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HEG Ltd.

BSE: 509631 Sector: Engineering
NSE: HEG ISIN Code: INE545A01016
BSE LIVE 15:50 | 22 Sep 989.90 -52.05
(-5.00%)
OPEN

1068.00

HIGH

1068.00

LOW

989.90

NSE 15:42 | 22 Sep 991.15 -52.15
(-5.00%)
OPEN

1050.00

HIGH

1054.00

LOW

991.15

OPEN 1068.00
PREVIOUS CLOSE 1041.95
VOLUME 21704
52-Week high 1068.00
52-Week low 144.10
P/E
Mkt Cap.(Rs cr) 3,956
Buy Price 0.00
Buy Qty 0.00
Sell Price 989.90
Sell Qty 21409.00
OPEN 1068.00
CLOSE 1041.95
VOLUME 21704
52-Week high 1068.00
52-Week low 144.10
P/E
Mkt Cap.(Rs cr) 3,956
Buy Price 0.00
Buy Qty 0.00
Sell Price 989.90
Sell Qty 21409.00

HEG Ltd. (HEG) - Auditors Report

Company auditors report

INDEPENDENT AUDITORS’ REPORT

to the Members of

HEG LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of HeG Limited("the Company") which comprise the balance sheet as at 31st March 2016 thestatement of profit and loss and the cash flow statement for the year then ended and asummary of the significant accounting policies and other explanatory information.

Management’s Responsibility for the Standalone Financial Statements theCompany’s Board of directors is responsible for the matters stated in Section 134(5)of the Companies Act 2013("the Act") with respect to the preparation of thesestandalone financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with 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 judgments and estimates that are reasonable and prudent; andthe design implementation and maintenance of adequate internal financial control thatwere operating 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 standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder. We conducted our audit inaccordance with the Standards on Auditing specified under section 143(10) of the Act.those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement. An audit involves performing procedures to obtain audit evidenceabout the amounts and disclosures in the financial statements. the procedures selecteddepend on the auditor’s judgment including the assessment of the risks of thematerial misstatement of the financial statements whether due to fraud or error. Inmaking those risk assessments the auditor considers internal financial control relevantto the Company’s preparation of the financial statements that give a true and fairview in order to design audit procedures that are appropriate in the circumstances. Anaudit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by the Company’s directors as well asevaluating the overall 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 on the standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 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 section 143(11) of theAct we give in the Annexure "A" a statement on the matters specified inparagraphs 3 and 4 of the Order;

2. As required by section 143(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 it 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 standalone financial statements comply with the AccountingStandards specified 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 thedirectors as on 31st March 2016 and taken on record by the Board of directors none ofthe directors is disqualified as on 31st March 2016 from being appointed as a director interms of section 164(2) of the Act; f. With respect to the adequacy of the internalfinancial controls over financial reporting of the Company and the operating effectivenessof such controls refer to our separate Report in Annexure "B" to this report;and g. With respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us: i) theCompany has disclosed the impact of pending litigations on its financial position in itsfinancial statements- Refer note 31 & 32 to the financial statements; ii) As explainedto us the Company did not have any long term contracts including derivative contractstherefore the Company was not required to make any provision for material foreseeablelosses required under the applicable law or accounting standards; and iii) there has beenno delay in transferring amounts required to be transferred to the Investor educationand protection Fund by the Company.

For Doogar& Associates For S.S. Kothari Mehta & Co
Chartered Accountants Chartered Accountants
Firm Regn. no. 000561n Firm Regn. no. 000756n
M.K. Doogar Sunil Wahal
Partner Partner
M.no. 080077 M. no. 087294
place: noida (u.p)
date: 27th May 2016

Annexure A to the Independent Auditor’s Report to the members of HEG Ltd dated27th May 2016

Report on the matters specified in paragraph 3 of the Companies (Auditor’s Report)Order 2016 ("the Order’) issued by the Central Government of India in terms ofsection 143(11) of the Companies Act 2013 ("the Act") as referred to inparagraph 1 of ‘Report on Other Legal and Regulatory Requirements’ section

(i) (a) the Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) physical verification of fixed assets is being conducted by the management based ona program designed to cover all assets over a period of three years which in our opinionis reasonable having regard to the size of the Company and nature of its business.discrepancies noticed on such verification as compared to book records were not materialand have been properly adjusted in the books of account. (c) According to the informationand explanation given to us and on the basis of our examination of the records of theCompany the title deed of immovable properties are held in the name of the Company.

