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Hi-Tech Pipes Ltd.

BSE: 543411 Sector: Metals & Mining
NSE: HITECH ISIN Code: INE106T01017
BSE 00:00 | 24 Jun 416.65 8.85
(2.17%)
OPEN

400.00

HIGH

425.35

LOW

400.00

NSE 00:00 | 24 Jun 417.45
(%)
OPEN

409.65

HIGH

424.50

LOW

399.05

OPEN 400.00
PREVIOUS CLOSE 407.80
VOLUME 832
52-Week high 668.00
52-Week low 323.00
P/E 17.12
Mkt Cap.(Rs cr) 511
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 400.00
CLOSE 407.80
VOLUME 832
52-Week high 668.00
52-Week low 323.00
P/E 17.12
Mkt Cap.(Rs cr) 511
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Hi-Tech Pipes Ltd. (HITECH) - Auditors Report

Company auditors report

To The Members of HI-TECH PIPES Limited

Report on the Standalone –IND AS Financial Statements Opinion

We have audited the accompanying Standalone Ind AS financial statements of HI-TECHPIPES Ltd ("the Company") which comprise the standalone Balance Sheet as atMarch 31 2021 and the standalone Statement of Profit and Loss (including OtherComprehensive Income) the standalone Statement of Changes in Equity and the standaloneStatement of Cash Flows for the year then ended and notes to the Standalone Ind ASfinancial statements including a summary of significant accounting policies and otherexplanatory information hereinafter referred to as "Standalone Ind AS FinancialStatements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Ind AS financial statements give the informationrequired by the Companies Act 2013 ("the Act") in the manner so required andgive a true and fair view in conformity with the accounting principles generally acceptedin India including the Indian Accounting Standards ("Ind AS") of the state ofaffairs of the Company as at March 31 2021 its profit including other comprehensiveincome changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with Standards on Auditing (SAs) specified undersection 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone Ind ASFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia ("ICAI") together with the ethical requirements that are relevant to ouraudit of the Standalone Ind AS financial statements under the provisions of the Act andRules there under and we have fulfilled our other ethical responsibilities in accordancewith these requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Standalone Ind AS financial statements of the currentperiod. These matters were addressed in the context of our audit of the Standalone Ind ASfinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.

Modified Audit Procedures carried out in light of COVID-19 outbreak:

Due to COVID-19 pandemic State wide lockdown and travel restrictions imposed by StateGovernment / Local Authorities during the period of our audit and to facilitate carryingout audit remotely wherever physical access was not possible audit could not be conductedby visiting the premises of certain Branches/LHOS/ Business & its Corporate Office ofthe Company.

As we could not gather audit evidence in person/ physically through discussion andpersonal interactions with the officials at the Branches/Circle Administrative /CorporateOffices we have identified such modified audit procedures as a Key Audit Matter.

Accordingly our audit procedures were modified to carry out the audit remotely.

How the matter was addressed in our audit

Due to the outbreak of COVID-19 pandemic that caused State wide lockdown and othertravel restrictions imposed by the State Governments/local administration during theperiod of our audit we could not travel to the Branches/Circle /Administrative /CorporateOffices and carry out the audit processes physically at the respective offices.

Wherever physical access was not possible necessary records/reports/ documents/certificates were made available to us by the Company through digital medium emails andremote access and other relevant application software. To this extent the audit processwas carried out on the basis of such documents reports and records made available to uswhy were relied upon as audit evidence for conducting the audit and reporting for thecurrent period.

Accordingly we modified our audit procedures as follows:

a) Conducted verification of necessary records/ documents and other Applicationsoftware electronically through remote access/emails in respect of some of theAdministrative Offices and other offices of the Company wherever physical access was notpossible.

b) Carried out verification of scanned copies of the documents deeds certificates andthe related records made available to us through emails and remote access over securenetwork of the Bank.

c) Making enquiries and gathering necessary audit evidence through Video Conferencing.Dialogues and discussions over phone calls/conference calls emails and similarcommunication channels.

d) Resolution of our audit observations telephonically through email instead of aface-to-face interaction with the designated officials.

Management's Responsibility for the Standalone Ind AS 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 standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the Indian Accounting Standards(Ind AS) prescribed under section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended and other accounting principles generallyaccepted in India.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of theActforsafeguardingtheassetsoftheCompanyandforpreventing 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 standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the Standalone Ind AS financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so. Board of Directors is also responsible for overseeingthe Company's financial reporting process.

