Auditor Report of Hindustan Composites Ltd.
Mar 31, 2023
Hindustan Composites Limited
Report on the Audit of Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of Hindustan Composites Limited (âthe Companyâ), which comprises of Balance Sheet as at March 31,2023, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flow for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information.
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 (the Act) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under Section 133 of the Act read with Companies (Indian Accounting Standards) Rules, 2015, as amended, (âInd ASâ) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2023, its profit (including other comprehensive income), 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 (SAs) specified under section 143(10) of the Act. Our responsibilities underthose 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 (ICAI) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made 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 obtained by in terms of their report referred to in the other matters section below, is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current year. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
|
Key Audit Matters |
How our audit addressed the key audit matters |
|
Classification, Valuation and Impairment of unquoted equity instruments /debt Investments: The Company''s -substantial assets are investments and unquoted equity/debt Instruments consist of 34.66% of total amount of investments held as on March 31,2023. As disclosed in Note no. 3 and 8, as at March 31,2023 the Company has unquoted equity/debt Investments of Rs. 27,966.89 Lakhs. These Investments are classified and measured at Fair value through profit or loss /fair value through other comprehensive income. Due to their unique structure and terms which involve |
We focused on valuation of these instruments/investments and have carried out the following key audit procedures: Understood the Company''s process and procedures and tested controls to ensure proper classification and valuation/ impairment of investments. Tested recording of investments on sample basis and verified classification of investments. Assessed valuation of these investments to examine whether the same is in accordance with the Company''s accounting policies. Tested impairment/provision of investments (including reversal) In respect of unlisted and other than actively traded investments, we evaluated the Company''s valuation methodology and |
|
the use of judgmental assumptions in valuation/impairment and not on quoted prices in active markets. . Therefore, there is significant measurement uncertainty involved in this valuation/impairment. As a result, the valuation/impairment of these instruments was significant to our audit. |
assumptions and corroborated these with internal Investment policies including those related to impairment. For any changes in ratings of the investee company, we examined the Company''s assessment with the internal Investment policies for reclassification and valuation. Also obtained external evidence of existence of investment by getting holding statement from the custodian /statement from the fund houses as well through publicly available filings from time to time We have also perused the relevant internal audit reports on investments. Based on the work carried out, we did not come across any significant matter which suggests that the investments were not properly classified or valued. |
Information Other than the Standalone Financial Statements and Auditor''s report thereon
The Company''s Board of Directors is responsible for the preparation of other information. The Other information comprises the information included in the Board''s Report including Annexures to the Board report, Business responsibility report, Corporate Governance report and Management Discussion and Analysis, but does not include the standalone financial statement and our auditor''s report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
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 conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and those charged with Governance for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of 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 (including other comprehensive income), changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the accounting Standards specified under Section 133 of the Act.
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 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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, the 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 Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements 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 standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial control system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the entity to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that individually or in aggregate makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Our opinion on the standalone financial statement and our report on the other legal and regulatory requirements below is not modified in respect of this matter.
The opening balances and comparative standalone financial information of the Company for the year ended March 31,2022 has been audited by the predecessor auditor who has expressed an unmodified opinion on those financial statements vide their report dated May 26, 2022 and opening balances have been considered based on such audited standalone financial statements.
Our opinion on the standalone financial statements is not modified in respect of the above matter.
Report on Other Legal and Regulatory Requirements
1. Pursuant to the Companies (Auditor''s Report) Order, 2020 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the Annexure âA" a statement on the matters specified in paragraphs 3 and 4 of the Order.
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 purposes of ouraudit.
(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 records.
(c) The Balance sheet, the Statement of Profit & Loss (including other comprehensive income), Statement of Changes in Equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Account) Rules, 2014.
(e) On the basis of the written representation received from the directors as on March 31, 2023, taken on records by the Board of Directors, none of the directors are disqualified as on March 31,2023 from being appointed as a Directors 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 ourseparate Report in Annexure âBâ.
(g) In our opinion 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(16) of the Act.
(h) With respect to the matters to be included in the Auditor''s report in accordance with the 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 standalone financial statements. [Refer note no 33 to standalone financial statements]
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.
iv. a) The management has represented that, to the best of their knowledge and belief, no funds (which are
material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries. [Refer note no. 53(e) to standalone financial statements]
b) The management has represented, that, to the best of their knowledge and belief, no funds (which are
material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries. [Refer note no. 53(f) to standalone financial statements]
c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representation under sub clause (i) and (ii) of Rule 11(e) of The Companies (Audit and Auditors) Rules, 2014, as provided under (a) and (b) above, contains any material misstatement.
V. a) The final dividend paid by the Company during the year declared for the previous year is in accordance with Section 123 of the Act to the extent it applies to payment of dividend.
b) The Board of Directors of the Company has proposed final dividend forthe financial year 2022-23 which is subject to the approval of the Members at the ensuing annual general meeting. The dividend recommended by the Board is in accordance with Section 123 of the Act to the extent it applies to the recommendation of dividend [Refer note no. 46(b) to standalone financial statements].
Firm Registration No. - 301051E Chartered Accountants
Partner
Place: Mumbai Membership No. 044101
Date: May 26, 2023 UDIN: 23044101BGTSHP5846
Mar 31, 2018
INDEPENDENT AUDITORSâ REPORT
TO THE MEMBERS OF HINDUSTAN COMPOSITES LIMITED Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of HINDUSTAN COMPOSITES LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2018 and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flows, the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as âStandalone Ind AS Financial Statementsâ).
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the state of affairs (financial position), profit or loss (financial performance including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act and relevant rules there under.
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 standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorsâ Responsibility
Our responsibility is to express an opinion on these standalone Ind AS 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 the Rules made there under.
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the Auditorsâ judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS 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 standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS 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, including the Ind AS, of the state of affairs (financial position) of the Company as at 31st March, 2018 and its profit (financial performance including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Other Matters
Opening balances have been considered based on the audited financial statements issued by the other auditors whose un-qualified audit report dated 23rd May, 2017 have been furnished to us.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditorsâ Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the âAnnexure Aâ a statement on the matters specified in paragraph 3 and 4 of the Order.
