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Hitech Corporation Ltd.

BSE: 526217 Sector: Industrials
NSE: HITECHCORP ISIN Code: INE120D01012
BSE LIVE 15:40 | 20 Nov 174.20 -0.80
(-0.46%)
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174.00

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178.90

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NSE 15:50 | 20 Nov 174.30 1.25
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175.45

HIGH

178.00

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OPEN 174.00
PREVIOUS CLOSE 175.00
VOLUME 3421
52-Week high 235.80
52-Week low 140.80
P/E 42.38
Mkt Cap.(Rs cr) 299
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 174.00
CLOSE 175.00
VOLUME 3421
52-Week high 235.80
52-Week low 140.80
P/E 42.38
Mkt Cap.(Rs cr) 299
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Hitech Corporation Ltd. (HITECHCORP) - Auditors Report

Company auditors report

To the Members of HITECH CORPORATION LIMITED (Formerly HITECH PLAST LIMITED)

Report on the Financial Statements

We have audited the accompanying financial statements of HITECH CORPORATION LIMITED("the Company") which comprise the Balance Sheet as at 31st March2017 the Statement of Profit and Loss Cash Flow Statement for the year then ended and asummary 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 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 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.

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 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 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 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 subsection (11) of section 143 ofthe Act we give in the "Annexure A" a statement on the matters specified inthe 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 Loss and the Cash Flow Statementdealt with by 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 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in termsof Section 164 (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 Note 26(a) to the financial statements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

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

iv. The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016. Based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with books of accountmaintained by the Company and as produced to us by the management - Refer Note 45 tofinancial statements.

For MANUBHAI & SHAH LLP Chartered Accountants FRN: 106041W/W100136

Ashish H. Shah

Partner

M. No: 103750

Date: - 09th May 2017

Annexure - A to Independent Auditors' Report

(Referred to in our report of even date)

1. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Company has a regular programme of physical verification of its fixed assetswhich in our opinion is reasonable having regard to the size of the Company and the natureof its assets. No material discrepancies were noticed upon such verification.

(c) In our opinion and according to the information and explanations given to us and onthe basis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company.

2. The inventory except goods-in-transit have been physically verified by themanagement during the year. In our opinion the frequency

of such verification is reasonable. For stock lying with the third parties at the yearend written confirmation have been obtained. The

discrepancies noticed on verification between the physical stocks and book records werenot material and have been properly dealt with in books of account.

3. According to the information and explanations given to us the Company has notgranted any loans Secured or Unsecured during the year to companies firms or otherparties covered in the register maintained under section 189 of the Companies Act 2013(‘the Act').

4. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185

and 186 of the Act with respect to the loans investments guarantees and security.

5. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 73 to 76 or any other relevantprovision of the Act and the rules framed there under to the extent notified with regardto the deposits accepted from the public. According to the information and explanationsgiven to us no order has been passed by the Company Law Board or National Company LawTribunal or Reserve Bank of India or any Court or any other Tribunal on the Company inrespect of the aforesaid deposits.

6. We are informed that the maintenance of cost records has not been prescribed by theCentral government of India under section 148(1) of the Act in respect of the Company'sproduct.

7. (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company

amounts deducted/ accrued in the books of account in respect of undisputed statutorydues including provident fund income-tax sales tax/value added tax customs duty exciseduty service tax cess and other material statutory dues have generally been regularlydeposited during the year by the Company with the appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund income tax sales tax value added tax customsduty excise duty service tax cess and other material statutory dues were in arrears asat 31st March 2017 for a period of more than six months from the date they becamepayable.

(b) According to the information and explanations given to us following dues that havenot been deposited by the company on account of disputes pending at various forums:-

Name of the Statute Nature of dues Amount in Lacs Financial Year to which the amount relates Forum where the dispute is pending
Income Tax IT matters under dispute 27.66 FY 02-03 High Court
3.23 FY 03-04 High Court
54.43 FY 07-08 CIT (A)
7.72 FY 07-08 High Court
242.89 FY 09-10 CIT (A)
111.34 FY 10-11 CIT (A)
12.01 FY 11-12 CIT (A)
456.82 FY 12-13 CIT (A)
322.28 FY 13-14 CIT (A)
Total(A) 1238.38
Sales Tax Assessment Dues 318.30 FY 06-07
4.03 FY 10-11 Appellate Level
0.19 FY 11-12
Total(B) 322.52
Central Excise Act 1944 Dispute relating to Excise duty 28.24 FY 11-12 to FY 15-16 Appellate Level
Total(C) 28.24
Grand Total (A+B+C) 1589.14

8. In our opinion and according to the information and explanations given to us theCompany has not defaulted during the year in repayments of dues to its financialinstitutions bankers and government. The Company did not have any outstanding debenturesduring the year.

9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) during the year and according to the information andexplanations given to us the term loans have been applied for the purposes for which theywere obtained.

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 paid or provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

12. According to the information and explanations given to us the Company is not aNidhi company as prescribed under section 406 of the Act. Accordingly paragraph 3(xii) ofthe Order is not applicable to the Company.

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 the 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.

16. According to the information and explanations give to us the Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.Accordingly paragraph 3(xvi) of the order is not applicable to the company

For MANUBHAI & SHAH LLP Chartered Accountants FRN: 106041W/W100136

Ashish H. Shah

Partner

M. No: 103750

Date:- 09th May 2017

Annexure - B to the Independent Auditors' Report

(Referred to in our report of even date)

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 HITECHCORPORATION LIMITED ("the Company") as at 31st March 2017 in conjunction withour audit 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 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 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 Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated 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:

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorisations of management and directors of the Company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the Company's assets that could have amaterial 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 31st March 2017based on the 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 MANUBHAI & SHAH LLP Chartered Accountants FRN: 106041W/W100136

Ashish H. Shah

Partner

M. No: 103750

Date:- 09th May 2017