Mar 31, 2018
INDEPENDENT AUDITOR''S REPORT
To the Members of Himalya International] Limited
Report on the Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Himalaya Food International Limited (âthe Company) which comprise the balance sheet as at 31 March 2018, the statement of profit and loss, the cash flow statement and the statement of changes in Hquity 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 (âthe Actâ) with respect to the preparation of these standalone Ind AS 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 Indian Accounting Standards (Ind AS) referred to in section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules 2015 as amended. This responsibility also includes maintenance of adequate accounting record in accordance with the provision of the Act for safeguarding the assets of the Company and for preventing and detecting fraud 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 adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the account records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit. 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 ot the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Companyâs preparation and fair presentation of the standalone Ind AS 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 entityâs internal control. An audit also includes evaluating the appropriateness ot accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence wc 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 standalone Ind AS 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::
(i) in the ease of the balance sheet, of the state of affairs of the Company as at 31 March 2018;
(ii) in the case of the statement of profit and loss, of the loss for the year ended on that date; and
(iii) 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
As required by the Companies (Auditor''s Report) 0rder,2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure âAâ statement on the matters specified in the paragraph 3 & 4 of the order ,to the extent applicable.
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;
e. 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 standalone Ind AS Financial statements comply with the Accounting Standards referred to in Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules 2015 as amended.
e. On the basis of written representations received from the directors as on 31 March 2018. and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2018, from being appointed as a director in terms of Section !64(2)of the Act.
f. We are enclosing herewith a report in âAnnexure Bâ for our opinion on adequacy of internal financial controls system in place in the company and the operating effectiveness of such controls;
g. With respect to the other matters to be included in the Auditors 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:
(1) The Company has disclosed the impact of pending litigation on its financial position in its standalone Ind AS financial statements Refer Note 10 to the standalone Ind AS financial statements. ,
(2) The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, and as required on long-ter contracts including derivative contracts.
(3) There were no amounts which required to be transferred by the Company to the Investor Education and Protection Fund.
ANNEXURE ''A''
(Referred to under âReport on Other Legal and Regulatory Requirements'' of our Report of even date)
Report on Companies (Auditorâs Report) 0rder,20!6 (âthe Order'') issued by the central Government in terms of Section 143(11) of the companies Act, 2013 (âthe Actâ) of Himalya International Limited (''the Companyâ)
I. a.) The company has generally maintained proper records showing full particulars, including quantitative details and situation of fixed assets. -
b.) According to information and explanation given to us there is a regular programme of physical verification of these fixed assets by the management which in our opinion is reasonable having regard to size of the company and nature of its assets. As informed to us no material discrepancies were noticed on such verification.
c.) As informed to us and as verified by us during the course of our audit the title deeds on immovable properties are held in name of company as at the balance sheet date.
ii. As informed to us the inventories were physical verified during the year by the management at reasonable intervals and no material discrepancies were noticed on physical verification.
iii. As informed to us the company has granted unsecured loans to companies covered in the register maintained under section 189 of the Companies Act, 2013. In respect of such loans:
(Rs 000'')
Name of the company |
Nature of loan |
Balance as on 31.03.2018 |
Maximum Amount Due |
AP.T Laboratories Ltd. |
Advance against purchase |
568 |
568 |
a.) As informed to us and as verified by us the terms and condition of grant to such loans are not prejudicial to the interest of the company.
b.) Repayment of the principle amount and payment of interest on such loans has not been stipulated, as it is in the nature of âAdvance against purchasesâ
c.) Not Applicable
iv. According to the information and explanation given to us, the company has complied with the provision of section 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities, as applicable during the year.
v. The company has not accepted any deposits during the year and does not have any unclaimed deposits as at March 31, 2017 and therefore, the provisions of clause 3(v) of the Order are not applicable to the Company.
vi. Reporting under clause 3(vi) of the order is not applicable as the companyâs business activities are not covered by the companies (Cost Record and Audits) Rules, 2014.
vii.a.) According to records of the company and information and explanation given to us the company has generally been regular in depositing undisputed statutory dues including provident fund, employees'' state insurance, income-tax, sales-tax, service-tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with the appropriate authorities.
According to information and explanation given to us there are no outstanding statutory dues as referred above as at the last day of the financial year under audit for a period of more than six months from the date they become payable as below:
Particulars of Dues |
Amount Rs Lacs |
PF |
4 |
ESI |
8 |
where the dispute is pending are given bellow:
Particulars of dues Amount R,''Lacs Year Excise Duty 5.78 1999-2000 Tnbuual |
instrument) or term loans and hence reporting under clause 3(ix)of the Order ts not applicable.
