Mar 31, 2015
We have audited the accompanying financial statements of HARIA APPARELS
LIMITED, which comprise the Balance Sheet as at March 31, 2015, the
Statement of Profit and Loss and Cash Flow Statement for the year then
ended, and a summary of significant accounting policies and other
explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the matters stated in 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 provision of the Act for safeguarding
the assets of the company and for preventing and detecting frauds and
other irregularities, selection and application of appropriate
accounting policies, making judgments and estimates that are reasonable
and prudent; and design, implementation and maintenance of 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.
Auditors' Responsibility
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 provision 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 financial control relevant to the Company's
preparation of the financial statements that give a true and fair view
in order to design audit procedures 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 management, as well as evaluating the overall
presentation 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.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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,
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
(b) in the case of the Statement of Profit and Loss, of the Loss for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors' Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Companies Act, we give in the
Annexure, a statement on the matters specified in paragraphs 3 and 4 of
the Order, to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
a. We have sought & 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, the Statement of Profit and Loss, and the 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
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e. On the basis of the written representations received from the
directors as on March 31, 2015, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2015,
from being appointed as a director in terms of Section 164(2) of the
Act.
f. 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 according to the explanations given to us;
i. The Company does not have any pending litigation which would impact
its financial positions.
ii. The Company does not have any long term contracts including
derivative contracts for which there were any material foreseeable
losses;
iii. There are no amounts which are required to be transferred to the
Investor Education and Protection Fund by the Company.
ANNEXURE TO THE AUDITORS' REPORT
Referred to in Paragraph 1 under heading "Report on Other Legal and
Regulatory Requirements" of our report of even date on the accounts for
the year ended March 31, 2015 of HARIA APPARELS LIMITED
(i) (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets on the basis of available information.
(b) The company has a regular programme of physical verification of its
fixed assets by which all fixed assets were verified in a phased
manner, designed to cover all the fixed assets over a period of three
years. In accordance with this programme, certain fixed assets were
verified during the year and no material discrepancies were noticed on
such physical verification. In our opinion, this periodicity of
physical verification is reasonable having regard to the size of the
company and nature of its assets.
(c) In our opinion and according to information and explanations given
to us, the Company has not disposed off a substantial part of its fixed
assets during the year and therefore, do not affect the going concern
status of the company.
(ii) (a) As informed to us, the inventory has been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable.
(b) The procedures explained to us, which are followed by the
management for physical verification of inventories, are in our opinion
reasonable and adequate in relation to the size of the company and the
nature of its business.
(c) In our opinion and according to the explanations given to us, the
company is maintaining proper records of its inventory. No material
discrepancies were noticed on such physical verification as compared to
the book records.
(iii) According to the information and explanations given to us, the
Company has granted loans, unsecured, to companies, firms or other
parties covered in the Register maintained under Section 189 of the
Act. The company has granted loan of Rs. 32,88,178/- during the year.
Outstanding amount of the said loan as on 31st March. 2015 is Rs.
NIL/-.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets and sale of goods. The activities of the
company involve purchase of inventory and sale of goods. During the
course of our audit, no major weakness has been noticed in the
aforesaid internal control systems.
(v) During the year under consideration, the company has not accepted
any deposits from the public in accordance with the provisions of
section 73 to 76 of the Act and the rules framed there under.
(vi) In our opinion and according to the information and explanation
given to us company is not required to maintain cost records specified
by the Central Government under sub-section (1) of section 148 of the
Act.
(vii) In our opinion and according to the information and explanation
given to us in respect of statutory and other dues :
(a) The Company has not been regular in depositing undisputed statutory
dues, including Income-tax, Service Tax, and any other material
statutory dues as applicable to it. According to the information and
explanation given to us, no undisputed amounts payable in respect of
outstanding statutory dues were in arrears as at March 31, 2015 for a
period of more than six months from the date they became payable.
(b) According to the information and explanations given to us and the
records of the company examined by us, there are no disputed dues in
respect of Income Tax.
(c) According to the information and explanation given to us there is
no amount is required to be transferred to investor education and
protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and the rules made thereunder.
