| We have audited the accompanying standalone financial statements of
Hind Industries Limited, ("the Company") 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 STANDALONE FINANCIAL STATEMENTS
The Company's Board of Directors are responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation and presentation of the standalone financial
statement that give true and fair view of the financial position,
financial performance and cash flow of the company in accordance with
the accounting principles generally accepted in India, including
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rule, 2014. This responsibility also
included 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 the 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 control
that are operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give true and fair view
and free from material misstatements whether due to fraud & error.
AUDITORS' 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 &
auditing standards and the matter 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 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 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 accounting
policies used and the reasonableness of the accounting estimates made
by the 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 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:
(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 of the
Company for the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
EMPHASIS OF THE MATTER
Reference is drawn,
(a) To note no. 33, relating to items under reconciliation.
(b) To note no. 34, relating to stock, held by subsidiary company,
during the year.
Our opinion is not qualified in respect of above.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor's Report) Order, 2015("the
Order) issued by the Central Government of India in term of sub-section
11 of section 143 of the Act, we give in the annexure, a statement on
the matters specified in the paragraph 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 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, aforesaid standalone financial statement comply
with Accounting Standards specified under section 133 of the Act, read
with Rule 7 of the Companies (Account) Rule, 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 Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rule, 2014, in our opinion and to the best of our information and
according to the explanation given to us.
(i) The Company has disclosed the impact of pending litigation on its
financial position in its financial statement as refer to note no 27 to
the financial statements.
(ii) The Company has made provision as required under the applicable
law or accounting standard for material foreseeable losses to the
financial statement.
(iii) There were no amounts which were required to be transferred to
the Investor Education & Protection fund by the company.
Annexure to Independent Auditors' Report
Referred to in Paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our report of even date to the Members
of Hind Industries Limited.
1. In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b) As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner, which in our
opinion is reasonable, having regard to the size of the Company and
nature of its assets. No material discrepancies were noticed on such
physical verification.
2. In respect of its inventories:
a) The inventories have been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company has maintained proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventories as compared to the book records.
3. According to the information and explanation given to us, the
Company has granted loan secured and unsecured to the companies, firms
or the other parties concerned in the Register maintain under section
189 of the Companies Act, 2013. In respect of such loans,
a) the receipt of principal amount and interest have been as per
stipulation.
b) there is no overdue amount in excess of Rs. 1 lakh remain
outstanding at the year end.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchases of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in such internal control
system.
5. According to the information and explanations given to us, the
Company has not accepted any deposit from the public. Therefore, the
provisions of clause (v) of paragraph 3 of the CARO, 2015 are not
applicable to the Company.
6. To the best of our knowledge and as explained to us, the Central
Government has not prescribed the maintenance of cost records under of
Section 148(1) of the Companies Act, 2013 for the products of the
Company.
7. In respect of statutory dues:
a) According to the records of the Company, undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income-Tax, Sales Tax, Wealth Tax, Service
Tax, Customs Duty, Excise Duty, Cess, and other material statutory dues
have been generally regularly deposited with the appropriate
authorities. According to the information and explanations given to us,
no undisputed amounts payable in respect of the aforesaid dues were
outstanding as at March 31, 2015 for a period of more than six months
from the date of becoming payable, except as given below.
1. Provident Fund (EPF) payable of Rs. 297,234/- for the month of
September, 2014.
2. Employee State Insurance (ESIC) payable of Rs. 75,835/- for the
month of September, 2014.
3. Income Tax of Rs. 8,955,958/- for the assessment year 2013-14.
4. Income Tax of Rs. 10,989,661/- for the assessment year 2014-15.
b) Details of dues of Sale Tax, Income Tax which have not been
deposited as on March 31, 2015 on account of disputes are given below:
S. Name of the Nature of Amount (Rs.)
No. Statute Dues (in crores)
1. VAT & CST Act, 1944 Demand 0.92
2. Income Tax Demand 77.52
Name of the Period to which Forum where
Statute the amount relates dispute is pending
VAT & CST Act,1994 Assessment Year Appellate Authorities,
2008-2009 Ghaziabad
To 2013-2014
Income Tax Assessment Year Income Tax Commissioner
2010-2011 and (Appeals),New Delhi
2011-2012
8. The Company does not have accumulated losses at the end of the
financial year. The Company has incurred cash losses during the
financial year covered by the audit and has not incurred cash losses in
the immediately preceding financial year.
9. According to the information and explanations given by the
management, Company has not defaulted in the payment of the dues to the
financial institutions as on March 31, 2015 except amount due to Jammu
& Kashmir Bank of Rs. 203.68 lacs.
10. The Company has given guarantee for loans taken by others from
banks and financial institutions. According to the information and
explanations given to us, we are of the opinion that the terms and
conditions thereof are not prima facie prejudicial to the interest of
the Company.
11. According to the information and explanation given to us the term
loans outstanding at the beginning of the year have been applied for
the purposes for which they were raised.
12. In our opinion and according to the information and explanations
given to us, no material fraud on or by the Company has been noticed or
reported during the year.
For M/s M. K. AGGARWAL & CO.
Chartered Accountants
(FRN - 01411N)
(C.A. ATUL AGGARWAL)
Place: New Delhi Partner
Date : 04-09-2015 (M. No. 99374) | 