Mar 31, 2015
We have audited the accompanying financial statements of HARIA EXPORTS
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 EXPORTS LIMITED
(i) The Company does not have any fixed assets. Hence clause (ia) and
(ib) of paragraph 3 of the order are not applicable
(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. 3,38,34,485/- during the year.
Outstanding amount of the said loan as on 31st March 2015 is
Rs.3,52,79,197/-.
(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 been regular in depositing undisputed statutory
dues, including Provident fund, Income- tax, Sales Tax, Service Tax,
Cess 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, the disputed dues in respect of
Sales Tax and Income Tax are as under:
(c)
Nature of Dues Amount Period to which
amount relates
Income Tax 3,19,26,117/- F.Y. 1998-1999
F.Y. 1999-2000
F.Y. 2000-2001
Income Tax 27,030/- F.Y. 2010-2011
FEMA 27,19,901/- F.Y 2001-2002
Nature of Dues Forum where dispute is pending
Income Tax The Hon'ble High Court, Mumbai
Income Tax Commissioner of Income Tax Appeals
FEMA Appellate Tribunal for Foreign Exchange
(d) According to the information and explanation given to us there is
no amount 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 there under.
(viii) The company does not have any accumulated loss at the end of
financial year. However the company has incurred cash loss of Rs.
23,24,260/- during the financial year covered by our audit and Rs.
67,20,489 in the immediately preeceeding financial year.
(ix) According to the information and explanation given to us, the
Company did not have any dues to financial institutions, banks or
debentures holders.
(x) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
(xi) To the best of our knowledge and belief and according to the
information and explanations given to us, there have been no term loans
availed during the year.
(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 SUNDERJI GOSAR & CO.
CHARTERED ACCOUNTANTS
Firm Registration No.: 115543W
ALPESH SAVLA
PARTNER
M No. : 047828
DATE : 30/05/2015
PLACE : MUMBAI
Mar 31, 2014
We have audited the accompanying financial statements of HARIA EXPORTS
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 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 EXPORT
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 disposed off all of its fixed assets during the
year and therefore, has affected 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. However there are no closing stock at the end of the
year under consideration.
(iii) (a) According to the explanations given to us, the Company has
granted unsecured loans to five parties listed in the register
maintained under section 301 of the Companies Act, 1956. The maximum
amount involved during the year was Rs. 1,27,73,436/- and the year end
balance of the Loan granted to such parties was Rs.78,00,000/-.
(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 rate of interest,
wherever charged, and the other terms and conditions of such loans are
not prima facie prejudicial to the interest of company.
(d) According to the explanations given to us, there is no overdue
amount for more than Rs. One Lakh.
(e) According to the explanations given to us the company has taken
unsecured loans from two parties covered in the register maintained
under section 301 of the Companies Act, 1956. The maximum amount
involved during the year was Rs. 32,59,000/-. and the year end balance
of Loan taken from such parties was Rs. 22,59,000/-.
(f) 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.
(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 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 does
not apply 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.
(vii) 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.
(viii) In 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, provident fund, investor education protection fund, income
tax, wealth tax, sales tax, service tax, excise duty, 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 th
records of the company examined by us, there are no the disputed dues.
(ix) The Company does not have any accumulated losses at the end of the
financial year, However in the year under consideration and has
incurred cash losses of Rs.67,20,489/- during the financial year
covered by our audit and of 40,71,376/- in the immediately preceding
financial year.
(x) In our opinion and according to the information and explanations
given to us, the company has not taken any loan from financial
institutions, hence there is nothing to report under this clause
(vii) 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.
(viii) 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.
(ix) 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.
(x) According to the information and explanations given to us, the
Company has not given guarantees for loans taken by others from banks
or financial institutions in the year under consderation.
(xi) According to the information and explanations given to us, the
company has not raised any term loans in the year under consideration,
hence there is nothing to report under this clause
(xii) 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 funds taken in the year under consideration, hence there is
nothing to report under this clause
(xiii) 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.
