Mar 31, 2018
INDEPENDENT AUDITOR''S REPORT
TO THE MEMBERS OF HINDUSTAN WIRES LIMITED Report on the Ind AS Financial Statements
1. We have audited the accompanying Ind AS financial statement of HINDUSTAN WIRES LIMITED (âthe Companyâ), which comprises the balance sheet as at 31st March 2018, the statement of profit and loss (including other comprehensive income), the statement of cash flows and the statement of changes in equity for the year then ended and a summary of the significant accounting policies and other explanatory information (herein after referred to as âInd AS financial statementsâ).
Management''s Responsibility for the Ind AS Financial Statements
2. The Company''s 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 Ind AS financial statements that give a true and fair view of the financial position, 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 read with relevant rules issued thereunder.
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 give a true and fair view and free from material misstatement, whether due to fraud or error.
Auditors'' Responsibility
3. 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 thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Companies Act ,2013 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.
4. 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 auditor''s 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 Company''s 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 Company''s Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
5. 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
6. 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 financial position of the Company as at 31st March, 2018, and its 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
7 As required by the Companies (Auditor''s 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 Annexure A, a statement on the matters specified in the paragraph 3 and 4 of the order.
8 As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.
(b) In our opinion proper books of accounts 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 statement of cash flows and the statement of changes in equity dealt with by this Report are in agreement with the books of accounts.
(d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act read with relevant rules issued thereunder;
(e) On the basis of the written representation 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, 2013.
(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 express an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial control over financial reporting.
(g) 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 litigation on its financial position in its Ind As financial statement6 . Refer note 32 to the 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 ; and
iii) The Company did not have any dues required to be transferred by it to the Investor Education and Protection Funds.
ANNEXURE TO THE INDEPENDENT AUDITORâS REPORT
The Annexure âAâ referred to in paragraph 7 of our report of even date to the members of Hindustan Wires Limited on the Standalone Ind AS Financial Statements for the year ended 31st March, 2018.
(i) In respect of the Company''s fixed assets:
(a) The Company has maintained records showing full particulars, including quantitative details and situation of fixed assets.
(b) The fixed assets were physically verified during the year by the Management in accordance with a regular programme of verification which, in our opinion, provides for physical verification of the fixed assets at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
(c) According to the records of the company, title deeds of immovable properties of the company are held in the name of the company.
(ii) As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals and no material discrepancies were noticed on physical verification.
(iii) According to the information and explanations given to us, the Company has granted loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the Register maintained under Section 189 of the Companies Act, 2013. The rate of interest and other terms and conditions of such loans were not, prima facie, prejudicial to the interest of the Company.
(iv) In our opinion and according to the information and explanations given to us, the Company has compiled with the provision of Sections 185 and 186 of the Companies Act, 2013 with respect to loans, and investments made by company.
(v) According to the information and explanations given to us, the Company has not accepted any deposit under Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014, as amended.
(vi) The Central government of India has not prescribed maintenance of cost accounts for the type of activities of the company pursuant to the rule made by central Government of India for the maintenance of cost records clause (d) of sub section (1) of Section 148 of the Company Act,2013.
(vii) According to the records examined by us, in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees'' State Insurance, Income-tax, Sales Tax, Service Tax, Goods and Service Tax, Customs Duty, Excise Duty, Value Added Tax, cess and other material statutory dues applicable to it to the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employees'' State Insurance, Income-tax, Sales Tax, Service Tax, Goods and Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other material statutory dues in arrears as at March 31, 2018 for a period of more than six months from the date they became payable.
(c) Accordingly to the records of the company, there were no dues in respect of income tax, Service Tax, custom duty Sales tax and Excise Duty, Goods and Service Tax which have not been deposited on account of disputes.
(viii) In our opinion and according to the information and explanations given to us, the Company has not taken any loans or borrowings from financial institutions and banks. The Company has not taken any loan or borrowing from government and has not issued any debentures.
(ix) In our opinion and according to the information and explanations given to us, no money raised by way of term loans by the Company during the year. The Company has not raised moneys by way of initial public offer (including debt instruments) during the year.
(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company by its officers or employees has been noticed or reported during the year.
(xi) In our opinion and according to the information and explanations given to us, the Company has paid managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) In our opinion and according to the information and explanations given to us the Company is not a Nidhi Company and hence reporting under clause (xii) of the Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us the Company is in compliance with Section 177 and 188 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) In our opinion and according to the information and explanations given to us, During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of order 2016 is not applicable to the Company.
(xv) In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or directors of its holding, subsidiary or associate company or persons connected with them and hence provisions of section 192 of the Companies Act, 2013 are not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 & hence reporting under clause (xvi) of order is not applicable to the Company.
ANNEXURE âBâ TO THE INDEPENDENT AUDITORâS REPORT
(Referred to in paragraph 8(f) under âReport on Other Legal and Regulatory Requirements'' section of our report of even date) Report on the Internal Financial Controls Over Financial Reporting 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 Wires Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the Ind AS financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s 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 (the âGuidance Noteâ). 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 Company''s 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 Companies Act, 2013. Auditorâs Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting of the Company based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. 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 auditor''s judgments, 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 Company''s 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, to the best of our information and according to the explanations given to us 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 March 31, 2018, based on the criteria for internal financial control over financial reporting established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Control Over Financial Reporting issued by the Institute of Chartered Accountant of India.
