Mar 31, 2023
AGI Greenpac Limited (formerly known as HSIL Limited)
Report on the Audit of the Financial Statements Opinion
We have audited the financial statements of AGI Greenpac Limited (formerly known as HSIL Limited) ("the Company"), which comprise the Balance Sheet as at 31st March 2023, and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and notes to the financial statements, including a summary of the significant accounting policies and other explanatory information (herein after referred to as the "financial statements").
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March 2023, its profit (including other comprehensive income), changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are
relevant to our audit of the financial statements under the provisions of the Act and the rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the financial statements.
Emphasis of Matter
Attention is drawn to:
(i) Note no. 61 regarding the utilisation of the Business Reconstruction Reserve (''BRR'') to the extent of '' 156.06 lakh, which was created in accordance with a scheme of arrangement ("the scheme") approved by Hon''ble High Court of Calcutta. During the year, the Company has made impairment provision (note no. 61) of '' 156.06 Lakh against certain assets and charged the same as exceptional item to Statement of Profit and Loss of the year, and withdrawn equivalent amount from BRR.
Our opinion is not modified in respect of the above matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements for the year ended 31st March 2023. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
Description of Key Audit Matter |
How our audit addressed the key audit matters |
Recognition of revenue (as described in Note 3.5 and 32 of the standalone financial statements) |
|
The Company recognizes revenues when the |
Our audit procedure includes the following: |
control of goods and/ or services are transferred |
⢠We read and evaluated the Company''s revenue recognition policy and assessed |
to the customer at an amount that reflects the net consideration, which the Company expects to receive for those goods and/or services from customers in accordance with the terms of the |
its compliance in terms of Ind AS 115 ''Revenue from contracts with customers''. ⢠We assessed the design and tested the operating effectiveness of internal controls related to sales and applicable rebates/discounts. |
contracts. In determining the sales price, the |
⢠We performed test for a sample of sales transactions by comparing the underlying |
Company considers the effects of applicable |
sales invoices, sales orders and other related documents to assess that revenue |
rebates, and discounts (variable consideration). |
is recognized on transfer of control to the customer in accordance with the terms |
The terms of sales arrangements, including the |
of the contract. |
timing of transfer of control, based on the terms |
⢠We tested on a sample basis rebates and discount schemes as approved by the |
of relevant contract and nature of discount and |
management to assess its accounting. For the samples selected, we also compared |
rebates arrangements, create complexities that |
that the actual rebates and discounts recognized in respect of particular schemes |
require judgment in determining sales revenues. |
do not exceed their approved amounts. |
Considering the above factors and the risk |
⢠We tested on a sample basis, that revenue has been recognized in the proper |
associated with revenue recognition, we have |
period with reference to the supporting documents including confirmations from |
determined the same to be a key audit matter. |
customers. ⢠We read and assessed the relevant disclosures made in the standalone Ind AS financial statements |
Information Other than the Financial Statements and Auditor''s Report Thereon
The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Board''s Report including Annexures to Board''s Report, Corporate Governance and Shareholder''s Information, but does not include the financial statements and our auditor''s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. When we read Annual Report, if based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report the fact.
We have nothing to report in this regard.
Responsibility of Management and Those charged with Governance for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance, including other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate implementation and maintenance of 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 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.
In preparing the financial statements, the Board of Directors is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those Board of Directors
are also responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)
(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system with reference to financial statements in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Company to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements for the financial year ended 31st March 2023 and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the "Annexure A" a statement on 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 and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes 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 those books;
(c) The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015 (as amended);
(e) On the basis of the written representations received from the directors as on 31st March 2023 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2023 from being appointed as a director in terms of Section 164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, 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 - Refer Note no. 49 to the financial statements;
ii) The Company has made provision, as required under the applicable law or Indian Accounting Standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts; and
iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended 31st March, 2023.
iv) (i) The management has represented that to the best of its knowledge and belief, no funds (which are material either individually or in aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(ii) The management has represented that to the best of its knowledge and belief, no funds (which are material either individually or in aggregate) have been received by the company from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(iii) Based on such audit procedures that we have considered reasonable and appropriate in the circumstances,
nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) above as required by rule 11(''e) of Companies (Audit and Auditors) Rules 2014, as amended, contains any material mis-statement.
v) (i) The dividend declared and paid by the company during the year is in compliance with section 123 of the Companies Act, 2013. (Refer note no. 19)
(ii) The Board of Directors of the Company have proposed final dividend for the year FY 2022-23 which is subject to the approval of the members in the ensuing General meeting. The amount of dividend proposed is in accordance with section 123 of the Companies Act, 2013. (Refer note no. 64)
(h) I n our opinion and to the best of our information and according to the explanations given to us, the remuneration paid/ provided for by the Company to its directors during the year in accordance with the provisions of Section 197 read with Schedule V to the Act.
(i) As proviso to rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable for the Company with effect from 1 April 2023, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 is not applicable.
For Lodha & Co.
Chartered Accountants ICAI Firm Registration Number: 301051E
Shyamal Kumar
Partner
Place: Delhi Membership Number: 509325
Date: 4th May 2023 UDIN: 23509325BGXJFC3356
Mar 31, 2018
Independent Auditor''s Report
To The Members of HSIL Limited
REPORT ON THE STANDALONE FINANCIAL STATEMENTS
We have audited the accompanying standalone financial statements of HSIL Limited (''the Company''), which comprise the Balance Sheet as at 31 March 2018, the Statement of Profit and Loss (including the statement of Other Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as "standalone financial statements").
MANAGEMENT''S RESPONSIBILITY FOR THE STANDALONE 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 standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with relevant rules issued thereunder.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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 the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone 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 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 thereunder.
We conducted our audit of the standalone financial statements 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 standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditor''s judgement, including the assessment of the risks of material misstatement of the standalone 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 standalone 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 the Company''s Directors, as well as evaluating the overall presentation of the standalone 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 standalone financial statements.
OPINION
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the financial position of the Company as at 31 March, 2018, and its financial performance including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
OTHER MATTERS
Attention is drawn to Note 55(a) to the financial statement regarding the utilisation of the Business Reconstruction Reserve (''BRR'') to the extent of '' 210.64 lakh which was created in accordance with a scheme of arrangement (the scheme) approved by Hon''ble High Court of Calcutta. During the year the Company has impaired its investment in a foreign subsidiary amounting to '' 210.64 lakh and charged the same as exceptional item to standalone statement of profit and loss and withdrawn equivalent amount from BRR.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of section 143(11) of the Act, we give in the "Annexure A", a statement on the matters specified in the paragraph 3 and 4 of the order.
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 purposes 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 those books;
(c) the Balance Sheet, the Statement of Profit and Loss including the other comprehensive income, the Statement of Cash Flows and the Statement of Changes in Equity 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 relevant rule issued thereunder;
(e) on the basis of the 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 164 (2) of the Act;
(f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure B"; and
(g) with respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of Pending litigations, on its financial position in its standalone financial statements-Refer Note 48 to the standalone Financial Statements.
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management according to the programme of periodical verification in phased manner over a period of three years, which in our opinion is reasonable having regard to the size of the company and the nature of its fixed assets. As per the programme certain fixed assets were verified during the year and no material discrepancies were noticed on such physical verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company as at Balance Sheet date read with Note No. 4(6) of standalone financial statements.
(ii) As per the information and explanation given to us, the inventories of the Company (except stock lying with the third parties and goods in transit), have been physically verified by the management at reasonable intervals during the year. The discrepancies noticed on such physical verification of inventory as compared to book records were not material.
(iii) According to the records and information and explanation made available to us, the Company has not granted any loans to the parties covered in the register maintained under section 189 of the Companies Act, 2013 (''the Act''), hence other parts of this clause are not applicable.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans, investments, guarantees and security.
Name of the statute Nature of dues |
Period to which amount relates |
Amount involved ('' in |
Forum where dispute is pending |
lakh) |
|||
1987-89 |
27.81 |
Commissioner of Central Excise, Rohtak |
|
2005-06 |
93.24 |
Customs, Excise and Service Tax, Appellate Tribunal |
|
1999-2000 |
24.26 |
Custom, Excise and Service Tax Appellate Tribunal |
|
The Central Excise Act, 1944 Central excise |
2010-11 |
9.71 |
Commissioner, Mangalore |
2004-05 to 2005-06 |
14.98 |
Customs, Excise and Service Tax Appellate Tribunal, Bangalore |
|
2007-08 |
11.09 |
Customs, Excise and Service Tax Appellate Tribunal, Bangalore |
|
2006-07 |
3.33 |
Commissioner (Appeals) |
|
2015-16 |
8.19 |
Customs, Excise and Service Tax, Appellate Tribunal |
(v) The Company has not accepted any deposits from the public within the meaning of Section 73 to 76 of the Act and relevant rules, hence, we do not offer any comment on the same. Further, we have been informed that no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal in this regard.
(vi) The Central Government has not specified maintenance of cost records under sub-section (1) of Section 148 of the Act, in respect of Company''s products and services. Accordingly, the provisions of clause 3(vi) of the Order are not applicable.
(vii) (a) According to the records of the company, the company is regular in depositing undisputed statutory dues including provident fund, employees'' state insurance, income tax, sales tax, service tax, custom duty, excise duty, value added tax, entry tax, goods and service tax, cess and other material statutory dues, with the appropriate authorities to the extent applicable and there are no undisputed statutory dues payable for a period of more than six months from the date they become payable as at 31 March 2018.
(b) According to the records and information & explanations given to us, there are no dues in respect of income tax, sales tax, service tax, goods and service tax, duty of excise and value added tax that have not been deposited with the appropriate authorities on account of any dispute except as given below.
(viii) The Company has not defaulted in repayment of loans or borrowings to any bank or financial institution or government during the year. The Company did not have any outstanding debentures during the year.
