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Hindusthan Udyog Ltd.

BSE: 513039 Sector: Engineering
NSE: N.A. ISIN Code: INE582K01018
BSE LIVE 10:23 | 07 Aug Stock Is Not Traded.
NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 3.16
PREVIOUS CLOSE 3.10
VOLUME 400
52-Week high 3.16
52-Week low 3.16
P/E 3.55
Mkt Cap.(Rs cr) 2
Buy Price 3.16
Buy Qty 100.00
Sell Price 0.00
Sell Qty 0.00
OPEN 3.16
CLOSE 3.10
VOLUME 400
52-Week high 3.16
52-Week low 3.16
P/E 3.55
Mkt Cap.(Rs cr) 2
Buy Price 3.16
Buy Qty 100.00
Sell Price 0.00
Sell Qty 0.00

Hindusthan Udyog Ltd. (HINDUDYOG) - Auditors Report

Company auditors report

To The Members of Hindusthan Udyog Ltd.

Report on financial statements

1. We have audited the accompanying financial statements of Hindusthan Udyog Ltd. ('theCompany’) which comprise the Balance Sheet as at 31 Mar 2015 the Statement ofProfit and Loss and Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

Management's responsibility for the financial statements

2. The Company’s Board of Directors is responsible for the matters stated inSection 134 (5) of the Companies Act 2013 ("the Act") with respect to thepreparation and presentation of these financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India includingAccounting Standards specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility includes the maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of accounting records relevant to the preparation andpresentation of financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

Auditor's responsibility

3. Our responsibility is to express an opinion on these financial statements based onour audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made thereunder.

4. 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 from material misstatement.

5. An audit involved performing procedures to obtain audit evidence about the amountsand disclosures in financial statements. The procedures selected depend on theauditor’s judgment including the assessment of risks of material misstatements ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal control relevant to the Company’s preparation thatgive a true and fair view in order to design audit that are appropriate in thecircumstances but not for the purpose of expressing an opinion on whether the Company hasin place an adequate internal financial controls system over financial reporting and theoperating effectiveness of such controls. 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 that we have obtained is sufficient and appropriateto provide a basis for our audit opinion.

Opinion

6. 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;

a. In the case of the Balance Sheet of the state of affairs of the Company as at 31Mar 2015

b. In the case of the Statement of Profit and Loss of the profit for the yearended on that date

c. In the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.

Emphasis of Matter

7. Considering the overall financial health of the Company it may require further fundinfusion for growth and expansion.

Report on other legal and regulatory requirements

8. As required by the Companies (Auditor’s Report) Order 2015 ('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 statement on the matters specified in paragraphs 3 and4 of the said Order.

9. 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 accounts 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 the Cash Flow Statementdealt with by this Report are in agreement with the books of accounts.

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 written representation received from the directors as on 31 Mar 2015and taken on record by the Board of Directors none of the directors is disqualified as at31 Mar 2015 from being appointed as a director in terms of Section 164 (2) of the Act and

f. 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 information and according to the explanations given to us:

i. The Sales Tax Authorities have raised a demand of Rs 18297552 pertaining to VATdues and Rs 21141834 pertaining to CST dues. The Company has contested this demandbefore the appropriate appellate forum. The Company been advised by its legal consultantsthat it is more than likely than not that the verdict will be in Company's favour. Henceno provision for the same has been made in the books of accounts.

ii. There are no long term contracts including derivative contracts. Hence thequestion of provision of for any losses on the same does not arise.

iii. The Company has been informed by its Bankers that an amount of Rs 35595 is lyingto the credit of the account of the Company. This amount pertains to the year 1999. TheCompany has instructed the Bankers to deposit the amount into the Investor Education andProtection Fund. The Bankers are yet to do the needful in the matter.

For K S Sanghvi and Co
Chartered Accountants
Firm Registration Number 116714W
Tapan Sanghvi
Partner
Place of signature: Mumbai Membership No: 122244
Date: 29/05/2015

Annexure to our report of even date Re: Hindusthan Udyog Ltd.

