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Hil Ltd.

BSE: 509675 Sector: Industrials
NSE: HIL ISIN Code: INE557A01011
BSE 00:00 | 22 Oct 4915.65 -130.15
(-2.58%)
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5066.00

HIGH

5091.90

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4894.70

NSE 00:00 | 22 Oct 4912.35 -131.10
(-2.60%)
OPEN

5050.00

HIGH

5097.15

LOW

4890.05

OPEN 5066.00
PREVIOUS CLOSE 5045.80
VOLUME 1599
52-Week high 6750.00
52-Week low 1650.00
P/E 15.43
Mkt Cap.(Rs cr) 3,682
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 5066.00
CLOSE 5045.80
VOLUME 1599
52-Week high 6750.00
52-Week low 1650.00
P/E 15.43
Mkt Cap.(Rs cr) 3,682
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Hil Ltd. (HIL) - Auditors Report

Company auditors report

To the Members of HIL Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of HIL Limited("the Company") which comprise the standalone balance sheet as at 31 March2021 and the standalone statement of profit and loss (including other comprehensiveincome) standalone statement of changes in equity and standalone statement of cash flowsfor the year then ended and notes to the standalone financial statements including asummary of the significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("Act") in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at 31 March 2021and profit and other comprehensive income changes in equity and its cash flows for theyear ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under Section 143(10) of the Act. Our responsibilities under those SAs arefurther described in the Auditor's Responsibilities for the Audit of theStandalone Financial Statements Section of our report. We are independent of theCompany in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India together with the ethical requirements that are relevant to our auditof the standalone financial statements under the provisions of the Act and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese 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 on thestandalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.

Revenue Recognition
The key audit matter How the matter was addressed in our audit
See note 23 to the standalone financial statements In view of the significance of the matter we applied the following audit procedures in this area among others to obtain sufficient appropriate audit evidence:
The Company's revenue is primarily derived from sale of products of roofing solutions building solutions polymer solutions and others.
– We assessed the appropriateness of the revenue recognition accounting policies and compliance with applicable accounting standards;
We have identified timing of revenue recognition as a key audit matter because there are variations in different sale contracts and consequently there is a risk of revenue being overstated on account of recognition before transfer of control particularly due to pressures for achieving the performance targets for the year and understatement on account of recognition of revenue in the subsequent period due to achievement of the performance targets for the current year.
– We evaluated the design and implementation of key internal financial controls with respect to revenue recognition and tested operating effectiveness of such controls on selected transactions;
– We performed substantive testing on samples selected using statistical sampling of revenue transactions recorded during the year by testing the underlying documents to assess whether criteria for revenue recognition are met;
– We tested sample journal entries selected based on specified risk- based criteria to identify unusual items;
– We tested on a sample basis using statistical sampling specific revenue transactions recorded around the year end date to check whether revenue has been recognised in the correct reporting period by testing the underlying documents; and
– We carried out product wise year on year variance analysis on revenue recognised during the year to identify unusual variances.

Other Information

The Company's management and Board of Directors are responsiblefor the other information. The other information comprises the information included in theCompany's annual report but does not include the financial statements and ourAuditors' Report thereon.

Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated. Ifbased on the work we have performed we conclude that there is a material misstatement ofthis other information we are required to report that fact. We have nothing to report inthis regard.

Management's and Board of Directors' Responsibility for theStandalone Financial Statements

The Company's Management and Board of Directors are responsiblefor the matters stated in Section 134(5) of the Act with respect to the preparation ofthese standalone financial statements that give a true and fair view of the state ofaffairs profit and other comprehensive income changes in equity and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act.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 accuracy and completeness of theaccounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the standalone financial statements the Management andBoard of Directors are responsible for assessing the Company's ability to continue asa going concern disclosing as applicable matters related to going concern and using thegoing concern basis of accounting unless the Board of Directors either intends toliquidate the Company or to cease operations or has no realistic alternative but to doso.

The Board of Directors is also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

– Identify and assess the risks of material misstatement of the standalonefinancial 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.

– Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under Section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls.

– Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures in the standalone financial statementsmade by the Management and Board of Directors.

– Conclude on the appropriateness of the Management and Board of Directors use ofthe going concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the standalone financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor's report. However future events orconditions may cause the Company to cease to continue as a going concern.

– Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditors' report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors' Report) Order 2016("the Order") issued by the Central Government in terms of Section 143 (11) ofthe Act we give in the "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

2. (A) 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 standalone balance sheet the standalone statement of profit and loss (includingother comprehensive income) the standalone statement of changes in equity and thestandalone statement of cash flows dealt with by this Report are in agreement with thebooks of account.

d) In our opinion the aforesaid standalone financial statements comply with the Ind ASspecified under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31March 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2021 from being appointed as a director in terms of Section164(2) of the Act.

f) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B".

(B) With respect to the other matters to be included in the Auditors' 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 as at 31 March 2021 onits financial position in its standalone financial statements - Refer Note 39 to thestandalone financial statements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses - Refer Note 53 to the standalonefinancial statements;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company; iv. The disclosures in thestandalone financial statements regarding holdings as well as dealings in specified banknotes during the period from 8 November 2016 to 30 December 2016 have not been made inthese financial statements since they do not pertain to the Financial Year ended 31 March2021.