(xiv) The company has not received any money through Public Issue of
Debentures.
(xv) The company has not raised any money by public issues during the
year.
(xvi) 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 SUNDERJI GOSAR & CO.
Chartered Accountants,
Firm Registration No. 115543W
DHAIRYA KENIA
PARTNER.
M. No. 140726
Place: MUMBAI
Date : 30/05/2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of HARIA EXPORTS
LIMITED ("the Company"), which comprise the Balance Sheet as at
March 31, 2013, and 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 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"). 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.
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:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
(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.
Other Matters
1. The Company has merged the plastic division on 26/03/2012 and
demerged the garment division on the same date. Accordingly the Current
year figures and Previous year figures are not comparable in respect of
the above.
2. The Company has sold the fixed assets of the plastic division in
the year under consideration and has closed the operations of plastic
division.
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 and on the basis of such
checks of the books and records of the company as we have considered
appropriate and according to the information and explanation given to
us, 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;
e. on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, 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 1 under Report on Other Legal and Regulatory
Requirements of our report of even date to the members of HARIA EXPORTS
LIMITED on the financial statements the year ended on March 31, 2013.
(i) (a) We have been informed that 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 programme of verification at the year
end which, in our opinion, is reasonable having regard to the size of
the company and the nature of its assets and as informed no material
discrepancies were noticed on such physical verification.
(c) In our opinion and according to information and explanations given
to us, there was disposal of fixed assets of plastic division during
the year resulting in closure of the plastic division.
(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.
(iii) (a) According to the explanations given to us, the Company has
granted unsecured loans to five parties listed in the register
maintained under section 301 of the Companies Act, 1956. The maximum
amount involved during the year was Rs. 43,13,436/- and the year end
balance of the Loan granted to such parties was Rs.41,73,436/-.
(b) 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. However the
company has not charged any interest.
(c) According to the explanations given to us, no repayment schedule
has been specified and accordingly the question of regularity in
repayment of principal amount, wherever applicable, does not arise.
(d) According to the explanations given to us, there is no overdue
amount for more than Rs.One Lakh.
(e) According to the explanations given to us the company has taken
unsecured loans from two parties covered in the register maintained
under section 301 of the Companies Act, 1956. The maximum amount
involved during the year was Rs.1,60,00,000/- and the yearend balance
of Loans taken from such parties was Rs.27,36,000.
(f) The terms and conditions fixed on loans taken from the parties
listed in the register maintained under section 301 of the Companies
Act 1956, are not prejudicial to the interest of the Company.
(g) In our opinion and according to the information and explanations
given to us, no repayment schedule has been specified and accordingly
the question of regularity in repayment of principal amount, wherever
applicable, does not arise.
(iv) In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory and fixed assets and
with regard to the sale of goods and 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 particulars of contracts or arrangements
referred to in Section 301 of the Act have been 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
prevailing market prices at the relevant time.
(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
maintenance 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) In respect of statutory dues:
(a) According to the information and explanations given to us, the
Company is regular in depositing with appropriate authorities
undisputed statutory dues including, provident fund, investor education
protection fund, income tax, sales tax, wealth tax, custom duty, excise
duty, cess and other material statutory dues applicable to it.
(b) According to the information and explanations given to us and the
records of the company examined by us, there are disputed dues of
Rs.1,54,00,000/- in respect of Income tax which related to the garment
division of the company pre demerger, on merger these dues are
transferred to the demerged division i.e Haria Apparels Limited.
(x) The Company has accumulated losses of Rs.56,01,258/- at the end of
financial year 2012-13 and the same is not more than fifty per cent of
its worth as on 31st March 2013. The company has incurred cash loss of
Rs. 40,71,376/- during the financial year covered by our audit.
(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
based on the documents 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) 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 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) In our opinion and according to the information and explanations
given to us, the term loans are being 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.
(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 SUNDERJI GOSAR & CO.