Name of the statute |
Nature of dues |
Period to which amount relates |
Amount involved ('' in lakh) |
Forum where dispute is pending |
Delhi Sales Tax Act,1975 |
Sales Tax |
2004-05 to 2010-11 |
66.13 |
Add. Commissioner (Sales Tax) |
Delhi Sales Tax Act,1975 |
Sales Tax |
2010-11 to 2011-12 |
172.88 |
Spl. Comm / Commissioner (Sales Tax) |
Delhi Sales Tax Act,1975 |
Sales Tax |
2013-14 |
37.48 |
Delhi Sales Tax Tribunal |
Andhra Value Added Tax Act |
Sales Tax |
2011-12 to 2012-13 |
3.75 |
Appellate Deputy Commissioner Rural Division, Hyderabad |
Central Sales Tax Act |
Sales Tax |
2014-15 |
91.53 |
The Appellate Dy. Comm. Rural Division, Hyderabad |
Andhra Value Added Tax Act |
Sales Tax |
2011-12 to 2012-13 |
3.75 |
The Appellate Dy. Comm. Rural Division, Hyderabad |
Entry Tax Act, 2001 |
Entry Tax |
2011-12 to 2016-17 |
70.80 |
The Appellate Dy. Comm. Rural Division, Hyderabad |
Finance Act, 1994 |
Service Tax |
2005-06 to 2006-07 |
1.60 |
Customs, Excise and Service Tax Appellate Tribunal, Bangalore |
Finance Act, 1994 |
Service Tax |
2010-11 to 2011-12 |
37.57 |
The Hon''ble Supreme Court of India. |
Income Tax Act, 1961 |
Income Tax |
2012-13 |
3.84 |
Commissioner Income Tax (Appeals), Hubli |
Telangana Tax on Entry of Goods into Local areas Act, 2001 |
Entry Tax |
2011-12 to 2016-17 |
3961.13 |
High Court Judicature of Hyderabad |
The Central Sales Tax Act |
Sales Tax |
2012-13 |
13.54 |
Dy. Commissioner (State Tax-Hyderabad) |
The Central Sales Tax Act |
Sales Tax |
FY 2014-15 |
71.21 |
Commercial Tax Officer |
The Central Sales Tax Act |
Sales Tax |
2007-08 to 2011-12 |
110.98 |
Ass. Commissioner of Sales Tax |
The Central Sales Tax Act |
Sales Tax |
2012-13 to 2013-14 |
5.50 |
Dy. Commissioner of Sales Tax |
Maharashtra Value Added Tax Act |
Sales Tax |
2010-11 to 2011-12 |
33.56 |
Ass. Commissioner of Sales Tax |
Maharashtra Value Added Tax Act |
Sales Tax |
2012-13 to 2013-14 |
7.36 |
Dy. Commissioner of Sales Tax |
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments). On the basis of information and explanation given to us, term loans have been applied for the purposes for which they were obtained.
(x) Based on the audit procedures performed and on the basis of information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the period covered by our audit.
(xi) On the basis of records and information and explanations made available and based on our examinations of the records of the company, the company has paid / provided managerial remuneration, in accordance with the requisite approvals mandated under Section 197 read with Schedule V of the Act.
(xii) On the basis of information and explanation given to us, the Company is not a Nidhi Company. Accordingly, reporting under clause 3 (xii) of the said order is not applicable.
(xiii) As per the information and explanations and records made available by the management of the company and audit procedures performed, for the related parties transactions entered during the year, the company has complied with the provisions of section 177 and 188 of the Act, where applicable. As explained and as per the records / details, the related party transactions have been disclosed in the standalone financial statements as required by the applicable accounting standards. (Refer Note no.51)
(xiv) During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly paid convertible debentures and hence reporting under clause 3 (xiv) of the Order is not applicable to the Company.
(xv) According to the information and explanations given to us and based on our examination of the records, the Company has not entered into non-cash transactions with directors or persons connected with them. Accordingly, clause 3(xv) of the Order is not applicable.
REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (i) OF SUB-SECTION 3 OF SECTION 143 OF THE COMPANIES ACT, 2013 ("THE ACTâ)
We have audited the internal financial controls over financial reporting of HSIL Limited ("the Company") as of 31 March 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
MANAGEMENT''S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
AUDITORS'' RESPONSIBILITY
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in
(xvi) According to the information and explanation given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
OPINION
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For LODHA & CO.
Chartered Accountants FRN: 301051E
(N.K. Lodha)
Place: Gurugram Partner
Dated: 30th May 2018 Membership No. 85155
Mar 31, 2017
To the Members of HSIL Limited
Report on the Standalone Financial Statements
1. We have audited the accompanying standalone financial statements of HSIL Limited (the ''Company''), which comprise the Balance Sheet as at 31 March 2017, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial
Statements
2. 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 standalone financial statements that give a true and fair view of the state of affairs (financial position), profit or loss (financial performance including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (''Ind AS'') specified under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on these standalone financial statements based on our audit.
4. 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.
5. 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 these standalone financial statements are free from material misstatement.
6. 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 controls 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 the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
7. We believe that the audit evidence obtained by us and the audit evidence obtained by the other auditors in terms of their reports referred to in paragraph 10 of the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on these standalone financial statements.
Opinion
8. In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the reports of the other auditors on the separate financial statements of the Demerged Undertaking, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including Ind AS specified under Section 133 of the Act, of the state of affairs (financial position) of the Company as at 31 March 2017, its profit (financial performance including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Emphasis of Matter
9. We draw attention to Note 57(b) to the standalone financial statements regarding the utilization of the Business Reconstruction Reserve (âBRRâ) created in accordance with a scheme of arrangement (the âSchemeâ) approved by the Honâble Calcutta High Court. The Scheme provides that the Board of Directors of the Company can utilize the BRR, inter alia, to recognize write off of old non-moving and slow moving inventory. In accordance with the Scheme, the Board of Directors of the Company have credited an amount of Rs.838.63 lakh to the statement of profit and loss towards write off of old non-moving and slow moving inventory. The applicable accounting standards and accounting principles generally accepted in India do not provide for credit of amounts released from reserves to the statement of profit and loss. Had the accounting principles generally accepted in India been followed, the expense in the statement of profit and loss would have been higher by Rs.838.63 lakh and the profit after tax (including other comprehensive income) and the balance of other equity would have been lower by Rs.838.63 lakh. Our audit opinion is not qualified in the respect of this matter.
Other Matters
10. We draw attention to Note 56 to the financial statements of the Company pertaining to the demerger of the retail business undertaking of Hindware Home Retail Private Limited (âDemerged Undertakingâ) into the Company. We did not audit the financial statements of the Demerged Undertaking, whose financial statements reflect total assets of Rs.4,916.75 lakh and net assets of Rs.938.52 lakh as at 31 March 2017, total revenues of Rs.9,592.68 lakh and net cash outflows amounting to Rs.40.72 lakh for the year ended on that date. The financial statements related to the Demerged Undertaking have been audited by another firm of chartered accountants whose report has been furnished to us by the management and our opinion on standalone financial statements, in so far as it relates to the amounts and disclosures included in respect of this Demerged Undertaking, and our report in terms on sub section (3) of Section 143 of the Act, in so far as it relates to the aforesaid Demerged Undertaking, is based solely on the reports of the other auditor.
Our opinion above on the standalone financial statements and our report on other legal and regulatory requirements below, are not modified in respect of the above matters with respect to our reliance on the work done by and the reports of the other auditor.
11. The Company had prepared separate sets of statutory financial statements for the year ended 31 March 2016 and 31 March 2015 in accordance with the Accounting Standards prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended) on which we issued auditorâs reports to the shareholders of the Company dated 23 May 2016 and 18 May 2015 respectively. These financial statements have been adjusted for the differences in the accounting principles adopted by the Company on transition to Ind AS, which have also been audited by us. Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
12. As required by the Companies (Auditor''s Report) Order, 2016 (the ''Order'') issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the Annexure I, a statement on the matters specified in paragraphs 3 and 4 of the Order.
13. Further to cur comments in Annexure I, based on cur audit and on the consideration of the report of the other auditor on the separate financial statements of the Demerged Undertaking, 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 cur knowledge and belief were necessary for the purpose of cur audit,
b) in our opinion, proper books of account as required by law have been kept by the Company sc far as it appears from cur examination of these books,
c) the standalones financial statements dealt with by this report are in agreement with the books of account,
d) in cur opinion, the aforesaid standalone financial statements comply with Ind AS specified under Section 133 of the Act,
e) on the basis of the written representations received from the directors and taken on record by the Board of Directors, none of the directors of the Company are disqualified as on 31 March 2017 from being appointed as a director in terms of Section 164(2) of the Act,
f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the Demerged Undertaking and the operating effectiveness of such controls, refer to our separate report in Annexure II, and
g) with respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 (as amended), in our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the report of the other auditor on the separate financial statements of the Demerged Undertaking
i. the Company, as detailed in Note 50 to the standalone financial statements, has disclosed the impact of pending litigations on its financial position,
ii. the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses, and
iii. there has been no delay in transferring amounts, required to be transferred, to the
Investor Education and Protection Fund by the Company,
iv. the Company has provided disclosures in Note 58 to the financial statements regarding holdings as well as dealings in Specified Bank Notes during the period from 8 November 2016 to 30 December 2016. Based on the audit procedures performed and taking into consideration the information and explanations given to us, in our opinion, the total receipts, total payments and total amount deposited in banks are in accordance with the books of account maintained by the Company. However, in the absence of sufficient appropriate audit evidence, we are unable to comment upon the appropriateness of classification between Specified Bank Notes and other denomination notes of ''Permitted receipts'', ''Non-permitted receipts'', ''Permitted payments'' and ''Amount deposited in banks'' as disclosed under such Note.
Annexure I
Annexure I to the Independent Auditor''s Report of even date to the members of HSIL Limited, on the standalone financial statements for the year ended 31 March 2017
Based on the audit procedures performed for the purpose of reporting a true and fair view on the financial statements of the Company and taking into consideration the information and explanations given to us and the books of account and other records examined by us in the normal course of audit and based on the report of the other auditor of the Demerged Undertaking, and to the best of our knowledge and belief, we report that
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular program of physical verification of its fixed assets under which fixed assets are verified in a phased manner over a period of three years, which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In accordance with this program, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification.
(c) The title deeds of all the immovable properties (which are included under the head ''Property, plant and equipment'') are held in the name of the Company.
(ii) In our opinion, the management has conducted physical verification of inventory at reasonable intervals during the year, except for goods-in-transit. No material discrepancies were noticed on the aforesaid verification.