(C) With respect to the matter to be included in the Auditors' Report underSection 197(16):

In our opinion and according to the information and explanations given to us theremuneration paid by the Company to its directors during the current year is in accordancewith the provisions of Section 197 of the Act.

The remuneration paid to any director is not in excess of the limit laid down underSection 197 of the Act. The Ministry of Corporate Affairs has not prescribed other detailsunder Section 197(16) which are required to be commented upon by us.

for B S R & Associates LLP
Chartered Accountants
ICAI Firm Registration No.: 116231W/ W-100024
Vikash Somani
Partner
Membership No.: 061272
ICAI UDIN: 21061272AAAAAX7860
Place: Hyderabad
Date: 14 May 2021

Annexure A

To the Independent Auditors' Report on the Standalone FinancialStatements of HIL Limited for the year ended 31 March 2021

With reference to the Annexure A referred to in Paragraph 1 in Reporton Other Legal and Regulatory Requirements of the Independent Auditors' Report ofeven date to the Members of HIL Limited ("the Company") on the standalonefinancial statements for the year ended 31 March 2021 we report that:

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

(b) The Company has a regular programme of physical verification of its fixed assets bywhich all fixed assets are verified in a phased manner over a period of three years. Inour opinion the periodicity of physical verification is reasonable having regard to thesize of the Company and the nature of its fixed assets. Pursuant to the programme certainfixed assets were physically verified during the year and no material discrepancies werenoticed on such verification.

(c) According to the information and explanations given by the Management the titledeeds of immovable properties included in fixed assets and investment property are held inthe name of the Company except for freehold land and investment property of H 1.27 lacsand H 427.60 lacs respectively titles of which is yet to be registered in the name of theCompany. Also refer Note 4(a) and 5(c) to the standalone financial statements.

ii. The inventory except goods-in-transit have been physically verified by theManagement during the year. In our opinion the frequency of such verification isreasonable. The discrepancies noticed on verification between the physical stock and thebook records were not material and have been appropriately dealt with in the books ofaccount.

iii. The Company has granted unsecured loan to one of its wholly owned subsidiary whichis covered in the Register maintained under Section 189 of the Companies Act 2013("the Act"). The Company has not granted any other loans secured or unsecuredto firms limited liability partnerships or other parties covered in the Registermaintained under Section 189 of the Act.

a) The terms and conditions of the aforesaid loan are not prejudicial to the interestof the Company.

b) The schedule of repayment of principal and payment of interest has been stipulatedand the repayments are generally regular.

c) There are no overdue amounts in respect of the aforesaid loan.

iv. The Company has not granted any loans or provided any guarantees or security to theparties covered under Section 185 of the Act. The Company has complied with the provisionsof Section 186 of the Act in respect of investment made or loan provided to the partiescovered under Section 186 of the Act. According to the information and explanations givento us the Company has not provided guarantee or security to any parties covered underSection 186 of the Act.

v. The Company has not accepted any deposits from the public within the meaning of thedirectives issued by the Reserve Bank of India provisions of Section 73 to 76 of the Actany other relevant provisions of the Act and the relevant rules framed thereunder.Accordingly paragraph 3(v) of the Order is not applicable to the Company.

vi. We have broadly reviewed the books of account maintained by the Company pursuant tothe Rules made by the Central Government of India for the maintenance of cost recordsunder Section 148(1) of the Act and are of the opinion that prima facie the specifiedaccounts and records have been made and maintained. We have not however made a detailedexamination of the same.

vii. (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 ofaccount in respect of undisputed statutory dues including Provident Fund Employees'State Insurance Income-tax Duty of Customs Goods and Service Tax Cess and othermaterial statutory dues have generally been regularly deposited during the year by theCompany with the appropriate authorities though there have been slight delays in fewcases. According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Employees' State Insurance Income-tax Duty ofCustoms Goods and Service Tax Cess and other material statutory dues were in arrears asat 31 March 2021 for a period of more than six months from the date they became payable.As explained to us the Company did not have any undisputed statutory dues on account ofSales tax Service tax Duty of Excise and Value Added Tax. Also refer note 39 to thestandalone financial statements.

(b) According to the information and explanations given to us and on the basis of ourexamination of records of the Company the dues outstanding of Income-tax Sales taxService tax Duty of Excise and Value added tax on account of any dispute are as follows:

Statute/ Nature of dues Amount in Rupees lacs* Period to which the amount relates Forum where dispute is pending
Sales tax/ Value added tax 2.66 1988-89 1990-911997-98 Supreme Court
105.26 1981-82 1985-86 2001-02 2002-03 2007-08 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 High Court(s)
463.78 1989-2015 Tribunal(s)
1888.93 1991-2018 Appellate Authority up to Commissioner's level
Excise duty (including service tax) 90.10 2004-09 Supreme Court
1.28 2007-08 High Court(s)
315.27 2008-2018 CESTAT(s)
498.04 2003-2018 Appellate Authority up to Commissioner's level
Income-tax 938.97 2005-06 2013-14 High Court
291.56 2008-09 2009-10 2010-11 2011-12 2012-13 2018-19 Appellate Authority up to Commissioner's level
Wealth tax 56.98 1993-94 1994-95 1995-96 1996-97 1997-98 Hon'ble High Court of Telangana and Andhra Pradesh

*The amounts disclosed are net of payments and include interest andpenalties wherever applicable.

