To the Members of Himalya International Limited
Report on the Financial Statements
We have audited the accompanying standalone Ind AS financial statements of HimalyaInternational Limited ("the Company) which comprise the balance sheet as at 31 March2017 the statement of profit and loss and the cash flow statement for the year then endedand a summary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the matters stated in Section 134(5) of the CompaniesAct2013 ("the Act") with respect to the preparation of these Ind AS financialstatements that give a true and fair view of the financial position financial performanceand cash flows of the Company in accordance with the Accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) referred to insection 133 of the Act read with rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting record in accordance withthe provision of the Act for safeguarding the assets of the Company and for preventing anddetecting fraud and other irregularities selection and application of appropriateaccounting policies making judgements and estimates that are reasonable and prudent anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the account recordsrelevant to the preparation and presentation of the standalone Ind AS financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.
Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit. We conducted our audit in accordance with the Standards onAuditing specified under Section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe standalone Ind AS financial statements in order to design audit procedures that areappropriate in the circumstances but not for the purpose of expressing an opinion on theeffectiveness of the entity's internal control. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by management as well as evaluating the overall presentation of thestandalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion. Opinion
In our opinion and to the best of our information and according to the explanationsgiven to us the standalone Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India:
(i) in the case of the balance sheet of the state of affairs of the Company as at 31March 2017;
(ii) in the case of the statement of profit and loss of the loss for the year ended onthat date; and
(iii) in the case of the cash flow statement of the cash flows for the year ended onthat date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order2016 ("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 theparagraph 3 & 4 of the order to the extent applicable.
a. We have obtained all the information and explanations which to the best of ourknowledge 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 appears from our examination of those books;
c. The balance sheet statement of profit and loss and cash flow statement dealt withby this Report are in agreement with the books of account;
d. In our opinion the aforesaid standalone Ind AS Financial statements comply with theAccounting Standards referred to in 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 31 March2017 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31 March 2017 from being appointed as a director in terms of Section 164(2) of theAct.
f. We are enclosing herewith a report in "Annexure B" for our opinion onadequacy of internal financial controls system in place in the company and the operatingeffectiveness of such controls;
g. With respect to the other matters to be included in the Auditors Report inAccordance with Rule 11 of the Companies (Audit and Auditors)Rules2014 in our opinion andto the best of our information and according to the explanations given to us:
(1) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements as referred to in Note 27.04 to the financialstatements.
(2) The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any and as required on long-termcontracts including derivative contracts.
(3) There were no amounts which required to be transferred by the Company to theInvestor Education and Protection Fund.
(4) The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016. Based on audit procedures and relying on the managementRepresentation we report that the disclosures are in accordance with books ofaccountsmaintained by the Company and as produced to us by the Management Refer Note27.21.
For Anujeet Dandona & Co.
Firm Registration No.006118C
(Referred to under 'Report on Other Legal and Regulatory Requirements' of our Report ofeven date)
Report on Companies (Auditor's Report) Order2016 ('the Order') issued by the centralGovernment in terms of Section 143(11) of the companies Act 2013 ('the Act') of HimalyaInternational Limited ('the Company')
I. a.) The company has generally maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.
b.) According to information and explanation given to us there is a regular programmeof physical verification of these fixed assets by the management which in our opinion isreasonable having regard to size of the company and nature of its assets. As informed tous no material discrepancies were noticed on such verification.
c.) As informed to us and as verified by us during the course of our audit the titledeeds on immovable properties are held in name of company as at the balance sheet date.
ii. As informed to us the inventories were physical verified during the year by themanagement at reasonable intervals and no material discrepancies were noticed on physicalverification.
iii. As informed to us the company has granted unsecured loans to companies covered inthe register maintained under section 189 of the Companies Act 2013. In respect of suchloans:
| || || ||(Rs '000') |
|Name of the company ||Nature of loan ||Balance as on 31.03.2017 ||Maximum Amount Due |
|APJ Laboratories Ltd. ||Advance against purchase ||56562 ||56562 |
a. ) As informed to us and as verified by us the terms and condition of grant to suchloans are not prejudicial to the interest of the company.
b. ) Repayment of the principle amount and payment of interest on such loans has notbeen stipulated as it is in the nature of "Advance against purchases"
c. ) Not Applicable
iv. According to the information and explanation given to us the company has compliedwith the provision of section 185 and 186 of the Companies Act 2013 in respect of grantof loans making investments and providing guarantees and securities as applicable duringthe year.
v. The company has not accepted any deposits during the year and does not have anyunclaimed deposits as at March 31 2017 and therefore the provisions of clause 3(v) ofthe Order are not applicable to the Company.
vi. Reporting under clause 3(vi) of the order is not applicable as the company'sbusiness activities are not covered by the companies (Cost Record and Audits) Rules 2014.
vii. a.) According to records of the company and information and explanation given tous the company has generally been regular in depositing undisputed statutory duesincluding provident fund employees' state insurance income-tax sales- tax service-taxduty of customs duty of excise value added tax cess and any other statutory dues withthe appropriate authorities.
According to information and explanation given to us there are no outstanding statutorydues as referred above as at the last day of the financial year under audit for a periodof more than six months from the date they become payable. b.) As certified by themanagement on which we have relied upon the dues of income tax or sale tax or service taxor duty of custom or duty of excise or value added tax or cess which have not beendeposited on account of dispute and the forum where the dispute is pending are givenbellow:
|Particulars of dues ||Amount Rs. 'ootr ||Financial Year to which amount relates ||Forum where dispute is pending |
|Excise Duty ||378 ||1999-2000 ||Tribunal |
|Income Tax Demand ||152853 ||2012-13 ||CIT (Appeals) |
viii. Based on our audit procedure and in accordance with the information andexplanation given to us by the company has not defaulted in repayment of dues to banks.The company does not have any loans or borrows from financial institutions or governmentand has not issued any debentures.
ix. The company has not raised any money during the year by way of initial public offeror further public offer (including debts instrument) or term loans and hence reportingunder clause 3(ix) of the Order is not applicable.
x. According to the information and explanation given to us there has been no fraudnoticed or reported during the year by the company or on the company by its officers oremployees.
xi. In our opinion the managerial remuneration paid/provided during the year is inaccordance with requisite approvals mandated by the provisions of section 197 read withSchedule V of Companies Act 2013.
xii. The company is not a nidhi company and hence reporting under clause 3(xii) of theOrder is not applicable.
xiii. According to the information and explanation given to us the Company is incompliance with Section 177 and 188 of the Act where applicable for all transactionswith the related parties and details of related party transactions have been disclosed inthe financial statements as required by the applicable accounting standards.
xiv. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review.
xv. As informed to us during the year the company has not entered into any non-cashtransactions with any of its directors or persons connected with the directors.
xvi. The Company is not required to get registered under section 45-IA of Reserve Bankof India Act 1934.
xvii. The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016. Based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with books of accountmaintained by the Company and as produced to us by the Management - Refer Note [27.21].
For Anujeet Dandona & Co.
Firm Registration No.006118C