iPh ÷91-11-26913033, 26916363, 41627363 NUMAR CHOPRA & ASSOCIATES E-mail kca@kcaconsultancy.com CHARTERED ACCOUNTANTS kca_delhi@yahoo.co.in wwwkcaconsultancy.com B-12 (G F> Kalindi Colony Near Maharani Bagh, New Delhi - 110065 INIEPENDENT AUDITOR'S REPORT le the Members of National Skill )evelopment (Corpoition Report on the Audit of the Financial Staternents 1. Opinion WVe have audited the financial statemitents el ational Skill Dvelopment Corporation ("tik Cotmpany), which conpris' the hbalce sheet as at 31st March 2019, and the statement f Income and Expernditure, and the statement of cash lows for the year then ended, and notes to the financial statemenfts, incuding a summary et significant accountilng policies and other explanatory in ornation. in our opinion and to the best ot our intornmation and according to the explanations given to is, the aforesaid financial stalements give the' ilnfeirna tioin required by the Companies Act, 2(13 ("the Act") in the manner so required and give a true and fair view in conformity with the accouinting principles gelnerall Accepted in india, of the state of allairs of the (ompany as at March 31, 20!19, and deficit of income ovir 1,xp,nditure, and its cash f lows for the year unded on that date. 2. Basis for Opinion WVe 'oniductcd our audit in accordance w ith the Stairards to Auditing (SAs) specified under section 143(10) of the AcL (uir respotnsilbilities under those Sandards are further described in the Auitor;'s Responiilities ht H' Aulil wc I umi et s section O our report. Ve are independent of the Company in accordance with tie Ciode of EthIC,s1 issued by the institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit ii the financial statements under the provisions of the Companies Act, 2013 and tie Rules thercunder, and we have fulfilled our other ethical responsibiiities in accordvn with these requireiints and the Code of 1Ithics. WVe believe that the audit evidenc e we have obtaied ts sulficient and appropriate to provide a basis for ouir opinion. 3. Information other than the financial staterments and Auditor's Report thereon: Tlie Compan's Board of Directors is responsible for tei prepatrationt of the other information*i. lhe other information comtlprises lit' intormatiho inlu i'ded in the Board's Report including its Annexurtv, but does, not inclet inaciak stteme nts anid oYut auditor's report theron. Ourl- Opinion on the finantcial statements dors not tover Kthtr informition ai )t expiress any form o asstirance t' conicl usion theron 0 Nl 9 *uN IHKN cotONY 1 .ci 1 Branches :Jagjot Singh Street. Patti Baru, Baraut, Distt Baghpat (U.P) - 250611 Tel. 01234 - 262897 263076 F-19, Ängel Mega Mall, Kaushambhi, Ghaziabad (U P.) - 201010, Tel 0120-4331621 131, Qutab Plaza, DLF- Gurugram, Haryana - 122002, Tel : +91-9818514428 KIImar ChJOpral &Ascae Chartered A'ccunwtants in connection with our audit of the financial statement, tur responsibility is to read the other inforiation and, in doing sa, consider whether the other inforniation is materially inconsistent with the financial statements or our knowiedge obtained in the audit or otherwise appears to be rnateriaflv misstated. If based on the work we have performed, we conclude that there is the rnaterial misstaternent of this other inforrmation; we are required to report that facn We have nothing to report in this regard. 4. Responsibility of Managerment for Financial Statenents The Cornpany's Ioard of Directors is responsible for the rnatters stated in section 134(5) of the Act with respect to the preparation of thesu finamicial stateimenlts that give a true and fair view of the financial position, financial performance, and cash flows of the Conpany in accordance wi th the accounting principles generally accepted in lidia, including the accounting Standards specified under section 133 of the Act. This responsibility also inciudes maintenance of adequate atccounting records in accordance with the prrvsions of the Act for safeguarding of the assets of the Conpany and for preventing and detecting frauds and othei irregularities; seiection and 1pplication of appropriate irmplementation anid maintenane of accounning policies; making judgments and estinates that art, reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were opteratiig effectively for ensuring the accuracy and complkteness of tht accounting records, relevant to the preparation and presentation of the financial statemient that give a trut and fair view and are free from material misstatiement, whether du to frauid or error. In preparing the financiail statemeits, rnarnagement is responsible for assessing the Companiy's abiity to continue as a going concern. discltsing, as applicable, matters related to going concern and using the going concern basis of acctontiing unless management either witeds to liquidate the Conpany or to Cease operations, or has no realistic alternative but to do so. Those Board of Directors are also responsile for overseing the tompany's financial reporting process. 5. