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Indian Hume Pipe Company Ltd.

BSE: 504741 Sector: Infrastructure
NSE: INDIANHUME ISIN Code: INE323C01030
BSE LIVE 15:47 | 24 Nov 461.45 3.60
(0.79%)
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465.00

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476.60

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NSE 15:46 | 24 Nov 461.40 3.65
(0.80%)
OPEN

458.00

HIGH

478.00

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OPEN 465.00
PREVIOUS CLOSE 457.85
VOLUME 6707
52-Week high 591.00
52-Week low 338.00
P/E 24.13
Mkt Cap.(Rs cr) 2,236
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 465.00
CLOSE 457.85
VOLUME 6707
52-Week high 591.00
52-Week low 338.00
P/E 24.13
Mkt Cap.(Rs cr) 2,236
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Indian Hume Pipe Company Ltd. (INDIANHUME) - Auditors Report

Company auditors report

To the Members of

The Indian Hume Pipe Company Limited

Report on the Financial Statements

We have audited the accompanying financial statements of The Indian Hume Pipe CompanyLimited (‘the Company') which comprise the Balance Sheet as at March 31 2017 theStatement of Profit and Loss 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 preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

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 accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that 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 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 March 31 2017 and its profit andits 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 Government of India – Ministry of Corporate Affairs in terms ofsub-section (11) of section 143 of the Act we enclose in the annexure a statement on thematters specified in paragraphs 3 and 4 of the said Order.

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 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".

(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 2.31 (1) to the financialstatements.

(ii) The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts. The Companydid not have any derivative contracts.

(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 November 082016 to December 30 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 2.40.

For K. S. Aiyar & Co.
Chartered Accountants
ICAI Firm Registration No: 100186W
Sachin A. Negandhi
Place: Mumbai Partner
Date: May 18 2017 Membership No.: 112888

(Referred to in paragraph 1 under the heading ‘Report on Other Legal andRegulatory Requirements' of our Report of even date on the financial statements for theyear ended on March 31 2017 of The Indian Hume Pipe Company Limited) (i) (a) The Companyhas maintained proper records showing full particulars including quantitative details andsituation of fixed assets.

(b) Fixed assets have been physically verified by the management during the year. Inour opinion the frequency of such verification is reasonable having regard to the size ofthe Company and the nature of its fixed assets. No material discrepancies were noticed onsuch physical 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 immovable properties areheld in the name of the Company other than as detailed below:

Rs in Lakhs Remarks
No. of cases Land - Leasehold / Freehold Gross Block Net Block
3 Leasehold 0.09 0.09 (a) Letter of allotment is in name of the Company.
(b) Lease deed period has expired. The Company continues to pay rent and statutory dues.

(ii) The inventory has been physically verified during the year by the management. Inour opinion the frequency of verification is reasonable. The discrepancies noticed onverification between the physical stocks and book records were not material and are havebeen properly dealt with in books of accounts.

(iii) As informed the Company has not granted any loans secured or unsecured tocompanies firms Limited Liability Partnerships or other parties covered in the registermaintained under Section 189 of the Companies Act 2013. Accordingly provisions ofclauses 3 (iii) (a) 3 (iii) (b) and 3 (iii) (c) of the Order are not applicable.

(iv) As informed the Company has not advanced any loans made any investments or givenany guarantees and securities. Accordingly clause 3 (iv) of the Order is not applicable.

(v) In our opinion and according to the information and explanations given to us theCompany has complied with provisions of sections 73 to 76 or any other relevant provisionof the Companies Act 2013 and the rules framed thereunder with regard to the depositsaccepted from the public. As informed to us no order has been passed by the Company LawBoard National Company Law Tribunal or Reserve Bank of India or any Court or any otherTribunal.

(vi) We have broadly reviewed the books of accounts maintained by the company pursuantto the rules made by the Central Government for maintenance of the cost record under subsection (1) of Section 148 of the Companies Act 2013 and are of the opinion that primafacie the prescribed accounts and records have been made and maintained. However we havenot made a detailed examination of the cost records with a view to determine they areaccurate or complete.

(vii) (a) The Company is generally regular in depositing with appropriate authoritiesundisputed statutory dues including Provident Fund Employee's State Insurance IncomeTax Sales Tax Value Added Tax Service Tax Custom Duty Excise Duty Cess and any othermaterial statutory dues applicable to it.

According to the information and explanations given to us there are no undisputed duesin respect of provident fund investor education and protection fund employees' stateinsurance income-tax service tax sales-tax customs duty excise duty cess and otherstatutory dues which were outstanding at the year end for a period of more than sixmonths from the date they became payable.