Chartered Accountants
Firm Registration No. 115543W
ALPESH K. SAVLA
Place : Mumbai Partner
Date : 30/05/2013 M. No. 047828
Mar 31, 2012
1. We have audited the attached Balance Sheet of Haria Exports Limited
as at 31st March, 2012, the Statement of Profit and Loss and also the
Cash Flow Statement for the year ended on that date annexed thereto, in
which are incorporated the Branch Accounts audited by us. These
financial statements are the responsibility of the Company''s
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
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. Audit included
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 subsection (4A)
of Section 227 of the Companies Act, 1956, and on the basis of such
checks as we considered appropriate and according to the information
and explanations given to us, we enclose in the Annexure a statement on
the matters specified in paragraphs 4 & 5 of the said Order.
4. Without qualifying our opinion we draw your attention to Note No. 1
of the financial statements regarding the Scheme of Arrangement between
Best Plastex Private Limited, the Amalgamating Company and the Haria
Exports Limited, the Amalgamated/Demerged Company and Haria Apparels
Limited, the Resulting Company. Sanctioned by the Hon''ble High Court
of Judicature at Bombay vide order dated 22nd March, 2012 Pursuant to
the scheme, all assets and liabilities have been recorded.
5. Further to our comments in the Annexure referred to in paragraph 3
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;
(II) 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;
(III) The Balance Sheet, the Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(IV) In our opinion, the Balance Sheet, the Statement of Profit and
Loss 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
31st 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) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts subject to Note No. 2
of the notes to accounts 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, 2012;
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 Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITOR''S REPORT
(Referred to in paragraph 3 of our report of even date)
I. a. We have been informed that the Company is maintaining 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 programme of verification at the year
end 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 physical verification.
c. During the year, the Company has not disposed off substantial part
of any of the Plant & Machinery and hence has not affected the going
concern status of the company
II. a. As informed to us, the inventory has been physically verified
by the Management during the year. In our opinion, the frequency of
verification is reasonable.
b. In our opinion, the procedures of physical verification of the
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 taken loan from three parties covered in the
register maintained under section 301 of the Companies Act, 1956 (which
is being updated). The maximum amount involved during the year was
Rs.284.42 Lacs and the year-end balance of loans taken from such
parties was Rs.150.00 Lacs. The Company has not granted any loans to
parties covered in the Register maintained under section 301 of the
Companies Act, 1956.
b. In our opinion and according to the explanations given to us the
rate of interest, wherever charged and other terms and conditions of
such loans are not prima facie prejudicial to the interest of company.
c. It is informed to us that there is no overdue amount of loans taken
from or granted to companies, firms or other parties listed in the
register maintained under section 301 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 the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods which are under review during the course of
our audit, we have not observed any continuing failure to correct major
weakness in internal control.
V a. According to the information and explanations given to us, we are
of the opinion that the transactions that need to be entered into the
register maintained under section 301 of the Companies Act, 1956 are in
the process of being updated.
b. In our opinion and according to the information and explanations
given to us, there are no transactions made in pursuance of contracts
or arrangements which are being entered in the register maintained
under section 301 of the Companies Act, 1956 exceeding the value of
rupees five lakhs in respect of any party during the year have been
made at prices which are reasonable having regard to the prevailing
market prices at the relevant time on cash basis.
VI. In our opinion and according to the information and explanations
given to us, Provisions of Section 58A and 58AA of the Companies Act,
1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard
to the deposits accepted from the public does not apply to the company
in the year under consideration.
VII. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business, which is under
review.
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 same.
IX. In respect of statutory dues :
a. According to information and explanation given to us, the Company
is regular in depositing with appropriate authorities undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employee''s State Insurance, Income Tax, Sales Tax,
Customs Duty, Excise Duty, Cess and other material statutory dues
applicable to it. According to the information and explanations given
to us, there are no undisputed amounts payable in respect of Income
Tax, Sales Tax, Wealth Tax, Custom Duty, Excise duty and cess which
were outstanding as at 31 st March, 2012.
b. According to the information and explanations given to us, there
are no dues of customs duty, excise duty, sales tax, wealth tax and
cess on account of any dispute.
