The Members of
M/s NIHAR INFO GLOBAL LIMITED Report on the Financial Statements
We have audited the accompanying financial statements of M/s NIHAR INFO GLOBAL LIMITED(the Company) which comprise the Balance Sheet as at March 31 2017 and the Statement ofProfit and Loss and Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors are responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
Our responsibility is to express an opinion on these financial statements based on ouraudit.
We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view i n order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India.
a. In the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2017;
b. In the case of the Statement of Profit and Loss of the profit of the Company forthe year ended on that date; and
c. In the case of the Cash Flow Statement of the cash flows of the Company for theyear ended on that date.
Report on Other Legal and Regulatory Requirements
1) As required by the Companies (Auditor's Report) Order 2016 ("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 Annexure A a statement on the matters specified inthe paragraph 3 and 4 of the order :
2) 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 and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.
d. In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
e. Based on the Written Representation received from the directors as on 31st March2017 and taken on record by the Board of Directors we report that none of the directorsare disqualified as on 31st March2017 from being appointed as a director in terms ofSub-section 2 of Section 164 of the Act.
f. With Respect to the adequacy of the internal controls over financial reporting ofthe company and the operating effectiveness of such controls refer to our separate reportin Annexure B;and
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 in our opinionand to the best of our information and according to the explanations given to us.
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.
IV. The company has provided requisite disclosures in its financial statements as toholdings as well as dealings in specified bank notes during the period from 8thNovember 2016 to 30th December 2016 and they are in accordance with the books of accountsmaintained by the company.
For M/s C.RAMACHANDRAM & CO.
Firm Registration No. 002864S
Membership No: 025834
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 312017
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:
i. (a) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;
(b) As explained to us all the fixed assets have been physically verified by theManagement during the year. No material discrepancies were noticed on such verification.
(c) The company does not own any immovable properties and hence the provisions ofparagraph 3(i)(c)of the Order are not applicable to 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.The receipt of the principal amount is not due ason 31st March 2017.
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. The company has not accepted any deposits within the meaning of provisions ofSections 73 to 76 or any other relevant provisions of the Companies Act 2013 and therules framed there under. Thus paragraph 3(v) of the Order is not applicable to thecompany.
vi. Section 148(1) of the Companies Act 2013 is not applicable as the company has nomanufacturing 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 taxTDS ESI and Provident fund. Asexplained to us the company did not have any dues on account of Excise duty Wealth taxand Investor Education 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 on 31stMarch2017 for a period more than six months from the date they became payable.
|Name of the statute ||Nature of the dues ||Amount(Rs.) ||Period to which the amount relates |
|Finance Act 1994 ||Service Tax ||Rs.801052/- ||FY 2016-17 2015-16 & 2014-15 |
|Income Tax Act 1961 ||TDS ||Rs.321858/- ||FY 2016-172015-16 &2014-15 |
|EPF Act1952 ||PF ||Rs.135098/- ||FY 2016-17 &2015-16 |
|ESI Act1958 ||ESI ||Rs.198957/- ||FY 2016-17 2015-16 |
(b) According to the information and explanations given to us there are no dues ofIncome Tax Value Added Tax Service Tax andCustoms duty which have not been depositedwith the appropriate authorities on account of any dispute. As informed to us the companydid not have any dues on account of Wealth tax and Excise duty.
viii. In our opinion and according to the information and explanations given to us asthe company has not taken any loans from the banks or financial institution bankGovernment or to its debenture holders.Thus paragraph 3(viii) of the Order is notapplicable to the company.
ix. As the company has not raised any moneys by way of initial public offer or furtherpublic offer or by way term loans (including debt instruments) during the reportingperiod.Thus paragraph 3(ix) of the Order is not applicable to the company.
x. According to the information and explanation given to us there is no fraud by or onthe company by its employees or officials of the company have been noticed during thecourse of audit.
xi. According to information and explanation given to us and based on our examinationof the records of the company the company has not paid managerial remuneration inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith schedule V to the Companies Act 2013.
An amount of Rs.510956 was paid in excess of the limits specified in section 197 readwith schedule V of the Companies Act 2013. The company has received the above said excessremuneration from respective directors as on 31st March 2017.
xii. In our opinion and according to the information and explanations given to us thecompany is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable for the company.
xiii. In our opinion and according to information and explanations given to us andbased on our examination of records of the company all transactions with the relatedparties are in compliance with Sections 177 and 188 of Companies Act 2013 and the detailsof such transactions have been disclosed in the Financial statements of the company asrequired by applicable Accounting Standards.
xiv. According to information and explanation given to us and based on our examinationof records of the company the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year.Thusparagraph 3(xiv) of the Order is not applicable to the company.
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 C.RAMACHANDRAM & Co.
Firm Registration No : 002864S.
Membership No: 025834.
Date : 29.08.2017
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 2017 in conjunction with ouraudit of the standalone 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 accur acy 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 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 misstatemen t 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 2017 based on the internalcontrol over financing reporting criteria established by the company considering theessential components of internal controls stated in the guidance note on Audit of internalfinancial control systems over financial reporting issued by the Institute of CharteredAccountants of India.
For C.Ramachandram& Co.
Firm registration No. 002864S
Membership No: 025834.