To the Members of
Hindustan Adhesives Limited
Report on the Standalone Ind AS Financial Statements
1) We have audited the accompanying standalone Ind AS financial statements of HindustanAdhesives Limited ("the Company") which comprise the Balance Sheet as at 31stMarch 2019 and the Statement of Profit and Loss (including Other Comprehensive Income)the Cash Flow Statement and the Statement of Changes in Equity for the year then endedand a summary of the significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Ind AS Financial Statements
2) 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 preparationand presentation of these standalone Ind AS financial statements that give a true and fairview of the state of affairs(financial position) profit (financial performance includingother comprehensive income)cash flows and changes in equity of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting Standards (Ind AS)prescribed under Section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing 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.
3) Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit.
We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.
We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS financial statements are freefrom material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone 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 standalone Ind AS financial statements thatgive a true and 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 of the standalone Ind ASfinancial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.
4) 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 Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including the Ind AS of thefinancial position of the Company as at 31"March2019 its financial performanceincluding other comprehensive income its cash flows and the changes in equity for theyear ended on that date.
Report on Other Legal and Regulatory Requirements
5) As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of Section 143(11) of the Act we givein the "Annexure A" a statement on the matters specified in the paragraph 3 and4 of the said order.
6) As required by Section 143(3) of the Act we report that:
a. We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.
b. In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.
c. The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveLoss the Cash Flow Statement and Statement of Changes in Equity dealt with by this reportare in agreement with the 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 as at 31stMarch2019 taken on record by the Board of Directors none of the directors isdisqualified as at 31st March 2019 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 B".
g. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:
i) There has been no pending litigation the impact of which is required to bedisclosed on its financial position in its Ind AS financial statements
ii) The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts
iii) There was no amount which was required to be transferred to the Investor Educationand protection fund by the Company.
| ||For Rajan Goel and Associates |
| ||Chartered Accountants |
| ||Firm Registration Number 04624N |
| ||(CA Rajan Kumar Goel) |
|Place: New Delhi ||Proprietor |
|Date: 30 May 2019 ||(M No. 083829) |
ANNEXURE "A" TO THE INDEPENDENT AUDITORS' REPORT
(Annexure referred to in paragraph 7 under Report on Other Legal and RegulatoryRequirements' section of our report of even date to the members of Hindustan AdhesivesLimited on the Ind AS Financial Statements for the year ended 31st March 2019)
i) In respect of fixed assets:
a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b) As explained to us during the year physical verification of major assets has beenconducted by the management at reasonable intervals and the discrepancies observed areproperly dealt with in the boos of accounts .
c) According to the information and explanation given by the management the title deedsof immovable properties are held in the name of the company except land admeasuring 0.0253hectares part of the existing factory land located at Dadri (Ghaziabad).
ii) In respect of its inventories:
a) The inventory except for goods-in-transit has been physically verified by themanagement at reasonable intervals during the year. In our opinion the frequency of suchverification is reasonable. In respect of goods-in-transit subsequent goods receipts havebeen verified or confirmations have been obtained from the parties. The discrepanciesnoticed on verification between the physical stocks and the book records were not materialand have been properly dealt in the books of accounts.
b) As informed by the management the proper records of inventory are being maintainedand no material discrepancies were noticed during such physical verifications.
iii) In our opinion and according to the information and explanations given to usthe Company has not granted any loans secured or unsecured to companies firms LimitedLiability Partnerships or other parties covered in the register maintained under Section189 of the Act. Accordingly paragraph 3(iii) of the Order is not applicable to theCompany.
iv) In our opinion and according to the information and explanations given to usthe Company has not advanced loans to directors/to a Company in which the Director isinterested to which provisions of Section 185 of the Companies Act 2013.Further Section186 of the Companies Act 2013 is not applicable to the Company.
v) The Company has not accepted any deposit from public and therefore theprovisions of the clause 3 (v) of the order are not applicable to the company.
vi) We have broadly reviewed the books of account maintained by the Company asspecified under Section 148(1) of the Act for maintenance of cost records in respect ofproducts manufactured by the Company and are of the opinion that prima facie theprescribed accounts and records have been made and maintained. However we have not made adetailed examination of the cost records with a view to determine whether they areaccurate or complete.
vii) a) According to the information and explanations given to us and on thebasis of our examination of the records of the Company amounts deducted/accrued in thebooks of account in respect of undisputed statutory dues including Provident FundEmployees' State Insurance Income-tax Sales-tax Service tax Duty of Customs Duty ofExcise Value added tax Cess and other material statutory dues have been regularlydeposited during the year by the Company with the appropriate authorities and according tothe information and explanations given to us no undisputed amounts payable in respect ofProvident Fund Employees' State Insurance Income-tax Sales-tax Service tax Duty ofCustoms Duty of Excise Value added tax Cess and other material statutory dues were inarrears as at 31 March 2018.
b) According to the information and explanations given to us there are no disputedstatutory dues which have to be deposited with the appropriate authorities.
viii) According to the information and explanations given to us The Company hasnot defaulted in the repayment of dues to any financial institution banks Government anddebenture holders during the year.
ix) According to the information and explanations given to us the term loanshave been applied by the Company during the year for the purposes for which they wereobtained. The Company did not raise money by way of initial public offer or further publicoffer (including debt instruments) during the year.
x) According to the information and explanations given by the management and to thebest of our knowledge and belief no fraud by the Company or on the Company by its officeror employees has been noticed or reported during the course of our audit.
xi) According to the information and explanations give 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) The Company is not a Nidhi Company and therefore the provisions of Clause 3 (xii)of the order is not applicable to the company.
xiii) According to the information and explanations given by the managementtransactions 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 Ind ASfinancial statements etc. as required by the applicable accounting standards.
xiv) The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year and hence reporting under Clause3(xiv) of the order is not applicable to the company.
xv) According to information and explanations given to us by the management theCompany has not entered into any non- cash transactions specified under Section 192 of theCompanies Act 2013 with directors or persons connected with him.
xvi) The Company is not required to be registered with RBI under Section 45-IA ofReserve Bank of India Act 1934.
| ||For Rajan Goel and Associates |
| ||Chartered Accountants |
| ||Firm Registration Number 04624N |
| ||(CA Rajan Kumar Goel) |
|Place : New Delhi ||Proprietor |
|Date : 30th May 2019 ||(M No. 083829) |