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Hardcastle & Waud Mfg Co Ltd.

BSE: 509597 Sector: Consumer
NSE: N.A. ISIN Code: INE722D01015
BSE LIVE 12:05 | 21 Sep 281.50 13.00
(4.84%)
OPEN

255.20

HIGH

281.85

LOW

255.20

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 255.20
PREVIOUS CLOSE 268.50
VOLUME 330
52-Week high 315.00
52-Week low 250.05
P/E 31.21
Mkt Cap.(Rs cr) 19
Buy Price 265.25
Buy Qty 30.00
Sell Price 281.50
Sell Qty 50.00
OPEN 255.20
CLOSE 268.50
VOLUME 330
52-Week high 315.00
52-Week low 250.05
P/E 31.21
Mkt Cap.(Rs cr) 19
Buy Price 265.25
Buy Qty 30.00
Sell Price 281.50
Sell Qty 50.00

Hardcastle & Waud Mfg Co Ltd. (HARDCASTWAUD) - Auditors Report

Company auditors report

To the Members of HARDCASTLE AND WAUD MANUFACTURING COMPANY LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of Hardcastleand Waud Mfg. Co.Limited ("the Company") which comprise the Balance Sheet as at March 31st2016 and the Statement of Profit and Loss and Cash Flow Statement for the year then endedand a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

The Company’s Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgements and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We have conducted our audit in accordance with the Standards on Auditing specifiedunder section 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation and fair presentation of the financial statements in order to design auditprocedures that are appropriate in the circumstances but not for the purposeof expressingan opinion on the effectiveness of the entity’s Internal Control. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by Company’s Directors as well as evaluating theoverall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion. opinion

In our opinion and to the best of our information and according to the explanationsgiven to usthe financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2016 and its loss and its 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 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection143 of the Act we give in the Annexure a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

2. As required by section143(3) of the Act we report that: a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purpose of our audit; b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as appears from ourexamination of those books c) The Balance Sheet Statement of Profit and Loss and CashFlow Statement dealt with by this Report are in agreement with the books of account. d) Inour opinion the aforesaid financial statements comply with the accounting standardsspecified under section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. e) On the basis of written representations received from the directors as on31st March 2016taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms ofsection 164 (2) of the Act. f) With respect to the adequacy of the internal financialcontrols over financial reporting of the Company and the operating effectiveness of suchcontrols refer to our separate report in "Annexure B"; and g) In our opinionand to the best of our information and according to the explanations given to us wereport as under with respect to other matters to be included in the Auditor’s Reportin accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014: i) TheCompany has disclosed the impact of pending litigations on its financial position in itsfinancial statements-Refer Note no.23.1 of the financial statements. ii) The Company didnot have any long-term contracts including derivative contracts; as such the question ofcommenting on any material foreseeable losses thereon does not arise. iii) There were noamounts which were required to be transferred to the Investor Education and ProtectionFund by the Company.

For GMJ & co
Chartered Accountants
Firm’s Regn. No. 103429W
cA Atul Jain
Place: Mumbai Partner
Date: 30th May 2016 M. No. 037097

ANNEXURE TO INDEPENDENT AUDITOR’S REPORT

Ref.: HARDCASTLE AND WAUD MANUFACTURING COMPANY LIMITED

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets. (b) Some of the fixed assets werephysically verified during the year by the management in accordance with a phasedprogramme of verificationwhich in our opinion provides for physical verification of allthe fixed assets at reasonable intervals .No material discrepancies between the booksrecords and physical inventory have been noticed.

(c) The title deeds of immovable properties held as Fixed assets/Long term investmentsare in the name of the company.

(ii) The physical verification of inventory has been conducted at reasonable intervalsby the management and no material discrepancies were noticed.

(iii) The Company has not granted loans secured or unsecured to any firms companiesor other parties covered in the register maintained under Section 189 of the CompaniesAct2013( the Act ) and hence the provisions of clauses (iii) (a) (b) and(c) of paragraph3 of the Order are not applicable to the Company.

