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Hemang Resources Ltd.

BSE: 531178 Sector: Others
NSE: N.A. ISIN Code: INE930A01010
BSE LIVE 14:27 | 22 Sep 7.52 -0.38
(-4.81%)
OPEN

8.25

HIGH

8.25

LOW

7.52

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 8.25
PREVIOUS CLOSE 7.90
VOLUME 2000
52-Week high 13.35
52-Week low 7.21
P/E
Mkt Cap.(Rs cr) 10
Buy Price 0.00
Buy Qty 0.00
Sell Price 8.19
Sell Qty 100.00
OPEN 8.25
CLOSE 7.90
VOLUME 2000
52-Week high 13.35
52-Week low 7.21
P/E
Mkt Cap.(Rs cr) 10
Buy Price 0.00
Buy Qty 0.00
Sell Price 8.19
Sell Qty 100.00

Hemang Resources Ltd. (HEMANGRESOURCES) - Auditors Report

Company auditors report

To

The Members of

Hemang Resources Limited

(Formally Known as Bhatia Industries and Infrastructure Limited)

Report on the Standalone Financial Statements

We have audited the accompanying (Standalone) financial statements of HEMANG RESOURCESLIMITED ("the Company") which comprise the Balance Sheet as at March 31 2016the Statement of Profit and Loss Cash Flow Statement for the year then ended and asummary of significant accounting policies 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 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 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 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 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 of the state of affairs of the Companyas at March 31 2016 and its Profit and its Cash Flow 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 ("theOrder") as amended issued by the Central Government of India in terms ofsub-section (11) of section 143 of the Act we give in the "Annexure A" astatement on the matters specified in paragraphs 3 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 purpose 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 written representations received from the directors as on March 312016 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2016 from being appointed as a director in terms of Section 164 (2) of theAct.

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 B".

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 : 2.7 (b) (c) (d)(e)(f)(g)(h) 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 were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For and on behalf of
Jain & Thakker
Chartered Accountants
Firm’s registration number: 014829S
Sd/-
Bharat Kumar Jain
Partner
Membership number: 206829
Place: Chennai
Date : 28 th May 2016

Annexure "A" to the Independent Auditors’ Report

Referred to in paragraph 1 under the heading ‘Report on Other Legal &Regulatory Requirement’ of our report of even date to the financial statements of theCompany for the year ended March 31 2016:

1) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets;

(b) The Fixed Assets have been physically verified by the management in a phasedmanner designed to cover all the items over a period of three years which in ouropinion is reasonable having regard to the size of the company and nature of itsbusiness. Pursuant to the program a portion of the fixed asset has been physicallyverified by the management during the year and no material discrepancies between the booksrecords and the physical fixed assets have been noticed.

(c) According to the information and explanations given to us and on the basis of ourexamination the title deeds of immovable properties are held in the name of the company.

2) (a) The management has conducted the physical verification of inventory atreasonable intervals.

b) The discrepancies noticed on physical verification of the inventory as compared tobooks records which has been properly dealt with in the books of account were notmaterial.

3) According to the Information and explanation given to us the company has notgranted any unsecured loans to parties covered under Section 189 of the Companies Act 2013and hence reporting under this clause does not arise.

4) 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 Act 2013In respect of loans investments guarantees and security.

5) The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable.

6) As informed to us the maintenance of Cost Records has not been specified by theCentral Government under sub-section (1) of Section 148 of the Act in respect of theactivities carried on by the company.

7) (a) According to information and explanations given to us and on the basis of ourexamination of the books of account and records the Company has been generally regularin depositing undisputed statutory dues including Provident Fund Employees StateInsurance Income-Tax Sales tax Service Tax Duty of Customs Duty of Excise Valueadded Tax Cess and any other statutory dues with the appropriate authorities. Accordingto the information and explanations given to us no undisputed amounts payable in respectof the above were in arrears as at March 31 2016 for a period of more than six monthsfrom the date on when they become payable.

b) According to the information and explanation given to us there are dues of incometax sales tax service tax duty of customs duty of excise value added tax outstandingon account of dispute which have not been deposited Details are mentioned below.

Statute Forum where Dispute is Pending Amount Involved Financial year to which the amount relates
Income tax Act CIT ( Appeals ) 110000/- 1995-96
Stamp Duty Act High Court 1062000/- 2004-2005
Commercial Tax (Surat ) Joint Commissioner 3667832/- 2006-07
Sales Tax (Maharashtra) Deputy Commissioner 38340/- 2007-08
Custom Duty Commissioner (Appeals ) 27754116/- 2012-2013
Maharashtra VAT Deputy Commissioner 5271446/- 2010-11
Custom Duty Commissioner Appeals (Morbi) 8191647/- 2013-2014
Custom Duty Commissioner of Customs – Mangalore 6361616/- 2014-2015

8) In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of dues to banks.

9) Based upon the audit procedures performed and the information and explanations givenby the management the has not raised moneys by way of initial public offer or furtherpublic offer including debt instruments and term Accordingly the provisions of clause 3(ix) of the Order are not applicable to the Company and hence not upon.

10) Based upon the audit procedures performed and the information and explanationsgiven by the management we that no fraud by the Company or on the company by its officersor employees has been noticed or reported during the

11) Based upon the audit procedures performed and the information and explanationsgiven by the management managerial remuneration has been paid or provided in accordancewith the requisite approvals mandated by provisions of Section 197 read with Schedule V tothe Companies Act.

12) In our opinion and according to information and explanations given to us theCompany is not a Nidhi Therefore the provisions of clause 4 (xii) of the Order are notapplicable to the Company.

13) In our opinion and according to information and explanations given to us by thecompany and based on our of records of the company all transactions with the relatedparties are in compliance with section 177 and 188 Companies Act 2013 and the detailshave been disclosed in the Financial Statements as required by the accounting standards.

14) Based upon the audit procedures performed and the information and explanationsgiven by the management the has not made any preferential allotment or private placementof shares or fully or partly convertible debentures during year under review. Accordinglythe provisions of clause 3 (xiv) of the Order are not applicable to the Company and notcommented upon.

15) Based upon the audit procedures performed and the information and explanationsgiven by the management the has not entered into any non-cash transactions with directorsor persons connected with him. Accordingly the of clause 3 (xv) of the Order are notapplicable to the Company and hence not commented upon.

16) In our opinion the company is not required to be registered under section 45 IA ofthe Reserve Bank of India Act 1934 accordingly the provisions of clause 3 (xvi) of theOrder are not applicable to the Company and hence not upon.

For and on behalf of
Jain & Thakker
Chartered Accountants
Firm’s registration number: 014829S
Sd/-
Bharat Kumar Jain
Partner
Membership number: 206829
Place: Chennai
th
Date : 28 May 2016

"Annexure B" to the Independent Auditor’s Report dated 28 th May 2016Issued to the member of Hemang Resources Limited

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 HemangResources Limited ("the Company") as of March 31 2016 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

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 responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company’s policies the safeguarding of its assetsthe prevention 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.

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 controlssystem over 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

(1) Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) 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

(3) 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 as at March 31 2016 based on "the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India"

For and on behalf of
Jain & Thakker
Chartered Accountants
Firm’s registration number: 014829S
Sd/-
Bharat Kumar Jain
Partner
Membership number: 206829
Place: Chennai
th
Date : 28 May 2016