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assuranc about whether te financial statements as a whole are free from rnatrial minsstatemen, whether de to fraud or error, and to isslie an a ud itor's report that iSnludes our opiion. Reasonabie assuriance is a high level of assurance, but is not a guarantee that an audit contducted iii accordlaice with SAs will always detect a material iisstatement when ii exists. Misstatenients can arise from fraud or error and are considered material if, indiviayl or in the aggregate, they could reasonably be expected to influence the economic dcisiois of users taken on the basis of these financial statenents. As part of an audit in accordance with SAs, we exercist professi na! judgment and rnaintaiii roftessional scepticisni tlirt>oighiuiit th audit. We also: i. Identify antd assess the risks of material iisstatement of the linancial statements, whether due to fraud or error, design and perfom audit prdurs responsive to those risks, and obtain audit evidence that is suf f icient ant appro 20 2 B1a-2sGF "NEELHI &od rOh Kumlar Chpa6 socae provide a basis for our opmnioi. h risk of not detecting a iiatrial msstatement resulting from fraud is higher than lor nie resulting fron error, as fraud may involve colilusion, forgery, intentional omissinis, misrepresentations, or the override of interna [ control. ii. Obtain an undvrstanding el internal cintrol reoevant to t' audit in order to design audd pircedurs that ar appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2()i3, wve are also responsible for expressing our opi nion o)n whiether the corpanviy has adequate internal vinaniai centros system in place and thecoperating eflectivines ol such controls. iii. Evaluate the appiopriateness of accounting policies tised and tho reasonableness of accounting esirnates and relatoi disclosurs made by manageinent. iv. Conclude on the appropriatness of iiaiageimen t's use of tie gojing concern basis of accounting and, based en the audit evidence btaiined, whlether- a material uncertainty exists related to events or condinties that may -ast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are rqutrec tu dran attention in our auditor's report to the related disclosures in the financial statements or, if snch disclosures are inade1uate, to modiy our opinion. Our conclusions are based on the audit evidence obtained up to the date of nur auditor's report. 1 Jiowever, future events or conditions may cause the Company to cease to continu as a going conern. v. Evaluvate the overal presentation, structure and contke t of the financial statements, Mäicding the disclosures, id whether tiet financial staternents represent the underlying transactions and events in a nianiner that achieves fair presentation. We conimnicate with those charged with govrancet' regarding, among other natters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal conitro that e identify during our aCdit. We aso provide thOse Charged with governaince vith a staterent that wc have complied witi relevant ethca1 requirments regarding indepundence, and to communicate with thern all relationships and other matters that maY reasonably be thought to bear on our independene, and wvhere applicable, related saf'guards. 6. Report on Other Legal and Regulatory Requirements L hre Companies (Auditor's Report) Order, 2016, issud by the (Cntra1 Government of India in tcrms of sub-section (11) of section 143 of the (Companies Act, 2013, is not applicalc to this compny since it is a company licensed to opirate' under Section 8 of the Companies Act 2013, N. As retqired by Section 197(16) of the Act, WC repOrt that in Our Opiniioin adtl to the best of ou_1r information and acoriding tu the explanations given to us, the reruneration paid by tlie company to its directors during 1t year is in accordance with the provisions of section 197 of the Act V RA 14, 111. As required by Section 143(3) ol the Act, we report that: 3NEW a 3 Klunwr Chopra & Assoctes a) We have sought and obtainied1 all the information and explanations which to the best of our knowIedge and befief were necessary for the purposes of our audit. b) ln our opinion, proper books of accoint as reqired by law have been kept by the Company so far as it a ppears from our exanination of those books e) The Blahnce Sheet, the statement of luncomne and Vxpenditure and the Cash Flw Statement dealt with by this Report are in agreement with the books of account. d) In our opinion, the aforesaid financial statements comply wvith the Accounting Standards specified under Section 33 of the Act read with Rule 7 of the Companies (Atcoints) RUles, 2014. e) On the basis of the woitten represeitations received from the directors as on 31st Liarh, 2019 and taken on record by the board of Diectors, none of the directors is disq1 ua lified as on 3Mst Marcli, 2019 from being appointed as a director in terms of Section 164 (2) of the Act, f) With respect to the adequacy of the internal fineacia controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "A nnexure A". g) With respect to the other natters to be included in [be Aiditor's Report in accordance with Rule 11 of the Cormipanies (Aiudit and Aulitors) Rufles, 2014, in our opinion and to the best of our information and according to the explanations given to us: . The Company does not havt any pending litigations hich woild impact its financial position. ii. The Company did not have any long-term contrats including derivative contracts for which there were any material foresceabiv losses. iii. There