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Hindustan Appliances Ltd.

BSE: 531918 Sector: Others
NSE: N.A. ISIN Code: N.A.
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Hindustan Appliances Ltd. (HINDAPPLIANCES) - Auditors Report

Company auditors report

TO THE MEMBERS OF HINDUSTAN APPLIANCES LIMITED REPORT ON STANDALONE FINANCIALSTATEMENTS.

We have audited the accompanying standalone financial statements of M/s. HindustanAppliances Limited (‘the Company') which comprise the balance sheet as at 31 March2017 the statement of profit and loss and the cash flow statement for the year thenended and 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 matter stated in section 134(5)of the Companies Act2013 (The Act) with respect to the preparation and presentation ofthese Financial statements that give a true and fair view of the financial position andfinancial performance and cash flow of the Company in accordance with the Accountingprinciples generally accepted in India including the accounting standards specifiedu/s.133 of the Act read with Rule 7 of the Companies (Accounts) Rules2014.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the Assets of the company andfor preventing and detecting frauds and other irregularities selection and application ofappropriate accounting policies making judgments and estimates that are reasonable andprudent and design implementation and maintenance of the adequate internal financialcontrol that were operating effectively for ensuring the accuracy and completeness of theaccounting record relevant to the preparation and presentation of financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.

AUDITORS' 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 and the rules made thereunderincluding the accounting and auditing standards and matters which are required to beincluded in the Audit report under the provisions of the Act and the Rules madethereunder.

We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act and other applicable authoritative pronouncement issued by theinstitute of Chartered Accountants of India. Those Standards and pronouncements requirethat 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 anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders 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 accounting policies used and the reasonableness of the accountingestimates made by the company's Directors as well as evaluating the overall presentationof 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 March 31 2017 and its profit and its cash flow 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 bythe Central Government of India in terms of sub Section 11 of section 143 of theAct("the Order") and on the basis of such checks of the books and records ofthe company as we considered appropriate and according to information and explanationsgiven to us we give in the "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order toThe extent applicable.

2) 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 bestof our knowledge and belief were necessary for the purpose of our audit!

b) In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss and cash flow statement dealtwith by this Report are in agreement with the books of account.

d) In our opinion the aforesaid standalone financial statements comply with AccountingStandards specified under section 133 of the Act read with the Rule 7 of the Companies(Accounts) Rules 2014.

e) On the basis of the written representations received from the directors as on March31 2017 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of Section 164(2) of theAct.

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 B"; and

g) With respect to the other matters to be included in the Auditors 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 explanation given to us!

1) There was no any pending litigation which would impact the

financial position of the company.

2) The Company did not have any long term contracts including

derivative contracts.

3) There were no amounts which were required to be transferred to

the Invest$EEducation and Protection Fund by the Companv.

4) The company has provided requisite disclosure in its financial statements as toholdings as well as dealings in Specified Bank Notes (SBN) during the period from November082016 to December 302016 and these are in accordance with the books of accountsmaintained by the company. (Refer Note No. 17)

Placed Mumbai

Date: 30th May2017

Annexure ~ A to the Auditors' Report

The Annexure referred to in Independent Auditors' Report to the members of the

Company on the standalone financial statements for the year ended 31 March

2017 we report that-

1. In respect of its fixed assets'

Based on our scrutiny of the company's books of accounts and other records andaccording to the information and explanations received by us from the management we areof the opinion that the question of commenting on maintenance of proper records of fixedassets and physical verification of fixed assets does not arise since the company had nofixed assets at the end of the financial year nor at any time during the financial yearended on that date.

2. In respect of its inventories:

The company does not engaged in the business of manufacturing marketing and processingof any goods and articles. Accordingly it does not hold any physical inventories. Thusthe paragraph 3(ii) of the order is not applicable.

3. In respect of loan given:

According to the information and explanations given to us the company has not givenany unsecured loans to the persons covered under the register maintained u/s.189 of theCompanies Act2013 (The Act). Accordingly paragraph 3(iii) of the Order is not applicableto the Company

4. In our opinion and according to the information and explanations given to us theCompany has not given any new loans or made any new investment during the year and hencereporting related to compliance with the provisions of section 185 and 186 of the Act doesnot required.

5. The company has not accepted any deposits from the public within the meaning ofsection 73 to 76 of the Act and the Rules framed thereunder to the extent notified.

6. The Central Government has not prescribed the maintenance of cost records undersection 148(l) of the Act.

7. In respect of statutory dues:

a) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund income taxsales tax wealth tax service tax duty of customs value added tax cess and othermaterial statutory dues have been regularly deposited during the year by the company withthe appropriate authorities. As explained to us the Company did not have any dues onaccount of state insurance and duty of excise. According to the Information andExplanations given to us no undisputed amounts payable in respect of the aforesaid dueswere outstanding as at 31st March 2017 for a period of more than six months from the dateof becoming payable.

b) There are no any dues of Income Tax Sales Tax Wealth Tax Service Tax and otherstatutory dues which have not been deposited on account of any disputes

c) According to the information and explanations given to us there are no any amountrequired to be transferred to investor education and protection fund in accordance withthe relevant provisions of the Companies Act 1956 (1 of 1956) and rules made thereunder.

8. The Company does not have any loans or borrowings from any financial institutionbanks government or issued debenture till the end of the financial year. Accordinglyparagraph 3 (viii) of the Order is not applicable

9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year. Accordingly paragraph3 (ix) of the Order is not applicable.

10. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

11. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not paid/provided formanagerial remuneration and Accordingly paragraph 3 (xi) of the Order is not applicable.

12. In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Orderis-nafe-aDDlicable.

13. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

14. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

15. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non'cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

16. The Company is not required to be registered under section 45TA of the Reserve Bankof India Act 1934.

For A.C.MODI & ASSOCIATES

Chartered Accountants

ALPESirc.MODt

Proprietor

Membership number: 101342

Place: Mumbai

Date:30th May2017

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 ofM/s.Hindustan Appliances Limited (‘the Company') as of 31 March 2017 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat 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 andmaintam&gLand if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls 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 Company's internal financial controls systemover 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 (l) 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 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 2017 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 A.C.MODI & ASSOCIATES

Chartered Accountants

ALPESH C.MODI

Proprietor

Membership number: 101342

Place: Mumbai

Date: 30th May2017