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Hira Automobile Ltd.

BSE: 531743 Sector: Others
NSE: N.A. ISIN Code: INE258Z01013
BSE 05:30 | 01 Jan Hira Automobile Ltd
NSE 05:30 | 01 Jan Hira Automobile Ltd

Hira Automobile Ltd. (HIRAAUTOMOBILE) - Auditors Report

Company auditors report

To

The Members of

Hira Automobiles Ltd

1. Report on the standalone Ind AS financial statements:

We have audited the accompanying Ind AS financial statements of Hira AutomobilesLimited ( “the Company “) which comprise the Balance Sheet as at March 312018 the statement of Profit and

Loss (including other comprehensive income) the statement of Cash Flow and statementof change in equity for the year then ended and a summary of the significant accountingpolicies and other explanatory information annexed there to ( herein after referred to as“standalone Ind AS financial statements ”) . These standalone Ind AS financialstatements are the responsibility of the management of the company. Our responsibility isto express an opinion on these standalone Ind AS financial statements based on our audit.

2. Management‘s responsibility for the stand alone Ind AS 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 Ind AS financial statements that give a true and fair view of thefinancial position financial performance cash flows and statement of change in equity ofthe Company in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) prescribed under Section 133 of theAct. This responsible also 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 judgments and estimates that are reasonable andprudent; and the design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

3. Auditor’s responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit. While conducting the audit we have taken into account theprovisions of the Act the accounting and auditing standards and matters which arerequired to be included in the audit report under the provisions of the Act and the Rulesmade thereunder.

We conducted our audit of standalone Ind AS financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the consolidated standalone Ind AS financial statementsare free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor’s judgment including the assessment of the risks of materialmisstatement of the consolidated standalone Ind AS financial statements whether due tofraud or error. In making those risk assessments the auditor considers internal financialcontrol relevant to the

Company’s preparation of the standalone Ind AS financial statements that give atrue and fair view in order to design audit procedures that are appropriate in thecircumstances.

An audit also includes evaluating the appropriateness of the accounting policies usedand the reasonableness of the accounting estimates made by the Company’s Board ofDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

We believe that the audit evidence obtained by us and by the other auditors in terms oftheir reports referred to in the Other Matters paragraph below is sufficient andappropriate to provide a basis for our audit opinion on the consolidated standalone Ind ASfinancial statements.

4. Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us and based on the consideration of reports of other auditors the aforesaidstandalone Ind AS 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 of the state of affairs of the Company as at March31 2018 and its profit total comprehensive income its cash flows and the change inequity for the year ended on that date.

5. Other Matters

The comparative financial information of the company for the year ended 31 March 2017and the transition date opening balance sheet as at 1st April 2016 includes inthese standalone Ind AS financial statement prepared in accordance with the Companies (Accounting Standards ) Rules 2006 audited by us and other auditors in past whose reportfor the year ended 31 March 2017 and 31 March 2016 dated 30 May 2017 and 30 May 2016respectively expressed an unmodified opinion on those standalone financial statement asadjusted for the differences in accounting principles adopted by the Company on transitionto Ind AS which have been audited by us. Our opinion on standalone Ind AS financialstatements and our report on other Legal and Regulatory Requirements below is not modifierin respect of these matters.

6. Report on other Legal and Regulatory requirements

I. As required by the Companies (Auditor’s Report) Order 2016 issued by theCentral Government of India in terms of section 143(11) of the act (“the order”)and on the basis of such checks of the books and records of the Company as we consideredappropriate and according to the information and explanation given to us we give theAnnexure A a statement on the matter specified in the paragraph 3 and 4 of the order.

II. As required by Section 143(3) of the Act we report to the extent applicablethat:

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 relating to preparationof the aforesaid standalone Ind AS financial statements have been kept so far as itappears from our examination of those books and the reports of the other auditors.

c) The balance sheet the statement profit and loss (including other comprehensiveincome ) the statement Cash Flow and the statement of change in equity dealt with by thisReport are in agreement with the relevant books of account;

d) In our opinion the aforesaid standalone Ind AS financial statements comply with theAccounting Standards prescribed under Section 133 of the Act.

e) On the basis of the written representations received from the directors of theCompany as on March 31 2018 taken on record by the Board of Directors of the Companynone of the directors of these entities is disqualified as on March 31 2018 from beingappointed as a director in terms of 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”.

g) With respect to other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Auditor’s Report) Order 2016 (“theOrder”) in our opinion and the best of our information and according to informationgiven to us.

i. The company has disclosed the impact of pending litigation on financial position inits standalone Ind AS financial statements;

ii. The company did not give any long term contracts including derivatives contractshaving any material foreseeable losses and iii. There has been no delay in transferringamounts required to be transferred to the Investor Education and Protection Fund by theCompany.

For Mohan Juneja & Co.

Chartered Accountants

Firm Registration No.020488N

CA Mohan Juneja

Proprietor

Membership Number 099825

Chandigarh 30 May 2018

Annexure A to the Independent Auditor’s Report

Annexure referred to in paragraph 6(I) under “Report on other Legal and Regulatoryrequirements” of our report of even date to the members of the Company on thestandalone Ind AS financial statements 3 of our report of even date

1. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets at Corporate Office and in the processof maintaining at outlets. We have been informed that the fixed assets of the company havebeen physically verified by the management at reason able intervals and no materialdiscrepancies were notice done such verification. However as informed Discrepanciesnoticed on such verification which are not material have been properly dealt with inbooks of accounts. According to information and explanation given to us the title deedsof immovable properties are held in the name of the Company.