were io ainotuts which w,vert requ nired to be transferred to the Investor Eåducation and Pirotetion Fund by the Cumpany. For KUMAR C 1OPRA & ASSOCIATES Chartered AccotIntants tegistration No.000131 N) B12 (G Fl r_ KALINDI COLIDWY Place lumbai w.Ev AEL .NK. Aggarwal Date: 08.06.2019 å (Partner) 00 AM (M. No.081510) 4 Kuawr Chpa&Asso;ciates ChrarkeredAcJ nat ANNFXURE "A " T0 1NDI'END NT1)1 AL1)ITOR'S REPORT Annexure to the Independent Auditors' Report reforred to in paragraph 6(11l)(f) of our report of even date on the financial statements of National Skill Development Corporation for the Year ended 31st March, 2019 Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act") We have audited the internal financial controls over financial reporting of National Skill Development Corporation ("the Company") as of XMarch 31, 2019 in conjun.Ction With our audlit of the financial statements of the Company or the year ended on tIhdt date Management's Responsibility for Internal Financial Controls The Company's management is responsible for estabhishing and ain iaintaining 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 Ilinanciai Reporting issued by the Institute ol Chartered AccoUntants of India. I hese esponsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and eJffienit conduct of its bLIusiniress, ilnclUding adherence to company's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the acCounting recorIds, 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 Company's internal finnancial controls over financial reporting based on our audit. We Contducted out andit in accordance with the Guidance Note on Audit of Internal Financial Controls Over I inani cial Reporting (the "Guidance Note") issued by the Institute of Chartered ACCoUL1ntants of India and the Standards on Aulditing, prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal finainial controls. Ihose Standards and the Guidance Note require that we comply with ethical reqLirements aId plan and perform the audit to obtain reasonable assurance about whetIr ldequate inLteirnaI filancial 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 evidenlce about the adequacy of the internal financial controls system over financial reportint and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over fiiancial reporting, assessing the risk that a material weakness exists, and testing and evalujating the design and operating effectiveness of internal control based on the assessed risk. The proLced ures selected depend on the auditor's judgeineit, including the assessment of the risks of material missta the financial slatemnentis, whether lue to fraud or error. 0 SKALIN 150 ONY " NEW LH 5 Kuma Chpra& Ass(iates We believe that the auldit evidence we have obtained is sLicient and appropriate to provide a basis for our audit opinion on the Company's internal financial controls system over financial reporting. Meaning of Internal Financial Controls Over Financial Reporting A tonipany's internal financial control over financial reporting is a process designed to provide reasonable assurance regardmg the reliability of financial reporting and the preparation of 1inancial statements for external purposes in accordance with generally acceptied accounting priniples. A companys internal inancial control over financial reporing incides those polcies and proceduiOrts flai (1) pertain to the maintenance of records that, in reasonable detail, accuratey adl lairly reflect tle transactions and dispositions of the assets of the company; (2) provide reasona ble assurante that transactions are recorded as necessary to perrnit preparation of financial statements in accordance with geneially accepted accounting principles, and tilat receipts and expendituTres of the company are being made only in accordance with authorizations of management and directors of the cornpany; and (3) provide reasonable assurance regarding prevention or timelv detection of unauthorized avqu isition, use, or disposition of the company's assets that coUld have a material ef lect 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, incliud ing the possibility of colkusion or improper nanagement override of control, rnaterial misstatemenis dune to error or fraud may ccur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reportiOng to fnue periods are subject to the risk that the internal financial vont1 rol over financial reporting may becone inadequate because of changes in conditions, or that the degree ol conmpliance with the policies or procedures may deteriorate. Opinion In our opinion, the Company has, in all material respects, an adequaie internal financial controls system over financial reporting and sli internal financia controls over financial reporting were operating effectively as at March 31, 2019, based on the internal control over financial reporting criteria established by the Company considering the essential coponerits of interna1 control sted in the (uidanve Not on Audit of Internal Financial Controls Over Finantial Reportiig issued by the Institute of ihartered AUcountants of India. For KUMAR Cl fOPR.A & ASSOCIAlES Claitered Accountants (Fiirni's Reg ist ratioii No.000131 N) Place: NIMbai ýuNDI COL0 K.'ggarwal Date: 08.06s2019 NEW4 DE (PaOrR ner) mun (M. No.08T1510) 'ed AcC/ 6A~ 6