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Hercules Hoists Ltd.

BSE: 505720 Sector: Engineering
NSE: HERCULES ISIN Code: INE688E01024
BSE LIVE 15:42 | 20 Sep 146.55 -0.30
(-0.20%)
OPEN

148.00

HIGH

150.00

LOW

146.00

NSE 15:42 | 20 Sep 146.35 -0.65
(-0.44%)
OPEN

147.00

HIGH

149.80

LOW

146.10

OPEN 148.00
PREVIOUS CLOSE 146.85
VOLUME 13406
52-Week high 196.00
52-Week low 125.00
P/E 293.10
Mkt Cap.(Rs cr) 469
Buy Price 146.55
Buy Qty 257.00
Sell Price 0.00
Sell Qty 0.00
OPEN 148.00
CLOSE 146.85
VOLUME 13406
52-Week high 196.00
52-Week low 125.00
P/E 293.10
Mkt Cap.(Rs cr) 469
Buy Price 146.55
Buy Qty 257.00
Sell Price 0.00
Sell Qty 0.00

Hercules Hoists Ltd. (HERCULES) - Auditors Report

Company auditors report

To the Members of HERCULES HOISTS LIMITED Report on the Financial Statements

We have audited the accompanying financial statements of HERCULES HOISTS LIMITED("the Company") which comprise the Balance Sheet as at March 31 2017 theStatement of Profit and Loss and Cash Flow Statement for the year ended and a summary ofsignificant 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 preparationand presentation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors' 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 thereunder. We conducted our audit in accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Board of Directors as well as evaluating the overallpresentation 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 financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner 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 2017 and its profit 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 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure A a statement on the matters specified in paragraphs 3and 4 of the order to the extent applicable.

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 appears from ourexamination of those books; c. The Balance Sheet the Statement of Profit and Loss andthe Cash Flow Statement dealt with by this Report are in agreement with the books ofaccount; d. In our opinion the aforesaid 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 the written representations received from thedirectors as on 31 March 2017 taken on record by the Board of Directors none of thedirectors is disqualified as on 31 March 2017 from being appointed as a director in termsof Section 164 (2) of the Act; f With respect to 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. With respect tothe other matters to be included in the Auditor's Report in accordance with Rule 11 of theCompanies

(Audit and Auditors) Rules 2014 in our opinion and to the best of our information andaccording to the explanations given to us: i. The Company has disclosed the impact ofpending litigations on its financial position in its financial statements – ReferNote No. 17 (a) to the financial statements; ii. The Company did not have any long-termcontracts including derivative contracts for which there were any material foreseeablelosses; and iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and

Protection Fund by the company. iv. The Company had provided requisite disclosures inthe financial statements as to holdings as well as dealings in Specified Bank Notes duringthe period from 8th November 2016 to 30th December 2016. Based on audit procedures andrelying on the management representation we report that the disclosures are in accordancewith books of account maintained by the Company and as produced to us by the Management -Refer Note No 37 of the financial statements.

For and on behalf of
M. L. BHUWANIA AND CO LLP
Chartered Accountants
Firm's Registration No. 101484W/W100197
J. P. Bairagra
Partner Place : Mumbai
Membership No.12839 Dated : May 30 2017

Annexure- A referred to in paragraph titled as "Report on other Legal andRegulatory Requirements" of Auditor's report to the members Hercules Hoists Limitedfor the year ended 31st March 2017.

On the basis of the records produced to us for our verification / perusal such checksas we considered appropriate and in terms of information and explanation given to us onour enquiries we state that: (i) (a) The company is maintaining proper records showingfull particulars including quantitative details and situation of fixed assets.

(b) The fixed assets of the Company are physically verified by the Management accordingto a phased programme designed to cover all the items over a period of three years whichin our opinion is reasonable having regard to the size of the Company and the nature ofits assets. Pursuant to the programme a portion of the fixed assets has been physicallyverified by the Management during the year and discrepancies noticed between the bookrecords and the physical inventories were not material and have been properly dealt within the accounts.

(c) According to information and explanations given to us and on the basis of ourexamination of the records of the

Company the title deeds of immovable properties are held in the name of the Company.

(ii) During the year the inventories have been physically verified by the management.In our opinion the frequency of verification is reasonable. The discrepancies noticed onphysical verification of inventories as compared to the book records have been properlydealt with in the books of account.

(iii) (a) During the year the Company has not granted any loan to companies covered inthe register maintained under

Section 189 of the Companies Act 2013. In respect of loan given in earlier year therate of interest and other terms and conditions are prima facie not prejudicial to theinterest of the Company. (b) There are stipulation with respect to the repayment of theloan and interest. The parties are regular in repayment of principle and interest duethereon.

(c) The Company does not have any principal and interest amount overdue for more than90 days with respect to the loans granted to companies covered in the register maintainedunder Section 189 of the Companies Act 2013 as at 31st March 2017 except Interest of Rs.3.93 Lakhs.