(ii) the inventories have been physically verified by the management during the year atall its locations except stocks located outside India lying with third parties and intransit which have been verified with reference to correspondence of third parties orsubsequent receipt of goods. In our opinion the frequency of verification is reasonable.no material discrepancies were noticed on such physical verification. Inventories lyingwith third parties have been confirmed by them as at year end and no materialdiscrepancies were noticed in respect of such confirmations.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to Companies firms Limited Liabilitypartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013. Accordingly the provisions of clause 3(iii) (a) to (c) of the Orderare not applicable to the Company and hence not commented upon.

(iv) In our opinion and according to the information and explanations given to us thecompany has given a guarantee jointly with another Company to a financial institution forloan taken by others and made investments which are covered under the provisions ofsection 185 and 186 of the Companies Act 2013 the terms and conditions of which are primafacie not prejudicial to the interest of the company.

(v) the Company has not accepted any deposits from the public within the meaning ofdirectives issued by the Reserve Bank of India and provisions of sections 73 to 76 or anyother relevant provisions of the Companies Act 2013 and the rules framed thereunder arenot applicable.

(vi) We have broadly reviewed the books of account relating to materials labour andother items of cost maintained by the Company as specified by the Central Government ofIndia under section 148(1) of the Companies Act 2013 and are of the opinion that primafacie the prescribed accounts and records have been made and maintained. We have nothowever made a detailed examination of the records with a view to determine whether theyare accurate and complete. (vii) (a) According to the information and explanations givento us and the records of the Company examined by us in our opinion the Company isgenerally regular in depositing undisputed statutory dues in respect of provident fundemployees’ state insurance income tax sales tax service tax customs duty exciseduty cess and other material statutory dues as applicable with the appropriateauthorities. Further there were no undisputed amounts outstanding at the year-end for aperiod of more than six months from the date they became payable.

(b) According to the information and explanations given to us and the records of theCompany examined by us there are no dues of Custom duty which have not been deposited onaccount of any dispute except the following in respect of Income tax excise dutyService tax and Sales tax which have not been deposited on account of any dispute are asfollows: -

Name of the Statute Nature of Dues Amount Period Assessment to which the Forum where the
(Rs. in Lacs) amount relates dispute is pending
1 Central excise Act excise duty 299.61 2002-03 2003-04 2004-05 CeStAt new delhi
1944 2005-06 2006-07 2007-08
1.42 2004-05 Hon’ble High Court
Jabalpur
2.15 2013-14 Commissioner (Appeal)
Bhopal
2 Income tax Act1961 Income tax 1064.75 Assessment year 2014-15 CIt (Appeals) Bhopal
2013-14 2012-13 2008-09
516.00 Assessment year 2003-04 Hon’ble High Court
2004-05 Jabalpur
Income tax penalty 20.00 Assessment year 2011-12 CIt (Appeals) Bhopal
Income tax penalty 20.00 Assessment year 2010-11 CIt (Appeals) Bhopal
3 Finance Act 1994 Service tax and 1640.39 2006-07 2008-09 CeStAt new delhi
penalty 2009-10 2010-112011-12
2012-13 2013-14
Service tax and 109.64 2012-13 Commissioner of excise
penalty and Customs Bhopal
4 Central Sales tax Act 20.89 2002-03 Sales tax tribunal Bhopal
1956
Central Sales tax
Central Sales tax Act 21.30 2003-04 Hon’ble High Court
1956 Jabalpur
5 Madhya pradesh entry tax 311.54 2010-11 2011-12 and 2012-13 Commissioner (Appeals)
parvesh Kar Bhopal
Adhiniyam 1976 131.09 2002-03 2006-07 Appellate tribunal
2007-08 2008-09 2009-10 Bhopal
20.11 1997-98 2003-04 Hon’ble High Court
Jabalpur
6 Chhattisgarh VAt 3.03 2006-07 Commissioner (Appeals)
Commercial tax Raipur
1.51 1992-93 Appellate tribunal
Raipur
entry tax 9.79 2005-06 Appellate tribunal
Raipur
entry tax 12.00 2007-08 Commissioner (Appeals)
Raipur