(iii) The Company has not granted any loan, secured or unsecured to companies, firms, Limited Liability Partnerships (LLPs) or other parties covered in the register maintained under Section 189 of the Act. Accordingly, the provisions of clauses 3(iii)(a), 3(iii)(b) and 3(iii)(c) of the Order are not applicable.
(iv) In our opinion, the Company has complied with the provisions of Sections 185 and 186 of the Act in respect of loans, investments, guarantees and security.
(v) In our opinion, the Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable.
(vi) The Central Government has not specified maintenance of cost records under sub-section (1) of Section 148 of the Act, in respect of Company''s products and services. Accordingly, the provisions of clause 3(vi) of the Order are not applicable.
(vii) (a) The Company is 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 other material statutory dues, as applicable, to the appropriate authorities. Further, no undisputed amounts payable in respect thereof were outstanding at the year-end for a period of more than six months from the date they become payable.
(b) The dues outstanding in respect of income-tax, sales-tax, service-tax, duty of customs, duty of excise and value added tax on account of any dispute, are as follows
Statement of Disputed Dues
Name of the statute |
Nature of dues |
Amount (Rs. lakh) |
Amount paid under protest (Rs. lakh) |
Period to which the amount relates |
Forum where dispute is pending |
The Central Excise Act, 1944 |
Central Excise |
27.81 |
- |
FY 1987-89 |
Commissioner of Central Excise, Rohtak |
The Central Excise Act, 1944 |
Central Excise |
103.98 |
10.74 |
FY 2005-06 |
Customs, Excise and Service tax Appellate Tribunal |
The Central Excise Act, 1944 |
Central Excise |
166.12 |
40.00 |
FY 2009-10 |
Customs, Excise and Service tax Appellate Tribunal |
The Central Excise Act, 1944 |
Central Excise |
53.29 |
3.81 |
FY 2005-07 |
Customs, Excise and Service tax Appellate Tribunal |
The Central Excise Act, 1944 |
Central excise |
6.22 |
- |
FY 2008-10 |
Commissioner, Mangalore |
The Central Excise Act, 1944 |
Central excise |
7.98 |
- |
FY 2004-05 To 2005-06 |
Assistant Commissioner of Central Excise, Navanagar |
The Central Excise Act, 1944 |
Central excise |
8.19 |
- |
January 2015 to December 2015 |
Assistant Commissioner of Central Excise, Hyderabad |
Delhi Sales Tax Act, 1975 |
Sales tax |
232.08 |
37.25 |
FY 2004-05 to 2011-12 |
Commissioner (Appeals), Sales-tax. |
Karnataka Value Added Tax Act |
Sales tax |
5.93 |
- |
FY 2012-13 |
Commissioner (Appeals), Sales-tax. |
Andhra Pradesh Value Added Tax Act |
Sales tax |
6.94 |
3.19 |
FY 2011-12 and 2012-13 |
Appellate Deputy Commissioner Rural Division, Hyderabad. |
Finance Act, 1994 |
Service tax |
3.02 |
1.40 |
March 2006 to September 2006 |
Customs, Excise and Service tax Appellate Tribunal, Bangalore |
Finance Act, 1994 |
Service tax |
2.57 |
2.57 |
July 2005 to March 2006 |
Customs, Excise and Service tax Appellate Tribunal, Bangalore |
Finance Act, 1994 |
Service tax |
77''77 |
40.20 |
FY 2010-11 and 2011-12 |
The Hon''ble Supreme Court of India |
Income-tax Act, 1961 |
Income-tax |
3.84 |
- |
Assessment year 2011-12 |
Commissioner Income-tax (Appeals), Calcutta |
(viii) The Company has not defaulted in repayment of loans or borrowings to any bank or financial institution or government during the year. The Company did not have any outstanding debentures during the year.
(ix) The Company did not raise moneys by way of initial public offer or further public offer (including debt instruments). In our opinion, the term loans were applied for the purposes for which the loans were obtained.
(x) No fraud by the Company or on the Company by its officers or employees has been noticed or reported during the period covered by our audit.
(xi) Managerial remuneration has been paid and provided by the Company in accordance with the requisite approvals mandated by the provisions of Section 197 of the Act read with Schedule V to the Act.
(xii) In our opinion, the Company is not a Nidhi Company. Accordingly, provisions of clause 3(xii) of the Order are not applicable.
(xiii) In our opinion all transactions with the related parties are in compliance with Sections 177 and 188 of Act, where applicable, and the requisite details have been disclosed in the financial statements eto., as required by the applicable Ind AS.
(xiv) During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures.
(xv) In our opinion, the Company has not entered into any non-cash transactions with the directors or persons connected with them covered under Section 192 of the Act.
(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
Independent Auditor''s report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (the ''Act'')
1. In conjunction with cur audit of the standalones financial statements of HSIL Limited (the ''Company''), as of and for the year ended 31 March 2017, we have audited the internal financial controls over financial reporting (IFCOFR) of the Company as of that date.
Management''s Responsibility for Internal Financial Controls
2. The Companyâs Board of Directors is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the
Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) issued by the Institute of Chartered Accountants of India (âICAIâ). 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 the companyâs business, including adherence to companyâs 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 Act.
Auditors'' Responsibility
3. Our responsibility is to express an opinion on the Companyâs IFCOFR based on our audit. We conducted our audit in accordance with the Standards on Auditing, issued by the ICAI and deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an audit of IFCOFR and the Guidance Note issued by the ICAI. 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 IFCOFR were established and maintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the IFCOFR and their operating effectiveness. Our audit of IFCOFR included obtaining an understanding of IFCOFR, 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 auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
5. We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditor in terms of their report referred to in the Other Matter paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs IFCOFR.
Meaning of Internal Financial Controls over Financial
Reporting
6. A companyâs IFCOFR 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 companyâs IFCOFR includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over
Financial Reporting
7. Because of the inherent limitations of IFCOFR, 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 IFCOFR to future periods are subject to the risk that IFCOFR may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
8. In our opinion, the Company has, in all material respects, adequate internal financial controls over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2017, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note issued by ICAI.
Other Matter
9. We did not audit the IFCOFR of the Demerged Undertaking, whose financial statements reflect total assets of Rs.4,916.75 lakh as at 31 March 2017, total revenues of Rs.9,592.68 lakh and net cash out flows amounting to Rs.40.72 lakh for the year ended on that date. Our report on the adequacy and operating effectiveness of the IFCOFR for the Company under Section 143(3)(i) of the Act in so far as it relates to the IFCOFR of the Demerged Undertaking is solely based on the report of the auditor of the Demerger Undertaking. Our opinion is not modified in respect of the above matter with respect to our reliance on the work done by and the reports of the other auditors.
For Walker Chandiok & Co LLP
Chartered Accountants
Firm''s Registration No.001076N/N500013
per Lalit Kumar
Place Gurugram Partner
Date 18 May 2017 Membership No.095256
Mar 31, 2016
1. We have audited the accompanying standalone financial statements of
HSIL Limited (the ''Company''), which comprise the Balance Sheet as at 31
March 2016, the Statement of Profit and Loss, the Cash Flow Statement
for the year then ended and a summary of the significant accounting
policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
2. 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 standalone 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 (as amended). This
responsibility also includes maintenance of adequate accounting records
in accordance with the provisions of the Act; safeguarding the assets
of the Company; 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 adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
4. 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 thereunder.
5. 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 standalone financial
statements are free from material misstatement.
6. 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 controls 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 the Company''s Directors, as well as
evaluating the overall presentation of the financial statements.
7. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
standalone financial statements.
Opinion
8. In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid standalone financial
statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India, of the state of
affairs of the Company as at 31 March 2016, its profit and its cash
flows for the year ended on that date.
Emphasis of Matter
9. We draw attention to Note 49 to the financial statements regarding
the utilisation of the Business Reconstruction Reserve (''BRR'') created
in accordance with a scheme of arrangement (the ''Scheme'') approved by
the Hon''ble Calcutta High Court. The Scheme provides that the Board of
Directors of the Company can utilise the BRR, inter alia, to recognize
diminution in the value of investment. In terms of the Scheme, the
Board of Directors of the Company have credited an amount of Rs.
1,643.46 lacs to the statement of profit and loss towards diminution in
the carrying value of a long-term investment in one of its overseas
subsidiaries. The applicable accounting standards and accounting
principles generally accepted in India do not provide for credit of
amounts released from reserves to the statement of profit and loss. Had
the accounting principles generally accepted in India been followed,
the exceptional item of expense in the statement of profit and loss
would have been higher by Rs. 1,643.46 lacs and the profit after tax
and the balance of surplus in the statement of profit and loss would
have been lower by Rs. 1,643.46 lacs. Our audit opinion is not
qualified in the respect of this matter
Report on Other Legal and Regulatory Requirements
10. As required by the Companies (Auditor''s Report) Order, 2016 (the
''Order'') issued by the Central Government of India in terms of Section
143(11) of the Act, we give in the Annexure I a statement on the
matters specified in paragraphs 3 and 4 of the Order.
11. 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 it appears from our examination of
those books;
c. the standalone financial statements dealt with by this report are
in agreement with the books of account;
d. in our opinion, read with paragraph 9 above, 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 (as amended);
e. on the basis of the 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 have also audited the internal financial controls over financial
reporting (IFCOFR) of the Company as of 31 March 2016 in conjunction
with our audit of the standalone financial statements of the Company
for the year ended on that date and our report dated 23 May 2016 as per
Annexure II expressed an unqualified opinion; and
g. with respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. as detailed in Note 31 to the standalone financial statements, the
Company has disclosed the impact of pending litigations on its
standalone financial position;
ii. the Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses; and
iii. there has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the financial statements of the Company and
taking into consideration the information and explanations given to us
and the books of account and other records examined by us in the normal
course of audit, we report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a regular program of physical verification of its
fixed assets under which fixed assets are verified in a phased manner
over a period of three years, which, in our opinion, is reasonable
having regard to the size of the Company and the nature of its assets.
In accordance with this program, certain fixed assets were verified
during the year and no material discrepancies were noticed on such
verification.
(c) The title deeds of all the immovable properties (which are included
under the head ''fixed assets'') are held in the name of the Company.