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.
(c) The Balance Sheet, the Statement of Profit and Loss (Including Other Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Ind AS prescribed under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on 31st March, 2018 and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 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 âAnnexure Bâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
(g) With respect to other matter to be included in the Auditor''s Report in accordance with the 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 standalone Ind AS financial statements- Refer Note No. 30(b) to the standalone Ind AS financial statements.
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.
ANNEXURE REFERRED TO IN PARAGRAPH âREPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTSâ OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF THE HINDUSTAN COMPOSITES LIMITED ON STANDALONE IND AS FINANCIAL STATEMENTS
On the basis of such checks as we considered appropriate and according to the information and explanations given to us during the course of our audit, we state that:
i) 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.
c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
ii) According to the information and explanations given to us, the inventories have been physically verified during the year by the management at reasonable intervals and no material discrepancies were noticed on such verification.
iii) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Act. Accordingly, the provisions of clause 3(iii) of the Order are not applicable to the Company.
iv) In our opinion and according to the information and explanations given to us, the Company has not entered into any transactions referred in section 185 of the Act. The Company has complied with the provisions of 186 of the Act with respect to the loans and investments made.
v) No deposits within the meaning of directives issued by RBI (Reserve Bank of India) and Sections 73 to 76 or any other relevant provisions of the Act and rules framed there under have been accepted by the Company.
vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government of India, regarding the maintenance of cost records under sub-section (1) of Section 148 of the Act and are of the opinion that prima facie, the prescribed accounts and records have been maintained. We have, however, not made a detailed examination of the records with a view to determine whether they are accurate or complete.
vii) a) According to the information and explanations given to us and on the basis of our examination of the records, the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Employeesâ State Insurance, Income Tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess, Goods and Service taxes and other material statutory dues applicable to the Company with the appropriate authorities. No undisputed amounts in respect of the aforesaid statutory dues were outstanding as at the last day of the financial year for a period of more than six months from the date they became payable.
b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, there are no dues of Income Tax, Sales Tax, Service tax, Duty of Customs, Duty of Excise and Value Add Tax which have not been deposited on account of any dispute except the following:
|
Assessment Year |
Nature of Dues |
Amount in '' |
Forum where the dispute is pending |
|
2010-11 |
Sales Tax |
6,98,863 |
Sales Tax Tribunal, Mumbai |
|
2013-14 |
Sales Tax |
2,37,037 |
Sales Tax Tribunal, Mumbai |
viii) In our opinion and according to the information and explanations given to us, during the year, the Company has not defaulted in repayment of loans to banks and non-banking finance company. The Company has not taken any loans from financial institutions or debenture holders.
ix) The Company has not raised any money by way of initial public offer or further public offer (including debt instruments) during the year or in the recent past and has taken term loans which were applied for the purpose for which the loans were obtained.
x) According to the information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
xi) According to the information and explanations given to us and based on the examination of the records, 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.
xii) The provisions of Nidhi Company are not applicable to the Company. Therefore, Para 3 (xii) of the Order is not applicable to the Company.
xiii) According to the information and explanations given to us, the provision of Section 177 and 188 of Act, to the extent applicable, in respect of transactions with the related parties have been complied by the Company and the details have been disclosed in the Ind AS Financial Statements as required by the applicable accounting standards in Note No. 44 to the Ind AS Financial Statements.
xiv) During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures. Therefore, Para 3 (xiv) of the Order is not applicable to the Company.
xv) According to the information and explanations given to us, during the year, the Company has not entered into any non-cash transactions with directors or persons connected with him under Section 192 of the Act.
xvi) The Company is not required to be registered under Section 45 IA of the Reserve Bank of India Act, 1934.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of HINDUSTAN COMPOSITES LIMITED (âthe Companyâ) as of 31st March, 2018 in conjunction with our audit of the Standalone Ind AS Financial Statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the 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 (âICAIâ). 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 companyâs 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.
Auditorsâ 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 Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing issued by ICAI and deemed to be prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial 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 Auditorsâ judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs 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 company; (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 controls over financial reporting to future periods are subject to the risk that 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, the Company has broadly, 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 31st March, 2018, based on the 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.
For Bagaria & Co. LLP
Chartered Accountants
Firm Registration No: 113447W/W-100019
Arun Bagaria
Place: Mumbai Partner
Date : 8th May, 2018 Membership No. 036732
Mar 31, 2017
To The Members of Hindustan Composites Limited Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of HINDUSTAN COMPOSITES LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2017, and the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the state of affairs(financial position), profit or loss (financial performance including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act.
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 standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS 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 the Rules made there under.
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS 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 standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS 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 including the Ind AS, of the state of affairs (financial position) of the Company as at 31st March, 2017, and its profit (financial performance including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
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 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.
c) The Balance Sheet, the Statement of Profit and Loss, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.
e) On the basis of the written representations received from the directors as on 31st March, 2017 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2017 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 âAnnexure Bâ.
g) With respect to the other matters to be included in the Auditorâs 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 standalone Ind AS financial statements- Refer Note No. 31 to standalone Ind AS financial statements.
II. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
III. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
IV. The Company has provided requisite disclosures in the financial statements as to holding as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016, on the basis of information available with the Company. Based on audit procedures, and relying upon managementâs representation, we report that disclosures are in accordance with the books of accounts maintained by the Company and as produced to us by the management. Refer Note- 48
ANNEXURE REFERRED TO IN PARAGRAPH âREPORT ON OTHER LEGAL AND REGUALTORY REQUIREMENTSâ OF OUR REPORT TO THE MEMBERS OF HINDUSTAN COMPOSITES LIMITED FOR THE YEAR ENDED 31st MARCH, 2017
On the basis of such checks as we considered appropriate and according to the information and explanations given to us during the course of our audit, we state that:
1. a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b) All the fixed assets have been physically verified by the management in a phased manner over a period of three years which is reasonable considering the size of the Company and nature of its fixed assets. No material discrepancies were noticed on such verification.
c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
2. The inventory has been physically verified by the management at reasonable intervals during the year and no material discrepancies were noticed on such physical verification.
