To the Members of
Hariyana Ship Breakers Limited
Report on the audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of Hariyana Ship Breakers Limited, ("the Company") which comprises the Balance Sheet as at March 31, 2025, the Statement of Profit and Loss (including Other Comprehensive Income), statement of changes in equity and statement of cash flow for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred as "the Standalone Financial Statements").
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements except Ind-AS 109 Financial Instruments regarding providing expected credit loss on Unsecured Loans & Advances which is considered good & recoverable and the effect for the possible effects of matter described in the basis for qualified opinion 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 accounting principles generally accepted in India including Indian Accounting Standards(Ind AS) specified in section 133 of the Companies Act, 2013, of the state of affairs of the Company as at March 31, 2025, and total comprehensive income (comprising of profit and other comprehensive income), changes in equity and its cash flows for the year ended on that date.
Basis for Qualified Opinion
1. The Non-Current Loans and advances classified as Financial Assets: The company has given advances of Rs. 1319.00 Lakhs in earlier years which have been classified under Non-current Loans and advances classified as Financial Assets. The company had given the said amount with the objective of establishing a joint venture. As of the date of this report, the company has not commenced any joint venture activities nor has it recovered the said amount. The company has considered these outstanding Loans and Advances as good for recovery at the value at which they have been stated in the standalone financial statements. In our opinion, the necessary provision for Loans and advances should have been made by the company. The above advances have been carried at the same amounts as at March 31, 2025 as no transactions have taken place during the period of our review. The balance confirmation of above loans and advances have not been received by the management and hence Non-provision of such doubtful advance of Rs. 1319.00 Lacs. The non - compliance of Ind AS 109 has resulted in an overstatement of profit and an overstatement of the outstanding balance of Non- Current loans and advance and shareholders fund by Rs. 1319.00 Lacs. Our conclusion stands qualified in respect of possible impact of the above advance on the audited financial statements.
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 Auditors Responsibilities for the Audit of the Standalone 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 standalone 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.
Emphasis of Matters
1. We draw attention to the users of Standalone financial statement, that the company has accepted advance of Rs. 1.21 crores from one private limited company in the financial year 2017-18 for starting a joint venture. Till date, the company has not been able to start any joint venture as intended nor has the company paid back the advanced amount. (Refer to Note No. 3.19 to Financial Statements for Loans received.)
2. We draw attention to users of Standalone financial statements, the company has availed overdraft facility from Punjab National Bank of Rs. 25.00 crores. The company has utilized part of the said OD for repayment of unsecured loans. The outstanding balance of overdraft facility as on 31.03.2025 was Rs.11.87 Crore. In the absence of specific linking of utilization, we are unable to comment on the purpose for which the said loan was taken and utilized.
3. We draw attention to the users of Standalone financial statements, that the Company is partner in five partnership firm having main object of real estate development. The company has also invested in its subsidiary firm having main object of dealing in oxygen gases. The capital contribution of the company as at the year ended on March 31, 2025 is Rs.137.64 Crores which constitutes 82.91% of the total assets of the company. Further, we draw attention to the fact that one of the partnership firms, in which the Company has contributed Rs.127.25 crores, has deployed Rs.121.01 Crores out of such contributions towards granting loans to body corporates and partnership firms. Given the materiality of these assets in context of the standalone financial statement and the nature of their deployment, the recoverability of such advances may have significant impact on the financial position of the Company.
Our opinion is not modified in respect of above matters.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Standalone Financial Statements of the current period. These matters were addressed in the context of our audit of the Standalone 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.