PLACE OF SIGNATURE: NOIDA FOR M.L. GARG & COMPANY
DATE : 16th MAY, 2018 CHARTERED ACCOUNTANTS
FRN 001604N
(MANISH K GARG)
PARTNER M.NO. 96238
Mar 31, 2016
INDEPENDENT AUDITORSâ REPORT
TO THE MEMBERS OF HINDUSTAN WIRES LIMITED
Report on the Financial Statements
1. We have audited the accompanying financial statements of HINDUSTAN WIRES LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information which we have signed under reference to this report.
Managementâs responsibility for the Financial Statements
2 The Company''s 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 and presentation 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 provision 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.
Auditorsâ Responsibility
3 Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under. We conducted our audit in accordance with the Standards on Auditing specified under Section143(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.
4 An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments; the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design the audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and reasonableness of the accounting estimates made by the management, as well as evaluating the overall presentation of the financial statements.
5 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
6 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:
(i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2016;
(ii) in the case of the Statement of Profit and Loss, of the Profit of the Company for the year ended on that date; and
(iii) in the case of Cash Flow Statement, of the cash flows of the Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditor''s Report) Order, 2016 (''Order''), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we enclose in the Annexure ''A'' a statement on the matters specified in paragraphs 3 and 4 of the said Order.
8 As required by Section143 (3) of the Act, we report that:
a. we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b. in our opinion proper books of accounts as required by the 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 aforesaid financial Statements dealt with by this report comply with the Accounting Standards referred to in section 133 of the Companies Act, 2013;
e. on the basis of written representations received from the directors as on 31st March 2016, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March 2016 from being appointed as director in terms of section 164(2) of the Companies Act, 2013 ;
f. With respect to the adequacy of the Internal Financial Controls over the financial reporting of the Company and operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ; and
g. With respect to the other matters to be included in the Auditor''s Report in accordance with Rule11 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 litigation on its financial position in its financial statement Refer Note No. 23 & 24 to the financial statement,
ii. The Company did not have any foreseeable losses on long term contracts and had no derivative contracts outstanding as at 31st March 2016; and
iii. The Company did not have any dues on account of Investor Education and Protection Fund.
The Annexure âAâ referred to in paragraph 7 of our report of even date to the members of Hindustan Wires Limited on the financial statements for the year ended 31st March, 2016.
i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) As explained to us, physical verification of fixed assets has been carried out by the Company and no material discrepancies were noticed on such verification. In our opinion the frequency of verification is reasonable, having regard to- the size of the Company and nature of its business.
(c) Title deeds of immovable properties of the company are held in the name of the Company.
ii) (a) The inventories have been physically verified during the year by the management at reasonable intervals.
(b) In our opinion, no material discrepancies were noticed on physical verification of stocks.
iii) The Company has during the year, granted un-secured loans to Bodies Corporate covered in the register maintained under section 189 of the companies Act, 2013 and in case of such loans :-
a) In our opinion, the rate of interest and other terms and conditions of such loans were not, prima facie, prejudicial to the interest of the Company.
b) The schedule of re-payment of principal and payment of interest has been stipulated and the re-payments are regular as the loans are repaid as when demanded back, and
c) There are no outstanding amounts in respect of such loans which are overdue for more than 90 days.
iv) In our opinion and according to the information and explanation given to us, the Company has complied with the provisions of section 185 and 186 of the Companies Act, 2013, with respect to the loans and investments made by the Company.
v) The Company has not accepted any deposits during the year and hence paragraph 3(v) of the Order is not applicable to the Company.
vi) The Central Government has not prescribed maintenance of cost accounts for the type of activities of the Company pursuant to the rules made by the Central Government of India for the maintenance of cost records under clause (d) of Sub Section (1) of Section 148 of the Companies Act, 2013
vii) (a) According to the records examined by us , the Company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees state insurance, income tax , sales tax, service tax, duty of custom, duty of excise, value added tax, cess and other statutory dues wherever applicable.
According to the information and explanations given to us, no undisputed arrears of statutory dues were outstanding as on the last date 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 was no dues in respect of income tax, Sales Tax, Service Tax, duty of customs, duty of excise, value added tax, cess and other statutory duties which have not been deposited on account of disputes.
viii) Based on our audit procedures and according to the information given by the management, the company has not defaulted repayment in respect of any loans or borrowings from any financial institution, bank, government or dues to debentures holders during the year.
ix) In our opinion and according to the information and explanations given to us, during the financial year under subject, the Company has not taken any term loan and has not done any initial public offer or further public offer (including debt instrument) and hence paragraph 2(ix) of the Order is not applicable to the Company.
x) Based upon the audit procedures performed and to the best of our knowledge and according to the information and explanations given to us by the management, we report that no fraud by the Company or any fraud on the company by its officer or employees has been noticed or reported during the course of our audit.
xi) The managerial remuneration has been paid / provided (by the Company)are in Compliance with Section 197 read with schedule V to the Companies Act, 2013.
xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company and hence paragraph 3 (xii) of the Order is not applicable to the Company.
xiii) As explained to us and as per the records of the company, in our opinion the transactions with the related parties are in Compliance with Section 177 and Section 188 of the Companies Act, 2013 and the details have been disclosed in the financial statements as required by the applicable accounting standard.
xiv) According to the records of the company, it has not made any preferential allotment of shares or private placement of shares or fully/partly convertible debentures during the year under report. Accordingly paragraph 3 (xiii) of the Order is not applicable to the Company.
xv) During the year, the Company has not entered into any non-cash transaction with Director or person connected with him. Hence paragraph 3 (xv) of the Order is not applicable to the Company.
xvi) The Company is not required to be registered under section 45-1A of the Reserve Bank of India Act, 1934 and hence paragraph 3 (xvi) of the Order is not applicable to the Company.