X. According to the information and explanation given to us there has been no fraud noticed or reported during the year by mm nan v or on the company by its officers or employees.
xi In our opinion the managerial remuneration paid/provided during the year is in accordance with requisite approvals mandated by the provisions of section 197 read with Schedule V of Companies Act 2013.
xii Thecompany is not anodic company and hence reporting under clause 3(xu) of the Order is not applicable.
xiii According to the information and explanation given to us the Company is in compliance with Section 177 and 188 of the Act, where applicable, for all transactions with the related parties and details of related party transactions have been disclosed m the financial statements as required by the applicable accounting standards.
xiv. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review.
xv. As informed to us, during the year the company has not entered into any non-cash transactions with any of its directors or persons connected with the directors. ,
xvi. The Company is not required to got registered under section 45-1A of Reserve Bank of India Act 1934.
ANNEXURE ''B'' TO THE INDEPENDENT AUDITORSâ REPORT
Referred to in paragraph 3(f) to âReport on Other legal and regulatory requirementâ of the independent Auditors'' Report of even date to the members of Himalaya Food International Limited on standalone Tnd AS financial statement for the year ended March 31,2018
Report on the Internal Financial Controls under clause (i) of Sub Section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Himalaya Food International Limited (âthe Companyâ) as of March 31,2018 in conjunction with our audit of the standalone financial statement 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 base 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 on India. 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 base on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) 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 on 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 respect. 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 standalone Ind AS financial statements, whether due to fraud or error. We believe that the audit evidence I/we have obtained is sufficient and appropriate to provide a basis for out audit opinion on the Companyâs internal financial controls system over financial reporting.
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 arc being made only in accordance with authorization 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 statement.
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 March 31, 2018. based on the internal control over financial reporting criteria established by the company considering the essential components of internal controls stated in Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Satnam Associates.
Firm Registration No.009870C
Chartered Accountants
(Satnam Singh)
Proprietor, FCA.
M No.79646
Place: Dehradun
Dated: 31.05.2018
Mar 31, 2016
Report on the Financial Statements
We have audited the accompanying standalone financial statements of Himalya International Limited (âthe Company) which comprise the balance sheet as at 31 March 2016, the statement of profit and loss and the cash flow statement for the year then ended and a summary of significant accounting policies and other explanatory information.
MANAGEMENTâS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
Management is responsible for the matters stated in Section 134(5) of the Companies Act,2013 (âthe Actâ) 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 referred to in section 133 of the Act, read with rule 7 of the Companies (Accounts) Rules 2014. This responsibility also includes maintenance of adequate accounting record in accordance with the provision of the Act for safeguarding the assets of the Company and for preventing and detecting fraud 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 adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the account 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.
AUDITORâS 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 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 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 entity''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 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:
(I) in the case of the balance sheet, of the state of affairs of the Company as at 31 March 2016;
(ii) in the case of the statement of profit and loss, of the loss for the year ended on that date; and
(iii) 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
As required by the Companies (Auditor''s Report) Order,2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure âAâ statement on the matters specified in the paragraph 3 & 4 of the order ,to the extent applicable.
As required by C&AG of India through directions/sub-directions dated 11.12.2015 and 29.04.2016 and issued under Section 143(5) of the Act, on the basis of written representation received from the management, we give our report on the matter specified in the Annexure âBâ attached
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 standalone financial statements comply with the Accounting Standards referred to in Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules ,2014.
e. On the basis of written representations received from the directors as on 31 March 2016, and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2016, from being appointed as a director in terms of Section 164(2) of the Act.
f. We are enclosing herewith a report in âAnnexure Bâ for our opinion on adequacy of internal financial controls system in place in the company and the operating effectiveness of such controls;
g. With respect to the other matters to be included in the Auditors 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:
(1) The Company has disclosed the impact of pending litigations on its financial position in its financial statements as referred to in Note 27.16 to the financial statements
(2) The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any , and as required on long-term contracts including derivative contracts.
(3) There were no amounts which required to be transferred by the Company to the Investor Education and Protection Fund.
ANNEXURE ''A''
(Referred to under ''Report on Other Legal and Regulatory Requirements'' of our Report of even date)
Report on Companies (Auditor''s Report) Order,2016 (''the Order'') issued by the central Government in terms of Section 143(11) of the companies Act, 2013 (''the Act'') of Himalya International Limited (''the Company'')
I. a.) The company has generally maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b.) According to information and explanation given to us there is a regular programme of physical verification of these fixed assets by the management which in our opinion is reasonable having regard to size of the company and nature of its assets. As informed to us no material discrepancies were noticed on such verification.
c.) As informed to us and as verified by us during the course of our audit the title deeds on immovable properties are held in name of company as at the balance sheet date.
ii. As informed to us the inventories were physical verified during the year by the management at reasonable intervals and no material discrepancies were noticed on physical verification.