Key Audit Matter |
Auditors Response |
1. Evaluation of uncertain tax positions |
Principal Audit Procedures: |
The Company has material uncertain tax positions including matters under dispute which involves significant judgment to determine the possible outcome of these disputes. |
Obtained details of completed tax assessments and demands till the year ended March 31, 2025 from management. |
Obtained understanding of key uncertain tax positions. |
|
Discussed with appropriate senior management and evaluated managements underlying key assumptions in estimating the tax provisions. |
|
Assessed managements estimates of the possible outcome of the disputed cases. |
|
Assessed relevant disclosures made within the financial statements to address whether they appropriately reflect the face and circumstances of each disputed case and requirement of relevant accounting standard for disclosure and reporting. |
Information Other than the Standalone Financial Statements and Auditors Report Thereon
The Companys management and Board of Directors is responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the Standalone Financial Statements and our auditors report thereon.
Our opinion on the Standalone 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 Standalone Financial Statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Standalone Financial Statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated. 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 that fact. We have nothing to report in this regard.
Responsibility of Management and those charged with governance for the Standalone Financial Statements
The Companys Board of Directors is responsible for the matters stated in section 134(5) of 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, changes in equity 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. 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 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 Ind AS financial statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the Standalone Financial Statements, management is responsible for assessing the Companys ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the companys financial reporting process.
Auditors Responsibility for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors 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 Standalone Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the Standalone 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 financial controls 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 with reference to Standalone 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 managements 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 Companys ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosures in the Standalone 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 auditors 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 Standalone Financial Statements, including the disclosures, and whether the Standalone Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, 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 Standalone Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditors 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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors 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 the paragraph 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, based on our audit we report that:
i. 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.
ii. 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;
iii. The standalone balance sheet, the standalone statement of profit and loss (including other comprehensive income), the standalone statement of changes in equity and the standalone cash flow statement dealt with by this Report are in agreement with the books of account; iv. In our opinion, the aforesaid Standalone Financial Statements comply with the Accounting Standards specified under Section 133 of the Act.
v. On the basis of the written representations received from the directors of the Company as on March 31, 2025 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2025 from being appointed as a director in terms of Section 164 (2) of the Act;
vi. 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" to this report; and
vii. With respect to the 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:
the Company has disclosed impact of pending litigations which could materially impact its financial statements - Refer Note 5.10 of the Standalone Financial Statements;
the Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses;
There have been no amounts which were required to be transferred, to the Investor Education and Protection Fund by the Company.
Management Representation:
1. The Management of the Company has represented to us that to the best of its knowledge and belief, no funds (which are material either individually or in the 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, 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.
2. The management of the Company has represented, that, to the best of its knowledge and belief no funds (which are material either individually or in the 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.
3. Based on audit procedures which we 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) of Rule 11(e) Companies
(Audit and Auditors) Rules, 2014 (as amended) and provided in clauses (a) and (b) above contain any material misstatement.
4. The company has not declared or paid any dividend during the year.
As per the explanation given to us by the management, the Company has used accounting software for maintaining its books of account for the period ended March 31, 2025 which has a feature of recording audit trail (edit log) facility however, the company has not provided audit trail records for the entire period ended on March 31, 2025. In the absence of audit trail records, we are unable to comment whether audit trail feature of the said software was enabled and operated throughout the period for all relevant transactions in the software or whether there were any instances of the audit trail feature been tampered with. Since the company has not provided audit trail records we are unable to comment on whether audit trail has been preserved by the company as per statutory requirement of record retention or not.
viii. In our opinion and according to the information and explanations given to us, the remuneration paid by the Company to its directors during the current year is in accordance with the provisions of Section 197 of the Act. The remuneration paid to any director is not in excess of the limit laid down under Section 197 of the Act.
Annexure A to the Independent Auditors Report
The Annexure referred to in our Independent Auditors Report to the members of the Company on the financial statements for the year ended 31st March 2025, we report that:
i. (a) (A) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of Property, Plant and Equipment, capital work-in-progress and Investment Properties.
(B) The Company is maintaining proper records showing full particulars of intangible assets.
(b) As explained to us, the management in accordance with a phased programme of verification adopted by the company has physically verified the property, plant & equipment, capital work-in-progress and investment properties. To the best of our knowledge and according to the information and explanation given to us, no material discrepancies have been noticed on such verification or have been reported to us.