(b) According to the records of the Company there are no dues of Sales Tax ValueAdded Tax Income Tax Customs Duty Service Tax Excise Duty Cess which have not beendeposited on account of any dispute other than those detailed below:

Name of Statute Nature of Dues Period to which the amount relates Commissionerate/ Dy. Commissionerate Forum where dispute is pending
Appelate Tribunal Authorities High Court ( Rs in lakhs)
(Rs in Lakhs) Rs ( in lakhs)
Sales Tax / VAT Tax /Penalty/ Interest 1980-81 - - 1.09
1986-87 - - 1.78
1989-90 - 25.31 -
1990-91 - 35.70 -
1991-92 - 31.31 -
1992-93 - 15.40 -
1993-94 - 14.39 -
1994-95 - 34.74 0.50
1995-96 - 72.49 -
1996-97 - - 0.20
1997-98 - - 1.11
2000-01 - - 73.52

 

Name of Statute Nature of Dues Period to which the amount relates Commissionerate/ Dy. Commissionerate Forum where dispute is pending
Appelate Tribunal Authorities High Court Rs ( in lakhs)
(Rs in Lakhs) ( Rs in lakhs)
2001-02 - - 110.39
2003-04 - 70.56 -
2007-08 15.92
2009-10 7.02 - -
2012-13 90.28
2013-14 48.72 3.68 -
2014-15 125.23 - 2457.77
2015-16 4.20 - 578.39
Central Excise Act 1944 Duty Interest and Penalty on Valuation / Classification / Tariff 1978-79 1.06 - -
1981-82 0.37 - -
1982-83 0.11 - -
1985-86 0.06 - -
1991-92 0.57 - -
1992-93 0.15 - -
1993-94 - 0.35 -
1994-95 7.01 3.10 -
1995-96 0.59 1.61 -
1996-97 0.53 - -
1997-98 0.71 - -
1998-99 0.80 - -
1999-00 0.51 - -
2000-01 1.25 - -
2004-05 11.89 - -
2005-06 - 4.80 -
2006-07 - 0.82 -
2007-08 - 0.21 -
2008-09 - 282.94 -
2009-10 - 0.34 -
2010-11 5.96 136.85 -
2011-12 - 4.74 -
2012-13 - 9.74 -
2013-14 - 173.00 -
2015-16 3.87 - -
2016-17 15.40 - -
Service Tax Tax / Penalty / Interest 2008-09 - 1.80 -
2009-10 - 87.64 -
2010-11 - 2.40 -
2011-12 - 6.27 -
2016-17 30.77 - -

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of loans or borrowings to any banks. TheCompany does not have any loans from financial institutions or government. The Company didnot have any outstanding debentures during the year.

(ix) The Company has not raised any moneys by way of initial public offer or furtherpublic offer (including debt instruments) and did not have any term loans outstandingduring the year. Accordingly clause 3 (ix) of the Order is not applicable to the Company.

(x) According to the information and explanations furnished by the management whichhave been relied upon by us there were no frauds by the Company or on the Company by anyof its employees or officers noticed or reported during the course of our audit.

(xi) In our opinion managerial remuneration has been paid / provided in accordancewith the requisite approvals mandated by the provisions of section 197 of the Act readwith Schedule V to the Act.

(xii) In our opinion the Company is not a Nidhi Company. Accordingly clause 3 (xii) ofthe Order is not applicable to the Company.

(xiii) In our opinion all transactions with the related parties are in compliance withsections 177 and 188 of Act where applicable and the requisite details have beendisclosed in the financial statements etc. as required by the applicable accountingstandards.

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.

(xv) The Company has not entered into any non-cash transactions with directors orpersons connected with them.

(xvi) According to the information and explanations given to us the Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.

For K. S. Aiyar & Co.
Chartered Accountants
ICAI Firm Registration No: 100186W
Sachin A. Negandhi
Place: Mumbai Partner
Date: May 18 2017 Membership No.: 112888

ANNEXURE ‘B' TO THE AUDITORS' REPORT

Annexure - B to the Independent Auditor's Report of even date on the FinancialStatements of The Indian Hume Pipe Company Limited Report on the Internal FinancialControls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013("the Act")

We have audited the internal financial controls over financial reporting of The IndianHume Pipe Company Limited ("the Company") as of March 31 2017 in conjunctionwith our 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. 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 company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe 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 andmaintained and 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 judgement 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 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 March 31 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 K. S. Aiyar & Co.
Chartered Accountants
ICAI Firm Registration No: 100186W
Sachin A. Negandhi
Place: Mumbai Partner
Date: May 18 2017 Membership No.: 112888