THE MEMBERS OF HIMALCHULI FOOD PRODUCTS LTD
Report on the Financial Statements
We have audited the accompanying financial statements of HIMALCHULI FOOD PRODUCTSLTD ("the Company") which comprise the Balance Sheet as at March 31 2017and the Statement of Profit and Loss and Cash Flow Statement for the year then ended anda summary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Management and Board of Directors of the Company are responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under section 133 of the Act read with rule 7 of Companies (Accounts) Rules2014. This responsibility includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgements and estimates that are reasonable andprudent; design implementation and maintenance of adequate internal financial controlthat are 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 accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.
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 control relevant to the Company's preparation and fair presentation ofthe financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by management and Board of Directors aswell as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner 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 atMarch 31 2017;
(b) in the case of the Profit and Loss Account of the Loss for the year ended on thatdate; and
(c) in the case of the Cash Flow Statement the cash flows for the year ended on thatdate.
Emphasis of Matter
The company has huge accumulated losses at the end of the year. Further the company isnot engaged in trading and manufacturing activities during the year and has financialinstability being short term loan payables. The ability of company to continue as a goingconcern is dependent upon the results of the management measures to meet the contingenciesand implementation of those measures its future profitability and its financialviability on which we are unable to express any opinion presently.
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 Act we give in the Annexure A a statement on the matters specified in paragraph 3 and4 of the Order.
2. As required by section 143(3) of the Act we report that:
a. We have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit;
b. In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books;
c. The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;
d. In our opinion the aforesaid financial statements comply with the AccountingStandards referred to in section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
e. On the basis of written representations received from the directors as on March 312017 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 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 over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B" and
g. In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014:
I. The Company does not have any pending litigations which would impact its financialposition
II. The company does not have any long-term contracts including derivative contracts;as such the question of commenting on any material foreseeable losses does not arise.
III. There has not been an occasion in case of the company during the year under reportto transfer any sums to the investor Education and Protection Fund. The question of delayin transferring such sums does not arise.
IV. The company has provided requisite disclosures in financial statement as dealingsto specified Bank Notes during the period from 8 November 2016 to 30 December 2016 andthese are in accordance with the books of accounts maintained by the company. Refer tonote 14 to the financial statement.
C. S. JARIWALA & CO
FRN - 114906W
(ANUJ C. JARIWALA - PARTNER)
Membership No. 109919
Date: 30 May 2017 Place: Surat
Annexure-A to the Auditors' Report
Annexure referred to in above paragraph of our report of even date to the members ofCompany on the accounts of the Company for the year ended 31st March 2017.
1. FIXED ASSETS :
a) As explained to us there is no fixed assets of the company hence question ofmaintaining quantitative details and situation of fixed assets and physical verificationby management at reasonable frequency during the year does not arise.
2. INVENTORIES :
a) As explained to us there is no inventory during the year; hence the question ofphysically verification by the management at reasonable frequency during the year does notarise.
3. In respect of loan secured or unsecured granted by the company to / fromcompanies firms or other parties covered in the register maintained under section 189 ofthe companies Act 2013 :
The following are the particulars of loans given by the company;
|Sr. No. Name of Party ||Relation with Company ||Amount Rs. ||Year End Balance Rs. |
The Company has not granted any Loan during the Year
| || || || |
4. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and section 186 of the Act withrespect to the loans and investments made.
5. The company has accepted deposits in nature of current account transaction loan fromshareholders and directors and friends of the directors during the period andconsequently to that extent the provisions of section 73 to 76 of the Companies Act2013 and rules framed there under are in our opinion applicable.
6. The central government has not prescribed maintenance of cost records under Section148(1) of the Companies Act 2013.
7. IN RESPECT OF STATUTORY DUES :
a) According to the informations and explanations given to us and based on the recordsof the company examined by us the company is regular in depositing the undisputedstatutory dues including Provident Fund Employees' State Insurance Income Tax Sales -Tax Wealth Tax Service Tax Custom Duty Excise Duty and other material statutory asapplicable with the appropriate authorities in India. Further to added that In ouropinion and according to the records of the company the company has no liabilities ofProvident Fund & ESI.
b) According to the informations and explanations given to us and based on the recordsof the company examined by us there are no dues of income Tax Wealth Tax Service TaxSales Tax Customs Duty and Excise Duty which have not been deposited on account of anydisputes.
c) There has not been on occasion in case of the company during the year under reportto transfer any sums to the Investor Education and Protection Fund. The question ofreporting delay in transferring such sums does not arise.
8. According to the records of the Company examined by us and as per the informationand explanations given to us the company has not availed of any loans from financialinstitutions or banks and has not issued debentures. Accordingly paragraph 3(viii) of theOrder is not applicable.
9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) and terms loans during the year. Accordingly paragraph3(ix) of the Order is not applicable.
10. According to the information and explanation given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.
11. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not paid/provided formanagerial remuneration. Accordingly the provisions of section 197 read with Schedule V ofthe Act are not applicable.
12. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable.
13. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.
14. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.
15. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.
16. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
For and on behalf of C. S. JARIWALA & CO
Chartered Accountants FRN - 114906W
ANUJ C. JARIWALA - PARTNER
Membership No. 109919
Date: 30 May 2017