(viii) According to the records of the Company examined by us and the information andexplanations given to us in our opinion the Company has not defaulted in repayment ofits dues to Governments banks and financial institutions. the Company has not taken anyloans from debenture holders.

(ix) Based on our audit procedures and according to the information and explanationsgiven to us the Company has not raised any money by way of initial public offer / furtherpublic offer. Further based on our audit procedures and according to the information andexplanations given to us and on an overall examination of the balance sheet we reportthat monies raised by way of term loans were applied for the purposes for which those wereraised.

(x) during the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India we haveneither come across any instance of fraud on or by the Company by its officer or employeesnoticed or reported during the year nor have we been informed of such case by themanagement.

(xi) Based on our audit and according to the information and explanations given to uswe report that the managerial remuneration has been paid / provided in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act 2013.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. therefore the provisions of clause 3(xii) of the orderare not applicable to the Company and hence not commented upon.

(xiii) Based on our audit procedures and according to the information and explanationsgiven to us transactions with the related parties are in compliance with section 177 and188 of Companies Act 2013 where applicable and the details have been disclosed in thenotes to the financial statements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us and on an overallexamination of the balance sheet the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review and hence reporting requirements under clause 3(xiv) are not applicable tothe Company and not commented upon.

(xv) Based on our audit procedures and according to the information and explanationsgiven to us the Company has not entered into any non-cash transactions with directors orpersons connected with him as referred to in Section 192 of Companies Act 2013.

(xvi) According to the information and explanations given to us the Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.

For Doogar& Associates For S.S. Kothari Mehta & Co
Chartered Accountants Chartered Accountants
Firm Regn. no. 000561n Firm Regn. no. 000756n
M.K. Doogar Sunil Wahal
Partner Partner
M.no. 080077 M. no. 087294
place: noida (u.p)
date: 27th May 2016

Annexure ‘B’ to the independent Auditor’s Report to the Members of HEGLimited dated May 27 2016

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act") as referred to in paragraph 2(f) of‘Report on other legal and regulatory requirements’ section

We have audited the internal financial controls over financial reporting of HeG Limited("the Company") as of 31st March 2016 in conjunction with our audit of thefinancial statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls the Company’smanagement is responsible for establishing and maintaining internal financial controlsbased on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance note onAudit of Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India. these responsibilities include the design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the orderly and efficient conduct of its business including adherence to theCompany’s policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditor’s 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 as specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. those Standards and theGuidance note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects.

An audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial control system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. the proceduresselected depend on the auditor’s judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the internal financial controls over financialreporting.

Meaning of Internal Financial Controls over Financial Reporting A company’sinternal financial control over financial reporting is a process designed to providereasonable assurance regarding the reliability of financial reporting and the preparationof financial statements for external purposes in accordance with generally acceptedaccounting principles. A Company’s internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany’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 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 control system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st 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 Doogar& Associates For S.S. Kothari Mehta & Co
Chartered Accountants Chartered Accountants
Firm Regn. no. 000561n Firm Regn. no. 000756n
M.K. Doogar Sunil Wahal
Partner Partner
M.no. 080077 M. no. 087294
place: noida (u.p)
date: 27th May 2016