Sr.
No. Name of the
Statue Nature of dues Forum where Amount
dispute is pending Rs. (in
Lacs)
1 Income Tax
Act, 1961 Income Tax - The Hon''ble 154.00
F. Y. 1998-99, High Court,
1999-2000, 2000-2001. Mumbai
X. The Company does have accumulated losses of Rs. 141.22 Lacs at the
end of Financial Year. The company has incurred cash loss of Rs. 58.78
lacs during the financial year covered by our report.
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. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other similar
securities.
XIII. In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore the provisions of clause
(XIII) of paragraph 4 of the aforesaid order 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 (XIV) of paragraph 4 of the aforesaid order are
not applicable to the Company.
XV The Company has given guarantees for loans taken by other companies
from banks or financial institutions. According to the information and
explanation given to us, we are of the opinion that the other terms and
conditions thereof are not prima facie prejudicial to the interests of
the company.
XVI. According to the information and explanations given to us, term
loan have been transferred to the demerged company as per the scheme of
demerger during the year.
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 no funds raised on short term basis have been used for long term
investments.
XVIII. The Company has not made any preferential allotment of shares
to Promoters and Promoter''s group covered in the registered
maintained under Section 301 of the Act. Therefore, the provisions of
clause (XVIII) of paragraph 4 of the aforesaid order are not applicable
to the Company.
XIX. The Company has not issued any debentures during the year under
audit. Accordingly the provisions of clause (XIX) of paragraph 4 of the
aforesaid order are not applicable to the Company.
XX. The Company has not raised any money by way of public issue during
the year. Therefore, the provisions of clause (XX) of paragraph 4 of
the aforesaid order are not applicable to the Company.
XXI. During the course of our examination of the books of accounts
carried out in accordance with Generally Accepted Auditing Practices,
we have neither come across any instance of fraud on or by the Company
nor have we been informed of any such case by the Management.
For SUNDERJI GOSAR & CO.
Chartered Accountants
Firm Registration No. 115543W
ALPESH K. SAVLA
Place : Mumbai Partner
Date : 30/05/2012 M. No. 047828
Mar 31, 2010
1. We have audited the attached Balance Sheet of Haria Exports Limited
as at 31 st March, 2010, the Profit and Loss Account and also the Cash
Flow Statement for the year ended on that date annexed thereto, in
which are incorporated the Branch Accounts audited by us. These
financial statements are the responsibility of the Companys
Management. Our responsibil- ity 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
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. Audit included
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 Manage- ment, 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 Government of India in terms of sub- section (4A) of
Section 227 of the Companies Act, 1956, and on the basis of such checks
as we considered appropriate and according to the information and
explanations given to us, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 & 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
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;
(II) 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;
(III) the Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(IV) In our opinion, the Balance Sheet Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in subsection (3C) of Section 211 of the
Companies Act, 1956
(V) On the basis of written representations received from the
Directors, as on31st March,2010and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2010 from being appointed as a Director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956.
(VI) In our opinion, since the requirements under section 441A of The
Companies Act, 1956 are not notified as on 31st March, 2010, reporting
on whether the cess payable under section 441A has been paid or not, is
not relevant for the Company, and
(VII) In our opinion and to the best of our information and according
to the explanations given to us, the said accounts subject to Note No.
P read in conjunction with Schedules No. 20 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 st 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 for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT.
(Referred to in paragraph 3 of our report of even date)
I. a. We have been informed that the Fixed Assets Register showing
full particulars, including quantitative details and situation of Fixed
Assets is maintained.
b. All the assets have not been physically verified by the management
during the year but there is a programme of verification at the year
end which, in our opinion, is reasonable having regard to the size of
the company and the nature of its assets.
c. During the year, the Company has not disposed off any of the Plant
& Machinery and hence has not affected the going concern status of the
company.
