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Harish Textile Engineers Ltd.

BSE: 542682 Sector: Engineering
NSE: N.A. ISIN Code: INE01K301012
BSE 00:00 | 04 Jul 48.80 -1.10
(-2.20%)
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NSE 05:30 | 01 Jan Harish Textile Engineers Ltd
OPEN 48.80
PREVIOUS CLOSE 49.90
VOLUME 10
52-Week high 65.70
52-Week low 28.55
P/E 33.66
Mkt Cap.(Rs cr) 16
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 48.80
CLOSE 49.90
VOLUME 10
52-Week high 65.70
52-Week low 28.55
P/E 33.66
Mkt Cap.(Rs cr) 16
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Harish Textile Engineers Ltd. (HARISHTEXTILE) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

Harish Textile Engineers Limited.

Report on the Audit of the Financial Statements

Qualified Opinion

We have audited the accompanying financial Statements of Harish Textile EngineersLimited ("the Company") which comprises the Balance Sheet as at 31st March2021 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and the Statement of Cash Flows for the year then endedand notes to the financial statements including a summary of significant accountingpolicies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effect of the matters described in the Basis for QualifiedOpinion section of our report the aforesaid financial Statements give the informationrequired by the Companies Act 2013 (the "Act") in the manner so required andgive a true and fair view in conformity with the Indian Accounting Standards prescribedunder section 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015 as amended ("Ind AS") and other accounting principles generally acceptedin India of the state of affairs of the Company as at 31st March 2021 the profit andtotal comprehensive income the changes in equity and its cash flows for the year ended onthat date.

Basis for Qualified Opinion

The Company has not provided for gratuity liability of employees as required by Ind AS19 on "Employee Benefits" (Refer Note No. 29.1). The impact of the same couldnot be quantified in the absence of actuarial valuation/management estimate. Our auditopinion on the financial statements for the year ended 31 March 2021 is qualified inrespect of the said matter.

We conducted our audit of the Financial Statements in accordance with the Standards onAuditing (SAs) specified under section 143(10) of the Companies Act 2013. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India together with the independence requirements that arerelevant to our audit of the financial Statements under the provisions of the CompaniesAct 2013 and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our qualified opinion on the Financial Statements.

Emphasis of Matters

We draw attention to Note 38 of the financial statement in which the Company describesthe uncertainties arising from the COVID 19 pandemic. Our report is not modified inrespect of this matter.

Report on Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. We havedetermined that there are no key audit matters to communicate in our report.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for preparation of the otherinformation. The other information comprises the information included in Board's Reportincluding Annexure to Board's Report Corporate Governance and Shareholder's Informationbut does not include the financial statements and our auditor's report thereon.

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 Financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Responsibilities of Management and those charged with governance for the financialStatements

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 including total comprehensive income changes in equity and cashflows of the Company in accordance with the Ind AS and other accounting principlesgenerally accepted in India including Accounting Standards (Ind AS) specified undersection 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the Ind AS financial statement that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

In preparing the Ind AS financial statements management is responsible for assessingthe Company'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 are also responsible for overseeing the company's financialreporting process.

Auditor's Responsibilities for the Audit of financial statement

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 financialStatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company 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 financial Statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialStatements including the disclosures and whether the financial Statements represent theunderlying transactions and events in a manner that achieves fair presentation.

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 financial Statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen 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 the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the Annexure "A" a statement on the mattersspecified in paragraphs 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 purposes 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 Other ComprehensiveIncome Statement of Changes in Equity and the Cash Flow Statement dealt with by thisReport 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 31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 from being appointed as a director in termsof Section 164 (2) of the Act.

f) With respect to the adequacy of the Internal Financial Control over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in Annexure "B". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of the section 197(16) of the Act as amended:

In our opinion and to the best of our information and according to the explanationgiven to us the remuneration paid 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 explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial Statements.

ii. The Company has made provision as required under the applicable law or Ind AS formaterial foreseeable losses if any on long-term contracts including derivativecontracts;

iii. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company during the year ended March 312021.

ANNEXURE - A TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 under "Report on the Other Legal and RegulatoryRequirements' section of our report of even date)

a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b. The Company has a regular program of physical verification of fixed assets by themanagement in a phased periodical manner which in our opinion is reasonable havingregard to the size of the Company and the nature of its assets. In accordance with thisprogram certain assets were verified by the management during the year and no materialdiscrepancies were noticed on such verification.

c. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company except for the following properties.

