You are here » Home » Companies » Company Overview » Hindoostan Mills Ltd

Hindoostan Mills Ltd.

BSE: 509895 Sector: Industrials
NSE: N.A. ISIN Code: INE832D01020
BSE LIVE 11:22 | 18 Aug 375.00 -2.95
(-0.78%)
OPEN

374.95

HIGH

375.00

LOW

374.95

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 374.95
PREVIOUS CLOSE 377.95
VOLUME 110
52-Week high 479.00
52-Week low 322.05
P/E
Mkt Cap.(Rs cr) 62
Buy Price 360.10
Buy Qty 16.00
Sell Price 379.90
Sell Qty 10.00
OPEN 374.95
CLOSE 377.95
VOLUME 110
52-Week high 479.00
52-Week low 322.05
P/E
Mkt Cap.(Rs cr) 62
Buy Price 360.10
Buy Qty 16.00
Sell Price 379.90
Sell Qty 10.00

Hindoostan Mills Ltd. (HINDOOMILLS) - Auditors Report

Company auditors report

To the Members of HINDOOSTAN MILLS LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of HINDOOSTAN MILLS 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 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 the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgements 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.

Auditor’s 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 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.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements.

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. In making those risk assessments the auditor considers internalfinancial control relevant to the Company’s preparation of the financial statementsthat give a true and fair view in order to design audit procedures that are appropriate inthe circumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by theCompany’s Directors as well as evaluating the overall presentation of the financialstatements.

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:

(a) in the case of the Balance Sheet of the state of affairs of the Company as atMarch 31 2016;

(b) in the case of the Statement of Profit and Loss of the loss for the year ended onthat date; and

(c) in the case of the Cash Flow Statement of the cash flows for the year ended onthat 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 sub-section (11) ofsection 143 of the Act we give in the Annexure "A" a statement on thematters specified in paragraphs 3 and 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 and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit;

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

(c) the Balance Sheet the Statement of Profit and the Cash Flow Statement dealt withby this Report are in agreement with the books of account;

(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 the directors as on 31stMarch 2016 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms of Section164(2) of the 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 "B"; 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) The company has disclosed the impact of pending litigations on its financialposition in its financial statements Refer to Note No. 27B Point No. III(A) III(B) andIII(C) of other notes to the financial statements.

(ii) The Company does not have any long-term contracts including derivative contractsfor which there could be any material foreseeable losses and hence the question of makingprovision for such losses does not arise.

(iii) There has been no delay in transferring amount required to be transferred tothe Investor Education and Protection Fund by the Company.

For M.A.Parikh & Co.

Chartered Accountants (Firm’s Registration No. 107556W)

Mukul M. Patel

Partner

Membership No. 32489

Place: Mumbai

Date: 4th May 2016

ANNEXURE – A TO THE AUDITORS’ REPORT

Annexure referred to in paragraph 1 of our report on Other Legal and RegulatoryRequirements of even date

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. were physically verified during

(b) The fixed the year by the Management in accordance with a regular programme ofverification which in our opinion provides for physical verification of all the fixedassets at reasonable intervals. According to the information and explanations given to usno material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the company the title deeds of Leasehold Land are held inthe name of the company.

(ii) In respect of its inventories:

(a) As explained to us inventories were physically verified during the year by themanagement at reasonable intervals except inventory lying with third party processors ason 31st March 2016 aggregating to Rs. 63.95 lakhs (previous year Rs. 3.86 lakhs) forwhich confirmations have been obtained.

(b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management werereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.

(c) In our opinion and according to the information and explanations given to us theCompany has maintained proper records of its inventories and no material discrepancieswere noticed on physical verification.

(iii) The Company has not granted loans to parties in the register maintained undersection 189 of the Act. Thus paragraph 3(iii) of the Order is not applicable.

(iv) In our opinion and according to the information explanations given to us theCompany:

(a) Has complied with the provisions of section 186 of the Act with respect to theinvestments made.

