We have audited the accompanying financial statements of Hariyana Metals Limited ("the company" bearing Corporate Identification No. L28100MH1972PLC015817 ) which comprise the Balance Sheet as at 31st March 2020 the Statement of Profit and LossThe Statement of Cash Flow & The Statement of Changes in Equity for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.
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 affairs of the Company as at March31 2020 and of profit changes in equity and its cash flows for the year ended on thatdate.
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 Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.
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 changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Ind-accountingStandards specified under section 133 of the Act. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate implementation andmaintenance of accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statement 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. Those Board of Directors are also responsible for overseeing thecompany's financial reporting process
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 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 of theCompanies 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. As required bySection 143(3) of the Act we report that: We have sought and obtained all the informationand explanations which to the best of our knowledge and belief were necessary for thepurposes of our audit. a. In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books. b. TheBalance Sheet the Statement of Profit and Loss and the Cash Flow Statement dealt with bythis Report are in agreement with the books of account c. In our opinion the aforesaidstandalone financial statements comply with the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. e. Onthe basis of the written representations received from the directors as on 31st March2020 taken on record by the Board of Directors none of the directors is disqualified ason 31st March 2020 from being appointed as a director in terms of Section 164 (2) of theAct. f. With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in
"Annexure B". g. With respect to the other matters to be included in theAuditor's Report in accordance with
Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to the explanations given to us:
1. The Company does not have any pending litigations which would impact its financialposition.
2. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses hence has made no provision as requiredunder the applicable law or accounting standards. 3. There were no amounts which wererequired to be transferred to the Investor Education and Protection Fund by the Company.
ANNEXURE-A REFERRED TO IN THE AUDITOR'S REPORT ON THE ACCOUNTS OF HARIYANA METALSLIMTED FOR THE YEAR ENDING 31ST MARCH 2020
As required by the Companies (Auditor's Report) Order 2020 issued by the CentralGovernment of India in term of sub-section (11) of section 143 of the Companies Act 2013taking into consideration the information and explanations given to us and the books ofaccount and other records examined by us in the normal course of audit and to the best ofour knowledge and belief we report the following:
|S. No. ||Particulars ||Auditors Remark |
|(i) ||(a) whether the company is maintaining proper records showing full particulars including quantitative details and situation of property plant & equipments; ||Yes the company is maintaining proper records as required under the act. |
| ||(b) whether these property plant & equipments have been physically verified by the management at reasonable intervals; whether any material discrepancies were noticed on such verification and if so whether the same have been properly dealt with in the books of account; ||As explained to us all the fixed assets have been physically verified by the management during the year at reasonable intervals which in our opinion is reasonable having regard to the size of the company and the nature of assets. No material discrepancies were noticed on such physical verification. |
| ||(c) whether the title deeds of immovable properties are held in the name of the company. If not provide the details thereof ||Yes the title deeds of immovable properties are held in the name of the company. |
| ||(d) whether the company has revalued its Property Plant and Equipment (including Right of Use assets) or intangible assets or both during the year and if so whether the revaluation is based on the valuation by a Registered Valuer; specify the amount of change if change is 10% or more in the aggregate of the net carrying value of each class of Property Plant and Equipment or intangible assets; ||The company has not revalued its Property Plant and Equipment. |
| ||(e) whether any proceedings have been initiated or are pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act 1988 (45 of 1988) and rules made there under if so whether the company has appropriately disclosed the details in its financial statements ||As explained to us no proceedings have been initiated or are pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act |
|(ii) ||(a) whether physical verification of inventory has been conducted at reasonable intervals by the management and whether in the opinion of the auditor the coverage and procedure of such verification by the management is appropriate; whether any discrepancies of 10% or more in the aggregate for each class of inventory were noticed and if so whether they have been properly dealt with in the books of account; ||As explained to us the inventory of stocks of trading goods has been physically verified by the management at regular intervals during the year. In our opinion and according to the information and explanations given to us and on the basis of our examination of the records of inventory. the Company has maintained proper records of inventory and there were no material discrepancies noticed on physical verification of inventory as compared to the book records |
| ||(b) whether during any point of time of the year the company has been sanctioned working capital limits in excess of five crore rupees in aggregate from banks or financial institutions on the basis of security of current assets; whether the quarterly returns or statements filed by the company with such banks or financial institutions are in agreement with the books of account of the Company if not give details ||The company has not been granted working capital limits in excess of five crore rupees. |
|(iii) ||(iii) (a) whether during the year the company has provided loans or provided advances in the nature of loans or stood guarantee or provided security to any other entity ||(A) The company has not granted any loan to an associate entity during the year |