iii. As informed to us the company has granted unsecured loans to companies covered in the register maintained under section 189 of the Companies Act, 2013. In respect of such loans:
(Rs ''000'')
Name of the company |
Nature of loan |
Balance as on 31.03.2016 |
Maximum Amount Due |
APJ Laboratories Ltd. |
Advance against purchase |
56,562 |
56,562 |
a.) As informed to us and as verified by us the terms and condition of grant to such loans are not prejudicial to the interest of the company.
b.) Repayment of the principle amount and payment of interest on such loans has not been stipulated, as it is in the nature of âAdvance against purchasesâ
c.) Not Applicable
iv. According to the information and explanation given to us, the company has complied with the provision of section 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities, as applicable during the year.
v. The company has not accepted any deposits during the year and does not have any unclaimed deposits as at March 31, 2016 and therefore, the provisions of clause 3(v) of the Order are not applicable to the Company.
vi. Reporting under clause 3(vi) of the order is not applicable as the company''s business activities are not covered by the companies (Cost Record and Audits) Rules, 2014.
vii. a.) According to records of the company and information and explanation given to us the company has generally been regular in depositing undisputed statutory dues including provident fund, employees'' state insurance, income-tax, sales-tax, service-tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with the appropriate authorities.
According to information and explanation given to us there are no outstanding statutory dues as referred above as at the last day of the financial year under audit for a period of more than six months from the date they become payable.
b.) As certified by the management on which we have relied upon the dues of income tax or sale tax or service tax or duty of custom or duty of excise or value added tax or cess which have not been deposited on account of dispute and the forum where the dispute is pending are given bellow:
Particulars of does |
|
Amount Rs. ''000â |
Financial Y ear to which amount relates |
Forum where dispute Is pending |
Excise Duty |
|
378 |
1999-3000 |
Tribunal |
Income Tax Demand |
|
152853 |
2012-13 |
CIT (Appeals) |
viii. Based on our audit procedure and in accordance with the information and explanation given to us by the company has not defaulted in repayment of dues to banks. The company does not have any loans or borrows from financial institutions or government and has not issued any debentures.
ix. The company has not raised any money during the year by way of initial public offer or further public offer (including debts instrument) or term loans and hence reporting under clause 3(ix) of the Order is not applicable.
x. According to the information and explanation given to us there has been no fraud noticed or reported during the year by the company or on the company by its officers or employees.
xi. In our opinion the managerial remuneration paid/provided during the year is in accordance with requisite approvals mandated by the provisions of section 197 read with Schedule V of Companies Act 2013.
xii. The company is not a nidhi company and hence reporting under clause 3(xii) of the Order is not applicable.
xiii. According to the information and explanation given to us the Company is in compliance with Section 177 and 188 of the Act, where applicable, for all transactions with the related parties and details of related party transactions have been disclosed in the financial statements as required by the applicable accounting standards.
xiv. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Further the Company has converted 28,50,604 Share Warrants of Rs.10/- each into Equity Shares of 28,50,604 of Rs. 10 each at a premium of Rs. 1/- each, as per the Scheme approved by BSE.
xv. As informed to us, during the year the company has not entered into any non-cash transactions with any of its directors or persons connected with the directors.
xvi. The Company is not required to get registered under section 45-IA of Reserve Bank of India Act 1934.
For Anujeet Dandona & Co.
Firm Registration No.006118C
Chartered Accountants
Sd/-
(Anujeet Singh)
Proprietor , FCA.
M No.73662
Place: Dehradun
Dated: 30.05.2016
Mar 31, 2015
We have audited the accompanying financial statements of Himalya
International Limited ("the Company") which comprise the balance sheet
as at 31 March 2015, the statement of profit and loss and the 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
The Company's Board of Directors 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 referred to in
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
fraud and other irregularities, selection and application of
appropriate accounting policies, making judgements 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 account
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.
Auditor's' 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 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 the 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, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial control system over financial reporting and the operating
effectiveness of such controls. 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 presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our qualified audit opinion on the
standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the Basis for Qualified Opinion paragraph above, the
aforesaid stand alone 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 31st March, 2015,
and its loss and its 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 Act, we give in the Annexure a
statement on the matters specified in paras 3 and 4 of the said Order,
to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations
which to the 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 standalone 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 written representations received from the directors
as on 31 March 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 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 Auditors
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 has disclosed the impact of pending litigations on its
financial position in its financial statements as referred to in Note
28.4 to the financial statements.
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
and as required on long-term contracts including derivative contracts.
iii. There were no amounts which were required to betransferred to the
Investor Education and Protection Fund by the Company.
