TO THE MEMBERS OF
HEMANG RESOURCES LIMITED
Report on the Financial Statements
Opinion
We have audited the accompanying financial statements of HEMANG RESOURCES
LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March,
2023, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended,
the
statement of changes in equity and a summary of the significant accounting policies and
other explanatory information. 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 including Ind AS, of
the Financial position of the Company as at 31st March 2023 and its financial
performance including other comprehensive income, its cash flows and the changes in equity
for the year ended on that date.
Basis for the Opinion
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. 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 independence requirements that are relevant to our
audit of the financial statements under the provisions of the Act and the Rules made
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.
Managements Responsibility for the Financial Statements
The Companys 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
and presentation 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 Indian 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 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 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
provisions 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 the 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 financial control relevant to the Companys 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 Companys Directors, 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.
Report on Other Legal and Regulatory Requirements
(1) As required by the Companies (Auditors Report) Order, 2016 ("the
Order") issued by the Central Government of India in terms of the powers conferred by
subsection
(11) of Section 143 of the Companies Act, 2013, we give in the Annexure-A, a
statement on the matters specified in 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, and the Cash Flow Statement, and the statement of changes in equity dealt
with by this Report are in agreement with the books of accounts. (d) In our opinion, the
aforesaid financial statements comply with the Indian 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 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 adequacy of the Internal Financials control over Financial
Reporting of the Company and the operating effectiveness of such controls, refer to our
separate report in Annexure B, (g) With respect to other matters to be included in the
Auditors 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 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 forward 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.
For A John Moris & Co. Chartered Accountants, FRN: 007220S
Sd/-
CA J SEBASTIAN Partner M No: 218962 Place: Chennai Date: 29.05.2023
UDIN: 23218962BGWEVR2322
ANNEXURE A TO THE AUDITORS REPORT
The Annexure referred to in our report to the members of HEMANG RESOURCES LIMITED
(‘the Company) on the financial statements for the year ended 31st March,
2023. We report that:
(I) (a) The Company has maintained Proper records showing full particulars
including quantitative details and situation of its 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 3 years. In accordance
with this programme, certain fixed assets have been verified during the year and no
material discrepancies were noticed on such verification. In our opinion, this periodicity
of physical verification is reasonable.
(c) According to the information and explanations given to us, and on the basis of the
examination of the records of the Company, the title deeds of immovable properties are
held in the name of the Company.
(II) The inventory has been physically verified during the year by the management
and no material discrepancies was noticed on such verification.
(III) The Company has not granted any loans, secured or unsecured to Companies,
Firms, Limited Liability Partnership or other parties, covered in the register maintained
under Section 189 of the Companies Act, 2013.
(IV) According to the information and explanations given to us, the Company has not
taken nor given any loan to its directors, hence the provisions of Sec 185 and 186 of the
Act, with respect to the Loans and Investments made is not applicable.
(V) The Company has not accepted any deposits from the public.
(VI) The Central Government has not prescribed the maintenance of cost records under
Section 148(1) of the Companies Act, 2013 for any of the products of the Company.
(VII) (a) According to the information and explanation given to us and on the basis
of our examination of the records of the Company, amount deducted/accrued in the books of
account in respect of undisputed statutory dues including Provident Fund, Income tax,
Sales Tax, Wealth Tax, Service Tax, Customs Duty and Excise Duty, Value added tax, cess
and any other material statutory dues have been regularly deposited during the year by the
Company with the appropriate authorities. According to the information and explanations
given to us, no undisputed amounts payable in respect of Provident Fund, Income tax, Sales
Tax, Wealth Tax, Service Tax, Customs Duty and Excise Duty, Value added tax, cess, GST and
other material statutory dues were in arrears as at 31st March 2023 for a
period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, the following
statutory dues which have not been deposited on account of dispute.