(c) According to information and explanations given by the management, the title deeds of immovable properties, as disclosed in Note 3.1 Property, plant and equipment, and Note 3.3 Investment Property are held in the name of the Company, except in case of following property :
Description of property Godown at Kalamboli |
Gross carrying value (INR in Lakhs) 29.72 |
Held in name of Shantisarup Reniwal |
Whether promoter, director of their employee Promoter |
Period held - indicate range, where appropriate Since 1998 |
Reason for not being held in name of company* It is informed that application for transfer of property is in under process with CIDCO. |
Flat at 41, Persepolis, 100, Cuffe Parade, GD Somani Road, Mumbai- 400005 |
247.91 | Joint name of Rajeev Reniwal and Sanjeev Reniwal | Promoter | Since 1982 | It is informed that company is in the process of taking legal advice on this matter. |
(d) The Company has not revalued its Property, Plant and Equipment, Investment Property or intangible assets during the year. Accordingly, the reporting under Clause 3(i)(d) of the Order is not applicable to the Company.
(e) Based on the information and explanations furnished to us, no proceedings have been initiated on or are pending against the Company for holding benami property under the Prohibition of Benami Property Transactions Act, 1988 (as amended in 2016) (formerly the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)) and Rules made thereunder.
ii. (a) The physical verification of inventory has been conducted at reasonable intervals by the Management during the year and, in our opinion, the coverage and procedures of such verification by Management is appropriate. However, as regards stock of raw materials, the company is mainly engaged in ship breaking activities and old and used ships are its main raw materials. Ascertaining actual weight of ship at the time of purchase and thereafter; is not possible due to its nature and size, loss of weight on account of corrosion and other factors during the usage of the ship and its voyage for long period of the years. Inventory of raw materials at the close of the year is ascertained by reducing the weight of the scrap sold together with the estimated wastage of the material. The discrepancies noticed on physical verification of inventory as compared to book records were not 10% or more in aggregate for each class of inventory.
(b) According to the information and explanations given to us, the company has been sanctioned working capital limits in excess of Rs. 5 Crores, in aggregate from banks on the basis of security of its current assets. According to the information and explanations given to us, the quarterly returns or statements filed by the Company with such banks in materiality are in agreement with the unaudited books of account of the company for the first three quarters and audited books of accounts for the last quarter.
iii. (a) The Company has invested in six partnership firms and the company has provided corporate guarantee on behalf of company in which director are substantially interested. The aggregate amount during the year, and balance outstanding at the balance sheet date with respect to such loans and guarantees to parties are as per the table given below:
Particulars |
Related Parties | Others Amount |
Amount (INR in Lakhs) (INR in Crores) | (INR in Lakhs) | |
Investment made during the year in other partnership firms |
||
- Capital introduced during the year |
34.54 | NIL |
- Capital withdrawn during the year |
4.07 | NIL |
Investment made during the year in associate partnership firms |
||
- Capital introduced during the year |
NIL | NIL |
- Capital withdrawn during the year |
349.78 | NIL |
Balance outstanding in Investments (net of credit balances) as at March 31, 2025 |
||
- Subsidiary |
17.77 | NIL |
- Associates |
13,370.26 | NIL |
- Other partnership firm |
374.07 | NIL |
Corporate Guarantee |
||
- Hariyana Ship Demolition Private Limited |
12,500.00 | NIL |
- Hariyana International Private Limited |
4,500.00 | NIL |
(b) In respect of above said Investments and Guarantees, the terms and conditions of investment and guarantees prima facie are not prejudicial to the companys interest, based on the information and explanation provided by the management of Company.