II. a. The inventory has been physically verified by the Management
during the year. In our opinion, the frequency of verification is
reasonable.
b. In our opinion, the procedures of physical verification of the
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 taken loan from five parties covered in the
register maintained under section 301 of the Companies Act, 1956(which
is being updated). The maximum amount involved during the year was Rs.
1464.46 Lacs and the year- end balance of loans taken from such parties
was Rs. 1464.46 Lacs. The Company has not granted any loans to parties
covered in the Register maintained under 301 of the Companies Act,
1956.
b. There are no terms and conditions fixed on which loans have been
taken from parties listed in the register maintained under section 301
of the Companies Act, 1956, to that extent they are detrimental to the
interests of the Company. Hence whether the company is regular in
repaying the principle amount could not be reported hereunder. As the
loans taken are interest free, clause for regular payment of interest
does not apply.
c. In the absence of any terms and conditions it is informed to us
that there is no overdue amount of loans taken from or granted to
companies, firms or other parties listed in the register maintained
under section 301 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 the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods which are under review. The Company is in
the process of rectifying the weakness in the internal control.
V (a) According to the information and explanations given to us, we are
of the opinion that the transactions that need to be entered into the
register maintained under section 301 of the Companies Act, 1956 are in
the process of being updated.
(b) In our opinion and according to the information and explanations
given to us, there are no transactions made in pursuance of contracts
or arrangements which are being entered in the register maintained
under section 301 of the Companies Act, 1956 exceeding the value of
rupees five lakhs in respect of any party during the year.
VL In our opinion and according to the information and explanations
given to us, Provisions of Section 58A and 58AA of the Companies Act,
1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard
to the deposits accepted from the public does not apply to the Company.
VII. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business, which is under
review.
VIIl. The Central Government has not prescribed maintenance of cost
records under Section 209( 1 )(d) of the Companies Act, 1956for the
Company.
EX. a. The Company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education and protection fund, employees state insurance,
income tax, sales tax, customs duty, excise duty, cess and other
material statutory dues applicable to it. According to the information
and explanations given to us, there are no undisputed amounts payable
in respect of income tax, sales tax, wealth tax, custom duty, excise
duty and cess which were outstanding as at 31st March, 2010.
b. According to the information and explanations given to us, there
are no dues of customs duty, excise duty, sales tax, wealth tax and
cess on account of any dispute.
Sr.
No. Name of the Statue Nature of dues Forum where Amount
dispute is pending Rs. (in
Lacs)
1 Income Tax Act, 1961 Income Tax - The Honble High 66.22
F.Y. 1998-99. Court ,Mumbai
1999-2000,
2000-2001.
X. The Company does have accumulated losses at the end of Financial
Year. The company has not incurred cash loss during the financial year
covered by our report and in the immediately preceding Financial Year.
XI. Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to financial institutions, banks or
debenture holders.
XE. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other similar
securities.
XIII. In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore the provisions of clause
(XIII) of paragraph 4 of the aforesaid order 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 (XIV) of paragraph 4 of the aforesaid order are
not applicable to the Company.
XV The Company has given guarantees for loans taken by other companies
from banks or financial institutions.
XVI. According to the information and explanations given to us, term
loan have been repaid by the Company during the year.
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 no funds raised on short term basis have been used for long term
investments.
XVIII. The Company has not raised any money by issue of shares during
the year. Therefore, the provisions of clause (XVIII) of paragraph 4 of
the aforesaid order are not applicable to the Company.
XIX. The Company has not issued any debentures during the year under
audit. Accordingly the provisions of clause (XIX) of paragraph 4 of the
aforesaid order are not applicable to the Company.
XX. The Company has not raised any money by way of public issue during
the year. Therefore, the provisions of clause (XX) of paragraph 4 of
the aforesaid order are not applicable to the Company.
XXI. During the course of our examination of the books of accounts
carried out in accordance with Generally Accepted Auditing Practices,
we have neither come across any instance of fraud on or by the neither
Company nor have we been informed of any such case by the Management.
For SUNDERJI GOSAR & CO.
