The Members of
HARIA EXPORTS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of HARIA EXPORTS LIMITED ( theCompany ) which comprise the Balance Sheet as at March 31 2017 the Statement of Profitand Loss and Cash Flow Statement for the year then ended and a summary of significantaccounting 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 CompaniesAct. 2013 ( the Act ) with respect to the preparation of these financial statements thatgive a true and fair view of the financial position financial performance and cash flowsof the Company in accordance with the accounting principles generally accepted in Indiaincluding the Accounting Standards specified under section 133 of the Act read with rule7 of the Companies (Accounts) Rules 2014. This responsibility also includes maintenanceof adequate accounting records in accordance with the provision of the Act forsafeguarding the assets of the company and for preventing and detecting frauds and otherirregularities selection and application of appropriate accounting policies makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of internal financial controls that were operating effectively for ensuringthe accuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
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 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 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 financial control relevant to the Company s preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by management as well as evaluating the overall presentation of thefinancial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
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
a. in the case of the Balance Sheet of the state of affairs of the Company as at March31 2017; b. in the case of the Statement of Profit and Loss of the Loss for the yearended on that date; and c. in the case of the Cash Flow Statement of the cash flows forthe year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2016 ( the Order ) issued bythe Central Government of India in terms of sub-section (11) of section 143 of theCompanies Act we give in the Annexure A a statement on the matters specified inparagraphs 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 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 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 financial statements comply with the AccountingStandards specified under Section
133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.
e. On the basis of the written representations received from the directors as on March31 2017 taken on record by the
Board of Directors none of the directors is disqualified as on March 31 2017 frombeing appointed 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 B ; and
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 opinion and to the best of our informationand according to the explanations given to us;
i. The Company does not have any pending litigation on its financial position in itsfinancial statements. ii. The Company does not have any long term contracts includingderivative contracts for which there were any material foreseeable losses; iii. There areno amounts which are required to be transferred to the Investor Education and ProtectionFund by the Company. iv. The Company has provided requisite disclosures in the financialstatements as regards the holding and dealings in Specified Bank Notes as defined in theNotification S.O. 3407(E) dated November 8 2016 of the Ministry of Finance during theperiod from November 8 2016 to December 30 2016 as applicable. Based on audit proceduresperformed and the representations provided to us by the management we report that thedisclosures are in accordance with the relevant books of account maintained for thepurpose of preparation of the financial statements and as produced to us by themanagement.
FOR KANAK RATHOD & CO.
Firm Registration No.: 104700W
M No. : 032833
ANNEXURE A TO THE INDEPENDENT AUDITORS REPORT
The Annexure referred to in Independent Auditors Report to the members of HARIA EXPORTSLIMITED ( the Company ) on the Financial Statements for the year ended 31st March 2017 wereport that:
i. The company does not have any fixed assets. Hence clause (ia) to (ic) of paragraph 3of the order is not applicable. ii. As informed to us the inventory has been physicallyverified during the year by the management. In our opinion the frequency of verificationis reasonable. No material discrepancies were noticed on such physical verification ascompared to the book records. iii. According to the information and explanations given tous the Company has granted unsecured loans to two parties which are to be covered in theRegister which is to be updated as per Section 189 of the Act.
The company has granted loan of Rs. 3360000/- during the year. Outstanding amount ofthe said loan as on 31st March 2017 is Rs.32898083/-. As there are no terms andconditions stipulated these loans are prejudicial to the interest of the company.
iv. In our opinion and according to the information and explanations given to us theprovisions of section 185 and 186 of the Companies Act 2013 are to be complied. v. Duringthe year under consideration the company has not accepted any deposits from the public inaccordance with the provisions of section 73 to 76 of the Act and the rules framed thereunder. vi. As informed to us the maintenance of Cost Records has not been specified bythe Central Government under subsection (1) of Section 148 of the Act in respect of theactivities carried on by the company. vii. In our opinion and according to the informationand explanation given to us in respect of statutory and other dues:
a. The Company has been regular in depositing undisputed statutory dues includingProvident fund Income-tax Sales
Tax Service Tax Custom Duty and any other material statutory dues as applicable toit. According to the information and explanation given to us no undisputed amountspayable in respect of outstanding statutory dues were in arrears as at March 31 2017 fora period of more than six months from the date they became payable. b. According to theinformation and explanations given to us and the records of the company examined by usthe disputed dues in respect of Income Tax & FEMA are as under:
|Nature of Dues ||Amount ||Period to which amount relates ||Forum where dispute is pending |
|Income Tax ||39126117/- ||F.Y. 1998-1999 ||The Hon'ble High Court Mumbai |
| || ||F.Y. 1999-2000 || |
| || ||F.Y. 2000-2001 || |
|Income Tax ||27030/- ||F.Y. 2010-2011 ||Commissioner of Income Tax Appeals |
|FEMA ||2719901/- ||F.Y. 2001-2002 ||Appellate Tribunal for Foreign Exchange |
viii. In our opinion and according to the information and explanations given to us thecompany has not defaulted in repayment of dues to financial institution or bank. Thecompany did not have any outstanding dues to any debenture holders during the year. ix. Inour opinion and according to the information and explanations given to us on an overallbasis the term loans have been applied for the purpose for which they were raised. Thecompany has not raised any money by initial public offer or further public offer. x.According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe year. xi. According to the information and explanations given to us the Company haspaid managerial remuneration in accordance with the requisite approvals mandated by theprovisions of section 197 read with schedule V of the Companies Act 2013. xii. In ouropinion and according to the information and explanations given to us the Company is nota Nidhi Company.
Accordingly paragraph 3(xii) of the Order is not applicable. xiii. In our opinion andaccording to the information given to us all transactions with related parties are incompliance with sections 177 and 188 of the Companies Act where applicable and the detailsof such transactions have been disclosed in the Financial Statements as required by theapplicable accounting standards. xiv. The Company has not made any preferential allotmentor private placement of shares or fully or partly convertible debentures during the yearunder review. xv. To the best of our knowledge and according to the information andexplanations given to us the Company has not entered into any non-cash transactions withthe directors or the persons connected to him. Accordingly paragraph 3(xv) of the Order isnot applicable. xvi. The Company is not required to be registered under Section 45-IA ofthe Reserve Bank of India Act 1934. Accordingly the provisions of clause (xvi) of theOrder are not applicable to the Company.
FOR KANAK RATHOD & CO.
Firm Registration No.: 104700W
M No. : 032833
ANNEXURE B TO THE AUDITORS 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 HARIAEXPORTS LIMITED ( the Company ) as of 31 March 2017 in conjunction with our audit of thefinancial 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 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 ( ICAI ). 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 the 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.
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 deemed to beprescribed under Section 143(10) of the Companies Act 2013 to the extent applicable toan audit 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 the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting were established and maintained and if suchcontrols 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 auditors 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 Company s internal financial controls systemover 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 financial reporting includes those policiesand procedures that (1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of theCompany; (2) provide reasonable assurance that transactions are recorded as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the Company are being madeonly in accordance with authorizations of the Management and directors of the Company; and(3) provide reasonable assurance regarding prevention or timely detection of unauthorizedacquisition use or disposition of the Company s assets that could have a material effecton 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.
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 effectively as at 31 March 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
FOR KANAK RATHOD & CO.
Firm Registration No.: 104700W
M No. : 032833