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 Wires Limited (âthe Companyâ) as of March 31, 2016 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on âthe 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 Indiaâ. 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 company''s 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 Companies Act, 2013.
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 Companies Act, 2013, 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 auditor''s 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 Company''s 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 March 31, 2016, based on âthe 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 Indiaâ.
PLACE OF SIGNATURE: FOR K.N. GUTGUTIA & COMPANY
11-K, GOPALA TOWER CHARTERED ACCOUNTANTS
25, RAJENDRA PLACE, FRN 304153E
NEW DELHI-110008
DATE: 24th May, 2016 (B.R. GOYAL)
PARTNER M.NO. 12172
Mar 31, 2015
1. We have audited the accompanying financial statements of HINDUSTAN
WIRES LIMITED ("the Company"), which comprise the Balance Sheet as
at 31st March, 2015, the Statement of Profit and Loss and the Cash
Flow Statement for the year then ended and a summary of significant
accounting policies and other explanatory information which we have
signed under reference to this report.
ManagementÂs responsibility for the Financial Statements
2 The CompanyÂs 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 and presentation 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 provision 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
Auditors Responsibility
3 Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under
the provisions of the Act and the Rules made there under. We conducted
our audit in accordance with the Standards on Auditing specified under
Section143(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.
4 An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. 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. In making those risk
assessments; the auditor considers internal control relevant to the
CompanyÂs preparation and fair presentation of the financial
statements in order to design the audit procedures that are
appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the CompanyÂs internal
control. An audit also includes evaluating the appropriateness of
accounting policies used and reasonableness of the accounting
estimates made by the management, as well as evaluating the overall
presentation of the financial statements.
5 We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6 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:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2015;
(ii) in the case of the Statement of Profit and Loss, of the Profit of
the Company for the year ended on that date; and
(iii) in the case of Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
7 As required by the Companies (AuditorÂs Report) Order, 2015
(ÂOrderÂ), issued by the Central Government of India in terms of
subsection (11) of section 143 of the Act, we enclose in the Annexure,
a statement on the matters specified in paragraphs 3 and 4 of the said
Order, to the extent applicable.
8. As required by Section143 (3) of the Act, we report that:
a. we have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
b. in our opinion proper books of accounts as required by the 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, the Statement of Profit and Loss
and the Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in section 133 of the Companies Act,
2013;
e. on the basis of written representations received from the directors
as on 31 March 2015, and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31 March 2015
from being appointed as director in terms of section 164(2) of the
Companies Act, 2013 and
f. With respect to the other matters to be included in the AuditorÂs
Report in accordance with Rule11 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 24 & 25 to
the financial statements;
ii. The Company did not have any long term contracts and had no
derivative contracts outstanding as at 31 March 2015; and
iii. The Company did not have any dues on account of Investor
Education and Protection Fund
ANNEXURE TO THE INDEPENDENT AUDITORSÂ REPORT
(Referred to in paragraph 7 of our report of even date to the members
of Hindustan Wires Limited on the financial statements for the year
ended 31st March, 2015)
i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, physical verification of fixed assets has been
carried out in terms of the phased programme of verification of its
fixed assets adopted by the Company and no material discrepancies were
noticed on such verification. In our opinion the frequency of
verification is reasonable, having regard to the size of the Company
and nature of its business.
ii) (a) The inventories have been physically verified during the year
by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. In our
opinion, discrepancies noticed on physical verification of stocks were
not material in relation to the operations of the Company.
iii) (a) According to the information and explanations given to us,
the Company has during the year, in the ordinary course of its
business, granted unsecured loans to its Holding Company covered in
the register maintained under section 189 of the companies Act,2013.
The loans are repayable on demand. There are no overdue amounts as at
31st March, 2015 in respect of such loans.
iv) In our opinion and according to the information and explanations
given to us, there are internal control systems commensurate with the
size of the Company and the nature of its business with regard to
purchase of inventory, fixed assets and for the sale of goods and
services.
v) The Company has not accepted public deposits during the year.
vi) The Central Government has not prescribed maintenance of cost
accounts for the type of activities of the Company pursuant to the
rules made by the Central Government of India for the maintenance of
cost records under clause (d) of Sub Section (1) of Section 148 of the
Companies Act, 2013
vii) (a) According to the records examined by us , the Company is
generally regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, employees state
insurance, income tax , sales tax , wealth tax, service tax, duty of
custom, duty of excise, value added tax, cess and other statutory dues
wherever applicable. According to the information and explanations
given to us, no undisputed arrears of statutory dues were outstanding
as at 31st March, 2015 for a period of more than six months from the
date they became payable.