(ii) In our opinion, the management has conducted physical verification
of inventory at reasonable intervals during the year, except for
goods-in-transit. No material discrepancies were noticed on the
aforesaid verification.
(iii) The Company has granted unsecured loans to a company covered in
the register maintained under Section 189 of the Act; and with respect
to the same:
(a) in our opinion the terms and conditions of grant of such loans are
not, prima facie, prejudicial to the Company''s interest.
(b) the schedule of repayment of principal has been stipulated wherein
the principal amounts are repayable on demand and since the repayment
of such loans has not been demanded, in our opinion, repayment of the
principal amount is regular;
(c) there is no overdue amount in respect of loans granted to such
companies, firms, LLPs or other parties.
(iv) In our opinion, the Company has complied with the provisions of
Sections 185 and 186 of the Act in respect of loans, investments,
guarantees, and security
(v) In our opinion, the Company has not accepted any deposits within
the meaning of Sections 73 to 76 of the Act and the Companies
(Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the
provisions of clause 3(v) of the Order are not applicable.
(vi) The Central Government has not specified maintenance of cost
records under sub-section (1) of Section 148 of the Act, in respect of
Company''s products and services. Accordingly, the provisions of clause
3(vi) of the Order are not applicable.
(vii) (a) The Company is 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 other material statutory dues, as applicable, to the
appropriate authorities. Further, no undisputed amounts payable in
respect thereof were outstanding at the year-end for a period of more
than six months from the date they become payable.
(b) The dues outstanding in respect of income-tax, sales-tax, service
tax, duty of customs, duty of excise and value added tax on account of
any dispute, are as follows:
Statement of Disputed Dues
Name of the
statute Nature of Amount Amount
paid period to
which the Forum where
dispute is
dues (Rs.
lacs) under
protest amount
relates pending
(Rs.
lacs)
The Central
Excise Act, Central
excise 4.98 2.50 Financial
year (''FY'') Customs,
Excise and
Service
1944 1990-91 tax Appellate
Tribunal
The Central
Excise Act, Central
excise 27.81 - FY 1987-89 Commissioner
of Central
1944 Excise, Rohtak
The Central
Excise Act, Central
excise 103.98 10.74 FY 2005-06 Customs,
Excise and
Service
1944 tax
Appellate
Tribunal
The Central
Excise Act, Central
excise 166.12 40.00 FY 2009-10 Customs,
Excise and
Service
1944 tax Appellate
Tribunal
The Central
Excise Act, Central
excise 53.26 3.81 FY 2005-07 Customs,
Excise and
Service
1944 tax Appellate
Tribunal
Name of the
statute Nature of Amount Amount
paid period to
which the Forum where
dispute is
dues (Rs.
lacs) under
protest amount
relates pending
(Rs.
lacs)
The Central
Excise Act, Central
excise 6.20 - FY 2008-10 Commissioner,
Manglore
1944
The Central
Excise Act, Central
excise 7.98 - FY 2004-05
To 2005-06 Assistant
Commissioner
of
1944 Central
Excise,
Navanagar
Delhi Sales
Tax Act,
1975 Sales
tax 245.82 37.25 FY 2004-05
to 2011-12 Commissioner
(Appeals),
Sales-tax.
Andhra
Pradesh
Value Sales
tax 1.03 - FY 2012-13
and 2013-14 Appellate
Deputy
Added Tax
Act Commissioner
Rural
Division,
Hyderabad.
Andhra
Pradesh Value Sales
Tax 6.94 3.19 FY 2011-12
and 2012-13 Appellate
Deputy
Added Tax Act Commissioner
Rural
Division,
Hyderabad.
Finance Act,
1994 Service
tax 3.02 1.40 March 2006
to September Customs,
Excise and
Service
2006 tax Appellate
Tribunal,
Bangalore
Finance Act,
1994 Service
tax 2.57 2.57 July 2005
to March
2006 Customs,
Excise and
Service
tax Appellate
Tribunal,
Bangalore
Income-tax
Act, 1961 Income-
tax 3.84 - Assessment
year
2011-12 Commissioner
Income-tax
(Appeals),
Calcutta
(viii) The Company has not defaulted in repayment of loans or
borrowings to any bank or financial institution or government during
the year. The Company did not have any outstanding debentures during
the year.
(ix) The Company did not raise moneys by way of initial public offer or
further public offer (including debt instruments). In our opinion, the
term loans were applied for the purposes for which the loans were
obtained.
(x) No fraud by the Company or on the Company by its officers or
employees has been noticed or reported during the period covered by our
audit.
(xi) Managerial remuneration has been paid and provided by the company
in accordance with the requisite approvals mandated by the provisions
of section 197 of the Act read with Schedule V to the Act.
(xii) In our opinion, the Company is not a Nidhi Company. Accordingly,
provisions of clause 3(xii) of the Order are not applicable.
(xiii) In our opinion, all transactions with the related parties are in
compliance with Sections 177 and 188 of Act, where applicable, and the
requisite details have been disclosed in the financial statements etc.,
as required by the applicable accounting standards.
(xiv) During the year, the Company has not made any preferential
allotment or private placement of shares or fully or partly convertible
debentures.
(xv) In our opinion, the Company has not entered into any non-cash
transactions with the directors or persons connected with them covered
under Section 192 of the Act.
(xvi) The Company is not required to be registered under Section 45-IA
of the Reserve Bank of India Act, 1934.
For Walker Chandiok & Co LLp
Chartered Accountants
Firm''s Registration No.: 001076N/N500013
per Lalit Kumar
place : Gurgaon Partner
date : 23 May 2016 Membership No.: 095256
Mar 31, 2015
1 We have audited the accompanying standalone financial statements of
HSIL Limited (the ''Company''), which comprise the Balance Sheet as at 31
March 2015, the Statement of Profit and Loss, the Cash Flow Statement
for the year then ended and a summary of the significant accounting
policies and other explanatory information
MANAGEMENT''S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS
2 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 standalone 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 (as amended) This
responsibility also includes maintenance of adequate accounting records
in accordance with the provisions of the Act; safeguarding the assets
of the Company; 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 adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error
AUDITOR''S RESPONSIBILITY
3 Our responsibility is to express an opinion on these standalone
financial statements based on our audit
4 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 thereunder
5 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 standalone financial
statements are free from material misstatement
6 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 controls 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 controls 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
7 We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
standalone financial statements
OPINION
8 In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid standalone financial
statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India, of the state of
affairs of the Company as at 31 March 2015, its profit and its cash
flows for the year ended on that date
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
9 As required by the Companies (Auditor''s Report) Order, 2015 (the
''Order'') issued by the Central Government of India in terms of Section
143(1 1) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 3 and 4 of the Order
10 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 it appears from our examination of
those books;
c the standalone financial statements 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 (as
amended);
e on the basis of the 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; and
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 as detailed in Note 32 to the standalone financial statements, the
Company has disclosed the impact of pending litigations on its
standalone financial position;
ii the Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses; and
iii there has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company
ANNEXURE TO THE INDEPENDENT AUDITOR''S REPORT
of even date to the members of HSIL Limited, on the financial
statements for the year ended 31 March 2015
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the financial statements of the Company and
taking into consideration the information and explanations given to us
and the books of account and other records examined by us in the normal
course of audit, we report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets
(b) The Company has a regular program of physical verification of its
fixed assets under which fixed assets are verified in a phased manner
over a period of three years, 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
(ii) (a) The management has conducted physical verification
of inventory at reasonable intervals during the year, except for goods
in transit
(b) The procedures of physical verification of inventory 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 and no
material discrepancies between physical inventory and book records were
noticed on physical verification
(iii) The Company has granted unsecured loans to a company covered in
the register maintained under Section 189 of the Act; and with respect
to the same:
(a) receipt of the principal amount and the interest is regular; and
(b) there is no overdue amount in respect of loans granted to such a
company
(iv) In our opinion, there is an adequate internal control system
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services During the course of our audit, no major
weakness has been noticed in the internal control system in respect of
these areas
(v) The Company has not accepted any deposits within the meaning of
Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits)
Rules, 2014 (as amended) Accordingly, the provisions of clause 3(v)
of the Order are not applicable
(vi) We have broadly reviewed the books of account maintained by the
Companyn pursuant to the Rules made by the Central Government for the
maintenance of cost records under sub-section (1) of Section 148 of the
Act in respect of Company''s products and services and are of the
opinion that, prima facie, the prescribed accounts and records have
been made and maintained However, we have not made a detailed
examination of the cost records with a view to determine whether they
are accurate or complete
(vii) (a) The Company is regular in depositing undisputed
statutory dues including provident fund, employees'' state insurance,
income-tax, sales-tax, wealth tax, service tax, duty of customs, duty
of excise, value added tax, cess and other material statutory dues, as
applicable, with the appropriate authorities Further, no undisputed
amounts payable in respect thereof were outstanding at the year-end for
a period of more than six months from the date they become payable
(b) The dues outstanding in respect of income-tax, sales-tax, wealth
tax, service tax, duty of customs, duty of excise, value added tax and
cess on account of any dispute, are as follows:
Name of the statute Nature of Amount Amount paid
dues (lacs) under protest
(lacs)
The Central Excise Act, Central excise 4.98 2.50
1944
The Central Excise Act, Central excise 27.81 -
1944
The Central Excise Act, Central excise 103.98 10.74
1944
The Central Excise Act, Central excise 166.12 40.00
1944
The Central Excise Act, Central excise 53.26 3.81
1944
The Central Excise Act, Central excise 6.20 -
1944
The Central Excise Act, Central excise 1.19 -
1944
The Central Excise Act, Central excise 2.61 -
1944
The Central Excise Act, Central excise 7.98 -
1944
Delhi Sales Tax Act, Sales tax 253.35 37.25
1975
Andhra Pradesh Value Added Sales tax 1.03 -
Tax Act
Finance Act, 1994 Service tax 3.02 1.40
Finance Act, 1994 Service tax 2.57 2.57
Andhra Pradesh Value Added Sales Tax 6.94 3.19
Tax Act
Income-tax Act, 1961 Income-tax 3.84 -
Name of the statute Period to which Forum where dispute is
the amount pending
relates
The Central Excise Act, Financial year Customs, Excise and
1944 Service tax
(''FY'') 1990-91 Appellate Tribunal
The Central Excise Act, FY 1987-89 Commissioner of Central
1944 Excise, Rohtak
The Central Excise Act, FY 2005-06 Customs, Excise and
1944 Service tax
Appellate Tribunal
The Central Excise Act, FY 2009-10 Customs, Excise and
1944 Service tax
Appellate Tribunal
The Central Excise Act, FY 2005-07 Customs, Excise and
1944 Service tax
Appellate Tribunal
The Central Excise Act, FY 2008-10 Commissioner, Manglore
1944
The Central Excise Act, September 2004 Commissioner, Belgaum
1944 to December 2004
The Central Excise Act, FY 2009-10 Commissioner of Excise
1944 Appeals,
Mysore
The Central Excise Act, FY 2004-05 Assistant Commissioner of
1944
To 2005-06 Central Excise, Navanagar
Delhi Sales Tax Act, FY 2004-05 Commissioner (Appeals),
1975 to 2011-12 Sales- tax
Andhra Pradesh Value FY 2012-13 and Appellate Deputy
Commissioner
Added Tax Act 2013-14 Rural Division, Hyderabad
Finance Act, 1994 March 2006 to Customs, Excise and
Service tax
September 2006 Appellate Tribunal,
Bangalor
Finance Act, 1994 July 2005 to Customs, Excise and
Service tax
March 2006 Appellate Tribunal,
Bangalore
Andhra Pradesh Value FY 2011-12 and Appellate Deputy
Commissioner
Added Tax Act 2012-13 Rural Division, Hyderabad
Income-tax Act, 1961 Assessment year Commissioner Income-tax
2011-12 (Appeals),
Calculata
(c) The Company has transferred the amount required to be transferred
to the investor education and protection fund in accordance with the
relevant provisions of the Companies Act, l956 (l of l956) and rules
made thereunder within the specified time
(viii) In our opinion, the Company has no accumulated losses at the end
of the financial year and it has not incurred cash losses in the
current and the immediately preceding financial year
(ix) The Company has not defaulted in repayment of dues to any bank
during the year The Company did not have any outstanding debentures or
dues to financial institution during the year
(x) In our opinion, the terms and conditions on which the Company has
given guarantee for loans taken by others from banks or financial
institutions are not, prima facie, prejudicial to the interest of the
Company
(xi) In our opinion, the Company has applied the term loans for the
purpose for which these loans were obtained
(xii) No fraud on or by the Company has been noticed or reported during
the period covered by our audit
For Walker Chandiok & Co LLP
(Formerly Walker, Chandiok & Co)
Chartered Accountants
Firm''s Registration No :
00I076N/N5000I3
per Lalit Kumar
Place : Gurgaon Partner
Date : 18 May 2015 Membership No : 095256
Mar 31, 2014
1. We have audited the accompanying financial statements of HSIL
Limited (the ''Company''), which comprise the Balance Sheet as at 31
March 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
2. 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 principles generally accepted in India, including the
Accounting Standards notified under 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 due
to fraud or error.
