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Hariyana Ship Breakers Ltd.

BSE: 526931 Sector: Others
NSE: N.A. ISIN Code: INE400G01011
BSE LIVE 15:55 | 11 Dec 106.35 4.90
(4.83%)
OPEN

103.10

HIGH

108.90

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103.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 103.10
PREVIOUS CLOSE 101.45
VOLUME 9155
52-Week high 117.45
52-Week low 62.75
P/E 6.74
Mkt Cap.(Rs cr) 66
Buy Price 0.00
Buy Qty 0.00
Sell Price 106.00
Sell Qty 40.00
OPEN 103.10
CLOSE 101.45
VOLUME 9155
52-Week high 117.45
52-Week low 62.75
P/E 6.74
Mkt Cap.(Rs cr) 66
Buy Price 0.00
Buy Qty 0.00
Sell Price 106.00
Sell Qty 40.00

Hariyana Ship Breakers Ltd. (HARIYANASHIP) - Auditors Report

Company auditors report

INDEPENDENT AUDITOR’S REPORT

To

The Members

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 31stMarch 2016 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.

Auditor’s Responsibility

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 ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company’s Directors aswell as evaluating the overall presentation of the financial statements. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the financial statements.

Opinion

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 2016 and its profit and its cash flows for the year ended onthat date except for non provision for gratuity and long term employee benefits as per AS– 15 the amount of which could not be ascertained in the absence of actuarialvaluation.

Other Matter

We have not audited the financial statements of Mumbai Division (HO) and Bangalore(Steel & Power Unit) whose financial statements reflect total assets of Rs. 11263.99Lakhs and Rs. 1108.49 Lakhs and as at March 31 2016 total revenue of Rs. 2522.30 Lakhsand Rs. 23.36 Lakhs 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 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure A statement on the matters specified inthe paragraph 3 and 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.

NNUAL EPORT

f. 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.

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 2.33 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.

For P. D. Goplani & Associates

Chartered Accountants

FRN: 118023W

Sd/-

CA. Sonam Langalia

Partner

M. No. 154014

Place : Bhavnagar

Date : May 19 2016

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 2016 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 properties which are not in the nameof the company. We were given to understand except main land on which company hasconstructed factory building is registered in favor of the company however all other areagriculture lands situated at Near Shantigrama Hassan can not be registered in the nameof the company; and therefore registered power of attorney is entered into in favor ofMr. H. Veerappa and consideration has been paid to the land owners directly.

ii) The inventory has been physically verified during the year by the management. Inour opinion the frequency of verification is reasonable and no material discrepancieswere 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 thecompany has complied with the provisions of section 185 and 186 of the Companies Act2013.

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 Related period Nature Amount Rs.
dispute is pending)
Hon. ITAT Mumbai AY: 2007-08 Income Tax 396780
Hon. ITAT Mumbai AY: 2009-10 Income Tax 188120
Hon. CIT Central Circle – 54 Mumbai AY: 2010-11 Income Tax 200550
Hon. ACIT Central Circle - 7 Mumbai AY: 2011-12 Income Tax 358140
Hon. CIT (A) - 8 Mumbai AY: 2012-13 Income Tax 3030960
Hon. CIT (A) - 8 Mumbai AY: 2013-14 Income Tax 6029800

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 tern 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.

xiii) According to the information and explanations given by the managementtransactions with the related parties are in compliance with section 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the notes tothe 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

Chartered Accountants

FRN: 118023W

Sd/-

CA. Sonam Langalia

Partner

M. No. 154014

Place : Bhavnagar

Dare : May 19 2016

Annexure 1 to the Auditor’s Report (CARO 2016)

