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Hindustan Everest Tools Ltd.

BSE: 505725 Sector: Engineering
NSE: N.A. ISIN Code: INE598D01019
BSE 00:00 | 04 Mar Hindustan Everest Tools Ltd
NSE 05:30 | 01 Jan Hindustan Everest Tools Ltd
OPEN 53.00
PREVIOUS CLOSE 51.05
VOLUME 1020
52-Week high 55.00
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 8
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 53.00
CLOSE 51.05
VOLUME 1020
52-Week high 55.00
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 8
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Hindustan Everest Tools Ltd. (HINDEVERTOOLS) - Auditors Report

Company auditors report

TO THE MEMBERS OF HINDUSTAN EVEREST TOOLS LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of HINDUSTAN EVEREST TOOLSLIMITED ("the Company") which comprise the Balance Sheet as at 31st March2017 the Statement of Profit and Loss the Cash Flow Statement and a summary of thesignificant accounting policies and other explanatory information for the year then ended.

Management's Responsibility for the 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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgements 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 financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. 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 in accordancewith the 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 financial statements are free from materialmisstatement

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness 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 sufficient and appropriate toprovide a basis for our adverse audit opinion on the financial statements.

Basis for Adverse Opinion

The net worth of the Company has been completely eroded as on 31st March 2017 due tocontinuous losses incurred by the Company. The Company's total liabilities exceed itstotal assets appearing in Balance sheet as on 31st March 2017. The Company has alsodeclared closure of its only manufacturing unit. These conditions along with no futurebusiness plan indicate the existence of a material uncertainty that may cast significantdoubt about the Company's ability to continue as a going concern and therefore theCompany may be unable to realize its assets and discharge its liabilities in the normalcourse of business. The financial statements (and notes thereto) do not disclose thisfact. These cause us to believe that the financial statements should not have beenprepared on a going concern basis and many elements in the accompanying financialstatements would have been materially affected. The effects on the financial statementsdue to above have not been determined.

Adverse Opinion

In our opinion because of the omission of the information and significance of thematters discussed in the Basis for Adverse Opinion paragraph the financial statements donot give the information required by the Companies Act2013 in the manner so required andalso do not 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 31st March2017 and its loss and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. 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 ofthe Companies Act2013 we give in the Annexure A a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

2. 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 except inventory recordswhich were not available due to closure of unit.

(c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

(d) Due to possible effects of the matters described in the Basis for Adverse OpinioIn our opinion the aforesaid financial statements do not comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

(e) The matter about erosion of net worth as on 31st March2017 and preparation ofaccounts on going concern basis as discussed in the Basis for Adverse Opinion in ouropinion may have adverse effect on the functioning of the Company.

(f) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualifiedas on 31st March 2017 from being appointed as a director in terms of Section164 (2) of the Act.

(g) With respect to the adequacy of the internal financial control over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

(h) 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 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 on its financialposition in its financial statements Refer Note 17 to the financial statements

ii. The Company has no long-term contracts including derivative contracts havingmaterial foreseeable losses;

iii. The Company has no amount required to be transferred to the Investor Educationand Protection Fund.

iv. The Company has provided disclosures in Note No.37 to these financial statements asto holding of Specified Bank Notes on November 8 2016 and December 30 2016 as well asdealings in Specified Bank Notes during the period from November 8 2016 to December 302016. However we are unable to obtain sufficient and appropriate audit evidence to reporton whether the disclosures are in accordance with books of account maintained by theCompany and as produced to us by the Management.

For Singhi & Co..
Chartered Accountants
Firm's Reg. No.302049E
B. K. Sipani
Place: New Date Partner
Date: 23rd October2017 Membership No 088926

Annexure A

Annexure referred to in paragraph 1 of our report of even date on the other legal andregulatory requirements (Re: Hindustan Everest Tools Limited)

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

b. Fixed assets have not been physically verified by the management at regularinterval.

c. According to information and explanations given by the management the title deedsof immovable properties included in fixed assets are held in the name of the company.

(ii) Inventories were not physically verified interval. Due to closure of the unit records related to inventories were not available.

(iii) According to the information and explanations given to us the Company has notgranted any loan secured or unsecured to Companies firms Limited Liability Partnershipsor other parties covered in the register maintained under Section 189 of the CompaniesAct 2013. Therefore the provisions of clause 3(iii) of the order are not applicable tothe Company.

