NISHTHA FINANCE AND INVESTMENT (INDIA) LIMITED

ANNUAL REPORT

FOR THE YEAR

2018-19

CORPORATE INFORMATION

Registered Office Unit No. 2, Narnarayan Complex, Nr. Navrangpura Cross Road, Navrangpura, Ahmedabad 360009. Email id: nishtha.finvest@gmail.com Website: www.nishthafin.com (O) 079 – 40027017 CIN: L74110GJ1983PLC102253 Statutory Auditors: S. D .Mehta & Co. Chartered Accountants Ahmedabad Bankers: Yes Bank Limited

Corporate office Unit No. 2, Narnarayan Complex, Nr. Navrangpura Cross Road, Navrangpura, Ahmedabad 360009. Email id: nishtha.finvest@gmail.com Website: www.nishthafin.com (O) 079 – 40027017 Registrar and Share Transfer Agent Skyline Financial Services Private Limited 153A, 1st

Phase – I, New Delhi – 110020. Floor, Okhla Industrial Area,

(O) 011 – 26812682 (E) info@skylinerta.com (W) www.skylinerta.com

Board of Directors

Ashishbhai Jitendrabhai Joshi CEO & Managing Director Chunilal Vrujlal Chovatiya Director and Chief Financial Officer Chetankumar Haribhai Chovatiya Non Executive Director Miraben Chetankumar Chovatiya Non Executive Director Nikul Haribhai Chovatiya Non Executive Director Sanjaybhai Vrujlal Chovatiya Non Executive Director Bhargavkumar Jaysukhbhai Undhad Independent Director Piyush Rameshbhai Bhuva Independent Director Jayeshbhai Kantilal Paghdar Independent Director

Audit Committee

Bhargavkumar Jaysukhbhai Undhad Chairman Piyush Rameshbhai Bhuva Member Ashishbhai Jitendrabhai Joshi Member

Nomination Remuneration Committee

Jayeshbhai Kantilal Paghdar Chairman Chetankumar Haribhai Chovatiya Member Ashishbhai Jitendrabhai Joshi Member

Stakeholder Relationship Committee

Chetankumar Haribhai Chovatiya Chairman Bhargavkumar Jaysukhbhai Undhad Member Ashishbhai Jitendrabhai Joshi Member

INDEX

Sr. No Report Content

Page No.

1 Notice of Annual General Meeting

1

2 Director Report along with Annexure

13

3 Independent Auditors Report on Standalone Financial Statements

26

4 Standalone Financial Statements

34

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N O T I C E Notice is hereby given that 36th Annual General Meeting of members of Nishtha Finance and Investment (India) Limited (CIN: L74110GJ1983PLC102253) will be held on Monday, 30th

01.

September 2019 at 02:30 pm. at the Registered Office of the Company to transact the following businesses: ORDINARY BUSINESS:

To consider and if though fit, to pass, with or without modification the following resolution as an Ordinary Resolution:

To receive, consider and adopt the Financial Statements of the Company for the financial year ended on 31

Adoption of Audited Financial Statements:

st March 2019, including Audited Balance Sheet as at 31st

02.

March 2019 and the statement of Profit and Loss Account for the year ended on that date along with the reports of Auditors and Directors thereon.

To appoint a Director in place of Mr. Nikul Haribhai Chovatiya (DIN 07614740) whose term as Director is liable to determination by rotation and being eligible offers himself for reappointment.

Appointment of Director liable to retire by rotation:

03.

To appoint a Director in place of Mr. Sanjaybhai Vrujlal Chovatiya (DIN 07614745) whose term as Director is Liable to determination by rotation and being eligible offers himself for reappointment.

Appointment of Director liable to retire by rotation:

For Nishtha Finance and Investment (India)Ltd Sd/-

Ashish Jitendra Joshi Chairman

Date: 03.09.2019 Place: Ahmedabad Reg. office: A/202, 2nd

Floor, Narnarayan Complex, Nr. Navrangpura Bus Stop, Swastik Char Rasta, Navrangpura Ahmedabad, Gujarat-380009, India

NOTES:

1. A member entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and vote instead of him/her self and the proxy need not be the member of the company. A person can act as proxy on behalf members not exceeding 50 (fifty) and holding in aggregate not more than 10% (ten per cent) of share capital of the Company. However a member holding more than 10% (ten per cent) of share capital in company may appoint a single person as proxy and in such case proxy shall not act as proxy for any other member.

2. A form of proxy is herewith attached. The proxies in order to be effective must be submitted at the registered office of the company not less than 48 hours before the commencement of the meeting duly signed by the member. Proxies submitted on behalf of the Companies, Societies etc. must be supported by an appropriate resolution/ authority, as applicable. Members/ proxies/ authorized representative are requested to bring the attendance slip sent herewith, duly filled in for attending the meeting.

3. In case of joint holders, only a 1st

Joint holder will be permitted to vote.

4. The Register of Members of the company will remain closed from September 25, 2019 to September 30, 2019 (both days inclusive) in connection with ensuing Annual General Meeting for Financial Year 2018-19.

5. Members are requested to inform the company of

any change in their addresses immediately so as to enable the Company for any further communication at their correct addresses.

6. The Companies Act provides nomination facility to

the members. As a member of the Company you have an option to nominate any person as your nominee to whom you shares shall vest in case of unfortunate event of death. It is advisable to avail this facility especially by the members holding shares on single name. This nomination would avoid process of acquiring rights in shares through transmission. In case of joint holders, nomination shall be effective only on death of the all the joint holders. If the shares are held in Dematerialized form, the nomination form needs to be forwarded to your Depository Participant.

7. Trading in Equity Shares of the Company is

compulsorily in Dematerialized mode by all the investors. Members are therefore requested to convert their Physical Shareholding in Demat Form in case they wish to trade their Equity Shares.

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8. Pursuant to SEBI Circular dated 20th April 2018

vide circular no. SEBI/HO/MIRSD/DOP1/CIR/P/2018/73, all the shareholders of the Company holding shares in physical form are requested to provide and update their respective self certified Copies of PAN and Bank Statement of Active Bank Account to the Issuer Company and / or Registrar and Share Transfer Agent of the Company.

9. Pursuant to SEBI Circular dated 20th April 2018

vide circular no. SEBI/HO/MIRSD/DOP1/CIR/P/2018/73, the Shareholder may please be informed that w. e. f. 31st

March 2019, the shareholders holding shares in Physical form are unable to Sale/transfer their shares in physical form. However, transmission and transposition of Shares shall be permitted in Physical Form. Hence Shareholders are again requested to get their shares demated. For any help / assistance for Demat of shares, shareholder may approach the Registrar and Share Transfer Agent of the Company or the Secretarial Department of the Company.

10. Members holding shares in physical form in multiple folios on the same name and in the same order are requested to consolidate all their folios. For this purpose, application may be submitted to M/s Skyline Financial Services Private Limited.

11. Members seeking any information or clarification

on the accounts are requested to send written quarries to the Company; at least 10 days before the meeting to unable the management keep the required information available at meeting.

12. Annual Report for the financial year 2018-19 of the

company has been uploaded on website of the Company http://www.nishthafin.com.

13. All documents referred to in the accompanying

notice and the explanatory statement shall be open for inspection at the registered office of the Company during normal business hours up to the date of and during the Annual general Meeting.

14. Electronic copy of the Notice along with Annual

Report including remote E Voting instructions, Attendance Slips, Proxy Form is being sent to all the members whose emails id are registered with the Company / Depository Participants for communication purpose. For members who have not registered their email ids, physical copy of notice along with Annual Report including Remote E Voting instructions, Attendance Slips, Proxy Form is sent by permitted mode of dispatch.

15. For protection of environment and to conserve natural resources, members are requested to register their emails, with Company / RTA or Depository Participant to enable company to send communication including Annual Report, notices, circulars etc. electronically.

16. Voting rights shall be reckoned on the paid up

value of shares registered in the name of the Member / beneficial owner as on the cutoff date i. e. Friday, 20th

September, 2019.

17. In terms of section 108 of Companies Act 2013 read with Companies (Management and Administration) Rules 2014, as amended from time and time and as per Regulation 44 of SEBI (Listing Obligation and Disclosure Requirements) Regulations 2015, the Company is pleased to provide the remote e voting facility through Central Depository Services Limited (CDSL) to its members holding shares in physical or dematerialized form, as on cutoff date to exercise their right to vote by electronic means on any or all of the business specified in the accompanying notice. This is to clarify that it is not mandatory for a member to vote using the E voting facility and a member may avail the facility at his / her discretion, subject to compliance with the instruction for Remote E-Voting. Further in case of Members who are entitled to vote, amongst members present in person at the meeting, but have not exercised right to vote by electronics means, the Chairman of the Company shall allow voting by way of poll in terms of Rule 20(4)(xi) of the said rules for the business specified in the accompanying notice. It is specifically clarified that members who have exercised their right to vote by remote electronics means, may be allowed to participate in Annual General Meeting but shall not be eligible to vote by way of poll at the meeting as per proviso to Rule 20(4)(vii). The Information with respect to voting process and other instructions regarding remote e-voting are detailed in note no. 23.

18. Shri Viral Ranpura, Company Secretary Ahmedabad (Mem. No. 28496) has been appointed as Scrutinizer to scrutinize voting and remote e voting process in fair and transparent manner.

19. The Scrutinizer shall within a period not exceeding 3 (three) working days from the conclusion of the Annual General Meeting make a Consolidated Scrutinizer’s Report of the votes cast in favour or against, if any, and submit the same to the Chairman of the meeting or a person so authorized by him in writing, who shall countersign the same.

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20. The results shall be declared forthwith by the Chairman or a person so authorized by him in writing on receipt of report from the Scrutinizer. The Results declared along with Scrutinizer’s Report shall be placed on the Company’s website http://www.nishthafin.com and on the website of CDSL.

21. The resolutions shall be deemed to be passed on

the date of the Annual General Meeting, subject to the same being passed with requisite majority.

22. Voting process and other instructions regarding

Remote E Voting:

i. The Remote e-voting period shall commence Thursday, 27th September 2019 at 09.00 am and shall end on Sunday, 29th September 2019 at 05.00 pm. During this period, Members of the Company, holding shares either in physical form or in dematerialized form, as on the cut-off date Friday, the 20th

ii. Shareholders who have already voted prior to the meeting date would not be entitled to vote at the meeting venue.

September 2019, may cast their votes electronically. The e-voting module shall be disabled for voting thereafter.

iii. The shareholders should log on to the e-voting website www.evotingindia.com.

iv. Click on Shareholders / Members. v. Now Enter your User ID

A. For CDSL: 16 digits beneficiary ID, B. For NSDL: 8 Character DP ID followed by 8 Digits Client ID, C. Members holding shares in Physical Form should enter Folio Number registered with The Company

vi. Next enter the Image Verification as displayed and Click on Login.

vii. If you are holding shares in demat form and had logged on to www.evotingindia.com and voted on an earlier voting of any company, then your existing password is to be used.

viii. If you are a first time user follow the steps given below:

For Members holding shares in Demat Form and Physical Form PAN Enter your 10 digit alpha-

numeric PAN issued by Income Tax Department (Applicable for both demat shareholders as well as physical shareholders) - Members who have not updated their PAN with the Company/Depository Participant are requested to0020use the first two letters of their name and the 8 digits of the sequence

number in the PAN field. - In case the sequence number is less than 8 digits enter the applicable number of 0’s before the number after the first two characters of the name in CAPITAL letters. Eg. If your name is Ramesh Kumar with sequence number 1 then enter RA00000001 in the PAN field.