3. During the year, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability partnerships or other parties covered in the register maintained under section 189 of the Act. Therefore, Para 3 (iii) of the Companies (Auditorâs Report) Order 2016 is not applicable to the Company.
4. In our opinion and according to the information and explanations given to us, the Company has not entered into any transactions referred in section 185 of the Act. The Company has complied with the provisions of 186 of the Act with respect to the loans and investments made.
5. No deposits within the meaning of directives issued by RBI (Reserve Bank of India) and Sections 73 to 76 or any other relevant provisions of the Act and rules framed there under have been accepted by the Company. Therefore, Para 3 (v) of the Companies (Auditorâs Report) Order 2016 is not applicable to the Company.
6. We have broadly reviewed the cost records maintained by the Company pursuant to the order of the Central Government under sub section (1) of Section 148 of the Act and are of the opinion that, prima facie, the prescribed records have been made and maintained. We are, however, not required to make a detailed examination of the records with a view to determine whether they are accurate or complete.
7. a) The Company is generally regular in depositing undisputed statutory dues including provident fund, employees'' state
insurance, income tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and any other material statutory dues applicable to the Company with the appropriate authorities. No undisputed amounts payable in respect of the aforesaid statutory dues were outstanding as at the last day of the financial year for a period of more than six months from the date they became payable.
b) According to the records of the Company, there are no dues of income tax or sales tax or service tax or duty of customs or duty of excise or value added tax which have not been deposited on account of any dispute except the following:
|
Assessment Year |
Nature of Dues |
Amount in Rs. |
Forum where the dispute is pending |
|
2010-11 |
Sales Tax |
6,98,863 |
Sales Tax Tribunal, Mumbai |
8. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of any loan or borrowing to a financial institution and banks.
9. The Company has not raised any money by way of initial public offer or further public offer (including debt instruments) during the year or in the recent past and has taken term loans which were applied for the purpose for which the loans were obtained.
10. According to the information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
11. According to the information and explanations given to us and based on our examination of the records of the Company, 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.
12. In our opinion, the Company is not Nidhi Company. Therefore, Para 3 (xii) of the Companies (Auditorâs Report) Order 2016 is not applicable to the Company.
13. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements (Refer Note No. 46) as required by the applicable accounting standards.
14. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
15. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him in terms of Section 192 of the Act. Accordingly, paragraph 3(xv) of the Order is not applicable.
16. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Act
We have audited the internal financial controls over financial reporting of Hindustan Composites Limited (âthe Companyâ) as of 31 March 2017 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the 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 (âICAIâ). 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 companyâs 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.
Auditorsâ 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 Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial 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 auditorâs 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 is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs 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 company; (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 controls over financial reporting to future periods are subject to the risk that 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, the Company has, 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 31 March 2017, based on the 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.
For LODHA & CO.
Chartered Accountants
Firm Registration No: 301051E
R. P. Baradiya
Place: Mumbai Partner
Date : 23rd May, 2017 Membership No. 44101
Mar 31, 2015
We have audited the accompanying standalone financial statements of
Hindustan Composites Limited ("the Company"), which comprise the
Balance Sheet as at 31st March, 2015, the Statement of Profit and Loss,
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 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 and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the 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 a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
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 the 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 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 internal financial 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 the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, 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 standalone
financial statements.
Opinion
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 Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its profit and its cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
(i) As required by the Companies (Auditor's Report) Order, 2015 issued
by the Central Government of India in terms of Section 143 (11) of the
Companies Act, 2013 (hereinafter referred to as "the Act"), we enclose
in the Annexure a statement on the matters specified in paragraphs 3
and 4 of the said Order.
(ii) 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.
(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 standalone 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.
(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
26 to the financial statements;
(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
ANNEXURE REFERRED TO IN PARAGRAPH "REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS" OF OUR REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS AS
AT AND FOR THE YEAR ENDED 31st MARCH, 2015 OF HINDUSTAN COMPOSITES
LIMITED:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All the fixed assets have been physically verified by the
management in a phased manner over a period of three years which is
reasonable considering the size and nature of its business. No material
discrepancies were noticed on such verification.
(ii) (a) The inventory has been physically verified by the management
at reasonable intervals during the year. Inventory lying with third
parties and in-transit have been verified by the management with
reference to the confirmations received from them and/or subsequent
receipt of goods.
(b) The procedures for physical verification of the 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
book records were not material considering the operations of the
Company and have been properly dealt with in the books of accounts.
(iii) According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured, to companies,
firms or other parties covered in the register maintained under Section
189 of the Act.
(iv) In our opinion and according to the information and explanations
given to us, having regard to the explanation that some of the items of
fixed assets are of special nature and suitable alternative source may
not always exist for obtaining comparable quotations, there is an
adequate internal control system commensurate with the size of the
Company and the nature of its business with regard to the purchase of
inventory and fixed assets and for the sale of goods. During the course
of our audit, we have not observed any major weakness or continuing
failure to correct any major weakness in the internal control system of
the Company in respect of these areas.
(v) No deposits within the meaning of directives issued by the Reserve
Bank of India and Sections 73 to 76 or any other provisions of the
Companies Act, 2013 and rules framed thereunder have been accepted by
the Company.
(vi) We have broadly reviewed the cost records maintained by the
Company pursuant to the order of the Central Government under sub
section (1) of Section 148 of the Act and are of the opinion that,
prima facie, the prescribed records have been made and maintained. We
are, however, not required to make a detailed examination of the
records with a view to determine whether they are accurate or complete.
(vii) (a) The Company is generally regular in depositing undisputed
statutory dues, including Provident Fund, employee's state
insurance, income tax, sales tax, wealth tax, sales tax, service tax,
Duty of customs, Duty of excise, value added tax, Cess and other
material statutory dues applicable to the Company with the appropriate
authorities during the year. There were no undisputed amount payable on
account of the above dues, outstanding as on 31st March, 2015 for a
period of more than six months from the date they became payable.