Details of Para 3(i) (c) : Immovable Properties

Sr. Particulars Gross Block Value Net Block Value Remarks
1 Agricultural Land Survey 651300 651300 Held in the name of
No. 10/2 10/1 Kanchanhalli Mr. H. Veerappa as
Village Shantigrama Hobli Company cannot
Hassan Taluk purchase agriculture
land; and a
registered power of
attorney is entered
in his favour.
2 Agricultural Land Survey 607960 607960 Held in the name of
No. 13/19/19/49/5 Mr. H. Veerappa as
Kanchanhalli Village Company cannot
Shantigrama Hobli purchase agriculture
Hassan Taluk land; and a
registered power of
attorney is entered
in his favour.
3 Agricultural Land Survey 609636 609636 Held in the name of
No. 10/7 Kanchanhalli Mr. H. Veerappa as
Village Shantigrama Company cannot
Hobli Hassan Taluk purchase agriculture
land; and a
registered power of
attorney is entered
in his favour.
4 Agricultural Land Survey 199054 199054 Held in the name of
No. 9/2 9/3 Kanchanhalli Mr. H. Veerappa as
Village Shantigrama Company cannot
Hobli Hassan Taluk purchase agriculture
land; and a
registered power of
attorney is entered
in his favour.
5 Agricultural Land Survey 146805 146805 Held in the name of
No. 8/2 Kanchanhalli Mr. H. Veerappa as
Village Shantigrama Company cannot
Hobli Hassan Taluk purchase agriculture
land; and a
registered power of
attorney is entered
in his favour.
6 Agricultural Land Survey 71874 71874 Held in the name of
No. 9/6 Kanchanhalli Mr. H. Veerappa as
Village Shantigrama Company cannot
Hobli Hassan Taluk purchase agriculture
land; and a
registered power of
attorney is entered
in his favour.
7 Agricultural Land Survey 1050000 1050000 Held in the name of
No. 16/p-1 Kanchanhalli Mr. H. Veerappa as
Village Shantigrama Company cannot
Hobli Hassan Taluk purchase agriculture
land; and a
registered power of
attorney is entered
in his favour.
8 Agricultural Land Survey 619002 619002 Held in the name of
No. 8/3 10/8 Kanchanhalli Mr. H. Veerappa as
Village Shantigrama Company cannot
Hobli Hassan Taluk purchase agriculture
land; and a
registered power of
attorney is entered
in his favour.
9 Agricultural LandSurvey 97980 97980 Held in the name of
No. 10/6 Kanchanhalli Mr. H. Veerappa as
Village Shantigrama Company cannot
Hobli Hassan Taluk purchase agriculture
land; and a
registered power of
attorney is entered
in his favour.
10 Agricultural LandSurvey 239618 239618 Held in the name of
No. 10/3 Kanchanhalli Mr. H. Veerappa as
Village Shantigrama Company cannot
Hobli Hassan Taluk purchase agriculture
land; and a
registered power of
attorney is entered
in his favour.
11 Agricultural LandSurvey 651330 651330 Held in the name of
No. 10/4 11/1a 10/5 Mr. H. Veerappa as
Kanchanhalli Village Company cannot
Shantigrama Hobli purchase agriculture
Hassan Taluk land; and a
registered power of
attorney is entered
in his favour.
12 Godown1929 Iron & 4817420 2972224 Held in the name of
Steel Market Yard director of the
Kalamboli Dist: Raigad company.

Annexure B to the Auditor’s Report

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 HariyanaShip Breakers Limited ("the Company") as of March 31 2016 in conjunction withour audit of the financial statements of the company for the year ended on that date. [inwhich are incorporated the Returns for the year ended on that date audited by the branchauditors of the Company’s branches at Mumbai HO and Bangalore].

Management’s Responsibility for Internal Financial Controls

The Company’s Management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the Company’s policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditor’s 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 as specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively 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 judgment 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 internal financial controls system overfinancial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 and according to the best of information and explanations provided tous the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2016 based on the internal controlover financial reporting considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India.

Other Matters

Our aforesaid reports under Section 143(3)(i) of the Act on the adequacy and operatingeffectiveness of the internal financial controls over financial reporting insofar as itrelates to Mumbai Branch and Bangalore are based on the corresponding reports of theauditors of such branches.

For P. D. Goplani & Associates

Chartered Accountants

FRN: 118023W

Sd/-

CA. Sonam Langalia

Partner

M. No. 154014

Bhavnagar

May 19 2016