Hi-Tech Pipes Ltd.
|BSE: 532601||Sector: Metals & Mining|
|NSE: HITECH||ISIN Code: INE106T01017|
|BSE LIVE 05:30 | 01 Jan||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
|BSE: 532601||Sector: Metals & Mining|
|NSE: HITECH||ISIN Code: INE106T01017|
|BSE LIVE 05:30 | 01 Jan||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
HI-TECH PIPES LIMITED.
Report on Financial Statements
We have audited the attached Balance Sheet of HI-TECH PIPES LIMITED. whichcomprise the Balance Sheet as at March 31 2016 and the Statement of Profit and Loss andCash Flow Statement for the year then ended and a summary of significant accountingpolicies and other explanatory information.
Management's Responsibility for the Financial Statements
The management and the Board of Directors of the Company are responsible for thematters stated in Section 134(5) of the Companies Act 2013 (the act') with respectto the preparation of these financial statements that give a true and fair view of thefinancial position financial performance of the company in accordance with the accountingstandards referred to in section 133 of the Companies Act 2013 read with rule 7 ofCompanies (Accounts) Rules 2014. This responsibility includes the design implementationand maintenance of internal control relevant to the preparation and presentation of thefinancial statements that gives a true and fair view and is free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing specified underSection 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 material misstatement.
An audit involves performing procedure to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risk of material misstatements of the financialstatements whether due to fraud or error. In making those risk assessments we considerinternal control relevant of the company's preparation and fair presentation of thefinancial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management aswell as evaluating the overall presentation of the financial statements. We believe thatthe audit evidence we have obtained in sufficient and appropriate to provide a basis forour audit opinion.
In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprincipal generally accepted in India:
And subject to above give a true and fair view:-
i) In the case of Balance Sheet of the State of affairs of the Company as at March 312016.
ii) In the case of Statement of Profit & Loss of the Profit of the Company for theperiod ended on that date.
iii) In the case of Cash Flow Statement of the Cash Flows for the period ended on thatdate.
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 Companies Act 2013 we give in the Annexure-1 a statement on the matters specifiedin paragraph 3 & 4 of the order.
2. As required by Section 143(3) of the Act we further report that:
a) We have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit.
b) In our opinion proper books of accounts as required by law have been kept by theCompany so far it appears from our examination of these books.
c) The Balance Sheet Statement of Profit and Loss dealt with in this report are inagreement with the books of accounts.
d) In our opinion Balance Sheet the Statement of Profit and Loss comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
e) On the basis of written representations received from the directors as on March 312016 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of Section 164 (2) ofthe Act.
f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in Annexure 2 to this report.
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) Rules2014 in ouropinion 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 financialposition in its financial statements Refer Note 26(c) to the financial statements.
ii) The Company did not have any long term contracts for which there were any materialforeseeable losses.
iii) There were no amounts which were required to be transferred to the investoreducation and protection fund by the Company.
Annexure- 1 To The Independent Auditor's Report
Referred to in paragraph 1 under the heading of Report on Other Legal andRegulatory Requirements of our report of even date
On the basis of such checks as we considered appropriate and according to theinformation and explanation given to us during the course of our audit we report that:
(i) (a) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;
(b) These fixed assets have been physically verified by the management at reasonableintervals and any material discrepancies were not noticed on such verification;
(c) The title deeds of immovable properties are held in the name of the company.
(ii) Physical verification of inventory has been conducted at reasonable intervals bythe management and any material discrepancies were not noticed. Inventories lying withthird parties have been confirmed by them as at March 31 2016 and no materialdiscrepancies were noticed in respect of such confirmations.
(iii) According to the information and explanations given to us the company has notgranted loans secured or unsecured to companies firms Limited Liability Partnerships orother parties covered in the register maintained under section 189 of the Companies Act2013. Accordingly the provisions of clause 3(iii) (a) (b) and (c) of the order notapplicable to the company.
(iv) According to the information and explanations given to us there are no loansinvestments guarantees and securities granted in respect of which provisions of section185 and 186 of the Companies Act 2013 are applicable and therefore not commented.
(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits during the year to which directives issued by theReserve Bank of India and provisions of section 73 to 76 of the Companies Act 2013 andrules framed there under.
(vi) We have broadly reviewed the cost records maintained by the Company pursuant tothe Companies (Cost Records and Audit) Rules 2014 as amended prescribed by the CentralGovernment under sub section (1) of Section 148 of the Companies Act 2013 and are of theopinion that prima facie the prescribed cost records have been made and maintained. Wehave however not made a detailed examination of the cost records with a view todetermine whether they are accurate or complete.
(vii) (a) As explained to us and as per the books and records examined by usundisputed statutory dues including Provident Fund Employees State Insurance Income TaxCustom Duty Wealth Tax Sales Tax Excise duty Cess and other statutory dues have beengenerally deposited with the appropriate authority.
(b) According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income-tax service taxsales-tax duty of custom duty of excise value added tax cess and other materialstatutory dues were outstanding at the year end for a period of more than six monthsfrom the date they became payable.
(c) According to the information and explanations given to us by the management andrelied upon by us there are no dues of Income Tax Custom Duty Wealth Tax Sales TaxExcise duty & Cess which have not been deposited on account of any dispute except thefollowing Statutory dues pending before appropriate authority as follows:
(viii) In our opinion and according to the information and explanations given by themanagement the Company has not defaulted in repayment of dues bank or financialinstitutions. The Company did not have any outstanding in respect of debentures during theyear.
(ix) In our opinion and according to the information and explanations given by themanagement the company has utilized money raised by way of initial public offer during theyear were applied for the purposes for which those are raised. Further term loans takenby the company has been utilized for the purposes for which they were raised.
(x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management we report that no fraud by the company or no fraud / materialfraud on the company by the officers and employees of the Company has been noticed orreported during the year.
(xi) According to the information and explanations given by the management managerialremuneration has been paid or provided in accordance with the requisite approvals mandatedby the provisions of section 197 read with Schedule V to the Companies Act.
(xii) In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 3(xii) of the order are not applicable to the Company.
(xiii) According to the information and explanations given by the management alltransactions with the related parties are in compliance with sections 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the FinancialStatements 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.
(xv) According to the information and explanations given by the management the companyhas not entered into any non-cash transactions with directors or persons connected withhim as per the provisions of section 192 of Companies Act 2013.
(xvi) According to the information and explanations given by the management provisionof section 45-IA of the Reserve Bank of India Act 1934 are not applicable to company.
Annexure- 2 To The Independent Auditor's Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 (the Act)
To the Members of Hi-Tech Pipes Limited
We have audited the internal financial controls over financial reporting of Hi-TechPipes Limited (the Company) as of March 31
2016 in conjunction with our audit of the standalone financial statements of theCompany 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
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. Our audit involves performing procedures to obtainaudit evidence about the adequacy of the internal financial controls system over financialreporting and their operating effectiveness. Our audit of internal financial controls overfinancial reporting included obtaining an understanding of internal financial controlsover financial reporting assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the internal financial controlssystem over financial reporting.
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 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.
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 March 31 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.