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Sunil Hitech Engineers Ltd.

BSE: 532711 Sector: Engineering
NSE: SUNILHITEC ISIN Code: INE305H01028
BSE LIVE 15:59 | 17 Nov 13.45 0.15
(1.13%)
OPEN

13.50

HIGH

13.70

LOW

13.40

NSE 15:58 | 17 Nov 13.50 0.20
(1.50%)
OPEN

13.50

HIGH

13.75

LOW

13.45

OPEN 13.50
PREVIOUS CLOSE 13.30
VOLUME 405061
52-Week high 16.81
52-Week low 8.28
P/E 8.30
Mkt Cap.(Rs cr) 508
Buy Price 0.00
Buy Qty 0.00
Sell Price 13.45
Sell Qty 3042.00
OPEN 13.50
CLOSE 13.30
VOLUME 405061
52-Week high 16.81
52-Week low 8.28
P/E 8.30
Mkt Cap.(Rs cr) 508
Buy Price 0.00
Buy Qty 0.00
Sell Price 13.45
Sell Qty 3042.00

Sunil Hitech Engineers Ltd. (SUNILHITEC) - Auditors Report

Company auditors report

To the members of

SUNIL HITECH ENGINEERS LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements ofSUNIL HITECH ENGINEERS LIMITED ("the Company") which comprise the Balance Sheetas at 31st March 2017 the Statement of Profit and Loss the Cash Flow Statement for theyear then ended and a summary of the significant accounting policies and otherexplanatory information.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these standalone financial statements that give a true and fair view ofthe financial position financial performance and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act further amended by Companies (AccountingStandards) Amendment Rules2016 read with Rule 7 of the Companies (Accounts) Rules 2014.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing 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 adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalonefinancial statements based on our audit. We have taken into account the provisions of theAct the accounting and auditing standards and matters which are required to be includedin the audit report under the provisions of the Act and the Rules made there under. Weconducted our audit in accordance with the Standards on Auditing specified under Section143(10) of the Act. Those Standards require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the financialstatements are free from material misstatement. An audit involves performing procedures toobtain audit evidence about the amounts and the disclosures in the financial statements.The procedures 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.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the financial statements that give a true andfair view in order to design audit procedures that are appropriate in the circumstances.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the standalone financialstatements.

Opinion

In our opinion and to the best of our information and according tothe explanations given to us the aforesaid standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2017 and its profit and its cash flows for theyear ended on that date.

Report on Other Legal and Regulatory Requirements

(i) As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government of India in terms of sub-section(11) of section 143 of the Act we give in the Annexure A a statement on the mattersspecified in paragraphs 3 and 4 of the Order.

(ii) 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 best of ourknowledge and belief were necessary for the purposes of our audit. (b) In our opinionproper books of account as required by law have been kept by the Company so far as itappears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss and theCash Flow Statement dealt with by this Report are in agreement with the books of account(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act further amended by Companies(Accounting Standards) Amendment Rules 2016 read with Rule 7 of the Companies (Accounts)Rules 2014.

(e) On the basis of the written representations received from thedirectors as on 31st March 2017 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2017 from being appointed as a director interms of Section 164 (2) of the Act.

(f ) with respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate report in "Annexure B"; and (g) With respect to the othermatters to be included in the Auditor's Report in accordance with Rule 11 of the Companies(Audit and Auditors) Rules 2014 in our opinion and to the best of our information andaccording to the explanations given to us: I . The Company has disclosed the impact ofpending litigations on its financial position in its financial statement – refer Noteno. 33 to the financial statements; ii. The Company did not have any long-term contractsincluding derivative contracts for which there were any material foreseeable losses; iii.There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the Company. iv. The Company has providedrequisite disclosures in the financial statements as to holding as well as dealing inSpecified Bank Notes during the period from 8th November 2016 to 30th December 2016.Based on audit procedures and relying on the management representation we report that thedisclosures are in accordance with the books of account maintained by the Company and asproduced to us by the Management – (Refer Note no. 45 of financial statement).

For V. Sankar Aiyar & Co.

Chartered Accountants (Firm's Registration No. 109208W)

Arvind Mohan

Partner (Membership No. 124082)

Place of signature: Mumbai Date: 19th May 2017

ANNEXURE A TO THE AUDITOR'S REPORT

Based on the audit procedures performed for the purpose of reportinga true and fair view on the Standalone Financial Statements of the company and taking intoconsideration the information and explanations given to us and the books of account andother records examined by us in the normal course of audit and in our opinion we reportthat ;

(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets except locationwise details of some of the movable assets shifted/transferred amongst various sites.

(b) Fixed assets have been physically verified by the managementduring the year as per the phased programme which in our opinion is reasonable havingregard to the size of the Company and the nature of its assets. We are informed that therewas no material discrepancies noticed on such verification.

(c) The title deeds of immovable properties are held in the name ofthe Company.

