We have audited the accompanying financial statements of Haryana
Texprints (Overseas) Limited ("the Company"), which comprise the
Balance Sheet as at 31 March, 2015, the Statement of Profit and Loss,
the Cash Flow Statement for the year then ended and a summary of the
significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's 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 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 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.
Auditor's 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
thereunder.
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 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 financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's 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.
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, of the state of affairs of the Company as
at 31 March, 2015 and its profit and its cash flows for the year ended
on that date
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order, 2015 ("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
statement on the matters specified in paragraphs 3 and 4 of the Order,
to the extent applicable.
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 the 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 dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid financial statements comply with the
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, 2015 and taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
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 - Refer Note 1.24 to the
financial statements.
ii. The Company does not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. There are no amounts, required to be transferred, to the Investor
Education and Protection Fund by the Company.
ANNEXURE REFERRED TO IN OUR REPORT OF EVEN DATE
(i) a. The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b. The company has a regular program of physical verification of its
fixed assets. A major portion of the fixed assets has been physically
verified by the management during the year pursuant to a program for
physical verification of fixed assets, which in our opinion, is
reasonable having regard to the size of the Company and the nature of
its assets. According to the information and explanations given to us,
no material discrepancies were noticed on such verification.
(ii) a. The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
b. 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 is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material and the same have been properly
dealt within the books of account.
(iii) According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured to companies,
firms or other parties covered in the register maintained under Section
189 of the Companies Act, 2013.
(iv) In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the Company and the nature of its business
with regard to purchases of inventory, fixed assets and with regard to
the sale of goods and services. During the course of our audit, we have
neither observed nor have been informed of any continuing failure to
correct major weaknesses in internal control system in respect of these
areas.
(v) According to the information and explanations given to us, the
Company has not accepted any deposit from the public within the meaning
of provisions of section 73 to 76 or any other relevant provisions of
the Companies Act, 2013 and the rules framed there under.
(vi) According to the information and explanations given to us, the
maintenance of cost records have not been prescribed.
(vii) a. According to the information and explanations given to us, the
Company is generally regular in depositing with the appropriate
authorities undisputed statutory dues including provident fund,
employees' state insurance, income-tax, sales-tax, wealth tax, service
tax, duty of customs, duty of excise, value added tax, cess and any
other statutory dues applicable to it and there are no undisputed
amounts payable in respect of these dues which have remained outstanding
as at March 31,2015 for a period of more than six months from the date
they became payable.
b. According to the records of the Company, there are no statutory dues
related to income-tax, sales-tax, wealth tax, service tax, duty of
customs, duty of excise, value added tax, cess outstanding which has
not been deposited on account of any dispute except as under:
S. No. Name of Statute Nature of Dues
1 Haryana Local Area Devel- Entry Tax
opment Tax Act, 2000. A.Y 2000-01
2 Textile Committee Textile Cess
Upto Dec. 2000
3 Haryana VAT Act, 2003 & VAT & SALES TAX
CST Act, 1956 A.Y 2003-04 & 2004-05 &
2006-07
Forum where dispute is pending Amount
(Rs. Lacs)
Excise Commissioner, Faridabad 21.46
Mumbai High Court 4.06
Jt. Commissioner (Excise & Taxation),
Faridabad and Sales Tax Tribunal at 44.36
Chandigarh
c. According to the information and explanation given to us, there are
no amounts required to be transferred to
investor education and protection fund in accordance with the relevant
provisions of Companies Act, 1956 and rules made there under.
viii. The Company does not have any accumulated losses at the end of
the financial year. The Company has not incurred cash losses in the
financial year covered by our audit and in the immediately preceding
financial year.
ix. In our opinion 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 a financial institution or bank. The Company
has not issued any debentures.
x. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
xi. In our opinion, and according to the information and explanations
given to us, term loans have been applied for the purpose for which
they were raised.
xii. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
has been noticed or reported during the course of our audit.
For Doogar & Associates
Chartered Accountants
Firm's Reg. No. 000561N
M. S. Agarwal
Place of Signature: Faridabad Partner
Date: 29th May, 2015 M. No. 86580
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