(iv) According to the information and explanations given to us the Company has notgranted any loan made investments or provided guarantees and securities in respect ofwhich provisions of section 185 and 186 of the Companies Act 2013 are applicable.Therefore the provisions of the clause 3(iv) of the Order are not applicable to theCompany.

(v) The Company has not received any deposit during the year as covered under section76 of the Companies Act 2013. Therefore provisions of clause 3(v) of the Order are notapplicable to the Company.

(vi) As informed to us the Central Government has not prescribed maintenance of costrecords under section 148 (1) of the Companies Act2013. Therefore the provision ofclause 3 (vi) of the Order are not applicable.

(vii) a. According to the records of the Company the Company has delayed in manycases in depositing undisputed statutory dues including provident fund employees' stateinsurance income-tax sales-tax service tax duty of customs duty of excise valueadded tax cess and other material statutory dues deducted/accrued in the books with theappropriate authorities where applicable . However there were no undisputed outstandingstatutory dues as at the yearend for a period of more than six months from the date theybecame payable.

b. According to the records of the Company there are no dues outstanding of incometax sales tax service tax duty of customs duty of excise and value added tax onaccount of any dispute.

(viii) The Company has not defaulted in repayment of dues to banks. The Company did nothave any outstanding loan from any financial institution and Government and dues todebenture holders.

(ix) The Company has not raised any monies by way of initial public offer or furtherpublic offer (including debt instruments) or through term loan. Therefore the provisionsof the clause 3 (ix) of the Order are not applicable.

(x) Based upon the audit procedures performed in accordance with generally acceptedauditing practice in India for the purpose of reporting the true and fair view of thefinancialstatements and according to the information and explanations given to us nofraud by the Company or no fraud on the Company by its officers and employees has beennoticed or reported during the .

(xi) According to the information and explanations given by the management managerialremuneration has been paid /provided in accordance with the requisite approvals mandatedby the provisions of section 197 read with schedule V to the Companies Act 2013.

(xii) In our opinion the Company is not a Nidhi company. Therefore the provisions ofclause 3(xii) of the Order are not applicable to the Company.

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

(xiv) The Company has not made any preferential allotments or private placement ofshares or fully or partly convertible debentures during the year under review. Thereforethe provisions of clause 3(xiv) of the Order are not applicable.

(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 withdirectors. Therefore the provisions of clause 3(xv) of the Order are not applicable.

(xvi) In our opinion the Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934. Therefore the provisions of clause 3 (xvi) of theorder are not applicable.

For Singhi & Co.
Chartered Accountants
Firm Reg. No. 302049E
B. K. Sipani
Place: New Delhi Partner
Date: 23rd August 2017 Membership No. 088926

ANNEXURE B

Report on the Internal Financial controls under Clause (i) of Sub - section 3 ofSection 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of HindustanEverest Tools Ltd. ("the Company") as of March 31 2016 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over the 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 responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing deemed to be prescribedunder section 143(10) of the Companies Act 2013 to the extent 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 fectively 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 exist and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditors' judgments including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our disclaimer of opinion on the Company's internal financial controlssystem over financial 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 financial reporting and the preparation offinancial statements for external purposes in accordance with generally acceptedaccounting principles. A company's internal; financial control over financial reportingincludes those policies and procedures that (1) pertain to the maintenance of recordsthat 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 authorization ofmanagement and directors of the company ; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 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 controlsover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Disclaimer of Opinion

According to the information and explanation given to us the Company has discontinuedits internal financial control over financial reporting on criteria based on orconsidering 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. Because of this reason we are unable to obtain sufficientappropriate audit evidence to provide a basis for our opinion whether the Company hadadequate internal financial controls over financial reporting and whether such internalfinancial controls were operating effectively as at March 312017.

We have considered the disclaimer reported above in determining the nature timing andextent of audit tests applied in our audit of the financial statements of the Company andthe disclaimer does not affect our adverse opinion on the financial statements of theCompany

For Singhi & Co.
Chartered Accountants
Firm Reg. No. 302049E
B. K. Sipani
Place: New Delhi Partner
Date: 23rd August 2017 Membership No. 088926