(iv) T he company has complied with provisions of section 186 of the Companies Act2013 in respect of investments made and section 185 of the Companies Act 2013 is notapplicable as there were no such loans securities or guarantees provided during the year.

(v) The Company has not accepted any deposits from the public. Accordingly clause 3(v) of the Order is not applicable to the

Company.

(vi) The Central Government has prescribed maintenance of cost records for the companyunder sub section (1) of section 148 of the Companies Act 2013 and such accounts andrecords have been made and maintained by the Company. However no detailed examinations ofsuch records have been carried out by us. (vii) (a) According to the records of theCompany the Company is regular in depositing undisputed statutory dues including

Provident Fund Employees' State Insurance Income Tax Sales Tax Service Tax ExciseDuty Customs Duty Value Added Tax Cess and other statutory dues applicable to it withthe appropriate authorities except municipal tax of Rs.7290. According to the informationand explanations given to us undisputed amounts payable were outstanding as at the lastday of the financial year for a period of more than six months from the date they becamepayable Municipal Tax of Rs. 7290.

(b) According to the records of the Company there are no dues of Wealth Tax ValueAdded Tax Sales Tax and Customs

Duty which have not been deposited on account of any dispute.

The disputed amounts that have not been deposited in respect of Income Tax Service Taxand Excise Duty are as under:

Name of the Statue Nature of the Dues Amount (Rs. in Lakhs) Financial Year to which the amount relates Forum where dispute is pending
Income Tax Act 1961 Income Tax Dues relating to House Property 4.42 2008-09 Commissioner of Income Tax (Appeal)
Demand of Service Tax on Royalty 1.69 1999-00 to 2003-04 Deputy Commissioner of Central Excise & Service Tax
Demand of Excise Duty on Sales under notification and duty on conference expenses. 72.57 2009-10 Central Excise Appellate Tribunal
Central Excise Act 1944 Duty on Sale of Power units & disallowance of Common Input 211.04 2009-10 to 2015-16 Commissioner of Central Excise
Service Tax Credit
Disallowance of Common Input 1.97 2014-15 Commissioner of Central
Service Tax Credit Excise (Appeal)
Disallowance of Input Credit 23.86 2008-09 to 2014-15 Additional Commissioner of Central Excise

(viii) A ccording to the records of the Company examined by us and the information andexplanation given to us the Company has not defaulted in repayment of dues to banksduring the year. The Company has not taken any loan or borrowing from governmentfinancial institutions and has not issued debentures during the year. (ix) The Company didnot raise any money by way of initial public offer or further public offer (including debtinstruments) and through term loans during the year. Accordingly clause 3 (ix) of theOrder is not applicable to the Company.

(x) Based upon the audit procedures performed and information and explanations given bythe management we report that no fraud by the Company or no fraud on the Company by itsofficers or employees has been noticed or reported during the year.

(xi) In our opinion and according to the information and explanations given to us themanagerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of Sec 197 read with Schedule V to the Companies Act2013.

(xii) In our opinion and according to the information and explanations given to us thenature of activities of the Company does not attract any special statute applicable toNidhi Company. Accordingly clause 3 (xii) of the Order is not applicable to the Company.

(xiii) According to the information and explanation given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Sec 177 and 188 of Companies Act 2013 where applicable and details ofsuch transactions have been disclosed in the financial statements as required by theapplicable accounting standards.

(xiv) In our opinion and according to the information and explanations given to us andbased on our examination of the records of the Company the company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year. Accordingly clause 3 (xiv) of the Order is not applicable tothe Company.

(xv) In our opinion and according to the information and explanations given to us andbased on our examination of the records of the Company the company has not entered intoany non-cash transactions with directors or persons connected with him. Accordinglyclause 3 (xv) of the Order is not applicable to the Company.

(xvi) The company is not required to be registered under Sec 45-IA of the Reserve Bankof India Act 1934. Accordingly clause 3 (xvi) of the Order is not applicable to theCompany.

For and on behalf of
M. L. BHUWANIA AND CO LLP
Chartered Accountants
Firm's Registration No. 101484W/W100197
J. P. Bairagra
Partner Place : Mumbai
Membership No.12839 Dated : May 30 2017

Annexure- B referred to in paragraph titled as "Report on the Internal FinancialControls under clause (i) of Sub- section 3 of Section 143 of the Companies Act2013" ("the Act")

We have audited the internal financial controls over financial reporting of HerculesHoists Limited ("the Company") as of 31 March 2017 in conjunction with our auditof the 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 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 safeguarding ofits 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 process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting 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 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.

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 except financial control with respect to inventory which needs to bereviewed for further strengthening the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31 March 2017 based onthe 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.

For and on behalf of
M. L. BHUWANIA AND CO LLP
Chartered Accountants
Firm's Registration No. 101484W/W100197
J. P. Bairagra
Partner Place : Mumbai
Membership No.12839 Dated : May 30 2017