(b) According to information and explanation given to us, there are no
dues of income tax, sales tax, wealth tax, service tax, Duty of customs
or Duty of Excise or value added tax or Cess, during the year which
have not been deposited on account of any disputes except the
following:
Assessment year Nature of Dues Amount in Rs. Forum where dispute
is pending
2012-13 Income Tax 10,54,323 CIT Appeals, Mumbai
2003-04 Sales Tax 4,11,763 Sales tax Tribunal,
Mumbai
2004-05 Sales Tax 2,37,112 Sales tax Tribunal,
Kolkata
2010-11 Sales Tax 6,98,863 Sales tax Appeals,
Mumbai
(c) There are no amounts required to be transferred, to the investor
Education and Protection Fund by the Company in accordance with the
relevant provisions of the Companies Act, 1956 and rules made
thereunder.
(viii) The Company has no accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the
financial year and in the immediately preceding financial year.
(ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks.
(x) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions.
(xi) Based on the information and explanations given to us by the
management, term loans were applied for the purpose for which the loans
were obtained.
(xii) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing standards in India and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
For LODHA & COMPANY
Chartered Accountants
Firm Registration No - 301051E
(R. P. Baradiya)
Partner
Membership No: 44101
Place: Mumbai
Date: 7th May, 2015
Mar 31, 2014
We have audited the accompanying financial statements of Hindustan
Composites Limited (''the Company'') which comprise the Balance Sheet as
at 31st March, 2014, Statement of Profit and Loss and the Cash Flow
Statement of the Company for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management''s 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 and cash flows 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 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 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 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.
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 31st March, 2014;
(b) in the case of Statement of Profit and Loss, of the profit of the
Company for the year then 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 on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), as amended, 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 account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d) in our opinion, the Balance Sheet, Statement of Proof and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956 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; and
e) on the basis of written representations received from the directors
as on 31st March, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE REFERRED TO IN PARAGRAPH "REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS" OF OUR REPORT TO THE MEMBERS OF HINDUSTAN COMPOSITES
LIMITED (''THE COMPANY'') FOR THE YEAR ENDED 31ST MARCH, 2014.
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
audit, we state that:
(i) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. There is a
phased programme of physical verification of all fixed assets over a
period of three years, based on which physical verification of certain
fixed assets was carried out during the year which, in our opinion, is
reasonable considering the size of the Company and nature of its fixed
assets. The discrepancies noticed on such physical verification were not
material and the same have been properly dealt with in the books of
account. No substantial part of fixed assets was disposed off during the
year.
(ii) a) The inventory has been physically verified by the management at
reasonable intervals during the year. Inventory lying with third
parties and in - transit is being verified by the management with
reference to confirmations or statements of account or subsequent
receipt of goods.
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 nature of its business.
c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification of inventory between the physical
stock and book records were not material and have been properly dealt
with in the books of account.
(iii) (a) During the year, the Company has given unsecured loan to one
company, covered in the register maintained under Section 301 of the
Act. The maximum amount outstanding during the year was Rs. 502 lacs and
the year end balance is NIL. The rate of interest and other terms and
conditions of loan given, prima facie, are not prejudicial to the
interest of the Company.
(b) The Company has not taken any unsecured loan from a Company covered
in the register maintained under Section 301 of the Act.
(iv) In our opinion and explanations given to us, having regard to the
explanation that some of the items purchased / sold are of special
nature and suitable alternative sources do not exist for obtaining
comparable quotations, there is an adequate internal control system
commensurate with the size of the Company and the nature of its
business for the purchase of inventories and fxed assets and for the
sale of goods. During the course of our audit, no major weaknesses have
been noticed in the internal control system.
(v) To the best of our knowledge and belief and according to the
information and explanation given to us, there were no contracts or
agreements that need to be entered in the register maintained under
Section 301 of the Act. Accordingly, the provisions of clause 4(v) (b)
of the order are not applicable to the company.
(vi) The Company has not accepted any deposits within the meaning of
Section 58A, 58AA or any other relevant provisions of the Act and Rules
framed there under.
(vii) The Company has an internal audit system commensurate with the
size of the company and nature of its business.
(viii) We have broadly reviewed the cost records 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 Act in
respect of Automotive parts and are of the opinion that, prima facie,
the prescribed records have been made and maintained. However, we are
not required to make a detailed examination of the records with a view
to determine whether they are accurate or complete.
(ix) a) According to the information and explanations given to us and
according to the books and records as produced and examined by us, the
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 as applicable have been generally regularly
deposited by the Company during the year with the appropriate
authorities and there were no arrears as at 31st March, 2014 for a
period of more than six months from the date they became payable.
b) According to the records of the Company and the information and
explanations given to us by the management, there are no dues of Sales
tax/ Income tax/ Excise duty/ Wealth tax/ Custom duty/ Cess which have
not been deposited on account of disputes except :
NAME OF THE NATURE OF
DUES AMOUNT PERIOD TO FORUM WHERE
STATUTES (IN LACS) WHICH AMOUNT DISPUTED
RELATES
Income Tax
Act, Income
tax 4.66 2010-11
(A.Y.) C.I.T. (Appeals),
Mumbai.
1961
Income Tax
Act, Income
tax 1.12 2006-07
(A.Y.) C.I.T. (Appeals),
Mumbai.
1961
Central
Sales
Tax Sales
tax 0.37 2004-05 Appellate Tribunal,
Kolkata.
Act, 1956
Central
Sales
Tax Sales
tax 4.12 2003-04 Appellate Tribunal,
Mumbai.
Act, 1956
Central
Sales
Tax Sales
tax 2.00 2004-05 Joint Commissioner
of Sales
Act, 1956 Tax (Appeal), Nagpur.
(x) The Company does not have accumulated losses as at 31st March, 2014
and has not incurred a cash loss during the financial year ended on that
date. The Company had not incurred cash loss in the immediate preceding
financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks.
(xii) In respect of loans granted on the basis of security by way of
pledge of shares, debentures and other securities, the Company has
maintained adequate documents and records.
(xiii) In our opinion, the Company is not a chit fund or a nidhi
/mutual benefit fund / society. Therefore, clause 4(xiii) of the
Companies (Auditor''s Report) Order 2003 is not applicable to the
Company.