(iv) In respect of investments provisions of Section 185 and 186 of the Companies Act2013 have been complied with.

(v) The Company has not accepted any deposits from the public within the meaning ofSections 73 to 76 of the Act and the rules framed there under to the extent notified.

(vi) The Central Government of India has not prescribed the maintenance of cost recordsunder subsection (1) of Section 148 of the Act for any of the activities of the Company.

(vii) According to the records of the Company examined by us and the information andexplanations given to us:

(a) The company is generally regular in depositing undisputed statutory dues includingprovident fund employees’ state insurance income-tax sales-tax service tax dutyof customs duty of excise value added tax cess and other statutory dues with theappropriate authorities. There were no undisputed amounts payable for a period of morethan six months from the date they became payable.

(b) Details of dues of Sales tax and duty of excise which have not been deposited as atMarch 312016 on account of dispute are given below:

Nature of Statue Nature of Dues Forum where dispute is pending Period to which the Amount relates Amount Involved (in Rs.)
Sales Tax Sales Tax Deputy Commissioner (Ct) Chennai 2002-03 2003-04 308496
Sales Tax Sales Tax Appealant Assistant Commisioner Chennai 2009-10 2010-11 84599
Sales Tax Sales Tax Special Court Chennai 1991-92 2002-03 2005-06 167183
Sales Tax Sales Tax Appealant Assistant Commissioner Chennai 2001-02 2002-03 2003-04 2004-05 2005-06 711378
Sales Tax Sales Tax Commercial Tax Officer Chennai 2001-02 2002-03 2003-04 2004-05 141681
Sales tax Sales tax DY Comm. OF Sales Tax Appeals 2000-2001 267492
Sales tax Sales tax Assessing Officer 2004-05 330744
Sales tax CST CST Refund order pending Chennai 2005-06 11703
Central Excise Excise Duty & Penalty CCE (APPEALS) Mumbai 1988-89 889214
Central Excise Excise Duty & Penalty CCE (APPEALS) Mumbai 1988-89 69641

There were no dues of Income taxduty of customs service tax and value added tax whichhave not been deposited as at March 312016 on account of dispute (viii) The company hasnot taken any loan from any Financial Institution Bank or Government and have not issuedany debentures.

(ix) The company has not raised money by way of initial public offer or further publicoffer and term loans therefore this clause in not applicable. (x) To the best of ourknowledge and belief and according to the information given to us .No fraud by the companyor on the company by its officers or employees has been noticed or reported during theyear.

(xi) Managerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V of the CompaniesAct 2013.

(xii) As the company does not fall into the category of nidhi company hence thisclause is not applicable to the company.

(xiii) According to the information and explanation given to us all transactions withthe related parties are in compliance with Sections 177 and 188 of the Companies Act 2013where applicable and the details have been disclosed in the Financial Statements etc. asrequired by the applicable accounting standards. (xiv) The Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review.

(xv) According to the information and explanations given to us the Company has notentered into any non-cash transactions with directors or persons connected with him underthe provisions of section 192 of Companies Act 2013.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934

For GMJ & co
Chartered Accountants
Firm’s Regn. No. 103429W
cA Atul Jain
Place: Mumbai Partner
Date: 30th May 2016 M. No. 037097

ANNEXURE - B TO THE AUDITORS’ REPORT

Report on the internal Financial controls under clause (i) of Sub-section 3 of Section143 of the companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of Hardcastleand Waud Mfg. Co. Limited(‘the Company’) as of 31 March 2016 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.

Management’s Responsibility for internal Financial controls

The Company’s management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI’). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company’s policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects. Our auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor’s judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company’s internal financial controls system over financialreporting.

Meaning of internal Financial controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany’s assets that could have a material effect on the financial statements. inherentLimitations of internal Financial controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate. opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

FOR GMJ & CO
Chartered Accountants
Firm’s Regn. No. 103429W
Ca Atul Jain
Place: Mumbai Partner
Date: 30th May 2016 M. No. 037097