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Nirav Commercials Ltd.

BSE: 512425 Sector: Others
NSE: N.A. ISIN Code: INE242B01018
BSE 00:00 | 22 Jan 210.05 0
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221.40

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221.40

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201.00

NSE 05:30 | 01 Jan Nirav Commercials Ltd
OPEN 221.40
PREVIOUS CLOSE 210.05
VOLUME 204
52-Week high 270.00
52-Week low 125.00
P/E 14.90
Mkt Cap.(Rs cr) 8
Buy Price 206.00
Buy Qty 5.00
Sell Price 221.40
Sell Qty 10.00
OPEN 221.40
CLOSE 210.05
VOLUME 204
52-Week high 270.00
52-Week low 125.00
P/E 14.90
Mkt Cap.(Rs cr) 8
Buy Price 206.00
Buy Qty 5.00
Sell Price 221.40
Sell Qty 10.00

Nirav Commercials Ltd. (NIRAVCOMMERCIAL) - Auditors Report

Company auditors report

TO THE MEMBERS OF NIRAV COMMERCIALS LIMITED

REPORT ON THE FINANCIAL STATEMENTS

1. We have audited the accompanying financial statements of NIRAVCOMMERCIALS LIMITED (‘the Company') which comprise the Balance Sheet as at31st March 2019 the Statement of Profit and Loss (including Other Comprehensive Income)the Statement of Cash Flows and the Statement of Changes in equity for the year thenended and notes to the financial statements including a summary of significantaccounting policies and other explanatory information.

2. In our opinion and to the best of our information and according tothe explanations given to us the aforesaid financial statements give the informationrequired by the Companies Act 2013 (the ‘Act') in the manner so required andgive a true and fair view in conformity with the accounting principles generally acceptedin India including Indian Accounting Standards (‘Ind AS') specified underSection 133 of the Act of the state of affairs (financial position) of the Company as at31 March 2019 and its profit (financial performance including other comprehensiveincome) its cash flows and the changes in equity for the year ended on that date.

BASIS FOR OPINION

3. We conducted our audit in accordance with the Standards on Auditingspecified under Section 143(10) of the Act. Our responsibilities under those standards arefurther described in the Auditor's Responsibilities for the Audit of the FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India(‘ICAI') together with the ethical requirements that are relevant to our auditof the financial statements under the provisions of the Act and the rules thereunder andwe have fulfilled our other ethical responsibilities in accordance with these requirementsand the Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion.

KEY AUDIT MATTERS

4. Key audit matters are those matters that in our professionaljudgment were of most significance in our audit of the financial statements of thecurrent period. These matters were addressed in the context of our audit of the financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters.

5. We have determined the matters described below to be the key auditmatters to be communicated in our report.

Sr. No. Key Audit matter Auditor's Response
1. Accuracy of recognition measurement presentation and disclosures of revenues and other related balances in view of adoption of Ind AS 115 "Revenue from Contracts with Customers" (new revenue accounting standard) PRINCIPAL AUDIT PROCEDURES Our audit procedures on adoption of Ind AS 115 Revenue from contracts with Customers (‘Ind AS 115') which is the new revenue accounting standard include –
• Evaluated the design and implementation of the processes and internal controls relating to implementation of the new revenue accounting standard;
The revenue standard establishes a comprehensive framework for determining whether how much and when revenue is recognized. This involves certain key judgments relating to identification of distinct performance obligations determination of transaction price of identified performance obligation the appropriateness of the basis used to measure revenue recognized over a period. Additionally the standard mandates robust disclosures in respect of revenue and periods over which the remaining performance obligations will be satisfied subsequent to the balance sheet date. • Evaluated the detailed analysis performed by management on revenue streams by selecting samples for the existing contracts with customers and considered revenue recognition policy in the current period in respect of those revenue streams;
• Evaluated the changes made to IT systems to reflect the changes required in revenue recognition as per the new accounting standard;
• Evaluated the cumulative effect adjustments as at 1 April 2018 for compliance with the new revenue standard; and
• Evaluated the appropriateness of the disclosures provided under the new revenue standard and assessed the completeness and mathematical accuracy of the relevant disclosures.

