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Nirav Commercials Ltd.

BSE: 512425 Sector: Others
NSE: N.A. ISIN Code: INE242B01018
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NSE 05:30 | 01 Jan Nirav Commercials Ltd
OPEN 490.00
PREVIOUS CLOSE 446.35
VOLUME 25
52-Week high 929.10
52-Week low 125.00
P/E 2.14
Mkt Cap.(Rs cr) 19
Buy Price 431.00
Buy Qty 1.00
Sell Price 0.00
Sell Qty 0.00
OPEN 490.00
CLOSE 446.35
VOLUME 25
52-Week high 929.10
52-Week low 125.00
P/E 2.14
Mkt Cap.(Rs cr) 19
Buy Price 431.00
Buy Qty 1.00
Sell Price 0.00
Sell Qty 0.00

Nirav Commercials Ltd. (NIRAVCOMMERCIAL) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

NIRAV COMMERCIALS LIMITED

Report on the Audit of Financial Statements

We have audited the Financial Statements of NIRAV COMMERCIALS LIMITED (hereinafterreferred to as "the Company") which comprise the Balance Sheet as at March 312021 and 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 notesto the Financial Statements including a summary of significant accounting policies andother explanatory information (collectively referred to as ‘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 theCompanies Act 2013 (hereinafter referred to as "the Act") in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2021and its profit total comprehensive income its cash flows and the changes in equity forthe 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 Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the Financial Statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.

Emphasis of Matter

We draw your attention to Note No. 36 to the Financial Statement for the year endedMarch 31 2021 which describes the impact of the outbreak of Coronavirus (COVID-19) onthe business operations of the Company. In view of the highly uncertain economicenvironment a definitive assessment of the impact on the subsequent periods is highlydependent upon circumstances as they evolve.

Our conclusion 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 Financial Statements for the year ended March 31 2021.These matters were addressed in the context of our audit of the Financial Statements as awhole and in forming our opinion thereon and we do not provide a separate opinion on thesematters. We have determined the matters described below to be the Key Audit Matters to becommunicated in our report:

Sr. No. Key Audit Matter Our Response
1. Defined benefit obligation
The valuation of the retirement benefit schemes in the Company is determined with reference to various actuarial assumptions including discount rate future salary increases rate of inflation mortality rates and attrition rates. Due to the size of these schemes small changes in these assumptions can have a material impact on the estimated defined benefit obligation. We have examined the key controls over the process involving member data formulation of assumptions and the financial reporting process in arriving at the provision for retirement benefits. We tested the controls for determining the actuarial assumptions and the approval of those assumptions by senior management. We found these key controls were designed implemented and operated effectively and therefore determined that we could place reliance on these key controls for the purposes of our audit.
We tested the employee data used in calculating the obligation and where material we also considered the treatment of curtailments settlements past service costs remeasurements benefits paid and any other amendments made to obligations during the year. From the evidence obtained we found the data and assumptions used by management in the actuarial valuations for retirement benefit obligations to be appropriate.
2. Modified Audit Procedures carried out in light of COVID-19 outbreak:
Due to COVID-19 pandemic Nation-wide lockdown and travel restrictions imposed by Central/ State Government/ Local Authorities during the period of our audit to facilitate carrying out audit remotely wherever physical access was not possible audit could not be conducted by visiting the premises of the Company. As we could not gather audit evidence in person/ physically/ through discussions and personal interactions with the officials at the Company's Office we have identified such modified audit procedures as a Key Audit Matter. Due to the outbreak of COVID-19 pandemic that caused nationwide lockdown and other travel restrictions imposed by the Central and State Governments/ local administration during the period of our audit we could not travel to the Company's Office and carry out the audit processes physically.
Wherever physical access was not possible necessary records/ reports/ documents/ certificates were made available to us through digital medium and emails. To this extent the audit process was carried out on the basis of such documents reports and records made available to us which were relied upon as audit evidence for conducting the audit and reporting for the current period.
Accordingly we modified our audit procedures as follows:
a. Conducted verification of necessary records/ documents through emails wherever physical access was not possible.
Accordingly our audit procedures were modified to carry out the audit remotely. b. Carried out verification of scanned copies of the documents deeds certificates and the related records made available to us through emails.
c. Making enquiries and gathering necessary audit evidence through Video Conferencing dialogues and discussions over phone calls/conference calls emails and similar communication channels.
d. Resolution of our audit observations telephonically/through email instead of a face-to-face interaction with the designated officials.

Other Information

The Company's Board of Directors are responsible for the other information. The otherinformation comprises the information included in the annual report but does not includethe Financial Statements and our auditor's report thereon.