Dividend Bank details or Date of Birth (DOB)

Enter the Dividend Bank Details or Date of Birth (in dd/mm/yyyy format) as recorded in your demat account or in the company records in order to login. If both the details are not recorded with the depository or company please enter the member id / folio number in the Dividend Bank details field as mentioned in instruction (v).

ix. After entering these details appropriately, click

on “SUBMIT” tab. x. Members holding shares in physical form will

then directly reach the Company selection screen. However, members holding shares in demat form will now reach ‘Password Creation’ menu wherein they are required to mandatorily enter their login password in the new password field. Kindly note that this password is to be also used by the demat holders for voting for resolutions of any other company on which they are eligible to vote, provided that company opts for e-voting through CDSL platform. It is strongly recommended not to share your password with any other person and take utmost care to keep your password confidential.

xi. For Members holding shares in physical form, the details can be used only for e-voting on the resolutions contained in this Notice.

xii. Click on the EVSN 190906079 of “Nishtha Finance and Investment India Limited” on which you choose to vote.

xiii. On the voting page, you will see “RESOLUTION DESCRIPTION” and against the same the option “YES/NO” for voting. Select the option YES or NO as desired. The option YES implies that you assent to the Resolution and option NO implies that you dissent to the Resolution.

xiv. Click on the “RESOLUTIONS FILE LINK” if you wish to view the entire Resolution details.

xv. After selecting the resolution you have decided to vote on, click on “SUBMIT”. A confirmation box will be displayed. If you wish to confirm your vote, click on “OK”, else to change your

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vote, click on “CANCEL” and accordingly modify your vote.

xvi. Once you “CONFIRM” your vote on the resolution, you will not be allowed to modify your vote.

xvii. You can also take a print of the votes cast by clicking on “Click here to print” option on the Voting page.

xviii. If a demat account holder has forgotten the changed login password then Enter the User ID and the image verification code and click on Forgot Password & enter the details as prompted by the system.

xix. Shareholders can also cast their vote using CDSL’s mobile app m-Voting available for android based mobiles. The m-Voting app can be downloaded from Google Play Store. iPhone and Windows phone users can download the app from the App Store and the Windows Phone Store respectively. Please follow the instructions as prompted by the mobile app while voting on your mobile.

xx. Note for Non – Individual Shareholders and

Custodians

Non-Individual shareholders (i.e. other than Individuals, HUF, NRI etc.) and Custodian are required to log on to www.evotingindia.com and register themselves as Corporate. A scanned copy of the Registration Form bearing the stamp and sign of the entity should be emailed to helpdesk.evoting@cdslindia.com. After receiving the login details a Compliance User should be created using the admin login and password. The Compliance User would be able to link the account(s) for which they wish to vote on. The list of accounts linked in the login should be mailed to helpdesk.evoting@cdslindia.com and on approval of the accounts they would be able to cast their vote. A scanned copy of the Board Resolution and Power of Attorney (POA) which they have issued in favour of the Custodian, if any, should be uploaded in PDF format in the system for the scrutinizer to verify the same.

xxi. In case you have any queries or issues regarding e-voting, you may refer the Frequently Asked Questions (“FAQs”) and e-voting manual available at www.evotingindia.com, under help section or write an email to helpdesk.evoting@cdslindia.com.

For Nishtha Finance and Investment (India)Ltd

Sd/- Ashish Jitendra Joshi

Chairman Date: 03.09.2019 Place: Ahmedabad

Reg. office: A/202, 2nd

Floor, Narnarayan Complex, Nr. Navrangpura Bus Stop, Swastik Char Rasta,

Navrangpura Ahmedabad, Gujarat-380009, India

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Nishtha Finance and Investment (India) Limited A/202, 2nd

Email id:

Floor, Narnarayan Complex, Nr. Navrangpura Bus Stop, Swastik Char Rasta, Navrangpura Ahmedabad, Gujarat-380009, India

nishtha.finvest@gmail.com Website: http://www.nishthafin.com CIN: L74110GJ1983PLC102253

36th Annual General Meeting – 30th

DP ID:

September, 2019

ATTENDENCE SLIP

This attendance slip duly filled in is to be handed over at the entrance of the meeting hall.

For Demat Shares For physical Shares

Regd. Folio No:

Client ID: Nos. of shares held:

Full Name of the Member attending: ______________________________________________________________________________ Name of the proxy: _________________________________________________________________________________________________ (To be filled in if proxy has been duly deposited with the Company)

I, hereby record my presence at the 36th Annual General Meeting of the company to be held on Monday, 30th September 2019 at 02.30 pm at registered office of the Company. _____________________________________________

(Members’ / Proxy’s signature)

(To be signed at the time of handing over this slip)

*Persons attending the Annual General Meeting are required to bring their Annual Report.

NOTES: (1) Member/ Proxy holder wishing to attend the meeting must bring the Attendance Slip to the meeting and hand it over at the entrance duly signed. (2) Member/ Proxy holder desiring to attend the meeting should bring his/her copy of the Notice and Annual Report for reference at the meeting

EVSN (Electronic Voting Sequence Number)

ELECTRONIC VOTING PARTICULARS

User id *PAN

190906079 Use your DP ID/ Client ID/ Folio No Use your PAN *Members who have not updated their PAN with the Company/ Depository Participant shall use e-voting code printed on the address label on the envelope in the PAN field. For those having email IDs the e-voting code is sent by email.

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Nishtha Finance and Investment (India) Limited A/202, 2nd

Email id:

Floor, Narnarayan Complex, Nr. Navrangpura Bus Stop, Swastik Char Rasta, Navrangpura Ahmedabad, Gujarat-380009, India

nishtha.finvest@gmail.com Website: http://www.nishthafin.com CIN: L74110GJ1983PLC102253

36th Annual General Meeting – 30th

Name:

September, 2019

PROXY FORM

[Pursuant to section 105 (6) of the Companies Act, 2013 and rule 19 (3) of the Companies (Management and Administration) Rules, 2014]

Name of the member (s): ______________________________________________________________________________________ Registered address: ______________________________________________________________________________________ E-mail Id: ______________________________________________________________________________________ Number of shares held ______________________________Folio No. / Client Id: ________________________________ I/ We, being the member, hold _____________ number of Equity shares of Nishtha Finance and Investment (India) Limited, hereby appoint:

Email id:

Address: Signature:

Or failing him / her

Name: Email id:

Address: Signature:

Or failing him / her

Name: Email id:

Address: Signature:

as my/ our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the 36th Annual General Meeting of the Company, to be held on the Monday, 30th September 2019 at 02.30 pm at Registered office of the Company and at any adjournment thereof in respect of such resolutions as are indicated in the notice of AGM dated 03th September 2019.

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DIRECTORS’ REPORT

Dear Members, Your Directors herewith present 36th Annual Report together with the Audited Statements of accounts for the Financial Year ended on 31st

March, 2019.

During the year under review, the Company has shown notable performance. The extracts of financial results 2018-19 are as under:

SUMMARY OF FINANCIAL RESULTS:

(INR in Lakhs) Particulars Current

Year 18-19

Rs.

Previous Year

17-18 Rs.

Total Income 83.86 83.20 Financial Expenses 2.35 - Depreciation - - Profit / (Loss) Before Taxation 17.16 13.05 Provision for Income Tax 5.06 3.40 Provision for Deferred Tax - - Profit after Taxation 12.09 9.64 Prior Period Adjustment - - Transfer to Special Reserve - - Surplus brought forward 27.11 17.46 Balance Carried to Balance Sheet

39.20 27.11

During the year under review, your Company has earned revenue from operations amounting to Rs. 83.83 lakhs as compared to Rs. 83.20 lakhs in the previous financial year and registered the net profit after tax for the financial year 2018-19 is Rs. 12.09 lakhs as compared to Rs. 9.64 Lacs for FY 2017 18.

STATE OF COMPANY AFFAIRS:

The Company works as Channel Partner in Power Projects with various power generation Company. During the year 2018 19, Company received Commission income from Vadodara based 135 KV power plant. The Directors of the Company are hopeful to shake the hands with power generation companies in the years to come. DIVIDENDCompany has managed to earn notable profit during the year. However considering the future requirements for funds, Company wish to conserve the funds and hence do not recommend any Dividend.

:

RESERVES:

The Board of Directors do not propose to transfer any amount to Reserves Account.

As stipulated in Schedule V of SEBI (Listing Obligation and Disclosure Requirements) Regulations 2015, the Management Discussion and Analysis Report forms part of this Annual Report as Annexure I.

MANAGEMENT DISCUSSION AND ANALYSIS

During the year, Company has not accepted any Deposits or long term borrowings from any person except unsecured Inter Corporate Loans and loan from Directors.

DEPOSITS AND LONG TERM BORROWINGS:

Earlier, On 16th

The present Directors are unable to opine as to nature of such unauthorized financial transaction.

March 2017 (FY2016 17), the previous Promoters of the Company, who were in management and control of the Company, even after their cessation as Directors the Company, have made unauthorized use of Bank Account opened and maintained by them with Axis Bank, without the knowledge and intimation to the present Management and Directors of the Company and hence the same is not accounted for by the present Management.

Hence, with regard to any such unauthorized financial transactions of any nature, which have taken place to and from the said axis bank account maintained and operated by the old management of the Company, the present Directors are not responsible in any way to any other person.

During the year, Company has entered in to related party transactions pursuant to provisions of Section 188 of Companies Act 2013. In that regard, disclosures under section 134(3) of Companies Act 2013 read with Rule 8(2) of the Company (Accounts) Rules 2014 is given in prescribed Form AOC 2 as Annexure II to this Directors Report. All the transactions have been made arm’s length price.

PARTICULARS OF CONTRACTS OR ARRANGEMENT WITH RELATED PARTIES:

The policy on Related Party Transactions as approved by the Board is available on the website of the Company and can be accessed through the web link http://www.nishthafin.com policies. All contracts/arrangements/transactions entered by the Company during the year under review with the related parties were in the ordinary course of business and on an arm’s length basis.

In terms of Section 134(3) of the Companies Act, 2013, in relation to the Financial Statements for FY 2018-19, the Board of Directors states that:

DIRECTORS’ RESPONSIBILITY STATEMENT:

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a) in preparation of the annual accounts, the applicable accounting standards have been followed and there are no material departures;

b) the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as on 31st March, 2019 and of the profits for the year ended 31st

March, 2019;

c) the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d) the annual accounts have been prepared on a going concern basis;

e) the Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively; and

f) the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

Adequate internal financial controls have been laid down by the Company with reference its Financial statements and to safeguard and protect its assets as well as to improve the overall productivity of its operations. The management is committed to ensure an effective internal control environment, commensurate with the size and complexity of the business, which provides an assurance on compliance with internal policies, applicable laws, regulations and protection of resources and assets.

INTERNAL FINANCIAL CONTROLS:

Company does not have any subsidiary companies. Company has not made any investment in Joint Venture. Company does not have any associate Company.

SUBSIDIARIES, JOINT VENTURE AND ASSOCIATE COMPANY:

At present the Company does not carry on any manufacturing operations. However the management

of the Company accords the highest priority to health, environment and safety. The Company takes at most care for the employees and ensures compliance with the applicable rules and regulation applicable to the Company.

ENVIRONMENT, HEALTH AND SAFETY (EHS)

Regulation 27 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 is made applicable to only those companies whose paid up equity share capital exceeds Rupees Ten Crore or Net Worth exceeds Rupees Twenty Five Crores, as on the last day of the previous financial year. Hence Regulation 27 of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 is not applicable to the Company.

CORPORATE GOVERNANCE

The provisions of Companies Act 2013 and rules framed there under with regard to Corporate Social Responsibility do not apply to the Company and hence no disclosure have made in that regard.

CORPORATE SOCIAL RESPONSIBILITY:

At present the Board of Directors consists of following Directors:

DIRECTORS AND KEY MANAGARIAL PERSONNEL:

Sr. No

Name of Director Designation

1 Ashish Jitendra Joshi Managing Director & CEO

2 Chetankumar Haribhai Chovatiya

Director

3 Chunilal Vrajlal Chovatiya

Director & CFO

4 Miraben Chetankumar Chovatiya

Non Executive Non Independent Director

5 Nikul Haribhai Chovatiya

Non Executive Non Independent Director

6 Sanjaybhai Vrujlal Chovatiya

Non Executive Non Independent Director

7 Bhargavkumar Undhad

Non Executive Independent Director

8 Piyush Bhuva Non Executive Independent Director

9 Jayeshbhai Paghdar Non Executive Independent Director

* Mr. Jitendra Joshi resigned from the Board w. e. f. 01.08.2018. * Mr. Rakesh Savani resigned from the Board w. e f. 05.09.2018

During the year, no Director was appointed on the Board. There are no Directors on the Board whose term expires at this ensuing Annual General Meeting

APPOINTMENT AND RESIGNATION:

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and hence the Board does not recommend any Reappointment of Directors.

Mr. Nikul Chovatiya and Mr. Sanjay Chovatiya, are the Directors liable to retire by rotation and as eligible, they have offered themselves for reappointment.

DIRECTORS RETIRING BY ROTATION:

Brief profile of Directors being reappointed pursuant to Regulation 36(3) of SEBI (LODR) Regulation 2015:

Name Nikul Chovatiya Sanjay Chovatiya

Age 38 38

Brief Resume Nikul Chovatiya is Science Graduate with sound technical experience of 5 years in Power Sector,

Sanjay Chovatiya Science Graduate with sound technical experience of 5 years in Power Sector,

Date of First Appointment

06.10.2016 06.10.2016

Directorship held in other Companies

Addin Power Limited

Nikins Renewable Energy Pvt. Ltd

NIL

Membership or Chairmanship of other Companies

NIL. NIL

Inter-se Relationship with Director

Brother of existing Director Chetankumar Chovatiya.

Brother of existing Director Chunilal Vrujlal Chovatiya,

Shareholding in Company

60 Shares NIL

Following Directors have resigned from the Board during the year.

