The Members of H S INDIA LIMITED
Report on the Financial Statement
We have audited the accompanying financial statements of H S INDIA LIMITED ("theCompany") which comprise the Balance Sheet as at 31st March 2010. the Statement ofProfit and Loss including the Statement of Other Comprehensive Income the Cash PlowStatement and the Statement of Changes in Equity for the year then ended and a summary ofsignificant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of the affairs of the Company as at31st March. 2019 the profit and the total comprehensive income changes in equity and itscash flows for the year ended on that date.
Basis for Opinion:
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Companies Act 2013. Our responsibilities under thosestandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act. 2013 and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters:
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.
|S. No. ||Key Audit Matter ||Auditor's Response |
|1 ||Revenue Recognition ||Principal Audit Procedures |
| ||To ensure accuracy of recognition measurement. presentation and disclosures of revenues and related accounts. || We have assessed the Company's internal controls surrounding its revenue transactions; |
| || || We tested the key controls identified; |
| || || We performed substantive detail testing by selecting a sample of revenue transactions that we considered appropriate to test the evidence of effectiveness of the internal controls and adherence to accounting policies in recognising the revenue and the rebates and discounts there against. |
Information Other than the Financial Statements and Auditor's Report Thereon:
The Company's management and Board of Directors are responsible for the otherinformation The other information comprises the information included in the Company'sannual report. hut does not include the financial statements and our auditor's reportthereon.
Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so. consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained in the audit or otherwise appears to he materially misstated. If. based on thework we have performed we conclude that there is a material misstatement of this otherinformation we arc required to report that fact. We have nothing to report in thisregard.
Management's Responsibility for the financial Statements:
The Company's Board of Directors is responsible for the matters staled in the Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fan view of the financial positionfinancial performance including other comprehensive Income cash flows and changes inEquity of the company in accordance with the accounting principles generally accepted inIndia including the Indian Accounting Standards find AS) specified under Section 133 ofthe Act read with Companies (Indian Accounting Standards) Rules 2015 as amended.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting the 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 control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Ind-AS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so. The Board of Directors arc also responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibility for the Audit of the Financial Statements:
Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.
As part of an audit in accordance with SAs. we exercise professional judgment andmaintain professional skepticism throughout the audit We also:
Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not delating a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.
Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Linder section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basisof accounting and. based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or. if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.
Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.
Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and arc therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements:
1. As required by Section 143 (3) of the Act based on our audit 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 including the Statement of OtherComprehensive Income the Cash Flow Statement and Statement of Changes in Equity dealtwith by this Report arc in agreement with the books of account.
d) In our opinion the aforesaid Ind AS financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Companies (Indian AccountingStandards) Rules. 2015 as amended.
e) On the basis of written representations received from the directors as on 31stMarch. 2019 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March. 2019. from being appointed as a director in terms ofSection 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 "Annexurc A".
g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirement of section 197(16) of the Act as amended in our opinionand to the best of our information and according to the explanations given to us theremuneration paid/provided by the Company to its directors during the year is inaccordance with the provisions of Section 197 of the Act.
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 explanation given to us:
i The company does not have any pending litigations which would impact its financialposition;
ii. The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses; and
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
2. As required by the Companies (Auditors' Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act. we give in"Annexurc B" a statement on the matters on the matters specified in paragraphs 3and 4 of the Order.
| ||For PARY & CO. |
| ||Chartered Accountants |
| ||FRN: 007288C |
| ||Akash Gaglani |
|Place : Mumbai ||Partner |
|Date :30th May 2019 ||Membership No.: 114255 |
"Annexure A" to the Independent Auditor's Report to the Members of H S IndiaLimited
(Referred to in paragraph 1(f) under "Report in Other Legal and RegulatoryRequirement' section of our report of even date)
Report on the Internal Financial Controls over Financial Reporting under Clause (i) ofSub Section 3 of Section 143 of the Companies Act. 2013 ("the Act")
We have audited the internal financial controls over Financial Reporting of H S IndiaLimited ("the Company") as of 31st March. 2019 in conjunction with our audit ofthe financial statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls:
The Company's management is responsible for establishing and maintaining internalfinancial control 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 Company's policies the safeguarding of its assets the preventionand detection of frauds and errors the adequacy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Act.
Our responsibility is to express an opinion on the Company's internal controls overfinancial reporting based on our audit.
We conducted our audit in accordance with the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting ("the Guidance Note") and theStandards on Auditing issued by the Institute of Chartered Accountants of India anddeemed to be prescribed under Section 143(10) of the Act to the extent applicable to anaudit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. Thosestandards and the Guidance note require that we comply with ethical requirements and planand perform audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated 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 included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exist and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend upon the auditor's judgment including the assessment of the risks of materialmisstatement 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 opinion on the Company's 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 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:
a) Pertain to the maintenance of records that in reasonable details accurately andfairly reflect the transactions and dispositions of the assets of the Company.
b) Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditure of the Company arc being made only inaccordance with authorization of management and directors of the company and .
e) Provide reasonable assurance regarding prevention or timely detection ofunauthorized 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 the 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.
