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Nidhi Granites Ltd.

BSE: 512103 Sector: Financials
NSE: N.A. ISIN Code: INE276H01013
BSE 00:00 | 08 Dec 77.00 3.50
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NSE 05:30 | 01 Jan Nidhi Granites Ltd
OPEN 73.00
PREVIOUS CLOSE 73.50
VOLUME 4
52-Week high 119.85
52-Week low 25.70
P/E
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 73.00
CLOSE 73.50
VOLUME 4
52-Week high 119.85
52-Week low 25.70
P/E
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Nidhi Granites Ltd. (NIDHIGRANITES) - Auditors Report

Company auditors report

To the Members of NIDHI GRANITES LIMITED

Report on the Standalone Ind AS Financial Statements

Opinion

We have audited the accompanying standalone Ind AS Financial statements of NIDHIGRANITES LIMITED ('the Company') which comprise the Standalone Balance Sheet as at31st March 2020 the Standalone Statement of Profit & Loss (including OtherComprehensive income) Statement of Changes in Equity and the Cash Flow Statement for theyear ended and a summary of the significant accounting policies and other explanatoryinformation.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Financial Statements give the information requiredby the Companies Act 2013("the Act") in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at 31st March 2020 and its loss the changes inequity 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) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone FinancialStatements section of our Report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India (ICAI) togetherwith the independence requirements that are relevant to our audit of the standalonefinancial statements under the provisions of the Act and the Rules made thereunder and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the ICAI's Code of Ethics. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the standalonefinancial statements.

Emphasis of Matter

We draw your attention to the Note 20 to the Note to accounts forming part ofstandalone financial statements which describes the management's assessment of the impactof the outbreak of Coronavirus

(COVID-19) on the business operations of the Company. The management believes that noadjustments are required in the standalone financial statements as it does not impact thecurrent financial year however in view of the various preventive measures taken (such ascomplete lock-down travel restrictions etc.) and highly uncertain economic environment adefinitive assessment of the impact on the subsequent periods is highly dependent uponcircumstances as they evolve. Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined that there are no key audit mattersto communicate in our report.

Other Audit Matters

The comparative financial information of the Company for the year ended March 31 2019included in these standalone Ind AS financial statements is based on the previouslyissued statutory financial statements for the year ended March 31 2019 prepared inaccordance with the Companies (Accounting Standards) Rules 2006 (as amended) which wereaudited by the predecessor auditor who expressed an unmodified opinion dated May 242019. The transition date opening balance sheet as at April 1 2018 included in thesestandalone Ind AS financial statements is based on the previously issued statutoryfinancial statements for the year ended March 31 2018 prepared in accordance with theCompanies (Accounting Standards) Rules 2006 (as amended) which were audited by thepredecessor auditor who expressed an unmodified opinion vide Report dated May 30 2018.The adjustments to those financial statements for the differences in accounting principlesadopted by the Company on transition to the Ind AS have been audited by us.

Information other than the financial statements and auditors' report thereon

The Company's management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company'sAnnual Report but does not include the standalone financial statements and our auditors'report thereon. Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated. If based on thework we have performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in this regard.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone Ind AS financial statements that give a true and fair view of the Stateof affairs profit/loss including other comprehensive income changes in equity and cashflows of the Company in accordance with the accounting principles generally accepted inIndia including the Indian Accounting Standards (Ind AS) specified under section 133 ofthe Act. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of accounting records relevant to the preparation and presentation of thestandalone Ind AS financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

In preparing the standalone Ind AS financial statements the management is responsiblefor assessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless the Board of Directors either intends to liquidate the company or tocease operations or has no realistic alternative but to do so. The Board of Directors arealso responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the Standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these Standalone financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

? Identify and assess the risks of material misstatement of the Standalone financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

? Obtain an understanding of internal financial control relevant to the audit in orderto design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Companies Act 2013 we are also responsible for expressing our opinionon whether the company has adequate internal financial controls system in place and theoperating effectiveness of such controls.

? Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

? Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe Standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

? Evaluate the overall presentation structure and content of the Standalone financialstatements including the disclosures and whether the Standalone financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation. We communicate with those charged with governance regarding among othermatters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

As required by 'the Companies (Auditor's Report) Order 2016' ("The CARO Order2016") issued by the Central Government of India in terms of sub-section (11) ofSection 143 of the Act we give in the 'Annexure A' a statement on the matters specifiedin paragraphs 3 and 4 of the Order.

A. As required by Section 143 (3) of the Act we report that: a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit;

b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;

c) The Standalone Balance Sheet the Statement of Profit & Loss (including OtherComprehensive Income) the Cash Flow Statement and the Statement of Changes in Equitydealt with by this report are in agreement with the books of account;

d) In our opinion the aforesaid standalone financial statements comply with the IndianAccounting Standards specified under section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended;

e) On the basis of the written representations received from the Directors as on 31stMarch 2020 and taken on record by the Board of Directors none of the Directors isdisqualified as on 31st March 2020 from being appointed as a Director in terms of Section164 (2) of the Act;

f) With respect to the adequacy of the internal financial control over financialreporting of the Company with reference to these standalone Ind AS financial statementsand the operating effectiveness of such controls refer to our separate report in'Annexure B' to this report;

B. With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact if any of pending litigations on itsfinancial position in its standalone Ind AS financial statements;

ii. The Company does not have any long term contracts including derivative contracts asat 31st

March 2020 hence the question of commenting on any material foreseeable lossesthereon does not arise. iii. There has not been an occasion in case of the Company duringthe year ended 31st March

2020 to transfer any sums to the Investor Education and Protection Fund. The questionof delay in transferring such sum does not arise. iv. The reporting on disclosuresrelating to Specified Bank Notes is not applicable to the Company for the year ended March31 2020.

C. With respect to the matter to be included in the Auditors' Report under Section197(16) of the Act:

In our opinion and according to the information and explanations given to us theremuneration paid by the Company to its directors during the current year is in accordancewith the provisions of Section 197 of the Act. The remuneration paid to any director isnot in excess of the limit laid down under Section 197 of the Act. The Ministry ofCorporate Affairs has not prescribed other details under Section 197(16) which arerequired to be commented upon by us.

FOR S K BHAGERIA & ASSOCIATES
CHARTERED ACCOUNTANTS
(S K BHAGERIA)
PARTNER
Place: Mumbai M. No: 041404
Date: 30/07/2020 UDIN: 20041404AAAABC6622

Annexure "A" to the Independent Auditor's Report on the standalone financialstatements of Nidhi Granites

Limited

With reference to the Annexure A referred to in the Independent Auditors' Report to themembers of the Company on the standalone financial statements for the year ended 31 March2020 we report the following:

i. In case of Fixed Assets:

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Company has a regular programme of physical verification of its fixed assetsby which all fixed assets are verified every year. In our opinion this periodicity ofphysical verification is reasonable having regard to the size of the Company and thenature of its assets. Pursuant to the programme fixed assets were physically verifiedduring the year and no material discrepancies were noticed on such verification.

(c) According to information and explanation given to us and the records of the companyexamined by us the Company does not have any immovable properties during the year.Accordingly reporting under clause 3 (i) (c) is not applicable to the company.

ii. The inventories of the company are in the nature of Financial Instruments henceclause 3 (ii) of the order relating to physical verification of the inventory will not beapplicable to the company.

iii. According to information and explanation given to us the company has not grantedany loan secured or unsecured to companies firms limited liability partnerships orother parties covered in the register required under section 189 of the Companies Act2013.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Act with respectto the loans given investments made guarantees and securities given.

v. The company has not accepted any deposits from the public within the meaning ofsection 73 to

76 of the Act and the Rules framed there under to the extent notified and accordinglyclause 3 (v)of the order is not applicable.

vi. The Central Government of India has not prescribed the maintenance of cost recordsunder subsection (1) of section 148 of the Act for any of the activities of the companyand accordingly clause 3 (vi) of the order is not applicable.

vii. In respect of statutory dues:

(a) According to the information and explanations given to us and the records of theCompany examined by us in our opinion the Company is generally regular in depositingundisputed statutory dues in respect of income tax and Goods and Service Tax and isregular in depositing undisputed statutory dues including provident fund employees'state insurance sales tax service tax duty of customs duty of excise value added taxcess and other material statutory dues as applicable.

