Harita Seating Systems Ltd.
|BSE: 590043||Sector: Auto|
|NSE: HARITASEAT||ISIN Code: INE939D01015|
|BSE 00:00 | 09 Apr||Harita Seating Systems Ltd|
|NSE 05:30 | 01 Jan||Harita Seating Systems Ltd|
|BSE: 590043||Sector: Auto|
|NSE: HARITASEAT||ISIN Code: INE939D01015|
|BSE 00:00 | 09 Apr||Harita Seating Systems Ltd|
|NSE 05:30 | 01 Jan||Harita Seating Systems Ltd|
To the Members of Harita Seating Systems Limited 29 Haddows Road Chennai.
Report on the Audit of the Standalone Financial Statements
We have audited the standalone financial statements of Harita Seating Systems Limited("the Company") which comprise the Balance Sheet as at 31st March2019 the Statement of Profit and Loss(including Other Comprehensive Income) theStatement of Changes in Equity and Statement of Cash Flows for the year then ended andnotes to the financial statements including a summary of significant accounting policiesand other explanatory information (hereinafter referred to as "the standalonefinancial statements"). In our opinion and to the best of our information andaccording to the explanations given to us the aforesaid standalone financial statementsgive the information required by the Act in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under Section 133of the Companies Act 2013 (the Act) read with the Companies (Indian Accounting Standards)Rules 2015 as amended ("Ind AS") and other accounting principles generallyaccepted in India of the state of affairs of the company as at 31st March2019 the profit and total comprehensive income changes in equity and its cash flows forthe year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance withStandards on Auditing (SAs) specified under Section 143(10) of the Companies Act 2013.Our responsibilities 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 ethical requirements that are relevant toour audit of the financial statements under the provisions of the Companies Act 2013 andthe Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.
Key Audit Matters
Key audit matters are those matters that in our professional judgement were of mostsignificance in our audit of the standalone financial statement 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.
Information Other than the Standalone Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the standalone financial statements and our auditor's report thereon.
Our opinion on the standalone financial statements does not cover the information andwe do not 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 during the course of audit 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.
Management's Responsibility for the Standalone 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 standalone financial statements that give a true and fair view of the financialposition financial performance total comprehensive income changes in equity and cashflows of the Company in accordance with the accounting principles generally accepted inIndia including the accounting Standards specified under Section 133 of the Act.Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds 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 accountingrecords relevant to the preparation and presentation of the standalone financialstatement that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so. The Board of Directors are also responsible foroverseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatements whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism 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 detecting 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. Under 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 financialstatements that individually or in aggregate makes it probable that economic decisionsof a reasonably knowledgeable user of the financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified 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 alsoprovide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence and to communicate with them allrelationships 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 are 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
As required by the companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of subsection (11) of section 143 ofthe Companies Act 2013 we give in the "Annexure A" a statement on the mattersspecified in the paragraphs 3 and 4 of the Order to the extent applicable. As required bythe Section 143(3) of the Act we report that:
(a) We have sought and obtained all the information and the explanations which to thebest of 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 book of accounts.
(d) In our opinion the aforesaid standalone financial statement comply with AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rule 2014.
(e) On the basis of written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 from being appointed as directors in term ofSection 164 (2) of the Act.
(f) With respect to the adequacy of the financial controls over the financial reportingof the Company and the operating effectiveness of such controls refer to our separateReport in "Annexure B". Our report expresses an unmodified opinion on theadequacy 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 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 by the Company to its directors during the year is in accordance withthe provisions of Section 197 of the Act.
(h) With respect to other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended 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 the financialposition in its standalone financial statements- Refer Note 40 (4) to the financialstatements;
ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses;
iii. There has been no delay in transferring amounts required to be transferred theInvestor Education and Protection Fund by the Company.
