| 1. We have audited the attached Balance Sheet of Harsh Polymers (India)
LTD. as at March 31,2014 and also the Statement of Profit and Loss and
also the'Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards required that we plan
and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and the significant estimates
made by the management, as well as evaluating the overall financial
tatements presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies, (Auditor's Report) Order, 2003 issued
by the Central Government in terms of section 227 (4A) of the Companies
Act, 1956, we annex hereto as statement on the matters specified in
paragraph 4 and 5 of the said Order.
4. Further to our comments in the annexure referred to in paragraph 3
above, 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 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 appears from our examination of those
books;
c) The Balance Sheet and the Statement of Profit and Loss dealt with by
this report are in agreement with the books of account;
d) In our opinion the Balance Sheet and the Statement of Profit and
Loss dealt with by this report comply with the Accounting Standards
referred to in sub-section (3C) of section 211 of the Companies Act,
1956;
e) On the basis of written representations received from the Directors,
as on March 31, 2014 and taken on record by the Board of Directors, we
report that none of the Directors is disqualified as on March 31, 2014
from being appointed a director in terms of clause (g) of sub- section
(1) of section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, the Accounts read with significant
Accounting Policies and Notes to Accounts, give the information as
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014.
(ii) In the case of the statement of Profit and Loss, of the profit of
the Company for the year ended on that date.
(iii) In the case of Cash Flow Statement, of the Cash Flows for ihe
year ended on that date.
ANNEXURE TO THE AUDITOR'S REPORT
Referred to in paragraph one of our Report of even date on the accounts
of Harsh Polymers (India) Ltd. For the year ended 315t March, 2014.
As required by the Companies (Auditor's Report) Order, 2003 and
according to information and explanations given to us during
the course of the audit and on the basis of such checks we considered
appropriate, we report that:
1. The Company has maintained proper records showing full particulars
including quantitative details and the situation of fixed assets. These
assets have been physically verified by the management periodically at
reasonable intervals, which in our opinion is reasonable having regard
to the size of the company and the nature of its business. No material
discrepancies were noticed on such verification.
2. All Fixed Assets have been sold during the year.
3. There is no Stock of Finished goods, spare parts, raw and packing
material etc, at the year end.
4. The Procedures followed by management for Physical Verification of
Stocks are reasonable and adequate in relation to size of the company
and nature of its business.
5. According to the information given, no discrepancies are noticed on
physical verification of Stocks as compared to the books records.
6. In our opinion the procedure for valuation of stocks is fair and
proper in accordance with the normally accepted accounting principles.
However there is no stock at the year end.
7. The Company has taken loan from a Company Covered in the Register
maintained under section 301 of the Companies Act, 1956. The Maximum
amount involved during the year was Rs.62.44 Lac and Loan from Director
of an amount Rs. 12.55 Lac. All such loan taken by the company has been
repaid during the year. In our opinion and according to the information
and explanations given to us the terms and condition on which loan has
been taken are not, prime facie, prejudicial to the interest of the
company.
8. The Company has not granted any loans to companies, firm or other
parties listed in the register maintained under section 301 of the
companies Act, 1956.
9. The company maintains records for issue, and consumption of Stores,
raw materials including components; However there is need for strict
control procedures commensurate with the size of the company and nature
of its business so as to ensure proper control.
10. In our opinion and according to the information and explanations
given to us, the transaction of purchase of goods and materials and
sale of goods, material and services made in pursuance of contract or
arrangement entered in the register maintained under section 301 of the
Companies Act, 1956, and aggregating during the year to Rs. 50000 or
more in respect of each party have been made at price which are
reasonable having regard to the prevailing market price for such goods,
materials and service or the prices at which transaction for similar
goods, materials or services have been made with other parties.
11. The Company has maintained proper records regarding unserviceable
stores & raw materials. There being no major discrepancies, so no
provision has been made in the accounts.
12. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits during the year
from the public, during the periods covered by our audit reports, to
which the provisions of section 58A and 58 AA of the Companies Act,
1956, and the rule made there under would apply.
13. In our opinion reasonable records have been maintained for the sale
and disposals of scraps. The Company has no by- products.
14. According to the information and explanation given to us, the
central government has not prescribed for maintenance of cost records
under section 209(1) (d) of Companies Act, 1956 for any products
manufactured by the company.
15. The Company has accumulated losses to the tune of Rs. 498.04 lac.
The Company has incurred cash losses during the financial year covered
by our audit and also the immediately preceding financial year.
16. According to information and explanation given to us, no Undisputed
amounts payable in respects of Income-Tax, Sales- Tax, Wealth-Tax,
Custom-Duty and Excise-Duty were outstanding as at March31,2014 for a
periods more than six months from the date they become payable.
17. In our opinion, the Company is not a Chit Fund/ Mutual benefit
fund/ Society. Therefore the provision of clause 4(xiii) of the
Companies (Auditor Report) Order, 2003 are not applicable to the
company.
18. In our opinion and according to information and explanation given
to us, the Company is not dealing in or trading in Shares, Securities,
Debentures and other Investments. Accordingly, the provision of clause
4(xiv) of the Companies (Auditor Report) Order, 2003 are not applicable
to the company.
19. On the basis of the Examination of the books of accounts carried
out by us in accordance with generally accepted auditing practice and
according to the information and explanations given to us, no Personal
Expenses of employees/ Directors been charged to the profit and loss
account, other than those payable under contractual obligation or
accepted business practice.
20. In our opinion and according to information and explanation given
to us, and on an overall examination of the balance sheet of the
company, we report that no funds on short term basis have been used for
Long Term Investment and vice-versa.
21. According to the Information and explanation given to us, the
Company has not made any preferential Allotment of Share to Parties and
Companies covered in the register maintained under Section 301 of the
Companies Act, 1956.
22. In our opinion and according to information and explanation given
to us, the Company has not issued any Secured Debentures during the
period covered by our report. Accordingly, the Provisions of clause
4(xix) of the Companies (Auditor Report) Order, 2003 are not applicable
to the company.
23. During the period covered by our Audit report, the Company has not
raised any money by Public Issue.
For, Nikunj H. Shah & Co.
Chartered Accountants
Nikunj H. Shah
Proprietor
Place : Ahmedabad Membership No. 131415
Date : 30/05/2014 FRN: 131307W | 