Chartered Accountants
ALPESHK. SAVLA
PARTNER
M. No. 47828
Firm Reg. N0.115543W
Place: Mumbai
Date :31st May 2010
Mar 31, 2004
1. We have audited the attached Balance Sheet of Haria Exports Limited
as at 31st March, 2004, the Profit and Loss Account and also the Cash
Flow Statement for the year ended on that date annexed thereto, in
which are incorporated the Branch Accounts audited by us. 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
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
included 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 (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, and on the basis of such checks
as we considered appropriate and according to the information and
explanations given to us, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 & 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
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;
(II) 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;
(III) the Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(IV) In our opinion, the Balance Sheet, 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; except for commission expense and quota sale
which are accounted for on cash basis as stated in the accounting
policies.
(V) on the basis of written representations received from the
Directors, as on 31st March, 2004 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2004 from being appointed as a Director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956;
(VI) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts subject to Note No.
(a), (b) & (c) of Note No. M of Schedule 19 for entry passed in the
books of accounts of Rs. 13.11 Crores. Note No. "X" in respect of
doubtful debts of Rs.83.79 Lacs and commission expense and quota sales
which are accounted for on cash basis, the impact on profit and
consequently on reserve is not quantifiable as necessary details are
not made available read in conjunction with Schedules 1 to 24 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. 2004;
b) in the case of the Profit and Loss Account, of the loss for the year
ended on that date; and
c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT.
(Referred to in paragraph 3 of our report of even date)
I. a. The Company is in the process of maintaining proper records
showing full particulars including quantitative details and situation
of its 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 by the management.
c. During the year no substantial parts of the fixed assets have been
disposed of by the Company. Therefore, the provisions of clause (1c) of
paragraph 4 of the aforesaid Order, in our opinion are not applicable
to the Company.
II. a. The inventory has been physically verified by the Management
during the year. In our opinion, the frequency of verification is
reasonable.
b. In our opinion, the procedures of physical verification of the
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 taken loan from parties covered in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs.3.81 Crores and the
year-end balance of loans taken from such parties was Rs. 3.81 Crores.
The Company has not granted any loans to parties covered in the
Register maintained under 301 of the Companies Act, 1956.
b. There are no terms and conditions fixed on which loans have been
taken from parties listed in the register maintained under section 301
of the Companies Act, 1956.
c. The company is regular in repaying the principle amount as
stipulated. As the loan taken are interest free clause for regular
payment of interest does not apply.
d. There is no overdue amount of loans taken from or granted to
companies, firms or other parties listed in the register maintained
under section 301 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 the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods which are under review. The Company is in
the process of rectifying the weakness in the internal control.
V a. According to the information and explanations given to us, we are
of the opinion that the transactions that need to be entered into the
register maintained under section 301 of the Companies Act, 1956 have
been so entered.
b. In our opinion and according to the information and explanations
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 the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
VI. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Section
58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance
of Deposits) Rules, 1975 with regard to the deposits accepted from the
public. Further, during the course of our audit we have neither come
across nor have we been informed of any order passed under the
aforesaid sections by the Company Law Board.
VII. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business which is under
review.
VIII. The Central Government has not prescribed maintenance of cost
records under Section 209(1) (d) of the Companies Act, 1956 for the
Company.
IX. a. The Company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education and protection fund, employees state insurance,
income tax, sales tax, wealth tax, customs , duty, excise duty, cess
and other material statutory dues applicable to it. According to the
information and explanations given to us, there are no undisputed
amounts payable in respect of income tax, wealth tax, sales tax, custom
duty, excise duty and cess which were outstanding as at 31st March,
2004 for a period of more than six months from the date they became
payable.
b. According to the information and explanations given to us, there are
no dues of customs duty, excise duty, wealth tax and cess which have
not been deposited on account of any dispute other than disputed income
tax and sales tax as indicated below:
Sl. Name of the Statue Nature of Forum where Amount
No. dues dispute is Rs.
Pending (in Lacs)
1. Income Tax Income Tax Commissioner 151.16
Act, 1961. of Income-Tax
(Appeals)
Income Tax Income Tax 68.42
Tribunal.