Auditors'' Responsibility
3. 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.
4. 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 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.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. 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 31 March 2014;
(b) in the case of Statement of Profit and Loss, of the profit 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 Require- ments
7. As required by the Companies (Auditor''s 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.
8. 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 financial statements dealt with by this report are in agreement
with the books of account;
d. in our opinion, the financial statements comply with the Accounting
Standards notified under the Companies Act, 1956 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; 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 Act.
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT
of even date to the members of HSIL Limited on the financial statements
for the year ended 31 March 2014 Based on the audit procedures
performed for the purpose of reporting a true and fair view on the
financial statements of the Company and taking into consideration the
information and explanations given to us and the books of account and
other records examined by us in the normal course of audit, we report
that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a regular program of physical verification of its
fixed assets under which fixed assets are verified in a phased manner
over a period of three years 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) In our opinion, a substantial part of fixed assets has not been
disposed off during the year.
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year, except for
goods-in-transit.
(b) The procedures of physical verification of inventory 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 and no
material discrepancies between physical inventory and book records were
noticed on physical verification.
(iii) (a) The Company has granted unsecured loan to one party covered
in the register maintained under Section 301 of the Act. The maximum
amount outstanding during the year is Rs. 500 lacs and the year-end
balance is Rs. Nil.
(b) In our opinion, the rate of interest and other terms and conditions
of such loans are not, prima facie, prejudicial to the interest of the
Company.
(c) In respect of loans granted, receipt of the principal amount and
the interest is regular.
(d) There is no overdue amount in respect of loans granted to such
company.
(e) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under Section 301 of the Act. Accordingly, the provisions of clauses
4(iii)(f) and 4(iii)(g) of the Order are not applicable.
(iv) In our opinion, there is an adequate internal control system
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services. During the course of our audit, no major
weakness has been noticed in the internal control system in respect of
these areas.
(v) (a) In our opinion, the particulars of all contracts or
arrangements that need to be entered into the register maintained under
Section 301 of the Act have been so entered.
(b) In our opinion, the transactions made in pursuance of such
contracts or arrangements and exceeding the value of rupees five lacs
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) The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the Companies
(Acceptance of Deposits) Rules, 1975. Accordingly, the provisions of
clause 4(vi) of the Order are not applicable.
(vii) In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under clause (d) of sub-section (1) of
Section 209 of the Act in respect of Company''s products/services and
are of the opinion that, prima facie, the prescribed accounts and
records have been made and maintained. However, we have not made a
detailed examination of the cost records with a view to determine
whether they are accurate or complete.
(ix) (a) The Company is regular in depositing the undisputed statutory
dues including provident fund, investor education and protection fund,
employees'' state insurance, income tax, sales tax, wealth tax, service
tax, custom duty, excise duty, cess and other material statutory dues,
as applicable, with the appropriate authorities. Further, no
undisputed amounts payable in respect thereof were outstanding at the
year- end for a period of more than six months from the date they
become payable.
b) The dues outstanding in respect of sales tax, income-tax, custom
duty, wealth tax, excise duty, cess on account of any dispute, are as
follows:
Name of the statute Nature of dues Amount
(Rs. in lacs)
The Central Excise Act, 1944 Duty on captive 5.00
consumption of plaster
of paris
The Central Excise Act, 1944 Duty on cisterns cleared 27.80
with fittings
The Central Excise Act, 1944 Duty on C.I boring/brass/ 103.98
copper boring/ capital
goods scrap/waste
paper/waste shrink/
stretch film
The Central Excise Act, 1944 Duty on Structural steel 166.12
Delhi Sales Tax Act, 1975 Sales tax demand due 253.35
to non-submission of
statutory forms
APVAT Act Availment of credit on 11.36
value added tax for
purchase of plant related
items
Finance Act, 1994 Availment of cenvat 3.33
credit on service tax for
outward freight
APVAT Act Availment of credit on 6.94
value added tax for
purchase of LPG
Entry Tax Act Entry tax on electrical 24.20
panels and other items
Income Tax Act, 1961 Demand u/s 143(3) 62.65
The Central Excise Act,1944 Clearance of pet bottles 53.26
from the manufacturing
plant without proper
invoice and payment of
excise duty
The Central Excise Act, 1944 Non-payment of service 4.72
tax on good transport
agency service.
Name of the statute Amount paid Period to
under protest which the
(Rs. in lacs) amount
relates
The Central Excise Act, 1944 2.50 FY 1990 - 91
The Central Excise Act, 1944 - FY 1987 - 89
The Central Excise Act, 1944 10.74 FY 2005-06
The Central Excise Act, 1944 40.00 FY 2009-10
Delhi Sales Tax Act, 1975 37.25 FY 2004-05 to
2011-12
APVAT Act - FY 2011-12
and 2012-13
Finance Act, 1994 3.33 FY 2004-05 to
FY 2006 -07
APVAT Act 3.19 FY 2011-12
and 2012-13
Entry Tax Act 12.66 FY 2013-14
Income Tax Act, 1961 - AY 2011-12
The Central Excise Act,1944 3.81 FY 2006-07
The Central Excise Act, 1944 - FY 1999-2000
and FY 2005-
08
Name of the statute Forum where dispute
is pending
The Central Excise Act, 1944 Customs, Excise and
Service tax Appellate
The Central Excise Act, 1944 Commissioner of
Central Excise, Rohtak
The Central Excise Act, 1944 Customs, Excise and
Service tax Appellate
Tribunal.
The Central Excise Act, 1944 Customs, Excise and
Service tax Appellate
Tribunal.
Delhi Sales Tax Act, 1975 Commissioner
(Appeals), sales tax.
APVAT Act Appellate Deputy
Commissioner Rural
Division, Hyderabad.
Finance Act, 1994 Customs, Excise and
Service tax Appellate
Tribunal
APVAT Act Appellate Deputy
Commissioner Rural
Division, Hyderabad.
Entry Tax Act Rajasthan High Court.
Income Tax Act, 1961 Commissioner
Income Tax (Appeals)
The Central Excise Act,1944 Customs, Excise and
Service tax Appellate
Tribunal
The Central Excise Act, 1944 Customs, Excise and
Service tax Appellate
Tribunal
(x) In our opinion, the Company has no accumulated losses at the end of
the financial year and it has not incurred cash losses in the current
and the immediately preceding financial year.
(xi) The Company has not defaulted in repayment of dues to any bank or
financial institution during the year. The Company did not have any
outstanding debentures during the year.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities. Accordingly, the provisions of clause 4(xii) of the Order
are not applicable.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Accordingly, the provisions of clause 4(xiii) of
the Order are not applicable.
(xiv) In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable.
(xv) In our opinion, the terms and conditions on which the Company has
given guarantee for loans taken by others from banks or financial
institutions are not, prima facie, prejudicial to the interest of the
Company.
(xvi) In our opinion, the Company has applied the term loans for the
purpose for which these loans were obtained.
(xvii)In our opinion, no funds raised on short-term basis have been
used for long-term investment.
(xviii) During the year, the Company has not made any preferential
allotment of shares to parties or companies covered in the register
maintained under Section 301 of the Act. Accordingly, the provisions of
clause 4(xviii) of the Order are not applicable.
(xix) The Company has neither issued nor had any outstanding debentures
during the year. Accordingly, the provisions of clause 4(xix) of the
Order are not applicable.
