The Members of
M/s NIHAR INFO GLOBAL LIMITED
Report on the Individual Ind AS Financial Statement
We have audited the accompanying Individual Ind AS financial statements of NIHAR INFOGLOBAL LIMITED ("the Company") which comprise the Balance Sheet as at March 312018 the Statement of Profit and Loss (including Other Comprehensive Income) the CashFlow Statement and the Statement of Changes in Equity for the year then ended and asummary of the significant accounting policies and other explanatory information.
Management's Responsibility for the Individual Ind AS Financial Statement
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 Individual Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) prescribedunder section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection 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 Individual IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these Individual Ind AS financialstatements based on our audit.
In conducting our audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder. We conductedour audit of the Individual Ind AS financial statements in accordance with the Standardson Auditing specified under Section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the Individual Ind AS financial statements are free from materialmisstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Individual Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the Individual Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the Individual Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presenta tion of the Individual Ind ASfinancial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the Individual Ind AS financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Individual Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2018 and its profit total comprehensive income its cash flowsand the changes in equity for the year ended on that date.
Emphasis of Matter Paragraph
We draw your attention to Note 27 of the financial statements with respect tonon-accounting of ESOP expenditure due to unavailability of fair valuation report. Ouropinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1) As required by Section 143(3) of the Act based on our audit we report to theextent applicable 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 Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the relevant books of account.
d) In our opinion the aforesaid Individual Ind AS financial statements comply with theIndian Accounting Standards prescribed under section 133 of the Act.
e) On the basis of the written representations received from the directors as on March31 2018 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2018 from being appointed as a director in terms of Section 164(2) of theAct.
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".
g) 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 as amended inour opinion and to the best of our information and according to the explanations given tous:
i) The Company does not have any pending litigations which would impact its financialposition;
ii) The Company did not have any long term contracts including derivative contractsfrom which there were any material foreseeable losses;
iii) There were no amounts which were required to be transferred to Investor Educationand Protection Fund by the Company.
2) As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder.
For M/s Lakshmi & associates
Firm Registration No. 012482S
T. Mohan Reddy
Membership No: 239635
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 of M/s .NIHAR INFO GLOBAL LIMITED on the financial statements for the year ended March 312018
In terms of the information and explanations sought by us and given by the company andthe books and records examined by us in the normal course of audit and to the best of ourknowledge and belief we state the following:
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 there are no immovable Properties held in thename 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 ourexamination of the records of the company the company has granted unsecured Interest freeloans to one company without any repayment schedule covered in the register maintainedunder section 189 of the Companies Act. So we are unable to report the loan repaymentoutstanding for more than 90 days.
iv) The Company has not made any transactions in the nature of loans investmentsguarantees and security where provisions of section 185 and 186 of the Companies Act2013 are applicable. Thus paragraph 3(iv) of the Order is not applicable to the Company.
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 has nomanufacturing activity.
vii) According to the information and explanations given to us and the records producedand examined by us in our opinion the company is not regular in depositing undisputedstatutory dues consisting of service tax TDS ESI and Provident fund. As explained to usthe company did not have any dues on account of Excise duty Wealth tax and InvestorEducation and Protection Fund.
According to the information and explanations given to us there are undisputed amountspayable in respect of Service tax Income-tax PF and ESI which are in arrears as on31stMarch 2018 for a period more than six months from the date they became payable.
|Nature of the statute ||Nature of the dues ||Amount(Rs) ||Period to which the amount relates |
|Finance Act 1994 ||Service Tax ||1051431 ||F.Y 2014-15 2015-16 2016-17 |
|Income Tax Act 1961 ||TDS ||642998 ||F.Y 2014-15 2015-16 2016-17 201718 |
|EPF Act 1952 ||PF ||272316 ||F.Y 2017-18 |
|ESI Act 1958 ||ESI ||441386 ||F.Y 2015-16 2016-17 2017-18 |
|PT Act1987 ||PT ||47954 ||FY 2016-17FY:2017-18 |
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:
The requirement of Section 42 of the Companies Act 2013 as applicable have beencomplied with; and
The amounts raised have been applied by the Company during the year for the purposesfor which the funds were
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 M/s Lakshmi & associates
Firm Registration No. 012482S
T. Mohan Reddy
Membership No: 239635 Place: Hyderabad
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 Nihar InfoGlobal Limited ("the Company") as of March 31 2018 in conjunction with ouraudit of the Individual financial statements of the Company for the year ended on thatdate.
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'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
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 p rescribed 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.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such financials controls overfinancial reporting were operating effectively as at 31 March 2018 based on the internalcontrol over financing reporting criteria established by the company considering theessential components of interna l controls stated in the guidance note on Audit ofinternal financial control systems over financial reporting issued by the Institute ofChartered Accountants of India.
For M/s Lakshmi & associates
Firm Registration No. 012482S
T. Mohan Reddy
Membership No: 239635