Referred to in paragraph 1 under 'Report on Other Legal and Regulatory
Requirements' of our Independent Auditor's' Report of even date to the
members of Himalya International Limited on the financial statements
for the year ended 31st March, 2015
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
our audit, we report that:
(i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
(b) As explained to us, fixed assets have been physically verified by
the management during the year in accordance with the phased programme
of verification adopted by the management which, in our opinion,
provides for physical verification of all the fixed assets at
reasonable intervals. According to the information and explanations
given to us, no material discrepancies were noticed on such
verification.
(ii) In respect of its inventory:
(a) As explained to us, the inventories of finished goods,
semi-finished goods, stores, spare parts and raw materials were
physically verified at regular intervals by the Management.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
© In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories. The discrepancies noticed on physical verification of
stocks as compared to book records were not material and have been
properly dealt with in the books of account.
(iii) In respect of loans, secured or unsecured, granted to the parties
covered in register maintained under section 189 of the Companies Act
2013:
(a) According to the information and explanations given to us, the
Company has granted loans to companies, firms or other parties covered
in the Register maintained under Section 189 of the Companies Act, 2013
as under.
Name of the company Nature of loan Balance as a Maximum Amount
31.03.2015 Due during FY
APJ Laboratories Ltd. Advance against 56,179 58,030
purchase
Doon Valley Foods
Pvt Ltd. Advance against 1,279 47,015
purchase
(a) The principal amounts and interest are being received regularly as
per stipulations.
(b) There is Nil overdue amount as regards aforesaid loans.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of inventory, fixed assets and for the sale
of goods. During the course of our Audit, we have not observed any
continuing failure to correct major weaknesses in internal control.
(v) The Company has not received any public deposits during the year.
(vi) As informed to us, the Central Government has not prescribed
maintenance of cost records under sub-section (1) of Section 148 of the
Act, in respect of the activities carried on by the Company.
(vii) In respect of statutory dues:
(a) According to the records of the Company and information and
explanations given to us, the Company has not been regular in
depositing
undisputed statutory dues. Pending amounts are as under:
Particulars Amount Due Rs. '000
Tax Deducted at Source 5,126
Employees State Insurance 846
Employees provident Fund 2,189
(b) According to the information and explanations given to us, the
disputed amounts payable in respect of Excise Duty dues as at 31 March,
2015 for a period of more than six months from the date they became
payable, is as under:
Particulars of dues Amount Rs. '000' Period to which Forum where
amount relates dispute is
pending
Excise Duty 378 1999-2000 Tribunal
(c) There were no amounts which required to be transferred by the
Company to the Investor Education and Protection Fund.
(viii) The Company does not have the accumulated losses at the end of
financial year. The Company has incurred a Cash loss of Rs.26.93 Crore
during the financial year covered by our Audit and Rs. Nil in the
immediately preceding financial year.
(ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
financial institutions, banks and debenture holders. The loans were
renewed & restructured under the Joint Lending Forum and there is no
repayment of Term Loan till 31.12.2015, also the interest on loan is
not to be paid till 31.12.2015 and is to be converted into FITL.
(x) In our opinion, and according to the information and the
explanation given to us, the Company has given guarantee in connection
with loans taken by others from banks or financial institutions,
amounting to Rs 5.75 Crore issued to Allahabad Bank, Chandigarh, in
case of current outstanding of Rs 1.25 Crore of Doon Valley Foods Pvt.
Ltd. In our opinion, and according to the information and the
explanation given to us, the terms and conditions of the guarantees
given are not prejudicial to the interest of the Company.
(xi) The term loans taken by the Company 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 by the Company and no material fraud
on the Company has been noticed or reported during the year.
For Anujeet Dandona & Co.
Chartered Accountants
Firm Registration No.006118C
(Anujeet Singh)
Proprietor, FCA.
Membership No.73662
Place: Dehradun
Dated: 30.05.2015
Mar 31, 2014
We have audited the accompanying financial statements of Himalya
International Limited ("the Company!]) which comprise the balance sheet
as at 31 March 2014, the statement of profit and loss and the cash flow
statement for the year thenvended and a summary of significant
accounting ¦ policies and other explanatory information.
Management''s Responsibility for the Financial Statements .
Management 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 sectipn 211
Of the Companies Act, 1956 ("the Act") read with the General Circular
15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in
respect'' of Section 133 of the Companies Act, 2013. 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 duetofraudorerror.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. Wexonducted 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 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 Jo 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 entity''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§ufficient and
appropriate to provide a basis for our audit opinion.
