| We have audited the accompanying financial statements of HRB
FLORICULTURE LIMITED which comprise the Balance Sheet as at March 31,
2014, and the Statement of Profit and Loss and Cash Flow Statement for
the year then ended and a summary of significant accounting policies
and other explanatory information.
Managements Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance of the Company in accordance with the Accounting
Standards notified under the Companies Act, 1956 ("the Act") read with
the general circular 15/2013 dated 13th September, 2013 of the Ministry
of Corporate Affairs in respect of section 133 of the companies Act,
2013. This responsibility includes the design, implementation and
maintenance of internal control relevant to the preparation and
presentation of the financial statements that give a 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 conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
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 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 internal control relevant to the Company's preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity's
internal control. An audit also includes evaluating the appropriateness
of accounting Policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the over
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.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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 March 31, 2014; and
b in the case of the Statement of Profit and Loss, of the LOSS for the
year ended on that date; and C in the case of the Cash Flow Statement,
of the cash flows for the year ended on that date.
Report an Other Legal and Regulatory Requirements
1 As required by the Companies (Auditors' Report) Order, 2003 ("the
Order') issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure, a
statement on the matters specified In paragraphs 4 and 5 of the Order.
2 As required by section 227(3) of the Act, we report that:
a. We have 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 accounts as required by law have
been kept by the company so far as appears from our examination of the
books of accounts;
c. The Balance Sheet and Statement of Profit and Loss and Cash Flow
Statement dealt with by this report am in agreement with the books of
accounts;
d. In our opinion, the Balance Sheet and Statement of Profit and Loss,
comply with the Accounting Standards notified under the Companies Act,
1956 ("the Act") read with the general circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs in respect of
section 133 of the companies Act, 2013.
e. On the basis of written representation received from the directors
as on 31st March, 2014, we report that none of the directors of the
company are disqualified as on 31st March 2014 from being appointed as
a director under clause (g) of Sub-Section (1) of Section 274 of the
Companies Act, 1956;
Annexure To Auditor's Report
(Referred to in paragraph 3 of the Auditors' Report of even date)
i. a. The company has maintained proper records showing hill
particulars including quantitative details and situation of fixed
assets,
b. All the assets have been physically verified by the management
during the year. There is .a regular programme of verification which,
in our opinion, is reasonable having regard to the site of the company
and the nature of its assets. No material discrepancies were noticed on
such verification.
c. According to the information and explanations given to us, during
the year, the company has not disposed off any substantial part of
fixed assets that would effect the going concern status of the company
ii a. The inventory held in tangible form has been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable.
b. The procedure of physical verification of inventories followed by
the management is 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 any loans, secured or unsecured to
companies, firm or other parties covered in 'the register maintained
under section 301 of the Act except Rs. 13840000 has been granted as
advance to erstwhile subsidiary company . The maximum balance for the
year was Rs. 13840000/- and the yearend balance is Nil,- .
b. The rate of interest and other terms and conditions of loan given to
subsidiary company is prima facie not prejudicial to the interest of
the company
c. The receipt of principal and interest, if any, is regular wherever
stipulated.
d. There is no overdue amount of more than rupees one lac.
e. As the company has not taken any loans, secured or 'unsecured
to/from companies, firm or other parties covered in the register
maintained under section 301 of the Act and therefore we have no
comments under clause (iii) (e)(f)(g) of the Order.
iv In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal controls.
v. a. According to the information and explanations given to us, we are
of the opinion that the particulars of contract or arrangements
referred to in Section 301 of the Act has been entered in the register
required to maintained under that section.
b. In our opinion, and according to the information and explanations
given to us, the transactions made during the year in pursuance of
contracts or arrangements entered in 'the, register maintained under
section 301 of the Companies Act, 1956 have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
vi In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits to which the
provisions of sections 58A, 58AA or any other relevant provisions of
the Companies Act, 1956.. No order has been passed by the Company Law
Board or National Company Law Tribunal or Reserve Bank of India or any
court or any tribunal in this regard.
vii The company's internal audit system commensurate with the size and
nature of its business.
viii As explained to us, the maintenance of cost records under section
209 (1) (d) of the Companies Act, 1956 has not been prescribed by the
Central Government for the Company.
ix a. The company is regular in depositing with appropriate authorities
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 applicable to it.
b. According to information and explanations given to us, there are no
arrears of outstanding statutory dues as at the last day of the
financial year concerned fora period of more than six months from the
date they became payable.
c. According to the information and explanations given to us, there are
no dues of income tax, wealth tax, service tax, customs duty, excise
duty and cess which has not been deposited on account of any dispute.
In our opinion, the company is accumulated losses as at March 31, 2014
are less than fifty percent of its net worth. The company has incurred
cash losses during the financial year covered by our audit and in the
immediately preceding financial year.
xi In our opinion and according to the information and explanation
given to us, the company does not have any dues to a financial
institution and bank. The company has not issued any 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 In our opinion, 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 In our opinion, in respect of dealing or trading in shares and
securities, the company has maintained proper records of transactions
and contract and timely entries have been made therein. The shares and
securities held by the company as on 31st March 2014 are in its own
name.
As explained the company has not given guarantees for loans taken by
others from banks or financial institutions.
xvi According: to explanations and information given to us, no term
loans have raised by the company during the year.
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 the no funds raised on short -term basis have been used for long
-term investment.
xviii According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Act.
xix According to the information and explanations given to us, during
the period covered by our audit report, the company had not issued any
debentures
xx No money was raised by the company during the year from the public
issues.
xxi According to the information and explanations given to us, no fraud
on or by the company has been noticed or reported during the course of
our audit.
For B. KHOSLA & CO.
Chartered Accountants
FRN: 000205C
SANDEEP MUNDRA
Partner
M. No. 075482
JAIPUR
May 30, 2014
|