You are here » Home » Companies » Company Overview » Harita Seating Systems Ltd

Harita Seating Systems Ltd.

BSE: 590043 Sector: Auto
NSE: HARITASEAT ISIN Code: INE939D01015
BSE LIVE 12:19 | 20 Nov 940.30 23.60
(2.57%)
OPEN

916.75

HIGH

970.00

LOW

916.75

NSE 12:02 | 20 Nov 936.10 17.30
(1.88%)
OPEN

937.00

HIGH

949.90

LOW

907.00

OPEN 916.75
PREVIOUS CLOSE 916.70
VOLUME 731
52-Week high 1054.00
52-Week low 560.20
P/E 27.44
Mkt Cap.(Rs cr) 731
Buy Price 940.30
Buy Qty 4.00
Sell Price 944.65
Sell Qty 5.00
OPEN 916.75
CLOSE 916.70
VOLUME 731
52-Week high 1054.00
52-Week low 560.20
P/E 27.44
Mkt Cap.(Rs cr) 731
Buy Price 940.30
Buy Qty 4.00
Sell Price 944.65
Sell Qty 5.00

Harita Seating Systems Ltd. (HARITASEAT) - Auditors Report

Company auditors report

for the year ended 31st March 2017

To the Members of Harita Seating Systems Limited

29 Haddows Road Chennai.

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Harita SeatingSystems Limited Chennai - 600006 ("the company") which comprise the BalanceSheet as at 31st March 2017 the Statement of Profit and Loss the Cash FlowStatement for the year then ended and a summary of the significant accounting policies andother explanatory information.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified 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 inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide an unqualified audit opinion on the standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India; a) of the state of affairs of theCompany as at 31st March 2017; b) its Profit for the year ended on that date;and c) its 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 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure-1 a statement on the matters specified in the paragraphs3 and 4 of the Order.

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 bestof 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 theCompany so far as it appears from our examination of those books.

c. The Balance Sheet the Statement of Profit and Loss and Cash Flow Statement dealtwith by this Report are in agreement with the books of account. d. In our opinion theaforesaid standalone financial statements comply with the Accounting Standards specifiedunder 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 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in termsof Section 164(2) of the Act.

f. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure-2".

g. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 financialposition in its financial statements - Refer note no.XXIV(2) to the financial statements.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There is no amount required to be transferred to the Investor Education andProtection Fund by the Company during the year.

iv. The company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 08thNovember 2016 to 30th December 2016. Based on audit procedures and relying onthe management representation we report that the disclosures are in accordance with booksof account maintained by the company and as produced to us by the management - Refer noteno. XXIV(10)

For Sundaram & Srinivasan

Chartered Accountants

Firm Regn. No.: 004207S

M PADMANABHAN
Place : Chennai

Partner

Date : 18th May 2017

Membership No.: F13291

Annexure-1 referred to in our report under "Report on Other Legal and RegulatoryRequirements Para 1" of even date on the accounts for the year ended 31stMarch 2017.

1. (a) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;

(b) Fixed assets are verified physically by the management in accordance with a regularprogramme at reasonable intervals. Discrepancies noticed on such verification have beenproperly dealt with in the books of account.

(c) The title deeds of immovable properties of the company are held in the name of thecompany

2. The inventory has been physically verified at reasonable intervals during the yearby the management. It was represented to us that inventory with third party is alsoverified from time to time. The discrepancies between the physical stocks and the bookswere not material and have been properly dealt with in the books of account.

3. During the year the company has not granted any loan to a company firm LimitedLiability Partnerships or other parties covered in the register maintained under Section189 of the Act.

4. During the year the company has not granted any loan nor has furnished anyguarantee nor provided any security. Hence reporting on whether there is compliance withprovisions of Section 185 and 186 of the Act does not arise.

5. The company has not accepted any deposit within the meaning of sections 73 to 76 ofthe Act during the year.

6. In our opinion and according to the information and explanations given to us therequirements for maintenance of cost records pursuant to Section (1) of Section 148 of theAct read with Rules made by the Central Government is not applicable to the company forthe year under audit.

7. (a) According to the records provided to us the company is generally regular indepositing undisputed statutory dues including Provident Fund Employees' State InsuranceIncome Tax Sales Tax Service Tax Duty of Customs Duty of Excise Value Added Tax Cessand other statutory dues to the appropriate authorities.

However we have observed a few instances of belated remittance of Service Tax.

(b) According to the information and explanations given to us no undisputed amountspayable in respect of Income Tax Sales Tax Service Tax Customs Duty Excise Duty ValueAdded Tax and Cess were in arrears as at 31st March 2017 for a period of morethan six months from the date they became payable.

(c) According to information and explanations given to us the following are thedetails of the disputed dues that were not deposited with the concerned authorities:

Name of the Statute Nature of dues Amount (Rs. in Lakhs) Forum where dispute is pending
Central Excise Act 1944. Excise Duty 12.96 Commissioner (Appeals) Chennai III Commissionerate
50.84 Customs Excise and Service Tax Appellate Tribunal Mumbai
Income Tax Act 1961 Income Tax 56.79 Commissioner of Income Tax (Appeals) Chennai
Tamil Nadu Value Added Tax Act 2006 Value Added Tax 295.16 The Honourable Supreme Court of India
127.35 The Assistant Commissioner Commercial Tax Office Hosur

8. Based on our verification and according to the information and explanations given bythe management the company has not defaulted in repayment of dues to its banks. Thecompany has not borrowed from any financial institution and Government nor has issued anydebenture.

9. (a) The company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year. Hence reporting on utilizationof such money does not arise.

(b) The company has not availed any term loan during the year. The term loan availed inearlier year were applied for the purpose for which they were availed.

10. Based on the audit procedures adopted and information and explanations given to usby the management no fraud on or by the company has been noticed or reported during thecourse of our audit.

11. The managerial remuneration has been paid in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the Act.

12. The Company is not a Nidhi company and as such this clause of the Order is notapplicable.

13. (a) In our opinion and according to the information and explanations given to usall transactions with the related parties are in compliance with sections 177 and 188 ofthe Act.

(b) The details of transactions during the year have been disclosed in the FinancialStatements as required by the applicable accounting standards. Refer note no. -XXIV(12) tothe financial statements.

14. During the year the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures under Section 42 of the Act.

15. In our opinion and according to the information and explanations given to us thecompany has not entered into any non-cash transactions with directors or persons connectedwith.

16. The company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

For Sundaram & Srinivasan

Chartered Accountants

Firm Regn. No.: 004207S

M PADMANABHAN
Place : Chennai

Partner

Date : 18th May 2017

Membership No.: F13291

Annexure-2 to Independent Auditor's Report for the year ended 31st March2017.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of ("theCompany") as of March 31 2017 in conjunction with our audit of the standalonefinancial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under Section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects. Our auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that;

I. pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

II. provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

III. provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on;

i. existing policies and procedures adopted by the Company for ensuring orderly andefficient conduct of business;

ii. continuous adherence to Company's policies;

iii. existing procedures in relation to safeguarding of Company's fixed assetsinvestments inventories receivables loans and advances made and cash and bank balances;

iv. existing system to prevent and detect fraud and errors;

v. accuracy and completeness of Company's accounting records; and

vi. existing capacity to prepare timely and reliable financial information.

For Sundaram & Srinivasan

Chartered Accountants

Firm Regn. No.: 004207S

M PADMANABHAN
Place : Chennai

Partner

Date : 18th May 2017

Membership No.: F13291