Basis for Qualified Opinion
The Company had finished goods valued at Rs. 2471.15 Lakhs lying at a
warehouse in the United States of America. These goods were destroyed
in a fire which broke out in the warehouse on September 2,2013. These
goods were not covered by any insurance taken out by the Company. The
Company has preferred a claim against the warehouse, which has not been
accepted. The management is of the opinion that it will realise the
value of stqcks from the warehouse owner,once the insurers of the
warehouse owner, settle the claim of the latter. Currently, the cause
of fire is under investigation. In view of the absence of an accepted
and actionable claim, we are unable to express an opinion on the
recoverability of the claim of Rs. 2471.15 Lakhs shown as "Considered
Good" by the Company. [Also see Note 20 forming-part of the financial
statements under review] Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the Basis for Qualified Opinion paragraph, 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 lndia:
(I) ln the case of the balance sheet,of the state of affairs of the
Company as at 31March 2014;
(ii) in the case of the statement of profit and loss, of the loss for
the year ended on that date; and
(iii) in the case of the cash flow statement,of the cash flows for the
year ended on that date. Emphasis of Matter
Withoutqualifyingouropinion, we draw attention to:
The Company had on 07.10.2011 set up a joint venture company with
Simplot Inc of USA by the name of Himalya Simplot Private Limited (or
"JV") and invested a sum of Rs. 11,49,36,000 in 22,79,966 equity shares
of Rs-. 10 each of this JV. As a measure of abundance prudence, the
Company has created a provision for diminution of the entire value of
this investment in the year under review and charged this to the
statement of profit and ioss as an Extra-ordinary item on the grounds
that the JV has ceased operations ,it is insolvent and cannot be
revived. In the absence of audited financial statements of the JV or
other corroborative evidence, we are unable to confirm that there is a
permanent diminution in the value of the investment and are unable to
express an opinion on the provision made for such a permanent
diminution of Rs. 11,49,36,000 and its impact on the
profit for the year.
Also see Note l3 forming part of the financial statements underre view]
(ii) The Company has written off of expired finished goods valued at
Rs. 1576.66 Lakhs during the year under review. These finished goods
had been produced in earlieryearsforthe joint venture, Himalya Simplot
Private Limited, but were lying with the Company as the joint venture
had not placed orders and taken delivery. {Also see Note 16 forming
part of the financial statements under review] (
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor^ Report) Order, 2003 ("the
Order"), as amended, issued by the Central Goyernment 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,were portthat:
a. we have obtained all the information and explanations which to the
best of ourknowledge and belief were necessary for the purpose of
ouraudit; .
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 balancl 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
sub-section (3C) of section 211 of the Companies Act, 1956 read with
the General Circular 15/2013 dated 13 September 2013 of the Ministry of
Corporate Affairs in respect of Sectionl 33 of the Companies Act,2013;
and
e. on the basis of written representations received from the directors
as on 31 March 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Referred to in paragraph 3 of our report of even date .
(I( a) TheCompanyhas maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) All the assets have not been physically verified by the management
during the year but there is a regular programme of verification which,
in our opinion is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed on
such verification.
(c) According to the information and explanations given to us, the
company has not disposed off substantial part of its fixed assets
duringtheyear.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed, by
the management are reasonable and adequate in relation tothesizeof
the company and the nature of its business.
(c) The company is maintaining proper records of inventory. The
discrepancies-noticed on verification between the physical stocks and
the book records were not material.
(iii) (a) The company has granted loans to other companies, firms or
other parties covered in the register maintained under section 301
of the companies Act,1956as under:
(Rs''000'')
Name of the company Nature of loan Balance as Maximum Amount
on 31.03.2014 Due
APJ Laboratories
Ltd. Advance against
purchase 58030 58030
Doon Valley Foods
Pvt Ltd. Advance against
purchase 47015 47015
(i) The terms of the loans are not prejudicial to the interest of the
company.
(ii) There payment of principal and interest,wherever applicable,is
as per terms and conditions.
(iii) Not applicable in terms of observationat (iii)(a)supra.
(b) Further, The company has taken Joans from other companies, firms
or other parties covered in the register maintained under
section 301 of the Companies Act,1956 as under: .
(Rs''000'')
Name of the company Nature of loan Balance as
on 31.03.2014 Maximum
Amount Due
Himalya Carbonates
Pvt Ltd. Short term advance 1748 1748
(i) The terms of the loans are not prejudicial to the interest of the
company.
(ii) The repayment of principal and interest, wherever applicable, is
as per terms and conditions.
(iii) Not applicable interms of observation at (iii)(a)supra.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and nature of its business
with regard to purchases of inventory, fixed assets and with
regardtothesaleofgoods. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses
(iv)Internal controls.
(v) (a) Accordingto the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
registers maintained under section 301 of the Companies Act, 1956, have
been so entered.