(viii) The company has accumulated loss of Rs.1,95,12,382/- at the end
of financial year 2014-15 and the same is not more than fifty per cent
of its worth as on March 31, 2015. However the company has not incurred
cash loss during the year under consideration and in the immediately
preceding year.
(ix) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
financial institution or bank. The company did not have any outstanding
dues to any debenture holders during the year.
(x) In our opinion and according to the information and explanation
given to us the Company has given guarantees for loans taken by others
from bank or financial institutions. According to the information and
explanations given to us, we are of the opinion that the terms and
conditions thereof are not prima facie prejudicial to the interest of
the company.
(xi) In our opinion and according to the information and explanations
given to us, on an overall basis the term loans have been applied for
the purpose for which they were raised.
(xii) To the best of our knowledge and according to the information and
explanations given to us, no fraud on or by the Company, has been
noticed or reported during the year.
FOR KANAK RATHOD & CO.
CHARTERED ACCOUNTANTS
Firm Registration No.: 104700W
KANAK RATHOD
PROPRIETOR
M No. : 032833
DATE : 30/05/2015
PLACE : MUMBAI
Mar 31, 2014
We have audited the accompanying financial statements of HARIA APPARELS
LIMITED, which comprise the Balance Sheet as at March 31, 2014, the
Statement of Profit and Loss and Cash Flow Statement for the year then
ended and a summary of significant accounting policies and other
explanatory information.
Management''s Responsibility for the Financial Statements
Management of the company is responsible for 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 Standards referred to in sub-section
(3C) of section 211 of the Companies Act, 1956 ("the Act") read with
the General Circular No. 15/2013 dated 13th September 2013 of the
Ministry of Corporate Affairs in respect of section 133 of the
Companies Act, 2013 and in accordance with accounting principles
generally accepted in India. This responsibility includes the design,
implementation and maintenance of internal control 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.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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 auditors'' 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 and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances but not for the
purpose of expressing an opinion on the effectiveness of the company''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation 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.
Opinion
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 Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) in the case of the Statement of Profit and Loss, of the Loss of the
Company for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors'' Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure, a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
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 Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956, read
with with the General Circular No. 15/2013 dated 13th September 2013 of
the Ministry of Corporate Affairs in respect of section 133 of the
Companies Act, 2013.
e. On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE INDEPENDENT AUDITORS REPORT.
Referred to in Paragraph 1 under Report on Other Legal and Regulatory
Requirements of our report of even date to the members of HARIA
APPARELS LIMITED on the financial statements the year ended on 31st
March, 2014. We report that:
(i) (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets on the basis of available information.
(b) The company has a regular programme of physical verification of its
fixed assets by which fixed assets were are verified in a phased
manner, designed to cover all the fixed assets over a period of three
years. In accordance with this programme, certain fixed assets were
verified during the year and no material discrepancies were noticed on
such physical verification. In our opinion, this periodicity of
physical verification is reasonable having regard to the size of the
company and nature of its assets.
(c) In our opinion and according to information and explanations given
to us, the Company has not disposed off a substantial part of its fixed
assets during the year and therefore, do not affect the going concern
status of the company.
(ii) (a) As informed to us, the inventory has been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable.
(b) The procedures explained to us, which are followed by the
management for physical verification of inventories, are in our opinion
reasonable and adequate in relation to the size of the company and the
nature of its business.
(c) In our opinion and according to the explanations given to us, the
company is maintaining proper records of its inventory. No material
discrepancies were noticed on such physical verification as compared to
the book records.
(iii) (a) According to the explanations given to us, the Company has
granted unsecured loans to three parties listed in the register
maintained under section 301 of the Companies Act, 1956. The maximum
amount involved during the year was Rs. 45,31,453/- and the year end
balance of the Loan granted to such parties was Rs.43,31,453/-.
(b) There are no terms and conditions fixed on loans given to the
parties listed in the register maintained under section 301 of the
Companies Act 1956, to that extent they are prejudicial to the interest
of the Company.
(c) According to the explanations given to us the company has taken
unsecured loans from four parties covered in the register maintained
under section 301 of the Companies Act, 1956. The maximum amount
involved during the year was Rs. 8,50,98,424/-. and the year end
balance of Loan taken from such parties was Rs. 8,41,86,766/-.