In our opinion the company has in all material respects an adequate internalfinancial controls systems over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March. 2019 based on"the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal controls stated in the Guidance note onAudit of Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India".
| ||- For PARY & CO. |
| ||Chartered Accountants |
| ||FRN: 007288C |
| ||Akash Gaglani |
|Place: Mumbai ||Partner |
|Date: 30th May 2019 ||Membership No.: 114255 |
Annexure B to the Independent Auditor's Report to the Members of the H S India Limiteddated 30th May 2019
Report on the matters specified in paragraph 3 of the Companies (Auditor's Report)Order. 2016 ("the Order") issued by the Central Government of India in terms ofSection 143(11) of the Companies Act. 2013 ("the Act") as referred to inparagraph 2 of 'Report on other Legal and Regulatory Requirement' section. We report that:
I. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.
(b) As explained to us. fixed assets have been physically verified by the management atreasonable intervals; no material discrepancies were noticed on such verification.
(c) The title deeds of Immovable properties are held in the name of the company.
II. As explained to us. inventories have been physically verified during the year bythe management at reasonable intervals and no material discrepancies have been noticed onsuch verification.
III. According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not granted any loans secured orunsecured to companies firms. Limited Liability Partnerships or other parties covered inthe register maintained under Section 189 of the Companies Act 2013.
IV. According to the Information and Explanation given to us and on the basis of ourexamination of the books of accounts the Company has duly complied with the provisions ofSection 185 and 186 of the Companies Act 2013 in respect of loans investmentsguarantees and securities.
V. Based on the audit procedures applied by us and according to the information andexplanations provided by the management the Company has not accepted deposits from publicwithin the meaning of directives issued by the Reserve Bank of India and provisions ofSections 73 to 76 or any other relevant provisions of the Act and the Rules framedthereunder are not applicable.
VI. As per information and explanation given by the management maintenance of costrecords has not been prescribed by the Central Government under sub-section (1) of Section148 of the Companies Act. 2013 for the Company's activities. Hence the provisions ofclause 3(vi) of the Order are not applicable to the company.
VII. (a) According to the records of the Company the Company is regular in depositingundisputed statutory dues including Employees' Provident Fund Employees' State Insurance.Income-tax. Sales-tax. Service Tax. Custom Duty. Excise Duty. Value Added Tax. Cess Goodsand Services Tax and any other statutory dues applicable to it.
(b) No undisputed amount payable in respect of Provident fund employees staleinsurance. Income Tax. Service Tax. Sales Tax. duty of customs duty of excise valueadded tax. Goods and Service Tax cess and other statutory dues were outstanding as on31st March. 2019 for a period of more than six months from the date they became payable.
(c) According to the information and explanations given to us. there is no amountspayable in respect of Income Tax Sales Tax Service Tax. duty of customs duty of excise Value Added Tax. Goods and Services Tax or cess on account of any dispute.
VIII. Based on our audit procedures and on the basis of information and explanationsgiven by the management we are of the opinion that the Company has not defaulted inrepayment of dues to a financial institution bank government or debenture holders.
IX. According to the information and explanation given to us. the Company has notraised money by way of initial public offer or further public offer (including debtinstruments) during the year under consideration. The Company has not availed any freshterm loan facility during the year under consideration.
X. Based on our audit procedures and on the basis of information and explanationgiven by the management we arc of the opinion that no fraud by the Company or on thecompany by its officers or employees has been noticed or reported during the year
XI. According to the information and explanation given to us. the Company has paidmanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of Section 197 read with Schedule V to the Companies Act 2013.
XII. In our opinion and according to the information and explanations given to us.the Company is not a Nidhi Company and therefore the provisions of clause 3(xii) of theOrder are not applicable to the company.
XIII. Based on the information and explanations given to us the Company hascomplied with Section 177 and 188 of the Companies Act 2013 wherever applicable and thedetails have been disclosed in the financial statement etc. as required by the applicableaccounting standards.
XIV. In our opinion and according to the information and explanations given to us.the Company has not made any preferential Allottement or private placement" of sharesor fully or partly convertible debentures during the year under review and hence notcommented upon.
XV. Based on the information and explanations given to us. the Company has notentered in to any non-cash transaction with directors or persons connected with him as perSection 192 of the Companies Act 2013.
XVI. According to the information and explanation given to us the Company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act. 1934.
| ||For PARY & CO. |
| ||Chartered Accountants |
| ||FRN: 007288C |
| ||Akash Gaglani |
|Place : Mumbai ||Partner |
|Dale :30th May2019 ||Membership No 114255 |
Significant Accounting Policies & Notes on Financial Statement for the year endedon 31st March. 2019