In bur opinion and according to the information and explanation given
to us, the transactions made in pursuance of contracts or arrangements
entered in the register maintained under section 301 of the Companies
Act, 1956 and exceeding in value of Rs. 5 lacs, in respect of any party
duringtheyear, have been made, keeping in view surrounding
circumstances, and quantum of transaction, at prices which are
reasonable having regard to the prices prevailing in the market at the
relevant time for similartransactions ''
(vi) In our opinion and according to the information and explanations
given to us, the company has not accepted any loans/deposits from
public falling within the provisions of sections 58 A and 58 AA of the
Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules,
1975 with regard to the deposits accepted from the public. ''
(vii) lnour opinion,the company has an internal audit system commensurate
with the size and nature of itsbusiness. :
(viii) The Central Government Rules forthe maintenance of cost records
under section 209 (1) (d) of the Companies Act, 1956 are
notapplicableto the Company.
(ix) (a) The company is regular in depositing, with appropriate
authorities, undisputed statutory dues including income tax, sales tax,
and other statutory dues applicable to it, except TDSamounting to Rs.
62,22,000/-,payable fortheF.Yr 2013-14, which has not been deposited.
(b) According to the information and explanationsgiven to us, no
undisputed amounts payable in respect of income tax/
sales tax/excise duty which were in arrears, as at 31/03/14 for a
period of more than six months from the date they became payable
(c) According to the record of the company, the details of disputed
dues of income tax, Excise Duty and stamp duty are as under:
Particulars of dues Amount Rs000 ''Period to which Forum where dispute
RELATES amount pending
Income Tax 49,488 AY 2007-08 CIT (Appeal)
Income Tax 25,455 AY2008-09 CIT (Appeal)
Income Tax 1,01,866 AY 2009-10 CIT (Appeal)
Income Tax 31,626 AY 2010-11 CIT (Appeal)
Income Tax 34,564 AY 2011-12 CIT (Appeal)
eXXISE Duty 378 Tribunal
(x) The Company has no accumulated losses at the end of the financial
year and It has not incurred cash losses in the current year and
immediately preceding financial year.
(xi) Based on our audit procedures and according to the information and
explanations given to us, in our opinion the company has not defaulted
in repayment of dues to a financial institution, except overdue
interest of Rs 48 Lakhs payable to Exim Bank as on 31.03.2014,which
was paid on 07.05.2014.
(xii) The clause is not applicable to the company since the company has
notgranted 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 the clause 4
(xiii) of the Companies (Auditor''s Report) Order, 2003are not
applicable to the company.
(xiv) In our opinion, the company is not dealing in 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, the clause is not applicable to the company since
the company has not given guarantees for loans taken by others from
banksorfinancial institutions.
(xvi) ln our opinion,the term loans have been applied for the purpose
for which they were raised.
(xvii) According to the information and explanations given to usandon
an overall, examination ofthe balance sheet of the company, we report
that the no funds raised on short- term basis have been used for
long-term investment. No long - term funds have been used to finance
short-term assets except Pemnanemtworking capital.
(xviii) According to the information and explanations given to us, the
company had made the Preferential ailotment of shares to parties and
companies covered in the register maintained under Section 301 of the
Act i.e. as under:
Name ofthe allottee Number of shares Amount received
Promoter Group
(Himalya International Inc) 896100 9857100
(xix) According to the information and explanations given to us, during
the year covered by our audit report, the company has not issued any
debentures.
(xx) The company has not raised any money by public issue during the
year.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
Statement of Significant Accounting Policies 2 The notes referred
to above and notes to accounts form an integral part of the
balance sheet As per our report of even date
For Anujeet Dandona&Co.
Firm Registration No.006118C
Chartered Accountants
(Anujeet Singh)
Proprietor , FCA.
M No.73662
Place; Dehradun
Dated: 29.07.2014
Mar 31, 2012
1. We have audited the attached Balance Sheet of Himalya International
Limited as at 31st March 2012 and the Manufacturing and Profit and Loss
Account and Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
company's management. Our responsibility is to express an opinion on
these financial statements based on ouraudit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to above, we
report that:
(i) - We have obtained all the information and explanations, which to
the best of our knowledge and belief were necessary for the purposes of
ouraudit;
(ii) In our opinion, proper books of accounts as required by law have
been kept by the company so far as appears from our examination of
those books.
(iii) The Balance Sheet and the Manufacturing and Profit and Loss
Account and Cash Flow statement dealt with by this report are in
agreement with the books of account, of the company.
(iv) In our opinion, the Balance Sheet and Manufacturing Profit and
Loss Account and Cash Flow statement dealt with by this report comply
with the accounting standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956;
(v) On the basis of written representations received from the
directors, as on 31st March 2012 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31Ã March 2012 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956.
(vi) Subject to above and read together with other notes appearing in
schedule 18, the said statement of accounts, in our opinion and to the
best of our information and according to the explanations given to us,
give the information required by the Companies Act, 1956, 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 31!t March 2012.
(b) In the case of the Profit and Loss Account, of the profit for the
year ended on that date, and
(c) In the case of cash flow statement, of the cash flows of the year
ended on that date.