Annexure 'A' to Independent Auditors' Report - 31st March 2019 (Referred toin our report of even date)
i) a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets;
b) Fixed assets are physically verified by the management in accordance with a regularprogramme at reasonable intervals. In our opinion the interval is reasonable having regardto the size of the company and nature of its assets. No material discrepancies have beennoticed on such verifications;
c) The title deeds of the immovable properties of the company are held in the name ofthe company;
ii) The inventory other than in-transit has been physically verified at reasonableintervals during the year under review by the management. The discrepancies noticedbetween the book stock and physical stock were not material and have been properly dealtwith in the books of account; In respect of inventories with third parties which have notbeen physically verified there is a process of obtaining confirmation from such parties;
iii) During the year the Company has not granted any loan to a company firm or otherparties covered in the register maintained under Section 189 to the Companies Act 2013;
iv) During the year the company has not granted any loans nor has furnished anyguarantee nor provided any security or made any investments which attracts provisions ofSection 185 and 186 of the Companies Act 2013. Hence reporting under sub-clause (iv) ofparagraph 3 of the Order does not arise;
v) The Company has not accepted any deposits from the public within the meaning ofSection 73 to 76 of the Companies Act 2013. Hence reporting under sub-clause (v) ofparagraph 3 of the Order is not applicable to the Company;
vi) We have broadly reviewed the books of account maintained by the Company pursuant tothe rules made by the Central Government under Section 148(1) of the Companies Act 2013for the maintenance of cost records and we are of the opinion that prima facie theprescribed accounts and records have been made and maintained. We have however not madea detailed examination of the cost records with a view to determine whether they areaccurate or complete;
vii) a) According to the information and explanation given to us and on the basis ofour examination of the records of the company the Company is generally regular indepositing undisputed statutory dues including provident fund employees state insuranceIncome-tax sales tax custom duty excise duty service tax value added tax cess goodsand services tax and any other material statutory dues with the appropriate authoritiesexcept for few marginal delays. Further there are no statutory dues in arrears as at 31stMarch 2019 for a period of more than six months from the date they became payable;
b) According to the information and explanations given to us following are the detailsof the disputed dues that were not been deposited on account of any dispute as on 31stMarch 2019:
viii) Based on our verification and according to the information and explanations givenby the management the company has not defaulted in repayment of dues to its banks. Thecompany has not borrowed from any financial institution or Government nor has issued anydebentures;
ix) The Company has not raised any money by way of initial public offer or furtherpublic offer including (including debt instruments) during the year. Hence reporting onutilization of such money does not arise. In our opinion and according to the informationand explanations given to us the term loans availed by the Company have been utilised forthe purpose for which they were obtained;
x) Based on the audit procedures adopted and the information and explanation given tous no fraud by the Company or on the Company by its officers and employees has beennoticed or reported during the course of our audit;
xi) In our opinion and according to the information and explanations given to usManagerial remuneration paid/ provided are in accordance with the requisite approvalsmandated by the provisions of Section 197 read with Schedule V of the Companies Act.Hence reporting subclause (xi) of paragraph 3 of the Order does not arise;
xii) The Company is not a Nidhi Company and as such this clause of the order is notapplicable;
xiii) In our opinion and according to the information and explanations given to us alltransactions with the related parties are in compliance with Section 177 and 188 of theact and details of such transactions have been disclosed in standalone financialstatements as required by the applicable accounting standards;
xiv) According to the information and explanation given to us and in our opinion thecompany has not made any preferential or private placement of shares or fully or partlyconvertible debentures during the year under review;
xv) According to the information and explanation given to us and in our opinion thecompany has not entered into any non-cash transactions with directors or persons connectedwith them;
xvi) The Company is not required to be registered under Section 45-IA of the ReserveBank Act 1934.
Annexure 'B' to the Independent Auditors' Report for the year ended 31st March2019
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 HaritaSeating Systems Limited ("the Company") Jayalakshmi Estates #29 HaddowsRoad Chennai - 600006 as of 31st March 2019 in conjunction with our audit ofthe standalone 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 controls based on the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation 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 on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by Institute ofChartered Accountants of India and deemed to be prescribed under Section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controls.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was 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 auditor's judgment including the assessment of the risks ofmaterial misstatement of the standalone financial statements whether due to fraud orerror. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the Company's internal financial controlssystem over 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 standalone financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that; (1) Pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) Provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the Company; and (3) Provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the standalone financial statements.
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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31st March 2019 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.