(b) According to the records of the Company, the details of dues in
respect of sale tax, income tax, duties of customs, wealth tax,
service tax, duty of excise, cess and value added tax which have not
been deposited on account of disputes and the forum where the dispute
is pending are: NIL
(c) The Company did not have any dues on account of Investor Education
and Protection Fund.
viii) The Company has been registered for a period of more than 5
years and its accumulated losses at the end of the financial year are
more than 50% of its net worth. The Company has not incurred cash
losses during the financial year covered by our audit, as well as in
the immediately preceding financial year of the Company.
ix) Based on our audit procedures and the information given by the
management, we are of the opinion that the Company has not defaulted
in repayment of dues to any financial institution or bank.
x) According to the information and explanations given to us, Company
has not given any guarantee during the year for loans taken by others
from banks or financial institution.
xi) In our opinion and according to the information and explanations
given to us, the term loans taken by the Company have been applied for
the purpose for which they were obtained.
xii) Based upon the audit procedures performed and to the best of our
knowledge and according to the information and explanations given to
us by the management, we report that no fraud on or by the Company has
been noticed or reported during the course of our audit.
PLACE : NOIDA FOR K.N. GUTGUTIA & COMPANY
DATE : 22nd MAY, 2015 CHARTERED ACCOUNTANTS
FRN 304153E
(B.R. GOYAL)
PARTNER
M.NO. 12172
Mar 31, 2014
1. We have audited the accompanying financial statements of HINDUSTAN
WIRES LIMITED ("the Company"), which comprises the Balance Sheet as
at March 31,2014 and the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
2. 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 principles generally accepted in India,
including 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.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments; the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in
the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. In our opinion and to the best of our information and according to
the explanations given to us, the financial statement 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 Loss for the
year ended on that date; and
(c) In the case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
7. 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 Companies Act 1956 (the Act), we
give in the Annexure a statement on the matters specified in paragraphs
4 and 5 of the Order.
8. 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 appears from our examination of those
books;
c) The Balance Sheet, Statement of Profit & 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 Profit & Loss, and
Cash Flow Statement referred to in this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Company''s Act; 1956.
e) On the basis of the written representations received from the
Directors as on 31st March, 2014, and taken on record by the Board of
Directors, none of the Directors of the Company is disqualified as on
31st March, 2014 from being appointed as a Director of the Company in
terms of Clause (g) of sub-section (1) of Section 274 of the Companies
Act, 1956.
This is the Annexure referred to in paragraph 7 of our report of even
date to the member of Hindustan Wires Limited (the Company) for the
year ended 31st March, 2014
i) In respect of Fixed Assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) The Fixed Assets have been physically verified by the management
during the year and discrepancies noticed on such verification were not
material.
c) As per the records and information & explanation given to us, fixed
assets disposed off during the year were not significant.
ii) In respect of Inventories:
a) The inventory has been physically verified during the year by the
management at reasonable intervals.
b) In our opinion, the procedure of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification of
inventory as compared to the book records.
iii) In respect of Loans:
a) The Company has not granted unsecured loans to the Companies, Firms
or other parties listed in the register maintained Under Section 301 of
the Companies Act, 1956 and accordingly clause 3 (a)to 3 (d) is not
applicable to it.
b) The Company has not taken unsecured loan during the year from any of
the Associate Company listed in the register maintained under Section
301 of the Companies Act 1956. The maximum balance of loans taken and
outstanding during the year were Rs. 117.71 Lacs. The year end balances
of loans taken from such companies covered under Section 301 of the
Companies Act, 1956 were Rs. 91.21 Lacs.
c) In our opinion, the rate of interest wherever applicable and other
terms and conditions on which such unsecured loans have been taken are
not, prima facie, prejudicial to the interest of the Company.
d) The unsecured loans are repayable on demand. In respect of interest
on such loans (Rs. 81.21 Lacs except Rs. 10 Lacs) the Company cannot
make any payment of the interest as per terms of Rehabilitation Scheme
sanctioned by BIFR / AAIFR. As informed to us the concerned parties
have also agreed to waive off the interest on their respective loans.
In respect of loan of Rs. 10 Lacs the Company is regular in making
payment of interest.
iv) In our opinion, and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business for the
purchases of inventory, fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
major weaknesses in internal control systems.
v) a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of
contracts or arrangements, that needed to be entered into the register
maintained under section 301 of the Companies Act, 1956 has been so
entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements ( exceeding the value of Rs. 5 lacs in respect of each
party during the year) have been made at prices which are generally
reasonable having regard to the prevailing market prices at the
relevant time.
vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public.
Therefore, the provisions of clause (vi) of the Companies (Auditor''s
Report ) order, 2003 are not applicable to the Company.
vii) In our opinion, the Company has an internal Audit System
commensurate with the size and nature of its business.
viii) As informed to us, the Central Government has not prescribed
maintenance of cost records under Section 209 (1) (d) of the Companies
Act, 1956 for any of the products of the Company.
ix) (a) According to the records of the Company, it is regular in
depositing undisputed statutory dues of Provident Fund, Employees''
State Insurance, Income Tax, Service Tax, VAT, Excise duty, Sale Tax,
Cess and other material statutory dues with appropriate authorities.