As explained to us the Company did not have any disputed statutory dues on account ofDuty of Customs. viii. In our opinion and according to the information and explanationsgiven to us the Company has not defaulted in repayment of loans or borrowing to afinancial institution bank or Government. The Company does not have any outstanding duesto debenture holders.

ix. In our opinion and according to the information and explanations given to us theCompany did not raise any money by way of initial public offer or further public offer(including debt instruments) during the year. In our opinion and according to theinformation and explanations given to us the term loans taken by the Company and appliedduring the year were for the purpose for which they were raised.

x. According to the information and explanations given to us no material fraud on theCompany by its officers and employees or fraud by the Company has been noticed or reportedduring the course of our audit.

xi. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/ provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act.

xii. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company is not a Nidhi Company prescribedunder Section 406 of the Act. Accordingly the provisions of Clause 3(xii) of the Orderare not applicable to the Company.

xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company all transactions with the related parties arein compliance with Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the standalone financial statements as required bythe applicable accounting standards.

xiv. According to the information and explanations given 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. Accordingly the provisions of Clause 3(xiv) of the Order are not applicable tothe Company.

xv. 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 any non-cashtransactions with directors or persons connected with them as referred to in Section 192of the Act.

xvi. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company is not required to be registeredunder Section 45-IA of the Reserve Bank of India Act 1934. Accordingly the provisions ofClause 3(xvi) of the Order are not applicable to the Company.

for B S R & Associates LLP
Chartered Accountants
ICAI Firm Registration No.: 116231W/ W-100024
Vikash Somani
Partner
Membership No.: 061272
ICAI UDIN: 21061272AAAAAX7860
Place: Hyderabad
Date: 14 May 2021

Annexure B

To the Independent Auditors' Report on the Standalone FinancialStatements of HIL Limited for the year ended 31 March 2021

Report on the internal financial controls with reference to theaforesaid Standalone Financial Statements under Clause (i) of Sub-Section 3 of Section 143of the Companies Act 2013

(Referred to in paragraph 2(A)(f) under ‘Report on Other Legal andRegulatory Requirements' Section of our report of even date)

Opinion

We have audited the internal financial controls with reference tofinancial statements of HIL Limited ("the Company") as of 31 March 2021 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

In our opinion the Company has in all material respects adequateinternal financial controls with reference to standalone financial statements and suchinternal financial controls were operating effectively as at 31 March 2021 based on theinternal financial controls with reference to standalone financial statements 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 (the "Guidance Note").

Management's Responsibility for Internal Financial Controls

The Company's management and the Board of Directors areresponsible for establishing and maintaining internal financial controls based on theinternal financial controls with reference to standalone financial statements criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note. These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013(hereinafter referred to as "the Act").

Auditors' Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls with reference to standalone financial statements based on ouraudit. We conducted our audit in accordance with the Guidance Note and the Standards onAuditing prescribed under Section 143(10) of the Act to the extent applicable to anaudit of internal financial controls with reference to standalone financial statements.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls with reference to standalone financial statements were established andmaintained and whether such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls with reference to standalone financialstatements and their operating effectiveness. Our audit of internal financial controlswith reference to standalone financial statements included obtaining an understanding ofsuch internal financial controls assessing the risk that a material weakness exists andtesting and evaluating the design and operating effectiveness of internal control based onthe assessed risk. The procedures selected depend on the auditor's judgementincluding the assessment of the risks of material misstatement of the standalone financialstatements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls with reference to standalone financial statements.

Meaning of Internal Financial Controls with Reference to StandaloneFinancial Statements

A company's internal financial controls with reference tostandalone financial statements is a process designed to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of standalonefinancial statements for external purposes in accordance with generally acceptedaccounting principles. A company's internal financial controls with reference tostandalone financial statements include those policies and procedures that (1) pertain tothe maintenance 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 standalonefinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on thestandalone financial statements.

Inherent Limitations of Internal Financial controls with Reference toStandalone Financial Statements

Because of the inherent limitations of internal financial controls withreference to standalone financial statements including the possibility of collusion orimproper management override of controls material misstatements due to error or fraud mayoccur and not be detected. Also projections of any evaluation of the internal financialcontrols with reference to standalone financial statements to future periods are subjectto the risk that the internal financial controls with reference to standalone financialstatements may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

for B S R & Associates LLP
Chartered Accountants
ICAI Firm Registration No.: 116231W/ W-100024
Vikash Somani
Partner
Membership No.: 061272
ICAI UDIN: 21061272AAAAAX7860
Place: Hyderabad
Date: 14 May 2021

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