(b) According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income-tax goods andservice tax duty of customs cess and other material statutory dues were in arrears as atMarch 31 2020 for a period of more than six months from the date they became payable.

(c) According to the information and explanations given to us and the records of thecompany examined by us there are no dues of income-tax sales- tax service tax goodsand service tax duty of customs duty of excise and value added tax which have not beendeposited on account of any dispute.

viii. In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of loans or borrowings to Banks. The Companydid not have any loans or borrowings from financial institutions or government and thereare no dues to debenture holders during the year.

ix. In our opinion and according to the information and explanations given to us theCompany has not raised any money by way of initial public offer or further public offer(including debt instruments) and has not taken any term loans during the year.

x. To the best of our knowledge and according to the information and explanations givento us no fraud by the Company or no material fraud on the Company by its officers oremployees has been noticed or reported during the year.

xi. As per the information and explanations given to us and based on examination of therecords of the

Company the Company has not paid any managerial remuneration during the year.

xii. In our opinion and according to the information and explanations given to us theCompany is not a

Nidhi Company and accordingly paragraph 3 (xii) of the order is not applicable to theCompany.

xiii. According to the information and explanations given to us and based on ourexamination of the records of the company transactions with the related parties are incompliance with section 177 and 188 of the Act where applicable the details of suchtransactions have been disclosed in the financial statements as required by the IndianAccounting Standard (Ind AS) 24 Related Party Disclosures specified under section 133 ofthe Act.

xiv. According to the information and explanations given to us and based on ourexamination of the records of the company the company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

xv. According to the information and explanations given to us and based on ourexamination of the records of the company the company has not entered into non-cashtransactions with directors or persons connected with them.

xvi. According to the information and explanations given to us and based on ourexamination of the records the company's business can be concluded as Financial activityas the company's financial assets constitute more than 50 percent of the total assets andthe income from such financial assets constitute more than 50 percent of the gross income.

However the company will not be required to obtain registration from RBI in pursuanceof section 45-IA of the RBI Act 1934 (as amended) since the net owned funds of thecompany does not exceed Rs. 200.00 lakhs.

FOR S K BHAGERIA & ASSOCIATES
CHARTERED ACCOUNTANTS
(S. K. BHAGERIA)
PARTNER
Place: Mumbai M. No: 041404
Date: 30/07/2020 UDIN: 20041404AAAABC6622

Annexure "B" to the Independent Auditor's Report on the standalone financialstatements of Nidhi Granites Limited

(Referred to in paragraph under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

Report on the Internal Financial Controls Clause (i) of Sub-section 3 of Section 143 ofthe Companies Act 2013.

We have audited the internal financial controls with reference to Standalone FinancialStatements of Nidhi Granites Limited ("the Company") as of 31 March 2020 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

Management's responsibility for internal financial controls

The board of directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal controls over financial reportingcriteria established by the Company considering the essential components of internalcontrols stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors' responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of

Internal Financial Controls Over Financial Reporting (the "Guidance Note")issued by the Institute of Chartered

Accountants of India and the standards on auditing prescribed under Section 143 (10) ofthe Companies Act 2013 to the extent applicable to an audit of internal financialcontrols. Those standards and the guidance note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting were established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatements in the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial control systemover financial reporting.

Meaning of internal financial controls over financial reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (i) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (ii) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (iii) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Limitations of internal financial controls over financial reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management of override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion and according to the information and explanations given to us theCompany has in all material respects an adequate internal financial control system overfinancial reporting and such internal financial controls over financial reporting wereoperating effectively as at March 31 2020 based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India.

FOR S K BHAGERIA & ASSOCIATES
CHARTERED ACCOUNTANTS
(S K BHAGERIA)
PARTNER
Place: Mumbai M. No: 041404
Date: 30/07/2020 UDIN: 20041404AAAABC6622

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