OTHER INFORMATION

6. The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the AnnualReport but does not include the financial statements and our auditor's reportthereon.

Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information we are required to report that fact. We have nothing to report in thisregard.

MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

7. The Company's Board of Directors is responsible for the mattersstated in section 134 (5) of the Companies Act 2013 (hereinafter referred to as "theAct") with respect to the preparation of these financial statements that give a trueand fair view of the state of affairs (financial position) profit & loss (financialperformance including other comprehensive income) cash flows and changes in equity of thecompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (‘Ind AS') specified under Section 133of the Act. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

8. In preparing the financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

9. The Board of Directors is also responsible for overseeing theCompany's financial reporting process.

AUDITORS' RESPONSIBILITY

10. Our objectives are to obtain reasonable assurance about whether thefinancial 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. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with Standards on Auditing will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these financial statements.

11. As part of an audit in accordance with Standards on Auditing weexercise professional judgment and maintain professional scepticism throughout the audit.We also:

• Identify and assess the risks of material misstatement of thefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. UnderSection 143(3)(i) of the Act we are also responsible for explaining our opinion onwhether the Company has adequate internal financial controls system in place and theoperating effectiveness of such controls.

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

• Conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the financial statements or if such disclosures areinadequate to modify our opinion. Our Conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

12. We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

13. We also provide those charged with governance with a statement thatwe have complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

14. From the matters communicated with those charged with governancewe determine those matters that were of most significance in the audit of the 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 publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

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 of the Act we give in the "Annexure A" a statement on thematters specified in paragraph 3 and 4 of the Order.

2. Further to our comments in Annexure A as required by Section143(3)of the Act we report that:

(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit;

(b) In our opinion proper books of account as required by law relatingto preparation of the aforesaid financial statements have been kept so far as it appearsfrom our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss including OtherComprehensive Income the Statement of Cash Flows and the Statement of Changes in Equitydealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid financial statements comply with theInd AS specified under Section 133 of the Act read with relevant rules issued thereunder;

(e) On the basis of the written representations received from thedirectors of the Company as on 31st March 2019 taken on record by the Board ofDirectors none of the directors is disqualified as on 31st March 2019 from beingappointed as a director in terms of Section 164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internalfinancial controls over financial reporting;

(g) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:

(i) The Company as detailed in Note No. 33 to the financialstatements has disclosed the impact of its pending litigation on its financial position;

(ii) The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses;

(iii) There were no amounts which were required to be transferred tothe Investor Education and Protection Fund by the Company.

For MOTILAL & ASSOCIATES
Chartered Accountants
(Firm Registration No.106584W)
CA. MUKESH P. MODY
Partner
Mumbai 29th May 2019 M.No.FCA 042975

ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT

The Annexure A referred to in our Independent Auditors' Report tothe members of the Company on the financial statements for the year ended on 31st March2019. We report that:

(1) In Respect of its fixed assets: (a) The company does not maintainfixed assets register showing full particulars including quantitative details andsituation of fixed assets.

(b) The company does not have defined plan for physically verificationof fixed assets at reasonable intervals. (c) All the title deeds of immovable propertiesare held in the name of the company.

(2) In respect of its inventories:

(a) As explained to us the inventory has been physically verified bythe management at reasonable intervals.

(b) On the basis of our examination of the inventory records in ouropinion the company is maintaining proper records of inventory. The discrepancies noticedon physical verification of inventory as compared to book records were not material.

(3) According to the information and explanation given to us thecompany has granted unsecured loan to Companies Firms or other parties covered in theregister maintained under section 189 of the Companies Act. However the terms &conditions of such loans are not prejudicial to the Company's interest. Receipt ofthe Principle amount and interest is regular and there are no overdue amounts for morethan 90 days.

(4) In Our opinion and according to the information and explanationsgiven to us during the course of the audit the company has not entered in any transactionthat attract the provisions of section 185 and 186 of the Companies Act 2013.

