Hira Automobile Ltd.
|BSE: 531743||Sector: Others|
|NSE: N.A.||ISIN Code: N.A.|
|BSE 05:30 | 01 Jan||Hira Automobile Ltd|
|NSE 05:30 | 01 Jan||Hira Automobile Ltd|
|BSE: 531743||Sector: Others|
|NSE: N.A.||ISIN Code: N.A.|
|BSE 05:30 | 01 Jan||Hira Automobile Ltd|
|NSE 05:30 | 01 Jan||Hira Automobile Ltd|
The Members of Hira Automobiles Ltd
1. REPORT ON THE FINANCIAL STATEMENTS:
We have audited the accompanying financial statements of Hira Automobiles LimitedBalance Sheet as at March 31 2017 the Profit and Loss Statement the Cash Flow Statementfor the year then ended and a summary of the significant accounting policies and otherexplanatory information annexed there to. These financial statements are theresponsibility of the management of the company. Our responsibility is to express anopinion on these financial statements based on our audit.
2. 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 preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards prescribedunder Section 133 of the Act. The Board of Directors of the company are responsible formaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and the design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error which have beenused for the purpose of preparation of the financial statements by the Board of Directorsof the as aforesaid.
3. AUDITORS' RESPONSIBILITY:
Our responsibility is to express an opinion on these financial statements based on ouraudit.
While conducting the audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit of financial statements 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 consolidated financial statements are free from materialmisstatement. An audit involves performing procedures to obtain audit evidence about theamounts and the disclosures in the financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe consolidated financial statements whether due to fraud or error. In making those riskassessments the 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. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Board of Directors as well as evaluatingthe overall presentation of the financial statements. We believe that the audit evidenceobtained by us and by the other auditors in terms of their reports referred to in theOther Matters paragraph below is sufficient and appropriate to provide a basis for ouraudit opinion on the consolidated financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us and based on the consideration of reports of other auditors the aforesaidfinancial statements give the information required by the Act in the manner so requiredand give a true and fair view in conformity with the accounting principles generallyaccepted in India of the state of affairs of the Company as at March 31 2017 and theirprofit and their cash flows for the year ended on that date.
5. REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS:
As required by Section 143(3) of the Act we report to the extent applicable 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 of the aforesaidfinancial statements.
b) In our opinion proper books of account as required by law relating to preparationof the aforesaid financial statements have been kept so far as it appears from ourexamination of those books and the reports of the other auditors.
c) The Balance Sheet the Profit and Loss Statement and the Cash Flow Statement dealtwith by this Report are in agreement with the relevant books of account maintained for thepurpose of preparation of the consolidated financial statements.
d) In our opinion the aforesaid financial statements comply with the AccountingStandards prescribed under Section 133 of the Act.
e) On the basis of the written representations received from the directors of theCompany as on March 31 2016 taken on record by the Board of Directors of the Companynone of the directors of these entities is disqualified as on March 31 2017 from beingappointed as a director in terms of 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 A".
g) As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give inAnnexure B a statement on the matters specified in paragraphs 3 and 4 of the Order.
Annexure "A" to the Independent Auditors' Report on the StandaloneFinancial Statements of Hira Automobiles Limited
(Referred to in paragraph 1 (f) under 'Report on Other Legal and RegulatoryRequirements' of our report of even date)
REPORT ON THE INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING UNDER CLAUSE (i) OFSUBSECTION 3 OF SECTION 143 OF THE COMPANIES ACT 2013 ("THE ACT")
We have audited the internal financial controls over financial reporting of hiraautomobiles LIMITED ("the Company") as of March 31 2017 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 Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India.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.
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 and the Standards on Auditing prescribed under Section 143(10) ofthe Companies Act 2013 to the extent applicable to an audit of internal financialcontrols. 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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting.
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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts and paymentsof the company are being made only in accordance with authorisation of management anddirectors of the company; and (3) provide reasonable assurance regarding prevention ortimely detection of unauthorised acquisition use or disposition of the company's assetsthat 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 to the best of our information and according to theexplanations given to us the Company has in
all material respects an adequate internal financial controls system over financialreporting and such internal financial controls over financial reporting were operatingeffectively as at March 31 2017 based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note.
Annexure B To Auditors' Report
Annexure referred to in paragraph 3 of our report of even date
1. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets at Corporate Office and in the processof maintaining at outlets. (b) We have been informed that the fixed assets of the companyhave been physically verified by the management at reasonable intervals and no materialdiscrepancies were noticed on such verification.
2. (a) As informed to us physical verification of inventory of the company has beenconducted by the management at reasonable intervals. (b) In our opinion and according tothe explanations given to us the procedures of Physical verification of inventoryfollowed by the management are reasonable and adequate in relation to the size of thecompany and the nature of its business.
(c) In our opinion and according to the explanations given to us the Company ismaintaining proper records of inventory. We have been informed that no materialdiscrepancies have been noticed on physical verification as compared to records.
3. (a) According to the information and explanation given to us the Company has notadvanced inter corporate deposits to any companies covered in the register maintainedunder section 189 of the Companies At2013.
4. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the Companies Act2013 in respect of grant of loans making investments and providing guarantees andsecurities.
5. According to the information and explanation given to us the Company has notaccepted deposits from public. Advances from customers for sale of vehicles and againstsale promotion schemes run by the Company to promote its sale are received and paid in theordinary course of business.
6. The maintenance of cost records under section 148(1) of the Companies Act 2013 hasnot been prescribed by the Central government for the Company since it is notmanufacturing Company.
7. (a) According to the information and explanations given to us the company isgenerally regular in depositing all statutory dues including provident fund investoreducation and protection fund employees state insurance income tax sales tax wealthtax custom duty excise duty cess and any other statutory due with appropriateauthority during the year.
(b) According to the information and explanations given to us there are no disputedamount payables in respect of provident fund investor education and protection fund employees state insurance income tax sales tax wealth tax custom duty excise dutycess by the Company.
(c ) No amount was lying with the company which was required to be transferred toinvestor education and protection fund in accordance with the relevant provisions of theCompanies Act 1956 (1 of 1956) and rules made there under.
8 Disclosure of Specifies Bank Notes
During the year the company had Specified Bank Notes (SBNs) or other denominationnotes as defined in the MCA notification G.S.R (308)E dated March 312017. The detailsof SBNs held and transacted during the period from November 8 2016 to December 30 2016the denomination-wise SBNs and other notes as per the notification are as follows:
Note: For the purpose of this clause the term 'Specified Bank Notes' shall have thesame meaning provided in the notification of the Government of India in the Ministry ofFinance Department of Economic Affairs number S.O 3407(E) dated November 82016.
9 . As informed to us the company has not defaulted in repayment of dues to financialinstitutions or banks.
10 . As informed to us the company has not given any guarantee for loans taken byothers from bank or financial institutions.
11. As informed to us the proceeds of the term loans taken by the company are appliedfor the purpose for which the loans were obtained.
12. Based on the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and as per the information and explanation given bythe management we report that no fraud by the company has been noticed or reported duringthe course of our audit.