| We have audited the accompanying financial statements of Hipolin
Limited ("the Company"), which comprise the Balance Sheet as at 31st
March , 2015, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended and a summary of the 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 section 134(5) of the companies Act 2013 ("the Act") with respect to
the preparation of these financial statements that give a true and fair
view of the financial position, financial performance and cash flows of
the Company in accordance with the Accounting principles generally
accepted in India including Accounting Standards specified under
section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for
safeguarding the assets of the Company and for preventing and detecting
frauds and other irregularities; selection and application of
appropriate 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 statements that give true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the Accounting and Auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those Standards require
that we comply with the ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers the internal control relevant to the
Company's preparation of the financial statements that give a true and
fair view in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on
whether the company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Management, as well as evaluating
the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act 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, 2015;
b) in the case of the Statement of Profit and Loss, of the loss of the
Company for the year ended on that date, and
c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub section (11) of section 143 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 3 and 4 of the
Order, to the extent applicable.
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 best of our knowledge 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 the Company 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 Statement dealt with by this Report are in agreement with the
books of account;
d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards 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 31st March, 2015 taken on record by the Board of
Directors, none of the Directors is disqualified as on 31st March,
2015, from being appointed as a Director in terms of section 164 (2) of
the Act; and.
f) 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 - Refer Note 29 to the
financial statement;
II The Company did not have any long term contracts including
derivative contracts for which there were any material foreseeable
losses;
III There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company during the year ended on 31st March 2015.
Annexure to Independent Auditors' Report
Annexure referred to in our Independent Auditors' Report to the members
of Hipolin Limited (the company) on the financial statements for the
year ended 31st March, 2015. We report that:
1. In respect of its Fixed Assets:
a. The company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets;
b. As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner which in our
opinion is reasonable, having regard to the size of the Company and
nature of its assets. No material discrepancies were noticed on such
physical verification;
2. In respect of inventories:
a. Physical verification of inventory has been conducted at reasonable
intervals by the management;
b. 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;
c. The company is maintaining proper records of inventory. As
explained to us, there was no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. The company has not granted any loans to companies, firms or other
parties covered in the register maintained under section 189 of the
Companies Act, 2013.
4. In our opinion and according to the information and explanations
given to us, there is an 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 the sale of goods. During
the course of audit, we have not observed any major weaknesses in
internal control system.
5 The company has not accepted any deposit from the public.
6 We have broadly reviewed the books of account maintained by the
company in respect of products where, pursuant to the Rules made by the
Central Government of India, maintenance of cost records has been
prescribed under sub-section (1) of section 148 of the Companies Act
2013 and are of the opinion that prima facie, the prescribed accounts
and records have been made and maintained. We have not, however, made a
detailed examination of the records with a view to determine whether
they are accurate and complete.
7 According to the information and explanations given to us in respect
of statutory and other dues:
a. According to the information and explanations given to us and on the
basis of our examination of the records of the Company, amounts
deducted/ accrued in the books of account in respect of undisputed
statutory dues including provident fund, employees state insurance,
income tax, sales tax, wealth tax, service tax, duty of customs, duty
of excise, value added tax, cess and other material statutory dues have
been regularly deposited during the year by the Company with the
appropriate authorities.
According to the information and explanation given to us, no undisputed
amounts payable in respect of provident fund, employees state
insurance, income tax, sales tax, wealth tax, service tax, duty of
customs, duty of excise, value added tax, cess and other material
statutory dues were in arrears as at 31 March 2015 for a period of more
than six months from the date they became payable.
b. According to the information and explanations given to us, there
are no material dues of provident fund, employees state insurance,
sales tax, wealth tax, service tax, duty of customs, value added tax,
cess which have not been deposited with the appropriate authorities on
account of any dispute. However, according to information and
explanations given to us, the following dues of income tax, have not
been deposited by the Company on account of disputes;
Sr. Name of Nature of Period to
No. the Statute Dues which amount
relates (F.Y.)
1 Income Income Tax 2011-12
Tax Act, 1961 and interest
Sr. Name of Forum where Amount
No. the Statute dispute is (in Rs.)
pending
1 Income Commissioner 42,69,220
Tax Act, 1961 of Income Tax
(Appeal)
Total 42,69,220
c. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company during the year ended on 31st March 2015.
8 The Company has incurred loss of Rs.34,16,078 during the financial
year 2014-15.
9 The company has not defaulted in the repayment of term loan from
bank. The company did not have any outstanding dues to financial
institution or debenture holders during the year.
10 In our opinion and according to the information and explanations
given to us, the company has not given any guarantee for loans taken by
others from bank or financial institutions.
11 According to the information and explanations given to us, term
loans availed by the Company were, prima facie, applied by the company
for the purpose for which they were raised.
12 According to the information and explanations given to us, during
financial year no fraud on or by the company has been noticed or
reported during the course of our audit.
Date : May 28, 2015 For Harish S. Patel & Co.
Place : Ahmedabad Chartered Accountants
(Firm Reg. No.103551W)
Harish S. Patel
Proprietor
Membership No. No.:8497
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