(5) According to the information and explanations given to us theCompany has not accepted any deposits from public during the year and hence reportingunder paragraph 3 (v) of the Order is not applicable to the Company.

(6) The maintenance of cost records has been specified by the CentralGovernment under sub-section (1) of Section 148 of the Act. We have broadly reviewed thecost records maintained by the Company and are of opinion that prima facie theprescribed cost records have been made and maintained. We have however not made adetailed examination of the cost records with a view to determine whether they areaccurate or complete.

(7) In respect of statutory dues:

(a) Undisputed statutory dues including provident fund employees'state insurance income-tax sales tax service tax Goods and Services Tax duty ofcustoms duty of excise value added tax cess and other material statutory dues asapplicable have generally been regularly deposited to the appropriate authorities.Further no undisputed amounts payable in respect thereof were outstanding at the year-endfor a period of more than six months from the date they became payable.

(b) The dues outstanding in respect of Custom Duty on account of anydispute is as follows:

Name of the Statute Nature of Dues Amounts involved Assessment Year to which the amount relates Forum where dispute is pending
The Customs Act1962 Custom Duty 34476246 01/11/2004 to 30/04/2008 The Commissioner of Customs (Appeals).

(8) According to the information and explanations given to us theCompany has not availed any loans from either financial institution or banks during theyear and hence reporting under paragraph 3 (viii) of the Order is not applicable to theCompany.

(9) According to the information and explanations given to us theCompany has not raised any money by way of initial public offer (including debtinstruments) or term loans during the year and hence reporting under paragraph 3 (ix) ofthe Order is not applicable to the Company.

(10) During the course of our examination of the books and records ofthe company carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us we have neither comeacross any instance of fraud on or by the company noticed or reported during the yearnor have we been informed of such case by the management.

(11) As per the information and explanations given by the managementthe managerial remuneration has been paid or provided in accordance with the provisions ofsection 197 read with Schedule V to the Companies Act.

(12) The Company is not a Nidhi Company and hence reporting underparagraph 3 (xii) of the Order is not applicable to the Company.

(13) In our opinion and according to the information and explanationsgiven to us all transactions with the related parties are in compliance with sections 177and 188 of Companies Act 2013 where applicable and the details have been disclosed inthe Financial Statements etc. as required by the applicable Ind AS;

(14) Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview and hence reporting under paragraph 3 (xiv) of the Order is not applicable to thecompany.

(15) In our opinion and according to the information and explanationsgiven to us the Company has not entered into any non-cash transactions with directors orpersons connected with him. Thus the provisions of section 192 of Companies Act 2013 arenot applicable to the company; (16) In our opinion and according to the information andexplanations given to us the Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934.

For MOTILAL & ASSOCIATES
Chartered Accountants
(Firm Registration No.106584W)
CA. MUKESH P. MODY
Partner
Mumbai 29th May 2019 M.No.FCA 042975

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THEFINANCIAL STATEMENTS OF NIRAV COMMERCIALS LIMITED

Report on the Internal Financial Controls over Financial Reportingunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

1. In conjunction with our audit of the financial statements of NIRAVCOMMERCIALS LIMITED (the ‘Company') as of and for the year ended 31 March 2019we have audited the internal financial controls over financial reporting of the Company asof that date.

Management's Responsibility for Internal Financial Controls

2. The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India. 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 safeguardingof its 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

3. Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India and theStandards on Auditing prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls. Those Standards and GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidenceabout the adequacy of the internal financial controls system over financial reporting andtheir operating effectiveness. Our audit of internal financial controls over financialreporting included obtaining an understanding of internal financial controls overfinancial reporting assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgment includingthe assessment of the risks of material misstatement of the financial statements whetherdue to fraud or error.

5. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

6. A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that: a. Pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; b. Provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and c. Provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

7. Because of the inherent limitations of internal financial controlsover financial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

8. In our opinion to the best of our Information and according to theexplanations given to us 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 31 2019 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 MOTILAL & ASSOCIATES
Chartered Accountants
(Firm Registration No.106584W)
CA. MUKESH P. MODY
Partner
Mumbai 29th May 2019 M.No.FCA 042975

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