(xx) The Company has not raised any money by public issues during the
year. Accordingly, the provisions of clause 4(xx) of the Order are not
applicable.
(xxi) No fraud on or by the Company has been noticed or reported during
the period covered by our audit.
For Walker Chandiok & Co LLP
(formerly Walker, Chandiok & Co)
Chartered Accountants
Firm Registration No.: 001076N
per Atul Seksaria
Place: Gurgaon Partner
Date: 29 May 2014 Membership No.: 086370
Mar 31, 2013
Report on the Financial Statements
1. We have audited the accompanying financial statements of HSIL
Limited ("the Company"), which comprise the Balance Sheet as at 31
March 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
2. 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 principles generally accepted in India, including 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
3. 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.
4. 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.
5. We believe that the audit evidence we have obtained is suficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. 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 afairs of the
Company as at 31 March 2013;
(b) in the case of Statement of Profit and Loss, of the profit 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
7. As required by the Companies (Auditor''s 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.
8. 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 financial statements dealt with by this report are in agreement
with the books of account;
d. in our opinion, the financial statements comply with the Accounting
Standards referred to in sub-section (3C) of Section 211 of the Act;
and
e. on the basis of written representations received from the
directors, as on 31 March 2013 and taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2013
from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Act.
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the financial statements of the Company and
taking into consideration the information and explanations given to us
and the books of account and other records examined by us in the normal
course of audit, we report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a regular program of physical verification of its
fixed assets under which fixed assets are verified in a phased manner
over a period of three years 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) In our opinion, a substantial part of fixed assets has not been
disposed of during the year.
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year.
(b) The procedures of physical verification of inventory 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 and no
material discrepancies were noticed on physical verification.
(iii) (a) The Company has granted unsecured loans to one party covered
in the register maintained under Section 301 of the Act. The maximum
amount outstanding during the year is Rs. 925 lacs and the year-end
balance is Rs. 725 lacs.
(b) In our opinion, the rate of interest and other terms and conditions
of such loans are not, prima facie, prejudicial to the interest of the
Company.
(c) In respect of loans granted, the interest and principal amounts are
repayable on demand and since the repayment of such loans has not been
demanded, in our opinion, repayment of the interest and principal
amount is regular.
(d) There is no overdue amount in respect of loans granted to such
companies, firms or other parties.
(e) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under Section 301 of the Act. Accordingly, the provisions of clauses
4(iii)(f) and 4(iii)(g) of the Order are not applicable.
(iv) In our opinion, there is an adequate internal control system
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services. During the course of our audit, no major
weakness has been noticed in the internal control system in respect of
these areas.
(v) (a) In our opinion, the particulars of all contracts or
arrangements that need to be entered into the register maintained under
Section 301 of the Act have been so entered.
(b) In our opinion, the transactions made in pursuance of such
contracts or arrangements 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) The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the Companies
(Acceptance of Deposits) Rules, 1975. Accordingly, the provisions of
clause 4(vi) of the Order are not applicable.
(vii) In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under clause (d) of sub-section (1) of
Section 209 of the Act in respect of Company''s products / services and
are of the opinion that, prima facie, the prescribed accounts and
records have been made and maintained. However, we have not made a
detailed examination of the cost records with a view to determine
whether they are accurate or complete.
(ix) (a) The Company is regular in depositing the undisputed statutory
dues including provident fund, investor education and protection fund,
employees'' state insurance, income tax, sales tax, wealth tax, service
tax, custom duty, excise duty, cess and other material statutory dues,
as applicable, with the appropriate authorities. Further, no
undisputed amounts payable in respect thereof were outstanding at the
year-end for a period of more than six months from the date they become
payable.
(b) The dues outstanding in respect of sales-tax, income-tax, custom
duty, wealth-tax, excise duty, cess on account of any dispute, are as
follows:
Name of the
statute Nature of dues Amount
Rs. in lacs
The Central Excise
Act,1944 Duty on captive 5.00
consumption of
plaster of paris
The Central Excise
Act, 1944 Duty on cisterns cleared 27.80
with fittings
The Central Excise
Act,1944 Duty on C.I boring / brass 103.98
/ copper boring / capital
goods scrap / waste paper
/ waste shrink / stretch film
The Central Excise
Act, 1944 Duty on Structural steel 166.12
Delhi Sales
Tax Act, 1975 Sales tax demand due 114.32
to non-submission of
statutory forms
Income Tax Act, 1961 Excess claim of 283.60
depreciation on Glass Furnace
APVAT Act Duty on inter-unit
transfer 33.72
of bottles
Finance Act, 1994 Availment of cenvat credit 3.33
on Service Tax for outward
freight
Name Period to which Forum where dispute is pending
the amount
relates
The Central Excise
Act,1944 FY 1990 - 91 Customs, Excise and Service tax
Appellate Tribunal. Out of this,
Rs. 2.50 lacs has been paid under
protest
The Central Excise
Act,1944 FY 1987 - 89 Commissioner of Central Excise,
Rohtak
The Central Excise
Act,1944 FY 2005-06 Commissioner of Customs &
Central Excise (Appeals). Out
of this demand, Rs. 10.74 lacs
has been deposited by the
Company under protest.
The Central Excise
Act,1944 FY 2009-10 Commissioner of Customs &
Central Excise (Appeals). Out
of this demand, Rs. 40.00 lacs
have been deposited by the
Company under protest.
The Central Excise
Act,1944 FY 1998-99 to Commissioner (Appeals), sales
2009-10 tax. Out of this demand, Rs. 36.37
lacs has been deposited by the
Company and assessment for
the year
The Central Excise
Act,1944 1998-99 to
2004-05 involving disputed tax of
Rs. 77.95 lacs has been
remanded back to the
Assessing Oficer.
The Central Excise
Act,1944 AY 2009-10 Commissioner Income Tax
(Appeals) Out of a total
demand, Rs. 283.60 lacs,
the Company has deposited Rs.
225 lacs against such demand.
The Central Excise
Act,1944 FY 2009-10 and Additional Commissioner of
2010-11 Commercial taxes - Legal. Out of
this demand, Rs. 16.86 lacs have
been deposited by the Company
under protest.
The Central Excise
Act,1944 FY 2004-05 to
FY Customs, Excise and Service
tax
2006 -07 Appellate Tribunal.
(x) In our opinion, the Company has no accumulated losses at the end of
the financial year and it has not incurred cash losses in the current
and the immediately preceding financial year.
(xi) The Company has not defaulted in repayment of dues to any bank or
financial institution during the year. The Company did not have any
outstanding debentures during the year.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities. Accordingly, the provisions of clause 4(xii) of the Order
are not applicable.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Accordingly, the provisions of clause
4(xiii) of the Order are not applicable.
(xiv) In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable.
(xv) In our opinion, the terms and conditions on which the Company has
given guarantee for loans taken by others from banks or financial
institutions are not, prima facie, prejudicial to the interest of the
Company.
(xvi) In our opinion, the Company has applied the term loans for the
purpose for which these loans were obtained.
(xvii) In our opinion, no funds raised on short-term basis have been
used for long-term investment.
(xviii) During the year, the Company has not made any preferential
allotment of shares to parties or companies covered in the register
maintained under Section 301 of the Act. Accordingly, the provisions
of clause 4(xviii) of the Order are not applicable.
(xix) The Company has neither issued nor had any outstanding debentures
during the year. Accordingly, the provisions of clause 4(xix) of the
Order are not applicable.
(xx) The Company has not raised any money by public issues during the
year. Accordingly, the provisions of clause 4(xx) of the Order are not
applicable.
(xxi) No fraud on or by the Company has been noticed or reported during
the period covered by our audit.
For Walker, Chandiok & Co
Chartered Accountants
Firm Registration No.: 001076N
per Atul Seksaria
Place: Gurgaon Partner
Date: 24 May 2013 Membership No.: 086370
Mar 31, 2012
1. We have audited the attached Balance Sheet of HSIL Limited ('the
Company'), as at 31 March 2012, and also the Statement of Profit and
Loss and the Cash Flow Statement for the year ended on that date
annexed thereto (collectively referred as the 'financial statements').
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. 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 ('the
order') (as amended) issued by the Central Government of India in terms
of sub-section (4A) of Section 227 of the Companies Act, 1956 ('the
Act') , we enclose in the Annexure a statement on the matters specified
in paragraphs 4 and 5 of the Order.
4. Without qualifying our opinion, we draw attention to Note 49 to the
financial statements regarding the scheme of arrangement ('the
scheme'), approved by Hon'ble Calcutta High Court. In terms of the
scheme, the Company has revalued only a portion of its freehold land by
crediting the resulting gain of Rs. 22,500 lacs to the Business
Reconstruction Reserve Account ("the BRR account"). The applicable
accounting standards and generally accepted accounting principles do
not provide for revaluation of part of a class of asset. However, the
Company has followed the accounting treatment as prescribed under the
scheme approved by the Hon'ble High Court. Had the Company followed the
generally accepted accounting principles, freehold land and reserves as
on 31 March 2012 would have been lower by Rs. 22,500 lacs.
5. Further to our comments in the Annexure referred to 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 purposes 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 financial statements dealt with by this report are in agreement
with the books of account;
(d) On the basis of written representations received from the
directors, as on 31 March 2012 and taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2012
from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Act;
(e) In our opinion and to the best of our information and according to
the explanations given to us, the financial statements dealt with by
this report comply with the accounting standards referred to in sub-
section (3C) of Section 211 of the Act and 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, in the case of:
(i) The Balance Sheet, of the state of affairs of the Company as at 31
March 2012;
(ii) The Statement of Profit and Loss, of the profit for the year ended
on that date; and
(iii) The Cash Flow Statement, of the cash flows for the year ended on
that date.
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the financial statements of the Company and
taking into consideration the information and explanations given to us
and the books of account and other records examined by us in the normal
course of audit, we report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a regular program of physical verification of its
fixed assets under which fixed assets are verified in a phased manner
over a period of three years 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) In our opinion, a substantial part of fixed assets has not been
disposed off during the year.
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year.
(b) The procedures of physical verification of inventory 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 and no
material discrepancies were noticed on physical verification.