(ii) Physical verification of inventory has been conducted atreasonable intervals by the management. The procedures of physical verification ofinventory followed by the management reasonable and adequate in relation to the size ofthe company and the nature of its business and the discrepancies noticed on such physicalverification between physical records and book records were not material and have beenproperly dealt with in the books of account.

(iii) a) The company has granted unsecured loans to three companiescovered in the register maintained under section 189 of the Companies Act 2013. Themaximum amount outstanding during the year is ` 611.54 Lacs and amount outstanding at theyear end is ` 301.00 Lacs

b) The rate of interest charged wherever charged and other termsand conditions thereof are prima facie not prejudicial to the interest of the Company.

(c) There is no overdue amount more than Rupees one lac.

(iv) The Company has complied with section 185 and 186 of CompaniesAct 2013 in respect of loans investments guarantees and securities given.

(v) The Company has not accepted deposits from public. Accordinglythis clause is not applicable.

(vi) The Central Government has prescribed maintenance of costrecords under sub section (1) of section 148 of the Companies Act 2013 in respect of oneof the products manufactured by the company. We have broadly reviewed the accounts andrecords of the company and are of the opinion that prima-facie the prescribed accountsand records have been made and maintained. We have not however carried out a detailedexamination of the accounts and records with a view to determine whether these areaccurate or complete.

(vii) (a) The company is generally regular in depositing undisputedstatutory dues including provident fund employees' state insurance sales-tax wealthtax service tax duty of customs duty of excise value added tax cess and any otherstatutory dues with the appropriate authorities during the year except income tax.Undisputed dues outstanding as at 31st March 2017 for a period of more than six monthsfrom the date they become payable are as under;

Statute Particulars Amount Due Date Date of Payment
Income tax Act 1961 Tax Deducted at Source – Contractor Rent Interest & Salary 16473438 07-09-2016 & Unpaid
Income tax Act 1961 Advance Tax – 1st instalment & 2nd instalment 17564553 15-06-2016 & 15-09-2016 Unpaid

(b) According to the information and explanations given to us basedon the records of the company examined by us there are no dues of Income Tax Sales taxService Tax Customs duty Wealth Tax Excise Duty and Cess which have not been depositedon account of a dispute except as enumerated herein below which are pending beforerespective authorities as mentioned there against:

Name of the Statute Nature of dues Amount* ( ` in lacs) Period to which amount relates (Financial Year) Forum where dispute is pending
Service Tax under Finance Act1994 & The Service Tax 1078.63 2005-06 To Custom Excise Service Tax
Central Excise Act 1994 (Basic & Penalty) 2013-14 Appellate Tribunal
The Customs Act 1962 Custom Duty 138.17 2007-08 Commissioner of Customs(Import)
2008-09 Mumbai
The Income-Tax Act 1961 Income Tax 283.81 2008-09 2004-05 Income Tax Appellate Tribunal Mumbai
The Income-Tax Act1961 Income Tax 94.74 2008-09 2009-10 CIT Appeals Nagpur

(viii) The Company has not defaulted in repayment of dues to afinancial institution and banks. The Company does not have any outstanding debenturesduring the year.

(ix) The company has not raised any money during the year by way ofinitial public offer and further public offer (including debt instruments) and term loans.

(x) No material fraud on or by the company has been noticed orreported during the course of our audit.

(xi) The company has complied with the provision of section 197 readwith schedule V of the Companies Act for payment and provision of managerial remuneration.

(xii) The Company is not a Nidhi company.

(xiii) Transactions with the related parties are in compliance withsection 177 and section 188 of the Companies Act 2013 where applicable and the details ofsuch transactions have been disclosed in the financial statement as required by applicableaccounting standards.

(xiv) The Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debenture during the year.

(xv) The Company has not entered into any non- cash transaction withdirectors or persons connected with him.

(xvi) The company is not required to be registered under section 45IA of the Reserve Bank of India Act 1934.

For V. Sankar Aiyar & Co.

Chartered Accountants (Firm's Registration No. 109208W)

Arvind Mohan

Partner (Membership No. 124082)

Place of signature: Mumbai Date: 19th May 2017

ANNEXURE B TO THE AUDITORS' REPORT

Report on the Internal Financial Controls under Clause (i) ofSubsection 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting of SUNIL HITECH ENGINEERS LIMITED ("the Company") as of 31 March 2017in conjunction with our audit of the Standalone Financial Statements of the Company forthe year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India(‘ICAI'). These responsibilities include the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on theCompany's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. 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 evidenceabout the adequacy of the internal financial controls system over financial reporting andtheir operating effectiveness. Our audit of internal financial controls over financialreporting included obtaining an understanding of internal financial controls overfinancial reporting assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.

We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

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 expenditures 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 FinancialReporting

Because of the inherent limitations of internal financial controlsover financial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion theCompany has in all material respects anadequate internal financial controls system over financial reporting and such internalfinancial controls over financial reporting were operating effectively as at 31 March2017 based on the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.

For V. Sankar Aiyar & Co.

Chartered Accountants (Firm's Registration No. 109208W)

Arvind Mohan

Partner (Membership No. 124082)

Place of signature: Mumbai Date: 19th May 2017