Referred to in paragraph 3 of our report of even date
(I) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the assets have not been physically verified by the management
during the year but there is a regular programme of verification which,
in our opinion is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed on
such verification.
(c) According to the information and explanations given to us, the
company has not disposed off substantial part of its fixed
assetsduringtheyear.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stCrCks and
the book records were not material.
(iii) (a) The company has granted loans to other companies, firms or
other parties covered in the register maintained under section 301 of
the Companies Act,1956 as under:
(Rs'OOO1)
Name of
the
company Nature of
loan Balance as on
31.03.2012 Maximum Amount Due
APJ
Laboratories
Ltd. Advance
against
purchase Rs.35031/- Rs.35031/-_
(i) The terms of the loans are not prejudicial to the interest of the
company.
(ii) The repayment of principal and interest, wherever applicable, is
as per term and conditions.
(iii) Not applicable in terms of observation at (iii) (a) supra.
(b) Further, The company has not taken loans from other companies,
firms or other parties covered in the register maintained under section
301 of the Companies Act,1956.Further Disclosure is not required.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and nature of its business
with regard to purchases of inventory, fixed assets and with regard to
the sale of goods. During the course of our audit, we have not observed
any continuing failure to correct major weaknesses in internal
controls.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to beentered into
registers maintained under section 301 of the CompaniesAct, 1956, have
been so entered.
(b) in our opinion and according to the information and explanation
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding in value of Rs. 5 lacs, in
respect of any party during the year, have been made, keeping in view
surrounding circumstances, and quantum of transaction, at prices which
are reasonable having regard to the prices prevailing in the market at
the relevant timeforsimilartransactions.
(vi) In our opinion and according to the information and explanations
given to us, the company has not accepted any loans/ deposits from
public falling within the provisions of sections 58 A and 58 AA of the
Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules,
1975 with regard to the deposits accepted from the public.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central Government Rules for the maintenance of cost records
under section 209 (1) (d) of the Companies Act, 1956 are
- not applicable to the Company.
(ix) (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including income tax, sales tax,
and other statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax/ sales tax/ excise
duty which were in arrears, as at 31/03/12 for a period of more than
six months from the date they became payable.
According to the record of the company, the details of disputed dues
of income tax, Excise Duty and stamp duty are as under:
Particulars
of dues Amount
Rs. '000' Period to
which amount
relates Forum where
dispute is pending
Income Tax 6751 AY 2003-04 CIT (Appeal)
Income Tax 5493 AY 2006-07 CIT (Appeal)
Income Tax 49488 AY 2007-08 CIT (Appeal)
Income Tax 89602 AY 2008-09 CIT (Appeal)
Income Tax 125432 AY 2009-10 CIT (Appeal)
Excise Duty 943 - Tribunal
Stamp Duty 565 - _High Court (H.P.)
(x) The Company has no accumulated losses at the end of the financial
year and It has not incurred cash losses in the current year and
immediately preceding financial year.
(xi) Based on our audit procedures and according to the information and
explanations given to us, in our opinion the company has not defaulted
in repayment of dues to a financial institution.
(xii) The clause is not appiicable to the company since the company has
not granted any loans and advances on the basis of security byway 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 the clause 4 (xiii)
of the Companies (Auditor's Report) Order, 2003 are not applicable to
the company.
(xiv) In our opinion, the company is not dealing in 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, the clause is not applicable to the company since
the company has not given guarantees for loans taken by others from
banks or financial institutions.
(xvi) In our opinion, the term loans have been applied for the purpose
for which they were raised.
(xviii) According to the information and explanations given to us, the
company had not made the Preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of
the Act i.e. as under.
(xix) According to the information and explanations given to us, during
the year covered by our audit report, the company has not issued any
debentures.
(xx) The company has not raised any money by public issue during the
year.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported '
duringthecourseofouraudit.
For ANUJEET DANDONA & Co.
Firm Registration N0.OO6II8C
Chartered Accountants
(ANUJEET SINGH)
Proprietor FCA.
M No.73662
Dated: 25.08.2012
Place: Dehradun
Mar 31, 2010
1. We have audited the attached Balance Sheet of Himalya International
Limited as at 3 V March 2010 and the Manufacturing and Profit and Loss
Account and Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perforin the audit to obtain reasonable assurance about whether
thefinancial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures irr the financial statements. Art audit also includes
assessing the accounting principles u^d and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order. 2003 issued
by the Central (iovernment of India in terms of sub-section (4 A) of
section 227 of the Companies Act. 1956. we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to above, we
report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit:
(if) In our opinion, proper books of accounts as required by law have
been kept by the company so far as appears from our examination of
those books.
