Hindustan Motors
BSE: 500500 | NSE: HINDMOTOR | ISIN: INE253A01017 | Auto - Cars & Jeeps
- Directors Report
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- Auditors Report
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| Auditor's Report | Year End : Mar '09 |
1. We have audited the attached Balance Sheet of HINDUSTAN MOTORS
LIMITED (‘the Company’) as at March 31, 2009 and also the Profit and
Loss Account and the Cash Flow Statement 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 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 (as
amended) 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 that:
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 such
books and proper returns adequate for the purposes of our audit have
been received from the Company’s overseas branch not visited by us;
iii. The Balance Sheet, Profit & Loss Account and Cash Flow Statement
referred to in this report are in agreement with the books of account
as submitted to us;
iv. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement 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 the written representations received from the
directors, as on March 31, 2009, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31, 2009 from being appointed as a director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956.
5. In our opinion and to the best of our information and according to
the explanations given to us, the said statements of accounts, read
together with the Notes appearing on Schedule 22, 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 March 31, 2009;
b) in the case of the Profit and Loss Account, of the loss of the
Company for the year ended on that date; and
c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure to the Auditors Report
(Referred to in our Report of even date to the members of Hindustan
Motors Limited as at and for the Year ended March 31, 2009)
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All fixed assets have not been physically verified by the
management during the year but there is a regular programme of such
verification in a phased manner to cover all the items over a period of
three years which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. In respect of fixed
assets lying with third parties, the management has a process of
obtaining confirmations. As informed, no material discrepancies were
noticed on such verification during the year.
(c) There was no substantial disposal of fixed assets during the year.
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year.
(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. In respect of the material
lying with third parties, the management has a process of
reconciliation & confirmations from the third parties during the year.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
(iii) As informed, the Company has not granted any loans, secured or
unsecured to companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956. Therefore, the
provisions of clauses 4 (iii) (a) to (d) of the Companies (Auditor’s
Report) Order, 2003 (as amended) are not applicable.
As informed, the Company has not taken any loans, secured or unsecured
from companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956. Therefore, the
provisions of clauses 4 (iii) (e) to (g) of the Order are not
applicable.
(iv) In our opinion and according to the information and explanations
given to us, and having regard to the explanation that some of the
items purchased are of a special nature and alternate sources do not
exist for obtaining quotations thereof, 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 and fixed assets and for
the sale of goods and services. During the course of our audit, no
major weakness has been noticed in the internal control system in
respect of these areas.
(v) (a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in Section 301 of the Act that need to be
entered into the register maintained under Section 301 have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding value of Rupees five lakhs entered into during
the financial year, are at prices which are reasonable having regard to
the prevailing market prices at the relevant time.
(vi) As informed, the Company has not accepted any deposits from the
public.
(vii) The Company has an internal audit system which, in our opinion,
is commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under Section 209(1)(d) of the Companies
Act, 1956, and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained.
(ix) (a) The Company has been regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education and protection fund, employees’ state insurance,
income- tax, sales-tax, wealth-tax, service tax, customs duty, excise
duty, cess and other material statutory dues with the appropriate
authorities applicable to it though there had been slight delays in few
cases.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees’ state insurance, income-tax,
wealth-tax, service tax, sales-tax, customs duty, excise duty, cess and
other statutory dues were outstanding, at the Balance Sheet date, for a
period of more than six months from the date they became payable.
(c) According to the records of the Company, the dues outstanding of
income-tax, sales-tax, wealth-tax, service tax, customs duty, excise
duty and cess on account of any dispute, are as follows:
Name of the Nature of Dues Amount
Statute (Rs. in lacs)
The Central Disputes on account of 1477.00
Excise Act, Classification, CENVAT Credit,
1944 Assessable value, Differential
Excise Duty, etc.
The Central Disallowance of Waiver on 5820.59
Sales Act, turnover availed on car sales
1956 due to non-achievement of
Bench- Mark, Stock Transfer,
Non-submission of C Forms, etc.
Tamil Nadu Disallowance of Waiver on 1322.84
Sales Tax turnover availed on car sales
Act, 1959 due to non-achievement of
Bench- Mark, Additional
Sales Tax, etc.
West Bengal Non-Receipt of Sales Tax 5.05
Sales Tax Form, Interest, Penalty,
Act, 1994 Post Return Adjustment etc.
The Customs Disputes on account of: 31.67
Act, 1956 Classification, Duty on
inclusion of technical know-how
fees on imported goods, import
of Engines, Short Levy, etc.
Period to Forum where dispute is pending
which the
amount
relates
1984-2006 Assistant/Deputy/Additional
Commissioner, Commissioner,
Commissioner (Appeals) and
Appellate Tribunal
1989-2004 Deputy/Additional Commissioner,
Appellate Deputy Commissioner,
Tribunal Benches and Supreme
Court
1993-2003 Tribunal Bench and
Supreme Court
2003-2005 West Bengal Commercial Taxes
Appellate & Revision Board,
Additional Commissioner
1990-2006 Assistant/ Deputy Commissioner,
Commissioner Appeals &
Appellate Tribunal
(x) The Companys accumulated losses at the end of the financial year
are less than fifty per cent of its net worth. The Company has incurred
cash loss in the current financial year. However it had not incurred
cash loss in the immediately preceding financial year.
(xi) Based on our audit procedures and as per the information and
explanations given by the management, the Company has defaulted in
repayment of dues to financial institutions and banks during the year,
the details whereof are as follows:- Period of Default Amount (Rs in
lacs) Less than 30 days 1411.05 30 to 90 days 1790.21
(xii) According to the information and explanations given to us and
based on the documents and records produced to us, 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 (as amended)
are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable.
(xv) 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.
(xvi) Based on the information and explanations furnished to us by the
management, term loans 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 and cash flow of the
Company, we report that short term fund worth Rs. 5045.80 lacs has been
used for financing the losses of the Company amounting to Rs 5045.80
lacs.
(xviii) The Company has not made any preferential allotment of shares
to parties or companies covered in the register maintained under
Section 301 of the Companies Act, 1956.
(xix) The Company did not have any outstanding debentures during the
year.
(xx) The Company has not raised any money through a public issue during
the year.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the course of our audit.
S. R. Batliboi & Company
Chartered Accountants
Place : New Delhi Per Raj Agrawal
May 13, 2009 Partner
Membership No. 82028 |
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| Source : Religare Technova | |
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