Sr. No. Description Property Amount in Rs.
01 Freehold Agricultural Land* Rs. 65000000/-

* The said land is presently registered in the name of Mr. Sandeep Gandhi Director ofthe Company.

ii. As explanations given to us the management has conducted physical verificationof inventories at reasonable intervals during the year and no material discrepancies werenoticed on such physical verification.

iii. According to information and explanations given to us the Company has notgranted any loans secured or unsecured to Companies Firms Limited LiabilitiesPartnerships or other parties covered in the register maintained under section 189 of theAct. Therefore the provisions of Para 3 (iii) [(a) to (c)] of the Companies (Auditor'sReport) Order 2016 are not applicable to the company.

iv. In our opinion and according to the information and explanations given to usthe Company has complied with the provisions of Section 186 and 185 of the Act in respectof grant of loans making investments and providing guarantees and securities asapplicable.

v. According to the information and explanations given to us the Company has notaccepted any deposits during the year from the public within the meaning of provisions ofsection 73 to 76 of the Companies Act 2013 and the rules framed there under andtherefore reporting under clause (V) of the order is not applicable to the Company.

vi. We have broadly reviewed the books of account maintained by the Companypursuant to the order of the Central Government for maintenance of cost records under subsection (1) of the Section 148 of the Companies Act 2013 and are of the opinion thatprima facie the prescribed records have been made and maintained. We have however notmade a detailed examination of the records with a view to determining whether they areaccurate or complete.

vii. a. In our opinion and according to the information and explanations given tous the Company has been regular in depositing with appropriate authorities undisputedstatutory dues including Provident Fund Employees' State Insurance Income-taxSales-tax GST Wealth Tax Service Tax Custom Duty Excise Duty Value Added Tax cessand any other statutory dues applicable to it and there are no such outstanding dues as atthe year end for a period of more than six months from the date they became payable exceptthe following:

Statement of arrears of statutory dues outstanding for more than six months:

Months Name of the Statute Nature of the Dues Amount (Rs.) Period to which the amount relates Remarks if any
F.Y. 2020-21 Income tax 3376314/- F.Y. 2020-21

b. According to the information and explanations given to us there are no duesoutstanding of Income-tax Sales-tax GST Wealth Tax Service Tax Custom Duty ExciseDuty Value Added Tax on account of any dispute.

viii. Based on our audit procedures and according to the information andexplanations given to us by the management we are of the opinion that the Company has notdefaulted in the repayment of dues to banks dues to debenture holder and financialinstitutions. The Company does not have any loans or borrowings from any government.

ix. In our opinion and according to the information and explanations given to usthe term loans (including debt instruments)/ have been applied for the purpose for whichraised. The Company has not raised any money by way of initial public offer or furtherpublic offer during the year.

x. In our opinion and according to the information and explanations given to us nomaterial fraud on or by the Company has been noticed or reported during the course of ouraudit.

xi. In our opinion and according to information and explanation given to us thecompany has complied with the provisions of section 197 read with schedule 5 to theCompanies Act 2013 with respect to managerial remuneration.

xii. In our opinion and according to the information and explanation given to usthe Company is not a Nidhi Company and therefore reporting under clause (xii) of theorder is not applicable to the Company.

xiii. In our opinion and according to information and explanation given to us theCompany's transactions with its related party are in compliance with Section 177 and 188of the Companies Act 2013 where applicable and details of related party transactionshave been disclosed in the financial statements as required by the applicable accountingstandards.

xiv. According to information and explanation given to us the company has not madeany preferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review.

xv. In our opinion and according to information and explanation given to us thecompany has not entered in to any non-cash transactions with directors or personsconnected with him. Therefore the provisions of clause (XV) of the order are notapplicable to the Company.

xvi. According to the information and explanation given to us the company is notrequired to register under section 45-IA of the Reserve Bank of India Act 1934.

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2(f) under "Report on the Other Legal and RegulatoryRequirements' section of our report of even date)

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 HarishTextile Engineers Limited ("the Company'') as of March 31 2021 in conjunction withour audit of the financial statements of the Company for the year ended on that date.

1. Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of internal financialcontrols with reference to financial statements of the Company that were operatingeffectively for ensuring the orderly and efficient conduct of its business thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation of reliablefinancial information as required under the Companies Act 2013.

2. 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 prescribed under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls with reference to financial statement of theCompany were established and maintained and if such controls operated effectively in allmaterial respects.

Our audit involves performing procedures to obtain audit evidence about the internalfinancial controls with reference to Financial Statement of the Company and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material 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.

3. 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.

4. 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.

5. Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an internal financial controls withreference to Financial Statements of the Company and such internal financial controls overfinancial reporting were operating effectively as at March 31 2021 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 K. M. Swadia and Company Chartered Accountants
(Firm's Registration No. 110740W)
Archit Antani Partner
Place: Vadodara (Membership No. 149221)
Date: June 30 2021 UDIN: 21149221AAAABE8102

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