| We have audited the accompanying financial statements of HINDUSTAN
HARDY SPICER LIMITED, which comprise the Balance Sheet as at March
31,2015, and 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 referred to in section 133 of
the Companies Act, 2013 ("the Act").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 judgement, 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. 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 said 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 Profit and Loss Account, 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 (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (1.1) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(11)oftheAct,wereportthat:
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, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
section 133 of the CompaniesAct,2013.
e) on the basis of written representations received from the directors
as on March 31, 2015, and 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 sub-section (2) of section 164 of
the Companies Act, 2013.
Annexure referred to in Para 1 of our report on Report on Other Legal
and Regulatory Requirements:
1. The nature of Company's activities during the year has been such
that following clauses of paragraph 3 of the Companies (Auditors'
Report) Order, 2015 are not applicable to the Company: Clauses (iii),
(v),(viii), (x), (xii).
2. a) The company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) As explained to us, all the assets have not been physically verified
by the management during the year but there is a regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the company and the nature of its assets. No material
discrepancies were noticed on such verification.
3. a) As per the information furnished, the inventory has 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, 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 is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
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
purchase of inventory and fixed assets and for the sale of goods.
During the course of our audit, we have not observed any continuing
failure to correct major weaknesses in internal control system.
5. We have broadly reviewed the books of account and records
maintained by the Company relating to the manufacture of automotive
parts and accessories, pursuant to the rules by the Central Government
for the maintenance of cost records u/s 148(1) of the Companies Act,
2013 and are of the opinion that prima facie the prescribed accounts
and records have been made and maintained. We have, however, not made a
detailed examination of the records with a view to determining whether
they are accurate or complete. To the best of our knowledge and
according to the information and explanations given to us, the Central
Government has not prescribed the maintenance of cost records u/s 148(1
)of the Companies Act,2013 for any other products of the Company.
6. a) The company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund, investor
education protection fund, employees' state insurance, income tax, value
added tax, wealth tax, custom duty, service tax, excise duty, cess and
other material statutory dues applicable to it. According to the
information and explanations give to us, no undisputed amounts payable
in respect of provident fund, investor education protection fund,
employees' state insurance, income tax, value added tax, wealth tax,
custom duty, service tax, excise duty, cess and other material statutory
dues applicable to were in arrears, as at 31st March 2015, fora period
of more than six months from the date they became payable.
b) According to the information and explanation given to us, there are
no dues of sale tax, customs duty, wealth tax, excise duty and cess
which have not been deposited on account of any dispute, in case of
income tax, demand out standing for the following years are disputed
before the higher authorities and hence not deposited. The details of
which are as under:-
Nature of Amount Period for which Forum where the
the dues (Rs Lakhs) the amount relates dispute is pending
(Assessment Years)
Income Tax 20.64 lacs 2005-06 Income Tax Appellate
Tribunal
Income Tax 43.81 lacs 2010-11 Commissioner of
Income Tax (Appeals)
Total 64.45 lacs
c) The company has transferred the required amount within time to
investor education fund and protection fund in accordance with the
relevant provisions of Companies Act,1956(1 of 1956) and rules made
thereunder.
7. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution or bank In our opinion, the term loans have been
applied for the purpose for which they were raised.
8. In our opinion, the term loans have been applied for the purpose
for which they were raised.
For J.L.BHATT& COMPANY
Chartered Accountants
Firm Reg. No: 101332W
YOGESH J. BHATT
Partner
Membership No. 30170
Mumbai, 5th May 2015
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