You are here » Home » Companies » Company Overview » Nihar Info Global Ltd

Nihar Info Global Ltd.

BSE: 531083 Sector: IT
NSE: N.A. ISIN Code: INE876E01033
BSE 00:00 | 27 Nov 3.09 -0.16
(-4.92%)
OPEN

3.09

HIGH

3.40

LOW

3.09

NSE 05:30 | 01 Jan Nihar Info Global Ltd
OPEN 3.09
PREVIOUS CLOSE 3.25
VOLUME 250
52-Week high 6.47
52-Week low 2.79
P/E 23.77
Mkt Cap.(Rs cr) 3
Buy Price 3.09
Buy Qty 975.00
Sell Price 3.40
Sell Qty 1900.00
OPEN 3.09
CLOSE 3.25
VOLUME 250
52-Week high 6.47
52-Week low 2.79
P/E 23.77
Mkt Cap.(Rs cr) 3
Buy Price 3.09
Buy Qty 975.00
Sell Price 3.40
Sell Qty 1900.00

Nihar Info Global Ltd. (NIHARINFOGLOB) - Auditors Report

Company auditors report

To

The Members of

M/sNihar Info Global Limited

Reporton the Audit of the Individual Financial Statements Qualified Opinion

We have audited the accompanying individual financial statements of M/s Nihar InfoGlobal Limited ("the Company") which comprise the Balance Sheet as at March 312019 the Statement of Profit and Loss (including Other Comprehensive Income) and theStatement of Changes in Equity and the Statement of Cash Flows for the year ended on thatdate and a summary of the significant accounting policies and other explanatoryinformation (hereinafter referred to as "the individual financial statements").

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matters described in the 'Basis for QualifiedOpinion' section of our report the aforesaid standalone Ind AS financial statements givethe information required by the Companies Act 2013 as amended ("the Act") in themanner so required and give a true and fair view in conformity with the generally acceptedin India of the state of affairs of the Company as at March31 2019 its profit includin gother comprehensive income its cash flows and the changes in equity for the year ended onthat date

Basis for Opinion

i. The Company has allotted 25000 equity shares though ESOP'S on January 172019 andreceived cheques for ESOP subscription from employees. However the same was not encashedbefore the expiry of exercise period. In the meanwhile the cheques received for ESOPsubscription have lapsed and the company received the amount subscription amount thoughRTGS in the month January 2019. The company applied for listing of above shares to BSE on2nd February 2019.

ii. The company has not obtained fair valuation for the stock options issued during thefinancial year and also for previous years. Accordingly expenses with respect to stockoptions were not recognized resulting in over statement of profit. The amount ofoverstatement cannot be quantified due to non-availability of stock options valuationreports.

iii. The company has not recognized expected credit loss on trade receivables inaccordance with the Indian Accounting Standard 109 on Financial Instruments resulting inover statement of profit.

iv. Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the individual financial statements of the current period.These matters were addressed in the context of our audit of the individual financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Key audit matter Auditor's Response
The company is engaged in business of E- commerce and software maintenance.
Adoption of Ind AS 115 Revenue from Contracts with Customers (new revenue accounting standard) The application of the new revenue accounting standard involves certain key Judgments relating to identification of distinct performance obligations determination of transaction price of the identified performance obligations the appropriateness of the basis used to measure revenue recognized over a period. We assessed the Company's process to identify the impact of adoption of the new revenue accounting standard. Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing as follows:
1. Evaluated the design of internal controls relating to implementation of the new revenue accounting standard
2 . Selected a sample of contracts and through inspection of evidence of performance of these controls tested the operating effectiveness of the internal controls relating to the identification of performance obligations and timing of revenue recognition.
3. Selected a sample of contracts and reassessed contractual terms to determine adherence to the requirements of the new accounting standard.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the Director's report and Management discussion and analysis reportincluding Annexures Corporate Governance and Shareholder's information but does notinclude the individual financial statements and our auditor's report thereon.

Our opinion on the individual financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the individual financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the individual financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Management's Responsibility for the Individual Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the prepa ration of these individual financialstatements that give a true and fair view of the financial position financialperformance total comprehensive income changes in equity and cash flows of the Companyin accordance with the Ind AS and other accounting principles generally accepted in India.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing and detecting frauds and other irregularities; selectio n and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the individualfinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the individual financial statements management is responsible forassessing the Company's ability to continue a s a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so. The Board of Directors areresponsible for overseeing the Company's financial reporting process.

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

Our objectives are to obtain reasonable assurance about whether the individualfinancial 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 individual financial statements.

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

a. Identify and assess the risks of material misstatement of the individual 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.

b. Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

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

d. 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 individual 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.

e. Evaluate the overall presentation structure and content of the individual financialstatements including the disclosures and whether the individual financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the individual financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

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 i n the audit of the individual financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of Section 143 ofthe Companies Act 2013 we give in the Annexure A a statement on the matters specifiedin paragraphs 3 and 4 of the Order to the extent applicable.