(b) According to the records of the Company, it has not deposited
disputed amount of statutory dues on account of Sales Tax for which the
details are as hereunder : -
Nature ofthe Dues Year to which Amount Forum where dispute
it relates (Rs. In Lacs) is pending
Sales Tax 1982 to 1985 18.97 Punjab & Haryana High
Court at Chandigarh
x) The Company has been registered for a period of more than five years
and its accumulated losses at the end of the financial year are more
than 50% of its net worth. The Company has not incurred cash loss in
the current financial year as well as in the immediately preceding
financial year.
xi) The Company has not defaulted in repayment of any dues to Banks,
financial institutions and debenture holders.
xii) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) The Company has not given any guarantee for loans taken by others
from banks or Financial Institutions.
xiv) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund / society. Therefore, the provision of clause 4(XIII) of
the Companies (Auditors'' Report) Order, 2003 are not applicable to
the Company.
xv) In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provision of clause 4(XIV) of the Companies (Auditors'' Report) Order,
2003 are not applicable to the Company.
xvi) The Company has not taken any new term loans from Bank and/or
Financial Institutions during the year.
xvii) On the basis of information and explanations given to us and on
an overall examination of the financial statements of the Company,
funds raised on short term basis, prima facie, have not been used for
long term investments.
xviii) The company has not made during the year any preferential
allotment of shares to parties and companies covered in the register
maintained under section 301 of the Company''s Act, 1956.
xix) The Company has neither issued debentures during the year nor any
creation of security is pending in respect of debentures raised in
earlier years.
xx) The Company has not raised any money by public issues during the
year.
xxi) Based upon on our audit procedure applied and according to the
information and explanation given to us and to the best of our
knowledge and belief no fraud on or by the Company has been noticed or
reported during the year.
PLACE : NEW DELHI FOR K.N. GUTGUTIA & COMPANY
DATE : 27th May, 2014 CHARTERED ACCOUNTANTS
FRN 304153E
(B.R. GOYAL)
PARTNER
M.NO. 12172
Mar 31, 2012
We have audited the attached Balance Sheet of HINDUSTAN WIRES LIMITED
as at 31st March, 2012 and also the Statement of Profit and Loss and
the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
CompanyÃs management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amount and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
We report that:
1. 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.
2. 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 the
books.
3. The Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
4. In our opinion the Balance Sheet, Statement of Profit & Loss and
Cash Flow Statement complies with the mandatory Accounting Standards
(AS) referred in section 211(3c) of the Companies Act, 1956.
5. On the basis of written representation received from the Directors
of the Company as on 31st March, 2012, and taken on record by the Board
of Directors, none of the Directors is disqualified as on 31st March,
2012 from being appointed as Director under section 274(1) (g) of the
Companies Act, 1956.
6. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with accounting
policies and notes thereon and together with Schedules annexed thereto,
and subject to :-
(i) That amounts recoverable from the public sector oil companies have
been estimated and arrived at by the management and relied upon by us,
give the information required by the Companies Act, 1956 in the manner
so required and give a true and fair view in conformity with the
Accounting Standards generally accepted in India:-
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012 and
b) In the case of Statement of Profit & Loss, of the loss for the year
ended on that date.
c) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
As required by the Companies (AuditorÃs Report) Order, 2003 issued by
the Central Government in terms of Section 227(4A) of the Companies
Act, 1956 and on the basis of such checks as we considered appropriate,
we further state that:
i) In respect of Fixed Assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) The Fixed Assets have been physically verified by the management
during the year and discrepancies noticed on such verification have
been properly dealt with in the accounts.
c) In terms of Sanctioned Rehabilitation Scheme by AAIFR, part of fixed
assets was disposed off in the earlier years. However, it has not
affected the status of going concern since the company has diversified
its business activities and has set up a unit for manufacturing
Industrial Gases and the same is in operation.
ii) In respect of Inventories:
a) The inventory has been physically verified during the year by the
management at reasonable intervals.
b) In our opinion, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company is maintaining proper records of inventory and the
discrepancies noticed on physical verification of inventory as compared
to the book records were not material, have been properly dealt with in
the books of account.
iii) In respect of Loans:
a) The Company has not granted unsecured loans to the Companies, Firms
or other parties listed in the register maintained Under Section 301 of
the Companies Act, 1956 and accordingly clause 3 (a)to 3 (d) is not
applicable to it.
b) The Company has not taken any unsecured loans during the year from
the Holding Company and from any Associate company listed in the
register maintained under Section 301 of the Companies Act 1956.
However the year end balances of loans taken from such companies
covered under Section 301 of the Companies Act, 1956 were Rs. 229.71
lacs.
c) In our opinion, the rate of interest wherever applicable and other
terms and conditions on which such unsecured loans have been taken are
not, prima facie, prejudicial to the interest of the Company.
d) The unsecured loans from the holding Company & Associate Company are
long term loans and are not repayable within next one year. In respect
of interest on such loans the Company cannot make any payment of the
interest as per terms of Rehabilitation Scheme sanctioned by BIFR /
AAIFR. As informed to us the concerned parties have also agreed to
waive off the interest on their respective loans.
iv) In our opinion, and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business for the
purchases of inventory, fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
major weaknesses in internal control systems.
v)
a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed to be entered into the register maintained
under section 301 of the Companies Act, 1956 has been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements ( exceeding the value of Rs. 5 lacs in respect of each
party during the year) have been made at prices which are generally
reasonable having regard to the prevailing market prices at the
relevant time.
vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public.
