HARIYANA SHIP- BREAKERS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of HARIYANA SHIP BREAKERSLIMITED (the Company') which comprise the balance sheet as at 31st March2017 the statement of profit and loss and the cash flow statement and a summary ofsignificant accounting policies and other explanatory information for the year then ended[in which are incorporated the Returns for the year ended on that date audited by thebranch auditors of the Company's branches at Mumbai HO and Bangalore].
Management's Responsibility for the 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 preparationand presentation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting 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 recordsin accordance with the provisions of the Act for safeguarding 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.
Our responsibility is to express an opinion on these financial statements based on ouraudit. 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 there under. We conducted our audit in accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.
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 but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion on the financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid consolidated 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 of the state of affairs of the Companyas at 31st March 2017 and its profit and its cash flows for the year ended onthat date except for non provision for gratuity and long term employee benefits asper AS 15 the amount of which could not be ascertained in the absence ofactuarial valuation.
We have not audited the financial statements of Mumbai Division (HO) and Bangalore(Steel & Power Unit) whose financial statements reflect total assets of Rs. 11877.12Lacs and Rs. 373.91 Lacs and as at March 31 2017 total revenue of Rs. 19392.35 Lacs andRs. 94.01 Lacs respectively whose financial statements have been audited by otherauditors whose reports have been furnished to us by the Management and our opinion isbased solely on the reports of the other auditors. Our opinion is not qualified in respectof this matter.
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 A statement on the matters specified in the paragraph 3and 4 of the Order to the extent applicable.
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 reports on the accounts of the branch offices of the company audited undersection 143(8) of the Act by branch auditors have been sent to us and have been properlydealt with by us in preparing this report.
d. 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.
e. In our opinion and except for the effects of our qualified opinion the aforesaidfinancial statements comply with the Accounting Standards specified under Section 133 ofthe Act read with Rule 7 of the Companies (Accounts) Rules 2014.
f. 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.
g. 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 B'; and
h. 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 impact of pending litigations on its financial position inits financial statements - Refer Note 2.29 of the financial statements.
ii. The Company did not any long term contracts including derivative contracts forwhich there were any material foreseeable losses. and
iii. There has been no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
iv. the Company has provided requisite disclosures in its financial statements as todealings in Specified Bank Notes during the period from 8 November 2016 to 30 December2016 and these are in accordance with the books of accounts maintained by the Company - ReferNote 2.28 to the financial statements.
For P. D. Goplani & Associates
CA. Sonam Langalia
M. No. 154014
May 30 2017
Annexure A to the Independent Auditors' Report
The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the financial statements for the year ended 31st March 2017 wereport that:
i) a) The Company has maintained proper records showing the full particulars includingthe quantitative details and situation of its fixed assets.
b) All the assets have not been physically verified by the management during the yearbut as per the information and explanations provided to us there is a regular programmeof physical verification which in our opinion is reasonable having regard to the size ofthe Company and the nature of its assets. No material discrepancies were noticed on suchverification.
c) According to information and explanations given by the management the title deedsof immovable properties included under tangible fixed assets are held in the name of theCompany except as detailed in Annexure 1
The company holds certain lands near Shantigrama Hassan. We were given to understandexcept main land on which company has constructed factory building is registered in favorof the company however all other are agriculture lands situated at Near ShantigramaHassan cannot be registered in the name of the company; and therefore the properties areregistered in the name of Mr. H. Veerappa and subsequently a general power of attorney isentered by Mr. H. Veerappa in favor of the company. Details of such agricultural land areenclosed to this report.
ii) The inventory has been physically verified during the year by the management.
In our opinion the frequency of verification is reasonable and no materialdiscrepancies were noticed on such physical verification.
iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013. Accordingly the provisions of clause 3(iii)(a) (b) and (c) of theOrder are not applicable to the Company and hence not commented upon.
iv) In our opinion and according to the information and explanations given to us inrespect of loans investments guarantees and security the provisions of section 185 and186 of the Companies Act 2013 have been complied with.
v) According to the information and explanations given to us the company has notinvited any deposits as per the provisions of section 73 to 76 or any other relevantprovisions of companies act and the rules framed there under.
vi) We have broadly reviewed the books of account maintained by the Company pursuant tothe rules made by the Central Government for the maintenance of cost records under section148(1) of the Companies Act 2013 and are of the opinion that prima facie the specifiedaccounts and records have been made and maintained. We have not however made a detailedexamination of the same.
vii) a) In our opinion and according to the information and explanations given to us the Company is regular in depositing with appropriate authorities undisputed statutorydues including provident fund income-tax sales-tax service tax duty of customs dutyof excise value added tax cess and other material statutory dues applicable to it and nosuch undisputed amounts were in arrears for a period of more than six months from the datethey became payable.
b) According to the records of the Company the dues outstanding of income-taxsales-tax wealth-tax service tax duty of customs duty of excise value added tax andcess on account of any dispute are as follows:
|Name of the authority (where the dispute is pending) ||Related period ||Nature ||Amount Rs. |
|Hon. ITAT Mumbai ||AY: 2007-08 ||Income Tax ||396780 |
|Hon. ACIT Mumbai ||AY: 2009-10 ||Income Tax ||188120 |
|Hon. CIT Central Circle 54 Mumbai ||AY: 2010-11 ||Income Tax ||200550 |
|Hon. DCIT Central Circle 3(1)(2) Mumbai ||AY: 2011-12 ||Income Tax ||358140 |
|Hon. DCIT Central Circle 3(1)(2) Mumbai ||AY: 2012-13 ||Income Tax ||3030960 |
|Hon. CIT (A) - 8 Mumbai ||AY: 2013-14 ||Income Tax ||6029800 |
|Hon. CIT (A) - 8 Mumbai ||AY: 2014-15 ||Income Tax ||9853510 |
viii) In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of loans or borrowings to banks and financialinstitution. The Company has not taken any loan from government.
ix) In our opinion and according to the information and explanations given to us thecompany has not raised moneys by way of initial public offer or further public offer(including debt instruments) or term loan during the year under report.
x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and as per the information and explanations given bythe management we report that no fraud by the Company or material fraud on the Company byits officers or employees has been noticed or reported during the year.
xi) According to the information and explanations given by the management we reportthat the managerial remuneration has been paid / provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.
xii) In our opinion the Company is not a nidhi company. Therefore the provisions ofclause 3(xii) of the Order are not applicable to the Company and hence not commented upon.
NNUAL EPORT xiii) According to the information and explanations given by themanagement transactions with the related parties are in compliance with section 177 and188 of Companies Act 2013 where applicable and the details have been disclosed in thenotes to the financial statements as required by the applicable accounting standards.
xiv) According to the information and explanations given by the management and based onthe examinations of the records of the company the company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year under review.
xv) In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsdirectors or persons connected with him and hence provisions of section 192 of the Act arenot applicable.
xvi) According to the information and explanations given to us the provisions ofsection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company.
For P. D. Goplani & Associates
CA. Sonam Langalia
M. No. 154014
May 30 2017