Our opinion on the Financial Statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the Financial Statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the Financial Statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report the fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the FinancialStatements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these Financial Statements that givea true and fair view of the financial position financial performance including OtherComprehensive Income Cash Flows and Changes in Equity of the Company in accordance withthe Ind AS and other accounting principles generally accepted in India including theaccounting Standards specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation 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.

In preparing the Financial Statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the FinancialStatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these 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 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 control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting 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 Financial Statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the FinancialStatements including the disclosures and whether the Financial Statements represent theunderlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the Financial Statements thatindividually 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 in the audit of the Financial Statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen 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

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 Act and on the basis of such checks of the books and records of the Company as weconsidered appropriate and according to the information and explanations given to us wegive in the Annexure-A a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable

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 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 the Statement of Changes in Equity dealt with by thisreport 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) On the basis of written representations received from the directors as on March 312021 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2021 from being appointed as a director in terms of Section 164 (2) ofthe Act.

f) 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 opinionand to the best of our information and according to the explanations given to us there isno remuneration paid by the Company to its directors during the year.

g) 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.

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

i) The Company as detailed in Note no 32 to the financial statement has disclosed theimpact of its pending litigation on its financial position.

ii) The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii) There were no amounts which were required to be transferred to the InvestorsEducation and Protection Fund by the Company.

For and on behalf of
SURYAPRAKASH MAURYA & Co.
Chartered Accountants
(Firm Registration No.147410W)
CA SURYAPRAKASH MAURYA
Proprietor
Membership No. 178258
Mumbai June 30 2021 UDIN : 21178258AAAACF5960

ANNEXURE-A TO INDEPENDENT AUDITOR'S REPORT

The Annexure referred to in paragraph 1 under the ‘Report on Other Legal andRegulatory Requirements' our report to the members of NIRAV COMMERCIALS LIMITED(‘the Company') for the year ended on March 31 2021. We report that:

i. In respect of its fixed assets:

(a) The company does not maintain fixed assets register showing full particularsincluding quantitative details and situation of fixed assets.

(b) The fixed assets have not been physically verified by the management during theyear and hence it is not possible to determine whether there are any materialdiscrepancies with respect to the same.

(c) As per the information and explanation given to us by the management the titledeeds of the immovable properties as disclosed in Property Plant & Equipments (NoteNo.2 to the financial statements) are held in the name of the Company.

ii. In respect of its inventories:

Due to various restrictions imposed as a part of measures to combat COVID-19 outbreakthe inventory has not been physically verified during the year by the management. Howeveralternative procedures by use of technology were carried out which provided sufficientappropriate audit evidence to conclude that inventory is free from material misstatement.

iii. According to the information and explanation given to us the company has grantedunsecured loan to Companies firms or other parties covered in the register maintainedunder section 189 of the Companies Act. However the relevant documents of loan granted toHind Aluminium Industries Ltd of Rs 88168698.65 are not available for our verification.To this extent this loan is prejudicial to the company's interest. Receipt of thisprinciple amount and interest is regular and there are no overdue amounts for more than90days.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the Companies Act2013 in respect of grant of loans and making investments.

v. In our opinion and according to the information and explanations given to us theCompany has not accepted deposits from the public within the meaning of Sections 73 7475 and 76 of the Act and the Rules framed thereunder to the extent notified. Hencereporting under paragraph 3(V) of the order is not applicable to the company.

vi. We have broadly reviewed the cost records maintained by the Company specified bythe Central Government under subsection (1) of the Section 148 of the Act and are of theopinion that prima facie the prescribed cost records have been maintained. We havehowever not made a detailed examination of the cost records with a view to determinewhether they are accurate or complete.

vii. (a) According to the records of the Company the Company is generally regular indepositing with appropriate authorities undisputed statutory dues including providentfund employees' state insurance income-tax GST sales tax wealth tax duty of customsduty of excise value added tax or cess and other statutory dues applicable to it.

Further according to the information and explanations given to us no undisputedamounts payable in respect of provident fund employees' state insurance income-tax GSTsales tax wealth tax duty of customs duty of excise value added tax or cess and otherstatutory dues were outstanding as at 31-03-2021 for a period of more than six monthsfrom the date they became payable.