| ||(A) the aggregate amount during the year and balance outstanding at the balance sheet date with respect to such loans or advances and guarantees or security to subsidiaries joint ventures and associates; || |
| ||(B) the aggregate amount during the year and balance outstanding at the balance sheet date with respect to such loans or advances and guarantees or security to parties other than subsidiaries joint ventures and associates; ||(B)The company has not granted any loan during the year to any entity other than the associate. |
| ||(b) whether the terms and conditions of the grant of such loans are not prejudicial to the company's interest; ||Since no loan has been given this clause is not applicable. |
| ||(c) whether the schedule of repayment of principal and payment of interest has been stipulated and whether the repayments or receipts are regular; ||Since no loan has been given this clause is not applicable. |
| ||(d) if the amount is overdue state the total amount overdue for more than ninety days and whether reasonable steps have been taken by the company for recovery of the principal and interest; ||Since no loan has been given this clause is not applicable. |
| ||(e) whether any loan or advance in the nature of loan granted which has fallen due during the year has been renewed or extended or fresh loans granted to settle the overdues of existing loans given to the same parties if so specify the aggregate amount of such dues renewed or extended or settled by fresh loans and the percentage of the aggregate to the total loans or advances in the nature of loans granted during the year ||As explained to us no such case exists. |
|(iv) ||in respect of loans investments guarantees and security whether provisions of section 185 and 186 of the Companies Act 2013 have been complied with. If not provide the details thereof. ||In our opinion and according to the information and explanations given to us the provisions of section 185 and 186 of the Companies Act 2013 have been complied with. |
|(v) ||in case the company has accepted deposits whether the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act 2013 and the rules framed there under where applicable have been complied with? If not the nature of contraventions should be stated; If an order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal whether the same has been complied with or not? ||In our opinion and according to the information and explanations given to us the Company has not accepted deposits from the public during the year and therefore the provisions of Section 73 to 76 of the Companies Act 2013 and Rules made there under are not applicable to the Company |
|(vi) ||where maintenance of cost records has been specified by the Central Government under sub-section (1) of section 148 of the Companies Act whether such accounts and records have been made and maintained; ||The maintenance of cost record has not been prescribed by the Central Government under sub-section (1) of section 148 of the Companies Act 2013. |
|(vii) ||(a) is the company regular in depositing undisputed statutory dues including provident fund employees' state insurance income-tax sales-tax wealth tax service tax duty of customs duty of excise value added tax cess and any other statutory dues with the appropriate authorities and if not the extent of the arrears of outstanding statutory dues as at the last day of the financial year concerned for a period of more than six months from the date they became payable shall be indicated. ||According to the information and explanations given to us the company was generally regular in depositing statutory dues . |
| ||(b) in case dues of income tax or sales tax or wealth tax or service tax or duty of customs or duty of excise or value added tax or cess have not been deposited on account of any dispute then the amounts involved and the forum where dispute is pending shall be mentioned. (A mere representation to the concerned Department shall not constitute a dispute). ||According to the records examined by us and the information and explanations given to us there are no disputed amounts due in respect of income tax sales tax wealth tax excise duty Employees provident fund Employee state insurance fund and other statutory dues at the end of the year outstanding in the books. |
|(viii) ||whether any transactions not recorded in the books of account have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act 1961 (43 of 1961) if so whether the previously unrecorded income has been properly recorded in the books of account during the year ||According to the records examined by us and the information and explanations given to us there are no such transactions. |
|(ix) ||(a) whether the company has defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender if yes the period and the amount of default to be reported ||Based on our audit procedures and on the basis of information and explanations given by the management the Company has not defaulted in the repayment of dues to any of its lender during the year. The company has not been declared as willful defaulter. Term loans have been applied during the year and have been used for the purpose for which they are raised. No fresh funds have been raised during the year. No funds have been raised on account to associates etc neither has the company has raised loans during the year on the pledge of securities held in its subsidiaries joint ventures or associate companies. Loan had been taken from associate concern to meet temporary working capital needs which has been repaid. |
| ||(b) whether the company is a declared wilful defaulter by any bank or financial institution or other lender; || |
| ||(c) whether term loans were applied for the purpose for which the loans were obtained; if not the amount of loan so diverted and the purpose for which it is used may be reported; || |
| ||(d) whether funds raised on short term basis have been utilised for long term purposes if yes the nature and amount to be indicated; || |
| ||(e) whether the company has taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries associates or joint ventures if so details thereof with nature of such transactions and the amount in each case; || |
| ||(f) whether the company has raised loans during the year on the pledge of securities held in its subsidiaries joint ventures or associate companies if so give details thereof and also report if the company has defaulted in repayment of such loans raised; || |
|(x) ||(a) whether moneys raised by way of initial public offer or further public offer (including debt instruments) during the year were applied for the purposes for which those are raised if not the details together with delays or default and subsequent rectification if any as may be applicable be reported; ||The Company has not raised any money by way of initial public offer or further public offer during the year. |