Auditor's Responsibility

Our objectives are to obtain reasonable assurance about whether the standalone Ind ASfinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone Ind AS financial statements. As part of an audit inaccordance with SAs we exercise professional judgment and maintain professionalscepticism throughout the audit. We also:

A Identify and assess the risks of material misstatement of the standalone Ind ASfinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

A Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the Holding Company andits subsidiaries which are companies incorporated in India have adequate internalfinancial controls with reference to financial statements in place and the operatingeffectiveness of such controls.

A Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

A Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the ability ofthe Group to continue as a going concern. If we conclude that a material uncertaintyexists we are required to draw attention in our auditor's report to the relateddisclosures in the standalone Ind AS financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Group to cease to continue as a going concern.

Evaluate the overall presentation structure and content of the standalone Ind ASfinancial statements including the disclosures and whether the standalone Ind ASfinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

Obtain sufficient appropriate audit evidence regarding the financial information of theentities or business activities within the Group to express an opinion on the standaloneInd AS financial statements. We are responsible for the direction supervision andperformance of the audit of the Ind AS financial statements of such entities included inthe standalone Ind AS financial statements; we remain solely responsible for our auditopinion.

We believe that audit evidence obtained by us is sufficient and appropriate to providea basis for our audit opinion on the standalone financial statements.

We communicate with those charged with governance of the Holding Company and such otherentities included in the standalone Ind AS financial statements of which we are theindependent auditors regarding among other matters the planned scope and timing of theaudit and significant audit findings including any significant deficiencies in internalcontrol that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone Ind AS financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit we report to theextent applicable 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 it appears from our examination of these books.

c) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome the Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the relevant books of account.

d) In our opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards prescribed under section 133 of the Act.

e) On the basis of the written representations received from the directors of theCompany as on 31st March 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2021 from being appointed as a director interms of 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 A". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements.

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

iii. There were no amounts which were required to be transferred to the InvestorEducation 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) of the Act we give in"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable

For A. N.GARG & COMPANY
Chartered Accountants
FRN- 004616N
UDIN: 21083687AAAAFP4271
A. N. GARG
(FCA Partner)
M.No:-083687
Place: DELHI
Date: June 07 2021

To the Independent Auditor's Report

(Referred to in paragraph under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date) Report on the Internal FinancialControls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013("the Act")

To the Members of Hi-Tech Pipes Limited

We have audited the internal financial controls over financial reporting of HI-TECHPIPES Limited ("the Company") as of March 31 2021 in conjunction with our auditof the standalone/ standalone Ind AS (retain as applicable) financial statements of theCompany for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company 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 responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to respective company policies the safeguarding of itsassets the prevention and detection of frauds and errors the accuracy and completenessof the accounting records and the timely preparation of reliable financial informationas required under the Companies Act 2013

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting of the Company and its joint operations companiesincorporated in India (retain as applicable) based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India and the Standards on Auditing prescribed under Section 143(10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial 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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or

timely detection of unauthorized acquisition use or disposition of the company'sassets 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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2021 based on "the criteria forinternal financial control over financial reporting established by the respective 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 A. N.GARG & COMPANY
Chartered Accountants
FRN- 004616N
UDIN: 21083687AAAAFP4271
A. N. GARG
(FCA Partner)
M.No.-083687
Place: DELHI
Date: June 07 2021

To the Independent Auditor's Report

The Annexure referred to in paragraph 1 under the heading "Report on Other Legaland Regulatory Requirements" of our Report of even date to the financial statementsof the company for the period 1stApril 2020 to 31st March 2021.

Onthebasisofsuchchecksasweconsideredappropriate and according to the information andexplanation given to us during the course of our audit we report that:-

(i) (a) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;

(b) These fixed assets have been physically verified by the management at reasonableintervals; any material discrepancies were not noticed on such verification;

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

(ii) Physical verification of inventory has been conducted at reasonable intervals bythe management and any material discrepancies were not noticed. Inventories lying withthird parties have been confirmed by them as at March 31 2021 and no materialdiscrepancies were noticed in respect of such confirmations.