(d) There are no terms and conditions fixed on loans given to the
parties listed in the register maintained under section 301 of the
Companies Act 1956, to that extent they are prejudicial to the interest
of the Company.
(e) According to the explanations given to us, the rate of interest,
wherever charged, and the other terms and conditions of such loans are
not prima facie prejudicial to the interest of company.
(f) According to the explanations given to us, there is no overdue
amount for more than Rs. One Lakh.
(g) In our opinion and according to the information and explanations
given to us, the company is regular in repayment of loan and also
payment of interest wherever applicable.
(iv) In our opinion and according to the information and explanations
given to us, there exist an adequate internal control system
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and of services. During the course of our
audit, we have not observed any major weakness or continuing failure to
correct any major weakness in internal control system of the company in
respect of these areas.
(v) (a) In our opinion and according to the information and
explanations given to us, the transactions made in pursuance of
contracts or arrangements that need to be entered in the register
maintained under Section 301 of the Act have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which
appear reasonable as per information available with the company.
(vi) In our opinion and according to the information and explanations
given to us, the provisions of sections 58A and 58AA of the Companies
Act, 1956, and the Companies (Acceptance of Deposits) Rules  1975 are
not applicable to the company in the year under consideration.
(vii) In our opinion and as per the explanations given to us, the
company has an internal audit system commensurate with the size and
nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the notification of the Central Government for
maintainance of cost record under section 209(1)(d) of the Companies
Act, 1956 and on the basis of such review, we are of the opinion, that
primafacie, the prescribed accounts and records have been made and
maintained. We have not, however, carried out a detailed examination of
the records with a view to determine whether they are accurate or
complete.
(ix) I n respect of statutory dues:
(a) According to the information and explanations given to us and on
the basis of the records of the company, amounts deducted/accrued in
the books of accounts in respect of undisputed statutory dues
including, investor education protection fund, income tax, wealth tax,
service tax, cess and other material statutory dues applicable to it
has not been regularly deposited during the year with appropriate
authorities.
According to the information and explanations given to us, undisputed
amounts payable in respect of income tax and service tax were in
arrears as at 31st March, 2014 for a period of more than six months
from the date they became payable.
(b) According to the information and explanations given to us and the
records of the company examined by us, the disputed dues in respect of
Sales Tax and Income Tax are as under:
Sr. No. Name of the Statue Nature of dues Forum where
dispute is pending
1. Income Tax Act, 1961 Income Tax  The Hon''ble
F. Y. 1998-99, High Court,
1999-2000, 2000-2001. Mumbai
Name ofthe Staute Amount Rs.
Income Tax Act, 1961 1,54,00,000/-
(x) The Company does have accumulated losses of Rs.35,06,509/- at the
end of the financial year, however the same is not more than fifty
percent of its worth as on march 31,2014 and has incurred cash losses
during the financial year covered by our audit of Rs.80,64,583/- and
99,97,042/- in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
financial institution or bank.
(xii) According to the information and explanations given to us and
records produced before us, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
(xiii) In our opinion, the company is not a chit fund or a nidhi mutual
benefit fund / society. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
company.
(xiv) According to the information and explanations given to us, the
company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly, the provisions of clause 4(xiv) of the
Companies (Auditor''s Report) Order, 2003 are not applicable to the
company.
(xv) In our opinion and according to the information and explanations
given to us the Company has given guarantees for loans taken by others
from bank or financial institutions. According to the information and
explanation given to us, we are of the opinion that the terms and
conditions thereof are not prima facie prejudicial to the interest of
the company.
(xvi) According to the information and explanations given to us, the
term loans raised have been applied for the purpose for which they were
raised.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet and the cash flow of the
company, no short-term funds have been used to finance long-term assets
and vice versa.
(xviii) According to the information and explanations given to us, the
company has not made preferential allotment of shares to Promoters and
Promoters group covered in the register maintained under section 301 of
the Act.
(xix) The company has not received any money through Public Issue of
Debentures.
(xx) The company has not raised any money by public issues during the
year.
(xxi) During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of any such case by the Management.
For KANAK RATHOD & CO.
CHARTERED ACCOUNTANT
Firm Registration No. 104700W
KANAK RATHOD
PROPRIETOR
M.No. 032833
Place: MUMBAI
Date: 30/05/2014