(b) The provisions of section 185 of the Act are not applicable to it.

(v) The Company has not accepted any deposits from public.

(vi) We have broadly reviewed the books of accounts and records maintained by theCompany relating to the manufacture of textiles pursuant to the order made by the CentralGovernment for the maintenance of Cost Records under Sub Section 1 of Section 148 of theCompanies Act 2013 and are of the opinion that prima facie the prescribed accounts andrecords have been so made and maintained. We have however not made a detailedexamination of the accounts and records with a view to determining whether they areaccurate or complete.

(vii) In respect of statutory dues:

(a) According to the information and explanations given to us the Company has beengenerally regular in depositing undisputed statutory dues including Provident FundEmployees’ State Insurance Income-tax Sales-Tax Wealth Tax Service Tax Duty ofCustoms Duty of Excise Value Added Tax Cess and any other statutory dues as applicablewith the appropriate authorities during the year.

(b) According to the information and explanations given to us statutory duesaggregating to Rs. 273.81 lakhs which have not been deposited as on March 31 2016 onaccount of disputes are given below:

Name Of Statute Nature of dues Amount (Rs. in lakhs) (Gross) Period to which the dues relate Forum Where dispute is pending
Income Tax Act1961 Income Tax dues 3.12 A.Y. 2007-08 Commissioner of Income Tax.
1.94 A.Y. 2010-11 Commissioner of Income Tax.
Central Excise Act Excise Duty 4.06 1977-2002 Asst./Dy. Commissioner of Central Excise.
2.49 Joint Commissioner of Central Excise
37.98 Commissioner (Appeals) of Central Excise
57.70 1994-1998 Asst. Commissioner of Central Excise.
71.07 1996-2003 CESTAT
0.68 1993-1994 Supreme Court
Maharashtra Sales Tax and Central Sales Tax Sales Tax & Central Sales Tax 27.02 2000-01 2002-03 2009-10 & 2010-11 Dy. Commissioner of sales-tax (Appeal)-I
Maharashtra Sales Tax on the transfer of property in goods involved in the execution of the work contract (Reenacted) Act 1989 Work contract Tax 21.15 1990-91 to 2000-01 Dy. Commissioner of sales-tax (Appeal)-I

(viii) Based on our audit procedures and according to the information and explanationsgiven to us we are of the opinion that the Company has not defaulted in repayment of duesto its banks.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) term loans during the year. Thus paragraph 3(ix) of the Order is not applicable.

(x) According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during thecourse of our audit.

(xi) The Company has paid/provided managerial remuneration which is in accordance withthe provisions of section 197 read Schedule V of the Companies Act 2013.

(xii) In our opinion and according to the information explanations given to us theCompany is not a nidhi company. Thus paragraph 3(xii) of the Order is not applicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with 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 standard.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company during the year the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures.

(xv) 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.

(xvi)and According to the information and explanations given to us and based on ourexamination of the records of the Company it is not required to be registered undersection 45-IA of the Reserve Bank of India Act 1934.

For M.A.Parikh & Co.
Chartered Accountants
(Firm’s Registration No. 107556W)
Mukul M. Patel
Place: Mumbai Partner
Date: 4th May 2016 Membership No. 32489

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 of HINDOOSTANMILLS LIMITED ("the Company") as of 31 March 2016 in conjunction with ouraudit of 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 Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India (‘ICAI’). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to Company’s policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under the Act.

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 Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects. Our audit involves performing procedures to obtain audit evidence about theadequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor’s judgment including the assessment of therisks of material 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 controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting reporting criteriaestablished by A Company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A Company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditure 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 financialcontrolsover financial reporting were operating effectively as at 31 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 ICAI.

For M.A.Parikh & Co.
Chartered Accountants
(Firm’s Registration No. 107556W)
Mukul M. Patel
Place: Mumbai Partner
Date: 4th May 2016 Membership No. 32489