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 bestof 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 theCompany so far as it appears from our examination of those books.

c. The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome the Statement of Cash Flow and the Statement of Changes in Equity dealt with inthis report are in agreement with the books of account.

d. In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e. Based on the Written Representation received from the directors as on March 312019 and taken on record by the Board of Directors we report that none of the directorsare disqualified as on March 31 2019 from being appointed as a director in t erms ofSub-section 2 of Section 164 of the Act.

f. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B". Our report expresses an unmodified opinion onthe adequacy and the operating effectiveness of the Company's internal financial controlsover financial reporting.

g. With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended:

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.

h. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has no pending litigations on its financial position in its financialstatements.

ii. There is no requirement for any provision as required by any act or IndianAccounting Standards for material foreseeable losses if any on long term contractsincluding derivative contracts.

iii. There are no amounts which are required to be transferred to Investor Educationand protection fund.

For LAKSHMI & ASSOCIATES
Chartered Accountants
Place: Hyderabad Firm Registration No. 012482S
Sd/-
Date: August 30 2019 MOHAN REDDY T
Partner
Membership No. 239635
UDIN No 19239635AAAAAQ9816

ANNEXURE A TO THE AUDITORS' REPORT

Annexure referred to in paragraph under ‘Report on Other Legal and RegulatoryRequirements' section of our report of the Independent Auditors' Report of even date ofM/sNIHAR INFO GLOBAL LIMITED on the financial statements for the year ended March 31 2019

In terms of the information and explanations sought by us and given by the company andthe books and records examined by us i n the normal course of audit and to the best of ourknowledge and belief we state the following:

i) a. The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

b. The Company has verified fixed assets at regular intervals. There was no materialdiscrepancies were noticed on such verification.

c. According to information and explanations given to us and on the basis of ourexamination of the records of the company the title deeds of immovable Properties areheld in the name of the company.

ii) The Management is conducting physical verification of inventory at reasonableintervals and there were no material discrepancies were found.

iii) According to the information and explanations given to us and based on the auditprocedures conducted by us we are of the opinion that the terms and conditions of loansgranted by the company to one of the parties covered in the register maintained undersection 189 of the companies act 2013(total amount granted Rs.22348884 and balanceoutstanding as at the balance sheet date Rs 22348884) are prejudicial to the company'sinterest on accou nt of the fact that the loans were granted interest free unsecured andwithout repayment schedule.

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 and investments made.

v) According to the information and explanations given to us the Company has notaccepted any deposit falling under the purview of the provisions of section 73 to 76 ofthe Companies Act 2013 during the year and does not have any unclaimed deposits andhence reporting under clause (v) of the order is not applicable.

vi) Section 148(1) of the Companies Act 2013 is not applicable as the company as thereis no manufacturing activity.

vii) (a) According to the information and explanations given to us and the recordsproduced and examined by us in our opinion the company is not regular in depositingundisputed statutory dues consisting of service tax GSTTDS ESI and Provident fund.According to the information and explanations given to us there are undisputed amountspayable in respect of Service tax GST Income-tax PF and ESI which are in arrears as on31stMarch 2019 for a period more than six months from the date they becamepayable.

Nature of the statute Nature of the dues Amount (Rs.)
Finance Act 1994 Service Tax 556375
Income Tax Act 1961 TDS 1087749
EPF Act 1952 PF 120795
ESI Act 1958 ESI 578635
PT Act 1987 PT 66555
VAT Act 2005 VAT 43417

(b) There are no dues of income tax sales tax or GST or duty of custom or duty ofexcise or value added taxes that have not been deposited on account of any dispute.

viii) According to the records of the Company examined by us and the information andexplanations given to us the Company has not defaulted in repayment of loans or borrowingto any financial institution bank or government as at the balance sheet date.

ix) The company has not raised any moneys by way of initial public offer or furtherpublic offer (including debt instruments) during the reporting period. The Company has notavailed any term loans during the financial year.

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

xi) In our opinion and according to the information and explanations given to us theCompany has paid / provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.

xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of theOrder is not applicable.

xiii) In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 188 and 177 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the financial statements etc. as required by theapplicable accounting standards

xiv) According to the information and explanations given to us the Company has madepreferential allotment of shares during the year under review.

In respect of the above issue we further report that:

a) The requirement of Section 42 of the Companies Act 2013 as applicable have beencomplied with; and

b) The amounts raised have been applied by the Company during the year for the purposesfor which the funds were raised other than temporary deployment pending application.

xv) According to information and explanation given to us and based on our examinationof records of the company the company has not entered into non cash transactions withdirectors or any persons connected with him. Accordingly paragraph 3(xv) of the Order isnot applicable to the company.

xvi) In our opinion as per the information and explanation given to us the company isnot required to be registered under section 45IA of Reserve Bank of India Act 1934. Thusparagraph 3(xvi) of the Order is not applicable to the company.

For LAKSHMI & ASSOCIATES
Place: Hyderabad Chartered Accountants
Date: August 30 2019 Firm Registration No. 012482S
Sd/-
MOHAN REDDY T
Partner
Membership No. 239635
UDIN No 19239635AAAAAQ9816

Annexure - B to the Auditors' Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of M/s NiharInfo Global Limited ("the Company") as of March 31 2019 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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 was 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 misstatement of 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 controls 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

1. Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

2. Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

3. Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent 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 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 the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 312019 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For LAKSHMI & ASSOCIATES
Chartered Accountants
Place: Hyderabad Firm Registration No. 012482S
Date: August 30 2019 Sd/-
MOHAN REDDY T
Partner
Membership No. 239635
UDIN No 19239635AAAAAQ9816

.