(c) According to information and explanations given to us, the company has not granted any loans or advances in the nature of loans, either repayable on demand or without specifying any terms of period of repayment to companies, firms, limited liability partnership or any other parties. Accordingly, the reporting under Clause 3(iii)(f) of the Order is not applicable to the Company. iv. In our opinion, and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of the loans and investments made, and guarantees and security provided by it, as applicable.
v. The Company has not accepted any deposits or amounts which are deemed to be deposits within the meaning of Sections 73, 74, 75 and 76 of the Act and the Rules framed there under to the extent notified.
vi. Pursuant to the rules made by the Central Government of India, the Company is required to maintain cost records as specified under Section 148(1) of the Act in respect of its products. We have broadly reviewed the same and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained by the company. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.
vii. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing undisputed statutory dues in respect of provident fund, employees state insurance, income taxes, goods and services tax, labour welfare fund, duty of customs, cess and other material statutory dues, as applicable, with the appropriate authorities. There have been no undisputed statutory dues outstanding for more than 6 months as at 31st March, 2025.
(b) According to the information and explanations given to us and the records of the Company examined by us, the particulars of statutory dues referred to in sub- clause (a) as at March 31, 2025 which have not been deposited on account of any dispute, are as follows:
Name of the statue |
Nature of dues | Demand raised (INR in Lakhs) | Amount paid against demand raised (INR in Lakhs)* | Period to which amount relates (FY) | Forum where the dispute is pending |
Income Tax Act, 1961 |
Income Tax | 139.72 | 20.92 | 2011-12 | Appeal before NFAC |
Income Tax Act, 1961 |
Income Tax | 98.54 | 0.00 | 2013-14 | Appeal before NFAC |
Income Tax Act, 1961 |
Income Tax | 85.52 | 0.00 | 2016-17 | Appeal before NFAC |
Income Tax Act, 1961 |
Income Tax | 831.45 | 0.00 | 2017-18 | Appeal before NFAC |
Navi Mumbai Municipal Corporation |
Property Tax | 10.78 | 0.00 | 2022 to 2025 | Assistant Commissioner, Navi Mumbai Municipal Corporation |
* In absence of specific details about demands paid or adjusted they have been taken as NIL.
viii. According to the information and explanations given to us and so far as appears from our examination of books of account and other records as applicable and produced before us by the Company, there were no transactions relating to previously unrecorded income that were surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 (43 of 1961) during the year.
ix. (a) According to the records of the Company examined by us and the information and explanations given to us, the Company has not defaulted in repayment of loans or other borrowings or in the payment of interest to any lender during the year.
(b) According to the information and explanations given to us and on the basis of our audit procedures, we report that the Company has not been declared Willful Defaulter by any bank or financial institution or government or any government authority.
(c) The company has not raised any new term loan during the year and hence reporting as per clause 3(ix)(c) of the Order is not applicable to the Company.
(d) According to the information and explanations given to us, and the procedures performed by us, and on an overall examination of the financial statements of the Company, we report that the funds raised on short term basis have not been utilized for long term purposes.
(e) According to the information and explanations given to us and on an overall examination of the financial statements of the Company, we report that the company has not raised any money from any person or entity for the account of or to pay the obligations of its associates, subsidiaries or joint ventures.
(f) According to the information and explanations given to us and on an overall examination of the financial statements of the Company, we report that the company has not raised any loans during the year by pledging securities held in their subsidiaries, joint ventures or associate companies.
x. (a) In our opinion, and according to the information and explanations given to us, the Company has not raised any money by way of initial public offer and through debt instruments by way of further public offer during the year.
(b) The Company has not made any preferential allotment or private placement of shares or fully or partially or optionally convertible debentures during the year. Accordingly, the reporting under Clause 3(x)(b) of the Order is not applicable to the Company.
xi. (a) During the course of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company, noticed or reported during the year, nor have we been informed of any such case by the Management.
(b) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, a report under Section 143(12) of the Act, in Form ADT-4, as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 was not required to be filed with the Central Government. Accordingly, the reporting under Clause 3(xi)(b) of the Order is not applicable to the Company.