(b) According to the records of the Company and information and explanations given tous the following are the particulars of disputed dues on account of custom duty and VATthat have not been deposited:

Name of the Statute Nature of Dues Amount of Demand net of deposits ' Period to which amount relates Forum where dispute is pending
The customs Act 1962 Custom duty Rs.34476246 01/11/2004 to 30/04/2008 The Commissioner of customs (Appeals)

viii. Based on our audit procedures and according to the information and explanationsgiven to us by the management we are of the opinion that the Company has not defaulted inrepayment of dues to financial institutions and bank. Hence reporting under paragraph3(Viii) of the order is not applicable to the company.

ix. Based on our audit procedures and according to the information and explanationsgiven to us by the management the Company has not raised any money by way of initialpublic offer or further public offer (including debt instruments). Further term loanshave been applied for the purpose for which it is taken. Hence reporting under paragraph3(ix) of the order is not applicable to the company.

x. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by themanagement.

xi. Based upon the audit procedures performed and information and explanation given bythe management the company has not given any managerial remuneration during the year.Therefore the provision of clause (xi) of the Paragraph 3 of the Order not applicable tothe Company

xii. The Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicable tothe Company and hence provisions of Clause 3(xii) of the aforesaid Order are notapplicable to the Company.

xiii. The Company has entered into the transaction with the related parties incompliance with the provisions of the Section 177 and 188 of the Act. The details of suchrelated party transactions have been disclosed in the financial statements as requiredunder Accounting Standard (AS)18 Related Party Disclosures specified under Section 133 ofthe Act read with Rule 7 of the Companies (Accounts) Rules 2014.

xiv. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review and henceprovisions of Clause 3(xiv) of the aforesaid Order are not applicable to the Company.

xv. The Company has not entered into any non-cash transactions with its directors orthe persons connected with him and hence provisions of Clause 3(xv) of the aforesaid Orderare not applicable to the Company.

xvi. The Company is not required to be registered Section 45-IA of the Reserve Bank ofIndia Act 1934 and hence provisions of Clause 3(xvi) of the aforesaid Order are notapplicable to the Company.

For and on behalf of
SURYAPRAKASH MAURYA & Co.
Chartered Accountants
(Firm Registration No.147410W)
CA SURYAPRAKASH MAURYA
Proprietor
Membership No 178258
UDIN : 21178258AAAACF5960
Mumbai June 30 2021

ANNEXURE-B TO INDEPENDENT AUDITOR'S REPORT

The Annexure referred to in paragraph 2(g) under the ‘Report on Other Legal andRegulatory Requirements' our report to the members of NIRAV COMMERCIALS LIMITED(‘the Company') for the year ended on March 31 2021.

Report on the Internal Financial Controls under Clause (i) of Sub-Section 3 of Section143 of the Act

We have audited internal financial controls over financial reporting of NIRAVCOMMERCIALS LIMITED ("the Company") as of March 31 2021 in conjunction with ouraudit of the Financial Statements of the Company for the year then ended on that date.

Management's Responsibility for the 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 Guidance Note on Audit of Internal Financial Controls over Financial Reporting issuedby the Institute of Chartered Accountants of India (ICAI). These responsibilities includesdesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of businessincluding adherence to Company's policies the safeguarding of the assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Act.

Auditor's Responsibility

Our responsibility is to express an opinion on Company's internal financial controlsover financial reporting based on our audit. We conducted our audit in accordance with theGuidance Note on Audit of Internal Financial Controls over Financial Reporting (‘theGuidance Note') and the Standards on Auditing deemed to be prescribed under Section143(10) of the Act to the extent applicable to an audit of internal financial controlsboth applicable to an audit of internal financial controls and both issued by the ICAI.Those Standards and Guidance note require that we comply with ethical requirements andplan and perform audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedure 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 controls based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material 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 a reasonable assurance regarding the reliability of financial reporting andpreparation of financial statements for external purpose 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 the transactions are recorded as necessary topermit preparation of financial statements in accordance with the generally acceptedaccounting principles and that receipts and expenditures of the Company are being madeonly in accordance with authorisations of management and directors of the Company; and

3. Provide reasonable assurance regarding prevention or timely detection ofunauthorised 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 control 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.

Disclaimer of Opinion

The information and explanations provided by the management on system of InternalFinancial Controls over financial reporting were not complete to enable us to determine ifthe Company has established adequate Internal Financial Controls over financial reportingand whether such Internal Financial Controls were operating effectively as at March 312021.

We have considered the disclaimer reported above in determining the nature timing andextent of audit tests applied in our audit of the financial statements of the Company andthe disclaimer does not affect our opinion on the financial statements of the Company.

For and on behalf of
SURYAPRAKASH MAURYA & Co.
Chartered Accountants
(Firm Registration No.147410W)
CA SURYAPRAKASH MAURYA
Proprietor
Membership No 178258
UDIN : 21178258AAAACF5960
Mumbai June 30 2021

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