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Hercules Hoists Ltd.

BSE: 505720 Sector: Engineering
NSE: HERCULES ISIN Code: INE688E01024
BSE 00:00 | 20 Aug 116.70 1.65
(1.43%)
OPEN

114.45

HIGH

116.95

LOW

114.45

NSE 00:00 | 20 Aug 115.90 0.60
(0.52%)
OPEN

115.50

HIGH

116.90

LOW

115.00

OPEN 114.45
PREVIOUS CLOSE 115.05
VOLUME 2415
52-Week high 164.45
52-Week low 102.10
P/E 39.83
Mkt Cap.(Rs cr) 373
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 114.45
CLOSE 115.05
VOLUME 2415
52-Week high 164.45
52-Week low 102.10
P/E 39.83
Mkt Cap.(Rs cr) 373
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Hercules Hoists Ltd. (HERCULES) - Auditors Report

Company auditors report

To

The Members of HERCULES HOISTS LIMITED Report on the Ind AS FinancialStatements

We have audited accompanying Ind AS financial statements of HERCULESHOISTS LIMITED ("the Company") which comprise the Balance Sheet as at March 312018 and the Statement of Profit and Loss (including other comprehensive income) and CashFlow Statement and the statement for changes in equity for the year then ended and asummary of significant accounting policies and other explanatory information (hereinafterreferred to as "Ind AS financial statements).

Management's Responsibility for the Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters statedin Section 134(5) of Companies Act 2013 ("the Act") with respect to thepreparation and presentation of these Ind AS financial statements that give a true andfair view of the financial position financial performance including other comprehensiveincome cash flows and changes in equity of the Company in accordance with the Accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)specified under Section 133 ofthe Act read with relevant rules issued thereunder.

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and 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 Ind AS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these Ind AS financialstatements based on our audit.

We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditingspecified under Section 143(10) of the Act. Those Standards and pronouncements requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Ind AS financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence aboutthe amounts and the disclosures in the Ind AS financial statements. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the Ind AS 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 Ind AS financial statements that give a trueand fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation ofthe Ind AS financialstatements.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid the Ind AS 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 including the IndAS of the state of affairs (financial position) as at March 31 2018 and its financialperformance including other comprehensive income its cash flow and the changes in equityfor the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143 (3) of the Act we report that:

a. We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purpose of our audit.

b) In our opinion proper books of account as required by law have beenkept by the Company so far as appears from our examination of those books.

c) The Balance Sheet Statement of Profit and Loss (including OtherComprehensive Income) Cash Flow Statement and the statement of changes in equity dealtwith by this report are in agreement with the books of account.

d) In our opinion the aforesaid Ind AS financial statements complywith the Accounting Standards specified under Section 133 of Companies Act 2013 readwith rule 7 of the Companies (Accounts) Rules 2014.

e) On the basis of the written representations received from thedirectors as on March 31 2018 and taken on record by

the Board of Directors we report that none of the directors isdisqualified as on March 312018 from being appointed as

a director in terms of Section 164(2) of the Companies Act 2013.

f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate report in "Annexure B" and

g) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies

(Audit and Auditors) Rules 2014 in our opinion and to the best of ourinformation and according to the explanations

given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its financial statements - Refer Note-30 to the Ind AS financialstatements;

ii. The Company did not have any material foreseeable losses onlong-Term contracts including derivatives contracts.

iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the company.

2. As required by the Companies (Auditor's Report) Order 2016(‘the Order') issued by the Central Government in terms of Section 143(11) ofthe Actwe give in ‘Annexure A a statement on the matters specified in paragraphs 3 and 4ofthe Order.

For Kanu Doshi Associates LLP

Chartered Accountants

Firm's Registration No. : 104746W/W100096

Jayesh Parmar Partner

Membership No.45375

Place : Mumbai Dated : 22nd May 2018

ANNEXURE A - TO THE AUDITOR'S REPORT

Referred to in paragraph 2 of ‘Report on other Legal andRegulatory Requirements' in our Report of even date on the accounts of HERCULES HOISTSLIMITED for the year ended March 31 2018

i (a) The Company is maintaining proper records showing fullparticulars including quantitative details and situation of fixed

assets.

(b) The fixed assets of the company are physically verified by theManagement according to a phased programme designed to cover all the items over a periodof three years which in our opinion is reasonable having regard to the size of thecompany and the nature of its assets. Pursuant to the programme a portion of the fixedassets has been physically verified by the management during the year and discrepanciesnoticed between the book records and the physical inventories were not material and havebeen properly dealt with in the accounts.

