued any debenture, hence the question of creating securities or
charge does not arise.
20. The Company has not raised any money by way of Public Issue during
the year.
21. Based upon the audit procedures performed and on the basis of
information and explanations provided by the management, we report that
no fraud, on or by the Company has been noticed or reported during the
year.
For SALARPURIA & PARTNERS
Chartered Accountants
ICAI Reg. No. 302113E
Place : Kolkata Arabinda Ghosh
Date: 28th May, 2014 Membership No. 51855 |