| ||(b) whether the company has made any preferential allotment or private placement of shares or convertible debentures (fully partially or optionally convertible) during the year and if so whether the requirements of section 42 and section 62 of the Companies Act 2013 have been complied with and the funds raised have been used for the purposes for which the funds were raised if not provide details in respect of amount involved and nature of non-compliance; ||As per the explanation given to us and information provided the company has not made preferential allotment & private placement of shares during the year under review |
|(xi) ||(a) whether any fraud by the company or any fraud on the company has been noticed or reported during the year if yes the nature and the amount involved is to be indicated; ||As per the explanation given to us and information provided no fraud on or by the company has been noticed or reported neither have there been any whistle blower complaints received as informed to us. |
| ||(b) whether any report under sub-section (12) of section 143 of the Companies Act has been filed by the auditors in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules 2014 with the Central Government; || |
| ||(c) whether the auditor has considered whistle-blower complaints if any received during the year by the company; || |
|(xii) ||whether the Nidhi Company has complied with the Net Owned Funds to Deposits in the ratio of 1: 20 to meet out the liability and whether the Nidhi Company is maintaining ten per cent unencumbered term deposits as specified in the Nidhi Rules 2014 to meet out the liability; ||Since the company is not a Nidhi Company this clause is not applicable. |
|(xiii) ||whether all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act2013 where applicable and the details have been disclosed in the Financial Statements etc. as required by the applicable accounting standards; ||As per the explanation given to us and information provided transactions with the related parties are in compliance with sections 177 and 188 of Companies Act2013 |
|(xiv) ||(a) whether the company has an internal audit system commensurate with the size and nature of its business; ||As per the explanation given to us and information provided the company is managed by the directors themselves and each transaction is looked upon by them which provides us a basis to believe that the company has a system commensurate with the size and nature of its business |
|(xv) ||whether the company has entered into any non-cash transactions with directors or persons connected with him and if so whether the provisions of section 192 of Companies Act 2013 have been complied with; ||The company has not entered into any non- cash transactions with directors or persons connected with him with regards to section 192. |
|(xvi) ||whether the company is required to be registered under section 45-IA of the Reserve Bank of India Act 1934 and if so whether the registration has been obtained. ||The company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934 |
|(xvii) ||whether the company has incurred cash losses in the financial year and in the immediately preceding financial year if so state the amount of cash losses ||The company has not incurred any cash losses during the financial year and in the immediately preceding financial year |
|(xviii) ||whether there has been any resignation of the statutory auditors during the year if so whether the auditor has taken into consideration the issues objections or concerns raised by the outgoing auditors; ||There have been no resignation by statutory auditors during the year. |
|(xix) ||on the basis of the financial ratios ageing and expected dates of realisation of financial assets and payment of financial liabilities other information accompanying the financial statements the auditor's knowledge of the Board of Directors and management plans whether the auditor is of the opinion that no material uncertainty exists as on the date of the audit report that company is capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date; ||As per the explanation given to us and information provided by the company we opine that as on the date of the audit report that company is capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. |
|(xx) ||(a) whether in respect of other than ongoing projects the company has transferred unspent amount to a Fund specified in Schedule VII to the Companies Act within a period of six months of the expiry of the financial year in compliance with second proviso to sub-section (5) of section 135 of the said Act; ||This clause is not applicable to the company. |
| ||(b) whether any amount remaining unspent under sub-section (5) of section 135 of the Companies Act pursuant to any ongoing project has been transferred to special account in compliance with the provision of sub-section (6) of section 135 of the said Act; || |
|(xxi) ||whether there have been any qualifications or adverse remarks by the respective auditors in the Companies (Auditor's Report) Order (CARO) reports of the companies included in the consolidated financial statements if yes indicate the details of the companies and the paragraph numbers of the CARO report containing the qualifications or adverse remarks. ||This clause is not applicable to the company since no reports of other companies have been included in the financial statements. |
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 HariyanaMetals Limited ("the Company") as of 31 March 2020 in conjunction with our auditof the financial statements of the Company for the year ended on that date.
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 responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating 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 accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe 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 was established and maintained and if suchcontrols operated effectively in all material respects. Our audit involves performingprocedures to obtain audit evidence about the adequacy of the internal financial controlssystem over financial reporting and their operating effectiveness. Our audit of internalfinancial controls over financial reporting included obtaining an understanding ofinternal financial controls over financial reporting assessing the risk that a materialweakness exists and testing and evaluating the design and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our audit opinion onthe Company's internal financial controls system 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 andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.
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 2020 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.