RESIGNATION:

Sr. No

Name DOR Reason for Resignation

1 Jitendra Joshi 01.08.2018 Illness

2 Rakesh Savani 05.09.2018 Pre occupation.

Pursuant to provisions of section 149(6) of Companies Act 2013, the Company has received declaration from Independent Directors confirming that they meet the criteria of independence as prescribed under the Act and Clause 49 of erstwhile Listing Agreement, now SEBI (Listing Obligation and Disclosure Requirements) Regulations 2015.

DECLARATION BY INDEPENDENT DIRECTORS:

In the opinion of the Board, the Independent Directors of the Company fulfill the conditions specified in the Act and the Listing Regulations and are independent of the Management of the Company. POLICY ON DIRECTORS’ APPOINTMENT AND REMUNERATION

:

Pursuant to provisions of section 178 read with 134(3)(e) of Companies Act 2013, The Nomination and Remuneration Committee (NRC) has approved the policy on “Directors Appointment and their Remuneration.”. The policy is available on the website of the Company and can be accessed at http://www.nishthafin.com. The salient features of policy are summarized hereunder:

- The Committee shall identify and ascertain the integrity, qualification, expertise and experience of the person for appointment as Director, KMP or at Senior Management level and recommend his / her appointment, as per Company’s Policy.

- A person should possess adequate qualification, expertise and experience for the position he / she is considered for appointment. The Committee has authority to decide whether qualification, expertise and experience possessed by a person is sufficient / satisfactory for the position.

- The Company shall not appoint or continue the employment of any person as Whole-time Director who has attained the age of seventy five years. Provided that the term of the person holding this position may be extended beyond the age of seventy years with the approval of shareholders by passing a special resolution.

- The Committee shall carry out evaluation of performance of Director, KMP and Senior Management Personnel yearly or at such intervals as may be considered necessary.

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- The Remuneration/ Commission etc. to be

paid to Managing Director / Whole-time Directors, etc. shall be governed as per provisions of the Companies Act, 2013 and rules made there under or any other enactment for the time being in force and the approvals obtained from the Members of the Company.

- The Non-Executive / Independent Directors may receive sitting fees and such other remuneration as permissible under the provisions of Companies Act, 2013. The amount of sitting fees shall be such as may be recommended by the Nomination and Remuneration Committee and approved by the Board of Directors.

The Board of Directors has carried out an annual evaluation of its own performance and individual directors pursuant to the provisions of the Companies Act, 2013. The performance of the Board was evaluated by the Board on the basis of the criteria such as the Board composition and structure, effectiveness of Board process, information and functioning etc. The Board and Nomination and Remuneration Committee reviewed the performance of the individual directors on the basis of the criteria such as the contribution of individual director to the Board and committee meetings like preparedness on the issue to be discuss meaningful and constructive contribution and inputs in meetings, etc. In a separate meeting of independent directors, performance of non-independent director, performance of the Board as a whole and performance of Chairman was evaluated.

MANNER OF EVALUATION OF BOARD, ITS COMMITTEES AND INDIVIDUAL DIRECTORS:

The Board meets at regular interval with gap between two meetings not exceeding 120 days. Additional meetings are held as and when necessary.

NUMBER OF MEETINGS OF THE BOARD:

During the year under review, the Board met Ten times respectively on 23.05.2018, 30.05.2018, 16.06.2018, 14.08.2018, 24.08.2018, 04.09.2018, 05.11.2018, 22.11.2018, 12.01.2019, 13.02.2019.

During the year, none of the Directors of the Company was paid any remuneration. Hence disclosure under provisions of Section 197(12) of the Companies Act, 2013 read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 have not been provided.

PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES:

AUDITORS:

S. D Mehta & Co, Chartered Accountants, Ahmedabad (FRN 137193W) were appointed as statutory auditors of the Company for the term of 5 years to hold the office till the conclusion of the 39

STATUTORY AUDITORS:

th

Annual General Meeting of the Company.

The Auditors’ report for financial year 2018 19 has been issued with modified opinion by the statutory auditors as under:

“We are unable to opine the nature of transactions and true and fair view of transactions which have taken place in the above bank account and not recorded in the books of accounts of the company by the present management. As such we are unable to express our opinion on true and fair view of banking transaction that have taken place in the above account during the year under report.”

On 16

Management Comment against Auditor observation:

th

The present Directors are unable to opine as to nature of such unauthorized financial transaction.

March 2017 (FY2016 17), the previous Promoters of the Company, who were in management and control of the Company, even after their cessation as Directors the Company, have made unauthorized use of Bank Account opened and maintained by them with Axis Bank, without the knowledge and intimation to the present Management and Directors of the Company and hence the same is not accounted for by the present Management.

Hence, with regard to any such unauthorized financial transactions of any nature, which have taken place to and from the said axis bank account maintained and operated by the old management of the Company, the present Directors are not responsible in any way to any other person. The present Management of the Company has already initiated legal actions against the Wrong doers by serving them legal notice on 16th

October 2017 and also against the Axis Bank Limited for allowing such unauthorized use of Bank Account, even after serving notice of Bank Account closure in advance.

Pursuant to Section 204 of the Companies Act, 2013 read with Rules thereof, the Board of Directors has appointed Mr. Viral Ranpura, Company Secretary, as Secretarial Auditors of the Company for FY 2018 19.

SECRETARIAL AUDITORS:

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A Secretarial Audit Report for FY 2018 19 is annexed herewith as Annexure III. There are no adverse observations in the Secretarial Audit Report which call for explanation except as under:

The Company is not required to maintain Cost Records under Section 148 of Companies Act 2013.

COST AUDITOR

SECRETARIAL STANDARDS

The Company has complied with the applicable Secretarial Standards as amended from time to time.

A. COMMITTEE COMPOSITION;

During the year, the Board reviewed the decision taken by it regarding the role of Risk Management being carried out by the Audit Committee and after detailed deliberation it was decided that the Audit Committee of the Board shall continue to play the role of Risk Management Committee and be called as Audit and Risk Management Committee unless otherwise decided by the Board.

COMPOSITION OF AUDIT COMMITTEE:

The Audit and Risk Management Committee as on 31.03.2019 is composed of three Directors.

Name of Director Category of

Directorship Bhargavkumar Undhad Chairman-ID Piyush Bhuva Member – ID Ashishbhai Joshi Member – MD

B.

The Remuneration and Nomination Committee as on 31.03.2019 is composed of three Directors.

COMPOSITION OF REMUNERATION AND NOMINATION COMMITTEE:

Name of Director Category of

Directorship Jayesh Paghdar Chairman – ID Chetankumar Chovatiya Member – ID Ashishbhai Joshi Member – MD

C.

The Investor and Shareholder Grievances Committee as on 31.03.2018 is composed of three Directors.

COMPOSITION OF INVESTOR AND SHAREHOLDER GRIEVANCES COMMITTEE:

Name of Director Category of

Directorship Chetankumar Chovatiya Chairman–

Director Bhargavkumar Undhad Member – ID

Ashishbhai Joshi Member – MD

The provisions of Regulation 22 of SEBI (LODR) Regulations 2015 are not applicable to the Company. However Company has established whistle Blower Policy as matter of Good Governance.

VIGIL MECHANISM:

The Company has a Risk Management Policy that defines the policies, lays out the strategies and methodology to decide on the risk taking ability of the organization. The Company constantly reviews its exposure to various types of risk, whether it be regulatory, operational, environmental, financial or political. The Company has in place adequate systems to ensure compliance with all regulatory and statutory matters reviews the same on a periodic basis and takes appropriate corrective action when

RISK MANAGEMENT POLICY:

necessary.

During the financial year 2018 19, Company has not undertaken any manufacturing operations. Company has neither earned nor spent anything in foreign currency. Hence no disclosure is required under this head pursuant to Companies (Accounts) Rules 2014.

CONSERVATION OF ENERGY, TECHNOLOGY ABSOPTION, FOREIGN EXCHANGE EARNIGS AND OUTGO:

The extract of the Annual Return in prescribed Form MGT-9 is annexed as Annexure IV to this Directors’ Report and forms part of Annual Report and the same is also made available on the website of the Company

THE EXTRACTS OF ANNUAL RETURN:

http://www.nishthafin.com.

During the year, there is no Change in the Share Capital of the Company.

SHARE CAPITAL

The Board of Directors and Members of the Company in their respective meeting have accorded necessary approval for issue of Convertible Warrants to Promoter and Non Promoters. However the same have not been executed during the year.

During the year under review, there is no change in the nature of business of the Company.

CHANGE IN NATURE OF BUSINESS

During the year, there is no change in the management of the Company.

CHANGE OF MANAGEMENT

PATICULARS OF LOANS GIVEN, INVESTMENT MADE, GUARANTEES GIVEN AND SECURITY

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Particulars of loans given, investments made, and guarantees given are provided in the financial statements and forms part of Annual Report for FY 2018 19.

PROVIDED

There are no material changes and commitment, affecting the financial position of Company which has occurred between the end of financial year of the Company to which the financial statements relate and the date of this report.

MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL POSITION OF THE COMPANY WHICH HAVE OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR TO WHICH THE FINANCIAL STATEMENTS RELATES AND THE DATE OF THE REPORT:

The Company is not required to transfer any amount to the Investor Education and Protection Fund (IEPF) established by the Central Government pursuant to the provision of Section 125 (e) of the Companies Act, 2013 as there is no amount unclaimed for a period of 7 years from the date it became due for payment.

TRANSFER OF FUNDS TO INVESTOR EDUCATION AND PROTECTION FUND:

There were no significant and material orders issued against the Company by any regulating authority or court or tribunal that could affect the going concern status and Company’s operation in future.

DETAILS OF MATERIAL AND SIGNIFICANT ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS:

DISCLOSURE AS PER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION,

The Company has zero tolerance towards sexual harassment at workplace and during the year under review, your Board has constituted an Internal Complaints Committee to consider and redress complaints of sexual harassment & also adopted a policy on prevention, prohibition and redressal of sexual harassment at workplace in line with the provisions of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the rules framed there under.

PROHIBITION AND REDRESSAL) ACT, 2013:

During the financial year 2018-19, the Company has not received any complaints on sexual harassment.

Your Directors wish to thank all stakeholders, employees and business partners, Company’s bankers and business associates for their continued support and valuable cooperation. The Directors also wish to

express their gratitude to investors for the faith that they continue to repose in the Company.

APPRECIATION AND ACKNOWLEDGMENT

For and on behalf of the Board of Directors Ashish Joshi Chunilal Chovatiya Managing Director Director Din: 06894408 DIN: 07549602 Place: Ahmedabad Date: 03.09.2018

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Annexure to Director’s Report - Annexure I Management Discussion And Analysis Report

Economy overview: During the Financial Year 2017-18, India has emerged as the fastest growing major economy in the world as per the Central Statistics Organisation (CSO) and International Monetary Fund (IMF) and it is expected to be one of the top three economic powers of the world over the next 10-15 years, backed by its strong democracy and partnerships. India’s GDP is estimated to have increased 6.6 per cent in 2017-18 and is expected to grow 7.3 per cent in 2018-19. India has the fifth largest power generation capacity in the world. The country ranks third globally in terms of electricity production. In May 2018, India ranked 4th in the Asia Pacific region out of 25 nations on an index that measures their overall power. Electricity production in India reached 1,201.543 Billion Units (BU) during FY18.

Renewable energy is fast emerging as a major source of power in India. The Government of India has set a target to achieve 175 GW installed capacity of renewable energy by FY22. Wind energy is the largest source of renewable energy in India, accounting for 49.33 per cent of total installed capacity (69.02 GW). There are plans to double wind power generation capacity to 60 GW by 2022. India has also raised the solar power generation capacity addition target by five times to 100 GW by 2022.

The Union Government of India is preparing a 'rent a roof' policy for supporting its target of generating 40 gigawatts (GW) of power through solar rooftop projects by 2022. All the states and union territories of India are on board to fulfil the Government of India's vision of ensuring 24x7 affordable and quality power for all by March 2019. Over 280 million LED bulbs were distributed to consumers in India by Energy Efficiency Services Limited (EESL) under Unnati Jyoti by Affordable LEDs for All (UJALA).

The Government of India has been supportive to growth in the power sector. The Cabinet Committee on Economic Affairs (CCEA) has approved commercial coal mining for private sector and the methodology of allocating coal mines via auction and allotment, thereby prioritising transparency, ease of doing business and ensuring the use of natural resources for national development. The Government of India is planning to invite bids for the largest solar tender in the world, for installing 20 gigawatts (GW) of solar power capacity, to give a boost to manufacturing of solar power equipment in India.

- With electricity production of 1,201.543 BU in India in FY18, the country witnessed growth of around 55.72 per cent over the previous fiscal year.

Industry Structure:

- Over FY10–FY18, electricity production in India grew at a CAGR of 5.69 per cent.

- In March 2017, the Power Ministry has launched an application named - GARV-II, to provide real time data related to rural electrification regarding all un-electrified villages in India. A total of 17,164 villages out of 18,452 un-electrified villages in India have been electrified up to March 2018 as part of the target to electrify all villages by May 1, 2018.