(xiv) In our opinion, during the year, the Company is not a dealer or
trader in shares, securities, debentures and other investments.
(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 financial institutions.
(xvi) According to the information and explanations given to us, the
term loans were applied for the purposes 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 fow statement of
the Company, in our opinion, the funds raised on short-term basis have,
prima facie, not been used for long-term investment.
(xviii) During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under Section 301 of the Act.
(xix) The Company has not issued any debentures during the year or in
the recent past.
(xx) The Company has not raised any money by way of public issue during
the year or in the recent past.
(xxi) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practice in India and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
For LODHA & COMPANY
Chartered Accountants
ICAI Firm Registration
No 301051E
Place: Mumbai R. P. Baradiya
Date : 29th May, 2014 Partner
Membership No: 44101
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of HINDUSTAN
COMPOSITES LIMITED ("the Company"), which comprise the Balance Sheet
as at 31st March, 2013, 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 Management is responsible for 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 Standards referred to in sub-section
(3C) of section 211 of the Companies Act, 1956 ("the Act"). 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 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 and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. 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.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements, and the notes
accompanying 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 31st March, 2013;
(b) in the case of the Statement of Profit and Loss, of the profit 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, 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 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.
(c) The Balance Sheet, 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 Balance Sheet, Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
referred to in sub-section (3C) of section 211 of the Act.
(e) On the basis of the written representations received from the
directors as on 31st March, 2013 taken on record by the Board of
Directors, none of the directors are disqualified as on 31st March,
2013 from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Act.
ANNEXURE REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING "REPORT ON
OTHER LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE
TO THE MEMBERS OF THE HINDUSTAN COMPOSITES LIMITED
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
audit, we state that:
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. There is
a phased programme of physical verification of all fixed assets over a
period of three years, based on which physical verification of certain
fixed assets was carried out during the year which, in our opinion, is
reasonable considering the size of the Company and nature of its fixed
assets. The discrepancies noticed on such physical verification were
not material and the same have been properly dealt with in the books of
account. No substantial part of fixed assets was disposed off during
the year.
2. a) The inventory has been physically verified by the management at
reasonable intervals during the year. Inventory lying with third
parties and in - transit is being verified by the management with
reference to confirmations or statements of account or subsequent
receipt of goods.
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 nature of its business.
c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification of inventory between the physical
stock and book records were not material and have been properly dealt
with in the books of account.
3. (a) During the year, the Company has given unsecured loan to one
company, covered in the register maintained under Section 301 of the
Act. The maximum amount outstanding during the year was Rs. 725 lacs
and the year end balance is Rs. 502 lacs. The rate of interest and
other terms and conditions of loan given, prima facie, are not
prejudicial to the interest of the Company.
(b) The Company has not taken any unsecured loan from a Company covered
in the register maintained under Section 301 of the Act.
4. In our opinion and explanations given to us, having regard to the
explanation that some of the items purchased / sold are of special
nature and suitable alternative sources do not exist for obtaining
comparable quotations, there is an adequate internal control system
commensurate with the size of the Company and the nature of its
business for the purchase of inventories and fixed assets and for the
sale of goods. During the course of our audit, no major weaknesses have
been noticed in the internal control system.
5. (a) According to the information and explanations given to us, we
are of the opinion that particulars of contracts or arrangements that
need to be entered in the register maintained under section 301 of the
Act have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions have been made in pursuance of contracts
or arrangements entered in the register maintained under section 301 of
the Act and exceeding Rs. five lacs or more in respect of any party
during the year, have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
6. The Company has not accepted any deposits within the meaning of
Section 58A, 58AA or any other relevant provisions of the Act and Rules
framed thereunder.
7. The Company has an internal audit system commensurate with the size
of the company and nature of its business.
8. We have broadly reviewed the cost records 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 Act in
respect of Automotive parts and are of the opinion that, prima facie,
the prescribed records have been made and maintained. However, we are
not required to make a detailed examination of the records with a view
to determine whether they are accurate or complete.
9. a) According to the information and explanations given to us and
according to the books and records as produced and examined by us, the
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 as applicable have been regularly deposited by
the Company during the year with the appropriate authorities and there
were no arrears as at 31st March, 2013 for a period of more than six
months from the date they became payable.
b) According to the records of the Company and the information and
explanations given to us by the management, there are no dues of Sales
tax/ Income tax/ Excise duty/ Wealth tax/ Custom duty/ Cess which have
not been deposited on account of disputes except :
Name of the Statutes Nature of Dues Amount
(Rs. in lacs)
Income Tax Act, 1961 Income tax 4.52
Central Sales Tax Act, 1956 Sales tax 2.37
Central Sales Tax Act, 1956 Sales tax 4.12
Central Sales Tax Act, 1956 Sales tax 9.44
Name of the Statutes Period to which Forum where Disputed
amount relates
Income Tax Act, 1961 2009-10 (A.Y.) C.I.T. (Appeals),
Mumbai.
Central Sales Tax Act, 1956 2004-05 Appellate Tribunal,
Kolkata.
Central Sales Tax Act, 1956 2003-04 Appellate Tribunal,
Mumbai.
Central Sales Tax Act, 1956 2001-02 & Joint Commissioner of
Sales Tax
2002-03 (Appeal), Nagpur.
10. The Company does not have accumulated losses as at 31st March,
2013 and has not incurred a cash loss during the financial year ended
on that date. The Company had not incurred cash loss in the immediate
preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks.
12. In respect of loans granted on the basis of security by way of
pledge of shares, debentures and other securities, the Company has
maintained adequate documents and records.
13. In our opinion, the Company is not a chit fund or a nidhi /mutual
benefit fund / society. Therefore, clause 4(xiii) of the Companies
(Auditor''s Report) Order 2003 is not applicable to the Company.
14. In our opinion, during the year, the Company is not a dealer or
trader in shares, securities, debentures and other investments.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. According to the information and explanations given to us, the
term loans were applied for the purposes for which the loans were
obtained.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet and cash flow statement of
the Company, in our opinion, the funds raised on short-term basis have,
prima facie, not been used for long-term investment.
