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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
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Hira Automobile Ltd. (HIRAAUTOMOBILE) - Auditors Report

Company auditors report

To the Members of M/s. Hira Automobiles Limited

Report on the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of Hira Automobiles Limited (the Company) which comprise the balance sheet as at 31st March 2019 and the statement of Profit and Loss statement of changes in equity and statement of cash flows for the year then ended and notes to the financial statements including a summary of significant accounting policies and other explanatory information (hereinafter referred to as the standalone financial statements)

In our opinion and to the best of our information and according to the explanations given to us the aforesaid standalone financial statements give the information required by the Companies Act 2013 in the manner so required and give a true and fair view in conformity with ( Indian Accounting Standards prescribed under section 133 of the Act read with Companies ( Indian Accounting Standards) Rule 2015 as amended ( Ind AS) and other accounting principles generally accepted in India of the state of affairs of the Company as at March 31 2019 and profit/loss changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Companies Act 2013. Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act 2013 and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole and in forming our opinion thereon and we do not provide a separate opinion on these matters.

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 other information. The other information comprises the information included in the Management Discussion and Analysis Board's Report including Annexure to Board's report Business Responsibility Report Corporate Governance and Shareholder's information but does not include the standalone financial statements and our auditor's report thereon.

Our opinion on the standalone financial statements does not covered the other information and we do not express any form of assurance conclusion thereupon.

In connection with our audit of the standalone financial statements our responsibility is to read the other information and in doing so consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we concluded that there is a material misstatement of their information we are required to report that fact. We have nothing 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 section 134(5) of the Companies Act 2013 (the Act) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position financial performance changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India including the Ind AS and other accounting policies generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate implementation and maintenance of accounting policies; making judgments and estimates that are reasonable and prudent; and design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records relevant to the preparation and presentation of the financial statement that give a true and fair view and are free from material misstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing the Company's ability to continue as a going concern disclosing as applicable matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations or has no realistic alternative but to do so. The Board of Directors are also responsible for overseeing 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 financial statements as a whole are free from material misstatement whether due to fraud or error and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if individually or in the aggregate they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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 sub-section (11) of section 143 of the Companies Act 2013 we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.

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 best 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 the Company so far as it appears from our examination of those books [and proper returns adequate for the purposes of our audit have been received from the branches not visited by us.

c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the relevant books of account.

d) In our opinion the aforesaid standalone financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31st March 2019 taken on record by the Board of Directors none of the directors is disqualified as on 31st March 2019 from being appointed as a director in terms of Section 164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls refer to our separate Report in Annexure A.

g) In our and to the best of our information and according to the explanations given to us the remuneration paid by the company to its directors during the year is in accordance with the provisions of section 197 of the Act.

h) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and 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 financial position in its financial statements. Further explained by the management there no such major litigations are pending which would impact its financial position.

ii. The Company has made provision as required under the applicable law or Indian Accounting Standards for material foreseeable losses if any on long-term contracts including derivative contracts.

iii. There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the Company. However it is informed and explained to us that there were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

For Mohan Juneja & Co.
Chartered Accountants
Firm Registration No.020488N
CA Mohan Juneja
Proprietor
Membership Number 099825
Chandigarh 30 May 2019

Annexure A to the Independent Auditor's Report

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

1. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets at Corporate Office and in the process of maintaining at outlets.

We have been informed that the fixed assets of the company have been physically verified by the management at reasonable intervals and no material discrepancies were noticed on such verification. However as informed Discrepancies noticed on such verification which are not material have been properly dealt with in books of accounts.

According to information and explanation given to us the title deeds of immovable properties are held in the name of the Company.

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

In our opinion and according to the explanations given to us the procedures of Physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

In our opinion and according to the explanations given to us the Company is maintaining proper records of inventory. We have been informed that no material discrepancies have been noticed on physical 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 maintained under section 189 of the Companies Act2013.

4. In our opinion and according to the information and explanations given to us the Company has complied with the provisions of Sections 185 and 186 of the Companies Act 2013 in respect of grant of loans making investments and providing guarantees and securities.

5. According to the information and explanation given to us the Company has not accepted deposits from public. Advances from customers for sale of vehicles and against sale promotion schemes run by the Company to promote its sale are received and paid in the ordinary course of business.

6. The maintenance of cost records under section 148(1) of the Companies Act 2013 has not been prescribed by the Central government for the Company since it is not manufacturing Company.

7. According to the information and explanations given to us the undisputed statutory dues including provident fund investor education and protection fund employees state insurance income tax sales tax wealth tax custom duty excise duty cess and any other statutory due as applicable have generally been regularly deposited with appropriate authority except delay in few cases.

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

Name of the Nature of the Statute duesRs. In lakhsPeriod to which the amount relateForum where dispute is pending
Vat ACT 2005 Vat Interest & Penalty9.802007-08Sales Tax PTA
Vat ACT 2005 Vat Interest & Penalty12.372006-07Sales Tax PTA

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

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

10. The company has no accumulated losses at the end of the financial year and it has not incurred cash losses in current and immediately preceding financial year.

11. In our opinion and according to information and explanation given to us the Company 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 carried out in accordance with generally accepted audit practice in India and according to the information and explanation given to us we have neither come across any instance of material fraud by the company or on the Company by its officers or employees noticed or reported 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 and explanations given to us the Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V to the act.

14. In our opinion and according to the information and explanation given to us the Company 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 our examination of the records of the Company transaction with the related parties are in compliance with section 177 and 188 of the Act and details of the such transactions have been disclosed in the standalone Ind AS financial statements are required by the applicable Indian Accounting Standards. Further refer to Notes 34 .

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

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

18. The Company is not required to be registered under section 45-IA of Reserve Bank of India Act 1934.

19. Based on the audit procedures performed for the purpose of reporting the true and fair view of the standalone Ind AS financial statements and as per the information and explanation given by the management we report that no fraud by the company has been noticed 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 2019

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) of Sub-section 3 of Section 143 of the Companies Act 2013 ('the Act')

We have audited the internal financial controls over financial reporting of Hira Automobiles Limited incorporated in India as at March 31 2019 in conjunction with our audit of the standalone Ind AS financial statements of the company for the year ended and as on that date.

Management's Responsibility for Internal Financial Controls

The respective Board of Directors of the Company incorporated in India are responsible for establishing and maintaining internal financial controls based on the respective internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (the 'Guidance Note').These responsibilities include the design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business including adherence to the respective company's policies the safeguarding of its assets the prevention and detection of frauds and errors the accuracy and completeness of the accounting records and the timely preparation of reliable financial information as required under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Standards on Auditing prescribed under Section143(10) of the Act and the Guidance Note to the extent applicable to an audit of internal financial controls over financial reporting. Those Standards and the Guidance Note require that we comply with the ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over reporting was established and maintained and if such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors' judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditor ( if any)of the company incorporated in India in terms of their reports referred to in the other Matter paragraph below is sufficient and appropriate to provide a basis for our audit opinion on the Company's internal financial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles A company's internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the corn pang; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition use or disposition of the company'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 financial reporting including the possibility of collusion or improper management override of controls material misstatements due to error or fraud may occur and not be detected. Also projections of any evaluation of the internal financial control over financial reporting may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations given to us the Company incorporated in India have in all material respects an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31 2019 based on the internal control over financial reporting criteria established by the Company in India considering the essential components of internal control stated in the Guidance Note issued by the ICAI.

For Mohan Juneja & Co.

Chartered Accountants

Firm Registration No.020488N

CA Mohan Juneja

Proprietor

Membership number 099825

Chandigarh 30 May 2019

   

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