1. Clearer political signals about the priorities and objectives can create transparent regulatory framework for efficient long-term energy supply.

Opportunity and Threats: Opportunity:

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2. Utilization of available energy saving potential will reduce the growth rate of energy demand and generating capacities;

3. Economically justified larger contribution of available indigenous and renewable energy resources will reduce dependence on imported fuel.

4. Existing infrastructure and experience are supportive for construction of new nuclear power plant.

5. Timely introduction of new energy sources and technologies.

6. Potential interest of market participants to develop and invest in the electricity market;

7. Improve distribution infrastructure through central schemes.

8. Renovation, modernization, up-rating and life extension of old thermal and hydro power plants.

Threats

1. Insufficient interconnection capacities with central and state electricity markets.

2. Insufficient technical quality of transmission and distribution systems.

3. Weak and non-transparent price signals for investments into new generation capacities.

4. Lack of optimum utilization of the existing generation capacity.

5. Inadequate inter-regional transmission links. 6. Huge T&D losses (theft) and skewed tariff

structure, making SEBs unviable. 7. Inadequate and ageing sub-transmission &

distribution network leading to power cuts and local failures/faults

8. Slow pace of rural electrification. 9. Lack of necessary infrastructure to transport and

store fuel, high cost risk involved in transporting fuel

Segment / Product wise Performance: Company has stepped in the Business of Power Projects. During the FY 2018 19, Company has initiated its activities by way of Power Project consulting and intermediation for consideration of Commission. Company has entered into Channel Partner Agreement with Addin Power Limited being emerging Power generation Company in the State of Gujarat.

In the years to come, Management of the Company is also hopeful to shake the hands with other power

generation companies also to expand its operations.

Outlook Addin Power Limited of which the Company is channel partner, is likely to set up a huge power plant in the state of Gujarat. The Power plant is likely to commence its operations by 2020. In such case, Company would have a big opportunity of generating revenue.

Risks and concerns:

The present Business activity of the Company is based on power generation companies. The power generation projects are Capital intensive. Lack of capital investment or fund sources for power generation Company is the major concern especially when the country is passing through major economic downfall.

Company wish to expand power generation business. However blocked funds of the Company in the form of loans advanced by earlier management is a major concern. Company is awaiting recovery of such loans advanced earlier for expanding its business Internal Control System and their adequacy: The Company’s Internal Control System is commensurate with its size and its nature of operations. It has well documented system of adequate Internal Controls aimed at achieving efficiency in operations, optimum utilisation of resources and compliance with all applicable laws and regulations. Independent firms of Chartered Accountants, out of big 4, are appointed as Internal Auditors of the Company. The key observations and recommendations following such internal audit and follow up actions for improvement of the business operations and their implementation are reviewed and monitored by the Audit and Risk Management Committee on a quarterly basis. Financial performance with respect to perational performance. Company has stepped in to the new line of business during 2017. As of now, Company has not invested any amount in the form investment. However, at the initial stage, Company has entered into Channel Partner Agreement with power generation Companies. During the year 2018 19, Company has received aggregate revenue of Rs. 15.04 lakhs in the form of channel partner remuneration. The Net Profit of the Company also increased by almost 25%.

Cautionary Statement: Certain statements in the Management Discussion and Analysis describing the Company’s analysis and interpretations are forward-looking. Actual results may vary from those expressed or implied. The Company assumes no responsibility to publicly amend, modify or revise any such statements on the basis of subsequent developments, information or events.

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Annexure to Director’s Report - Annexure II Particulars of Contracts or Arrangement with Related Parties

Form No. AOC 2 (Pursuant to clause (h) of Sub-Section (3) of Section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014)

Regulation 34(3) Read with Para A of Schedule V of SEBI (LODR) Regulations 2015. Disclosure of particulars of contracts / arrangements entered into by the company with related parties referred to in Sub-Section (1) of Section 188 of the

Companies Act, 2013 under third proviso thereto at

Sr.

Arm’s Length basis During the F.Y. 2018-19, Company has entered into following related party transactions at Arm’s length basis:

Name of Related Party and nature of Relationship

Nature of Contract /arrangements / transactions

Duration of Contracts / arrangements/ transactions

Salient terms of the Contract.

Justification for entering into such contract / arrangement /transaction.

Date of approval by the Board / Audit Committee

Amount paid as Advance if any.

Date of General meeting in which Ordinary resolution was passed

1 Ashish Joshi Key Managarial Personnel

Rent Expenses

1 Year Rent Payment for Registered office premises.

Director owns good specious office in prime location of Ahmedabad.

23.05.2018 Not Applicable

Not Applicable

2 Addin Power Ltd. Company whose promoters are the controlling individuals of the reporting entity.

Commission Income

1 Year

Power Project intermediation Services

The core team of Company has good skill to implement power projects.

23.05.2018 Not Applicable Not Applicable

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Annexure to Director’s Report - Annexure III

Form No. MR – 3 Secretarial Audit Report

For the Financial year ended on 31st March 2019 [Pursuant to section 204(1) of the Companies Act 2013

and Rule No. 9 of the Companies (Appointment and Remuneration of Managerial

Personnel) Rules 2014] To The Members of Nishtha Finance and Investment India Limited Ahmedabad We have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by Nishtha Finance and Investment India Limited (hereinafter called the Company). Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts / statutory compliances and expressing our opinion thereon. Based on our verification of Nishtha Finance and Investment India Limited’s books, papers, minute books, forms and returns filed and other records maintained by the Company and also the information provided by the Company, its officers, agents and authorized representatives during the conduct of secretarial audit, We hereby report that in our opinion, the Company has, during the audit period covering the financial year ended on 31st March, 2019 complied with the statutory provisions listed hereunder and also that the Company has proper Board-processes and compliance-mechanism in place to the extent, in the manner and subject to the reporting made hereinafter: We have examined the books, papers, minute books, forms and returns filed and other records maintained by Nishtha Finance and Investment India Limited (CIN: L74110GJ1983PLC102253) having its Registered Office at A/202, 2nd Floor, Narnarayan Complex, Nr. Navrangpura Bus Stop, Swastik Char Rasta, Navrangpura, Ahmedabad ,Gujarat- 380009,India for the financial year ended on 31st

(i) The Companies Act, 2013 (the Act) and the Rules made there under except:

March, 2019 according to the provisions of:

(ii) The Securities Contracts (Regulation) Act, 1956

(‘SCRA’) and the Rules made there under; (iii) The Depositories Act, 1996 and the Regulations and

Bye-laws framed there under;

(iv) Foreign Exchange Management Act 1999 and the rules and regulations made there under to the extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings. (Not Applicable to the Company during the period of audit.)

(v) The following Regulations and Guidelines prescribed

under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’):

(a) The Securities and Exchange Board of India

(Substantial Acquisition of Shares and Takeovers) Regulations, 2011;

(b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992;

(c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009;

(d) The Securities and Exchange Board of India (Employee Stock option Scheme and Employee Stock Purchase Scheme) Rules 1999. (Not Applicable during the period under review.)

(e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008; (Not Applicable to the Company during Audit Period.)

(f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Companies Act and dealing with client;

(g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009; and (Not Applicable to the Company during Audit Period);

(h) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998 - (Not Applicable to the Company during Audit Period);

(i) The Securities and Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015.

(vi) There were no specific acts applicable to the Company:

We have also examined compliance with Secretarial Standard issued by Institute of Company Secretaries of India. During the period under review, the Company has complied with the provisions of the Act, Rules, Regulations, guidelines, Standards. We further report that:

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The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors and Independent Directors. The changes in the composition of the Board of Directors that took place during the period under review were carried out in compliance with the provisions of the Act. Adequate notice is given to all Directors to schedule the Board Meetings, agenda and detailed notes on agenda were usually sent seven days in advance, and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for meaningful participation at the meeting. There were no dissenting views on any matter by the members. We further report that there are adequate systems and processes in the Company commensurate with the size and operations of the Company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines. We further report that during the audit period the Company has following specific events / actions having a major bearing on the Company’s affairs in pursuance of the above referred laws, rules, regulations, guidelines, standards, etc. 1. Approval received from members in General Meeting

for issue of Convertible Warrants to Promoters and Non Promoters, however the resolution could not be executed by the Board of Directors.

Note: This Report is to be read with Our Letter of even date which is annexed as Annexure “A” and forms an integral part of this report.

VIRAL RANPURA COMPANY SECRETARY

(ACS 28496) (COP 10361) Date: 03.09.2019 Place: Ahmedabad

Annexure A to Secretarial Audit Report To The Members of Nishtha Finance and Investment India Limited Ahmedabad. Our Report of even date is to be read along with this Letter;

1. Maintenance of Secretarial Record is the responsibility of the management of the company. Our responsibility is to express an opinion on Secretarial Records based on our Audit.

2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness of the contents of the Secretarial Records. The verification was done on test basis to ensure that correct facts are reflected in Secretarial records. We believe that the processes and practices, we followed provide a reasonable basis for our opinion.

3. We have not verified the correctness and appropriateness of financial records and books of accounts of the company.

4. Wherever required, we have obtained the Management Representation about the compliance of laws, rules and regulations and happening of events etc.

5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility of the management. Our examination was limited to the verification of the procedures on test basis.

6. The Secretarial Audit report is neither an assurance as to the future viability of the company nor the efficacy or effectiveness with which the management has conducted the affairs of the company.

VIRAL RANPURA COMPANY SECRETARY

(ACS 28496) (COP 10361) Date: 03.09.2019 Place: Ahmedabad

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Annexure to Director’s Report - Annexure IV EXTRACT OF ANNUAL RETURN

As on the financial year ended 31st

1.

March, 2019 [Pursuant to section 92(3) of the Companies Act, 2013 and Rule 12(1) of the

Companies (Management and Administration) Rules, 2014]

Registration and other Details:

1) Name of Company Nishtha Finance and Investment India Limited 2) CIN: L74110GJ1983PLC102253 3) Date of Incorporation 16.11.1983 4) Category and Sub Category Indian Non Government Company

Company Limited by Shares 5) Address of Registered office Nishtha Finance and Investment India Limited

A/202, 2nd Floor, Narnarayan Complex, Nr. Navrangpura Bus Stop, Swastik Char Rasta, Navrangpura Ahmedabad Ahmedabad, Gujarat- 380009 India. (E) nishtha.finvest@gmail.com (W) www.nfandiltd.com (O) 079 4002 7017

6) Whether listed or not Yes. BSE Limited (Scrip Code 539311)

7) Name, Address and contact details of Registrar to Issue and Share Transfer Agent

Skyline Financial Services Private Limited D 153A, 1st

Email id:

Floor, Okhla Industrial Area, Phase – I, New Delhi – 110020. (o) 011 26812682 / 83.

info@skylinerta.com Website: www.skylinerta.om

2.

All the business activities contributing 10% or more of the total turnover of the Company are given below:

Principle Business Activities of the Company:

Sr. No. Name and Description of main product or services

NIC Code of the Product / Services as per National Product Classification for Service Sectors 2010.

% of total turnover of the Company

1 Power Generation by Solar Energy (Commission Income)

35105 23.66

2 Other financial service activities, except insurance and pension funding activities, n.e.c.

64990 76.34

3. Particulars of Holding Subsidiary and Associate Companies:

Sr. No Name of the Company

Address of the Company

CIN / GLN Holding / Subsidiary / Associate

% of shares held

Applicable Section

Not Applicable

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4. SHAREHOLDING PATTERN (Equity Share Capital Break up as percentage of total equity) i) Category-wise Share Holding:

Category of Shareholder No. of Shares held at the beginning of the year

01.04.2018 No. of Shares held at the beginning of the year

31.03.2019 % Change

Demat Physical Total % of total shares

Demat Physical Total % of Total Shares

% Change during the year.