VI. The Company has no accumulated losses and has not incurred cash
losses during the financial year covered by our report and the
immediately preceding financial year.
VII. Based on our audit procedures and according to the information
and explanations given to us, we are of the opinion that the Company
has not defaulted in repayment of dues to financial institutions, banks
or debenture holders subject to note No. "M".
VIII. The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other similar
securities.
IX. In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore the provisions of clause (XIII) of
paragraph 4 of the aforesaid Order are not applicable to the Company.
X. In our opinion, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause (XIV) of paragraph 4 of the aforesaid Order are
not applicable to the Company.
XI. The Company has given guarantees for loans taken by subsidiaries,
joint venture Companies from banks or financial institutions. The terms
and conditions are not made available to us.
XII. According to the information and explanations given to us, the
term loans raised by the Company have been applied for the purpose for
which they were raised.
XIII. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no fund raised on short term basis have been used for long term
investments. No long-term funds have been used to finance short-term
assets except permanent working capital.
XIV. The Company has not raised any money by issue of shares during the
year. Therefore, the provisions of clause (XVIII) of paragraph 4 of the
aforesaid Order are not applicable to the Company.
XV. The Company has not issued any debentures during the year under
audit. Accordingly the provisions of clause (XIX) of paragraph 4 of the
aforesaid Order are not applicable to the Company.
XVI. The Company has not raised any money by way of public issue
during the year. Therefore, the provisions of clause (XX) of paragraph
4 of the aforesaid Order are not applicable to the Company.
XVII. During the course of our examination of the books of accounts
carried out in accordance with Generally Accepted Auditing Practices,
we have neither come across any instance of fraud on or by the Company
nor have we been informed of any such case by the Management.
For SUNDERJI GOSAR & CO.,
Chartered Accountants.
ALPESH K. SAVLA
Partner
M. No. 47828.
Place : Mumbai.
Date : 30th June, 2004.
Mar 31, 2003
We have audited the attached Balance Sheet of HARIA EXPORTS LIMITED as
at 31st March 2003 and the Profit and Loss Account for the year ended
on that date annexed thereto, and the cash flow statement for the
period ended on that date. 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.
We conducted our audit in accordance with 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 financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by
management, as well as evaluating the over all financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As required by the Manufacturing and other Companies (Auditors
Report) Order, 1988 issued by the Company Law Board in terms of Section
227 (4A) of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 & 5 of the said
Order to the extent applicable to the company.
2. Further to our comments in the Annexure referred to in Paragraph 1
above, 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 it appears from our examination of
the books of the company.
c. The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account of the Company.
d. In our opinion, the Balance Sheet and Profit & Loss Account and
cash flow statement dealt with by this report comply with the
Accounting Standards referred to in section 211(3C) of the Companies
Act, 1956, except for commission expense and quota sales which are
accounted/or on cash basis as stated in the Accounting Policies and
Capital Subsidy of Rs. 63.00 Lacs considered as income contrary to
AS-10.
e. On the basis of written representations received from the directors
as on 31st March 2003 we report that, none of the directors is
disqualified as on 31st March, 2003 from being appointed as a director
in terms of clause (g) of Section 274 (1) of the Companies Act, 1956.
3. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts subject to Note No.
(a), (b) & (c) of Note No. M of schedule 19 for entry passed in the
books of accounts for Rs. 12.33 crores. Note No. W in respect of
Capital Subsidy of Rs. 63.00 Lacs reflected as income, Note No. Z" in
respect of non provision of doubtful Debts of Rs. 44.50 Lacs and
commission expense and quota sales which are accounted for on cash
basis, the impact on profit and consequently on reserve is not
quantifiable, as necessary details are not made available, and read
with the other notes thereon 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.
i. In case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2003;
ii. In case of Profit & Loss Account, of the profit for the year ended
on that date and
iii. In case of cash flow statement, of the cash flows for the year
ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE ON THE
ACCOUNTS OF HARIA EXPORTS LIMITED FOR THE YEAR ENDED 31ST MARCH 2003.
