HITKARI INDUSTRIES LIMITED
ANNUAL REPORT 2006-2007
The Members of
Hitkari Industries Limited New Delhi
1. We have audited the attached Balance Sheet of HITKARI INDUSTRIES
LIMITED. as at 31st March, 2007, and the Profit and Loss Account for the
year ended on that date annexed thereto. These financial statements are the
responsibility of the company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued by
the Central Government of India in terms of sub-section (4A) of section 227
of the Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to above, we report
i. We have obtained all the information and explanations, which to the best
of our knowledge and belief were necessary for the purposes of our audit;
ii. In our opinion, proper books of account as required by law have been
kept by the company so far as appears from our examination of those books;
iii. File Balance Sheet and Profit & Loss Account dealt with by this report
are in agreement with the books of account;
iv. In our opinion, the Balance Sheet and the Profit & Loss Account dealt
with by this report comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Companies act, 1956:
v. On the basis of written representations received from the Directors, as
on 31st March, 2007 and taken on record by the Board of Directors. We
report that none of the director is disqualified as on 31st March, 2007
from being appointed as a director in terms of clause (g) of sub-section(1)
of section 274of the Companies Act, 1956;
vi. In our opinion and to the best of our information and according to the
explanations given to us, the said accounts read together with notes
thereon give the information required by the Companies, Act, 1956, in the
manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
a) In the case of the Balance Sheet, of the state of affairs of the Company
as at 31st March, 2007;
b) In the case of the Profit and Loss Account, of the loss for the year
ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flow for the year
ended on that date.
For S.R. Kapur & CO
Place : New Delhi Partner
Dated : 29th August, 2007 Membership No. 089480
Annexure referred in paragraph 3 of Auditor's Report to the Members of
HITKARI INDUSTRIES LIMITED on the accounts for the year ended on 31st
i) a) The company has maintained proper records showing full particulars
including quantitative details end situation of fixed assets.
b) All the assets have been physically verified by the management during
tile year which, in our opinion, is reasonable having regard to the size of
the company and the nature of its assets. No material discrepancies were
noticed on such verification.
c) In our opinion and according the information and explanations given to
us no substantial part of fixed assets of the company have been disposed
off during the year.
ii) a) The inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is reasonable.
b) The procedures of physical verification of inventories followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and the
book records were not material.
iii) a) The company has not granted loans,secured or unsecured to
companies, firms and other parties covered in the register maintained under
section 301 of the Companies Act, 1956, hence clause 4 (iii) (b)(c) & (d)
of the Companies (Auditors' Report) order 2003 is not applicable.
b) The company has taken loans, unsecured front companies, firms or other
parties covered in the register maintained under section 301 of the
Companies Act, 1956 front two number of parties and the maximum amount
involved in the transactions as well as on 31st March, 2007 is Rs. 169.03
c) The loans are free of interest and other terms and conditions of loans
taken by the company, are prima facie not prejudicial to the interest of
d) The payment of the principal amount is regular wherever stipulated.
IV) In our opinion and according to the information and explanations given
to us, there is adequate internal control system commensurate with the size
of the company and the nature of its business for the purchase of inventory
& fixed assets and for to sale of goods. During the course of our audit, we
have not observed any continuing failure to correct major weaknesses in
internal control system.
v) a) According to the information and explanations given to us, we are of
the opinion that the particulars of contracts and arrangements referred to
section 301 of the Companies Act, 1956 have been entered into the register
maintained under that section.
b) According to the information and explanations given to us, these
contracts or arrangements have been made at price which are reasonable
having regards to the prevailing market prices at the relevant time.
vi) According to the information and explanations given to us, the company
has not accepted deposits covered under section 58A & 58AA and other
relevant provisions of the Companies Act, 1956.
vii) In our opinion, the company has an internal audit system commensurate
with the size and nature of its business.
viii) According to the information and explanations given to us the Central
Government has not prescribed tile maintenance of cost records under
section 209 (1)(d) of the Companies Act, 1956 for the nature of business of
ix) (a) According to information and explanations given to us there were no
undisputed statutory dues including provident fund, investor education
protection fund, employees state insurance, income tax, sales tax, wealth
tax, service tax, custom duty, excise duty, cess and other material
statutory dues, as applicable, which were requires( to be deposited & were
in arrears as on 31st March, 2007 for a period of more than six months from
the date the same became payable.
(b) In our opinion and according to the information and explanations given
to us, there are no dues in respect of the above except for sales tax which
has not been deposited with the appropriate authorities on account of
dispute and the forum where the dispute is pending are given below:
Name of Nature of Dues Amount Period Forum where
Statute dispute is
Delhi Sales- Sales-tax 14,583
tax Act, 1975 2004-05 Deputy
CST Act, 60,893 Commissioner
x) The Company has no accumulated losses as at the end of the financial
year and has not incurred cash losses in the current financial year and in
the immediately preceding financial year.
xi) The Company has not defaulted in repayment of any dues to financial
institutions or banks. No amount has been borrowed against debentures.
xii) The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures, and other securities.
xiii) The company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore, the provisions of clause 4(xiii) of the Companies
(Auditor's Report) order, 2003 are not applicable to the company.
xiv) The company is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of clause
4(xiv) of the Companies (Auditor's Report) order, 2003 are not applicable
to the company.
xv) According to the information and explanations given to us the company
has not given any guarantee for loans taken by others from banks or
xvi) On the basis of review of utilisation of funds on an overall basis, in
our opinion, the term loans taken by the company were applied for the
purpose for which the loans were obtained.
xvii) According to the information and explanations given to us and on an
overall examination of the balance sheet of the company, we report that no
funds raised on short-terns basis have prima facie been used for long-term
xviii) The company has not during the year made preferential allotment of
shares to parties and companies covered in the register maintained under
section 301 of the Companies Act, 1956.
xix) The Company has not issued debentures during the year, hence the
question of creation of security or charge in respect of debentures issued
does not arise.
xx) The company has not raised money through public issue during the year.
xxi) To the best of our knowledge and belief and according to the
information and explanations given to, us, no fraud on or by the company
has been noticed or reported during the year.
For S.R. Kapur & Co
Place : New Delhi Partner
Dated : 29th August, 2007 Membership No.: 089480