INDEPENDENT AUDITORS
To the Members of Hind Industries Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Hind Industries Limited, which
comprise the Balance Sheet as at March 31, 2014, the Statement of Profit and Loss and Cash
Flow Statement for the year then ended, and a summary of significant accounting policies
and other explanatory information.
Management’s Responsibility for the Financial Statements
The Company’s Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position, financial performance
and cash flows of the Company in accordance with the Accounting Standards notified under
the Companies Act, 1956 (the Act) read with the General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013 and in accordance with the accounting principles generally accepted in
India. This responsibility includes the design, implementation and maintenance of internal
control relevant to the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether due to fraud or
error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our
audit. We conducted our audit in accordance with the Standards on Auditing issued by the
Institute of Chartered Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the
auditor’s judgment, including the assessment of the risks of material misstatement of
the financial statements, whether due to fraud or error. In making those risk assessments,
the auditor considers internal control relevant to the Company’s preparation and fair
presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company’s internal control. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall presentation of the
financial statements. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements give the information required by the Act
in the manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India: (a) In the case of the Balance Sheet, of the state
of affairs of the Company as at March 31, 2014;
(b) In the case of the Statement of Profit and Loss, of the profit 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 ordinary course of business of
the company and as per prevailing practice in the industry.
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, 2003 (the Order) issued
by the Central Government of India in terms of Section 227(4A) of the Act, we give in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purpose of our audit; b. In our opinion,
proper books of account as required by law have been kept by the Company so far as appears
from our examination of those books.
c. The Balance Sheet, 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 Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement comply with Accounting Standards notified under the Act read with the
General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of the Companies Act, 2013
e. On the basis of the written representations received from the directors as on March
31, 2014, taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2014, from being appointed as a director in terms of Section 274(1)(g) of
the Act.
f. Since the Central Government has not issued any notification as to the rate at which
the cess is to be paid under section 441A of the Companies Act, 1956 nor has it issued any
Rules under the said section, prescribing the manner in which such cess is to be paid, no
cess is due and payable by the Company.
|
ForM/s M. K. AGGARWAL & CO. |
|
Chartered Accountants |
|
(FRN – 01411N) |
|
C. A. (ATUL AGGARWAL) |
| Place : New Delhi |
Partner |
| Date : 30-05-2014 |
(M. No. 99374) |
ANNEXURE TO AUDITOR’S REPORT
Referred to in Paragraph 1 under the heading of "report on other legal and
regulatory requirements" of our report of even date
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.
c) In our opinion, the Company has not disposed off a substantial part of its fixed
assets during the year and the going concern status of the Company is not affected.
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. In regard to Loans and Advances:
a. The company has granted loans secured or unsecured to companies, firms or other
parties covered in the register maintained under Section 301 of the Companies Act, 1956.
The maximum amount outstanding during the year is Rs 10.29 Lacs and the year end balances
of such loan amount to Rs 10.29 lacs from one party, other than above the company has not
granted any loan, secured or unsecured to the party covered in the register maintained u/s
301 of the Act.
b. In our opinion the rate of interest and other term & condition on which the loan
have been granted to the party listed in the register maintained u/s 301 of the Act are
not prima-facie prejudicial to the interest of the company.
c. As informed, the company has taken loan, secured or unsecured from companies, firms
or other parties covered in the register maintained under Section 301 of the Companies
Act, 1956, the maximum amount outstanding during the year was Rs 1517.21 lacs and the year
end balance of such loan amounted to Rs 1517.21 lacs from five parties, other than above,
the company has not taken any loan secured or unsecured to the party listed in the
register maintain u/s 301 of the Act. However the terms & conditions as regard thereto
are not prima-facie prejudicial to the interest of the company.
d. According to the records of the company examined by us and the information and
explanations given to us, there is no overdue amount of loans taken or granted to
companies, firms or other parties listed in the registers maintained under section 301 of
the companies Act, 1956.
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. In respect of the contracts or arrangements referred to in Section 301 of the
Companies Act, 1956: (a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or arrangements that need to
be entered in the register maintained under Section 301 of the Companies Act, 1956 have
been so entered.
(b) In our opinion and according to the information and explanations given to us, the
transactions made in pursuance of contracts / arrangements entered in the Register
maintained under section 301 of the Companies Act, 1956 and exceeding the value of Rs
5,00,000 in respect of each party during the year have been made at prices which appear
reasonable as per information available with the Company.
6. According to the information and explanations given to us, the Company has not
accepted any deposit from the public. Therefore, the provisions of Clause (vi) of
paragraph 4 of the Order are not applicable to the Company.
7. In our opinion, the Company has an internal audit system commensurate with the size
and nature of its business.
8. To the best of our knowledge and as explained, the Central Government has not
prescribed the maintenance of cost records under clause (d) of sub section (1) of Section
209 of the Companies Act, 1956 for the products of the Company.
9. 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, 2014 for
a period of more than six months from the date of becoming payable.
b) Details of dues of Sale Tax, Income Tax which have not been deposited as on March
31, 2014 on account of disputes are given below:
| S. |
Name of the |
Nature of |
Amount |
Period to which the |
Forum where dispute is |
| No. |
Statute |
Dues |
(in crores) |
amount relates |
pending |
| 1. |
VAT & CST Act, 1944 |
Demand |
0.92 |
Assessment Year 2008-2009 To 2013-2014 |
Appellate Authorities, Ghaziabad |
| 2. |
Income Tax |
Demand |
77.52 |
Assessment Year 2010-2011 and 2011-2012 |
Income Tax Commissioner (Appeals), New Delhi |
10. The Company does not have accumulated losses at the end of the financial year. The
Company has not incurred cash losses during the financial year covered by the audit and in
the immediately preceding financial year.
11. Based on our audit procedures and according to the information and explanations
given to us, we are of the opinion that the Company has not defaulted in repayment of dues
to financial institutions, banks and debenture holders.
12. In our opinion and according to the explanations given to us and based on the
information available, no loans and advances have been granted by the Company on the basis
of security by way of pledge of shares, debentures and other securities.
13. In our opinion, the Company is not a chit fund / nidhi / mutual benefit fund /
society. Therefore, the provisions of clause (xiii) of paragraph 4 of the Order are not
applicable to the Company. 14. In our opinion, the company is not dealing in or trading in
shares, securities, debentures, and other investment.
15. The Company has given guarantees 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.
16. The Company has raised new term loans during the year. The term loans outstanding
at the beginning of the year and those raised during the year have been applied for the
purposes for which they were raised.
17. According to the information and explanations given to us and on an overall
examination of the Balance Sheet of the Company, we are of the opinion that there are no
funds raised on short-term basis that have been used for long-term investment.
18. The Company has not made any preferential allotment of shares to parties and
companies covered in the Register maintained under Section 301 of the Companies Act, 1956.
19. The Company does not have any outstanding debentures during the year.
20. The Company has not raised any monies by way of public issues during the year. 21.
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: 30-05-2014 |
(M. No. 99374) |
+91-9892691696