(iii) The Balance Sheet and the Manufacturing and Profit and Loss
Account and Cash Flow statement dealt with by this report are in
agreement with the books of account, of the company.
(iv) In our opinion, the Balance Sheet and Manufacturing Profit and
Loss Account and Cash Flow statement dealt with by this report comply
with the accounting standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956;
(v) On the basis of written representations received from the
directors, as on 31st March 2010 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31s1 March 20ip from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956.
(vi) Subject to above and read together with other notes appearing in
schedule 18, the said statement of accounts, in our opinion and to the
best of our information and according to the explanations given to us,
give the information required by the Companies Act. 1956, 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 31st March 2010.
(b) In the case of the Profit and Loss Account, of the profit for the
year ended on that date, and
(c) In the case of cash flow statement, of the cash flows of the year
ended on that date.
Himalya International Limited, New Delhi. Referred to in paragraph 3
of our report of even date
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the assets have not been physically verified by the management
during the fear but there is a regular programme of verification which,
in our opinion is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed on
such verification.
(c) During the year the company has not sold off any part of fixed
assets.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) (a) The company has granted loans to other companies, firms or
other parties covered in the register maintained under section 301 of
the Companies Act,1956 as under:
APJ Laboratories Ltd. Rs.10828557/-
Himalya Carbonate (P) Ltd. Rs. 1, 90,865/-
(i) The terms of the loans are not prejudicial to the interest of the
company.
(ii) The repayment of principle and interest, wherever applicable, is
as per terms and conditions. (iii) Not applicable in terms of
observation at (iii) (a) supra.
(b) Further, The company has not taken loans from other companies
listed in the register maintained under section 301 of the Companies
Act, 1956, and or from the companies under the same management as
defined under section 370(IB) of the companies Act, 1956.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and nature of its business
with regard to purchases of inventory, fixed assets and with regard to
the sale of goods. During the course of our audit, we have not observed
any continuing failure to correct major weaknesses in; internal
controls.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the transactions (hat need to be entered into
registers maintained under section 301 of the Companies Act, 1956, have
been so entered.
(b) In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding in value of Rs. 5 lacs, in
respect of any party during the year, have , been made, keeping in view
surrounding circumstances, and quantum of transaction, at prices which
are reasonable having regard to the prices prevailing in the market at
the relevant time for similar transactions. Purchases of Raw Material
have been made from Doon Valley Foods Pvt. Ltd. amounting to Rs.
51,71.886/-.
(vi) In our opinion and according to the information and explanations
given to us, the company has not accepted any loans/ deposits from
public falling within the provisions of sections 58 A and 58 AA of the
Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules,
1975 with regard to the deposits accepted from the public.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central Government Rules for the maintenance of cost records
under section 209 (1) (d) of the (: Companies Act, 1956 are not
applicable to the Company.
(ix) (a) The company is not regular in depositing with appropriate
authorities undisputed statutory .dues including income tax, sales tax,
and other statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax/ sales tax/ excise
duty which were in arrears, as at 31/03/10 for a period of more than
six months from the date they became payable.
(x) The Company has no accumulated losses at the end of the financial
year and It has not incurred cash losses in the current year and
immediately preceding financial year.
(xi) Based on our audit procedures and according to the information and
explanations given to us, in our opinion the company has not defaulted
in repayment of dues to a financial institution.
(xii) The clause is not applicable to the company since 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 the clause 4 (xiii)
of the. Companies (Auditors Report) Order. 2003 are not applicable to
the company.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Companies (Auditors Report) Order,
2003 are not applicable to the company.
(xv) In our opinion, the clause is not applicable to the company since
the company has not given guarantees for loans taken by others from
banks or financial institutions.
(xvi) In our opinion, the term loans 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 of the company, we report
that the no funds raised on short- term basis have been used for
long-term investment. No long - term funds have been used to finance
short-term assets except Permanent working capital.
xviii) According to the information and explanations given to us, the
company had made the Preferential allotment of shares to parties and
companies covered in the register maintained under Section 301 of the
Act i.e. as under.
Name of the Parties No.ofShares
Man Mohan Malik 170000
Sangita Malik 490000
Purnima Malik 1290000
Himalya Carbonate Pvt. Ltd. 685000
Arjun Malik 750000
Sidharth Kakkar 800000
Anandita Kakkar 800000
(xix) According to the information and explanations given to us, during
the period covered by our audit report, the company has not issued any
debentures.
(xx) The company has not raised any money by public issue during the
year.
However during the year the company has raised an amount Rs. 24.65
crore by conversion of shares warrants to share issued on preferential
basis to certain parties.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or repotted during the
course of our audit.
For ANUJEET DANDONA & Co.
Chartered Accountants
(ANUJEET SINGH)
FCA.
M No.73662
Dated: 31.05.2010
Place: Dehradun
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