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Harita Seating Systems Ltd.

BSE: 590043 Sector: Auto
NSE: HARITASEAT ISIN Code: INE939D01015
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OPEN 770.25
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VOLUME 733
52-Week high 876.00
52-Week low 492.05
P/E 22.82
Mkt Cap.(Rs cr) 586
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 770.25
CLOSE 0.00
VOLUME 733
52-Week high 876.00
52-Week low 492.05
P/E 22.82
Mkt Cap.(Rs cr) 586
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Harita Seating Systems Ltd. (HARITASEAT) - Auditors Report

Company auditors report

For the year ended 31st March 2016

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 theBalance Sheet as at 31st March 2016 the Statement of Profit and Loss theCash Flow Statement for the year then ended and a summary of the significant accountingpolicies and other 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 accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions 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 the appropriateness of the accounting policies usedand the reasonableness of the accounting estimates made by the Company's Directors aswell as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our 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 the Company as at 31st March 2016;

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.

2. 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 the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

d. In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e. On the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 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 financialstatements.

ii. The Company did not have any long-term contracts including derivative contracts andhence question of making provision for material foreseeable losses does not arise.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For Sundaram & Srinivasan
Chartered Accountants
Firm Regn. No.: 004207S
M BALASUBRAMANIYAM
Place : Chennai Partner
Date : 20th May 2016 Membership No.: F7945

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 2016.

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. No material discrepancies were noticed on suchverification.

(c) The title deeds of immovable properties of the Company are held in the name of theCompany.

2. The inventory (including inventories with third parties) has been physicallyverified at reasonable intervals during the year by the management. The discrepanciesbetween the physical stocks and the books were not material and have been properly dealtwith in the books of account.

3. During the year the Company has not granted any loan to a Company firm limitedliability partnership or other parties covered in the register maintained under Section189 of the Companies Act 2013.

4. During the year the Company has not granted any loan nor has furnished anyguarantees nor provided any security. Hence reporting on compliance with provisions ofsection 185 and 186 of the Companies Act 2013 does not arise.

5. The Company has not accepted any deposit within the meaning of Sections 73 to 76 ofthe Companies Act 2013 during the year.

6. In our opinion and according to the information and explanations given to us therequirement for maintenance of cost records pursuant to sub-section (1) of section 148 ofthe Companies Act 2013 read with rules made by the Central Government is not applicableto the Company for the 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 delay in remittance of Service Tax and aninstance of delay each in remitting Duty of Excise Dividend Distribution Tax and IncomeTax deduction into the Government. The provisions of Employees' State Insurance Act 1948are not applicable to the unit at Pune. In respect of unit at Dharwad the employees drawremuneration above the limits prescribed.

(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 2016 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 11.97 Commissioner (Appeals) Chennai III Commissionerate
50.84 Customs Excise and Service Tax Appellate Tribunal Mumbai
Finance Act 1994 Service Tax 310.64 The Assistant and Additional Commissioner Chennai III Commissionerate
Income Tax Act 1961 Income Tax 126.40 Commissioner of Income Tax (Appeals) Chennai
Tamil Nadu Value Added Tax Act 2006 Value Added Tax 288.92 The Honourable Supreme Court of India
104.41 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 fresh term loan during the year. The loans availedin earlier 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. In our opinion and according to the information and explanations given to usmanagerial remuneration has been paid and provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.

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 Companies Act 2013.

(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 (AS-18)to the 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 theCompanies Act 2013.

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 them.

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 BALASUBRAMANIYAM
Place : Chennai Partner
Date : 20th May 2016 Membership No.: F7945

Annexure - 2 to Independent Auditors' Report to the Members of Harita Seating SystemsLimited Chennai for the year ended 31st March 2016

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 HARITASEATING SYSTEMS LIMITED CHENNAI ("the Company") as of March 31 2016 inconjunction with our audit of the standalone financial statements of the Company for theyear 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 (ICAI).These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information 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 audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; II. provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorisations ofmanagement and directors of the Company; and III. provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of theCompany's assets that could have a material 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 2016 based on; i.existing policies and procedures adopted by the Company for ensuring orderly and efficientconduct of business; ii. continuous adherence to Company's policies; iii. existingprocedures in relation to safeguarding of Company's fixed assets investmentsinventories receivables loans and advances made and cash and bank balances; iv. existingsystem to prevent and detect fraud and errors; v. accuracy and completeness of Company'saccounting records; and vi. existing capacity to prepare timely and reliable financialinformation.

For Sundaram & Srinivasan
Chartered Accountants
Firm Regn. No.: 004207S
M BALASUBRAMANIYAM
Place : Chennai Partner
Date : 20th May 2016 Membership No.: F7945