18. During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under Section 301 of the Act.
19. The Company has not issued any debentures during the year or in
the recent past.
20. The Company has not raised any money by way of public issue during
the year or in the recent past.
21. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practice in India and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
For LODHA & COMPANY
CHARTERED ACCOUNTANTS
ICAI Firm Registration No: 301051E
A.M.HARIHARAN
Place : Mumbai PARTNER
Dated : 10th May, 2013 Membership No: 38323
Mar 31, 2012
1. We have audited the attached Balance Sheet of Hindustan Composites
Limited as at 31stMarch, 2012, the Profit & Loss Statement and also the
Cash Flow Statement of the Company 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 misstatements. 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 the 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 (hereinafter referred to as
the Act'), 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 in paragraph
(3) above, 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 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;
c) The Balance Sheet, the Profit & Loss Statement and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, the Profit & Loss Statement and
the Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in Section 211(3C) of the Act, to the
extent applicable;
e) On the basis of written representations received from the Directors,
as on 31stMarch, 2012 and taken on record by the Board of Directors, we
report that none of the Directors is disqualified as on 31st March,
2012 from being appointed as a Director in terms of Section 274 (1)(g)
of the Act;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements read
together with Significant Accounting Policies and accompanying notes
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 accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
ii) in the case of the Profit & Loss Statement, of the profit of the
Company for the year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF HINDUSTAN COMPOSITES LIMITED ON THE FINANCIAL STATEMENTS AS
AT AND FOR THE YEAR ENDED 31ST MARCH, 2012
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
audit, we state that:
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. There is
a phased programme of physical verification of all fixed assets over a
period of three years, based on which physical verification of certain
fixed assets was carried out during the year which, in our opinion, is
reasonable considering the size of the Company and nature of its fixed
assets. The discrepancies noticed on such physical verification were
not material and the same have been properly dealt with in the books of
account. No substantial part of fixed assets was disposed off during
the year.
2. a) The inventory has been physically verified by the management at
reasonable intervals during the year. Inventory lying with third
parties and in - transit is being verified by the management with
reference to confirmations or statements of account or subsequent
receipt of goods.
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 nature of its business.
c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification of inventory between the physical
stock and book records were not material and have been properly dealt
with in the books of account.
3. (a) During the year, the Company has given unsecured loan to four
companies, covered in the register maintained under Section 301 of the
Act. The maximum amount outstanding during the year was Rs. 985 lacs
and the year end balance is Rs. 125 lacs. The rate of interest and
other terms and conditions of loan given, prima facie, are not
prejudicial to the interest of the Company.
(b) The Company has not taken any unsecured loan from a Company covered
in the register maintained under Section 301 of the Act.
4. In our opinion and explanations given to us, having regard to the
explanation that some of the items purchased / sold are of special
nature and suitable alternative sources do not exist for obtaining
comparable quotations, there is an adequate internal control system
commensurate with the size of the Company and the nature of its
business for the purchase of inventories and fixed assets and for the
sale of goods. During the course of our audit, no major weaknesses have
been noticed in the internal control system.
5. (a) According to the information and explanations given to us, we
are of the opinion that particulars of contracts or arrangements that
need to be entered in the register maintained under section 301 of the
Act have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions have been made in pursuance of contracts
or arrangements entered in the register maintained under section 301 of
the Act and exceeding Rs. five lacs or more in respect of any party
during the year, have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
6. The Company has not accepted any deposits within the meaning of
Section 58A, 58AA or any other relevant provisions of the Act and Rules
framed thereunder.
7. The Company has an internal audit system commensurate with the size
of the company and nature of its business.
8. We have broadly reviewed the cost records 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 Act in respect of Automotive parts and are
of the opinion, that, prima facie, the prescribed records have been
made and maintained. However, we are not required to make a detailed
examination of the records with a view to determine whether they are
accurate or complete.
9. a) According to the information and explanations given to us and
according to the books and records as produced and examined by us, the
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 as applicable have generally been regularly
deposited by the Company during the year with the appropriate
authorities and there were no arrears as at 31st March, 2012 for a
period of more than six months from the date they became payable.
b) According to the records of the Company and the information and
explanations given to us by the management, there are no dues of Sales
tax/ Income tax/ Excise duty/ Wealth tax/ Custom duty/ Cess which have
not been deposited on account of disputes except:
Name of Nature Amount Period Forum
the of (Rs. in to which Where
Statutes Dues lacs) amount Disputed
relates
Income Income 4.00 2009-10 C.I.T.
Tax Act, tax (A.Y.) (Appeals),
1961 Mumbai.
Central Sales 9.20 2003-04 Joint
Sales Tax tax & Commissioner
Act, 1956 2004-05 of Sales
Tax
(Appeal),
Nagpur.
Central Sales 9.44 2001-02 Appellate
Sales Tax tax & Tribunal,
Act, 1956 2002-03 Mumbai.
10. The Company does not have accumulated losses as at 31st March,
2012 and has not incurred a cash loss during the financial year ended
on that date. The Company had not incurred cash loss in the immediate
preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks.
12. In respect of loans granted against securities, the Company has
maintained adequate documents and records.
13. In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, clause 4(xiii) of the Companies
(Auditor's Report) Order 2003 is not applicable to the Company.
14. In our opinion, during the year, the Company is not a dealer or
trader in shares, securities, debentures and other investments.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. According to the information and explanations given to us, the
term loans were applied for the purposes for which the loans were
obtained.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet and cash flow statement of
the Company, in our opinion, the funds raised on short-term basis have,
prima facie, not been used for long- term investment.
18. During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under Section 301 of the Act.
19. The Company has not issued any debentures during the year or in
the recent past.
20. The Company has not raised any money by way of public issue during
the year or in the recent past.
21. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practice in India and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
For LODHA & COMPANY
Chartered Accountants
A. M. Hariharan
Place: Mumbai Partner
Date: 16th May, 2012 Membership No. 38323
Firm Registration No- 301051E
Mar 31, 2011
1. We have audited the attached Balance Sheet of Hindustan Composites
Limited as at 31 st March, 2011, the Profit & Loss Account and also the
Cash Flow Statement of the Company 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 misstatements. 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 the 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 (hereinafter referred to as the
'Act'), 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 in paragraph
(3) above, 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 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;
c) The Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in Section 211(3C)oftheAct, to the
extent applicable;
e) On the basis of written representations received from the Directors,
as on 31st March, 2011 and taken on record by the Board of Directors,
we report that none of the Directors is disqualified as on 31st March,
2011 from being appointed as a Director in terms of Section 274 (1 )(g)
of the Act;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements read
togetherwith "Significant Accounting Policies and notes to accounts"
appearing in Schedule 18 and those appearing elsewhere in 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 accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 st March, 2011;
ii) in the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
Annexure referred to in paragraph 3 of our report of even date to the
Members of HINDUSTAN COMPOSITES LIMITED on the financial statements as
at and for the year ended 31 st March, 2011
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
audit, we state that:
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. There is
a phased programme of physical verification of all fixed assets over a
period of three years, based on which physical verification of certain
fixed assets was carried out during the year which, in our opinion, is
reasonable considering the size of the Company and nature of its fixed
assets. The discrepancies noticed on such physical verification were
not material and the same have been properly dealt with in the books of
account. Substantial part of fixed assets viz. Land & Building at Jalna
was disposed off during the year, which has not affected the going
concern status of the Company.
2. a) The inventory has been physically verified by the management at
reasonable intervals during the year. Inventory lying with third
parties and in - transit is being verified by the management with
reference to confirmations or statements of account or subsequent
receipt of goods.
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 nature of its business.
c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification of inventory between the physical
stock and book records were not material and have been properly dealt
with in the books of account.
3. (a) During the year, the Company has given unsecured loan, to
companies, covered in the register maintained under Section 301 of the
Act. The maximum amount outstanding during the year was Rs. 1204.5 lacs
and the year end balance is Rs. 404.5 lacs. The rate of interest and
other terms and conditions of loan given, prima facie, are not
prejudicial to the interest of the Company.
(b) The Company has not taken any unsecured loan from a Company covered
in the register maintained under Section 301 of the Act.
4. In our opinion and explanations given to us, having regard to the
explanation that some of the items purchased / sold are of special
nature and suitable alternative sources do not exist for obtaining
comparable quotations, there is an adequate internal control system
commensurate with the size of the Company and the nature of its
business for the purchase of inventories and fixed assets and for the
sale of goods. During the course of our audit, no major weaknesses have
been noticed in the internal control system.
5. (a) According to the information and explanations given to us, we
are of the opinion that particulars of contracts or arrangements that
need to be entered in the register maintained under section 301 of the
Act have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions have been made in pursuance of contracts
or arrangements entered in the register maintained under section 301 of
the Act and exceeding Rupees five lacs or more in respect of any party
during the year, have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
6. The Company has not accepted any deposits within the meaning of
Section 58A, 58AA or any other relevant provisions of the Act and Rules
framed thereunder.
7. The Company has an internal audit system commensurate with the size
of the company and nature of its business.
8. We have broadly reviewed the cost records 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 Act in
respect of Automotive parts and are of the opinion that, prima facie,
the prescribed records have been made and maintained. However, we are
not required to make a detailed examination of the records with a view
to determine whether they are accurate or complete.
9. a) According to the information and explanations given to us and
according to the books and records as produced and examined by
us, the 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 as applicable have generally been
regularly deposited by the Company during the year with the appropriate
authorities and there were no arrears as at 31 st March, 2011 for a
period of more than six months from the date they became payable.
b) According to the records of the Company and the information and
explanations given to us by the management, there are no dues of Sales
tax/ Income tax/ Excise duty/ Wealth tax/ Custom duty/ Cess which have
not been deposited on account of disputes except: :
Name of the Nature of Amount Period to which
Statutes (Rs. in amount relates
lacs
Income Tax Act, Income tax 18.26 2003-04 to
1961 2007-08
Central Sales Sales tax 2.22 1997-98 to
Tax Act, 1956 2003-04
Central Sales Sales tax 7.00 2001-02 to
Tax Act, 1956 2004-05
Name of the Statutes Forum Where Disputed
Income Tax Act, 1961 C.I.T. (Appeals), Mumbai.
Central Sales Tax Deputy Commissioner of
Act, 1956 Sales Tax (Appeal), Nagpur
Central Sales Tax Appellate Tribunal, Mumbai
Act, 1956
10. The Company does not have accumulated losses as at 31st March,
2011 and has not incurred a cash loss during the financial year ended
on that date. The Company had not incurred cash loss in the immediate
preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks.
12. In respect of loans granted against securities, the Company has
maintained adequate documents and records.
13. In our opinion, the Company is not a chit fund or a nidhi /mutual
benefit fund / society. Therefore, clause 4(xiii) of the Companies
(Auditor's Report) Order 2003 is not applicable to the Company.
14. In our opinion, during the year, the Company is not a dealer or
trader in shares, securities, debentures and other investments.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. According to the information and explanations given to us, the
term loans were applied for the purposes for which the loans were
obtained.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet and cash flow statement of
the Company, in our opinion, the funds raised on short-term basis have,
prima facie, not been used for long-term investment.
18. During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under Section 301 of the Act.
19. The Company has not issued any debentures during the year or in
the recent past.
20. The Company has not raised any money by way of public issue during
the year or in the recent past.
21. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practice in India and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
For LODHA & COMPANY
Chartered Accountants
A. M. Hariharan
Partner
Membership No. 38323
Firm Registration No 301051E
Place: Mumbai
Dated: 25th May 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of Hindustan Composites
Limited as at 31st March, 2010, the Profit & Loss Account and also the
Cash Flow Statement of the Company for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Companys 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 pian and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. 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 the 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 (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956 (hereinafter referred to as the
Act), 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 in paragraph
(3) above, 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 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;
c) The Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in Section 211 (3C) of the Act, to the
extent applicable;
e) On the basis of written representations received from the Directors,
as on 31st March, 2010 and taken on record by the Board of Directors,
we report that none of the Directors is disqualified as on 31s1 March,
2010 from being appointed as a Director in terms of Section 274 (1 )(g)
of the Act;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements read
together with "Significant Accounting Policies and notes to accounts"
appearing in Schedule 18 and those appearing elsewhere in 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 accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
ii) in the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Annexure referred to in paragraph 3 of our report of even date to the
Members of HINDUSTAN COMPOSITES LIMITED on the financial statements as
at and for the year ended 31st March, 2010
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
audit, we state that:
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. There is
a phased programme of physical verification of all fixed assets over a
period of three years, based on which physical verification of certain
fixed assets was carried out during the year which, in our opinion, is
reasonable considering the size of the Company and nature of its fixed
assets. The discrepancies noticed on such physical verification were
not material and the same have been properly dealt with in the books of
account. Substantial part of fixed assets viz. Land & Building at
Ghatkopar was disposed off during the year, which has not affected the
going concern status of the Company.
2. a) The inventory has been physically verified by the management at
reasonable intervals during the year. Inventory lying with third
parties and in - transit is being verified by the management with
reference to confirmations or statements of account or subsequent
receipt of goods.
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 nature of its business.
c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification of inventory between the physical
stock and book records were not material and have been properly dealt
with in the books of account.
3. (a) During the year, the Company has given unsecured loan, to
company, covered in the register maintained under Section 301 of the
Act. The maximum amount outstanding during the year was Rs. /Thousand
20,000 and the year end balance is Rs. Nil. The rate of interest and
other terms and conditions of loan given, prima facie, are not
prejudicial to the interest of the Company.
(b) The Company has taken unsecured loan from a Company covered in the
register maintained under Section 301 of the Act. The maximum amount
outstanding during the year was Rs. (in thousand) 46,700 and the year
end balance is Rs. Nil. The rate of interest and other terms and
conditions of loan taken, prima facie, are not prejudicial to the
interest of the Company.
4. In our opinion and explanations given to us, having regard to the
explanation that some of the items purchased / sold are of special
nature and suitable alternative sources do not exist for obtaining
comparable quotations, there is an adequate internal control system
commensurate with the size of the Company and the nature of its
business for the purchase of inventories and fixed assets and for the
sale of goods. During the course of our audit, no major weaknesses have
been noticed in the internal control system.
5. (a) According to the information and explanations given to us, we
are of the opinion that particulars of contracts or arrangements that
need to be entered in the register maintained under section 301 of the
Act have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions have been made in pursuance of contracts
or arrangements entered in the register maintained under section 301 of
the Act and exceeding Rupees five lacs or more in respect of any party
during the year, have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
6. The Company has not accepted any deposits within the meaning of
Section 58A, 58AA or any other relevant provisions of the Act and Rules
framed thereunder.
7. The Company has an adequate internal audit system commensurate with
the size and nature of its business.
8. We have broadly reviewed the cost records 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 Act in
respect of Automotive parts and are of the opinion that, prima facie,
the prescribed records have been made and maintained. However, we are
not required to make a detailed examination of the records with a view
to determine whether they are accurate or complete.
9. a) According to the information and explanations given to us and
according to the books and records as produced and examined by us, the
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 as applicable have generally been regularly
deposited by the Company during the year with the appropriate
authorities and there were no arrears as at 31 st March, 2010 for a
period of more than six months from the date they became payable.
b) According to the records of the Company and the information and
explanations given to us by the management, there are no dues of Sales
tax/ Income tax/ Excise duty/ Wealth tax/ Custom duty/ Cess which have
not been deposited on account of disputes except:
Name of the
Statutes Nature
of Dues Amount Period to which Forum Where
Disputed
(Rs. in
Thousands)
amount relates
Income Tax
Act, 1961 Income tax 4,032 2003-04 to C.I.T. (Appeals),
Mumbai.
2007-08
Central
Sales Tax
Act, 1956 Sales tax 1,238 1997-98 to Deputy Commissioner
of
2003-04 Sales Tax (Appeal),
Nagpur.
10. The Company does not have accumulated losses as at 31st March,
2010 and has not incurred a cash loss during the financial year ended
on that date. The Company had not incurred cash loss in the immediate
preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks.
12. In respect of loans granted against securities, the Company has
maintained adequate documents and records.
13. In our opinion, the Company is not a chit fund or a nidhi /mutual
benefit fund / society. Therefore, clause 4(xiii) of the Companies
(Auditors Report) Order 2003 is not applicable to the Company.
14. In our opinion, during the year, the Company is not a dealer or
trader in shares, securities, debentures and other investments.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. According to the information and explanations given to us, the
term loans were applied for the purposes for which the loans were
obtained.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet and cash flow statement of
the Company, in our opinion, the funds raised on short-term basis have,
prima facie, not been used for long-term investment.
18. During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under Section 301 of the Act.
19. The Company has not issued any debentures during the year or in
the recent past.
20. The Company has not raised any money by way of public issue during
the year or in the recent past.
21. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practice in India and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
For LODHA & COMPANY
Chartered Accountants
A. M. Hariharan
Place: Mumbai Partner
Date: 20th May 2010 Membership No. 38323
Firm Registration No 301051E
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article
More Information on Hindustan Composites Ltd.
-
Hindustan Composites Ltd. Tools
- Bulk Deals
- Block Deals
-
Hindustan Composites Ltd. Company Details
- Company Profile
- Company History
- Management Team
- Capital Structure
- Product Mix
- Banker/Auditor/Registrar
-
Company History
- Bonus
- BSE Price History
- NSE Price History
-
Hindustan Composites Ltd. Key Financial Ratios
- Ratios
-
Hindustan Composites Ltd. Results
- Quarterly Results
- Half Yearly Results
- Nine Months Results
- Annual Results
-
Hindustan Composites Ltd. Financial Data
- Audited Results
- Cash Flow
- Balance Sheet
-
Hindustan Composites Ltd. Reports
- Accounting Policies
- Auditors Report
- Directors Report
- Notes To Account
-
Hindustan Composites Ltd. Corporate Announcements
- Book Closure
- Dividend
- Board Meetings