A. PROMOTER AND PROMOTER GROUP * 1) INDIAN (a) Individual / HUF 33,34,484 - 33,34,484 43.30 33,34,484 - 33,34,484 43.30 733.62 (b) Central Government - - - (c) State Government (s) - - - (d) Bodies Corporate - - - (e) Financial Institutions / Banks - - - (f) Any Other - - - Sub – Total A (1) 33,34,484 - 33,34,484 43.30 33,34,484 - 33,34,484 43.30 733.62 2) FOREIGN - - - a) Individuals (NRIs / Foreign Individuals) - - - b) Other individuals - - - c) Bodies Corporate - - - d) Banks / FIs - - - e) Any others - - -

Sub Total A (2) - - - - - - - - - Total Shareholding of Promoters A = A(1) + A(2)

33,34,484 - 33,34,484 43.30 33,34,484 - 33,34,484 43.30 733.62

B. PUBLIC SHAREHOLDING 1) INSTITUTIONS - - - a) Mutual Fund - - - b) Banks / Financial Institutions - - - c) State / Central Government - - - d) Venture Capital Funds - - - e) Insurance companies - - - f) Foreign Institutional Investors - - - g) Foreign Venture Capital Investors - - - Sub Total B(1) - - - - - - - - - 2) NON – INSTITUTION a) Bodies Corporate 327,838 225,000 552,838 7.18 382,688 - 382,688 4.97 (2.21)

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b) Individuals - Individual Shareholders holding nominal

share capital up to Rs. 1 Lac 107,220 156,000

263,220

3.42 102,841 156,000

258,841

3.36 0.04

- Individual Shareholders holding nominal share capital in excess of Rs. 1 Lac

33,22,392 219,000

35,41,392 45.99 32,78,976 444,000

37,22,976 48.35 2.26

c) Others - HUF 411 - 411 0.01 1011 - 1011 0.01 0.00 - Clearing Member 7655 - 7655 0.10 - - - - -0.10 - NRI - - - - - - - - - - Trust - - - - - - - - - Sub Total B (2) Total Public Shareholding B = B(1) + B(2) 37,65,516 600,000 43,65,516 94.81 37,65,516 600,000 43,65,516 56.70 0.00 C. SHARES HELD BY CUSTODIANS FOR ADR

/ GDR - - - - - - - - -

Grand Total (A + B+ C) 71,00,000 600,000 77,00,000 100.00 71,00,000 600,000 77,00,000 100.00 - ii) Share Holding of Promoters :

Shareholders’ Name No. of Shares held at the beginning of the

year 01.04.2018 No. of Shares held at the end of the year

31.03.2019 % Change

No. of shares

% of total shares of the Company

% of shares pledged to total shares

No. of shares

% of total shares of the Company

% of shares pledged to total shares

Ashishbhai Jitendrabhai Joshi 21,31,172 27.68 - 21,31,172 27.68 - 0.00 Chetankumar Haribhai Chovatiya 12,03,312 15.63 - 12,03,312 15.63 - 0.00

iii) Change in Promoters’ Shareholding :

Sr. No Particulars Shareholding at the beginning of the

year Cumulative shareholding during the

year I No. of shares Ashish Jitendrabhai Joshi % of total shares of

the Company No. of Shares. % of total shares of

the Company. 1 At the beginning of the year 21,31,172 27.68 21,31,172 27.68 At the end of the year 21,31,172 27.68

II No. of shares Chetankumar Chovatiya % of total shares of the Company

No. of Shares. % of total shares of the Company.

1 At the beginning of the year 12,03,312 15.63 12,03,312 15.63 At the end of the year 12,03,312 15.63

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iv) Shareholding pattern of Top 10 Shareholders (other than Directors, Promoters and holders of ADR / GDRs) v) Sr. No

Name of Shareholder Date Reason Increase / Decrease in Shareholding

Cumulative Shareholding

No. of shares % of shares of the company

Nos. of shares % of total shares of the company

1 Globe Capital Limited At the beginning of the year 0 0.00 04.05.2018 Purchase 275000 275000 3.57 09.11.2018 Sale -152037 122963 1.60 At the end of the year 122963 1.60 2 Bhansali Value Creations Private Limited At the beginning of the year 275700 3.58 06.04.2018 Purchase 6000 281700 3.66 04.05.2018 Sale -275000 6700 0.09 11.05.2018 Sale -6000 700 0.01 01.06.2018 Purchase 275000 275700 3.58 29.06.2018 Sale -275000 700 0.01 12.10.2018 Sale -700 0 0.00 At the end of the year 0 0.00 3 Shivprakash Dixit At the beginning of the year 200000 2.60 At the end of the year 200000 2.60 4 Harjivanbhai Chaganbhai Patel At the beginning of the year 150000 1.95 At the end of the year 150000 1.95 5 Rajendrabhai Ramanlal Soni At the beginning of the year 200000 2.60 At the end of the year 200000 2.60 6 Poonam Karla At the beginning of the year 200000 2.60 At the end of the year 200000 2.60

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7 Godhar Rajendra Gangaram At the beginning of the year 0 0.00 26.10.2018 Purchase 140370 140370 1.82 02.11.2018 Purchase 25000 165370 2.15 At the end of the year 165370 2.15 8 Hemaben Rajendrabhai Soni At the beginning of the year 200000 2.60 At the end of the year 200000 2.60 9 Desai Mahesh At the beginning of the year 0 0.00 26.10.2018 Purchase 98580 98580 1.28 Purchase 30100 128680 1.67 Purchase 4053 132733 1.72 At the end of the year 132733 1.72 10 Mayank Harjivanbhai Rupala At the beginning of the year 150000 1.95 At the beginning of the year 150000 1.95 11 Dheeraj Karda At the beginning of the year 175000 2.27 At the beginning of the year 175000 2.27 12 Sanjaykumar Vinodbhai Rathod At the beginning of the year 187375 2.43 24.08.2018 Sale -187375 0 0.00 At the end of the year 0 0.00 13 Kamlesh Mottybhai Patel At the beginning of the year 156736 2.04 24.08.2018 Sale -156736 0 0.00 14 Nimesh Ganpatbhai Parmar At the beginning of the year 181500 2.36 11.05.2018 Purchase 6000 187500 2.44 Sale -187500 0 0.00 At the end of the year 0 0.00

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15 Mayur Maheshkumar Panchal At the beginning of the year 190000 2.47 26.10.2018 Sale -102000 88000 1.14 At the end of the year 88000 1.14 At the end of the year

vi) Shareholding of Directors and Key Managerial Personnel:

Sr. No

Name of Shareholder Date Reason Increase / Decrease in Shareholding

Cumulative Shareholding

No. of shares % of shares of the company

Nos. of shares % of total shares of the company

1 Ashishbhai Jitendrabhai Joshi 01.04.2018 21,31,172 27.68 31.03.2018 21,31,172 27.68 2 Chetankumar Haribhai Chovatiya 01.04.2018 12,03,312 15.63 31.03.2019 12,03,312 15.63 3 Nikul Haribhai Chovatiya 01.04.2018 - - 60 0.00 31.03.2019 No Change 60 0.00 4 Miraben Cheankumar Chovatiya 01.04.2018 - - 31.03.2019 No Change 100 0.00 5 Chunilal Vrujlal Chovatiya 01.04.2018 No Change - - 31.03.2019 60 0.00

vii) Indebtedness of the Company including interest outstanding / accrued but not due for payment:

Sr. No Particulars of Debt Secured Loans

excluding Deposit Unsecured Loans Deposits Total indebtedness

1 Unsecured Loan - 35,67,479 - 35,67,479

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REMUNERATION

a) Managing Director / Whole Time Director and / or Manager / others Director

.

Sr. No Particulars of Remuneration Name of WTD/ MD/ Director Total Amount 1 Gross Salary - - (a) Salary as per provisions contained in section 17(1) of the

Income-tax Act, 1961 - -

b)

Remuneration to other Directors:

Sr. No.

Particulars of Remuneration Name of other Directors Total Amount

1 Gross Salary - - (a) Salary as per provisions contained in section 17(1) of the Income-tax

Act, 1961 - -

(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 - - (c) Profits in lieu of salary under section 17(3) Income-tax Act, 1961 - -

c)

Remuneration to KMP other than MD / Manager / WTD:

Sr. No

Particulars of Remuneration Name of KMP Total Amount (Gross)

1 Gross Salary (a) Salary as per provisions contained in section 17(1) of the

Income-tax Act, 1961 Mr. Hinal Patel Company Secretary

96,000

viii) Penalties / Punishment and Compounding of offences:

Type Section of

Companies Act Brief Description Details of penalty /

punishment/ compounding fees imposed

Authority Appeal made, if any.

- - - - - -

AUDITOR’S REPORT                                                                        

. 

 

Nishtha Finance and Investment (India) Limited           

Address:  A/202,  2ND  Floor Narnarayan  Complex  Nr. Navrangpura  Bus  Stop,  Swastik Charrasta  Navarangpura, Ahmedabad ‐  380009 

                                                                                          

   

 

  AUDITOR’S REPORT For Year Ended 31.03.2019        

 

        

AUDITORS :____________________ S. D. Mehta & Co. (Chartered Accountants) 16‐A, Ghanshyam Avenue, Near C. U. Shah College, Sattar Taluka Society, Income Tax,  Ahmedabad ‐ 380014. 

26

      

  Independent Auditors’ Report  To the Members of, Nishtha Finance and Investment (India) Limited  1.  Opinion    

We  have  audited  the  accompanying  Ind  AS  financial  statements  of  Nishtha  Finance  and Investment  (India)  Limited  which  comprise  the  Balance  Sheet  as  at  March  31,  2019,  the Statement  of  Profit  and  Loss  (Including  Other  Comprehensive  Income),  the  Cash  Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.  .  In our opinion and to the best of our information and according to the explanations given to us, the aforesaid  financial statements give  the  information  required by  the Companies Act, 2013 (“the Act”) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting  Standards)  Rules,  2015,  as  amended,  (“Ind  AS”)  and  other  accounting  principles generally accepted  in  India, of  the  state of affairs of  the Company as at March 31, 2019,  its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.  Basis of Opinion  We  conducted  our  audit  of  the  financial  statements  in  accordance  with  the  Standards  on Auditing  specified  under  section  143(10)  of  the  Act  (SAs).  Our  responsibilities  under  those Standards  are  further described  in  the Auditor’s Responsibility  for  the Audit of  the  Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical  requirements  that  are  relevant  to  our  audit  of  the  financial  statements  under  the provisions of  the Act and  the Rules made  thereunder, and we have  fulfilled our other ethical responsibilities  in  accordance  with  these  requirements  and  the  ICAI’s  Code  of  Ethics.  We believe that the audit evidence obtained by us  is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.   

2.  Management’s Responsibility for the Financial Statements  

The Company’s Board of Directors is responsible for the matters stated in the section 134(5) of the  Companies  Act,  2013  (“the  Act”)  with  respect  to  the  preparation  of  these  financial statements  that give a  true and  fair view of  the  financial position,  financial performance and cash flows of the Company  in accordance with the accounting principles generally accepted  in India, including the Accounting Standards specified under section 133 of the Act, read with Rule 7 of  the Companies  (Accounts) Rules,  2014.  This  responsibility  also  includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets  of  the  Company  and  for  preventing  and  detecting  frauds  and  other  irregularities; 27

selection and application of appropriate accounting policies; making  judgments and estimates that are  reasonable and prudent; and design,  implementation and maintenance of adequate internal  financial  controls,  that  were  operating  effectively  for  ensuring  the  accuracy  and completeness of  the accounting  records,  relevant  to  the preparation and presentation of  the financial  statements  that give a  true and  fair view and are  free  from material misstatement, whether due to fraud or error.  

 3.  Auditor’s Responsibility for the Financial Statements  

Our responsibility is to express an opinion on these financial statements based on our audit.   We have taken  into account the provisions of the Act, the accounting and auditing standards and matters which are required to be  included  in the audit report under the provisions of the Act and the Rules made there under. 

 We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. 

 An  audit  involves  performing  procedures  to  obtain  audit  evidence  about  the  amounts  and disclosures  in  the  financial  statements.  The  procedures  selected  depend  on  the  auditor’s judgment,  including  the  assessment  of  the  risks  of  material misstatement  of  the  financial statements,  whether  due  to  fraud  or  error.  In making  those  risk  assessments,  the  auditor considers  internal  control  relevant  to  the Company’s preparation of  the  financial  statements that  give  true  and  fair  view  in  order  to  design  audit  procedure  that  are  appropriate  in  the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the overall presentations of the financial statements.  We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.  

4.  Opinion    

In our opinion and to the best of our information and according to the explanations given to us, and  subject  to  note  no.  4  of  the  notes  to  the  Ind  AS  financial  statements,  the  aforesaid standalone  financial  statements  give  the  information  required  by  the  Act  in  the manner  so required and give a  true and  fair view  in conformity with  the accounting principles generally accepted  in  India, of the state of affairs of the Company as at March 31, 2019, and  its profit, total comprehensive  income,  the changes  in equity and  its cash  flows  for  the year ended on that date. 

  

5.  Report on Other Legal and Regulatory Requirements  

i. As  required  by  the  Companies  (Auditor’s  Report)  Order,  2016  (“the  Order”)  issued  by  the Central Government of India in terms of section (11) of section 143 of the Companies Act,2015 we give in the “Annexure‐A” a statement on the matters specified in the paragraphs 3 and 4 of the Order, to the extent applicable.  

  ii.  As required by section 143(3) of the Act, we report that:  

  28

a.   We  have  obtained  all  the  information  and  explanations  which  to  the  best  of  our knowledge and belief were necessary for the purpose of our audit; 

 b.   In  our  opinion  proper  books  of  account  as  required  by  law  have  been  kept  by  the 

Company so far as appears from our examination of those books  

c.   The Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account. 

 d.   In our opinion,  the  aforesaid  financial  statements  comply with  the  Indian Accounting 

Standards specified under section 133 of the Act, read with the Rule 7 of the Companies (Accounts) Rules, 2014. 

 e.  On  the basis of written  representations  received  from  the directors  as on March  31, 

2019, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2019, from being appointed as a director in terms of section 164(2) of the Act.   

f.    With respect to the adequacy of the  internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in “Annexure B”; and  

 g.  With respect to the other matters to be included in the Auditor’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 accordance to the explanation given to us:  i. The company does not have any pending  litigations which would  impact  its  financial position. 

 ii. The company did not have any  long term contracts  including derivative contracts for which there were any material foreseeable losses.  