In our opinion, and on the basis of such checks of the books and
records as we considered appropriate and according to the information
and explanations given to us during the normal course of audit, which
were necessary to the best of our knowledge and belief, we report that:
1. We have been informed that the Fixed Assets Register showing full
particulars, including quantitative details and situation of Fixed
Assets, is in the process of being brought upto date. There is regular
program of verification of major assets, which in our opinion is
reasonable considering the size of the company and the nature of such
verification during the period as compared to the records.
2. None of the fixed assets has been revalued during the year.
3. Physical verification of stocks of finished goods, raw materials,
spare parts, stores and components has been conducted by the management
at reasonable intervals during the year and, in certain cases at the
close of the financial year. The frequency of verification is
reasonable.
4. The procedures of physical verification of stocks followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
5. The discrepancies noticed on physical verification of stocks as
compared to the book records were not material having regard to the
size of the operation of the company.
6. On the basis of our examination of stock statements, we are of the
opinion that the valuation of stocks is fair and proper in accordance
with the normally accepted accounting principles and is on the same
basis as in the preceding year.
7. The Company has not taken any loans during the year from Companies,
Firms and other parties, listed in the register maintained Under
Section 301 of the Companies Act, 1956, (1 of 1956).
8. The Company has not given any loan to a company listed in the
register maintained under section 301 of the Companies Act, 1956.
9. The Company has not given any loans or advances in the nature of
loans.
10. The Company has adequate internal control procedures commensurate
with the size of the Company & the nature of its business with regard
to purchase of stores, raw materials (which is. under review),
including components, plant and machinery, equipment and other similar
assets and for sale of goods.
11. Having regard to explanation that services rendered and goods
purchased are of a specialised nature for which alternative sources of
supplies are not available for obtaining comparable quotations, we are
unable to comment on the reasonableness as compared to the prevailing
market prices, for such or similar services rendered or goods purchased
to / by the company listed in the register maintained U/s-301 of the
Companies Act, 1956 exceeding Rs. 50,000/- or more in respect of each
party.
12. The Company has a regular procedure for the determination of
unserviceable or damaged stores, raw materials, finished goods and
traded goods. No part of stores, raw materials or finished goods were
determined as unserviceable or damaged during the period under review.
13. The Company has not invited or accepted any deposits from the
public to which the provisions of section 58-A of The Companies Act
1956 and Rules, 1975 framed thereunder apply.
14. The Company has maintained reasonable records for the sale and
disposal of scrap.
15. The Company has an internal audit system. The scope and coverage
of the internal audit needs to be extended so as to be commensurate
with the size of the company and nature of its business.
16. The Central Government has not prescribed maintenance of Cost
Records under the provisions of Sec 209 (1) (d) of the Companies Act,
1956, in respect of any product of the Company.
17. We are informed that the company does not fall within the purview
of the Provident Fund Act or the Employees State Insurance Act and
hence item (xvii) of paragraph 4A of the aforesaid order is not
applicable.
18. No undisputed amounts payable in respect of Income-tax, Wealth tax
Sales tax, Customs duty and Excise duty were outstanding as on 31st
March, 2003 for a period of more than six months from the date they
became payable.
19. No personal expenses, other than the expenses under service
contracts and/or accepted business practices, have been charged to
revenue account.
20. The Company is not a sick industrial company within the meaning of
Clause (O) of Sub-Section (1) of Section 3 of the Sick Industrial
Companies (Special provisions) Act, 1985.
21. As explained to us, in respect of trading activity, the Company
has a regular procedure for determination of damaged goods. We were
informed that the damaged goods have been adjusted in the books during
the year.
For SUNDERJI GOSAR & CO., For PATEL SHAH & JOSHI
Chartered Accountants. Chartered Accountants.
ALPESH K. SAVLA JAYESH M PARMAR
Partner Partner
Place: MUMBAI
Date : 8th July 2003