2. As informed to us physical verification of inventory of the company has beenconducted by the management at reasonable intervals during the year.

In our opinion and according to the explanations given to us the procedures ofPhysical verification of inventory followed by the management are reasonable and adequatein relation to the size of the company and the nature of its business. In our opinion andaccording to the explanations given to us the Company is maintaining proper records ofinventory. We have been informed that no material discrepancies have been notice donephysical verification as compared to records.

3. According to the information and explanation given to us the Company has granted/advanced inter corporate deposits amounting to Rs. Nil covered in the register maintainedunder section 189 of the Companies Act 2013.

4. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the Companies Act2013 in respect of grant of loans making investments and providing guarantees andsecurities.

5. According to the information and explanation given to us the Company has n o taccepted deposits from public. Advances from customers for sale of vehicles and againstsale promotion schemes run by the Company to promote its sale are received and paid in theordinary course of business.

6. The maintenance of cost records under section 148(1) of the Companies Act 2013 hasnot been prescribed by the Central government for the Company since it is notmanufacturing Company.

7. According to the information and explanations given to us the u n d i s p u t e d st a t u t o r y d u e s including provident fund investor education and protection fundemployees state insurance income tax sales tax wealth tax custom duty excise dutycess and any other statutory due as applicable have generally been regularly depositedwith appropriate authority except delay in few cases.

According to the information and explanations given to us there are no disputed amountpayables in respect of provident fund investor education and protection fund employeesstate insurance income tax sales tax wealth tax custom duty excise duty cess by theCompany.

The disputed amount various statutory dues which have not been deposited are as Under:

Name of the Statute Nature of the dues Rs. In lakhs Period to which the amount relate Forum where dispute is pending
Vat ACT 2005 Vat Interest & Penalty 9.80 2007-08 Sales Tax PTA
Vat ACT 2005 Vat Interest & Penalty 12.37 2006-07 Sales Tax PTA

8. No amount was lying with the company which was required to be transferred toinvestor education and protection fund in accordance with the relevant provisions of theCompanies Act 1956 (1 of 1956) and rules made there under.

9. According to the records of the Company examined by us and the information andexplanations given to us the Company has not defaulted in repayment of loans orborrowings to financial institutions banks and governments.

10. The company has no accumulated losses at the end of the financial year and it hasnot incurred cash losses in current and immediately preceding financial year.

11. In our opinion and according to information and explanation given to us theCompany has not raised any money by way of initial public offer or further public offer(including debt instruments).

12. During the course of our examination of books and records of the company carriedout in accordance with generally accepted audit practice in India and according to theinformation and explanation given to us we have neither come across any instance ofmaterial fraud by the company or on the Company by its officers or employees noticed orreported during the year nor have been informed any such case by the Management.

13. According to the records of the Company examined by us and information andexplanations given to us the Company has paid/ provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith schedule V to the act.

14. In our opinion and according to the information and explanation given to us theCompany is not a

NIdhi company and the Nidhi Rules 2014 are not applicable to it.

15. According to the information and explanation given to us and based upon ourexamination of the records of the Company transaction with the related parties are incompliance with section 177 and 188 of the Act and details of the such transactions havebeen disclosed in the standalone Ind AS financial statements are required by theapplicable Indian Accounting Standards.

16. According to the records of the Company examined by us and information andexplanations given to us the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debenture during the year.

17. According to the records of the Company examined by us and information andexplanations given to us the Company has not entered into non cash transactions withdirectors or persons connected with him.

18. The Company is not required to be registered under section 45-IA of Reserve Bank ofIndia Act

1934.

19. Based on the audit procedures performed for the purpose of reporting the true andfair view of the standalone Ind AS financial statements and as per the information andexplanation given by the management were port that no fraud by the company has beennoticed or reported during the course of our audit.

For Mohan Juneja & Co.

Chartered Accountants

Firm Registration No.020488N

CA Mohan Juneja

Proprietor

Membership number 099825

Chandigarh 30 May 2018

Annexure A to the Independent Auditor’s Report

(Referred to in paragraph (f) under 'Report on Other Legal and Regulatory Requirements'section of our report of even date)

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 HiraAutomobiles Limited incorporated in India as at March 31 2018 in conjunction with ouraudit of the standalone Ind AS financial statements of the company for the year ended andas on that date.

Management's Responsibility for Internal Financial Controls

The respective Board of Directors of the Company incorporated in India are responsiblefor establishing and maintaining internal financial controls based on the respectiveinternal 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 (the 'Guidance Note').These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to the respective company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

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 Standards on Auditing prescribed under Section143 (10) of the Act and theGuidance Note to the extent applicable to an audit of internal financial controls overfinancial reporting. Those Standards and the Guidance Note require that we comply with theethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over reporting was established and maintainedand if such controls operated effectively in all material respects. Our audit involvesperforming procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditors' judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained and the audit evidence obtained bythe other auditor (if any)of the company incorporated in India in terms of their reportsreferred to in the other Matter paragraph below is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial 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 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 corn pang; (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.

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 control over financialreporting may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

For Mohan Juneja & Co.

Chartered Accountants

Firm Registration No.020488N

CA Mohan Juneja

Proprietor

Membership number 099825

Chandigarh 30 May 2018