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

   

                    For, S. D. Mehta & Co.   Chartered Accountants 

(Registration No. 137193W) Date: 29th May, 2019 Place: Ahmedabad 

Shaishav Mehta               Partner 

M. No. : 032891 

29

Annexure‐A to Independent Auditors’ Report Referred  to  in  Paragraph  5(i)  under  the  heading  of  “Report  on  Other  Legal  and  Regulatory Requirements” of our report of even date.   

1. In respect of Fixed Assets(Including Capital work in progress)   The Company does not own or  lease any  fixed assets. As such, reporting requirements under this para are not applicable for the reporting period.   

 2. The  Company  has  not  granted  loans  to  parties  covered  in  the  Register  maintained  under 

Section 189 of the Companies Act, 2013.   As such reporting requirements under this para are not applicable for the reporting period.   

3. In respect of loan, the provisions of section 185 and 186 have been complied with. There are no loans  to directors;  there are no  investments, guarantees and  securities  requiring  compliance u/s 186 of the Companies Act, 2013.  

 4. During the year, the company has not accepted any deposits from public.  

  

5. Company is not required to maintain cost records pursuant to section 148 (1) of the Companies Act, 2013.   

 6. In respect of Statutory Dues: 

a. According to the information and explanations given to us and the records examined by us, the Company is generally regular in depositing undisputed statutory dues including Income Tax, Cess and any other statutory dues with the appropriate authorities. According to the information and explanations given to us, there are no undisputed dues, payable in respect of above as at 31st March, 2019  for a period of more  than six months  from  the date on which they became payable. 

 b. According  to  the  information  and  explanations  given  to  us  and  on  the  basis  of  our 

examination of books of  account  and  record, No disputed dues were outstanding  as on 31/03/2019. 

 7. As the Company has not availed any term  loan the question of purpose and application does 

not arise.   

8. No money has been raised by way of  initial public offer or further public offer (Including Debt Instrument). 

 9. To the best of our knowledge and according to the information and explanations given to us, no 

material fraud on or by the Company has been noticed or reported during the year.  

10. The  Company  has  not  paid  or  provided managerial  remuneration  under  section  197  of  the Companies Act, 2013 and hence, the provision of paragraph 3(xi) of the Order is not applicable to the Company. 

  

11. The company is not a Nidhi company. As such The Nidhi rules, 2014 are not applicable.  30

 12. All  transactions with  the  related parties are  in  compliance with  the  sections 177 and 188 of 

Companies  Act,  2013 where  applicable  and  the  details  have  been  disclosed  in  the  financial statements as required by applicable accounting standards.  

13. The company has not made any preferential allotment or Private placement of shares of fully or partly convertible debentures during the year under review. 

 14. The  company  has  not  entered  into  any  non  cash  transactions  with  directors  or  persons 

connected with it.  

15. Company is not required to be registered u/s. 45‐IA of the Reserve Bank of India Act, 1934.  

         For, S. D. Mehta & Co.   Chartered Accountants 

(Registration No. 137193W) Date: 29th May, 2019 Place: Ahmedabad 

Shaishav Mehta               Partner 

M.No.: 032891

31

 Annexure‐B to Independent Auditors’ Report Report on the Internal Financial Controls under Clause (i) of Sub‐section 3 of Section 143 of the Companies Act, 2013 (“the Act”)      We  have  audited  the  internal  financial  controls  over  financial  reporting  of  Nishtha  Finance  and Investment (India) Limited (“the Company”) as of 31 March 2019 in conjunction with our audit 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 internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls  over  Financial  Reporting  issued  by  the  Institute  of  Chartered Accountants  of  India  (‘ICAI’). These  responsibilities  include  the  design,  implementation  and  maintenance  of  adequate  internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of  its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection  of  frauds  and  errors,  the  accuracy  and  completeness  of  the  accounting  records,  and  the timely preparation of reliable financial information, as required under the Companies Act, 2013.    Auditors’ Responsibility   Our responsibility  is to express an opinion on the Company's  internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of  Internal  Financial Controls over  Financial Reporting  (the  “Guidance Note”)  and  the  Standards on Auditing,  issued by  ICAI and deemed  to be prescribed under  section 143(10) of  the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both  issued by the  Institute of Chartered Accountants of  India. Those Standards  and  the Guidance Note  require  that we  comply with  ethical  requirements  and  plan  and perform the audit to obtain reasonable assurance about whether adequate  internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.   Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial  controls  system  over  financial  reporting  and  their  operating  effectiveness.  Our  audit  of internal  financial  controls  over  financial  reporting  included  obtaining  an  understanding  of  internal financial  controls  over  financial  reporting,  assessing  the  risk  that  a material  weakness  exists,  and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgment, including the assessment of the risks 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 to provide a basis for our audit opinion on the Company’s internal financial controls system over financial reporting.          32

Meaning of Internal Financial Controls over Financial Reporting   A  company's  internal  financial  control  over  financial  reporting  is  a  process  designed  to  provide reasonable assurance  regarding  the  reliability of  financial  reporting and  the preparation of  financial statements  for  external  purposes  in  accordance  with  generally  accepted  accounting  principles.  A company's  internal  financial  control  over  financial  reporting  includes  those  policies  and  procedures that (1) pertain to the maintenance of records that,  in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are  recorded as necessary  to permit preparation of    financial statements  in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use,  or  disposition  of  the  company's  assets  that  could  have  a  material  effect  on  the    financial statements.    Inherent Limitations of Internal Financial Controls over Financial Reporting  

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or  improper management override of controls, material misstatements due to error  or  fraud may  occur  and  not  be  detected.  Also,  projections  of  any  evaluation  of  the  internal financial  controls over  financial  reporting  to  future periods  are  subject  to  the  risk  that  the  internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.   Opinion   In  our  opinion,  the  Company  has,  in  all material  respects,  an  adequate  internal  financial  controls system  over  financial  reporting  and  such  internal  financial  controls  over  financial  reporting  were operating  effectively  as  at  31 March  2019,  based  on  the  internal  control  over  financial  reporting criteria established by the Company considering the essential components of internal control stated in the  Guidance  Note  on  Audit  of  Internal  Financial  Controls  Over  Financial  Reporting  issued  by  the Institute of Chartered Accountants of India.    

         For, S. D. Mehta & Co.   Chartered Accountants 

(Registration No. 137193W) Date: 29th May, 2019 Place: Ahmedabad 

Shaishav Mehta               Partner 

M.No.: 032891   

    

33

Particulars Note no. 

ASSETS(1) Non‐current assets(a) Property, Plant & Equipment(b) Capital work‐in‐progress(c) Investment Property(d) Goodwill(e) Other Intangible Assets(f) Intangible Assets under development(g) Biological Assets other than bearer plants(h) Financial Assets :       (i) Investments    4.01                74,000               74,000        (ii) Trade receivables       (iii) Loans and advances    4.02        6,86,25,264      7,58,52,415        (iv) Others (to be specified)(i) Deferred tax assets (net)(j) Other non‐current assets    4.03                         ‐              2,60,097 

     6,86,99,264      7,61,86,512 

(2) Current assets(a) Inventories                        ‐                          ‐   (b) Financial Assets :        (i) Investments        (ii) Trade receivables    4.04           17,13,473               14,601         (iii) Cash and cash equivalents    4.05                   7,443            1,62,702             (iv) Bank balances other than (iii) above        (v) Loans and advances    4.06        1,62,33,625          65,53,233         (vi) Others (to be specified)(c) Current Tax Assets (Net)(d) Other current assets    4.07             3,30,114            2,29,867 

     1,82,84,655         69,60,403 

Total Assets      8,69,83,919      8,31,46,915 

I. EQUITY AND LIABILITIES

Equity(a) Equity Share capital    4.08        7,70,00,000      7,70,00,000 (b) Other Equity    4.09           39,19,988          27,10,716 

     8,09,19,988      7,97,10,716 LIABILITIES(1) Non‐Current Liabilities(a) Financial Liabilities       (i) Borrowings    4.10           35,67,479          13,32,430        (ii) Trade Payables       (iii) Other financial liabilities (other than those specified in item (b), to be specified(b) Provisions(c ) Deferred tax liabilities (Net)(d) Other non‐current liabilities

(2) Current Liabilities(a) Financial Liabilities      (i) Borrowings      (ii) Trade payables    4.11           19,14,388          15,33,473      (iii) Other financial liabilities (other than                 those specified in item (c)(b) Other current liabilities    4.12                52,232            2,30,296 (c) Provisons    4.13             5,29,832            3,40,000 (d) Current Tax Liabilities (Net)

         60,63,931         34,36,199 

Total Equity and Liabilities      8,69,83,919      8,31,46,915 

Notes to Financial StatementsSignificant Acounting Policies          2 

For, S. D. Mehta & Co.Chartered AccountantsFRN: 137193W

Shaishav MehtaPartnerM.No. 032891

Place: AhmedabadDate:  29th May, 2019

Managing Director DIN: 06894408  DIN: 07549602 

For and on behalf of the board of Nishtha Finance And Investment (India) Limited 

Hinal Patel Chunilal ChovatiyaCompany Secretary CFO 

Nishtha Finance And Investment (India) LimitedBalance Sheet as at 31st March, 2019

 As at 31st March, 2018  As at 31st March, 2019 

Ashish Joshi 

As per our report of even date  attached herewith.

Chetankumar Chovatiya Director 

34

Statement of Profit and Loss for the year ended on 31st March, 2019

ParticularsNote no.

As at 31st March, 2019 As at 31st March, 2018

(I) Revenue from operations 4.14 83,84,837                                   83,20,437                                    

(II) Other Income 4.15 1,480                                            ‐                                                 

(III)                                                             Total  Income (I+II) 83,86,317                                   83,20,437                                    

(IV) EXPENSES

Cost of Materials Consumed ‐                                                 ‐                                                 

Purchase of Stock ‐in‐Trade 4.16 ‐                                                 ‐                                                 

Changes in Inventories of Finished goods, Work‐in‐Progress and by products 4.17 ‐                                                 ‐                                                 

Employee Benefits  Expense 4.16 1,16,140                                       1,36,286                                      

Finance Costs 4.17 2,35,549                                       ‐                                                 

Depreciation and Amortization Expense ‐                                                 ‐                                                   Other Expenses 4.18 63,18,999                                   68,79,277                                    

Total Expenses (IV) 66,70,688                                   70,15,563                                    

(V) Profit / (Loss) Before Exceptional Items & Tax  ( III‐IV) 17,15,629                                   13,04,874                                    

(VI) Exceptional Items ‐                                                 

(VII) Profit / (Loss) Before Tax  ( V‐VI) 17,15,629                                   13,04,874                                    

(VIII) Tax Expenses :(1) Current tax 5,01,566                                       3,40,000                                      (2) Deferred tax ‐                                                 ‐                                                 (3) Income tax of earlier year 4,791                                            801                                                

(IX)  Profit / (Loss) for the period  from Continuing Operation (VII‐VIII) 12,09,272                                   9,64,073                                      

(X)  Profit / (Loss) from discontinued operations ‐                                                 ‐                                                 

(XI) Tax expense of discontinued operations ‐                                                 ‐                                                 

(XII)  Profit / (Loss) from discontinued operations (after tax) (X‐XI) ‐                                                 ‐                                                 

(XIII)  Profit / (Loss) for the period (IX+XII) 12,09,272                                   9,64,073                                      

(XIV)Other Comprehensive Income ‐                                                 ‐                                                 

       Basic & Diluted (In Rs.) 4.19 0.16 0.13

Notes to Financial StatementsSignificant Acounting Policies 2

As per our report of even date  attached herewith.For, S. D. Mehta & Co.Chartered AccountantsFRN: 137193W

Shaishav Mehta Chetankumar ChovatiyaPartner DirectorM.No. 032891 DIN: 07549602

Place: Ahmedabad Chunilal ChovatiyaDate:  29th May, 2019 CFO

Hinal PatelCompany Secretary

Managing DirectorDIN: 06894408

Nishtha Finance And Investment (India) Limited(In Rs.)

