| We have audited the accompanying financial statements of HARIA EXPORTS
LIMITED, which comprise the Balance Sheet as at March 31, 2015, the
Statement of Profit and Loss and Cash Flow Statement for the year then
ended, and a summary of significant accounting policies and other
explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the matters stated in Section 134(5) of
the Companies Act. 2013 ("the Act") with respect to the preparation of
these financial statements that give a true and fair view of the
financial position, financial performance and cash flows of the Company
in accordance with the accounting principles generally accepted in
India, including the Accounting Standards specified under section 133
of the Act, read with rule 7 of the Companies (Accounts) Rules, 2014.
This responsibility also includes maintenance of adequate accounting
records in accordance with the provision of the Act for safeguarding
the assets of the company and for preventing and detecting frauds and
other irregularities, selection and application of appropriate
accounting policies, making judgments and estimates that are reasonable
and prudent; and design, implementation and maintenance of internal
financial controls, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provision of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
the accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India,
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
(b) in the case of the Statement of Profit and Loss, of the Loss for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors' Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Companies Act, we give in the
Annexure, a statement on the matters specified in paragraphs 3 and 4 of
the Order, to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
a. We have sought & obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c. The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d. In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e. On the basis of the written representations received from the
directors as on March 31, 2015, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2015,
from being appointed as a director in terms of Section 164(2) of the
Act.
f. With respect to the other matters to be included in the Auditor's
report in accordance with Rule 11 of the Companies ( Audit and
Auditors) Rules, 2014, in our opinion and to the best of our
information and according to the explanations given to us;
i. The Company does not have any pending litigation which would impact
its financial positions.
ii. The Company does not have any long term contracts including
derivative contracts for which there were any material foreseeable
losses;
iii. There are no amounts which are required to be transferred to the
Investor Education and Protection Fund by the Company.
ANNEXURE TO THE AUDITORS' REPORT
Referred to in Paragraph 1 under heading "Report on Other Legal and
Regulatory Requirements" of our report of even date on the accounts for
the year ended March 31, 2015 of HARIA EXPORTS LIMITED
(i) The Company does not have any fixed assets. Hence clause (ia) and
(ib) of paragraph 3 of the order are not applicable
(ii) (a) As informed to us, the inventory has been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable.
(b) The procedures explained to us, which are followed by the
management for physical verification of inventories, are in our opinion
reasonable and adequate in relation to the size of the company and the
nature of its business.
(c) In our opinion and according to the explanations given to us, the
company is maintaining proper records of its inventory. No material
discrepancies were noticed on such physical verification as compared to
the book records.
(iii) According to the information and explanations given to us, the
Company has granted loans, unsecured, to companies, firms or other
parties covered in the Register maintained under Section 189 of the
Act. The company has granted loan of Rs. 3,38,34,485/- during the year.
Outstanding amount of the said loan as on 31st March 2015 is
Rs.3,52,79,197/-.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets and sale of goods. The activities of the
company involve purchase of inventory and sale of goods. During the
course of our audit, no major weakness has been noticed in the
aforesaid internal control systems.
(v) During the year under consideration, the company has not accepted
any deposits from the public in accordance with the provisions of
section 73 to 76 of the Act and the rules framed there under.
(vi) In our opinion and according to the information and explanation
given to us company is not required to maintain cost records specified
by the Central Government under sub-section (1) of section 148 of the
Act.
(vii) In our opinion and according to the information and explanation
given to us in respect of statutory and other dues:
(a) The Company has been regular in depositing undisputed statutory
dues, including Provident fund, Income- tax, Sales Tax, Service Tax,
Cess and any other material statutory dues as applicable to it.
According to the information and explanation given to us, no undisputed
amounts payable in respect of outstanding statutory dues were in
arrears as at March 31, 2015 for a period of more than six months from
the date they became payable.
(b) According to the information and explanations given to us and the
records of the company examined by us, the disputed dues in respect of
Sales Tax and Income Tax are as under:
(c)
Nature of Dues Amount Period to which
amount relates
Income Tax 3,19,26,117/- F.Y. 1998-1999
F.Y. 1999-2000
F.Y. 2000-2001
Income Tax 27,030/- F.Y. 2010-2011
FEMA 27,19,901/- F.Y 2001-2002
Nature of Dues Forum where dispute is pending
Income Tax The Hon'ble High Court, Mumbai
Income Tax Commissioner of Income Tax Appeals
FEMA Appellate Tribunal for Foreign Exchange
(d) According to the information and explanation given to us there is
no amount required to be transferred to investor education and
protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and the rules made there under.
(viii) The company does not have any accumulated loss at the end of
financial year. However the company has incurred cash loss of Rs.
23,24,260/- during the financial year covered by our audit and Rs.
67,20,489 in the immediately preeceeding financial year.
(ix) According to the information and explanation given to us, the
Company did not have any dues to financial institutions, banks or
debentures holders.
(x) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
(xi) To the best of our knowledge and belief and according to the
information and explanations given to us, there have been no term loans
availed during the year.
(xii) To the best of our knowledge and according to the information and
explanations given to us, no fraud on or by the Company, has been
noticed or reported during the year.
FOR SUNDERJI GOSAR & CO.
CHARTERED ACCOUNTANTS
Firm Registration No.: 115543W
ALPESH SAVLA
PARTNER
M No. : 047828
DATE : 30/05/2015
PLACE : MUMBAI
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