(iii) As informed and according to the information and explanations given to us thecompany has not grantedany loans secured or unsecured to companies firms LimitedLiability Partnerships or other parties covered in the register maintained under section189 of the Companies Act 2013.

Accordingly paragraph 3(iii)(a) 3(iii)(b) and 3(iii)(c) of the Order are notapplicable to the Company.

(iv) Based on information and explanations given to us in respect of loansinvestments guarantees and security have been complied with (wherever applicable on thecompany) necessary provision of section 185 & 186 of the Companies Act 2013.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits during the year to which directives issued by theReserve Bank of India and provisions of section 73 to 76 of the Companies Act

2013 and rules framed there under.

(vi) We have broadly reviewed the cost records maintained by the Company pursuant tothe Companies (Cost Records and Audit) Rules 2016 as amended prescribed by the CentralGovernment under sub – section (1) of Section 148 of the Companies Act 2013 and areof the opinion that prima facie the prescribed cost records have been made andmaintained. We have however not made a detailed examination of the cost records with aview to determine whether they are accurate or complete.

(vii) (a) As explained to us and as per the books and records examined by usundisputed statutory dues including Provident Fund Employees State Insurance Income TaxCustom Duty Wealth Tax Sales Tax GST Excise duty Cess and other statutory dues havebeen generally deposited with the appropriate authority on regular basis.

(b) According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income-tax service taxsales-tax GST duty of custom duty of excise value added tax cess and other materialstatutory dues were outstanding at the year end for a period of more than six monthsfrom the date they became payable.

(c) According to the information and explanations given to us by the management andrelied upon by us there are no dues of Income Tax Custom Duty Wealth Tax Sales TaxGST Excise duty &Cess which have not been deposited on account of any dispute exceptthe following Statutory dues which have not been deposited on account of dispute and sameis pending before appropriate authority as follows:

Sl. Name of the No. Statute Nature of Dues Amount Disputed (Rs. in Lakhs) Period to which dues Related Authority where the dispute is Pending for Decision
1. U.P. Tax on Entry of Goods in to Local areas ordinance 2007 The Constitutional validity of U.P. Tax on Entry of Goods in to Local areas ordinance 2007 had been challenged. 281.91 November 2008 to March 2011 Before the High court Allahabad
2. UP-VAT Sales Tax 20.53 2012-13 Before the Additional
3. UP-VAT Sales Tax 22.74 2013-14 Commissioner (Appeal) of Commercial Tax Authority Ghaziabad Uttar Pradesh

(viii)In our opinion and according to the information and explanations given by themanagement the Company has not defaulted in repayment of dues of banks or financialinstitutions. The Company did not have any outstanding in respect of debentures during theyear.

(ix) In our opinion and according to the information and explanations given by themanagement the company has utilized the money raised by way of initial public issueoffer/further public offer and the term loans during the year for the purposes for whichthey were raised.

(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud by the Company or any fraud on the company by its officers or employeesnoticed or reported during the year nor have we been informed of any such instance by themanagement.

(xi) According to the information and explanations given by the management managerialremuneration has been paid or provided in accordance with the requisite approvals mandatedby the provisions of section 197 read with Schedule V to the Companies Act.

(xii) In our opinion on the basis of information and explanations given by themanagement the Company is not a Nidhi Company. Therefore the provisions of clause 3(xii)of the order are not applicable to the Company.

(xiii)According to the information and explanations given by the management alltransactions with the related parties are in compliance with sections 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the FinancialStatements as required by the applicable accounting standards.

(xiv) During the year the company has issued & allotted 1370000 fully convertiblewarrants to the promoters group and non-promoters group category out of which on thereceipt of balance amount from the allottes company has made conversion of 280000 fullyconvertible warrants into equivalent number of equity shares to the persons belongs topromoters and non-promoters groups category per provision of the Company Act and ICDRRegulation2018.

(xv) According to the information and explanations given by the management the companyhas not entered into any non-cash transactions with directors or persons connected withhim during the year.

(xvi) According to the information and explanations given by the management provisionof section 45-IA of the Reserve Bank of India Act 1934 are not applicable to company.

For A. N.GARG & COMPANY
Chartered Accountants
FRN- 004616N
UDIN: 21083687AAAAFP4271
A. N. GARG
(FCA Partner)
M.No.-083687
Place: DELHI
Date: June 07 2021

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