We have audited the accompanying financial statements of Hindustan
Appliances Limited (the Company), 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.
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.
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,
1. In respect of its fixed assets:
Based on our scrutiny of the company's books of accounts and other
records and according to the information and explanations received by
us from the management, we are of the opinion that the question of
commenting on maintenance of proper records of fixed assets, physical
verification of fixed assets and any substantial sale thereof does not
arise since the company had no fixed assets at the end of the financial
year nor at any time during the financial year ended on that date.
2. In respect of its inventories:
a) As the company does not engaged in the business of manufacturing,
marketing and processing of any goods and articles, the provisions of
Clause (ii) of paragraph 4 of the CARO is not applicable.
3. In respect of its loans, secured or unsecured, granted or taken by
the Company to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956:
In respect loans taken from persons covered U/s.301 of the companies
Act:
According to the information and explanations given to us, the company
has not taken any secured or unsecured loans from companies, firms or
other parties covered in the register maintained under section 301 of
the Companies Act, 1956
In respect loans granted to the persons covered U/s.301 of the
companies Act:
According to the information and explanations given to us, the company
has not granted any secured or unsecured loans to companies, firms or
other parties covered in the register maintained under section 301 of
the Companies Act, 1956
4. Having regard to the nature of the company's business and based on
our scrutiny of the company's records and the information and
explanation received by us, we report that the company's activities do
not include purchase of inventory and sale of goods. In our opinion and
according to the information and explanation received by us, there are
adequate internal control procedure commensurate with the size of the
Company and nature of its business with regards to purchase of fixed
assets. During the course of audit, we have not observed any continuing
failure to correct major weaknesses in internal control system with
regard to purchase of fixed assets.
5. In respect of transaction covered under 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
arrangement that needed to be entered in to 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 there was no any transactions was made in pursuance of
contract or arrangement 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 a
prices which appears reasonable as per information available with the
company.
6. Based on scrutiny of the company's records and according to the
information and explanation provided by the management, in our opinion,
the Company has not accepted any loan or deposit which are deposits
within the meaning of Rule2(b) of the Company's (Acceptance of Deposit)
Rules,1975 from the public. Therefore, the provisions of Clause (vi) of
paragraph 4 of the CARO 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. According to the information and explanation provided by the
management, the company is not engaged in production, processing,
manufacturing or mining activities. Hence, the provisions of section
209 (1) (d) of the Companies Act, 1956 do not apply to the company.
Hence, in our opinion no comment on maintenance of cost records under
section 209(1)(d) is required.
9. In respect of statutory dues:
a) According to the records provided to us, the Company is generally
regular in depositing with appropriate authority undisputed statutory
dues including amount of Provident fund, Investor education and
protection fund, Employee's state insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other
Material statutory dues, applicable to it.
According to the Information and Explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st March, 2014 for a period of more than six months
from the date of becoming able.
b) According to the records of the company and information and
explanations given to us, there are no dues of Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess which have not
been deposited on account of any dispute.
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. According to the records of the company, the company has not
borrowed from financial institutions or banks or issued debenture till
the end of the financial year. Hence, in our opinion, the question of
reporting of default in repayment of dues to financial institutions or
bank or debenture does not arise.
12. In our opinion and according to the information and explanations
given to us, 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, and to the best of our information and according
to the explanation provided by the management, we are of the opinion
that the company is neither a Chit Fund nor a Nidhi/Mutual benefit
society. Hence, in our opinion, the requirements of Para 4(xiii) of the
CARO do not apply to the company.
14. According to the Information and explanation given to us the
company is not dealing or Trading in Shares, Securities and Debentures.
Investments in respect of all shares, debentures and other investments
have been held by the company in its own name and have also maintained
adequate and proper records.
15. According to the records of the company and the Information and
Explanation provided by the management, the company has not given any
guarantee for loans taken by others from any banks or financial
institution.
16. The Company has not obtained any term loan during the year. There
was no terms loan outstanding at the beginning of the year.
17. According to the Information and Explanations given to us and over
all examination of balance sheet of the Company, we report that no fund
raised on short term basis have been used for long term investment by
the company.
18. According to the records of the company and the information and
explanation provided by the management, 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. During the year the Company has not issued any debenture and also
there is no any outstanding during the year hence the question of
creating security or charge in respect of debenture does not arise.
20. During the year the Company has not raised any money by way of
public issue.
21. During the course of examination of the books and records of the
company carried out in accordance with generally accepted auditing
practices in India and according to the information and explanation
given to us, we have neither come across any instance of fraud on or by
the company, noticed or reported during the year nor have been informed
of such cases by the Management.
For A.C.MODI & ASSOCIATES
Chartered Accountants
Firm's registrations number : 116555W
ALPESG C.MODI
Proprietor
Membership number : 101342 |