(c) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, the Company has not received any whistle-blower complaints during the year.
xii. As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it, the reporting under Clause 3(xii) of the Order is not applicable to the Company.
xiii. The Company has entered into transactions with related parties in compliance with the provisions of Sections 177 and 188 of the Act. The details of such related party transactions have been disclosed in the financial statements as required under Indian Accounting Standard 24 "Related Party Disclosures" specified under Section 133 of the Act.
xiv. (a) In our opinion and according to the information and explanation given to us, the company has an internal audit system commensurate with the size and nature of its business.
(b) We have held discussions with the internal auditors of the company for the year under audit and considered their opinion in determining the nature, timing and extent of our audit procedure.
xv. In our opinion and according to the information and explanations given to us, the Company has not entered into any non-cash transactions with its directors or persons connected with him. Accordingly, the reporting on compliance with the provisions of Section 192 of the Act under Clause 3(xv) of the Order is not applicable to the Company.
xvi. (a) In our opinion, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the reporting under Clause 3(xvi)(a) of the Order is not applicable to the Company.
(b) The Company has not conducted non-banking financial / housing finance activities during the year. Accordingly, the reporting under Clause 3(xvi)(b) of the Order is not applicable to the Company.
(c) The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India. Accordingly, the reporting under Clause 3(xvi)(c) of the Order is not applicable to the Company.
(d) In our opinion, there is no core investment company within the Group (as defined in the regulations made by the Reserve Bank of India). Accordingly reporting under clause 3(xvi)(d) of the Order is not applicable to the Company.
xvii. The Company has neither incurred any cash loss in the current financial year nor in the immediately preceding financial year.
xviii. According to the information and explanations given to us, pursuant to completion of two terms of five consecutive years of appointment as auditor, there has been change in one of the joint Statutory Auditors during the Financial Year and we have considered the issues, objections or concerns raised by the outgoing auditors.
xix. According to the information and explanations given to us and on the basis of the financial ratios (also refer Note 5.14 to the financial statements), ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying the financial statements, our knowledge of the Board of Directors and management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report that the Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the Company as and when they fall due. xx. As at balance sheet date, the Company does not have any amount remaining unspent under Section 135(5) of the Act. Accordingly, reporting under clause 3(xx)(a) and (b) of the Order is not applicable.
xxi. The reporting under Clause 3(xxi) of the Order is not applicable in respect of audit of standalone financial statements.
Annexure B to the Independent 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 with reference to financial statements of Hariyana Ship Breakers Limited (the Company) as of March 31, 2025 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 Board of Directors of the company are 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. 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 the 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 Act.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial controls with reference to financial statements 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") issued by the Institute of Chartered Accountant of India and the Standards on Auditing as specified 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. 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 with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of internal financial controls with reference to financial statements, 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 internal financial controls system with reference to financial statements.
Meaning of Internal Financial Controls with reference to financial statements
A companys internal financial control with reference to financial statements 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 with reference to financial statements 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 with reference to financial statements
Because of the inherent limitations of internal financial controls with reference to financial statements, 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 with reference to financial statements to future periods are subject to the risk that the internal financial control with reference to financial statements 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 and to the best of our information and according to the information and explanations given to us, the company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting (Subject to Para No. iii of Annexure A to our Audit Report relating to investments made referred to in Section 189 and further as reported in Basis for Qualified Opinion , Emphasis of Matter and Other Matters of our report relating to Loans & Advances given, Loans & Advances taken and Investment made in the partnership firms) were commensurate with the nature of the business of the company and operating effectively as at March 31, 2025, 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 LLB & Co. |
For S.N. Shah & Associates |
Chartered Accountants |
Chartered Accountants |
FRN : 117758W |
FRN : 109782W |
CA Lalit Bajaj |
CA Dhruvin Joshi |
Partner |
Partner |
M. No. 104234 |
M. No. 612290 |
UDIN: 25104234BMKXJS2985 |
UDIN: 25612290BMITXU6778 | |
Place: Mumbai |
Place: Ahmedabad |
|
Date: May 30, 2025 |
Date: May 30, 2025 |
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248, DP SEBI Reg. No. IN-DP-185-2016, BSE Enlistment Number (RA): 5016
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)
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