(Referred to in Para 8 of our report of even date)

i) [a] The company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.

[b] Fixed assets have been physically verified by the management and the company hasregular program of verification which in our opinion is reasonable having regard to thesize of the company and the nature of its assets. No material discrepancy was noticed onsuch verification.

ii) [a] According to the information and explanations given to us physicalverification of inventory has been carried out at reasonable intervals.

[b] In our opinion the procedures of physical verification of inventory followed bythe Management are reasonable and adequate in relation to the size of the Company andnature of its business.

[c] In our opinion the Company has maintained proper records of inventory and nomaterial discrepancies were noticed on physical verification.

iii) [a] According to the information and explanation given to us the Company has notgranted any loans secured or unsecured to Companies Firms or other parties covered inthe Register maintained under section 189 of the Act and hence this clause along withsub clauses (a) and (b) of the Order are not applicable to the Company.

iv) According to the information and explanations given to us there is adequateinternal control system commensurate with the size of the Company and nature of itsbusiness for purchase of inventory and fixed assets and for sale of goods.

v) The Company has not accepted deposits and hence the question of contravention ofprovisions of sections 73 to 76 of the Act or any other relevant provisions of the Actand the Rules framed thereunder does not arise.

vi) According to the information and explanations given to us the Government has notprescribed maintenance of cost records under section 148 (1) of the Act for any of thegoods sold by the Company.

vii) [a] According to the information and explanations given to us and on the basis ofexamination of records of the Company the Company is generally regular in depositingundisputed statutory dues including provident fund employees state insurance income taxsales tax wealth tax service tax duty of customs duty of excise value added tax cessand any other material statutory dues with the appropriate authorities. As explained tous the Company did not have any dues on account of wealth tax.

According to the information and explanations given to us no undisputed amounts inrespect of provident fund income tax sales tax wealth tax service tax duty ofcustoms value added tax cess and other material statutory dues were in arrears as at 31March 2015 for a period of more than six months from the date they became payable.

[b] According to the information and explanations given to us the following dues ofsales tax / VAT have not been deposited on account of disputes.

Sr No Name of the Statute Nature of Dues Amount (Rs) Period to which the amount relates Forum where the dispute is pending
1 MVAT Act 2005 Sales Tax 18297552 01 April 2010 - 31 March 2011 Deputy Commissioner of Sales Tax Mumbai
2 CST Act Central Sales Tax 21141834 01 April 2010 - 31 March 2011 Deputy Commissioner of Sales Tax Mumbai

[c] According to the information and explanations given to us an amount of Rs 35595 isrequired to be transferred to Investor Education and Protection Fund in accordance withthe relevant provisions of the Act and the rules made thereunder. As explained in point 9(f) (iii) above the Company has initiated the process of transferring the funds to theInvestor Education and Protection Fund. However the bankers of the Company are yet to dothe needful on the matter.

viii) The Company does not have any accumulated losses at the end of the financialyear. The Company has not incurred cash losses in the current financial year and in theimmediately preceding financial year.

ix) The Company has availed itself of financial facilities funded and non - fundedfrom banks such as cash credit letter of

credit and term loans. As on 31 March 2015 the Company has utilized cash creditfacility in excess of the limit sanctioned by the Bank in respect of such facility. Thusthe account with such credit facility became irregular since February 2015.

x) According to the information and explanations given to us the Company has given aguarantee for loans taken by others from banks and financial institutions; the terms andconditions thereof are prima facie not prejudicial to the interest of the Company.

xi) According to the information and explanations given to us the term loans wereapplied for the purpose for which they were obtained.

xii) According to the information and explanations given to us no material fraud on orby the Company has been noticed and reported during the course of our audit.

For K S Sanghvi and Co
Chartered Accountants
Firm Registration Number 116714W
Tapan Sanghvi
Partner
Place of signature: Mumbai Membership No: 122244
Date: 29/05/2015