There are no statutory dues/litigation pending against the company other than the
following amounts involved as dues of Income Tax, Commercial Tax and other material
statutory dues and against which no material amount is deposited on account of pendency of
dispute. The details are as below: -
| Statute |
Forum where Dispute is pending |
Amount Involved |
Financial Year to which the amount relates |
| Commercial Tax (Surat) |
Joint Commissioner |
36,67,832/- |
2006-07 |
| Sales Tax (Maharashtra) |
Deputy Commissioner |
28,340/- |
2007-08 |
| Sales Tax (Surat) |
Deputy Commissioner |
10,33,42,468/- |
2012-13 |
| Custom Duty |
Commissioner (Appeals) |
2,77,54,116/- |
2012-13 |
| Custom Duty |
CESTAT (Appeals). |
81,91,647/- |
2013-14 |
| Customs Duty |
CESTAT (Appeals- |
63,61,616/- |
2014-15 |
|
Bangalore). |
|
|
| Sales Tax (Surat) |
DCCT |
11,44,82,001/- |
2013-14 |
| Sales Tax (Chennai) |
Assistant Commissioner |
23,185/- |
2010-11 |
| Sales Tax (Chandrapur) |
Deputy Commissioner |
1,48,674/- |
2013-14 |
| Sales Tax (Surat) |
Deputy Commissioner |
1,96,560/- |
2012-13 |
| Customs (Ahmedabad) |
CESTAT(Appeals) |
52,78,214/- |
2012-13 |
| Sales Tax (Surat) |
Assistant Commissioner |
25,674/- |
2015-16 |
| Sales Tax (Surat) |
Assistant Commissioner |
2,43,37,910/- |
2014-15 |
(VIII) Repayment of Due to Financial Institutions and Banks:
We confirm that, the company has not delayed in repayment of dues to Financial
Institutions, Banks or debenture holders during the year while the bank accounts of the
company.
(IX) The Company did not raise any money by way of initial public offer or further
public offer (including debt instruments) and any term loans from banks. Accordingly,
paragraph 3(ix) of the order is not applicable.
(X) According to the information and explanations given to us, no material fraud by
the Company or on by its officers or employees has not been noticed or reported during the
year.
(XI) According to the information and explanations given to us and based on our
examination of the records of the Company, the Company has provided for managerial
remuneration. His remuneration has been approved by shareholders under the provisions of
Section 197 read with Schedule V to the Companies Act is not applicable. (XII) In
our opinion and according to the information and explanations given to us, the Company is
not a Nidhi Company. Accordingly, paragraph 3(xii) of the order is not applicable.
(XIII) According to the information and explanations given to us and based on our
examination of the records of the Company, the transactions with the related parties are
in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and the
details of such transactions have been disclosed in the Financial Statements as required
by the applicable accounting standards.
(XIV) According to the information and explanations given to us and based on our
examination of the records of the Company, the Company has not made any preferential
allotment or private placement of shares or fully or partly convertible debentures during
the year.
(XV) According to the information and explanations given to us and based on our
examination of the records of the Company, the Company has not entered into any non-cash
transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of
the order not applicable.
(XVI) The Company is not required to be registered under section 45-IA of the
Reserve Bank of India Act, 1934.
For A John Moris & Co. Chartered Accountants, FRN: 007220S
Sd/-
CA J SEBASTIAN Partner M No: 218962 Place: Chennai Date: 29.05.2023
UDIN: 23218962BGWEVR2322
ANNEXURE - B TO THE AUDITORS REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of
Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of HEMANG
RESOURCES LIMITED ("the Company") as of 31 March 2023 in conjunction with our
audit of the standalone financial statements of the Company for the year ended on
that date.
Managements Responsibility for Internal Financial Controls
The Companys 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 companys 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 Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in
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, both 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 auditors 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 Companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys 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 companys 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 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
companys 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 31st March 2023,
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 A John Moris & Co. Chartered Accountants, FRN: 007220S
Sd/-
CA J SEBASTIAN Partner M No: 218962 Place: Chennai Date: 29.05.2023
UDIN: 23218962BGWEVR2322
+91-9892691696
