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Hindustan Everest Tools Ltd.

BSE: 505725 Sector: Engineering
NSE: N.A. ISIN Code: INE598D01019
BSE 00:00 | 07 Apr 65.80 -1.20
(-1.79%)
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65.80

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65.80

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65.80

NSE 05:30 | 01 Jan Hindustan Everest Tools Ltd
OPEN 65.80
PREVIOUS CLOSE 67.00
VOLUME 100
52-Week high 78.00
52-Week low 29.95
P/E
Mkt Cap.(Rs cr) 11
Buy Price 65.80
Buy Qty 50.00
Sell Price 65.70
Sell Qty 900.00
OPEN 65.80
CLOSE 67.00
VOLUME 100
52-Week high 78.00
52-Week low 29.95
P/E
Mkt Cap.(Rs cr) 11
Buy Price 65.80
Buy Qty 50.00
Sell Price 65.70
Sell Qty 900.00

Hindustan Everest Tools Ltd. (HINDEVERTOOLS) - Auditors Report

Company auditors report

TO THE MEMBERS OF HINDUSTAN EVEREST TOOLS LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying Standalone financial statements of Hindustan Everest Tools Limited (the Company) which comprise the Balance sheet as at March 31 2019 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 ended and notes to the financial statements including a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us the aforesaid Ind AS financial statements give the information required by the Companies Act 2013 as amended (the Act) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at March 31 2019 its loss including other comprehensive income its cash flows and the changes in equity for the year ended on that date

Basis for Opinion

We conducted our audit of the Ind AS financial statements in accordance with the Standards on Auditing (SAs)as specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the `Auditor's Responsibilities for the Audit of the Standalone Financial Statements' section of our report. We are independent of the Company in accordance with the `Code of Ethics' issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules there under and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the IndAS financial statements.

Emphasis of Matter - Material Uncertainty Related to Going Concern

We draw attention to note 22 to the standalone financial statements explaining in detail the management's plan to identify a new business subsequent to closure of the Company's only manufacturing unit and the ability of the Company to continue as a going concern. The conditions that exist after closure of the only manufacturing plant of the Company cast a significant doubt on the ability of the Company to continue as a going concern.

Our opinion is not qualified in respect of this matter.

Key Audit Matters

Except for the matter described in the Material Uncertainty Related to Going Concern section above we have determined that there are no other key audit matters to communicate in our report.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the other information. The other information comprises the information included in the Annual report but does not include the standalone financial statements and our auditor's report thereon. The Annual Report is expected to be made available to us after the date of this auditor's report Our opinion on the standalone financial statements does not cover the other information and we conclusion thereon. In connection with our audit of the standalone financial statements our responsibility is to read the other information identified above when it becomes available and in doing so consider whether such other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. When we read the Annual Report If based on the work we have performed we conclude that there is a material misstatement of this other information we are required to report that fact to those charged with governance.

Responsibilities of Management for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position financial performance(including other comprehensive income) cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India including the Indian Accounting Standards specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement whether due to fraud or error.

In preparing the standalone financial statements management is responsible for assessing the Company's ability to continue as a going concern disclosing as applicable matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations or has no realistic alternative but to do so. Those charged with governance are also responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancialstatements as a whole are free from material misstatement whether due 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 audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if individually or in the aggregate they could reasonably be expected to influence the standalone financial statements.

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

 Identify and assess the risks of material misstatement of the Ind AS financial design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion forgery intentional omissions misrepresentations or the override of internal control.

 Obtain an understanding of internal control relevant to the audit in order to design 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 has adequate internal financial controls system in place and the operating effectiveness of such controls.

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

 Conclude on the appropriateness of management's use of the going concern basis of accounting and based on the audit evidence obtained whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists we are required to draw attention in our auditor's report to the related disclosures in the financial statements or if such disclosures are inadequate to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However future events or conditions may cause the Company to cease to continue as a going concern.

 Evaluate the overall presentation structure and content of the standalone financial statements including the disclosures and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters the planned scope and timing of the audit and significant audit findings including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine those matters that were of most significance in the audit of the standalone financial statementsforthefinancialyear ended March 31 2019 and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when in extremely rare circumstances we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

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 of the Actwe give in the Annexure 1a statement on the matters specified in paragraphs 3 and 4 of the Order.

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 best of 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 the Company so far as it appears from our examination of those books;

(c) The Balance Sheet the Statement of Profit and Loss(including Other Comprehensive Income) the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid standalonefinancial statements comply with the Accounting Standards specified under Section 133 of the Act read with Companies (Indian Accounting Standards) Rules 2015 as amended;

(e) On the basis of the written representations received from the directors as on March 31 2019 taken on record by the Board of Directors none of the directors is disqualified as on March 31 2019 from being appointed as a director in terms of Section 164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company with reference to these standalone financial statements and the operating effectiveness of such controls refer to our separate Report in Annexure 2 to this report;

 (g) In our opinion the managerial remuneration for the year ended March 31 2019 has been paid by the Company to its directors in accordance with the provisions of section 197 read with Schedule V to the Act;

(h) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended in our opinion and 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 financial position in its standalone financial statements Refer note to 22 (b)(iv) the financial statements;

II. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses; and

III. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

For SSRA & Co.

Chartered Accountants

Firm Registration Number: 014266N

Suresh Goyal

Partner

Membership Number: 093711

Place: New Delhi

Date: May 16 2019

ANNEXURE 1 TO THE INDEPENDENT AUDITOR'S REPORT

[Referred to in paragraph 1 under `Report on Other Legal and Regulatory Requirements' in the Independent Auditor's Report of even date to the members of Hindustan Everest Tools Limited on the standalone financial statements for the year ended March 31 2019]

i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of property plant and equipment. Further refer note 22 related to discontinued operations.