(iii) (a) The Company has granted unsecured loans to two parties
covered in the register maintained under Section 301 of the Act. the
maximum amount outstanding during the year is Rs. 1,500 lacs and the
year-end balance is Rs. 900 lacs.
(b) In our opinion, the rate of interest and other terms and conditions
of such loans are not, prima facie, prejudicial to the interest of the
Company.
(c) In respect of loans granted, the interest and principal amounts are
repayable on demand and since the repayment of such loans has not been
demanded, in our opinion, repayment of the interest and principal
amount is regular.
(d) There is no overdue amount in respect of loans granted to such
companies, firms or other parties.
(e) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under Section 301 of the Act. Accordingly, the provisions of clauses
4(iii)(f) and 4(iii)(g) of the Order are not applicable.
(iv) In our opinion, there is an adequate internal control system
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services. During the course of our audit, no major
weakness has been noticed in the internal control system in respect of
these areas.
(v) (a) In our opinion, the particulars of all contracts or
arrangements that need to be entered into the register maintained under
Section 301 of the Act have been so entered.
(b) In our opinion, the transactions made in pursuance of such
contracts or arrangements 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) The Company has not accepted any deposits from the public within
the meaning of Sections 58a and 58AA of the Act and the Companies
(Acceptance of Deposits) Rules, 1975. Accordingly, the provisions of
clause 4(vi) of the order are not applicable.
(vii) In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
(viii) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1 )(d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
(ix) (a) The Company is regular in depositing the undisputed statutory
dues including provident fund, investor education and protection fund,
employees' state insurance, income tax, sales tax, wealth tax, service
tax, custom duty, excise duty, cess and other material statutory dues,
as applicable, with the appropriate authorities. Further, no undisputed
amounts payable in respect thereof were outstanding at the year-end for
a period of more than six months from the date they become payable.
(b) The dues outstanding in respect of sales-tax, income-tax, custom
duty, wealth-tax, excise duty, cess on account of any dispute, are as
follows:
Name of the Nature of dues Amount
statute (Rs. in lacs)
The Central Duty on captive 5.00
Excise Act,1944 consumption of plaster
of paris
The Central Duty on cisterns 27.80
Excise Act,1944 cleared with fittings
The Central Duty on C.I boring/ 103.98
Excise Act,1944 brass / copper boring /
capital goods scrap / waste
paper / waste shrink /
stretch film
The Central Duty on Structural 166.12
Excise Act,1944 steel
Delhi Sales Sales tax demand 189.99
due to non
Tax Act, submission of
1975 statutory forms
APVAT Act Duty on interunit 33.72
transfer of bottles
Finance Act, Availment of 3.33
1994 cenvat credit on
Service Tax for
outward freight
APVAT Act Demand raised for 20.88
VAT
Name of the Statute Period to which Forum where dispute is
pending
the amount
relates
The Central Excise
Act, 1944 FY 1990 - 1991 Customs, Excise and
Service tax Appellate
Tribunal. Out of this,
Rs. 2.50 lacs has been
paid under protest
The Central Excise
Act, 1944 FY 1987 - FY 1989 Commissioner of Central
Excise, Rohtak
The Central Excise
Act, 1944 FY 2005-06 Commissioner of Customs &
Central Excise (Appeals).
Out of this demand,
Rs. 10.74 lacs has been
deposited by the Company
under protest.
The Central Excise
Act, 1944 FY 2009-10 Commissioner of Customs &
Central Excise (Appeals).
Out of this demand,
Rs. 40.00 lacs have been
deposited by the Company
under protest.
Delhi Sales Tax
Act, 1975 FY 1998-99 to Commissioner (Appeals),
sales tax.
2009-10 Out of this demand,
Rs. 32.28 lacs has been
deposited by the Company
and assessment for the
year 1998-99 to 2004-05
involving disputed tax of
Rs. 106.76 lacs has been
remanded back to the
Assessing Officer.
APVAT Act FY 2009-10 and Additional Commissioner of
2010-11 Commercial taxes - Legal.
Out of this demand,
Rs. 16.86 lacs have been
deposited by the Company
under protest.
Finance Act 1994 FY 2004-05 to FY Customs, Excise and
Service tax
2006-07 Appellate Tribunal.
APVAT Act FY 2004-05 and Deputy Commissioner
2006-07
(x) In our opinion, the Company has no accumulated losses at the end of
the financial year and it has not incurred cash losses in the current
and the immediately preceding financial year.
(xi) The Company has not defaulted in repayment of dues to any bank or
financial institution during the year. the Company did not have any
outstanding debentures during the year.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities. Accordingly, the provisions of clause 4(xii) of the Order
are not applicable.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/
mutual benefit fund / society. Accordingly, the provisions of clause
4(xiii) of the Order are not applicable.
(xiv) In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable.
(xv) In our opinion, the terms and conditions on which the Company has
given guarantee for loans taken by others from banks or financial
institutions are not, prima facie, prejudicial to the interest of the
Company.
(xvi) In our opinion, the Company has applied the term loans for the
purpose for which these loans were obtained.
(xvii) In our opinion, no funds raised on short-term basis have been
used for long-term investment.
(xviii) During the year, the Company has not made any preferential
allotment of shares to parties or companies covered in the register
maintained under Section 301 of the Act. Accordingly, the provisions of
clause 4(xviii) of the Order are not applicable.
(xix) The Company has neither issued nor had any outstanding debentures
during the year. Accordingly, the provisions of clause 4(xix) of the
Order are not applicable.
(xx) The Company has not raised any money by public issues during the
year. Accordingly, the provisions of clause 4(xx) of the Order are not
applicable.
(xxi) According to the information and explanations given to us, except
for fraudulent withdrawal of funds at one of the unit of the Company,
described in note 44 to the financial statements, no fraud on or by the
Company has been noticed or reported during the period covered by our
audit. As further informed to us, the Company has taken adequate follow
up action, including strengthening of systems.
For Walker, Chandiok & Co
Chartered Accountants
Firm Registration No.: 001076N
per B. P. Singh
Place : Gurgaon Partner
Date : 29 May 2012 Membership No.: 70116
Mar 31, 2011
1. We have audited the attached Balance Sheet of HSIL Limited, (the
ÃCompany') as at 31 March 2011, and also the Profit and Loss Account
and the Cash Flow Statement for the year ended on that date annexed
thereto (collectively referred as the Ãfinancial statements'). 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. 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 (Auditors' Report) Order, 2003 (the
ÃOrder') (as amended), issued by the Central Government of India in
terms of sub-section (4A) of section 227 of the Companies Act, 1956
(the ÃAct'), we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
4. Further to our comments in the Annexure referred to 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 purposes 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 financial statements dealt with by this report are in agreement
with the books of account;
d. On the basis of written representations received from the
directors, as on 31 March 2011 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31 March 2011 from being appointed as a director in terms of clause (g)
of sub-section (1) of section 274 of the Act;
e. In our opinion and to the best of our information and according to
the explanations given to us, the financial statements dealt with by
this report comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Act and the Rules framed there
under and 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, in the case of:
i) the Balance Sheet, of the state of affairs of the Company as at 31
March 2011;
ii) the Profit and Loss Account, of the profit for the year ended on
that date; and
iii) the Cash Flow Statement, of the cash flows for the year ended on
that date.
Annexure to the Auditors' Report of even date to the members of HSIL
Limited, on the financial statements for the year ended 31 March 2011
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the financial statements of the Company and
taking into consideration the information and explanations given to us
and the books of account and other records examined by us in the normal
course of audit, we report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a regular programme of physical verification of its
fixed assets by which fixed assets are verified in a phased manner over
a period of three years. In our opinion, this periodicity of physical
verification 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) In our opinion, a substantial part of fixed assets has not been
disposed off during the year.
(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 inventory 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 and no
material discrepancies were noticed on physical verification.
(iii) (a) The Company has not granted any loan, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 301 of the Act. Accordingly, the provisions of clauses
4(iii)(b) to (d) of the Order are not applicable.
(b) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under section 301 of the Act. Accordingly, the provisions of clauses
4(iii) (f) and 4(iii)(g) of the Order are not applicable.
(iv) In our opinion, there is an adequate internal control system
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services.
(v) (a) In our opinion, the particulars of all contracts or
arrangements that need to be entered into the register maintained under
section 301 of the Act have been so entered.
(b) In our opinion, the transactions made in pursuance of such
contracts or arrangements and exceeding the value of rupees five lacs
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) The Company has not accepted any deposits from the public within
the meaning of sections 58A and 58AA of the Act and the Companies
(Acceptance of Deposits) Rules, 1975. Accordingly, the provisions of
clause 4(vi) of the Order are not applicable.
(vii) In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
(viii) To the best of our knowledge and belief, the Central Government
has not prescribed maintenance of cost records under clause (d) of
sub-section (1) of section 209 of the Act, in respect of the Company's
products. Accordingly, the provisions of clause 4(viii) of the Order
are not applicable.
(ix) (a) The Company is generally regular in depositing the undisputed
statutory dues including provident fund, investor education and
protection fund, employees' state insurance, income tax, sales tax,
wealth tax, service tax, custom duty, excise duty, cess and other
material statutory dues, as applicable, with the appropriate
authorities. Further, no undisputed amounts payable in respect thereof
were outstanding at the year end for a period of more than six months
from the date they become payable.
(b) The dues outstanding in respect of sales tax, income tax, custom
duty, wealth tax, excise duty, cess on account of any dispute, are as
follows:
Name of the Nature of
Statute dues Amount Period to which the
(Rs. in lacs) amount relates
The Central Duty on captive 5.00 June 1990 to April
Excise Act,1944 consumption of 1991
plaster of paris
The Central Duty on cisterns 27.80 Feb. 1988 to July
Excise Act,1944 cleared with fittings 1988
The Central Duty on C.I boring/ 103.98 2004-05 to 2005-06
Excise Act,1944 brass/ copper boring/
capital goods scrap/
waste paper/ waste
shrink/ stretch film
The Central Duty on Structural 166.12 2009-10
Excise Act,1944 Steel
Delhi Sales Tax Sales tax demand due 219.91 1998-99 to 2006-07
Act, 1975 to non submission of
statutory forms
The Income Tax Income tax and 5.71 AY 2004-05
Act, 1961 wealth tax demand
Name of the Forum where dispute is
Statute pending
The Central Excise Act,1944 Customs, Excise and Service tax
Appellate Tribunal. Out of this,
Rs. 2.50 lacs has been paid
under protest
The Central Excise Act,1944 Commissioner of Central Excise,
Rohtak
The Central Excise Act,1944 Commissioner of Customs &
Central Excise (Appeals). Out of
this demand, Rs. 10.74 lacs has
been deposited by the Company
under protest
The Central Excise Act,1944 Commissioner of Customs &
Central Excise (Appeals).