Therefore, the provisions of clause (vi) of the Companies (AuditorÃs
Report ) order, 2003 are not applicable to the Company.
vii) In our opinion, the Company has an internal Audit System
commensurate with the size and nature of its business.
viii) As informed to us, the Central Government has not prescribed
maintenance of cost records under Section 209 (1) (d) of the Companies
Act, 1956 for any of the products of the Company.
ix) (a) According to the records of the Company, it is regular in
depositing undisputed statutory dues of Provident Fund,
Employeesà State Insurance, Income Tax, Service Tax, VAT, Excise
duty, Cess and other material statutory dues, with appropriate
authorities. However the undisputed statutory dues on account of Sales
Tax outstanding for more than six months at the year end are Rs. 9.14
lacs.
(b) According to the records of the Company, it has not deposited
disputed amount of statutory dues on account of Sales Tax for which the
details are as hereunder: -
Nature
of the
Dueb Year to
which Amount Forum where dispute is pending
it relates (Rs. In Lacs)
Sales Tax 1982 to 1985 18.97 Punjab & Haryana High Court
at Chandigarh
x) The Company has been registered for a period of more than five years
and its accumulated losses at the end of the financial year are more
than 50% of its net worth. The Company has not incurred cash loss in
the current financial year as well as in the immediately preceding
financial year.
xi) The Company has not defaulted in repayment of any dues to Banks,
financial institutions and debenture holders.
xii) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) The Company has not given any guarantee for loans taken by others
from banks or Financial Institutions.
xiv) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund / society. Therefore, the provision of clause 4(XIII) of
the Companies (Auditorsà Report) Order , 2003 are not applicable to
the Company.
xv) In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provision of clause 4(XIV) of the Companies (Auditorsà Report) Order,
2003 are not applicable to the Company.
xvi) The Company has not taken any new term loans from Bank and/or
Financial Institutions during the year.
xvii) On the basis of information and explanations given to us and on
an overall examination of the financial statements of the Company,
funds raised on short term basis have, prima facie, not been used for
long term investments or towards repayment of long term borrowings.
xviii) The Company has not made during the year any preferential
allotment of shares to parties and companies covered in the Register
maintained U/S 301 of the Companies Act, 1956.
xix) The Company has neither issued debentures during the year nor any
creation of security is pending in respect of debentures raised in
earlier years.
xx) The Company has not raised any money by public issues during the
year.
xxi) Based upon on our audit procedure applied and according to the
information and explanation given to us and to the best of our
knowledge and belief no fraud on or by the Company has been noticed or
reported during the year.
DATE : 25th June, 2012 FOR K.N. GUTGUTIA & COMPANY
PLACE : NEW DELHI CHARTERED ACCOUNTANTS
(B.R. GOYAL)
PARTNER
M.NO. 12172 ICAIÃS FRN 304153E
Mar 31, 2011
We have audited the attached Balance Sheet of HINDUSTAN WIRES LIMITED
as at 31st March, 2011 and also the Profit and Loss Account and the
Cash Flow Statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amount and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
We report that:
1. 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.
2. 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 the
books.
3. The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
4. In our opinion the Balance Sheet, Profit & Loss Account and Cash
Flow Statement complies with the mandatory Accounting Standards (AS)
referred in section 211(3c) of the Companies Act, 1956.
5. On the basis of written representation received from the Directors
of the Company as on 31st March, 2011, and taken on record by the Board
of Directors, none of the Directors is disqualified as on 31st March,
2011 from being appointed as Director under section 274(1) (g) of the
Companies Act, 1956.
6. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with accounting
policies and notes thereon and together with Schedules annexed thereto,
and subject to :-
(i) That deferred tax assets as assumed by the management is based upon
the projections which have been relied upon by us, and
(ii) That amounts recoverable from the public sector oil companies have
been estimated and arrived at by the management and relied upon by us,
give the information required by the Companies Act, 1956 in the manner
so required and give a true and fair view in conformity with the
Accounting Standards generally accepted in India:-
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011 and
b) In the case of Profit & Loss Account, of the profit for the year
ended on that date.
c) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
As required by the Companies (Auditor's Report) Order, 2003 issued by
the Central Government in terms of Section 227(4A) of the Companies
Act, 1956 and on the basis of such checks as we considered appropriate,
we further state that:
i) In respect of Fixed Assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) The Fixed Assets have been physically verified by the management
during the year and discrepancies noticed on such verification have
been properly dealt with in the accounts.
c) In terms of Sanctioned Rehabilitation Scheme by AAIFR, part of fixed
assets was disposed off in the earlier years. However, it has not
affected the status of going concern since the company has diversified
its business activities and has set up a unit for manufacturing
Industrial Gases and the same is in operation.
ii) In respect of Inventories:
a) The inventory has been physically verified during the year by the
management at reasonable intervals.
b) In our opinion, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company is maintaining proper records of inventory and the
discrepancies noticed on physical verification of inventory as compared
to the book records were not material, have been properly dealt with in
the books of account.
iii) In respect of Loans:
a) The Company has not granted unsecured loans to the Companies, Firms
or other parties listed in the register maintained Under Section 301 of
the Companies Act, 1956 and accordingly clause 3 (a)to 3 (d) is not
applicable to it.
b) The Company has not taken any unsecured loans during the year from
the Holding Company and from any Associate company listed in the
register maintained under Section 301 of the Companies Act 1956.