Ashish Joshi

For and on behalf of the board ofNishtha Finance And Investment (India) Limited

35

Particulars Amount Amount Amount Amount(A) Cash flow from operating activities     (1) Net profit after tax and extraordinary items              12,09,272                  9,64,073  ADD:(I) Depreciation Written off           (ii) Provision for income tax             5,01,566             3,40,000           (iii) Baddebt Written off           (iv) Loss from partnership firm           (v) Deferred Revenue Expenses             2,60,100             2,60,100  LESS: (i) Deferred tax Asset 

               7,61,666                  6,00,100      (2) Operating profit before working capital changes              19,70,938                15,64,173 Working capital changes

 Add: (i) Decrease in Current Assets (Except Cash & Cash Equivalents)          65,53,233        7,24,00,884           (ii) Increase in Current Liabilities             3,80,915             1,82,833 

 Less: (i) Decrease in Current Liabilities             1,78,064           28,71,606 

           (ii) Increase in Current assests (Except Cash & Cash Equivalents)           19,99,219                47,56,865            6,97,12,111       (3) Cash generated from operating before tax              67,27,803            7,12,76,284  Less: Income Tax Paid                         ‐                   3,11,734                  5,20,000 

      (4) Cash flow before extraordinary items              64,16,069            7,07,56,284  Add/ (less) extraordinary items Net cash inflow / outflow from operating activities After tax & extraordinary items               64,16,069            7,07,56,284 

 (B) Cash flow from investing activities  Add : Proceeds on account of changes in Investments                          ‐   

 Less :  Purchase of Fixed assets & Investments                         ‐          7,18,52,415 Net Cash inflow / outflow from investing activities                            ‐            (7,18,52,415)

 ( C ) Cash flow from financing activitiesAdd : Changes in Long term Loans & Advances         24,35,146           12,17,430           Proceeds of Share Capital

Less : Advances given         90,06,474 Less : Repayment of Loans                         ‐   Net cash inflow / outflow from financing activities            (65,71,328)               12,17,430 

 (D) net increase / decrease in cash & cash equivalent              (1,55,259)                 1,21,299  (E) Add: Cash & Cash Equivalents in the beginning of the year                1,62,702                     41,403  (F) Cash & Cash Equivalents at the end of the year                      7,443                  1,62,702 

For, S. D. Mehta & Co.Chartered AccountantsFRN: 137193W

Shaishav MehtaPartnerM.No.:032891

Place: AhmedabadDate: 29th May, 2018

Nishtha Finance And Investment (India) Limited

For and on behalf of the board ofNishtha Finance and Investment (India) Ltd.

For the year ended For the year ended31st March,2019 31st March,2018

Ashish Joshi  Managing Director

Chetankumar Chovatiya

Hinal PatelCompany Secretary

Director

Cash flow statement for the year ended 31st March' 2019(Amount in Rupees)

Chunilal ChovatiyaCFO

DIN:07542592DIN: 06894408

36

4.01 Investments

Sr. No. Particulars

Investment in Shares (Unquoted)

TOTALNote :

4.02 Loans and advances

Sr. No. Particulars

Unsecured, Considered GoodDoubtful

TOTAL

4.03 Other non‐current assets

Sr. No. Particulars

Deferred Revenue Expenditure (to the extent not written off)

TOTAL

4.04 Trade Receivable

Sr. No. Particulars

Unsecured, Considered Goods

TOTAL

4.05 Cash and Cash Equivalent

Sr. No. Particulars

Cash in handBalance with banks

TOTAL

(Amounts In Rs.)

(Amounts In Rs.)

(Amounts In Rs.)

(Amounts In Rs.)

(Amounts In Rs.)

                     17,13,473 

                     17,13,473 

As at 31st March, 2019

As at 31st March, 2019

As at 31st March, 2018

Current Assets

                                    ‐                           2,60,097 

As at 31st March, 2019

As at 31st March, 2018

The investment in shares consists of equity instruments of an entity, the reliable data of which is not available after reasonable efforts. The same have been recorded at historical cost.

                       2,60,097                                     ‐   

As at 31st March, 2019

                           74,000 

                           74,000 

As at 31st March, 2018

                           74,000 

                           74,000 

Non‐Current Assets

As at 31st March, 2018

                  7,58,52,415                   6,86,25,264 

As at 31st March, 2019

                  2,16,11,600                   4,70,13,664                     5,42,40,815 

                  2,16,11,600 

                             6,513                        1,56,189 

                       1,62,702 

                             2,218                              5,225 

                             7,443 

                           14,601 

                           14,601 

As at 31st March, 2018

37

4.06 Loans and advances

Sr. No. Particulars

Loans advanced (less than 12 months)

TOTAL

4.07 Other current assets

Sr. No. Particulars

DepositsBalance with revenue authoritiesPre‐paid expenses

TOTALNote :

4.08 Share Capital

Sr. No. Particulars

a) Authorised Share Capital1,10,00,000 Equity shares of Rs. 10/‐ each

b) Issued, Subscribed & Fully paid up capital77,00,000 Equity shares of Rs. 10/‐ each fully paid up

TOTAL

c)  The reconciliation of the number of shares outstanding is  set out below.Particulars

Equity shares at the beginning of the year

Add: Shares issued during the year

Equity shares Outstanding at the end of the year

d) Rights, Preferences and Restrictions 

e) The details of  shareholders holding more than 5% of  Equity shares 

Name of ShareholdersAs at 31st 

March, 2019% Held

As at 31st March, 2018

% Held

Ashishbhai Jitendrabhai Joshi      21,31,172    27.68       21,31,172     27.68 

Chetankumar Haribhai Chovatiya      12,03,312    15.63       12,03,312     15.63 

(Amounts In Rs.)

(Amounts In Rs.)

(Amounts In Rs.)

Balance with revenue authorities includes TDS receivable, GST credit yet to be set off and advance tax paid to the credit of central government

The Company has only one class of equity shares having par value of Rs.10/‐ per share. Each equity shareholder is eligible forone vote per share held. The dividend proposed by the Board of Directors, if any, is subject to the approval of the shareholdersin the ensuing Annual General Meeting, except in case of interim dividend. in the event of liquidation, the equity shareholdersare eligible to receive the remaining assets of the company after distribution of all preferential amounts, if any, in proportion totheir shareholding.

As at 31st March, 2019

As at 31st March, 2018

                           60,000 

As at 31st March, 2019

As at 31st March, 2018

                           60,000 

                     65,53,233 

                     65,53,233 

                  1,62,33,625 

                  1,62,33,625 

                  7,70,00,000 

                             4,094 

                       2,29,867 

                                    ‐   

                       3,30,114 

As at 31st March, 2019

As at 31st March, 2018

                11,00,00,000 

               11,00,00,000 

                11,00,00,000 

               11,00,00,000 

                  7,70,00,000 

                  7,70,00,000 

Number of Equity Shares 

                     77,00,000                       77,00,000 

                  7,70,00,000 

As at 31st March, 2019

As at 31st March, 2018

                     77,00,000                       77,00,000 

                                    ‐                                        ‐   

                       2,70,114                         1,65,773 

Equity

38

4.09 Other Equity

Sr. No. Particulars

Surplus / (Deficit) in Statement of Profit & LossBalance as per previous financial statementsAdd:  Profit for the yearBalance available for appropriation

Net Surplus / (Deficit)

4.10 Borrowings

Sr. No. Particulars

Unsecured loans

TOTAL

4.11 Trade Payables

Sr. No. Particulars

Trade Payables

TOTAL

4.12 Other Current Liabilities

Sr. No. Particulars

GST PayableTDS PayablePT Payable

TOTAL

4.13 Provisions

Sr. No. Particulars

Provision for Income Tax

TOTAL

(Amounts In Rs.)

(Amounts In Rs.)

(Amounts In Rs.)

(Amounts In Rs.)

(Amounts In Rs.)

                     19,14,388                       15,33,473 

As at 31st March, 2019

As at 31st March, 2018

                     35,67,479                       13,32,430 

As at 31st March, 2018

                     19,14,388                       15,33,473 

As at 31st March, 2019

                           52,232                         2,30,296 

                                    ‐                           2,02,358                            52,172                             27,938                                   60                                      ‐   

                       3,40,000                        5,29,832 

As at 31st March, 2019

As at 31st March, 2018

                       5,29,832                         3,40,000 

                     39,19,988 

                     27,10,716                      12,09,272                      39,19,988 

As at 31st March, 2019

As at 31st March, 2018

As at 31st March, 2019

As at 31st March, 2018

Current Liabilities

Non‐Current Liabilities

                     27,10,716 

                     27,10,716                        9,64,073                      17,46,643 

                     35,67,479                       13,32,430 

39

4.14 Revenue from operations

Sr.no. ParticularsAs at 31st March, 

2019As at 31st March, 

2018

Revenue from services rendered 83,84,837               83,20,437               

TOTAL 83,84,837               83,20,437               

4.15 Other Incomes

Sr.no. ParticularsAs at 31st March, 

2019As at 31st March, 

2018

Interest on Income Tax Refund(2016‐17) 1,480                       ‐                          

TOTAL 1,480                       ‐                          

4.16 Employee Benefits

Sr.no. ParticularsAs at 31st March, 

2019As at 31st March, 

2018

Salary, Wages and Bonus 1,16,140                 1,36,286                

TOTAL 1,16,140                 1,36,286                

4.17 Finance Costs

Sr.no. ParticularsAs at 31st March, 

2019As at 31st March, 

2018

Interest Expense 2,35,549                 ‐                          

TOTAL 2,35,549                 ‐                          

(Amounts In Rs.)

(Amounts In Rs.)

(Amounts In Rs.)

(Amounts In Rs.)

40

4.18 Other Expenses

Sr.no. ParticularsAs at 31st March, 

2019As at 31st March, 

2018

Administrative  ExpensesPayment to Auditor As Auditor :        Statutory Audit Fees 30,000                     50,000                    Commission Expense                              ‐                      4,21,000 Legal, Professional and Consultancy Fees 3,35,500                 1,93,500                Deferred Revenue Expense written off 2,60,100                 2,60,100                Demat and other share trading charges ‐                           1,180                      Convertible Warrant Issue Fees 3,60,000                CDSL & NSDL Charges 1,15,000                 51,409                    Municipal Tax 32,126                     35,110                    Rent Expense 4,48,440                 4,27,875                ROC Charges 66,500                     7,000                      Service tax Expense 7,025                       49,484                    Loans & Advances Written off 39,99,740               49,65,206               Issuer Fees 22,500                     ‐                          Listing Fees 2,50,000                 2,50,000                Franchise fee 3,812                       21,188                    Interest Expense 36,495                     38,371                    Interest on Income Tax 28,266                    Penalty on BSE 1,82,000                 ‐                          Telephone expense 12,607                     12,649                    Other Administrative Expenses 38,738                     36,798                    Late Fees On GST 27,300                    Selling & Distribution Expenses 62,850                     58,407                    

TOTAL 63,18,999               68,79,277               

4.19 Earning Per Share

i)Net profit after tax as per statement of profit and loss attributable to Equity Shareholders (Rs. in Lakhs)

12,09,272                9,64,073                 

ii) Weighted Average number of equity shares used as denominator for calculating EPS 77,00,000                77,00,000               

iii) Basic & Diluted  Earning per share (Rs.) 0.16                          0.13                         iv) Face value per equity share (Rs.) 10                             10                            

(Amounts In Rs.)

(Amounts In Rs.)

41

Notes   to   the   f i nanc i a l   s t a tement s   

1. Basis of preparation of financial statements  (i) Statement of compliance and basis of preparation 

These  financial statements are prepared  in accordance with  Indian Accounting Standards (Ind AS),  the provisions of  the Companies Act, 2013  (“the Companies Act”), as applicable and guidelines issued by the Securities and Exchange Board of India (“SEBI”). The Ind AS are prescribed  under  Section  133  of  the  Act  read  with  Rule  3  of  the  Companies  (Indian Accounting  Standards)  Rules,  2015  and  Companies  (Indian  Accounting  Standards) Amendment  Rules,  2016.  The  financial  statements  correspond  to  the  classification provisions contained in Ind AS 1, “Presentation of Financial Statements”. For clarity, various items are aggregated  in the statements of profit and  loss and balance sheet. These  items are disaggregated separately in the notes to the financial statements, where applicable. All amounts  included  in  the  financial  statements  are  reported  in  Indian  rupees.  Due  to rounding off, the numbers presented throughout the document may not add up precisely to the totals and percentages may not precisely reflect the absolute figures. 

 (ii) Basis of measurement 

These financial statements have been prepared on a historical cost convention and on an     accrual basis. 

 (iii) Use of estimates and judgment 

   The  preparation  of  the  financial  statements  in  conformity  with  Ind  AS  requires     management to make judgments, estimates and assumptions that affect the application of accounting policies and  the  reported amounts of assets,  liabilities,  income and expenses. Actual results may differ from those estimates. Estimates and underlying assumptions are reviewed  on  an  ongoing  basis.  Revisions  to  accounting  estimates  are  recognized  in  the period in which the estimates are revised and in any future periods affected. In particular, information  about  significant  areas  ofestimation,  uncertainty  and  critical  judgments  in applying  accounting  policies  that  have  the  most  significant  effect  on  the  amounts recognized in the financial statements are included in the following notes: 

 (a) Revenue recognition: The Company uses the accrual method for income earned. 