(b) During the year the property plant and equipment of the Company have been physically verified by the management and as informed no material discrepancies were noticed on such verification. In our opinion the frequency of verification is reasonable having regard to the size of the Company and the nature of its assets. Further refer note 22 related to discontinued operations.

(c) The title deeds of immovable properties recorded as property plant and equipment in the books of account of the Company are held in the name of the Company. Further refer note 22 related to discontinued operations.

ii) The Company does not hold any inventory (refer note 22 related to discontinued operations). Accordingly the provisions of paragraph 3 (ii) of the Order are not applicable to the Company.

iii) Based on information and explanation given to us the Company has not granted any loans secured or unsecured to companies firms Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Act. Accordingly the provisions of paragraph 3 (iii)(a) 3 (iii)(b) and 3 (iii)(c) of the Order are not applicable to the Company.

iv) Based on information and explanation given to us the Company has not given guarantees or securities for loan taken by others and has not given any loans. Accordingly provisions of paragraph 3 (iv) of the Order insofar related to loans securities and guarantees are not applicable to the Company. Further the Company has complied with the provisions of Section 186 of the Act in respect of investments made by the Company in securities of other body corporates.

v) In our opinion and according to the information and explanations given to us the Company has not accepted any deposits from the public within the provisions of Sections 73 to 76 of the Act and the rules framed there under. Accordingly the provisions of paragraph 3 (v) of the Order are not applicable to the Company.

vi) The Central Government has not prescribed the maintenance of cost records for any of the products of the Company under sub-section (1) of Section 148 of the Act and the rules framed there under. Accordingly the provisions of paragraph 3 (vi) of the Order are not applicable to the Company.

vii) (a) The Company is generally regular in depositing with appropriate authorities undisputed statutory dues including goods and services tax provident fund employees' state insurance income tax customs duty cess and any other material statutory dues as applicable to it though there were slight delays in few cases. However there were no undisputed statutory dues as at the year end outstanding for a period more than six months from the date they became payable.

(b) According to the information and explanation given to us there are no dues with respect to income tax customs duty and goods & service tax which have not been deposited on account of any dispute.

viii) In our opinion and according to the information and explanations given to us the Company has not borrowed any funds from financial institutions or raised any funds through issue of debentures. Accordingly provisions of paragraph 3(viii) of the Order are not applicable to the Company.

ix) The Company has neither raised money by way of public issue offer nor has obtained any term loans. Accordingly provisions of paragraph 3(ix) of the Order are not applicable to the Company.

x) During the course of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India and according to the information and explanations given to us we have neither come across any instance of fraud by the Company or any fraud on the Company byitsofficersor employees noticed or reported during the year nor have we been informed of any such instance by the management.

xi) According to the information and explanations given to us managerial remuneration has been paid in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.

xii) In our opinion and according to the information and explanations given to us the Company is not a Nidhi Company. Accordingly provisions of paragraph 3(xii) of the Order are not applicable to the Company.

xiii) According to the information and explanation given to us all transactions entered into by the Company with the related parties are in compliance with Sections 177 and 188 of Act where applicable and the details have been disclosed in the Financial Statements etc. as required by the applicable Indian Accounting Standards.

xiv) The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly provisions of paragraph 3(xiv) of the Order are not applicable to the Company.

 xv) According to the information and explanations given to us the Company has not entered into any non-cash transactions with directors or persons connected with him during the year.

xvi) According to the information and explanation given to us the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act 1934.

For SSRA & Co.

Chartered Accountants

Firm Registration No. 014266N

Suresh Goyal

Partner

Membership No. 093711

Place: New Delhi

Date: May 16 2019

ANNEXURE 2 TO THE INDEPENDENT AUDITOR'S REPORT

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

To the Members of Hindustan Everest Tools Limited

We have audited the internal financial controls over financial reporting of Hindustan Everest Tools Limited as of March 31 2019 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's Management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business including adherence to Company's policies the safeguarding of its assets the prevention and detection of frauds and errors the accuracy and completeness of the accounting records and the timely preparation of reliable financial information as required under theAct.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting standalone financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the Guidance Note) and the Standards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) of the Act to the extent applicableto financialcontrols both applicable to an audit auditofinternal of Internal Financial Controls and both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting with reference to these standalone financial statements and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting with reference to these standalone financial statements assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's judgement including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company's internal financial controls system over financial reporting with reference to these standalone financial

Meaning of Internal Financial Controls Over Financial Reporting

A Company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Company's internal financial control over financial reporting with reference to these standalone financial statements includes those policies and procedures that (1) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition use or disposition of the Company'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 financial reporting with reference to these standalone financial statements including the possibility of collusion or improper management override of controls material misstatements due to error or fraud may occur and not be detected. Also projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internal financial controls system over financial reporting with reference to these standalone financial statements and such internal financial controls over financial reporting with reference to these standalone financialstatements were operating effectively as at March 31 2019 based on the criteria for the internal control over financialreporting established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

Explanatory paragraph

We also have audited in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India as specified under section 143(10) of the Act the standalone financial statements of Hindustan Everest Tools Limited which comprise the Balance Sheet as at March 31 2019 the related Statement of Profit and Loss (including other comprehensive income) Statement of Changes in Equity and Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information and our report dated May 16 2019 expressed an unmodified opinion.

For SSRA & Co.

Chartered Accountants

Firm Registration Number: 014266N

Suresh Goyal

Partner

Membership Number: 093711

Place: New Delhi

Date: May 16 2019