Delhi Sales Tax Act, 1975 Commissioner (Appeals),
sales tax. Out of this demand,
Rs.32.28 lacs has been deposited
by the Company and assessment
for the year 1998-99 to 2004-
05 involving disputed tax of Rs.
106.76 lacs has been remanded
back to the Assessing Officer.
The Income Tax Act, 1961 Commissioner of Income Tax
(Appeals)
(x) In our opinion, the Company has no accumulated losses at the end of
the financial year and it has not incurred cash losses in the current
and the immediately preceding financial year.
(xi) In our opinion, the Company has not defaulted in repayment of dues
to a financial institution or a bank. There were no outstanding
debentures during the year.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities. Accordingly, the provisions of clause 4(xii) of the Order
are not applicable.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/
mutual benefit fund/ society. Accordingly, the provisions of clause
4(xiii) of the Order are not applicable.
(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 Order are not applicable.
(xv) In our opinion, the terms and conditions on which the Company has
given guarantee for loans taken by others from banks or financial
institutions are not, prima facie, prejudicial to the interest of the
Company.
(xvi) In our opinion, the Company has applied the term loans for the
purpose for which the loans were obtained.
(xvii) In our opinion, no funds raised on short-term basis have been
used for long-term investment.
(xviii) The Company has not made any preferential allotment of shares
to parties or companies covered in the register maintained under
section 301 of the Act. Accordingly, the provisions of clause 4(xviii)
of the Order are not applicable.
(xix) The Company has neither issued nor had any outstanding debentures
during the year. Accordingly, the provisions of clause 4(xix) of the
Order are not applicable.
(xx) The Company has not raised any money by public issues during the
year. Accordingly, the provisions of clause 4(xx) of the Order are not
applicable.
(xxi) No fraud on or by the Company has been noticed or reported during
the period covered by our audit.
For Walker, Chandiok & Co
Chartered Accountants
Firm Registration No: 001076N
per B. P. Singh
Place : Gurgaon Partner
Date : 18 May 2011 Membership No. 70116
Mar 31, 2010
1. We have audited the attached Balance Sheet of HSIL Limited, (the
Company) as at 31 March 2010, and also the Profit and Loss Account
and the Cash Flow Statement for the year ended on that date annexed
thereto (collectively referred as the Ãfnancial statements). These
fnancial 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
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 (Auditors Report) Order, 2003 (the
Order) (as amended), issued by the Central Government of India in
terms of sub-section (4A) of section 227 of the Companies Act, 1956
(the Act), we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
4. Without qualifying our opinion, we draw attention to Note 21 on
Schedule 20 to the financial statements regarding the Scheme of
Arrangement (the Scheme), approved by Honble Calcutta High Court. In
terms of the Scheme, the Company has revalued only a portion of its
freehold land by crediting the resulting gain of Rs. 23,500 lacs to the
Business Reconstruction Reserve Account ("the BRR account") and has
transferred Rs. 3,732.63 lacs (detailed in the Note) from the BRR
account to the profit and loss account. The applicable accounting
standards and generally accepted accounting principles do not provide
for revaluation of part of a class of asset and credit of amounts
released from reserves to the profit and loss account. However, the
Company has followed the accounting treatment as prescribed under the
Scheme approved by Honble High Court at Kolkata. Had the Company
followed the generally accepted accounting principles, the profit after
tax would have been lower by Rs. 3,732.63 lacs and reserves would have
been lower by Rs. 27,232.63 lacs.
5. Further to our comments in the Annexure referred to 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 purposes 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 financial statements dealt with by this report are in agreement
with the books of account;
d. On the basis of written representations received from the
directors, as on 31 March 2010 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31 March 2010 from being appointed as a director in terms of clause (g)
of sub-section (1) of section 274 of the Act;
e. In our opinion and to the best of our information and according to
the explanations given to us, the financial statements dealt with by
this report comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Act and the Rules framed there
under and 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, in the case of:
i) the Balance Sheet, of the state of affairs of the Company as at 31
March 2010;
ii) the Profit and Loss Account, of the profit for the year ended on
that date; and
iii) the Cash Flow Statement, of the cash flows for the year ended on
that date
Annexure to the Auditors Report
Annexure to the Auditors Report of even date to the members of HSIL
Limited (formerly known as Hindustan Sanitaryware & Industries
Limited), on the Financial statements for the year ended 31 March 2010
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the Financial statements of the Company and
taking into consideration the information and explanations given to us
and the books of account and other records examined by us in the normal
course of audit, we report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a regular programme of physical verification of its
fixed assets by which fixed assets are verified in a phased manner over
a period of three years. In our opinion, this periodicity of physical
verification 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) In our opinion, a substantial part of fixed assets has not been
disposed off during the year.
(ii) (a) Physical verification of inventory (except stock in transit)
has been carried out at reasonable intervals. Finished goods
inventories are being verified by the management in a phased manner
over the period of two years.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business but its coverage needs to be
increased.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
(iii) (a) The Company has not granted any loan, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 301 of the Act. Accordingly, the provisions of clauses
4(iii)(b) to (d) of the Order are not applicable.
(b) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under section 301 of the Act. Accordingly, the provisions of clauses
4(iii) (f) and 4(iii)(g) of the Order are not applicable.
(iv) In our opinion, there is an adequate internal control system
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services.
(v) (a) In our opinion, the particulars of all contracts or
arrangements that need to be entered into the register maintained under
section 301 of the Act have been so entered.
(b) In our opinion, the transactions made in pursuance of such
contracts or arrangements and exceeding the value of rupees five lacs
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) The Company has not accepted any deposits from the public within
the meaning of sections 58A and 58AA of the Act and the Companies
(Acceptance of Deposits) Rules, 1975. Accordingly, the provisions of
clause 4(vi) of the Order are not applicable.
(vii) In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
(viii) To the best of our knowledge and belief, the Central Government
has not prescribed maintenance of cost records under clause (d) of
sub-section (1) of section 209 of the Act, in respect of Companys
products. Accordingly, the provisions of clause 4(viii) of the Order
are not applicable.
(ix) (a) The Company is generally regular in depositing the undisputed
statutory dues including provident fund, investor education and
protection fund, employees state insurance, income tax, sales tax,
wealth tax, service tax, custom duty, excise duty, cess and other
material statutory dues, as applicable, with the appropriate
authorities. Further, no undisputed amounts payable in respect thereof
were outstanding at the year end for a period of more than six months
from the date they become payable.
(b) The dues outstanding in respect of sales tax, income tax, custom
duty, wealth tax, excise duty, cess on account of any dispute, are as
follows:
Name
of the Nature of dues Amount
Statute Rs. in
lacs
The Central Duty on captive 5.00
Excise Act,1944 consumption of plaster of
paris
The Central Duty on cisterns cleared 27.80
Excise Act,1944 with fittings
The Central Duty on C.I boring/ brass/ 91.48
Excise Act,1944 copper boring/ capital
goods scrap/ waste paper/
waste shrink/ stretch film
Delhi Sales Tax Sales tax demand due 172.50
Act, 1975 to non submission of
statutory forms
The Income Tax Income tax and wealth 182.29
Act, 1956 tax demand
Name of the Period to Forum where dispute is
Statute which the pending
amount relates
The Central June 1990 to Customs, Excise and Service
tax
Excise Act,1944 April 1991 Appellate Tribunal.Out of this,
Rs. 2.50 lacs has been
paid under protest.
The Central Feb. 1988 to Commissioner of Central Excise,
Excise Act,1944 July 1988 Rohtak
The Central 2002-03 to Commissioner of Customs &
Excise Act,1944 2006-07 Central Excise (Appeals).Out of
this demand, Rs. 10.74 lacs has
been deposited by the Company
under protest
The Central 1998-99 to Commissioner (Appeals), sales
Excise Act,1945 2005-06 tax. Out of this demand, Rs.
32.28 lacs has been deposited
by the Company and assessment
for the year 1998-99 to
2004-05- involving disputed tax
of Rs. 106.76 lacs has
been remanded back to the
Assessing officer.
The Sales Tax AY 2002-03 to Commissioner of Income Tax
Act,1975 2004-05 (Appeals)
(x) In our opinion, the Company has no accumulated losses at the end of
the financial year and it has not incurred cash losses in the current
and the immediately preceding financial year.
(xi) In our opinion, the Company has not defaulted in repayment of dues
to a financial institution or a bank. There were no outstanding
debentures during the year.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities. Accordingly, the provisions of clause 4(xii) of the Order
are not applicable.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/
mutual benefit fund/ society. Accordingly, the provisions of clause
4(xiii) of the Order are not applicable.
(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 Order are not applicable.
(xv) In our opinion, the terms and conditions on which the Company has
given guarantee for loans taken by others from banks or fnancial
institutions are not, prima facie, prejudicial to the interest of the
Company.
(xvi) In our opinion, the Company has applied the term loans for the
purpose for which the loans were obtained.
(xvii) In our opinion, no funds raised on short-term basis have been
used for long-term investment.
(xviii) The Company has not made any preferential allotment of shares
to parties or companies covered in the register maintained under
section 301 of the Act. Accordingly, the provisions of clause 4(xviii)
of the Order are not applicable.
(xix) The Company has neither issued nor had any outstanding debentures
during the year. Accordingly, the provisions of clause 4(xix) of the
Order are not applicable.
(xx) The Company has not raised any money by public issues during the
year. Accordingly, the provisions of clause 4(xx) of the Order are not
applicable.
(xxi) No fraud on or by the Company has been noticed or reported during
the period covered by our audit.
For Walker, Chandiok & Co
Chartered Accountants
Firm Registration No: 001076N
per B. P. Singh
Place : Gurgaon Partner
Date : 20 May 2010 Membership No. 70116