 (b) Income taxes: Significant judgments are involved in determining the provision for income 

taxes including judgment on whether tax positions are probable of being sustained in tax assessments. A  tax assessment can  involve complex  issues, which can only be  resolved over extended time periods. 

  

   

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2. Significant accounting policies (i) Functional and presentation currency 

These financial statements are presented in Indian rupees, the national currency of India, which is the functional currency of the Company.  

(ii) Financial instruments (a) Non‐derivative financial instruments:  

Non derivative financial instruments consist of: • Financial assets, which include cash and cash equivalents, trade receivables, employee 

and other advances, investments in equity and debt securities and eligible current and noncurrent assets; 

• financial  liabilities,  which  include  long  and  short  term  loans  and  borrowings,  bank overdrafts, trade payables, eligible current and non‐current liabilities.  

Non  derivative  financial  instruments  are  recognized  initially  at  fair  value.  Financial  assets arederecognized when substantial risks and rewards of ownership of the financial asset have been transferred. In cases where substantial risks and rewards of ownership of the financial assets are neither transferred nor retained, financial assets are derecognized only when the Company has not retained control over the financial asset. Subsequent to initial recognition, non‐derivative financial instruments are measured as described below:  

A. Cash and cash equivalents The Company’s cash and cash equivalents consist of cash on hand and in banks.   For the purposes of the cash flow statement, cash and cash equivalents include cash on hand and in banks.  B. Investments  Investments in equity instruments: The  Company  carries  certain  equity  instruments which  are  not  held  for  trading.  The company has recorded  its  investment  in equity  instruments at  its historical cost. As no reliable  data was  available with  the  company  after  reasonable  efforts,  the  same  has been recorded at its historical cost. 

 C. Other financial assets: Other  financial  assets  are  non‐derivative  financial  assets  with  fixed  or  determinable payments that are not quoted in an active market. They are presented as current assets, except  for  those maturing  later  than  12 months  after  the  reporting  date which  are presented as non‐current assets.  The company has not opted for measuring such assets at amortized cost as there is no fixed expectation of that asset being recovered in future.  These  comprise  trade  receivables,  unbilled  revenues,  cash  and  cash  equivalents  and other assets. 

 D. Trade and other payables Trade  and  other  payables  are  initially  recognized  at  fair  value.  For  these  financial instruments,  the  carrying  amounts  approximate  fair  value  due  to  the  short  term maturity of these instruments.  

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 (b) Derecognition of financial instruments 

The Company derecognizes a  financial asset when  the  contractual  rights  to  the cash  flows from the financial asset expires or it transfers the financial asset and the transfer qualifies for derecognition. If the Company retains substantially all the risks and rewards of a transferred financial asset, the Company continues to recognise the financial asset and also recognizes a borrowing for the proceeds received. Certain financial  instruments have been derecognized in  event  of  non‐holding  of  control  over  such  asset  and  such  assets were  not  reasonably expected to fetch any future cash inflows, and the same have been written off.  A  financial  liability  (or  a  part  of  a  financial  liability)  is  derecognized  from  the  Company’s balance  sheet when  the  obligation  specified  in  the  contract  is  discharged  or  cancelled  or expires. 

 (iii)  Equity 

 (a) Share capital and share premium 

 The authorized share capital of  the Company as of March 31, 2019,  is Rs. 11,00,00,000/‐ divided  into  1,10,00,000  equity  shares  of  Rs.  10  each.  Par  value  of  the  equity  shares  is recorded as  share  capital and  the amount  received  in excess of par value  is  classified as share  premium.Every  holder  of  the  equity  shares,  as  reflected  in  the  records  of  the Company as of the date of the shareholder meeting shall have one vote in respect of each share held for all matters submitted to vote in the shareholder meeting. 

 (b) Retained earnings 

Retained earnings comprises of the Company’s undistributed earnings after taxes including earlier years’ carried forward retained earnings. 

 (iv) Impairment 

(A) Financial assets The Company applies the expected credit loss model for recognizing trade receivables and other financial assets. Expected credit  loss  is the difference between the contractual cash flows  and  the  cash  flows  that  the  entity  expects  to  receive  discounted  using  effective interest rate. 

 Loss  allowances  for  trade  receivables  and  lease  receivables  are measured  at  an  amount equal  to  lifetime expected credit  losses. Lifetime expected credit  losses are  the expected credit losses that result from all possible default events over the expected life of a financial instrument  Lifetime expected  credit  loss  is  computed based on a provision matrix which takes  in  to  the  account  historical  credit  loss  experience  adjusted  for  forward  looking information. 

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(v) Provisions Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. 

 The  amount  recognized  as  a  provision  is  the  best  estimate  of  the  consideration  required  to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.  

(vi) Revenue The Company derives revenue primarily from commission and interest. (a) Commission 

The  Company  recognizes  revenue  when  the  significantterms  of  the  arrangement  are enforceable, serviceshave been delivered and the collectability isreasonably assured.   

(b) Interest income In  absence  of  certainty  of  cash  inflows  of  such  interests,  the  company  has  not  adopted amortized  income model  to  record  such  income. The same has been  recorded on accrual basis at simple interest rate method. 

 (c) Others 

• Revenues are shown net of sales  tax, value addedtax, service  tax, GST and applicable discounts andallowances. 

 (vii) Income tax 

Income  tax  comprises  current  and  deferred  tax.Income  tax  expense  is  recognized  in  the statementof profit and loss. 

 Current income tax Current income tax for the current and prior periodsare measured at the amount expected to be  recoveredfrom  or  paid  to  the  taxation  authorities  based  on  thetaxable  income  for  the period. The tax rates and taxlaws used to compute the current tax amount arethose that are enacted  or  substantively  enacted  as  atthe  reporting  date  and  applicable  for  the  period. TheCompany  offsets  current  tax  assets  and  current  taxliabilities,  where  it  has  a  legally enforceable right toset off the recognized amounts and where  it  intendseither to settle on a net basis, or to realize the assetand liability simultaneously. 

 (viii) Earnings per share 

Basic earnings per share are computed using the weighted average number of equity shares outstanding during the period adjusted for treasury shares held. Diluted earnings per share is computed using the weighted‐average number of equity and dilutive equivalent shares outstanding during the period.

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3. Notes on Transition to Ind AS   These financial statements are prepared  in accordance with  Ind AS. For years up to and  including  the  year  ended March 31, 2019,  the Company prepared  its  financial  statements  in  accordance with   Indian GAAP (i.e. Previous GAAP). 

 Accordingly, the Company has prepared financial statements which comply with Ind AS for periods ending on March 31, 2019, together with the comparative period data as at and for the year ended March 31, 2018. In preparing these financial statements, the Company’s opening balance sheet was prepared as at April 1, 2016, the Company’s date of transition to Ind AS. 

  

4. We have not been able to verify the transactions in the current bank a/c no. 913020053289310 / with Axis bank, New Delhi branch. The present management of the company has informed us that the said banking account is not being operated by them but has been fraudulently operated upon by the old management. Further, the present management has informed us that the company has not accounted for any transactions in books of account of the company that have taken place and operated upon by  the old management. We draw  the attention  towards  the  following  facts  in respect of above bank account. a) The management of the company has changed with effect from 16/03/2017 persuant to SEBI 

(substantial acquisition of shares and takeover) regulations, 2011. b) The present management had passed a resolution to the effect that the old account of the 

company being held with Axis bank, New Delhi be discontinued and amount  if any  in  that account held with Axis bank current account no. 913020053289310 may be transferred to a bank account opened by the present management of the company with Yes Bank, C. G. Road branch, Ahmedabad current A/c no. 000763700001027. The said resolution was submitted to the Axis bank on 31/03/2017. 

c) However,  transactions  have  continued  to  take  place  in  the  above  current  account  of Axis bank, which  as per  the  information provided by  the present management, have not been carried  out  by  them,  but  have  been  carried  out  by  the  old  management  consisting  of following members of board of directors 

i) LavekushGadiya ii) SnehlataGadiya iii) RamkaranHirvey iv) Kanhaiyalal v) SandipJaiswal 

The old board of directors consisting of names  from  (i)  to  (v) above have already  resigned from  the company w.e.f. 14‐11‐2016 and  in  respect of which necessary  forms have already been filed with MCA on 26‐11‐2016. 

d) The present management have served a notice dated 16‐10‐2017 to all the members of old management stating inter‐alia (1) that the present management became authorised to take over the management of the company on 16‐03‐2017, (2) that the present management has already passed a  resolution discontinuing  the above  current account with Axis bank and a copy of the said resolution has already been served upon Axis bank, (3) that however, certain 

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unauthorised  transactions  have  taken  place  from  above  Axis  bank  account,  New  Delhi branch,  (4)  and  that  the  present management  sees  that  a  scam  is  committed  by  the  old management by carrying out dubious  financial activities,  (5)  that  the present management has also  served  similar notice dt. 16‐10‐2017  to Axis bank  ltd., New Delhi branch and Axis bank ltd. at Indor, Mumbai and Ahmedabad. 

In the  light of above facts, we are unable to opine the nature of transactions and true and fair view of transactions which have taken place in the above bank account and not recorded in the books of accounts of the company by the present management. As such we are unable to express our  opinion  on  true  and  fair  view  of  banking  transaction  that have  taken  place  in  the  above account during the year under report. 

 5. Other Information to the Financial Statements  

5.1 Attention is invited to following observations:  

a. The company falls under the definition of an NBFC. Yet, the company has not obtained the licence of being an NBFC from respective authorities.   

b. The company has advanced loans to different parties in order to earn interest income. Out  of  those  advances,  a  considerable  sum  of  advances  are  disputed  and  the management  is not  in position  to give clear opinion on  its doubtfulness. The  interest income on such advances have been recorded for in the IND AS financial statements for the year under review. 

 5.2 The  Previous  year’s  figures  have  been  regrouped/  reclassified  wherever  necessary  to 

correspond with the current year classification/ disclosures.  

5.3 Related Party Disclosures As Per Ind AS 24   

Names of related parties and description of relationship from/ to which following transactions were entered during the year: 

   a) The related parties are :  Names of related 

parties  Nature of relationship 

Shri Ashish Joshi  Managing director ChetanChovatia  Director 

AddinFinserve Limited  Company whose promoters are the controlling individuals of the reporting entity Addin Power Limited  Company whose promoters are the controlling individuals of the reporting entity Hemant Palanpuri  Company Secretary ‐ Key Managerial Personnel Dhaval Parikh  Company Secretary ‐ Key Managerial Personnel Hinal Patel  Company Secretary ‐ Key Managerial Personnel 

 

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b) The Company has  the  following  related party  transactions  for  the year ended March 31, 2019 and 2018: Sr. No.  Transaction  Name of person / 

entity Amount (Rs.) 

2019  2018 1  Rent Expense  Shri Ashish Joshi  4,48,440  4,27,875 2  Rent deposite  Shri Ashish Joshi  35,000  35,000 3  Loans received  Shri Ashish Joshi  23,04,371  8,50,176 4  Loans received  Chetan Chovatiya  ‐  10,00,000 

5  Commission income 

Addinfinserve Pvt. Ltd.  ‐  10,22,000 Addin Power Ltd. 15,03,945 9,00,930

6  Salary Expense  Hemant Palanpuri  ‐  1,05,000 7  Salary Expense  Dhaval Parikh  ‐  31,286 

 

              The Company has the following balances outstanding as of March 31, 2019 and March 31, 2018 

 Balances at the year end  Name of individual / entity 

Amount (In Rs.) 2019  2018 

Payables  Shri Ashish Joshi  25,67,479       3,32,430 Payables  Shri Chetan Chovatiya         10,00,000      10,00,000 

Receivables  Addin Power Ltd.  ‐  25,000 Receivables  Shri Ashish Joshi (Rent deposite)            35,000  35,000 

 Above  payables  are  in  nature  of  loans  advanced  by  the  directors  of  the  company. Receivables are in nature of Deposits lying with the above mentioned entity for becoming the channel partner of that entity. 

 5.4 Segment reporting: 

The main segment of the company is business commission segment. Also, company has earned interest income mainly from the finance advanced by the old management   

 For, S. D. Mehta & Co. Chartered Accountants (Registration No. 137193W)   

For and on behalf of the board   Nishtha Finance and Investment (India) Ltd.

 

Shaishav Mehta Partner Membership No.: 032891 

Ashish Joshi     Chairman & Managing Director  

DIN: 06894408 

ChetanChovatiyaDirector

DIN: 07542592

Place: Ahmedabad Date:  29th May, 2019    

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