THE MEMBERS OF
HEERA ISPAT LIMITED
Report on the Financial Statements
We have audited the accompanying Financial statements of HEERA ISPAT LIMITED ("thecompany")which comprise the Balance Sheet as at 31st March 2017 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
Management's Responsibility for the 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 Financial Statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrol that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue 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 true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe financial 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 31stMarch 2017;
b) In the case of the Statement of Profit and Loss of the Profit for the year ended onthat date; and
c) In the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of sub-section (11) of section 143 of the Act (hereinafterreferred to as the "Order") and on the basis of such checks of the books andrecords of the company as we considered appropriate and according to the information andexplanations given to us we give in the Annexure a statement on the matters specified inthe paragraph 3 and 4 of the Order.
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 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 31stMarch 2017 are taken on record by the Board of Directors none of the Director isdisqualified as on 31st March 2017 from being appointed as a Director in termsof 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 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. In our opinion and as per the information and explanation provided to us theCompany has not entered into any long-term contracts including derivatives contractrequiring provision under applicable laws or accounting standards for materialforeseeable losses.
iii. The company is not required to transfer any amount to Investor Education andProtection Fund.
iv. the company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period From 8 November2016 to 30 December2016 and these are in accordance with the books of accounts maintainedby the Company Refer Notes to accounts of its financial statements.
|For DJNV & CO. || |
|Chartered Accountants || |
|Firm Regn. No. 115145W ||Place: Ahmedabad |
| ||Date: 30/05/2017 |
|Devang Doctor || |
|(Partner) || |
|M.No. 039833 || |
Annexure -B to Independent Auditors' Report
Referred to in paragraph 10(I) of the Independent Auditors' Report of even date to themembers Of HEERA ISPAT LIMITED on the standalone financial statements for the yearended 31st March 2017.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
1. We have audited the internal financial controls over financial reporting of HEERAISPAT LIMITED ("the Company") as of March 31 2017 in conjunction with our auditof the financial statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
2. 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 (the "Guidance Note").These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.
3. 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 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.
4. Our audit involves performing procedures to obtain evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Out audit 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 procedureselected depends on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
5. 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.
Cleaning of Internal Financial Controls over Financial Reporting
6. A Company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of 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 details 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 authorities 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.
Inherent Limitations of Internal Financial Controls over Financial Reporting
7. 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.
8. 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 March 31 2017 based on theinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India.
| ||For D J N V & CO |
| ||Chartered Accountants |
|Place: Ahmadabad ||FRN. NO :-115145W |
|Date : 30/05/2017 || |
| ||Devang Doctor |
| ||(Partner) |
| ||M.N:-39833 |
ANNEXURE TO THE AUDITOR'S REPORT
The Annexure referred to in our report to the members of HEERA ISPAT LIMITED forthe year ended on 31st March 2017 we report that:
(1) The company has no fixed assets thus the clause 3(I) (a) (b) and (c) are notapplicable to the company.
(2) As explained to us the company has not been engaged during the year in anyactivity which involves inventory hence verification of stock and other related mattersare not applicable.
(3) According to the information and explanation given to us and on the basis of ourexamination of books of account the company has not granted any loans secured orunsecured to the parties covered in the register maintained U/s 189 of the companies act2013. Accordingly clause (III) (a)(b) and (c) of the order are not applicable.
(4) According to the information and explanation given to us the Company has notgranted any loans or made any investments or provided any guarantees or security to theparties covered under Section 185 and 186 of the Act. Accordingly the provisions of Clause3(iv) of the order are not applicable to the company
(5) According to the information and explanation given to us and on the basis of ourexamination of books of account the company has not accepted deposits hence thedirectives issued by the Reserve Bank of India and the provisions of sections 73 to 76 orany other relevant provisions of the Companies Act 2013 and the rules framed there underare not applicable
(6) The central government has not prescribed the maintenance of cost records undersection 148(1) of the Act in respect of any of the company's products and hence clause VIof CARO 2016 is not applicable.
(7) (a) According to the records of the company undisputed statutory dues includingprovident fund income tax service tax value added tax cess excise duty and othermaterial statutory dues have been regularly deposited during the year by the Company withthe appropriate authorities. As explained to us the Company did not have any dues onaccount of employees' state insurance & custom duty. According to the information andexplanations given to us no undisputed amounts payable in respect of the aforesaid dueswere outstanding as at 31 March 2017 for a period of more than six months from the datethey became payable.
(b) According to the information and explanations given to us there are no materialdues of income tax or sales tax or service tax or duty of customs or duty of excise orvalue added tax which have not been deposited with the appropriate authorities on accountof any dispute.
(8) The company has neither taken any loans or borrowing from a financial institutionbank Government nor has issued debentures.
(9) The company has not raised any moneys by way of initial public offer furtherpublic offer (including debt instruments) and term loans. Accordingly the provision ofClause 3(ix) of the order are not applicable to the company.
(10) During the course of our examination of the books and records of the companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanation given to us we have neither come across anyinstances of material fraud by the company by its officers or employees noticed orreported during the year nor we have been informed of any such case by the management.
(11) According to the information provided managerial remuneration has been paid inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act 2013.
(12) The company is not declared as Nidhi Company moreover the company does notfunction on the lines of Nidhi company hence the said clause of the Order is notapplicable.
(13) As per the information and explanation provided the company has not entered intoany transactions with the related parties that require approval under section 177 and 188of Companies Act 2013 and the rules thereunder. Hence clause (xiii) of the order is notapplicable.
(14) The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review and hence theclause XIV is not applicable.
(15) The company has not entered into any non-cash transactions with directors orpersons connected with him and hence the provisions of section 192 of Companies Act 2013are not applicable
(16) The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Hence this clause is not applicable.
|For DJNV & CO. || |
|Chartered Accountants || |
|Firm Regn. No. 115145W || |
|Devang Doctor ||Place : Ahmedabad |
|(Partner) ||Date : 30/05/2017 |
|M. No. 039833 || |