However the year end balances of loans taken from such companies
covered under Section 301 of the Companies Act, 1956 were Rs. 250.71
lacs.
c) In our opinion, the rate of interest wherever applicable and other
terms and conditions on which such unsecured loans have been taken are
not, prima facie, prejudicial to the interest of the Company.
d) The unsecured loans are repayable on demand. In respect of interest
on such loans the Company cannot make any payment of the interest as
per terms of Rehabilitation Scheme sanctioned by BIFR / AAIFR. As
informed to us the concerned parties have also agreed to waive off the
interest on their respective loans.
iv) In our opinion, and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business for the
purchases of inventory, fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
major weaknesses in internal control systems.
v)
a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed to be entered into the register maintained
under section 301 of the Companies Act, 1956 has been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements ( exceeding the value of Rs. 5 lacs in respect of each
party during the year) have been made at prices which are generally
reasonable having regard to the prevailing market prices at the
relevant time.
vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public.
Therefore, the provisions of clause (vi) of the Companies (Auditor's
Report) order, 2003 are not applicable to the Company.
vii) In our opinion, the Company has an internal Audit System
commensurate with the size and nature of its business.
viii) As informed to us, the Central Government has not prescribed
maintenance of cost records under Section 209 (1) (d) of the Companies
Act, 1956 for any of the products of the Company.
ix) (a) According to the records of the Company, it is regular in
depositing undisputed statutory dues of Provident Fund, Employees'
State Insurance, Income Tax, Service Tax, VAT, Excise duty, Cess and
other material statutory dues, with appropriate authorities. However
the undisputed statutory dues on account of Sales Tax and interest &
damages on P.F. outstanding for more than six months at the year end
are Rs. 9.14 lacs and Rs 4.81 Lacs respectively.
(b) According to the records of the Company, it has not deposited
disputed amount of statutory dues on account of Sales Tax and ESI for
which the details are as hereunder : -
Nature of Year to Amount Forum where dispute is pending
the Dues which (Rs. In
it relates Lacs)
Sales Tax 1982 to
1985 18.97 High Court at Chandigarh
1973 -
1974 3.36 Tribunal at Kolkata
E.S.I 2002-
2003 0.21 Employees Insurance court,
Faridabad
x) The Company has been registered for a period of more than five years
and its accumulated losses at the end of the financial year are more
than 50% of its net worth. The Company has not incurred cash loss in
the current financial year as well as in the immediately preceding
financial year.
xi) The Company has not defaulted in repayment of any dues to Banks,
financial institutions and debenture holders.
xii) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) The Company has not given any guarantee for loans taken by others
from banks or Financial Institutions.
xiv) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund / society. Therefore, the provision of clause 4(XIII) of
the Companies (Auditors' Report) Order , 2003 are not applicable to the
Company.
xv) In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provision of clause 4(XIV) of the Companies (Auditors' Report) Order,
2003 are not applicable to the Company.
xvi) The Company has not taken any new term loans from Bank and/or
Financial Institutions during the year.
xvii) On the basis of information and explanations given to us and on
an overall examination of the financial statements of the Company,
funds raised on short term basis have, prima facie, not been used for
long term investments or towards repayment of long term borrowings.
xviii) The Company has not made during the year any preferential
allotment of shares to parties and companies covered in the Register
maintained U/S 301 of the Companies Act, 1956.
xix) The Company has neither issued debentures during the year nor any
creation of security is pending in respect of debentures raised in
earlier years.
xx) The Company has not raised any money by public issues during the
year.
xxi) Based upon on our audit procedure applied and according to the
information and explanation given to us and to the best of our
knowledge and belief no fraud on or by the Company has been noticed or
reported during the year.
FOR K.N. GUTGUTIA & COMPANY
CHARTERED ACCOUNTANTS
(B.R. GOYAL)
PARTNER
M.NO. 12172
ICAI'S FRN
304153E
PLACE : NEW DELHI
DATE : 25th MAY,2011
Mar 31, 2010
We have audited the attached Balance Sheet of HINDUSTAN WIRES LIMITED
as at 31st March, 2010 and also the Profit and Loss Account and the
Cash Flow Statement for the year ended on that date annexed thereto..
These financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amount and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
We report that:
1. 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.
2. 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 the
books.
3. The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
4. In our opinion the Balance Sheet, Profit & Loss Account and Cash
Flow Statement complies with the mandatory Accounting Standards (AS)
referred in section 211 (3c) of the Companies Act, 1956.
5. On the basis of written representation received from the Directors
of the Company as on 31st March, 2010, and taken on record by the Board
of Directors, none of the Directors is disqualified as on 31st March,
2010 from being appointed as Director under section 274(1) (g) of the
Companies Act, 1956.
6. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with accounting
policies and notes thereon and together with Schedules annexed thereto,
and subject to :-
(i) That deferred tax assets as assumed by the management is based upon
the projections which have been relied upon by us, and
(ii) That provision for doubtful debts has been estimated and arrived
at by the management and relied upon by us, give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the Accounting Standards
generally accepted in India:-
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010 and
b) In the case of Profit & Loss Account, of the profit for the year
ended on that date.
c) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
As required by the Companies (Auditors Report) Order, 2003 issued by
the Central Government in terms of Section 227(4A) of the Companies
Act, 1956 and on the basis of such checks as we considered appropriate,
we further state that:
i) In respect of Fixed Assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) The Fixed Assets have been physically verified by the management
during the year and discrepancies noticed on such verification have
been properly dealt with in the accounts.
c) In terms of Sanctioned Rehabilitation Scheme by AAIFR, part of fixed
assets was disposed off. However, it has not affected the status of
going concern since the company has diversified its business activities
and has set up a unit for manufacturing Industrial Gases and the same
is in operation.
ii) In respect of Inventories:
a) The inventory has been physically verified during the year by the
management at reasonable intervals.
b) In our opinion, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company is maintaining proper records of inventory and the
discrepancies noticed on physical verification of inventory as compared
to the book records were not material, have been properly dealt with in
the books of account.
iii) In respect of Loans:
a) The Company has not granted unsecured loans to the Companies, Firms
or other parties listed in the register maintained Under Section 301 of
the Companies Act, 1956 and accordingly clause 3 (a)to 3 (d) is not
applicable to it.
b) The Company has not taken any unsecured loans during the year from
the Holding Company and from any Associate company listed in the
register maintained under Section 301 of the Companies Act 1956.
However the year end balances of loans
c) Taken from such companies covered under Section 301 of the Companies
Act, 1956 were Rs. 310.71 lacs.
d) In our opinion, the rate of interest wherever applicable and other
terms and conditions on which such unsecured loans have been taken are
not, prima facie, prejudicial to the interest of the Company.
e) The unsecured loans are repayable on demand. In respect of interest
on such loans the Company can not make any payment of the interest as
per terms of Rehabilitation Scheme sanctioned by BIFR / AAIFR. As
informed to us the concerned parties have also agreed to waive off the
interest on their respective loans.
iv) In our opinion, and according to the information and explanations
given to us, there are adequate internal
control systems commensurate with the size of the Company and the
nature of its business for the purchases of inventory, fixed assets and
for the sale of goods and services. During the course of our audit, we
have not observed any major weaknesses in internal control systems.
V)
a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed to be entered into the register maintained
under section 301 of the Companies Act, 1956 has been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements ( exceeding the value of Rs. 5 lacs in respect of each
party during the year) have been made at prices which are generally
reasonable having regard to the prevailing market prices at the
relevant time.
vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public.
Therefore, the provisions of clause (vi) of the Companies (Auditors
Report) order, 2003 are not applicable to the Company.
vii) In our opinion, the Company has an internal Audit System
commensurate with the size and nature of its business. viii) As
informed to us, the Central Government has not prescribed maintenance
of cost records under Section 209 (1) (d) of the Companies Act, 1956
for any of the products of the Company.
ix) (a) According to the records of the Company, it is regular in
depositing undisputed statutory dues of Provident Fund, Employees
State Insurance, Income Tax, Service Tax, VAT, Excise duty, Cess and
other material statutory dues, with appropriate authorities except in
respect of Sales Tax. The undisputed statutory dues on account of Sales
Tax outstanding for more than six months at the year end are Rs. 9.14
lacs.
(b) According to the records of the Company, it has not deposited
disputed amount of statutory dues on account of Sales Tax, Excise duty,
ESI and PF for which the details are as hereunder: -
Nature of Year to which Amount Forum where dispute
is pending
the Dues it relates (Rs.
In Lacs)
Sales Tax 1982 to 1985 18.97 High Court at Chandigarh
1973 -1974 3.36 Tribunal at Kolkata
E.S.I 2002-2003 0.21 Employees Insurance court,
Faridabad
P.F. 1991-2001 4.81 Tribunal at New Delhi
x) The Company has been registered for a period of more than five years
and its accumulated losses at the end of the financial year are more
than 50% of its net worth. The Company has not incurred cash loss in
the current financial year as well as in the immediately preceding
financial year.
xi) The Company has not defaulted in repayment of any dues to Banks,
financial institutions and debenture holders.
xii) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) The Company has not given any guarantee for loans taken by others
from banks or Financial Institutions.
xiv) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund / society. Therefore, the provision of clause 4(XIII) of
the Companies (Auditors Report) Order , 2003 are not applicable to the
Company.
XV) In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provision of clause 4(XIV) of the Companies (Auditors Report) Order,
2003 are not applicable to the Company.
xvi) The Company has not taken any new term loans from Bank and/or
Financial Institutions during the year.
XVii) On the basis of information and explanations given to us and on
an overall examination of the financa statements of the Company,
funds raised on short term basis have, prima facie, not been used for
long term investments or towards repayment of long term borrowings.
xviii) The Company has not made during the year any preferential
allotment of shares to parties and companies covered in the Register
maintained U/S 301 of the Companies Act, 1956.
xix) The Company has neither issued debentures during the year nor any
creation of security is pending in respect of debentures raised in
earlier years.
xx) The Company has not raised any money by public issues during the
year.
XXi) Based upon on our audit procedure applied and according to the
information and explanation given to us and to the best of our
knowledge and belief no fraud on or by the Company has been noticed or
reported during the year.
PLACE : NEW DELHI FOR K.N. GUTGUTIA & COMPANY
DATE : 29th MAY,2010 CHARTERED ACCOUNTANTS
(B.R. GOYAL)
PARTNER
M.NO. 12172
ICAIS FRN 304153E