(c) According to information and explanations given to us and on thebasis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company.

ii During the year the inventories have been physically verified bythe management. In our opinion the frequency of verification is reasonable .Thediscrepancies noticed on physical verification of inventories as compared to the bookrecords have been properly dealt with in the books of accounts.

iii. As informed to us the Company has not granted loans secured orunsecured to companies firms limited liability partnerships or other parties covered inthe register maintained under Section 189 of the Act. Hence sub clauses (a) to (c) ofclause 3(iii) are not applicable to the Company.

iv. The company has complied with provisions of section 186 of theCompanies Act 2013 in respect of investments made and section 185 of the Companies Act2013 is not applicable as there were no such loans securities or guarantees providedduring the year.

v. The Company has not accepted any deposits from the public within themeaning of Sections 73 74 75 and 76 of the Act and the rules framed there under to theextent notified and therefore clause 3(v) is not applicable.

vi. The Central Government has prescribed maintenance of cost recordsfor the company under sub section (1) of section 148 of the Companies Act 2013 and suchaccounts and records have been made and maintained by the Company. However no detailedexaminations of such records have been carried out by us.

vii (a) According to the records of the Company the Company is regularin depositing undisputed statutory dues including Provident Fund Employees' StateInsurance Income Tax Sales Tax Service Tax Excise Duty Customs Duty Value Added TaxCess and other statutory dues applicable to it with the appropriate authorities.

(b) According to the records of the Company there are no dues ofWealth Tax Value Added Tax Sales Tax and Customs Duty which have not been deposited onaccount of any dispute.

The disputed amounts that have not been deposited in respect of IncomeTax Service Tax and Excise Duty are as under:

Name of the Statue Nature of the Dues Forum where the dues is pending

Rs. in Lakhs

1 Central Excise Act1944 Demand of Service Tax on Royalty Deputy Commissioner of Central Excise & Service Tax

1.79

Demand of Excise Duty on Sales under notification and duty on conference expenses Central Excise Appellate Tribunal

79.43

Duty on Sale of Power units & disallowance of Common Input Service Tax Credit Commissioner of Central Excise

245.36

Disallowance of Common Input Service Tax Credit Commissioner of Central Excise (Appeal)

2.36

Disallowance of Input Credit Additional Commissioner of Central Excise

27.71

2 Income tax Act 1961 Income tax Commissioner of Income tax (Appeals).

4.42

viii. According to the records of the Company examined by us andinformation and explanation given to us the Company has not defaulted in repayment ofdues to banks during the year. The company has not taken any loan or borrowing fromgovernment financial institution and has not issued debentures during the year.

ix. The Company has not raised any money by way of public issue/further offer (including debt instruments) and through term loans during the year.Accordingly clause 3(ix) of the order is not applicable to the Company.

x. Based upon the audit procedures performed and information andexplanation given by the management we report that no fraud by the Company and no fraudon the Company by its officers or employees has been noticed or reported during the year.

xi. In our opinion and according to the information and explanationsgiven to us the managerial remuneration has been paid or provided in accordance with therequisite approvals mandated by the provisions of Section 197 read with schedule V to theCompanies Act 2013.

xii. In our opinion and according to the information and explanationsgiven to us the nature of the activities of the company does not attract any specialstatue applicable to Nidhi Company. Accordingly clause 3(xii) of the order is notapplicable to the company.

xiii. According to the information and explanation given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with Sec 177 and 188 of Companies Act 2013 where applicable anddetails of such transactions have been disclosed in the financial statements as requiredby the applicable accounting standards.

xiv. In our opinion and according to the information and explanationsgiven to us and based on our examination of the records of the Company the company hasnot made any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year. Accordingly clause 3 (xiv) of the Order is notapplicable to the Company.

xv. In our opinion and according to the information and explanationsgiven to us and based on our examination of the records of the Company the company hasnot entered into any non-cash transactions with directors or persons connected with him.Accordingly clause 3 (xv) of the Order is not applicable to the Company.

xvi. The company is not required to be registered under Sec 45-IA ofthe Reserve Bank of India Act 1934. Accordingly clause 3 (xvi) of the Order is notapplicable to the Company.

For Kanu Doshi Associates LLP

Chartered Accountants

Firm's Registration No. : 104746W/W100096

Jayesh Parmar Partner

Membership No.45375

Place : Mumbai

Dated : 22nd May 2018

ANNEXURE B - TO THE AUDITORS' REPORT

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

We have audited the internal financial controls over financialreporting of HERCULES HOISTS Limited ("the Company") as of 31 March 2018 inconjunction with our audit of the Ind AS financial statements of the Company for the yearended on that date.

Management's Responsibility for Internal Financial Controls

The Company's Board of Directors are 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 the Company'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 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 aboutthe adequacy 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 Ind AS financial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system overfinancial 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 controls overfinancial 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 opinionto the best of our information and according to theexplanations given to us 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 31 March 2018 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 Kanu Doshi Associates LLP

Chartered Accountants

Firm's Registration No. : 104746W/W100096

Place : Mumbai

Dated : 22nd May 2018

Jayesh Parmar Partner

Membership No.45375